ENTREPRENEURSHIP

PROCESS
AND BEHAVIOUR
1
WHAT /WHO IS AN
ENTREPRENEUR

2
MEANING OF ENTREPRENEUR
• The word entrepreneur originates from the French word, entreprendre,
which means "to undertake”. means to start a business.

• An entrepreneur is an individual who creates a new business, bearing most

of the risks and enjoying most of the rewards. The entrepreneur is
commonly seen as an innovator, a source of new ideas, goods, services, and
business/or procedures.
DEFINITION
1. According to the Peter .F. Drucker,
“An entrepreneur is one who always searches for change, responds to it and
exploits it as an opportunity. Innovation is the specific tool of entrepreneurs,
the means by which they exploit change as an opportunity for a different
business or service”.
2. Richard Cantillon,
“An entrepreneur is an agent who buys factors of production at certain
prices in order to combine them into a product with a view to selling it at
uncertain prices in future.”
According to George Bernard Shaw, people fall into three categories

1. Those who watch things happen.

2. Those who ask what did happen.
3. Those who make things happen.
ENTREPRENEURSHIP
• Entrepreneurship is the propensity of mind to take calculated risks
with confidence to achieve a pre-determined business or industrial
objective. In substance it is the risk taking ability of the
individual, broadly coupled with correct decision-making.

• The term ‘entrepreneur’ and ‘entrepreneurship’ are different.

Entrepreneur is a person and entrepreneurship is a tendency and
process
According to A. H. Cole “Entrepreneurship is a purposeful activity
of an individuals or group of individuals undertaken to initiate,
maintain and aggrandize profits by production and distribution of
associated goods and services.”
ELEMENTS OF ENTREPRENEURSHIP
1. Creativity and Courage : creativity is ability to create something new
which others cant. It requires a lot of courage to come up with an creative
idea and execute it.
2. Business Idea: Everything in business starts with a business idea. It is
the first potential energy of your new business.
3. Business plan: A plan is necessary to provide shape to the idea. A
business plan is a plan for how a business is going to work, and how an
entrepreneur is going to make it succeed.
4. Products and services: Every business sells some types of products or
services. If you sell something that can satisfy your customer’s needs,
then your products and services will have larger business potential
energy.
5. Vision and Farsightedness: The successful entrepreneurs have a
good foresight. They forecast the future business environment i.e.
how will be the likes and dislikes of customers, what will be the
state of technology and prepare a plan of action accordingly.
6. Motivation and Leadership: entrepreneurship activities cannot
be undertaken if a person is not motivated about what he is doing
and without leading his team for what needs to be done.
7. Innovation: a person should be highly innovative to generate
new ideas, start a company and earn profits out of it. Change can
be the launching of a new product that is new to the market or a
process that does the same thing but in a more efficient and
economical way.
8. Ambition: Successful entrepreneurs have high ambitions about
their venture. Due to this high ambition or high achievement
motive, they are able to overcome the obstacles in their business,
turn misfortunes into fortunes, suppress anxieties and find out
new ways and means.
9. Self-confidence: Successful entrepreneurs have confidence in
their skills and abilities. They are sure about success in their
business. They do not hesitate to launch new products, expand
and diversify their business. They are confident of overcoming
any unanticipated problem and survive in the adverse conditions.
10.Risk taking abilities: Entrepreneurship activities are full of risks.
Those who dare to take risks are also rewarded with huge
rewards. A man who is afraid to take risk can never become a
successful entrepreneur.
11.Entrepreneurial knowledge: this helps an entrepreneur to
analyse the economic situation and forming strategies for good
conduct of business.
Weblinks
• https://www.slideshare.net/RameshLakshmanan7/b-com-part-ii-fundamentals-of-entrepreneurship-english-version
• https://www.entrepreneurshipinabox.com/371/10-elements-with-business-potential-energy/
• https://www.economicsdiscussion.net/entrepreneurs/role-of-entrepreneurs-in-economic-development/31496
• http://www.gips-collaborations.com/wp-content/uploads/2020/04/ECOPR3625-Notes.pdf
• https://www.economicsdiscussion.net/entrepreneurship/types-of-entrepreneurship/31780#:~:text=Netrpreneurship%20is%20
the%20process%20of,works%20through%20online%20domain%20only
.
• https://shodhganga.inflibnet.ac.in/jspui/bitstream/10603/244573/6/06_chapter1.pdf
• http://netpreneur.co.in/
 WHY
ENTREPRENEURSHIP IS
ESSENTIAL 13
14
An entrepreneur is an innovator of new ideas exploits an opportunity commercializes his
innovation
to creates new products or services
or improve the existing products or
services

15
Developing New Solutions To Problems
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Creating Technology That Improves
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Exchanging Ideas Globally
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CAPITAL FORMATION

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Entrepreneurs improve economies and people’s lives by
creating jobs,
developing new solutions to problems,
creating technology that improves efficiency, and
exchanging ideas globally.

https://www.youtube.com/watch?v=VLYDK_X15Kk
https://www.youtube.com/watch?v=KEuTpRkZqiY
24
 They are the major source of new jobs
 they provide a harmonious environment where the
owner in the workers strike together shoulder to
shoulder for mutual benefit
 they can elevate some of the core city social problems
 they are creators of innovation where innovation is
essential for survival
 they could be the birthing space for larger corporations

it is a mechanism that permits low status groups to

overcome their social position and to advance as work in
society

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Economic Importance
Creativity and innovation
Employment
Self Employment
Standard of Living
Competition
Psychological factors

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 DIFFERENCE
ENTREPRENEURSHIP &
SMALL BUSINESS 27
 New
New Concept
Venture

Break
Even

Growth Status Quo Harvest

Strategy ( Small strategy
28
Business)
It was simply considered that one could ‘ practice’ the concept of new business start
up
Yet when ever the economy has seen a downturn, it was always the entrepreneurial
drive and persistence that brought it back to life

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THE STORY OF ISREAL
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16 lakh students pass out every year from
BTech, MTech, MBA, polytechnics
and out of that only a mere

5%
become entrepreneurs.

