INTRODUCTION

TO
ENTREPRENEURSHIP
 CHARACTERISTICS OF
SUCCESSFUL ENTREPRENEURS

 PASSIONATELY SEEK NEW OPPORTUNITIES

 PURSUE OPPORTUNITIES WITH ENORMOUS

DISCIPLINE

 PURSUE ONLY THE BEST OPPORTUNITIES

 ADAPTIVE EXECUTION

 SYNERGY IN ENERGY
 Entrepreneur

Entre + Prendre

An entrepreneur is a person who

habitually creates and innovates to
build something of recognized value
around perceived opportunities
 Entrepreneur Process Diagram

Using
Finding the
networks
required
extensively
resources

Financial,
Motivation Spotting & Overcoming Controlling Social,
to make a Exploiting Obstacles the Aesthetic
difference Opportunities Business Capital

Showing
determination Managing
in the face of Risk
adversity
 Entrepreneurship Process
The The Opportunity Spotter The Project Champion
Inventor

Exploiting the
Engaging opportunity
The Idea Realizing the the idea & to build
opportunity opportunity something of
value
 Napoleon's First Principle
Intel moved over from Memory
Chips to Integrated Chips
The first principle of a
general-in-chief is to
calculate what he must
do, to see if he has the
means to surmount the
obstacles with which
the enemy can oppose
him and, when he has
made his decision, to do
everything to overcome
them
 Napoleon's Second Principle
Bill Gates staved off competition
from Sun Microsystems, IBM,
Netscape, Linux and a host of other
competitors
A plan of campaign should
anticipate everything which
an enemy can do, and
contain within itself the
means of thwarting him.
Plans of campaign may be
infinitely modified
according to the
circumstances, the genius
of the commander, the
quality of the troops, and
the topography of the
theater of war
 Napoleon's Third Principle
Sam Walton used to regularly
visit Kmart, Woolco and other
retail chains and learn best
practices from them
Read over and over again the
campaigns of Alexander,
Hannibal, Caesar, Gustavus,
Turenne, Eugene,and Frederic.
Make them your models. This is
the only way to become a great
general and to master the
secrets of the art of war. With
your own genius enlightened by
this study, you will reject all
maxims opposed to those of
these great commanders
 Napoleon's Fourth Principle
Dhirubhai Ambani concentrated all
his resources to beat the bears that
tried to pull down the Reliance
Stock
When you have it in
contemplation to give
battle, it is a general rule to
collect all your strength
and to leave none
unemployed. One battalion
sometimes decides the issue
of the day
 Napoleon's Fifth Principle

The first qualification of a

general-in-chief is to
possess a cool head, so that
things may appear to him
in their true proportions
and as they really are .

IBM Chief Lou Gerstner

understood that IBM was losing
money in the product business and
moved over to services
 Napoleon's Sixth Principle

An irresolute general who

acts without principles and
without plan, even though
he lead an army
In the 60s, Kmart had 700 retail numerically superior to
stores when Walmart had that of the enemy, almost
7.Today Kmart has disappeared
while Walmart is the market always finds himself
leader. inferior to the latter on the
In the 90s, Daewoo was a fast field of battle
growing company while Samsung
had a shoddy doddy image.
Today, Daewoo has gone
bankrupt, Samsung is the market
leader in consumer durables.
Napoleon's Seventh Principle
The effect of discussions,
making a show of talent
and calling councils of war
will be what the effect of
those things has been in
every age: they will end in
the adoption of the most
pusillanimous or the
GE & Coca Cola
weathered through all
most prudent measures,
crisis in 100 years
which in war are almost
because their core uniformly the worst that
competence is strong. can be adopted. True
wisdom, so far as a general
Infosys & Wipro survived is concerned, consists in
the Dotcom Crash energetic determination
because of their strong
resolution.
 Napoleon's Eighth Principle
Infosys & Indus League has grown
because it has been set up by a
team of entrepreneurs.
It is exceptional and
difficult to find all the
qualities of a great
general combined in one
man. What is most
desirable and
distinguishes the
exceptional man, is the
balance of intelligence
and ability with
character or courage.
 Napoleon's Ninth Principle
Nothing is more
important in war than
unity in command.
When, therefore, you
are carrying on
hostilities against a
Indiainfo could not grow single power only, you
as their promoters could should have but one
not agree on any issue.
army acting on one line
Rediff grew phenomenally and led by one
under the command of
Ajit Balakrishnan commander
Napoleon's Tenth Principle

The camps of the same

army should always be
so placed as to be able
to sustain each other.

