ASSIGNMENT

-Form a group of 3 or 4
- Date of Submission 28th June
- Select an entrepreneur of your choice
a. Someone whom you know (You can Interview)
b. Someone whom you admire (Whose data is available on
internet
- Gather information to describe his/her entrepreneurial Journey
(An indicative List)
a. His/ her Family background , Educational background
b. Important personality traits
c. Origin of the idea (what triggered the idea)/ Gap
identification
d. What is the unique that they offer (Innovation/ creativity)
e. Important problems that came in their way and how they
overcome the problems
f. Any important story describing their journey
Types of Entrepreneurs
•Classification of Entrepreneurs
•Functional Characteristics

•Developmental Angle
•Type of Business

•Personality Type
•Schools of Thought

•Entrepreneurial Process
•Functional Characteristics
•Innovative Entrepreneur
•Imitative Entrepreneur

•Fabian Entrepreneur
•Drone Entrepreneur
 Functional Characteristics –
Innovative Entrepreneur
• Take interest in innovative activities.
– Propounds or uses any new commodity, a new method of production, a
new organizational system, and new market, etc.
• Steeve Jobs, Otto (Self driving trucks), Phanindra Sama (RedBus),
Refinery 29(67% project)

• According to Schumpeter, “If the entrepreneur performs any of the

following functions, he is regarded as innovating entrepreneur:
– To produce any new commodity.
– To use the new method of production.
– To develop new markets.
– To identify new resources of raw materials, semi-finished
products, and energy.
– To direct the new organisation in any industry.
– To do any other likewise activities of innovation.
 Functional Characteristics –
Imitative Entrepreneur
• Who run their Enterprises by imitating the successful
innovations applied by the innovative entrepreneurs.
– i.e. they copy the successful innovations of innovative entrepreneurs,
like products, raw material, and technique etc.
• Following are the characteristic or imitative entrepreneurs :
– They have no major orientation towards unsuccessful innovations.
– They imitate the successful works of the innovative entrepreneur in
their activities.
– Due to limited resources, they themselves do not carry or spend
money on research, inventions, and experiments. They make efforts
to gain profit by imitating successes of others.
– These entrepreneurs take relatively lower risks.
• Schumpeter - “not only the innovators but also the
imitative entrepreneur plays an important role.”
• Example - Flipkart
 Functional Characteristics –
Fabian Entrepreneur
• Fabian Entrepreneur- would not change
• Has the tendency to avoid the experiment of imitations
• Thus, the following characteristics may be observed in Fabian
entrepreneurs:
– As far as possible search entrepreneurs like to work with old methods
only.
– He does not want to take any type of risk by adopting new things.
– Such an entrepreneur takes the advantages of imitating successful
investors when he is assured that use of innovations and new
techniques will be really profitable.
– Such an entrepreneur is always in the position of skepticism.
– He remains in the position of skepticism regarding his activities,
schemes, and programmes till last moment and normally takes
decisions in the last moments.
• EXAMPLE – Kodak, Nokia
 Functional Characteristics –
Drone Entrepreneur
• Drone entrepreneur is who does not want to accept any type of innovation or
change.
• Indifferent towards innovations and wants to lead a comfortable living alone
• Following characteristics maybe visualized in Drone entrepreneurs:
– He remains indifferent to bring down the costs of production through
innovations and adopting new methods of production.
– He operates his industry or business only with traditional and routine way.
– In course of time, he starts feeling tired in entrepreneurial activities.
– Such entrepreneurs are interested only to continue their business anyway.
– He remains away from innovations, although it may be much
advantageous to him.
– In the long run, such entrepreneurs face business failure He does not like
to take any risks and to take any challenging work in the operation of his
business.
EXAMPLE - BSNL
 Rahul Bajaj differs with son on exit
from ‘Hamara Bajaj’
Hamara Bajaj' to go down memory lane as the co
decides to exit scooter segment and focus on
motorcycles. - Economic Times , December 2009