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Out of a population of eight million, 40,000 people work in the high-tech industry and
contribute to 15 percent of the total export GDP of the country.
In 2015, Israeli startups made $9.5 billion in exits, and 150 Israeli companies are listed
in NASDAQ (third largest next to China and the US).
The country has been focusing on creating a culture of innovation for a long time now,
and has been successful in establishing a vibrant ecosystem for startups to thrive.
And because the domestic market is very small for these startups, they think global from
the word go. Thus, it is no surprise that Israel is third in the world for US-registered
patents. There are 300 R&D centers of innovative tech companies like HP, Microsoft,
Google and Facebook present in Israel.

Read more at: https://yourstory.com/2016/07/israel-startup-ecosystem

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36
https://www.techinasia.com/israel-startup-nation

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So why do Israeli startups succeed? All of the above.
But above all,
it’s their courage to try,
and fail, and
try again and again until they finally make it.

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ENTREPRENEURSHIP
IN INDIA
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 FIRST WAVE OF POST LICENSING PROBLEM IS WITH
ENTREPRENEURSHIP FINANCING
1991 – 2001

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Acceleration of GDP post reform
Not accompanied by a commensurate expansion in employment

41
57th round of the National
Sample Survey
Organization (NSSO) show
that unemployment figures
in 2003-04 were as high as
8.9 million.

2005

2003

Incidentally, one million

more Indian joined the rank
of the unemployed between
2005-06 and 2007-08.

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https://www.youtube.com/watch
?v=cMBFq1ZUv6A

https://www.youtube.com/watch
?v=j-4zZ-MD7AU

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INTRODUCTION

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Information technology
Cellular network
Smart Phones
Growth of ecommerce( broken the barriers of entering the market)
Use of Data Analytics

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 HISTORY AND
EVOLUTION OF
ENTREPRENEURSHIP 50
INTRODUCTION
The word "entrepreneur" is derived from a French root ‘entreprendre’,
meaning, "to undertake".
i.e the person who undertakes the risk of a new enterprise

The word entrepreneur first appeared in the French language and was initially
applied to leaders of military expedition
Later it was used for economic activity

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MEANING OF ENTREPRENEUR
Oxford dictionary :
 Person who undertakes an enterprise with chances of profit or loss

New encyclopedia Britannica

 An Individual who bears the risk of operating business in the face of uncertainity about the future
condition

MEANING OF ENTERPRISE : Bold Undertaking

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1700)BCE: New guinea exchange of OBSIDIAN for tools, skin and food.
Entrepreneurship is an instrumental force triggering transformations various realms
of society

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CANTILLON Richard Cantillon (1730) uded the term
entrepreneur for the first time in
Economics and associated it with risk
taking ) He balances between supplies and
demand of the econmy
SAY Jean Baptise (1827) Say associated
entrepreneurship with the function of
coordination ( an entrepreneur shifts
economic resources out of an area of lower
yield to an area of higher yield
MENGER Carl Menger (1871) Entrepreneurs bear
uncertainities and take purposeful decisions
by the knowledge they possess ( a
coordinating agent )
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It is a philosophy or process through which an entrepreneur
seeks
innovation and employment

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E’SHIP THEORIES
1600: French Verb : Entrprendre: To undertake
1700: person bearing risk of profit in a fixed price contract( Risk)
1725: Richard Cantillon : Person bearing risk is different from the capital supplier
( Risk)
1803: J.B.Say : shifts economic resources out of an area of low returns to an area of
higher productivity and greater yield ( value addition)

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1934: JOSEPH SCHUMPETER : INNOVATOR
AND DEVELOPS UNTRIED TECHNOLOGY (
PRODUCTIVITY & INNOVATION )

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As per Schumpeter entrepreneurs are not necessarily motivated by profits and do not
necessarily regard it as a standard for measuring achievement or success.
For entrepreneurs it is a creative activity or an innovation function
In the form of
 New Products
 New Production methods
 New Markets
 New Resources

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1961: David Mc Clelland: highly motivated, energetic , moderate risk taker (need for
achievement)
1964: Peter Drucker : Searches for change , responds to it & exploits as opportunity
(opportunity focused )

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1983: Gifford Pinchot : Intrapreneur
1985: Robert Hisrich : Creating Something different with value, devoting time and
efforts, assuming risks, results rewards and satisfaction (Leadership and vision)

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 ELEMENTS OF
ENTREPRENEURSHIP
OPPORTUNITY Identification of oppurtunites to earn profits or value
creation : SWOT ANALYSIS
IDEA A thought leading to a possible course of action
INNOVATION It is a process of implementation of new ideas
RISK & UNCERTAINTIY Ability to take calculated risks with confidence
ECONOMIC ACTIVITY Utilization of scarce resouces in an uncertain environment
continuously generating wealth
DYNAMIC ACTIVTY Not only generation but also exploitation of new ideas
PROFIT POTENTIAL Expecting a lvel of return for undertaking risk
VALUE MAXIMASATION It has a dimension aim to maximize the purpose of its
formation
TIME Have Patience
STRATEGY FORMULATION Developing Strategeis to face challenges

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OLDER DEFINITION
An entrepreneur is an economic agent who unites all means of production-
land of one,
the labour of another
and the capital of yet another
and thus produces a product.
By selling the product in the market he pays rent of land, wages to labour, interest on
capital and what remains is his profit.

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E’SHIP
Is the process of creating something different with value by devoting the necessary
time and effort,
assuming the accompanying financial,
psychic, social risks
and
receiving the resulting rewards of monetary and personal satisfaction and
independence

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 “Anyone can be an entrepreneur,
who wants to experience the deep, dark canyons of uncertainity and ambiquity,
and
who wants to walk the breathtaking highlands of success.
But I caution ,
do not plan to walk the latter, until you have experienced the former”
Anonymous

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CHARACTERISTICS OF
ENTREPRENEUR
65
1. Passion and Motivation
2. Not Afraid to Take Risks
3. Self-belief, Hard Work and Disciplined Dedication
4. Adaptable and Flexible
5. Product and Market Knowledge
6. Strong Money Management
7. Effective Planning (Not Over-Planning) Skills
8. The Right Connections
9. Exit Preparedness
10. Ability to Question Themselves – But Not Too Much
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1. PASSION AND MOTIVATION

Although there are many traits that make an entrepreneur successful, perhaps the most important are
passion and motivation.
Is there something you can work on over and over again without getting bored?
Is there something that keeps you awake at night because you haven't finished it yet?
Is there something you have built and want to continue to improve upon?
Is there something you enjoy so much you want to continue doing it for the rest of your life?
From building and implementing a prototype to pitching your idea to venture capitalists, success is a
function of passion and determination.

