Download - Entrepreneurship Session 1 -7
-
8/13/2019 Entrepreneurship Session 1 -7
1/97
Taking the Road to Entrepreneurship
Develop an understanding of entrepreneurship
Self analysis mindset & skills
Defining & knowing the traits of successful
entrepreneur
Examine timing & funding availability
-
8/13/2019 Entrepreneurship Session 1 -7
2/97
Taking the Road to Entrepreneurship
Develop business concept.
Test it against social, political, financial &
economic realities.
Develop a comprehensive business plan.
-
8/13/2019 Entrepreneurship Session 1 -7
3/97
Understanding Entrepreneurship :
The Age Of Entrepreneur
Exciting
Challenging
Ever changing
Everyday brings new obstacles/rewards
-
8/13/2019 Entrepreneurship Session 1 -7
4/97
Understanding Entrepreneurship
Owning a business
Knowing how the business works
Planning a business carefully and knowing ones
personal qualities differentiates winners from losers
+ Todayseconomic climate encourage & nurture Eship
- Downsizing / Outsourcing / Restructuring
-
8/13/2019 Entrepreneurship Session 1 -7
5/97
small is beautiful.
What is E-commerce?
What are virtual companies?
Small companies are tapping into global markets
According to research small companies
respond quickly to change (competitive edge over
large companies)
-
8/13/2019 Entrepreneurship Session 1 -7
6/97
small is beautiful.
Economic future rests largely on growth of small
businesses.
How much employment do they provide?
What is their contribution to sales?
How many new jobs created?
-
8/13/2019 Entrepreneurship Session 1 -7
7/97
Fashion Entrepreneurship
In fashion retail, change is a constant
Back to front(whole class)
Being conditioned to change will prepare you to
succeed in business world
Entrepreneurship or business (job) knowledge
of all aspects of business is very important
-
8/13/2019 Entrepreneurship Session 1 -7
8/97
What is the future of the fashion industry?
What trends and issues are having an impact on
the direction of entrepreneurial business in
apparel & accessories?
Fashion Entrepreneurship
-
8/13/2019 Entrepreneurship Session 1 -7
9/97
In todayscompetitive market place, only those will
survive who
Reinvent themselves enough times and with
enough flexibility and resources to anticipate, not
manipulate, the 21stcentury customer.
THERESJUST NO OTHER WAY!!!!
Fashion Entrepreneurship
-
8/13/2019 Entrepreneurship Session 1 -7
10/97
Not just recognise.anticipate consumer needs &
wants..if you want to reap rewards
Consumer trend watching has become as
important as fashion trend watching
e.g. Casual dressing in the workplace
Lack of interest in apparel quality
Fashion Entrepreneurship
-
8/13/2019 Entrepreneurship Session 1 -7
11/97
What is Entrepreneur?
Is it someone
One who creates a product on his own account?
What if Mukesh takes Ratansproduct and makes
it a success?
Is it an individual who starts a businesswhich
means if a business is no longer in the start-up
phase, it wouldntbe entrepreneurial any more.
-
8/13/2019 Entrepreneurship Session 1 -7
12/97
The International Society of Entrepreneur defines
an Entrepreneur as :
Aperson who organises and manages a business
undertaking, assuming all risk for the sake of
profit
Definition by Oxford English dictionary
Entrepreneur is one who undertakes an
enterprise..especially a contractor acting as an
intermediary between capital labour.
What is Entrepreneur?
-
8/13/2019 Entrepreneurship Session 1 -7
13/97
Entrepreneur is the agent who buys means of
production at certain prices in order to combine
them into a product that he is going to sell at
prices that are uncertain at the moment at which
he commits himself to his costs(FARMER)
- An entrepreneur may start a new enterprise.
- He may acquire a franchisee
What is Entrepreneur?
