introduction to entrepreneurship and business opportunities

Introduction to Entrepreneurship and Business

Opportunities

What does entrepreneurship involve?

Wealth Creation

New Venture Management

Innovation

Creativity

Risk Taking

What is entrepreneurship ?

It is the process of creating something newby devoting...by assuming certain ... risksand receiving some ... rewards


“It is the process of creating something new, with value, by devoting the necessary time and effort

assuming the accompanying financial, psychic, and social risks,

and receiving rewards of monetary and personal satisfaction and independence”

Hisrich and Peters, Entrepreneurship, pg 10


“It is the process of creating something new, with value, by devoting the necessary time and effort

assuming the accompanying financial, psychic, and social risks,

and receiving rewards of monetary and personal satisfaction and independence”

Hisrich and Peters, Entrepreneurship, pg 10

CREATING VALUE


Delivering Value to Customers who are

willing to Pay an amount which covers your Costs

When does a person become an entrepreneur?

Let's list some of these conditions or events.

What is Entrepreneurship ?

A pursuit of the opportunities regardless of the resources.

Harvard Business School




THE OPPORTUNITY




LEVERAGING RESOURCES


A pursuit of the opportunities regardless of the resources


An entrepreneur is opportunity-obsessed

with the goal of creating value

without regard to resources currently controlled.

Stanford University


Opportunity identification

Leveraging resources

Value creation

How to spot an opportunity ?

“Solving a problem”

many entrepreneurs

How to spot an opportunity ?

“Solving a problem”

many entrepreneurs

Vinod Khosla's clip (30 sec.)

http://edcorner.stanford.edu/authorMaterialInfo.html?mid=26


Sources of Business Opportunities

Change as a source of business opportunities

Sources of Business Opportunities

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The big company

versus

The start-up

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The big company vs. the start-up

Established companies (incumbent players) have

products or servicessmooth operationsestablished business models loyal set of customersfunctional teams ……

20


Start-ups have

passionhunger to growlower costslack of hierarchyflexibilityeligibility for certain funding schemes...

21


Established companies (incumbent players) – they have products or services, smooth operations, established business models, loyal set of customers, functional teams ……

Start-ups have passion, hunger to grow, lower costs, lack of hierarchy and flexibility, eligibility for certain funding schemes...

22

Change as a Source of Opportunity

Status-quo is good for incumbent players

Change brings in disruption – that in consumer tastes, cost structures, business models, expectations, level of expertise needed, distribution channels, payment mechanisms, availability of finance

23

Change as a Source of Opportunity

Status-quo is good for incumbent players

Change brings in disruption – that in consumer tastes, cost structures, business models, expectations, level of expertise needed, distribution channels, payment mechanisms, availability of finance

Change produces a level-playing field which is actually loaded in favour of a new player because of its flexibility, adaptiveness

24

Examples of Entrepreneurs Exploiting Change

Chaudhry Raghavendra Singh

21 colonies including

Greater Kailash, South Extension and Hauz Khas

http://in.rediff.com/money/2006/apr/08forbes.htm

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Broad Categories of Change

Demographic

Economic

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Broad Categories of Change

Demographic

Economic

Socio-cultural

Technological

Political

Legal and Regulatory

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Median age

Working population as the % of total population

Life expectancy

Health-care needs

Urban-rural ratio

Literacy

Male-female ratio

Demographic Changes

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Economic Changes

Gross Domestic Product and Per Capita Income

Availability of credit at all levels

Size of the middle class

Level of exports and imports

Inflation and interest rates

Various growth rates – industrial growth, productivity growth, exports growth

Level of unemployment

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Value systems – globalization and local assertions

Accepted norms of behaviour

Role of religion and spirituality

Pursuit of expertise, knowledge, wealth, possessionsMeasure of “time” – attention span, priorities, conveniences

Socio-Cultural Changes

30

Technological Changes

Availability and wide-spread assimilation of technology

Information Technology and it pervasiveness

Costs and disposable incomes

Performance, variety, ease of acquisition

Cross applications – interdisciplinary developments

Comfort level of technology usage

Examples: CD ROM drives and mobile phones

31

Transition from centrally planned to market economy (India, 1991)

Transition from communism to “market socialism” (China, 1978-80)

IPR laws

Labour reforms

Political and Regulatory Changes

32

Analyze all the changes that are happening in the target market

Estimate the time constants of change – fast or slow

Worry about the fickleness of customer tastes (esp. fashions, movies)

Make reasonable guesses

Validate your hypotheses at each stage as new field data arises

Study human psychology or consumer behaviour

Entrepreneur as a Visionary must Anticipate

A

B

33

Analyze all the changes that are happening in the target market

Estimate the time constants of change – fast or slow

Worry about the fickleness of customer tastes (esp. fashions, movies)

Make reasonable guesses

Validate your hypotheses at each stage as new field data arises

Study human psychology or consumer behaviour

Entrepreneur as a Visionary must Anticipate

A

B

Jeff Hawkins' clip 3.50 min






34

Examples of Entrepreneurs Exploiting Change

“Ted's mind is always 5 to 10 years down the road. Right now he's probably living in 1995”

Ted Turner, founder of CNN, about whom this was said in 1985.


What are the stages from an idea onwards?

An introduction to entrepreneurship

Idea > Prototype > Development > Scale-up


Functional areas: ????


Functional areas

Service/technology developmentHRFinanceStrategyMarketing

Function-timeframe matrix

LiquidityPrototype Development Scale-upIdea

Strategy

Mktg

HR

Finance

Service/Technology

What is entrepreneurship?

The entrepreneurial process will create a better world.

It's not just about new companies, capital and job formation, norinnovation, nor creativity, nor breakthroughs.

It is also about fostering an ingenious human spirit and improvinghumankind.

Jeffry A Timmons, Franklin W. Olin Distinguished Professor ofEntrepreneurship, Babson College

41

Assignment:

Groups of 3, ie 12 groups. Each group to receive Rs. 50.Spend the rest of today's class planning what you are going to do with this money.

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Assignment:


Friday afternoon is allocated for you to make your sales. Group Supervisor (moderator) commits to issuing receipts in case that is required for your customers.

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Assignment:


Friday afternoon is allocated for you to make your sales. Group Supervisor (moderator) commits to issuing receipts in case that is required for your customers.

Saturday morning: come and tell us what you did and how much you earned. You can keep the extra money that you made.

44

Assignment:


Friday afternoon is allocated for you to make your sales. Group Supervisor (moderator) will issue receipts in case that is required for your customers.

Saturday morning: come and tell us what you did and how much you earned. You can keep the extra money that you made.

In case you didn't try to make money, you must return the Rs. 50/-.


Credits

Entrepreneurship, 5th Edition, 2002D. Hisrich and M. P. Peters

Stanford Technologies Venture Program (STVP)

introduction to entrepreneurship and business opportunities

Documents