The Individual Entrepreneurial Mind

Adapted from BITS C482 CLEO By Prof Arya Kumar, BITS, Pilani

Entrepreneurs Challenging the Unknown

Entrepreneurs Recognise Opportunity Where others see chaos or confusion Are Aggressive catalyst for Change within the Marketplace Challenge the Unknown and continuously Create the Future

A few identified traits of Next Gen Entrepreneurs

ALL FROM MERITOCRATIC INSTITUTUIONS HIGHLY PRINCIPLED AGGRESSIVE LISTNERS CLEAR ABOUT PRIORITIES PHYSICALLY FIT GREAT NETWORKERS CONNECT WITH PEOPLE EASILY HARD WORKERS EYE FOR DETAIL

So can Entrepreneurship be taught ?

Most entrepreneurs and investors seem to think the answer is "no" Most academicians and students think the answer is "yes."

Business can be Taught Risk-Taking Cannot be Taught

Born entrepreneurs can be taught how to become better business people. But business people cannot be taught how to become entrepreneurs.

Can Entrepreneurship be taught ?

Another perspective

If you ask, most entrepreneurs will tell you that the reason they started out was because the urge to start became so strong that they just had to give up what they were doing and dive into it. Hardly anybody will say that they started a company because they attended a course in entrepreneurship.

Entrepreneurship may not be taught but it can certainly be endured !!!

Chronology
Middle Ages An actor & person in charge of large-scale production projects 17th Century Person bearing risks of profit (loss) in a fixed price contract with govt. 18th Century

Those who supplied funds and received interest (VENTURE CAPITALISTS) were distinguished from those who received profit from managerial capabilities (Entrepreneurs).

Chronology
19th & 20th Century

Entrepreneur is an Innovator & develops untried technology. One who maximizes opportunities One who takes initiative, organizes some social & economic mechanisms, & accepts risks of failure.

And Today

Entrepreneurship is about all these and even MORE !!!

Why is it Important ?
Entrepreneurship contributes to job creation and growth Entrepreneurship is crucial to competitiveness Entrepreneurship unlocks personal potential Entrepreneurship promotes societal interests Entrepreneurship contributes in fostering social and economic cohesion for regions whose development is lagging behind

And Why are you the Best suited for Entrepreneurship ?

Young Independent Energetic Dynamic Adaptive Creative Technically Sound Passionate to Achieve

Start-Ups
Any new venture initiated by an Entrepreneur is called a Start-Up. There are different kinds of Start-Ups
Lifestyle Firm A small venture that supports the owner & usually doesnt grow. Foundation Company Formed from Research & Development that usually doesnt go public.

High-Potential Venture That has high growth potential & hence receives great investor interest. Gazelles Very high growth ventures

Entrepreneurship v/s Intrapreneurship

Intrapreneurship Entrepreneurship within an existing organization. Independence, Independence & opportunity to create Primary Motives ability to advance in & money. the corporate rewards. Survival & achieving Time Orientation Depending on urgency 5-10 yr growth of business. to meet self-imposed & corporate timetable. Direct Involvement Activity Direct involvement more than delegation. Moderate risk taker Risk Moderate risk taker Deals with mistakes & Failures & Mistakes Attempts to hide risky failures projects from view until ready.

Entrepreneurship v/s Intrapreneurship

Follows dream with decisions. Able to get others to agree to help achieve dream. Self, Customers & Self & Customers Who Serves Sponsors Entrepreneurial small- Family History Entrepreneurial smallbusiness, professional business, professional, or farm-background. or farm background. Relationship with Transactions within Transactions & deal hierarchy. others making as basic relationship Decisions

Intrapreneurial Environment
Organization operates on frontiers of technology New ideas encouraged Trail and error encouraged Failures allowed No opportunity parameters Resources available and accessible Multidiscipline team work Long time horizon Volunteer Program Appropriate reward system Sponsors and champions available Support of top management

Establishing Intrapreneurship in the Organization

An organization desiring to establish an intrapreneurial environment must implement the following steps :

1)Secure a commitment to intrapreneurship in the organization by top, upper & middle mgmt levels 2)Identify the areas in which top mgmt is interested in along with the amount of risk money available to develop them further 3)Deploy Technology to make it flexible 4)Train the employees. 5)Develop ways to get closer to its customers

Establishing Intrapreneurship in the Organization 6) Learn to be more productive with fewer resources (e.g Downsizing etc.) 7) Establish a strong support structure for Intrapreneurship. 8) Reward the employees for their performance 9) Implement an evaluation system that allows successful intrapreneurial units to expand and unsuccessful ones to be eliminiated.