-
8/13/2019 Entrepreneurship Session 1 -7
14/97
An Entrepreneur recognises opportunity
Gauges its value and the resources required to
convert the opportunity into success
Has the vision of how the business will grow
Has the drive to make it happen
What is Entrepreneur?
-
8/13/2019 Entrepreneurship Session 1 -7
15/97
An Entrepreneur always looks for better and
innovative ways
to find new markets,
to add to an existing product line
They move with the times.better still, they
move before the times
What is Entrepreneur?
-
8/13/2019 Entrepreneurship Session 1 -7
16/97
you are futurist you anticipate & embrace change
you see outsidethe box
you persevere and are not easily defeated
You thrive in a challenging environment
You have a tremendous need to be in control
What is Entrepreneur?
-
8/13/2019 Entrepreneurship Session 1 -7
17/97
you take calculated risks & welcome responsibility
You are absolutely passionate about what you do
Is there anyone in this class who qualifies for the
position of an entrepreneur?
What is Entrepreneur?
-
8/13/2019 Entrepreneurship Session 1 -7
18/97
Do you have what it takes.
It requires a flair for 4Ps
Do you know what will sell?
Retail Industry is both people oriented as well as
service oriented
Are you ready to juggle satisfied as well as
unsatisfied customers?
-
8/13/2019 Entrepreneurship Session 1 -7
19/97
What is Entrepreneurship?
Entrepreneurship involves combining factors of
production to initiate changes and it is
discontinuous phenomenon
-
8/13/2019 Entrepreneurship Session 1 -7
20/97
There are economic & non-economic factors affecting
Entrepreneurship
Non-Economic factors:
Political ideology
Legal structure
Social mobility
Psychological factors
(need achievement)
Cultural factors
Economic factors:
Market incentives
Availability of capital
-
8/13/2019 Entrepreneurship Session 1 -7
21/97
Entrepreneurship brings with it..
Opportunity to meet new people
Travel for business
Develop successful business teams
Financial success
Independence from working for someone else
-
8/13/2019 Entrepreneurship Session 1 -7
22/97
Traits of successful Entrepreneur
Self SWOT (class)
Talent Vs. Skills
-
8/13/2019 Entrepreneurship Session 1 -7
23/97
Passion/Desire
When one is passionate, tasks seem relatively
timeless & effortless.
Launching a new venture requires long hours &
many challenges.
Traits of successful Entrepreneur
-
8/13/2019 Entrepreneurship Session 1 -7
24/97
Determination/Perseverance
It takes 4-5 years before money starts rolling in
& hours decrease to a manageable levels
Entrepreneurs WANT to succeed and do not give
up easily, EVEN WHEN IT MAY BE WISE TO DO SO
YOU figure out the path to reach your goal &
challenge all obstacles
Traits of successful Entrepreneur
-
8/13/2019 Entrepreneurship Session 1 -7
25/97
Responsibility
For yourself, your employees & your business
E.g. incorrect style no. wrong price many
corrective actions fire employee.TRAINING
COST
Re-label to original PO.STOP PRODUCTION
Send jackets back to factory..BOTHERATION/
REPUTATION
Traits of successful Entrepreneur
-
8/13/2019 Entrepreneurship Session 1 -7
26/97
HEALTH & ENERGY
Starting biz requires tremendous amount of
energy
Health affects onesability to think clearly and to
handle situations in a controlled manner
Customers & employees need to know that you
have the stamina & skills to handle any situation
Traits of successful Entrepreneur
-
8/13/2019 Entrepreneurship Session 1 -7
27/97
-
8/13/2019 Entrepreneurship Session 1 -7
28/97
1. An unusual creativity level
2. A propensity of risk-taking
3. A strong need for achievement
4. Total commitment, determination &
perseverance
5. Drive to achieve and grow
