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Entrepreneurship Development: Lecture Plan
Entrepreneurship Development: Lecture Plan
Entrepreneurship Development: Lecture Plan
LECTURE PLAN
BY KUMAR RATNESH
CHAPTER:-1
CONCEPT OF ENTREPRENEURSHIP
The word entrepreneur originates from the French word, entreprendre, which means "to undertake. In a business context, it means to start a business. The Merriam-Webster Dictionary presents the definition of an entrepreneur as one who organizes, manages, and assumes the risks of a business or enterprise. The concept of entrepreneurship has a wide range of meanings. On the one extreme an entrepreneur is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population. On the other extreme of definitions, anyone who wants to work for himself or herself is considered to be an entrepreneur.
Assemble Plan:Attract and retain the best talent Complimentary skill and personality Funding and support:Make sure that you have more than enough resource to pursue your vision
TEAM
RESOURCE
STRATEGY
Resource
Strategy
Fundamental issues to address Who is the market? What are their needs? How does this product/service meet these needs? What will they pay? How will they pay? What is the timeline for each stage of the business? What is the long term strategy? Who is your competition? How are you better?
ENTREPRENEURIAL MOTIVATION
It should be interesting for you to know that the word motivation has its origin in the Latin word movere, meaning "to move." Psychologically, it means an inner or environmental stimulus to action, forces or the factors that are responsible for initiation, sustaining (and restraining/abstaining from) behaviour.
ENTREPRENEURIAL BARRIERS
Lack of viable concept Lack of market knowledge Lack of technical skill Lack of capital Lack of business know-how Lack of motivation Legal constraints and regulation Monopoly
TYPES OF ENTREPRENEUR
ACCORDING TO BUSINESS:Business Entrepreneur Trading Entrepreneur Industrial Entrepreneur Corporate Entrepreneur Agriculture Entrepreneur Retail Entrepreneur Service Entrepreneur
ACCORDING TO THE USE OF TECHNOLOGY:Technical Entrepreneur Non-Technical Entrepreneur Professional Entrepreneur High-tech Entrepreneur Low-tech Entrepreneur
ACCORDING TO THE MOTIVATION:Pure Entrepreneur Induce Entrepreneur Motivated Entrepreneur Spontaneous Entrepreneur
THEORIES OF ENTREPRENEURSHIP
An Economic Theory Leibensteins X-efficiency Theory Dynamic Entrepreneurship Innovation Theory Harvard school Theory Theory o High Achievement Theory of Change Theory of Profit
Theory of Adjustment of Market Theory of market Theory of Social change Theory of Entrepreneurial Supply Theory of Cultural Value
CHAPTER:-2
Businesses, whether for-profit and nonprofit, are facing change like never before. Numerous driving forces to this change included a rapidly expanding marketplace (globalization), and increasing competition, diversity among consumers, and availability to new forms of technology.
Creativity and innovation are often key to the success of a business, particularly when strategizing during strategic planning, and when designing new products and services. Creative thinking and innovation are particularly useful during Strategic Planning (when strategizing) and in Product and Service Management (when designing new products and services.)
THE AREA IN WHICH PEOPLE ARE CREATIVE AT WORK People often do not recognize when they are being creative and they frequently overlook opportunities to be creative. The path to creativity begins by first recognize all of the ways in which we are or can be creative people in organization can channel their creativity into seven different area:-
Idea Creativity Material Creativity Organization Creativity Relationship Creativity Event Creativity Inner Creativity Spontaneous Creativity
Creative problem solving is the mental process of creating a solution to a problem. It is a special form of problem solving in which the solution is independently created rather than learned with assistance.
Creative problem solving always involves creativity. However, creativity often does not involve creative problem solving, especially in fields such as music, poetry, and art. Creativity requires newness or novelty as a characteristic of what is created, but creativity does not necessarily imply that what is created has value or is appreciated by other people.