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2. NOT AFRAID TO TAKE RISKS

Entrepreneurs are risk takers, ready to dive deep into a future of uncertainty. But not
all risk takers are successful entrepreneurs. What differentiates a successful
entrepreneur from the rest in terms of risk? Successful entrepreneurs are willing to
risk their time and money on unknowns, but they also keep resources, plans and
bandwidth for dealing with "unknown unknowns" in reserve. When evaluating risk,
a successful entrepreneur will ask herself, "Is this risk worth the cost of my career,
time and money?" And, "What will I do if this venture doesn't pay off?"

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3. SELF-BELIEF, HARD WORK
AND DISCIPLINED
DEDICATION
Entrepreneurs believe in themselves and are confident and dedicated to their project.
Their intense focus on and faith in their idea may be misconstrued as stubbornness,
but it is this willingness to work hard and defy the odds that make them successful.

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4. ADAPTABLE AND FLEXIBLE
Being passionate and dedicated is important, but being inflexible about client or
market needs will lead to failure. Remember, an entrepreneurial venture is not
simply about doing what you believe is good, but also making a successful business
out of it. Successful entrepreneurs welcome all suggestions for optimization or
customization that may enhance their offering and satisfy client and market needs.

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5. PRODUCT AND MARKET
KNOWLEDGE
Entrepreneurs know their product inside and out. They also know the market. Most
become successful because they create something that didn't already exist or they
significantly improve an existing product after experiencing frustration with the way
it worked. Remaining unaware of changing market needs, competitor moves and
other external factors can cause even great products to fail.

https://buffer.com/resources/failure-entrepreneur-12-successful-entrepreneurs-tell-us-
the-biggest-lessons-theyve-learned/

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6. STRONG MONEY
MANAGEMENT
It takes time for any entrepreneurial venture to become profitable.
Until then, capital is limited and needs to be utilized wisely. Successful
entrepreneurs plan for present and future financial obligations and set aside an
emergency fund. Even after securing funding or going fully operational, a successful
businessperson keeps a complete handle on cashflow, as it is the most important
aspect of any business.

https://www.inc.com/marla-tabaka/research-says-65-of-entrepreneurs-who-fail-admit
-to-making-this-avoidable-mistake.html

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7. EFFECTIVE PLANNING (NOT
OVER-PLANNING) SKILLS
Entrepreneurship is about building a business from scratch while managing limited
resources (including time, money and personal relationships), which requires
planning. However, trying to plan for everything and having a ready solution in
place for all possible issues may prevent you from ever taking the first
step. Successful entrepreneurs have a business plan in place, but remain capable of
dealing with unforeseen possibilities.

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8. THE RIGHT CONNECTIONS

Many people seek comfort in commiseration—friends, colleagues and neighbors are

happy to complain about "the global slowdown,” poor demand, or unfair competition
—but that won't improve the bottom line. Successful entrepreneurs reach out to
mentors with more experience and extensive networks to seek valuable advice. If
they don't have the necessary technical or marketing skills, they find someone who
does and delegate these tasks so they can focus on growing the business.
https://www.youtube.com/watch?v=3FFztNgc7WE

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9. EXIT PREPAREDNESS

Not every attempt will result in success. The failure rate of entrepreneurial ventures
is very high. Sometimes, the best solution is to call it quits and try something
new instead of continuing to dump money into a failing business. Many famous
entrepreneurs weren't successful the first time around, but they knew when to cut
their losses.

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You may ask yourself, am I an entrepreneur? The very question may make you doubt
the answer. Even if you don't have the flair of Steve Jobs or the hair of Elon Musk, if
you have the courage to ask yourself intimidating questions—"Can I do this? Do
I want to do this?"—you have the stuff to be an entrepreneur.
Do you have what it takes to be an entrepreneur? Instead of worrying about fitting
the image, check in with your gut. Is it on board?

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ENTREPRENEURSHIP
CHALLENGES
77
1. FINANCING
YOUR BUSINESS
Experienced entrepreneurs don’t have it easy when
it comes to funding a new business, but they do
have a few advantages over newcomers. They might
have a pool of capital from a business they
previously sold or a steady stream of revenue they
can use to fund a new business’s cash flow.

78
2. FINDING
CUSTOMERS
Finding customers is only a challenge if you don’t
have a good product or service. If you have a good
product or service then people will come to you, no
need to spend hundreds or thousands on advertising.
At least not right away.
There is a certain type of person who will be your
customer. Not everybody in the world is buying
what you’re selling, so your job is to simply find the
people who are in need of your service.

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3. HIRING
EMPLOYEES
The hiring process can take several days of your
time: reviewing resumes, sitting through
interviews, sifting through so many unqualified
candidates to find the diamonds in the rough. Then,
you only hope you can offer an attractive package
to get the best people on board and retain them
long-term.

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4. TIME
MANAGEMENT
Time management might be the biggest problem
faced by entrepreneurs, who wear many (and all)
hats. If you only had more time, you could
accomplish so much more

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5. MARKETING
STRATEGY
You don’t know the best way to market your
products and services: print, online, mobile,
advertising, etc. You want to maximize your return
on investment with efficient, targeted marketing that
gets results.

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6.
TEAMBUILDING
This is especially hard if you’ve never run or
managed a team before, but even if you have
management experience, picking the right team for
a startup is stressful and difficult. It’s not enough to
find candidates who fill certain roles — you also
need to consider their cost to the business, their
culture fit and how they’ll work as part of your
overall team. Such considerations are exceptionally
hard when you’re under the pressure of filling those
positions as soon as possible.