Traits of successful Entrepreneur
-
8/13/2019 Entrepreneurship Session 1 -7
29/97
6. Opportunity and goal orientation
7. Taking initiative & personal responsibility
8. Persistent problem solving
9. Realism and a sense of humour
10. Seeking and using feedback
11. Internal locus of control
Traits of successful Entrepreneur
-
8/13/2019 Entrepreneurship Session 1 -7
30/97
12. Calculated risk taking and risk seeking
13. Low need for status & power
14. Integrity & reliability
15. Keen observation
16. Ability of discrimination
17. Tact & patience
Traits of successful Entrepreneur
-
8/13/2019 Entrepreneurship Session 1 -7
31/97
18. Mentally alert
19. Good judge of human nature
20. Good leader
21. Willing to change
22. Vision & foresight
Traits of successful Entrepreneur
-
8/13/2019 Entrepreneurship Session 1 -7
32/97
Functions of an Entrepreneur
1. Perceiving market opportunities
2. Gaining command over scarce resources
3. Purchasing inputs
4. Marketing of products & responding to
competition5. Dealing with concessions / licences / taxes
-
8/13/2019 Entrepreneurship Session 1 -7
33/97
Functions of an Entrepreneur
6. HRM
7. CRM
8. Vendor development/management
9. Managing finance
10. Managing production
-
8/13/2019 Entrepreneurship Session 1 -7
34/97
11. Acquiring & overseeing assembly of factory
12. Industrial engineering
13. Upgrading process & product quality
14. Introducing new production techniques &
products
Functions of an Entrepreneur
-
8/13/2019 Entrepreneurship Session 1 -7
35/97
Types of Entrepreneurs
1. Innovating entrepreneurs
2. Adoptive or imitating entrepreneurs
3. Fabian entrepreneurs cautious/sceptical +
shy/lazy
4. Drone entrepreneurs laggards
-
8/13/2019 Entrepreneurship Session 1 -7
36/97
Entrepreneurs Vs. Managers
1. Innovation
2. Risk taking
3. Reward
4. Skills (intuition, creative, innovative,
managerial)
5. Status (self-employed, salaried)
6. Response to authority
-
8/13/2019 Entrepreneurship Session 1 -7
37/97
Barriers to Entrepreneurship
1. Lack of a viable concept
2. Lack of market knowledge
3. Lack of technical skills
4. Lack of seed capital
5. Lack of business know how
6. Complacency lack of motivation
-
8/13/2019 Entrepreneurship Session 1 -7
38/97
7. Social stigma
8. Time pressures & distractions
9. Legal constraints & regulations
10. Monopoly & protectionism
11. Inhibitions due to patents
Barriers to Entrepreneurship
-
8/13/2019 Entrepreneurship Session 1 -7
39/97
-
8/13/2019 Entrepreneurship Session 1 -7
40/97
Being The Boss
Unfortunately, it is one of the more
insidious of the bunch
the reality is that one's customers and
suppliers direct where most entrepreneurs
time and money is spent
Other bosses also include the bank,
investors, staff and vendors
-
8/13/2019 Entrepreneurship Session 1 -7
41/97
Getting Rich
Quicksome entrepreneurs make a lot of money
very quickly- but most don't!
Those who do, we fail to see the years of
work behind the supposed short term
success
Eship is a way to build wealth, but usually
over the long term.
most successful business owners don't see
significant growth until year 5, or even year
-
8/13/2019 Entrepreneurship Session 1 -7
42/97
start-ups cannot be funded with debt
the fact is that debt is more prevalent than
equity.
Therefore, for those with solid plans,
source of finance does not matter, provided
the vision and the plan is clear for the future
of the business.
-
8/13/2019 Entrepreneurship Session 1 -7
43/97
-
8/13/2019 Entrepreneurship Session 1 -7
44/97
People start in very attractive
industries
not true at all
Many entrepreneurs have actually been
seen to go to the worse industries there are
They actually pick the areas they will most
likely fail!