The following formalized and well-known methods and processes combine various creativity and creative-problem-solving techniques: TRIZ, which is also known as Theory of Inventive Problem Solving (TIPS), was developed by Genrich Altshuller and his colleagues based on examining more than 200,000 patents. This method is designed to foster the creation and development of patentable inventions, but is also useful for creating non-product solutions. Mind mapping is a creativity technique that both reframes the situation and fosters creativity. Brainstorming is a group activity designed to increase the quantity of fresh ideas. Getting other people involved can help increase knowledge and understanding of the problem and help participants reframe the problem. However, brainstorming seldom yields major innovations. Edward de Bono has published numerous books that promote an approach to creative problem solving and creative thinking called lateral thinking.
LEARNING OBJECTIVES
Define creative problem solving. Be familiar with common mental blocks to creative thinking process. Explore ways to be more creative. Know the steps to the creative problem solving process. Be familiar with: Brainstorm Mind mapping and Multivoting Apply tools to solve a problem.
DEFINITION
Creative problem solving is - looking at the same thing as everyone else and thinking something different.
Lateral thinking
Lateral thinking is a term coined by Edward de Bono, a Maltese psychologist, physician and writer. It first appeared in the title of his book New Think: The Use of Lateral Thinking, published in 1967. De Bono defines lateral thinking as methods of thinking concerned with changing concepts and perception. Lateral thinking is about reasoning that is not immediately obvious and about ideas that may not be obtainable by using only traditional step-by-step logic.
There are a number of mental tools or methods that can be used to bring about lateral thinking. These include the following: Random Entry: Provocation: Challenge:
EDWARD DE BONO
I invented the term 'lateral thinking' in 1967. There are several ways of defining lateral thinking, ranging from the technical to the illustrative. "You cannot dig a hole in a different place by digging the same hole deeper" This means that trying harder in the same direction may not be as useful as changing direction. Effort in the same direction (approach) will not necessarily succeed.
"The brain as a self-organizing information system forms asymmetric patterns. In such systems there is a mathematical need for moving across patterns. The tools and processes of lateral thinking are designed to achieve such 'lateral' movement. The tools are based on an understanding of selforganising information systems."
"In any self-organizing system there is a need to escape from a local optimum in order to move towards a more global optimum. The techniques of lateral thinking, such as provocation, are designed to help that change."
IDEA GENERATION
Creative Organisation
Sharing a vision Interpersonal support Praising achievement Coaching Conflict resolution Accepting failure
Sources of Ideas.
Existing Businesses Franchises Product Licensing Patents Networking Support Agencies WWW..
PROJECT
CONCEPT
The dictionary meaning of project is speculative meaning . It deal with three dimensions :-innovation , risk , and vision. Gilliner:- defines it as the whole complex of activities involved in using recourses to gain benefits.
CHARACTERISTICS OF A PROJECT
Investment pattern Expected result Time limit Location
PROJECT MANAGEMENT
Project management is the modern context is a highly sophisticated and fast developing concept and practice. It has been defined as The process of planning directing a project from its inception to its completion in a given cost to generate a given results.
ROJECT CLASSIFICATION
Quantitative & non-quantitative project Sectoral project Techno- Economic project Financial institution classification
PROJECT IDENTIFICATION
It is concerned with the collection, completion and analysis of economic data for the eventual purpose of locating possible opportunity for investment and with the development of the characteristics of such opportunity.
PROJECT FEASIBILITY
The methods are as follows:Economic analysis Financial analysis Market analysis Technical assessment Managerial competence
CHAPTER:-3
SIDBI IS THE APEX INSTITUTION FOR PROMOTION, FINANCING AND DEVELOPMENT OF SMALL ENTERPRISES. RECENTLY GOVERNMENT OF INDIA HAS PERMITTED SIDBI TO FINANCE MEDIUM SCALE UNITS. CUMULATIVE ASSISTANCE DURING 1990-2004 Rs.93,000 CRORE. AMONGST TOP 50 DEVELOPMENT BANKS IN THE WORLD
Indirect Assistance
Direct Assistance
BEING REPLACED BY TEAMS WHO DISPLAY COMPLEMENTARY SKILLS AND SET HIGH STANDARDS OF MANAGEMENT AND VALUE DELIVERY
TO
GROWTH OF KNOWLEDGE BASED INDUSTRIES IN IT; BIOTECH; TELECOM; FOOD AND AGRO PROCESSING ETC.