• Rahul Bajaj said

– "I feel bad, I feel hurt,"
– "I think logic and emotion should go together
otherwise you're in trouble in life whether in
business or otherwise”

• MD Rajiv Bajaj
– "I care less for the solution from emotions, I believe
more in the magic of logic”
•Classification based on Development Angle
•Prime mover-

•Manager
•Minor Innovator-

•Satellite
•Local trading-
 Based on the Developmental Angle
• Prime mover- Development, expansion and
diversification
• E.g. Google, Apple , Amazon
• Manager- not in expansion mode
• Minor Innovator- Economic progress by better
usage of existing resources
• Satellite- Supplier’s role slowly moves into
productive enterprise
• Local trading- remains in local market
 Based on Types of Business
• Manufacturing

• Wholesaling

• Retailing

• Service
Based on the Nine Personality Types of
Entrepreneurs
1. The Improver:
– Focused on using company to improve the world
– Over reaching motto is morally correct company will be
rewarded working on noble causes
• Trustbin, BIO-SOLUTIONS India, The Body Shop
2. The Advisor:
– Who provides an extremely high level of assistance and advice
to customers.
• S P Tulisian
3. The Superstar:
– The business is centered on the charisma and high energy of
the superstar CEO
– who built their businesses on their success and reputation in
other walks of life.
• Being Human,
 Based on the Nine Personality Types of
Entrepreneurs
4. The Artist:
– Creative business personality required in Web design,
Creativity, Designer clothes
• Ritu Kumar Designer Clothes
5. The Visionary:
– Business built by a visionary based on the future vision
and thoughts of the founder. They can accurately gauge
the future.
• Tata, Birla, Reliance
6. The Analyst:
– Focus is on Fixing problems. Critical Thinker and logical
people by nature
– Often the basis for science, engineering or computer firm
• Blue Ocean Market Intelligence , Software testing firms
 Based on the Nine Personality Types of
Entrepreneurs
7. The fireball
– full of life, energy and optimism
– runs a business for the sheer fun of it. To them, their business offers
something new and exciting every day. They never stop innovating .
• Forbes , Richard Branson (Virgin Empire), Elon Musk
8. The Hero
– The Hero is an archetypical entrepreneur: strong, supremely
confident, and dominant.
– Heroes are driven by the power of their wills and believe they can
overcome any challenge
• Mukesh Ambani
9. The Healer
– Healers are the antithesis of the traditional entrepreneur. They don't
go into business to beat the competition, or make the world a better
place, or make more money.
– They provide nurturing and harmony to the business.
 Based on Entrepreneurial Process
• Nascent: A nascent entrepreneur is an individual who is involved in the
process of starting up right from the conceptualizing part. Since they
have the desirability of starting a business, they want to achieve goals
and persevering.
• Novice: Entrepreneur who does not have any prior business ownership
experience, but wishes to start a business for the first time.
• Habitual: The one who has prior business ownership experience.
• Serial: The one who has experience in multiple types of business
ownership. Who routinely starts up, runs successfully or sells/
closedown business
• Portfolio: He is the one who retains the original business and builds a
portfolio of additional business around it – either through purchasing or
starting up related or new businesses. He is more like an investor driven
by investment rather than just a passionate endeavor. For him his
portfolio companies are very similar to investment.
•Schools of Thought
•Great Person School

