MANAGERIAL MANAGERIAL

PROCESS

SKILLS

Introduction

What is Entrepreneurship?

E’ship can be described as a creative and innovative response to the environment. Such responses can take place in any field of social endeavour –business, agriculture, education, social work and the like. like.

Doing new things or doing things that are already being done in a new way is E’ship.

Joseph Schumpeter says “ E’ship is a process requiring innovation.

Importance of E’ship

� Wealth creation

� Economic Development

� Self Development

� Employment including Self employment� Employment including Self employment

� Nation Building

� Social E’ship

Characteristics of E’ship

� Need for achievement

� Desire for responsibility

� Preference for moderate risks

� Perception of probability of success� Perception of probability of success

� Stimulation by feedback

� Energetic activity

� Future orientation

� Skill in Organizing

� Attitude towards money� Attitude towards money

Nature and Development of E’ship

Factors influencing E’ship

� The Individual

� Environment

� Socio-cultural factors

� Support systems� Support systems

The Individual

3 main factors which influence individual’s behavior:

� Entrepreneurial motivation

� Personal involvement� Personal involvement

� Coping capability

Environment

� Economic and political environment

� Awareness of financial & commercial institutions

� Should know which industries are encouraged for small entrepreneurssmall entrepreneurs

� Should know what raw materials are available & where.

� Should be well aware of the infrastructure, transportation facilities, power, market in proposed locations of his enterprise

Socio-cultural factors

� Family background & norms & values of immediate social circle – contribute to E’ship development.

� Following aspects of normative behavior relevant 4 E’ship:E’ship:

- Family expectations & pressures

- Family’s role in small business

� Risk taking

� Independence

� Willingness to work

� Socialization.

Support Systems

� Govt support

� Banks & other financial institutions

Women Entrepreneurship

Introduction

� Main reasons for slow economic growth – absence of women in mainstream economic activities

� Not many women in corporate world

� Increasing slowly in corporate world..� Increasing slowly in corporate world..

E’ship – a favourable career for Women

� Provides flexibility

� High elasticity: Never overcrowded and No quota, no reservation for entry

� Excellent in managing finance� Excellent in managing finance

� Can easily beat men..

Qualities that make them successful

� Endurance among women: More hard worker, Have the responsibility of work as well as family

� Responsibility: Responsibility at an early age..

� Managerial acumen: Inborn, Manage household –� Managerial acumen: Inborn, Manage household –people & managerial skill

� Financial skills: Responsibility of running a household, Proper use of ltd resources, Good finance manager..

� Communication skills..

Weakness of women entrepreneurs

� Lack of assertiveness

� Ltd understanding of legal issues

� Emotional in business decisions

� Lack of exposures..� Lack of exposures..

Govt’s efforts to encourage women E’ship

� E’ship Development Programmes (EDP), Run by District Industries Centres (DIC)

� Indian govt with UN providing substantial financial help for training rural women..help for training rural women..

Examples

� Shehnaz Hussein

� Ekta Kapoor

� Vandana Luthra – VLCC

� Shri Mahila Udyog – Lijjat Papad� Shri Mahila Udyog – Lijjat Papad

� Kiran Mazumdar Shaw – Biocon Ltd

Innovation

Introduction

� Intense competition

� Fast changing markets Innovation

acquired

Importance

� Technologies

Importance

What is Innovation?

� Its not a technical term, neither science or technology

� Its an economic & social term

� Is investing of resources 2 create new wealth or� Is investing of resources 2 create new wealth or

� Investing of wealth 2 create new resources

� Always mkt focused – as measured by assessing its impact on environment

� Requires disciplined work force

� I = f (E)

� Not restricted to a large enterprise but includes any kind of activitykind of activity

� Innovation is an effort to create purposeful focused change in an enterprise’s economic or social potential..

What is Innovative Strategy?

� Wht is our business & wht should it be?

� Assumptions regarding future which is different from ongoing business.

� Strategy of ongoing business:� Strategy of ongoing business:

� OPTIMIZE WHAT ALREADY EXISTS..

� Ruling assumption of Innovative strategy:

� WHATEVER EXISTS IS AGING

� Is on the premise that existing pdts & services, mkts, � Is on the premise that existing pdts & services, mkts, distribution channels – sooner or later go down..

� Motto of strategy of

� Ongoing business – BETTER & MORE

� Innovation – NEW & DIFFERENT

� Innovative strategy is planned out by systematically getting rid of old & obsolete..

� One needs innovation:

� To face competition

� To stand out in clutter

� To survive� To survive

� To solve problems..