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7.STRESS
There is no other way to put it, it’s extremely
stressful when you don’t know when or if you’ll be
paid again.Not many people in the general
population understand the demands and stress
associated with being an entrepreneur because they
assume that we all have an enviable lifestyle of
relaxing on the beach while making the occasional
conference call.

84
ENTREPRENEURSHIP
AND START UP – ARE
THEY DIFFERENT 85
Entrepreneurship Startup

Entrepreneurship is a broader concept that encompasses A startup specifically refers to a new company that is
the process of creating and running a business. working on developing a new product or service.

Entrepreneurs may start businesses that aren’t Startups are typically founded with the goal of
necessarily innovative or disruptive. disrupting existing markets.

Entrepreneurship can involve creating a business from

Startups are always newly founded.
scratch or buying an existing business.

Entrepreneurship can involve creating a business with Startups often rely heavily on external funding and
one’s own resources or with the help of investors. may seek venture capital investment.

Entrepreneurship can involve creating a business with

Startups are often focused on rapid growth and
the goal of achieving long-term stability and
scaling.
profitability.

86
 An entrepreneur is an individual that looks for business
opportunities and creates ways to make those
businesses become profitable. Entrepreneurs often
WHO IS AN invest without the major responsibilities of running the
companies as they focus more on earning money from
ENTREPREN them. Entrepreneurs try hard to create a viable
EUR? business, not one that has a vague hope of succeeding.
There are entrepreneurs all over the world. Even in
poor areas of the world, people are entrepreneurs as
they sell or trade goods to survive.
 A startup founder is different from entrepreneurs as
they found a startup company. They create a business
WHO IS A that will someday become successful. While they
sound similar to the entrepreneur, their goal is
STARTUP different. Unlike an entrepreneur, a start up founder
doesn’t have a major financial motive. They create a
FOUNDE product or a service to change the world. They want to
become famous or show others that anything is
R? possible. While there can be a major payday in the
future, they do not start off with the goal to make
millions.
 Both individuals need to have a strong personal drive
to become successful. If you lack discipline and the
ability to work hard, you can find yourself struggling
to succeed. With an entrepreneurship, it is vital to
create a product and be paid for it. Startup founders
DIFFERE often do not worry about the selling process at first as
they want to generate larger profits in the future. They
NCES IN go out and approach larger investors and focus on
getting their business known. Depending upon the
GOALS nature of your business, you can become successful
online without every making a sale. Utilizing social
media and other sites to become popular can help your
business to become valuable to a major company or
investor, and they will approach you about purchasing
the business.
 There are pros and cons for both areas.
An entrepreneur may find himself out of money quickly if the
sales are not coming in. They need to have financial backing
WHICH for the first year or longer as they need to invest money into
equipment, employees, and others to start generating products
ONE IS to sell. Some entrepreneurs will work upwards of 80 hours a
week just to keep their company afloat.

THE A startup founder usually doesn’t need to deal with all the
financial day-to-day ongoing of the business. However, a
BEST? startup founder takes a major risk by tying themselves to the
company. Their reputation is at stake as they approach others
and start marketing the business. If the business fails, the
startup founder can lose everything. Their reputation can be
destroyed, and it can take years to repair. Some startups will
run for several years before they start to create an identity and
make money.
 SOCIAL
ENTREPRENEURSHIP
91
Social entrepreneurship is the activity of establishing new business ventures to
achieve social change. The business utilises creativity and innovation to bring social,
financial, service, educational or other community benefits
Social enterprise are not charities or welfare agencies.
They are private businesses established by entrepreneurs with an emphasis on human
values rather than just profit
These businesses focus on working with and enhancing the social capital within the
community by encouraging participation, inclusion and utilising a bottom up
approach to achieve social change
Social entrepreneurs are practical visionaries who possess qualities traditionally
associated with leading business entrepreneurs – vision- innovation - determination
and long term commitment
They adopt a mission to create social value and not just private value
They look for long term social return on
investment
They want to create lasting improvements

They think about sustaining impact

 1) created to provide benefits for a community

ELEMENT
S OF
SOCIAL 2) Creates Oppurtunities so people can help themselves
ass well as others

ENTERPRI
SE 3) utilises sound commercial business practices to ensure
sustainability. i.e. the business will naturally uphold and
encourage environmental sustainability as well as ethical
considerations
 Social Issues inadequately addressed
by government

KEY SOCIAL Need to raise funds for charities

ENTREPREN
EURSHIP Changing Public Budget cuts require
DRIVERS Sector
new revenue
streams

Growing demand for corporate social

responsibility and ethical
entrepreneurship
QUALITIE WILLINGNESS TO SELF WILLINGNESS TO SHARE WILLINGNESS TO BREAK FREE

S OF A CORRECT CREDIT OF ESTABLISHED STRUCTURES

SOCIAL
ENTREPR
ENEUR
WILLINGNESS TO CROSS WILLINGNESS TO WORK STRONG ETHICAL IMPETUS
DISCIPLINARY BOUNDARIES: QUIETLY
PULLING TOGETHER PEOPLE
FROM DIFFERENT SPHERES,
WITH DIFFERENT KIND OF
EXPERIENCE AND EXPERTISE,
WHO CAN TOGETHER BUILD
WORKABLE SOLUTIONS
 Spot Spot a gap in the market and try to fill it

GUIDE Be Be clear why you want to do it

FOR Develop Develop networking abilities

SOCIAL Be good at spotting and reusing resources that are

ENTREPR Be underused or abandoned

ENEURS Make Make mistakes and learn from them

Manage Manage cash flow

 Search for opportunities

CHALLEN Implementation

GES FOR Strategic selection

SOCIAL
ENTERPRI Innovation strategy

SE Innovation organization

Rich linkages
sopenn
https://www.youtube.com/watch?v=3ekVdaJOycs
Chtrika
https://www.youtube.com/watch?v=GT9KhndWAPs
ENTREPRENEURIAL
ECOSYSTEM
101
ENTREPRENEURSHIP
ECOSYSTEMS
WHY STARTUPS
FAIL?
21% fail due to Team, Personal withdrawals

