Entrepreneurs in India

Entrepreneurs in India

Founders of Flipkart- Sachin Bansal and Binny Bansal

Entrepreneur

• A person who sets up a business or businesses, taking on financial risks in the hope of profit.

• An entrepreneur is someone who seeks to profitably solve a problem that the world has, in exchange for enough monetary compensation to achieve their dreams.

Examples of Entrepreneurs• Bill Gates, founder of Microsoft. There are probably not

many people that have not been touched by one of his products, such as Microsoft Windows, Microsoft Office and Internet Explorer.

• Steve Jobs, co-founder of Apple computers, which produces Macs, iPods and iPhones, as well as Apple TV.

• Mark Zuckerberg, the founder of Facebook.• Pierre Omidyar, founder of eBay.• Arianna Huffington, founder of the Huffington Post, a well-

known online news site.• Caterina Fake, co-founder of Flikr, which hosts images and

videos on the internet.

Characteristics & Skills

Entrepreneurs are like gamblers, and like any gambler, their chances of winning increase if they have the right cards. Let's look at some characteristics and skills that help an entrepreneur succeed• Risk Taking• Creativity• Initiative• Independence• Full of determination• Understands failure is part of the game• Passionate about his or her business• Highly adaptable• Ability to sell and promote

Are Entrepreneur and businessman same ??

Entrepreneur Businessman

On the originality of idea An entrepreneur is an inventor and the first creator of a product.

A businessman can make a business out of an unoriginal business or product idea.

On the purpose of doing Entrepreneurs are more concerned on changing the world.

Most businessmen are doing business for profit, livelihood, for reaching their financial goals, and for becoming their own boss.

On the degree of risks taken Entrepreneurs are like sky divers. They take crazy risks.

Businessmen take calculated and managed risks.

On how he treats employees A business owner is an employer and a manager.

An entrepreneur is a friend and a leader.

Entrepreneur Businessman

On how he treats customers

An entrepreneur sees customers as his source of duty and fulfilment. For him, customers are his own life blood.

A business owner usually sees customers as his source of sales and revenues.

On how he sees the competition

An entrepreneur tries hard to beat his worst competitor – himself.

A business owner tries hard to beat his competitors and win the competition.

On what he thinks of money

Entrepreneurs do not worry a lot about money since they can always start from a scratch.

Losing money is one of the biggest worries of businessmen.

On how he sees the world

An entrepreneur sees the world as a duty rather than an opportunity.

A businessman sees the world as an opportunity.

Bases of Difference

Entrepreneur Manager

Motive The main motive of an entrepre neur is to start a venture by setting up an enterprise. He understands the venture for his personal gratification.

But, the main motive of a manager is to render his services in an enterprise already set up by someone else i.e., entrepreneur.

Status An entrepreneur is the owner of the enterprise.

A manager is the servant in the enterprise owned by the entrepreneur.

Risk Bearing An entrepreneur being the owner of the enterprise assumes all risks and uncertainty involved in run ning the enterprise.

A manager as a servant does not bear any risk involved in the enterprise.

RewardsThe reward an entrepreneur gets for bearing risks involved in the enterprise is profit which is highly uncertain.

A manager gets salary as reward for the services rendered by him in the enterprise. Salary of a manager is certain and fixed.

Innovation Entrepreneur himself thinks over what and how to produce goods to meet the changing demands of the customers. Hence, he acts as an innovator also called a ‘change agent’

But, what a manager does is simply to execute the plans prepared by the entrepreneur. Thus, a manager simply translates the entrepreneur’s ideas into practice.

Qualifications An entrepreneur needs to possess qualities and qualifications like high achievement motive, origi nality in thinking, foresight, risk -bearing ability and so on.

On the contrary, a manager needs to possess distinct qualifications in terms of sound knowledge in management theory and practice.