Innovations & Profit

� Profits reward for performing innovation

� Innovation has 2 categories:

� Reduce cost of production� Reduce cost of production

� Increase demand for the product

Reduce cost of Production

� Change in production function (HOW??)

� Intro of new machinery

New & cheaper technique� New & cheaper technique

� Exploit new source of R.M

� New & better method of organizing the firm..

Increase demand for the product

� Change demand or utility function (HOW)

� Intro new pdt

New variety or design of the pdt� New variety or design of the pdt

� New & superior method of advertising

� Discover new mkts..

Instilling attitude for Innovation

� Encourage creative conflict

� Big ideas come from small teams

Learning happens away from desk� Learning happens away from desk

� Understand the pdts user

� Live in future

� Failure sometimes produces innovation..

� Understand the pdt ( also competitors)

� Visualise by making lot of prototypes

� Evaluate & Re-evaluate

� Implement� Implement

� Team need leaders & mentors, not bosses

� Fresh ideas occur faster in a fun workplace

Rural Entrepreneurship

Define Rural E’ship

We could define rural entrepreneurship more broadly as the enthusiastic willingness of a villager to organize his or her economic activity, whatever it may be (a business, a job, an investment etc) with the help of appropriate technology and practices the help of appropriate technology and practices conceived for a sustainable living.

Barriers to Entrepreneurship

E’ship fail due to several barriers & problems:

� Lack of viable concept

� Lack of market knowledge

� Lack of technical knowledge

� Lack of seed capital

� Lack of business know-how

� Competency-lack of motivation

� Legal constraints & regulations

Types of Entrepreneurs

� Innovating Entrepreneurs: they are creative, aggressive on experimentation, cleverly put attractive possibilities into practice, helpful for the country, transformation in lifestyle, commonly found in developed countries.in developed countries.

� Imitative Entrepreneurs: readiness to adopt innovation, imitate technology, suitable for underdeveloped countries.

� Fabian Entrepreneurs: traditionally bounded, Very cautious skeptical while practicing any change, shy and lazy, follow footsteps of their predecessors, use old techniques of production, Dealings determined by customs, religion, tradition & past practicesby customs, religion, tradition & past practices

� Drone Entrepreneurs: conservative or orthodox in outlook, Refusal to adopt & use opportunities to make changes in production, May even suffer loses, Laggards as they continue in tradition methods, When their pdt loses marketability they are pushed When their pdt loses marketability they are pushed out of mkt

Intrapreneurship

Definition

“Intrapreneur is an entrepreneur within an already existing (established) organisation.”

It is an entrepreneurial behaviour displayed by people within large organisations. people within large organisations.

Characteristics of an Intrapreneur

� Creates new ventures

� Innovates products/services

� Innovates processes

� Proactive� Proactive

� Risk-taking

� Renews organisation

� Competitively aggressive

Global Vision for an Entrepreneur

Concept of International E’ship

� Is the process of an entrepreneur conducting business activities across national boundaries

� Future commercial strength of any country depends � Future commercial strength of any country depends on the ability of entrepreneurs

� To take advantage of the markets outside the country borders

Push & Pull factors

� Pull Factors:

� Proactive factors

� Pull entrepreneurs to expand the business� Pull entrepreneurs to expand the business

� Motivated because of the attractiveness of the international market..

� Push factors:

� Reactive reasons

� Global expansion as a compulsion due to � Global expansion as a compulsion due to competition & rigidity in the domestic market…

Reasons why go global

� To expand Sales

� Minimize competitive risk

� Profit advantage

� Domestic market constraints� Domestic market constraints

� Govt Policies & regulations

� Improves the image

� Strategic Vision

Foreign market entry modes

• Exporting

• Licensing

• Joint venture

• Direct investment• Direct investment

• Mergers & Acquisitions

Restrictions on International trade

• Tariff Barriers:

• Tax levied on goods traded internationally

• When imposed on goods entering into the country is referred to import dutyreferred to import duty

• To increase the demand of domestic pdts

• Quota:

• Limit on the no. of units that can be imported

• Technical Barriers

• Exchange controls

• Direct & Indirect Restrictions on Foreign Investment

• Transportation cost

Developing a Business Plan

Key Ingredients of a Business Plan

� The Executive Summary

� General info regarding the business

� Project Description

� The Market & Competitors� The Market & Competitors

� The Marketing Plan

� Capital cost & Sources of Finance

� The Operation Plan

� Benefits of the Business to the Community