18% fail due to Funds/Money

61% due to lack of leverage

- Created something no one wants

- Out competed/Poor strategy/marketing
- Did not Pivot
- Constraints: Location/Legal
CRITERIA FOR EASE OF
DOING BUSINESS
1. Starting a business
2. Dealing with Construction Permits
3. Getting Electricity
4. Registering property
5. Getting Credit
6. Protecting Investors
7. Paying taxes
8. Trading across borders
9. Enforcing contracts
10. Resolving insolvency

Measurements
● Distance to frontier
● Number of new business
● Good practices
● Transparency/Regulation
What is Startup
Ecosystem?
People

Support Mechanisms

Funding & Finance

Education & Training

Government

Culture

Markets

Startups

.
ECOSYSTEM MAP
Professor Daniel J. Isenberg
Babson College, Boston

Babson Entrepreneurship &

Ecosystem Project

”An ecosystem influences the flow of

resources available to businesses.
Ideally you want high potential
ventures to be able to quickly access
the right resources for them, and for
those resources to be high quality
and appropriate.”
MARKETS
e.g. early adopters for prototypes, referring
customers, supply chains, internationalisation
Ease of exporting? Local / regional markets?
SUPPORTS
e.g. legal / accounting advisers,
telecommunications / transportation infrastructure,
entrepreneurship orgs
Incubators? Accelerators? Business programmes?
FINANCE
e.g. business angels, venture capital, micro loans,
banking, High Net Worth Individuals, public grants
Bank loans? VC availability? Public grants?
CULTURE
e.g. tolerance of risk and mistakes, positive social
status of entrepreneur
Meetups? Role of media? Opinion leaders?
HUMAN CAPITAL
e.g. skilled and unskilled labour, serial
entrepreneurs, entrepreneurship training programmes
Universities? Internships? Apprenticeships?
POLICY
e.g. regulatory framework incentives, existence of
public research institutes, taxes
National / local public sector engagement?
ENTREPRENEURSHIP
ECOSYSTEMS
A strong ecosystem can help more businesses grow by…

Creating the conditions for more startups

Helping existing companies to scale
Increase the perception of what’s possible (create
aspiration)
Attracting investment to a cluster
ENTREPRENEURSHIP
ECOSYSTEMS
A strong ecosystem can help more businesses grow by…

Creating the conditions for more startups

Helping existing companies to scale
Increase the perception of what’s possible (create aspiration)
Attracting investment to a cluster

Who are the actors, and what does growth look like to them?

Entrepreneurs: investment, exporting…

Educators: Higher rates of employment…
Investors: More & better returns…
City policy-makers: inward investment, branding, profile…
VISION & IMPACT

As policy-makers, what is your vision for your ecosystem?

What do you want your town / cluster to look like in 3 - 5

years time?
What role will YOU play in making that vision come to
life?
Driven by PLACE more than by entrepreneurs’ individual
aims
“Our city will be better because of XYZ”
VISION & IMPACT

As policy-makers, what is your vision for your ecosystem?

What do you want your town / cluster to look like in 3 - 5 years time?
What role will YOU play in making that vision come to life?
Driven by PLACE more than by entrepreneurs’ individual aims
“Our city will be better because of XYZ”

How do you assess if you’re going in the right direction?

Impact measurement: where are you starting from?

Some outcomes take 5+ years to achieve
Avoid “ownership” of success: not a zero-sum game
Theory of Change: qualitative & quantitative
COMMUNICATING SUCCESS

Celebrate the “quick wins” often and early

Homegrown success stories on repeat

Inspirational success stories from nearby larger clusters
Legitimise success and increase people’s ambitions
Increase pride in your local cluster

How are you communicating this?

Simple, visual communication

Landing page, slide decks, infographics
Clear & easy to understand vision
ECOSYSTEM-IN-A-BOX
Entrepreneurs & Mentors
Leaders
Communit Services &
y STARTUP Support
Talen
t EcoSYSTE Access to
Capital
Terroir m Spaces &
Places
Corporate Communication
Patrons Platforms
 1
ENTREPRENEURS &
LEADERS
FOLKS WITH VISION AND THICK SKIN, WHO WILL LEAD THE CHARGE
 2
COMMUNITY
SOMETIMES YOU WANNA GO WHERE EVERYBODY KNOWS YOUR NAME.
 3
TALENT
IT ALL STARTS WITH TALENT. IDEAS ARE CHEAP – EXECUTION RULES.
 4
TERROIR
IF YOU’RE TRYING TO BE COOL... YOU’LL ALWAYS BE ON THE WRONG SIDE OF COOL.

✚
 5
CORPORATE
PATRONS
EVERYBODY NEEDS A SUGAR DADDY.
✚
 6
MENTORS
SEED THE ECOSYSTEM WITH FOLKS THAT HAVE BEEN
THERE AND DONE THAT.

✚
 7
SERVICES & SUPPORT
ACCOUNTANTS, ATTORNEYS, PR AND MARKETING PROFESSIONALS,
CONSULTANTS, AND UNCLE SAM.

✚
ACCESS TO 8

CAPITAL
CAPITAL SEEKS THE HIGHEST RETURN COUPLED
WITH THE LOWEST RISK
✚
 9
SPACES &
PLACES
EVERY COMMUNITY NEEDS A HOME.
✚
1
0
1
0
 1
COMMUNICATION 0
PLATFORMS
TOOLS FOR TELLING THE STORIES
✚
GUIDING PRINCIPLES OF
ENTREPRENEURSHIP
ECOSYSTEMS
The important principles to remember:
Controlled by: everyone (and no one)
Owned by: everyone (and no one)
Self-perpetuating without constantly requiring new inputs
Self-sustaining in the right conditions / culture

Hardware within an ecosystem:

Accelerators, incubators, startup weekends, financial incentives etc.

Software within an ecosystem:

leadership, dialogue, discussion, peer-to-peer support, celebrating etc.
HOW FAR HAVE
WE COME...