School Drop Out Billionaires Without College Degrees

Bill Gates: He is the billionaire co-founder of Microsoft Corporation, the world largest software company. Dropped out of Harvard to focus on building Microsoft. According to Forbes magazine, Bill Gates has held the position of the world richest man for thirteen consecutive years and he not showing a sign of letting go that position.

Thomas Edison: Thomas Edison was labelled dumb and scatterbrain by his school teachers but he went on to become one of the world’s greatest inventors and founded General Electric; one of the most powerful companies in the world.

Steve Jobs: Billionaire co-founder of Apple Inc and Pixar; dropped out of Reed College to start Apple.

Walt Disney: Walt, regarded as the most influential animator

because of his creativity with cartoons. He dropped out of high

school at 16 and founded Walt Disney; a company which now has

an annual revenue of about $30billion.

Mark Zuckerberg: The youngest billionaire in the world,

dropped out of Harvard to promote his social networking

platform; Facebook. As at 2010, he was 23 years and worth

$4billion.

Dhirubhai Ambani: Famous founder of Reliance Group and father to two billionaires; Anil and Mukesh Ambani. Started Reliance Industries from scratch and never saw the four walls of school.

What is the Role of an Entrepreneur in Economic Development ?• Promotes Capital Formation• Creates Large-Scale Employment Opportunities• Promotes Balanced Regional Development• Reduces Concentration of Economic Power• Wealth Creation and Distribution• Increasing Gross National Product and Per Capita

Income• Improvement in the Standard of Living• Promotes Country's Export Trade• Induces Backward and Forward Linkages• Facilitates Overall Development

10 Qualities of a Successful Entrepreneur

Disciplined Confidence Open Minded Self Starter Competitive Creativity Determination Strong people skills Strong work ethic Passion

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Entrepreneurship has traditionally been defined as the process of designing, launching and running a new business, which typically begins as a small business, such as a start-up company, offering a product, process or service for sale or hire

The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new business.

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Characteristics of Entrepreneurship:

1. Economic and dynamic activity:Entrepreneurship is an economic activity because it involves the creation and operation of an enterprise with a view to creating value or wealth by ensuring optimum utilisation of scarce resources. Since this value creation activity is performed continuously in the midst of uncertain business environment, therefore, entrepreneurship is regarded as a dynamic force.2. Related to innovation:Entrepreneurship involves a continuous search for new ideas. Entrepreneurship compels an individual to continuously evaluate the existing modes of business operations so that more efficient and effective systems can be evolved and adopted. In other words, entrepreneurship is a continuous effort for synergy (optimization of performance) in organizations.

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3. Profit potential:“Profit potential is the likely level of return or compensation to the entrepreneur for taking on the risk of developing an idea into an actual business venture.” Without profit potential, the efforts of entrepreneurs would remain only an abstract and a theoretical leisure activity.

4. Risk bearing:The essence of entrepreneurship is the ‘willingness to assume risk’ arising out of the creation and implementation of new ideas. New ideas are always tentative and their results may not be instantaneous and positive.

An entrepreneur has to have patience to see his efforts bear fruit. In the intervening period (time gap between the conception and implementation of an idea and its results), an entrepreneur has to assume risk. If an entrepreneur does not have the willingness to assume risk, entrepreneurship would never succeed.

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Entrepreneurship is a process, a journey, not the destination; a means, not an end. To establish and run an enterprise it is divided into three parts – the entrepreneurial job, the promotion, and the operation. Entrepreneurial job is restricted to two steps, i.e., generation of an idea and preparation of feasibility report. In this article, we shall restrict ourselves to only these two aspects of entrepreneurial process.

Entrepreneurial Process:

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Entrepreneurial process

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Steps of Entrepreneurial process

Deciding

Recognizing

Developing

ManagingMoving

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Factors Affecting Entrepreneurial Growth / Entrepreneurial Environment

(1). Economic Factor:(a). Markets:The size are composition of market both influence entrepreneurship in their own ways. Practically, monopoly in a particular product in the market becomes more influential for entrepreneurship than a competitive market. (b). Capital:Availability of capital help to bring together the labour at one, machine of another and raw material of yet another to combine them to produce product.