-
8/13/2019 Entrepreneurship Session 1 -7
45/97
talents & abilities of the entrepreneur
alone can ensure success
not true
the general factors outweigh the
qualifications of an entrepreneur
An entrepreneur has to look further than his
talent to survive
-
8/13/2019 Entrepreneurship Session 1 -7
46/97
Most entrepreneurs are successful
financially
another myth
Eship creates a lot of wealth, but it is very
unevenly distributed
Only the top 10% of entrepreneurs earn
more money than employees
typical entrepreneur earns lesser money
than a salaried person
-
8/13/2019 Entrepreneurship Session 1 -7
47/97
-
8/13/2019 Entrepreneurship Session 1 -7
48/97
-
8/13/2019 Entrepreneurship Session 1 -7
49/97
I'm not a born Entrepreneur!
Neither is Bill Gates or Steve Jobs!
Eship success doesnt necessarily runs in
the blood
Some people succeed their parents'business so well, because they learn eship
skills since young
They mix with successful entrepreneurs
your Net-Work is your Net-Worth!
-
8/13/2019 Entrepreneurship Session 1 -7
50/97
It takes a lot of money to finance a
new business
design the businesses to work with little cash
borrow instead of paying for things
rent instead of buy
turn fixed costs into variable costs by, say,
paying people commissions instead of salaries
Use little resources to make the most out of it
-
8/13/2019 Entrepreneurship Session 1 -7
51/97
-
8/13/2019 Entrepreneurship Session 1 -7
52/97
You can be an Entrepreneur only if
you are rich
people who are not privileged continue tomake it big even after starting from scratch
with no special favours or advantages
you can start part-time, and set aside a
certain amount of money for your business
investmentMany people say that they will start a
business when they are rich, but most dont!
The never have the mone to do so
-
8/13/2019 Entrepreneurship Session 1 -7
53/97
IMPORTANCE OF ENTREPRENEUR
-
8/13/2019 Entrepreneurship Session 1 -7
54/97
They increase per capita output and income
They initiate and constitute change in the
structure of business & society
Entrepreneur innovates, develops new
products/services for the market
Stimulate investment interest in new ventures
They play a key role in economic
development of an area
-
8/13/2019 Entrepreneurship Session 1 -7
55/97
Entrepreneurs produce solutions that fly in
the face of established knowledge, and they
always challenge the status quo.
They are risk-takers who pursue
opportunities that others may fail to recognize
or may even view as problems or threats.
-
8/13/2019 Entrepreneurship Session 1 -7
56/97
Eship is associated with change, creativity,
knowledge, innovation and flexibility - factors
that are increasingly important sources of
competitiveness in an increasingly globalizedworld economy
-
8/13/2019 Entrepreneurship Session 1 -7
57/97
-
8/13/2019 Entrepreneurship Session 1 -7
58/97
SOURCES OF NEW IDEAS
-
8/13/2019 Entrepreneurship Session 1 -7
59/97
1. Consumers
2. Existing products & services
3. Distribution channels
4. Government
5. Research & development
SOURCES OF NEW IDEAS
-
8/13/2019 Entrepreneurship Session 1 -7
60/97
-
8/13/2019 Entrepreneurship Session 1 -7
61/97
SOURCES OF NEW IDEAS
-
8/13/2019 Entrepreneurship Session 1 -7
62/97
3. Distribution channels
Members of supply chain source for new
ideasfamiliarity with needs of the market
They have suggestions for completely new
productThey also help in marketing of new products
SOURCES OF NEW IDEAS
SOURCES OF NEW IDEAS
-
8/13/2019 Entrepreneurship Session 1 -7
63/97
4. Government
Files of patent officenew product
possibilities
Patent may not be feasible but good
fodder for ideating
Patent office also lists all patents available for
sale
Also lists government owned patents
SOURCES OF NEW IDEAS
SOURCES OF NEW IDEAS
-
8/13/2019 Entrepreneurship Session 1 -7
64/97
5. Research & Development
May be a formal endeavour connected with
your current employment
could be an informal lab in a basement or a
garage
SOURCES OF NEW IDEAS
-
8/13/2019 Entrepreneurship Session 1 -7
65/97
s
Methods of Generating New Ideas
Methods of Generating New Ideas
-
8/13/2019 Entrepreneurship Session 1 -7
66/97
1. Focus Groups
2. Brain Storming
3. Problem Inventory Analysis
Methods of Generating New Ideas
Methods of Generating New Ideas
-
8/13/2019 Entrepreneurship Session 1 -7
67/97
1. Focus Groups [groups of individuals
providing information in a structured format]
Since 1950s
Group + moderator open in-depth
discussion
For new products may have directive or
non-directive manner8 to 14 participants
Methods of Generating New Ideas
Methods of Generating New Ideas
-
8/13/2019 Entrepreneurship Session 1 -7
68/97
1. Focus Groups
The group is stimulated by comments from
its members in creative conceptualising and
developing a new product idea to fulfil a
market need.
