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Entrepreneurship

Prof. Pradip Kumar Ghosh 1

The Concept

Entrepreneur is a French word borrowed in English

First used in 1723, today the term entrepreneur implies qualities of leadership, initiative and innovation in new venture design.

Economist Robert Reich has called team-building, leadership, and management ability essential qualities for the entrepreneur.

Economists Adam Smith / Joseph Schumpeter also worked on this concept.

Today the subject is studied as a part of Management Education

Any one who exhibits some fundamental characteristics like self-development, creativity, self decision making, risk taking, vision of the future and leadership skills are said to have Entrepreneurial traits


The Process

Create

New Venture

Product

Or Market

Gather Resource

Persuade Others to Join

Establish a Vision

Identify an Opportunity


Psychological Factors

• Need Hierarchy

• Motivational Theories

• Two types of Motivational factors • Internal factors : Education Back ground, Experience, Desire to do something

new

• External factors : government assistance, availability of raw material and labour, encouragement fro business houses or trade associations, promising demand for the product


Social Factors

Family History

Community background

Educational background

Financial support from immediate family and friends

Government encouragement Policy level

Financing level

Tax level

Infrastructure level

Peer Pressure and Peer View

Reward and recognition


Qualities / Characteristics of an Entrepreneur

Self-Confidence Positivity Ability to take calculated risk ( moderated risk ) Flexibility and ability to adapt to changes Knowledge of market Awareness of the technology Independent minded Energetic Creative Innovative Dynamic Leadership Resourceful Responsiveness to Criticism Responsiveness to Suggestion Ability to get along with others


Motivational Theories

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Barriers to Entrepreneurship

• Personal barriers • Lack of confidence

• Dependability on others ( i.e. need to delegate )

• Lack of Motivation

• Lack of patience

• Inability to dream

• Lac of attractiveness ( other opportunities )

• Social barriers• Lack of family support

• Community background


Intrapreneurship

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Risk Taking Behavior

• There are three types of risks:• Risks as variance, Downside Risks ( Sinking the Boat) and Risk as Opportunity

cost ( Missing the Boat)

• Entrepreneurship risk is mostly Downside Risk • Financial

• Managerial

• Personal


Sample Questions

Can you take risks with money, that is, invest, and not know the outcome?

Do you take an umbrella with you every time you travel? A hot water bottle? A Thermometer?

If you’re frightened of something, will you try to conquer the fear?

Do you like trying new foods, new places, and totally new experiences?

Do you need to know the answer before you’ll ask the question?

Have you taken a risk in the last six months?

Can you walk up to a total stranger and strike up a conversation ?

Have you ever intentionally traveled an unfamiliar route?

Do you need to know that it’s been done already before you’re willing to try it?

Have you ever gone out on a blind date?


Lateral thinking problems


Can you make an Egg

stand on the table ?

There are two ways :

The Hard way

And the easy way

Lateral ThinkingProblem : Perception

You are driving down the road in your car on a wild, stormy night, when you pass by a bus stop and you see three people waiting for the bus:

1. An old lady who looks as if she is about to die.2. An old friend who once saved your life.

3. The perfect partner you have been dreaming about.

Knowing that there can only be one passenger in your car, whom would you choose?


Lateral ThinkingProblem : Perception

Acting on an anonymous phone call, the police raid a house to arrest a suspected murderer. They don't know what he looks like but they know his name is John and that he is inside the house. The police bust in on a carpenter, a lorry driver, a mechanic and a fireman all playing poker.

Without hesitation or communication of any kind, they immediately arrest the fireman.

How do they know they've got their man?


Problem : Fact

Many shops have prices set just under a round figure, e.g. Rs. 9.99 instead of Rs. 10.00.

It is assumed that this is done because the price seems lower to the consumer. But this is not the reason the practice started.

What was the original reason for this pricing method?


Lateral ThinkingProblem : Missing Info or twist of words

A man buys rice at 30 Rs a KG from Andhra Pradesh growers and sellsthem at 5 Rs a KG in Bengal.

As a result of this he becomes a millionaire.

How come?


Problem : Fanciful

A woman has incontrovertible proof in court that her husband was murdered by her sister. Both the woman and her sister are before the Judge. The judge declares, "This is the strangest case I've ever seen. Though it's a cut-and-dried case, this woman before me cannot be punished."

How can this possibly be?


entrepreneurship - professorpk.com · we have separate presentation for the same prof. pradip kumar...

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