2012 (Rank 19th) 2018 (Rank 15th)

● 74% less funding than SV ● Funding has significantly improved

● Startups are 51% less likely to tackle ● More startups are reaching global
$10B+ market markets
● Subscription models are 59% less ● Subscription model is getting
likely to be used popular
● Low rate of Technology adoption (Very ● Relatively improved adoption of
few using Ruby/Python) technology

.
EVALUATION
CRITERIA - 2012
● Startup Output Index 17th
● Funding Index 18th
● Company Performance Index 17th
● Talent Index 18th
● Support Index 15th
● Mindset Index 10th
● Trendsetter Index 20th
● Differentiation from SV Index 10th
FUNCTIONS OF AN
ENTREPRENEUR
130
An Entrepreneur has to perform a number of functions right from the generation of
idea up to the establishment of an enterprise, and effective operation of an enterprise.
He recognizes the commercial potential of a product or a service, formulates
operating policies for production, product design, marketing and organizational
structure.
He is thus a nucleus of high growth of the enterprise.
Entrepreneur has to perceive business opportunities and mobilize resources like
man, money, machines, materials and methods. The following are the main functions
of an Entrepreneur.

131
132
 1. Idea generation:

2. Determination of business objectives

FUNCTIO 3. Rising of funds
NS OF AN 4. Procurement of machines and
ENTREPR materials
5. Market research
ENEUR
6. Determining form of enterprise

8. Implementation of the project

133
 The first and the most important function
of an Entrepreneur is idea generation.

1. IDEA Idea generation implies product selection

and project identification.

GENERAT Idea generation is possible through vision,

ION: insight, keen observation, education,
experience and exposure.

This needs scanning of business

environment and market survey.

134
 2.
DETERMINA Objectives should be spelt out in clear terms.
TION OF - nature and type of business, ( manufacturing
BUSINESS concern, service-oriented or a trading business)

OBJECTIVES

135
FOR
EXAMPLE :

136
 An Entrepreneur can raise the fund from internal
source as well as external source.
3. RISING
OF Get information about the government sponsored
schemes in which he can get government assistance in
FUNDS: the form of seed capital, fixed and working capital for
his business.

137
 Another important function of an Entrepreneur is to

4. procure raw materials and machines.

PROCURE Entrepreneur has to identify cheap and regular

MENT OF
sources of raw materials which will help him to
reduce the cost of production and face competition
boldly.

MACHINES
AND While procuring machineries he should specify the
technical details and the capacity.

MATERIAL
S: He should consider the warranty, after sales service
facilities etc before procuring machineries.

138
 Market research is the systematic collection of data
regarding the product which the Entrepreneur wants
to manufacture.
5.
MARKET
RESEARC
H: Entrepreneur must undertake market research
persistently to know the details of the intending
product, i.e.

the demand for the size of the the supply of the the price of the
competition,
product, market/customers, product, product ….etc.

139
 Determination of ownership right is essential
on the part of the entrepreneur to acquire
6. legal title to assets.

DETERMIN
ING FORM Entrepreneur must determine form of
enterprise depending upon the nature of the
OF product, volume of investment, etc.

ENTERPRI
SE: The forms of ownership are
sole
Joint Stock co-operative
proprietorship partnership,
Company, society etc.
,

140
 To carry out this function an Entrepreneur must
7. perform the following activities.
RECRUITM  (a) Estimating manpower requirement for short term and long
term.

ENT OF  (b) Laying down the selection procedure.

 (c) Designing scheme of compensation.

MANPOWE  (d) Laying down the service rules.

 (e) Designing mechanism for training and development.
R:

141
 Entrepreneur must develop schedule and action
plan for the implementation of the project.

8. The project must be implemented in a time bound

manner.
IMPLEMENTA
TION OF THE All the activities from the conception stage to the
PROJECT: commissioning stage are to be accomplished by
him in accordance with the implementation
schedule to avoid cost and time overrun.

He must organize various resources and coordinate

various activities. This implementation of the
project is an important function of the Entrepreneur.

142
All the above functions of the Entrepreneur can precisely be put into three categories
of
1) Innovation
2) Risk bearing
3) Organizing and managing functions

143
ENTREPRENEURIAL
PROCESS
Ent. Is associated with terms like high risk chaotic, intuition, gut feeling, multi
tasking,

So are Entrepreneurship and process opposites of each other

But successful ent. Feel that ent is part

Art: passion, emotion, self gratification , risk Science : structured activities that need to be
Art + science
appetite practised in a systematic and diligent manner
If we add intuition into the
Art, it would lead to lot
more time and energy than
needed

But which part can be the

intuitive part and which
part will need to practiced
in a specific process
Having a process framework has the following
benefits
 The entrepreneur does not miss anything
 Bring all the potential anomalies in the visualization of the
business
 Early detection of failures
DIFFERENCE BETWEEN A
STRUCTURED AND
UNSTRUCTURED
structured APPROACH
Unstructured
Relies on scientific approach with Dependent on the capability and
defined set of activities whims of the practitioner , more of an
artistic pursuit

Predictive by nature Reactive in nature, more in present

and not in the long term strategy

Meticulous process Key aspect may get overlooked in the

process of passionate creation

Future risks can be averted Future risk not identified

Ensures optimal utilization of Poor resource utilization
resources
The entrepreneurial process cannot be a linear model
We might need to retrace steps and go back to a
previous step
THE ORTHODOX ITERATIVE PROCESS
THE UNORTHODOX ITERATIVE PROCESS
 For every successful entrepreneur we will find many
who have not broken out of the start phase despite years
of existence
Even with success stories over a period of time the
THE successful entrepreneurs have implanted practices and
processes
ENTREPREN Implementing a process enables releasing more time and
EURSHIP money in the system by optimising resource usage,
reducing wastage of time and effort
PROCESS There is stage wise growth that happens for the
organization.
At every step the organization spends some time
sustaining itself and preparing itself for the next orbit
shift and leap.
It is not a continuous
process

It is continual – pausing –
and stopping at every level
to prepare itself for the
next jump
3S