E.g. Lined wind cheater, driving gloves for
ladies
Methods of Generating New Ideas
Methods of Generating New Ideas
-
8/13/2019 Entrepreneurship Session 1 -7
69/97
1. Focus Groups
Basis of advertising message may also come
from the group
Focus group is an excellent method for
initially screening ideas & concepts
The results can be analysed quantitatively
Methods of Generating New Ideas
-
8/13/2019 Entrepreneurship Session 1 -7
70/97
Methods of Generating New Ideas
-
8/13/2019 Entrepreneurship Session 1 -7
71/97
2. Brain Storming
Methods of Generating New Ideas
Rules to be followed:
a. NO criticism is allowed by anyone in the
group/ NO negative comments
b. Freewheeling is encouragedthe wilder the
ideabetter!c. Quantity of ideas is desiredmore the
better!
Methods of Generating New Ideas
-
8/13/2019 Entrepreneurship Session 1 -7
72/97
2. Brain Storming
Methods of Generating New Ideas
Rules to be followed:
d. Combinations & improvements of ideas are
encouraged; ideas of others can be used to
produce further new ideas
Session should be fun/no dominance/noinhibitions
Methods of Generating New Ideas
-
8/13/2019 Entrepreneurship Session 1 -7
73/97
3. Problem inventory analysis [a method for
obtaining new ideas and solutions byfocusing on problems]
Methods of Generating New Ideas
Analogous to focus groups
Consumers are provided with a list of
problems in a general product category
Consumers identify and discuss products in
this category that have the particular problem
Methods of Generating New Ideas
-
8/13/2019 Entrepreneurship Session 1 -7
74/97
3. Problem inventory analysis
Methods of Generating New Ideas
This method is often effective since it is
EASIERto relate known products to suggested
problems and arrive at a new product idea than
to generate an entirely new product idea
Can also be used to test a new product ideaList of problems is developed consumers
associate products with problem
-
8/13/2019 Entrepreneurship Session 1 -7
75/97
-
8/13/2019 Entrepreneurship Session 1 -7
76/97
Opportunity Recognition
-
8/13/2019 Entrepreneurship Session 1 -7
77/97
pp y g
Entrepreneur should have relevant knowledge
and desire to understand and make use of it
Other important factor entrepreneurial
alertness and entrepreneurial networks
There is an interaction effect between
entrepreneurial alertness & entrepreneursprior
knowledge of markets & customer problems
Opportunity Recognition
-
8/13/2019 Entrepreneurship Session 1 -7
78/97
pp y g
Entrepreneur who can recognise opportunity
is in a strategic position to successfully
complete the product planning & development
process and successfully launch new ventures
-
8/13/2019 Entrepreneurship Session 1 -7
79/97
What is the business plan?
-
8/13/2019 Entrepreneurship Session 1 -7
80/97
p
Itsa written doc.
It describes all external/internal elements
involved in start-ups
Integration of marketing / finance / H.R./
Production plans
Addresses long term/short term decision
making
What is the business plan?