Entrepreneurial Background
Childhood Family Environment

Education
Personal Values Work History Age

Global- Indian Entrepreneurship

The social meaning of risk taking varies from country to country. When you start an enterprise, does your culture allow you to borrow money from friends and relatives? Or even from banks? Some countries encourage entrepreneurship and others dont . One measure of a societys entrepreneurship levels is its attitude towards failure. In China and Japan, theres a big stigma attached to business failure, making it quite impossible for a failed entrepreneur to recoup and try again. In some societies, business failure marks you for life.

Global- Indian Entrepreneurship

On the other hand, in countries like the USA, UK or Israel, it doesnt necessarily do you any damage, unless you failed because of some unethical conduct. American business history offers up many instances of tycoons who went bankrupt several times before they built their fortunes. And the American corporate world usually sees entrepreneurial experience as an asset and those who have it are a valued commodity. If successful entrepreneurs know what to do The failed ones know what not to do.Which is equally important.

Global- Indian Entrepreneurship

Financial institutions & their policies have a big impact on a countrys entrepreneurship levels. The financial institutions of France and Germany generally dont encourage risk taking Britain and Holland are the entrepreneurial champs on the other hand.

Indian Attitude towards Entrepreneurship

A great Entrepreneurial Optimism is seen in India now than previously. A largest chunk of the Indias population is in the 18-35 age group, and thats a time when people are the least afraid to take risks. On the other hand, Indias greatest liability is the corruption in its system, which is a big dampener to entrepreneurship.

Indian Scenario: Entrepreneurship

Access to information has been the biggest factor contributing to the global mindset in Indian Entrepreneurs. The other factor is the global flow of capital, which enables people to go wherever the money is. Govt. policies and Organizations like TiE, YEO, NEN (National Entrepreneurial Network) who are actively promoting Entrepreneurship.

To be a Global Entrepreneur..
Launching yourself as a global entrepreneur means competing with the best in the world.

First, a global entrepreneur needs to build and manage a global supply chain, from raw materials to the final customer. Second, global entrepreneurs may have small bodies but they need to have long hands. They need a world-wide partnership network, to be managed adroitly despite the problem of time-zone differences.

To be a Global Entrepreneur..
Third, they need to build and manage global organizations, wherein key executives may be stationed far from headquarters. Lastly, global players need to have an understanding of geopolitics.
E.g: How does a news from Ethiopia affect the business

The Myths About Entrepreneurship

 Myth #1 Get Rich Quick!

Truth is
Life as an entrepreneur is not about money. Success rarely happens overnight. It's about what you want to do with your life.

Myth # 2
You must be born an entrepreneur (trait theory)
Truth is:
some of the most successful entrepreneurs are the most unlikely. It is a lifestyle choice, not an accident. Entrepreneurship can be Learnt

Myth # 3
Entrepreneurs are high risk takers Truth Entrepreneurs are calculators
Studies show entrepreneurs are only moderate risk takers

Myth # 4
You have to have a great idea Truth
Your idea must be good Your idea must be doable Your idea must be wanted or needed Your idea must be priced right

So you have to have a Great Opportunity by being at a right place, at a right time having right product or service.

Myths and Misconceptions About Entrepreneurship

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Entrepreneurs are Doers, Not Thinkers Entrepreneurs are Born, Not Made Entrepreneurs are always Inventors Entrepreneurs are Academic and Social Misfit Entrepreneurs Must Fit the Profile All Entrepreneurs Need Is Money All Entrepreneurs Need is a Luck Ignorance is a Bliss for Entrepreneurs Successful entrepreneurship needs only a great idea Entrepreneurship is easy Entrepreneurship is a risky gamble Entrepreneurship is found only in small businesses Entrepreneurial ventures and small businesses are the same thing