Factors Affecting Entrepreneurial Growth / Entrepreneurial Environment

(1). Economic Factor:(c). Labour:Labour is the most important factor of economic condition of entrepreneurship. It appears that the labour problem can’t protect entrepreneurship from emerging. (d). Raw materials:Without raw materials business can’t be started, because production isn’t possible. (e). Industrial policy:It includes rules, incentives. (f). Fiscal policy:It include tax, vat.

Factors Affecting Entrepreneurial Growth / Entrepreneurial Environment

(2). Social Factors:Social environment in a country exercises a significant impact on the emergence of entrepreneurship. The main components at social environment are as follows:- (a). Social Mobility:It means the people of society transfers from one place to another exchange culture, attitude etc. If mobility is positive then growth is also positive. (b). Security:Entrepreneurship security is an important facilitator of entrepreneurial behaviour. Insecurity doesn’t hinder entrepreneurship, but rather that different kinds of insecurity will result in different kinds of entrepreneurship.

Factors Affecting Entrepreneurial Growth / Entrepreneurial Environment

(a). Political stability:(b). Political ideology of government:Political ideology of government influences the development of entrepreneurship. It political ideology is favourable to bus growth then entrepreneurship takes new initiative to from business. (c). Nature of change in political ideology:Due to the change of government the political ideology also changes again and again. As a result new sectors arise by declining the previous sectors.

4). Psychological Factor:Many entrepreneurial theorists have propounded theories of entrepreneurship that concentrate especially spontaneously psychological factors. These factors are following:(a) Need for achievement:Need for achievement motivate to enhance business tasks for success. It is psychological power. (b) Perception and motivation:Eternally support entrepreneurial behaviour. Especially perception and motivation with positive forces to enter into business. (c). Learning and personality:More learning about business increases business efficiency. Different personality including reformist, innovator, ret realists, retails affect business

Entrepreneurship Development Programmes: Meaning, Need and Objectives of EDP

Meaning:As the term itself denotes, EDP is a programme meant to develop entrepreneurial abilities among the people. In other words, it refers to inculcation, development, and polishing of entrepreneurial skills into a person needed to establish and successfully run his / her enterprise. Thus, the concept of entrepreneurship development programme involves equipping a person with the required skills and knowledge needed for starting and running the enterprise.

Objectives of EDP:

• Develop and strengthen the entrepreneurial quality, i.e. motivation or need for achievement.

• Analyse environmental set up relating to small industry and small business.

• Select the product.• Formulate proposal for the product.• Understand the process and procedure involved in setting up a

small enterprise.• Know the sources of help and support available for starting a

small scale industry.• Acquire the necessary managerial skills required to run a small-

scale industry.• Know the pros and cons in becoming an entrepreneur.• Appreciate the needed entrepreneurial discipline.

Need for EDPs:

• Creates Employment Opportunities• Helps in Achieving Balanced Regional Development• Prevents Industrial Slums• Use of local Resources• Easing Social Tension• Economic Independence• Improves the standard of living • Helps in the overall development of the nation

Entrepreneurship Development Institute of India

• The Entrepreneurship Development Institute of India (EDI), an autonomous and not-for-profit institute, set up in 1983, is sponsored by the IDBI BANK LTD., IFCI Ltd., ICICI Ltd. and STATE BANK OF INDIA (SBI). The government of Gujarat pledged twenty-three acres of land on which stands the EDI campus.

Courses:• Post Graduate Diploma in Management - Development Studies (PGDM-

DS) [1] Post Graduate Diploma in Management – Development Studies is designed as a broad and multi-disciplinary focused programme to equip students with knowledge, analytical and conceptual skills of social and economic development.

• Post Graduate Diploma in Management - Business Entrepreneurship (PGDM-BE) The PGDM–BE two-year, full-time, residential programme at the EDI, has been designed for entrepreneurs and entrepreneurial managers.