SIDBI FACILITIES FOR SERVICE SECTORS Service sector projects covers a wide spectrum
SIDBI FACILITIES FOR SERVICE SECTORS 5. Organised retailing - departmental stores, food stores etc.
6. Logistics including supply chains, material handling, warehousing, storage and inventory Management. 7. Courier services
Introduction:
SIDBI is implementing a World Bank-led multi agency / multi activity Project on Financing and Development of SMEs. While SIDBI has been assigned with the responsibility of implementing the project, the Banking Division, Ministry of Finance, Government of India is the nodal agency for the same. The IBRD, Department for International development (DFID) UK, KfW Germany and GTZ Germany are the international partners in the Project. The Project is aimed at making SME lending an attractive and viable financing option as also facilitate increased turnover and employment in the sector. In order to achieve its aims, the Project, besides upgrading direct flow of credit to SMEs, addresses demand side issues of credit and streamlining access to qualitative financial and non-financial enterprise oriented services.
Components:
The Project has three major components: Credit facility from the IBRD and KfW Germany A Risk Sharing Facility Technical Assistance from DFID, UK and GTZ, Germany Financing Pattern
Implementation Status
Credit facility (CF) Risk Sharing Facility Technical Assistance (TA) Component
TYPES OF UNCERTAINTY
Uncertainty Principle
Uncertainty is a cognitive state which commonly causes affective symptoms of anxiety and lack of confidence. Uncertainty and anxiety can be expected in the early stages of the information search process.
Uncertainty Principle
The affective symptoms of uncertainty, confusion, and frustration are associated with vague, unclear thoughts about a topic or question. As knowledge states shift to more clearly focused thoughts, a parallel shift occurs in feelings of increased confidence. Uncertainty due to a lack of understanding, a gap in meaning, or a limited construction initiates the process of information seeking.
SUPPORTIVE ORGANISATION
The term institutional support system generally refers to the economic environment of industry and business comprising authority and institute whose decisions and operational framework affect the level of business. Basically, institutional support system is necessary at three stage of enterprise development .These are :a) Inception of the business b) day to day management c) Expansion and diversification
Incentives
The term incentive means encouraging productivity. It is the motivational force which makes an entrepreneur takes a right decision and act upon it. Incentive includes:Concessions Subsidies Bounties
Types of incentive
Financial incentive Fiscal incentive General incentive Special incentive in backward areas Reservation for items for exclusive manufacture in SSIs.
Financial institution
Industrial financial corporation of India(IFCI) ICICI IDBI IRBI LIC UTI Commercial bank
International Entrepreneurship
Nature of International Entrepreneurship Importance of International Entrepreneurship
International Entrepreneurship
Strategic Issues
Responsibility Centers
Stage 1 Stage 2 Stage 3
Nature of Planning
Environmental analysis Strategic planning Structure Operational planning Controlling
International Entrepreneurship
Market implications
Market characteristics Market institutions Industry conditions Legal environment Resources Political environment
Entrepreneurial Entry
Exporting
Indirect
Export management firms
Direct
Independent distributors
Entrepreneurial Entry
Non equity Arrangements
Licensing Turn-key projects Management contracts
Entrepreneurial Entry
Types of Mergers
Horizontal mergers Vertical mergers Product-extension mergers Market-extension mergers Diversified activity mergers
Synergy
Definition Causes
Entrepreneurial Partnering
What to look for in an international partner? How to find them
CHAPTER:-4
WOMEN ENTREPRENEUR
Overview
At the macro level as women constitute half of a countrys population, womens empowerment is closely linked with the development of that nation
At the micro level, the fastest means to a womans empowerment is through economic independence which can be achieved through business and entrepreneurship development
The Context
Population: 130 million Area: 147,570 square km Religion: 85 % Muslim and 15 % Hindus, Christians and Buddhists Literacy: 60 %
Pull Factors
Womens desire to evaluate their talent To utilize their free time or education Need and perception of Womens Liberation, Equity etc. To gain recognition, importance and social status. To get economic independence
Second Category
Third Category
Illiterate women Financially week Involved in family business such as Agriculture, Horticulture, Animal Husbandry, Dairy, Fisheries, Agro Forestry, Handloom, Powerloom etc.