When Tata Motors was in

trouble, Tata Finance bailed
them out and vice versa.
The problems with tringtring.com
lead to the collapse at Aptech
 Napoleon's Eleventh Principle
NIIT has a portal that allows the
employees to interact with each
other and also at the top level
It is not by harangues at
the moment of engaging
that soldiers are rendered
brave. Veterans hardly
listen to them and recruits
forget them at the first
discharge of a cannon. If
speeches and arguments
are at any time useful, it is
during the course of the
campaign by counteracting
false reports and causes of
discontent, maintaining a
proper spirit in the camp,
and furnishing subjects of
conversation in the
bivouacs.
 Napoleon's Twelfth Principle
GE has grown every year
because they manage to retain
the top talent.
You should by all means
encourage the soldiers to
continue in the service.
This you can easily do by
testifying great esteem for
old soldiers. The pay
should also be increased in
proportion to the years of
service. There is great
injustice in giving no
higher pay to a veteran
than to a recruit
Enterprise Creation & Development

Challenge of Entrepreneurship
 CHALLENGE OF
ENTREPRENEURSHIP
 Entrepreneurship in KBE
 Who is the Entrepreneur?
 What is the Entrepreneurial Process?
 Social Responsibilities
 Why be an Entrepreneur?
 Entrepreneurial Attributes
 Why businesses fail?
 Myths of Entrepreneurship
 Checklist for Aspiring Entrepreneurs
 Recommended Reading
 Donald F Kuratko and Richard M Hodgetts,
ENTREPRENEURSHIP – THEORY, PROCESS
AND PRACTICE, 6th Edition, 2003, Thomson
South-Western, Chapters 1, 2, 3, 4 and 6.
 Jeffry A Timmons and Stephen Spinelli, NEW
VENTURE CREATION – ENTREPRENEURSHIP
FOR THE 21ST CENTURY, 6TH Edition, 2003,
McGraw-Hill, Chapters 1, 2, 7, 8 and 10.
 Megginson, Byrd, Megginson - Small Business
Management, an entrepreneurs guidebook, 5th
edition, Chapter 1
 ENTREPRENEURSHIP :
AN EVOLVING CONCEPT

“Most of what you hear about entrepreneurship

is all wrong. It’s not magic; it’s not mysterious;
and it has nothing to do with genes. It’s a
discipline and, like any discipline, it can be
learned.”
Peter F. Drucker
Innovation and Entrepreneurship
KNOWLEDGE-BASED ECONOMY

“What does Bill Gates own ? No

land, no gold, no oil, no buildings,
no machines. What he does is that
he controls knowledge, which
makes him the wealthiest person
in the world.”
Lester Thurow
The Entrepreneurial Process involves
____, ________, and _________ an
opportunity by overcoming the strong
forces that resist the
creation of
something new.

.
 1. Identify and
evaluate the Opportunity
opportunity

2. Develop Business
Plan

3. Determine and
Entrepreneur
attract resources 4. Lead and manage
required resulting enterprise

Resources
Organisation
 Entrepreneurial Venture vs Small
Business
 Entrepreneurial Venture : __________ and
______
 Small Business : ____________ owned and
operated, is not dominant in its field, and
doesn’t engage in new or innovative
practices.
The Pyramid of Social Responsibility
Contribute resources
PHILANTHROPIC to the community:
Goodwill improve quality
Be a good corporate of life.
citizen.

ETHICAL Responsibility
Be ethical.
Obligation to do what is right, just,
and fair. Avoid harm.

LEGAL Obligations
Obey the law.
Law is society’s codification of right and wrong.
Play by the rules of the game.

ECONOMIC Responsibility
Be profitable
The foundation upon which all other levels rest.
 “To be able to contribute to
society and to help those in need
to build a better life, that is the
ultimate meaning in life. I would
gladly consider this to be my life’s
work.”