•Psychological Characteristics

•Classical School

•Management School

•Leadership School

•Intrapreneurship School
 Based on Schools of Thought on
Entrepreneurship (Skill Set)
• “Great person” School-
– Believe that entrepreneurs have inborn natural
capacity to perform these activities.
– Have high levels of vigor, energy, persistence, vision
and single mindedness
– Intuition , self esteem, exceptional belief in himself
– Other traits frequently mentioned include physical
attractiveness (including height, weight, and
physique), popularity and sociability, intelligence,
knowledge, judgment and fluency of speech; also tact,
diplomacy, and decisiveness
 Cont.
• Psychological Characteristics School-
Entrepreneurs can be differentiated from
non-entrepreneurs by personality characteristics.
1. Personal value- Honesty, duty,-ethical behavior,
2. High risk taking propensity and
3. Need for Achievement
• The belief that entrepreneurs might have a distinctly
higher need for achievement is widely held
• certain individual values and needs are the necessary
preconditions for entrepreneurship. Since these values
are learned early in life and are well-established prior to
adulthood
• Can not be learned in Classroom (You learn over the
period of time)
 Cont.
• Classical School- Innovation and Creativity
– Innovation, creativity or discovery are the key
factors
– Entrepreneurship refers to the process of creating
an opportunity or the opportunity seeking style of
management that sparks innovation
– Critical element is process of ‘doing’ rather than
‘Owning’
 Cont.
• Management School- Draws from management
theories
– Who organizes or manages a business undertaking
– Assumes risk for profit
– Entrepreneurs can be developed or trained in the
classroom
– Management Skills can be taught and practiced, lack of the
same leads to poor decision making.

• Leadership School- Non Technical side of

Management, “People Manager” is the most
important trait.
 Cont.
• Intrapreneurship School-
– Evolved in response to the lack of innovativeness within
organizations.
– Definition: “A person within a large corporation who takes
direct responsibility for turning an idea into a profitable
finished product through assertive risk taking and
innovation” (American Heritage Dictionary 1992)
– Alertness to opportunities
– Allows existing organization to develop and diversify their
activities in other areas
– Involves the development of independent units designed
to create a market, and expand innovative services,
technologies or methods within the organization
CORPORATE CULTURE
• Hierarchical organization
structure
• Reward system that encourage
conservative decision making
• Employees are not encouraged
to take risk
• Mistakes and failures are not
tolerated
• Employees are not encouraged
to take new initiative
• • Genuine mistakes and failures
INTRAPRENEURIAL
CULTURE
• Flat organizatonal structure
with networking
• Work and tasks are viewed as
fun
• Employees work beyond office
hours to complete tasks
• Employees are encouraged to
experiment and take risks
• Employees are given freedom in
their work
are tolerated
• Employees are encouraged to
take initiatives
 Fostering entrepreneurship within firms can
create an environment focused on innovation
https://www.thehindubusinessline.com/ May 2014

• How can businesses encourage intrapreneurs to

flourish?
– flexibility over working time and location - 48 %
– updating skills - 42 %
– mixing staff from different functions - 36%

key measures to help foster innovation within a business.

– Research report from Regus
 IT company Mindtree is well known for promoting
intrapreneurship.
"We see innovation as a strategic initiative and believe that it should be
comprehensive, inclusive and purposefully aligned to the business,"
Krishnakumar Natarajan, CEO and MD, Mindtree, said.

"Thus at Mindtree, inclusiveness in innovation means not only receiving

contribution from idea generators across the company but also giving
them an opportunity to be a part of the execution process."

Hence there is the'5/50 programmes wherein companies identify five

business ideas that can be scaled to generate about $50 million in five
years.

Incubation, mentorship, funds and infrastructure are provided and those

who initiate the idea are identified and expected to deliver their vision.

https://economictimes.indiatimes.com
Sivakumar is well known as the architect of
the farmer empowerment initiative ITC
e-Choupal on his 30 years career with ITC

• I have stayed with ITC all these years because it is as

entrepreneurial a firm in its DNA as any start-up.
• The Corporate Management Committee of ITC is like a venture
capital body.
• It believes firmly in the “enduring value” vision, with each
business focusing in their area and ideating every year using a
rolling five-year planning process. You bring an idea, you own it
and you execute it.
• The ITC support system means higher chances of success.
Consider that e-Choupal was a start-up 20 years ago and still is
one.