entrepreneurship session 1 -7

8/13/2019 Entrepreneurship Session 1 -7

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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


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Taking the Road to Entrepreneurship

Develop business concept.

Test it against social, political, financial &

economic realities.

Develop a comprehensive business plan.


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Understanding Entrepreneurship :

The Age Of Entrepreneur

Exciting

Challenging

Ever changing

Everyday brings new obstacles/rewards


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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


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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)


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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?


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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


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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?



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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!!!!



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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



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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.


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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.



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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



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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



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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



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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



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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?



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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?


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What is Entrepreneurship?

Entrepreneurship involves combining factors of

production to initiate changes and it is

discontinuous phenomenon


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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


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Entrepreneurship brings with it..

Opportunity to meet new people

Travel for business

Develop successful business teams

Financial success

Independence from working for someone else


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Traits of successful Entrepreneur

Self SWOT (class)

Talent Vs. Skills


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Passion/Desire

When one is passionate, tasks seem relatively

timeless & effortless.

Launching a new venture requires long hours &

many challenges.



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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



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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



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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



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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



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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



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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



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18. Mentally alert

19. Good judge of human nature

20. Good leader

21. Willing to change

22. Vision & foresight



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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


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6. HRM

7. CRM

8. Vendor development/management

9. Managing finance

10. Managing production


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11. Acquiring & overseeing assembly of factory

12. Industrial engineering

13. Upgrading process & product quality

14. Introducing new production techniques &

products



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Types of Entrepreneurs

1. Innovating entrepreneurs

2. Adoptive or imitating entrepreneurs

3. Fabian entrepreneurs cautious/sceptical +

shy/lazy

4. Drone entrepreneurs laggards


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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


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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


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7. Social stigma

8. Time pressures & distractions

9. Legal constraints & regulations

10. Monopoly & protectionism

11. Inhibitions due to patents

Barriers to Entrepreneurship


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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


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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


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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.


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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!


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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


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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


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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!


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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


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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


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IMPORTANCE OF ENTREPRENEUR


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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


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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.


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Eship is associated with change, creativity,

knowledge, innovation and flexibility - factors

that are increasingly important sources of

competitiveness in an increasingly globalizedworld economy


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SOURCES OF NEW IDEAS


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1. Consumers

2. Existing products & services

3. Distribution channels

4. Government

5. Research & development



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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




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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




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5. Research & Development

May be a formal endeavour connected with

your current employment

could be an informal lab in a basement or a

garage



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s

Methods of Generating New Ideas



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1. Focus Groups

2. Brain Storming

3. Problem Inventory Analysis




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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




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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




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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



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2. Brain Storming


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!



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2. Brain Storming


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



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3. Problem inventory analysis [a method for

obtaining new ideas and solutions byfocusing on problems]


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



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3. Problem inventory analysis


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


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Opportunity Recognition


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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


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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


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What is the business plan?


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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?


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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.


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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


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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


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Why some business plans fail?


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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?


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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


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Product Description

Consumer / Business

Convenience / Shopping / Specialty /

Unsought

Relevance

Differentiation

I d t D i ti


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Industry Description

History and Evolution of the Industry

Size of the Industry

Major Players

Supply chain

Major Growth centers


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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


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y

Retailer

Demographic

Economic

Technological

Political

Customers

Companyresources

Vendor/Suppliers/Manufacturer

Competitors


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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?


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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.


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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.


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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.

entrepreneurship session 1 -7

Documents