Dr Li Ka Shing
 Social Entrepreneur
 A pragmatic visionary who achieves large scale,
systemic and sustainable social change through a
new invention, a different approach, a more
rigorous application of known technologies or
strategies, or a combination of these.
 Combines the characteristics represented by
Richard Branson and Mother Teresa.
 For more info : www.schwabfound.org
80%
72%
70%

60%

50%

40% Best things about

owning a business
30%

20% Control Others

10% 10% 8%
10% Survey by Padgett Business
Services USA Inc.
(Adopted from Small
0%
Business Management, 5th
Independence Satisfaction edn, Megginson, Byrd,
Megginson
 70%
63%
60%
50% 46%
% of very 40%
satisfied 30% 29% 27%
Self Employed
20%
Working for Others
10%
0%
Great United
Britain States
 Achieve
____________
 Obtain Additional
_______
 Help Their Families
 Provide Products Not
Available Elsewhere
 Managers
 Managers of large companies tend to seek :
 ________

 ______

 _______

 _________
“one who shifts economic resources
out of an area of lower and into an
area of higher productivity and
greater yield “
Peter Drucker, guru on management theory

“..human, creative act that builds

something of value…pursuit of
opportunity…..requires a vision
and passion and commitment…..
calculated risks…”
Jeffrey Timmons, author of the
entrepreneurial mind
Key Elements in Entrepreneur’s Background
 Supportive childhood family
environment.
 Having a father who is self-
employed helps.
 Education is important.
 Aged 22-45 when starting
venture.
 Work history: dissatisfied with
company job but has technical
knowledge.

Bill Gates
 Successful Entrepreneurs
•Age : 34, Net Worth :  While in the Ph.D program in
US$90 million. computer science at Stanford
University, he met Sergey
•Son of Michigan State Brin and together they
University computer science developed and ran “ ? ”,
professor which began operating in
1998 and currently employing
•While following in his more than 1900 employees.
father's footsteps in
academics, he became an
honors graduate from the
University of Michigan, where
he earned a bachelor of
science degree in engineering,

?
with a concentration on
computer engineering
 Successful Entrepreneurs
 Age : 45, self made  Started company 15 yrs
ago, at age 28, with
 Value of company : S$270 $20,000 savings.
mil.
 Adopted at birth by an  Nominated MP and Her
elderly woman, never knew World Magazine “Woman
her biological parents of the Year 2002”.

 Hometown : Kampar, a poor

Malaysian mining town

 Worked her way through

college and graduated with a
B.Science (Hons) from NUS.
?
Entrepreneurship – Theory, Process, Practice Chap 4 pg 114-121
 Types of Skills Required in Entrepreneurship

Technical Business Personal

Management
Writing Planning Inner Control

Oral Leadership Risk Taking

Communication

Monitoring the Interpersonal Innovative

Environment

Using Technology Marketing Change-oriented

(Selling) visionary
 The Causes of Business Failures
Are Many and Complex
Other
Insufficient
Capital
Heavy Operating
Other Expenses
Economic,
Finance Burdensome
Debt
Inexperience
Insufficient
Profits
Neglect

Industry
Weakness
 Techniques taught in Entrepreneurship

Generate Identify your Raise $$$

opportunities market

Assess Entry Keep business

opportunities strategies afloat

Analyse Reach your Put vision on a

business customers Plan
environment
Exit Protect your Budgeting
Strategies business ideas
 MYTHS OF
ENTREPRENEURSHIP
Entrepreneurs are doers, not thinkers
Entrepreneurs are _____, not made
Entrepreneurs are always inventors
Entrepreneurs are academic and social
_______
“Entrepreneurship, Theory, Process and Practice” Chapter 2

“Entrepreneurship, Theory, Process and Practice, Chapter 2”

 MYTHS (continuation)
 Entrepreneurs must fit the “profile”
 All you need is ______ to be an entrepreneur
 All you need is _____ to be an entrepreneur
 Ignorance is bliss for an entrepreneur
 Entrepreneurs seek success but experience
high failure rates
 Entrepreneurs are extreme risk takers
(gamblers)
 Checklist for Aspiring
Entrepreneurs
 Do it for passion not money
 Do something you know about
 Don’t give up too early
 Have a mentor
 Have appropriate funding
 Be a good cash manager
 Build sales first
 Don’t try to rush
 Be wary of bad advice or suppliers
 Summary
 Entrepreneurial Process
 Different Entrepreneurial Attributes
 Causes of Business Failures
 Checklist for Entrepreneurs
 Video Screening – The Makings of an
Entrepreneur