Sustai
Start Scale
n

152
 This is the time of identifying the specific customer you are
going to serve.
3S Determine what his needs are and craft the product or service
that would meet that need
i.e get the customer –product fit

The product need not be perfect, you can build what is known
as minimum viable product that would answer the need, release
it an iterate along the way. At this stage, what you need to prove
is traction that a sufficient number of customers would buy the
product

Sustai
Start Scale
n

153
 STABILITY

3S During the startup stage, the focus is determining market product market fit and not much
attention is given on the process and organizational charts
In the stability stage the organization having proven traction needs to put in the necessary
process and structure
here matrix and orders are established to replace the chaotic startup atmosphere
there is a gradual shift from being a pirate to being an organised Navy

Sustai
Start Scale
n

154
3S
Once stable ized the organization is ready to scale either geographically , creating new
customers or requiring complementary corporations
this fast growth stage whose success is largely determined by the strong foundation in
the first two stages
here the owners and founders would have to decide to exit the business or establish a
legacy that would last a long number of years
for entrepreneurs who have undergone or is undergoing this journey it is the most
satisfying trying and fulfilling of India verse

Sustai
Start Scale
n

155
ENTREPRENEURIA
L PROCESS
1. Assessing the opportunity
2. Ideation
3. Arriving at I to O map
4. Building thee Business Model
5. Creating the Business Plan
6. Marshalling the resources
7. Creating the Legal Entity
8. Making the Sale
ASSSESSING THE
OPPURTUNITY
Ent. Is a social and economic imperative
Such an important thing cannot just because of an idea ( more
artistic and not realistic)
This is one step prior to idea
Instead of starting with an idea, the process now starts with a
consideration of a suitable opportunity space
Opportunity can be sourced only from the external environment
This ensures that there is a market
Failure to look at the opportunity would make an entrepreneur
making a revolutionary idea with little takers in the outside market
DIFFERENC
E
BETWEEN  An opportunity is understanding of the gap , that can be

STARTING
capitalized on
 A deficiency in the current service ( amazon only books )

WITH AN
 A lack of service or product ( grofers)
 Restricted availability of product or service ( MTR rava idli bcoz of lack of
availability of rice during world war 2)
IDEA AND  An unsolved problem
 A challenge in the societal or economic space

STARTING  Lifestyle inconvenience ( ZOMATO )

WITH AN
OPPURTUNI
TY
IDEATION AND
COMING UP WITH THE
IDEA
After identifying the opportunity in the market , the
entrepreneur should look at ways to capitalize the same
Ideation the process of coming up with ideas
This may lead to numerous ideas , which may be
independently wonderful
But whether this can be applied effectively to an
available situation requires further thinking
Don’t get carried away with the act of coming up with
ideas
It is a tool to come up with a commercially viable
activity
ARRIVING AT I TO
O MAP
An entrepreneur has multiple idea ,which they intend to pursue

Now it is important to choose the right idea and not the best idea

Choose the idea that fits a particular market or the specific opportunity

This requires a lot of analytical thinking and a bit of intuitive thinking too

If one become more intuitive at this stage we would ending up only

supporting the idea which is our own ( ent. Brain child )

It could be daring , but could be completely impractical

So one needs to filter ideas against the opportunity

An Ito O map suggest the tying of an idea to a single opportunity

It is a scientific method to shortlist the ideas that have a greater chance of

succeeding in the identified opportunity space
BUILDING THE
BUSINESS MODEL
A business has various risks
 Reduced value addition by the enterprise
 Low gap between the supplier and the customer
 Completion
 Inherent market dynamics in which the business operates
 Industry in which the business operates
 Internal factors such as costs or people
BUILDING THE
BUSINESS MODEL
A business model talks about the way the business adds value to
itself while providing value to its customer
Business model has to made for the idea which are shortlisted by
the I2O map
It includes various aspects of business like sourcing, value
addition, distribution, collection, pricing , costing activities, etc
It is a basic micro level detailing of the running of the business
Customer and sales analysis helps in developing the marketing
plan , identify the first set of customers
This identification would be valued by venture capitalists
CREATING THE
BUSINESS PLAN
A business plan should be written only after an
entrepreneur works out the business model for the I2O
map
It is a way of detailing to a third party or a potential
stakeholder about the core idea underlying the business
potential
It helps the entrepreneur to control and give a final shape
to a constantly evolving thought
It helps in sourcing potential partners
It helps in convincing the VC or Angel Investors
Building collaboration with partners
MARSHALLING THE
REQUIRED
RESOURCES
Many a times an entrepreneur believes that raising finance
is the single most important exercise in entrepreneurship
It also needs Core Team
Potential networks , which give the organization reputation
and trust
People , knowledge worker
Finance
Infrastructure , not just physical place, sufficient amenities
and a place with minimum interruption or distractions
Identifying potential customers
CREATION OF
LEGAL ENTITY
After all the resources are in place, the entrepreneur
needs to go through the process of entity creation
i.e a place, a name and its own existence
proprietary , partnership, limited
MAKING THE
SALE
No business has ever existed without the customer.
A business sustains and grows because the
customer decides it should grow and not because of
the entrepreneurs passion for growth
 MYTHS OF
ENTREPRENEURSHIP
MYTH: 1:
ENTREPR
ENEURS
ARE Ex. David McClelland and teams experiment in
Kakkinada, Rajahmundry and Vellore
BORN,
NOT
MADE
THE OBJECTIVE OF THE
PROGRAM WERE

To break the
To induce
barrier of
achievement
limited
motivation.
aspirations.
FOUR The trainee entrepreneurs were asked to
MAIN control day dreaming & develop a positive
attitude among themselves.
ITEMS
CONSTITU The participants imagined themselves in need
& the challenge set before themselves was to

TED THE have realistic & carefully planned goals.

ACHIEVEM They tried to attain concrete & frequent

ENT feedback.

DEVELOP They watched models – heroes who

MENT performed well & tried to imitate them.

COURSE.
 The trainees exhibited a more active
business behavior & to achieve they
asked for longer hours too.