-
8/13/2019 Entrepreneurship Session 1 -7
81/97
p
Address the integration and coordination of
effective business objectives and strategies
Roadmap or gameplan
Where am in now?
Where am I going?
How will I get there?
3 Main Perspectives of B.P.
-
8/13/2019 Entrepreneurship Session 1 -7
82/97
p
1. Entrepreneurs perspective knows best the
creativity & technology involved in a new venture
2. Marketing perspective view the business
through the eyes of the customer
3. Investors perspective sound financial
projections are required
B i Pl F t
-
8/13/2019 Entrepreneurship Session 1 -7
83/97
Business Plan Format Background (Product description ,Industry
Description ,Customer description Situation analysis
Operations plan
Marketing Plan and Objectives4Ps/ 7Ps
Financial Plan and objectivesSource of Funds, Cost Benefit Analysis , Pay back period
Organization structure
-
8/13/2019 Entrepreneurship Session 1 -7
84/97
-
8/13/2019 Entrepreneurship Session 1 -7
85/97
Why some business plans fail?
-
8/13/2019 Entrepreneurship Session 1 -7
86/97
Unreasonable goals
Immeasurable goals
Entrepreneur has not made total commitment
to the business/family
Entrepreneur has no experience in the new
venture
Why some business plans fail?
-
8/13/2019 Entrepreneurship Session 1 -7
87/97
Entrepreneur has no sense of potential
threats/ weaknesses to the business
No customer need was established for the
proposed product/service
P d t D i ti
-
8/13/2019 Entrepreneurship Session 1 -7
88/97
Product Description
Consumer / Business
Convenience / Shopping / Specialty /
Unsought
Relevance
Differentiation
I d t D i ti
-
8/13/2019 Entrepreneurship Session 1 -7
89/97
Industry Description
History and Evolution of the Industry
Size of the Industry
Major Players
Supply chain
Major Growth centers
-
8/13/2019 Entrepreneurship Session 1 -7
90/97
-
8/13/2019 Entrepreneurship Session 1 -7
91/97
Understanding Customer
Behavioral
What do they buy
How much they buy
Where do they buy from
When do they buy
Who influences their buying
Situation Analysis
-
8/13/2019 Entrepreneurship Session 1 -7
92/97
y
Retailer
Demographic
Economic
Technological
Political
Customers
Companyresources
Vendor/Suppliers/Manufacturer
Competitors
-
8/13/2019 Entrepreneurship Session 1 -7
93/97
-
8/13/2019 Entrepreneurship Session 1 -7
94/97
An operational plan draws organization strategic
plans to describe organization missions and goals,program objectives, and activities.
Like a strategic plan, an operational plan
addresses four questions:
Where are we now?
Where do we want to be?
How do we get there?How do we measure our progress?
-
8/13/2019 Entrepreneurship Session 1 -7
95/97
Operational plans should contain:
Clear objectives,
Activities to be delivered,
Quality standards,
Desired outcomes,
Staffing and resource requirements,Implementation timetables,
a process for monitoring progress.
-
8/13/2019 Entrepreneurship Session 1 -7
96/97
The Operational Plan is the third part of thecompleted Strategic Plan.
It defines how to implement the action andmonitor the plans what are the capacity needs,
how resources will engage, how to deal with risks,
and how to ensure sustainability of the projects
achievements.
-
8/13/2019 Entrepreneurship Session 1 -7
97/97
WHY IS AN OPERATIONAL PLAN IMPORTANT?An Operational Plan ensures to successfully implement the
Action and Monitor the plans by getting the team to:
Prepare the project to raise funds, being clear about how toget the resources and prepare a convincing plan to reviewwith existing and potential donors.
Use resources efficiently, to help allocate scarce resourcesto the most critical gaps and needs.
Reduce risks where possible, and prepare contingencyplans where necessary.
Think about the long term future of the project, includinghow to ensure sustainability of your projects targets andimpacts.