Then came 3 Ps
Powder Pappad Pickles
Some examples
Mahila Grih Udyog
7 ladies started in 1959: Lizzat Pappad
Lakme
Simon Tata
Shipping coorporation
Mrs. Sumati Morarji
Exports
Ms. Nina Mehrotra
Herbal Heritage
Ms. Shahnaz Hussain
Balaji films
Ekta Kapoor
Naina Lal Kidwai, Investment Banker Fortune magazine listed her as one of the worlds most powerful businesswomen in 2003. India Inc recognises her as one of its most powerful investment bankers. But Naina Lal Kidwai, HSBCs deputy CEO, cant be reduced to simple woman-banker equations; her professional vision transcends gender Shahnaz Husain, Herbal Beauty Queen Shes the "Estee Lauder of India", with even famous department stores like Galleries Lafayette in Paris, Harrods and Selfridges in London and Bloomingdales in New York stocking her cosmetics, creams and lotions.
Vineeta Bali
Director, Academic Success Program
she practiced law as a business litigator for three years, and then as a transactional attorney for the Silicon Valley Law Group for several years. Her main responsibilities as a transactional attorney were in the following areas: mergers and acquisitions, investor financing and corporate funding, business formation and corporate governance, securities compliance for privately held and public companies. Lalita Gupte, Banker shes created a formidable global presence of what was once a native development finance institution. Accountholders can now bank at ICICI branches in UK, the Far East, West Asia and Canada. With ICICI since 1971, Gupte was the first woman to be inducted on the board in 1984.
Problems
Dual role to play at workplace & at home place Subordinate to men Just that her being women Non-awareness of facilities provided by government Competition with large scale units Problems related to marketing
Challenges
Pre-start up experience of the labour market. Traditional views on womens roles. The financing of female owned firms. The use of networks and role models Lack of knowledge and training in business and IT skills. Low self-esteem & confidence High level of businesses + innovation
SICK INDUSTRIES
CONCEPT
Sickness is easy to understand but difficult to define. It is a relative term. In common parlance , a sick industry is one which is not healthy . A healthy unit is one which earns a reasonable return on capital employee and which builds up reserve after providing reasonable depreciation.
CLASSIFICATION OF SICKNESS
Genuine Sickness Incipient Sickness Induced Sickness
CAUSE OF SICKNESS
External Cause:Power cuts Competition Non availability of inputs Government policy Lack of infrastructure Problem with financial institution Labor problem
INTERNAL CAUSE
Law quality Poor marketing effort Faulty capital structure Managerial incompetence Excessive growth of inventory Long credit period Wrong location
CONSEQUENCES
Huge financial loss to the bank Loss to employment opportunity Emergence of industrial unrest Wastage of scarce resource Loss of revenue
SUGGESTIVE MEASURES
Identification in incipient stage Integrated approach Change in management Setting up screening committee Audit RBI guidelines
REMEDIAL MEASURES
Sick industries policy,1978 Sick industries policy,1981 Sick industrial companies 1985 RBI Assistance by SFCs Services by Technical consultancy organization
BANK SYNDIATIONS
The steps involved in a loan syndication arrangement can be put as follows:Preparation of the project report Preparation of loan application Selection of financial institution for loan syndication Receipt of sanction letter or letter of intent from the financial institute
PROFESSIONALISM
Professionalism is actually the process by which given occupation becomes professions in the sense of attaining professional status.
VENTURE CAPITAL
What Is Capital ?
Most important factor of production. No economic entity can function without capital. Requires at every step for set up, expansion, growth, modernization, diversification.
Why venture capital??? It is required for.. For start up For devlopment \ expansion.. For modernization And fast growth of company
CLEAR OBJECTIVE
PATIENCE
NETWORK
SUCCESS FACTOR
EXPERIENCE
Guidanc e
MGMT. SKILLS
VC PLAYERS IN INDIA:
1. Govt. player
APIDC VC ltd. APFC Assum financial corporation DFC. Industrial state fc. Rajasthan vc Ltd. 2. PRIVATE Player Avishkar india micro Ltd. BOA consultancy service Chrys capital fund Tata investment Ltd. Indian direct equity advisers Ltd.
THANK YOU