OUTPUT
Like all disciplines, entrepreneurship
has models, processes and case studies
that allow the topic to be studied and
the knowledge to be acquired
MYTH: 2:
ENTREPR
ENEURS Mere doing makes perhaps a gambler and mere
thinking a philosopher or thinker
ARE Entrepreneurs are usually very methodical people
DOERS, who plan their moves carefully
Thinking entrepreneurs are as important as doing
NOT entrepreneur

THINKER
S
MYTH: 3:
ENTREPR
ENEURS Ray Kroc
ARE Mohammed Yunus

ALWAYS https://www.youtube.com/watch?v=Q3yUfZ2wTA4
(https://www.youtube.com/watch?v=MgYes4bA7oM )
INVENTO
RS
 MYTH: 4:
ENTREPR
ENEURS The people behind professionally managed and
globally recognized enterprises like Infosys, Larsen &
ARE toubro( L&T) Kingfisher Airline, Deccan
Airways( captain Gopinath ) Biocon( Kiran
ACADEMI Majumdar Sahw)

C AND
SOCIAL
MISFITS
MYTH: 5: https://www.youtube.com/watch?v=wrGG2v87vKk

ENTREPR Many books and articles have presented checklist of

characteristics of the successful entrepreneurs
ENEURS These lists were never validated nor complete
MUST FIT The environment, venture, and the entrepreneur have
interactive effects which result in many different
THE types of profiles

PROFILE
MYTH: 6: Lack of financing is often an indicator of other
ALL problems :
-Managerial incompetence
ENTREPR -Lack of financial understanding
ENEURS -Poor investment

NEED IS -Poor planning

MONEY
MYTH: 7:
ALL “Being at a right place at the right time “

ENTREPR Is
Luck
ENEURS But luck happens when
NEED IS “Preparation meets opportunity “

LUCK
What appears to be luck is preparation, determination,
desire, knowledge, and innovativeness
 MYTH: 8: An entrepreneur is heavily involved in all facets of
ENTREPREN their ventures
EURSHIP IS They are doing a lot of things at one time and have a
UNSTRUCTU lot to accomplish

RED AND They have their own style of system

CHAOTIC Which may seem strange to the casual observer

 MYTH: 9:
MOST
ENTREPRE As per Kirchoff’s study, 50% of new ventures failed,
NEURIAL but entrepreneurs learned something from failure and
became stronger next time. Learning from the “
INITIATIVE corridor principle “

S FAIL
 MYTH: 10:
ENTREPRENE Entrepreneurs take gambling, but calculated risk.
URS ARE
Most successful entrepreneurs work hard through
EXTREME planning and preparation – to minimize the risk
RISK TAKERS involved and better control the destiny of their
vision.

...THE
GAMBLERS..
 PROS AND CONS OF
ENTREPRENEURSHIP
ADVANTAGES OF
ENTREPRENEURSHIP
Excitement / new/ change / fast paced
Originality
Independence / freedom to work on various
possibilities
Deciding your work hours/style
No handcuffs on the limit of money you can earn
DISADVANTAGES OF
ENTREPRENEURSHIP
lack of fixed Salary & benefits
Lack of sense of security / future is uncertain
24 X 7 work schedule
Administration
Govt and local interference
Incompetent staff
Failure
Its not about You ( investors, workers………)
 DIFFERENCE BETWEEN
EMPLOYEE AND EMPLOYER
MINDSET
191
192
What’s the Difference
Between an
Employee Mindset
and an
Entrepreneur
Mindset?
 EMPLOYEE
MINDSET

You go to work and do

only what needs to be done
ENTREPRENEUR
MINDSET
EMPLOYEE
MINDSET
ENTREPRENEUR
MINDSET
EMPLOYEE
MINDSET
 Entrepreneur Mindset

There is no limit to
how much money
you can make
EMPLOYEE
MINDSET

“If you paid

me more, I’d
work
harder”
EMPLOYEE
MINDSET
Do you think if
minimum
wage was
doubled to
$15/hour that
people
would work
harder?

I don’t think so
ENTREPRENEUR
MINDSET
Employee Mindset

Your employer
sets your
goals
 ENTREPRENEUR
MINDSET

You set your own

goals and go after
them any way
you can
EMPLOYEE
MINDSET
ENTREPRENEUR
MINDSET
EMPLOYEE
MINDSET
ENTREPRENEUR
MINDSET
EMPLOYEE
MINDSET
 ENTREPRENEUR
MINDSET

You know
your success
or failure
depends upon
you and not
your boss or
coworkers
EMPLOYEE
MINDSET
You try
something
one or
two times
and give
up if you
fail
 ENTREPRENEUR
MINDSET

It doesn’t matter
how many times
entrepreneurs
fall, they get back
up again and
again and again
EMPLOYEE
MINDSET

You’re used
to thinking
“inside the
box”
ENTREPRENEUR
MINDSET
EMPLOYEE
MINDSET

You have a
set job
description
and required
skillsets
 ENTREPRENEUR
MINDSET

You must learn and

acquire many new
skillsets and are
excited to do so
because you know it
will grow your
business
EMPLOYEE
MINDSET
You don’t care
about what money
is going in and
out of the
company.
You just want to
make sure you can
continue
receiving benefits.
ENTREPRENEUR
MINDSET
EMPLOYEE
MINDSET

You learn to live

with a job you
dislike for the
salary
 ENTREPRENEUR
MINDSET

You have to
love your
business
because of the
effort it will take
to run it
EMPLOYEE
MINDSET
Employee Mindset

You follow
the
mainstream
ENTREPRENEUR
MINDSET
You follow
the rules
 Entrepreneur Mindset

You love
making the
rules
Employee Mindset

You don’t
have a plan
ENTREPRENEUR
MINDSET
EMPLOYEE
MINDSET
 Entrepreneur Mindset

You seek
out change
EMPLOYEE
MINDSET

You only
care about
what’s best
for you
https://www.youtube.com/watch?v=PThQlBo13lY
https://www.youtube.com/watch?v=h-KHWUq3B7I
https://www.youtube.com/watch?v=PURBODYfh4g