It is always seems IMPOSSIBLE until its started
• A Journey of
1000 Kms
start with a
simple step .
Chapter One
Introduction to Entrepreneurship
How They Solved it ?
Why Study Entrepreneurship?
• You will learn the complex business processes
involved in commercialization
• You learn how to make trade-offs among features,
benefits, price, markets, and operations
• You learn how to adapt to uncertainty and change
• You learn techniques for managing people
Chapter Overview
Introduction to Entrepreneurship
What is Entrepreneur, entrepreneurship
The role of innovation and entrepreneurship
The commercialization process
Entrepreneurship
• One characteristic of entrepreneurs stands out:
Diversity!
• Anyone – regardless of age, race, gender, color,
national origin, or any other characteristic – can
become an entrepreneur (although not everyone
should).
What Is an Entrepreneur?
One who creates a new business in the face of risk and uncertainty
for the purpose of achieving profit and growth by identifying
opportunities and assembling the necessary resources to capitalize
on them.
• An entrepreneur is one who discovers new ideas, organises
the business, and often manages its operations to provide
economic goods and services for the public.
Functions of an Entrepreneur
Perceives opportunities for profitable investments,
Explores the prospects of starting such a manufacturing enterprise,
Obtains necessary industrial licenses,
Arranges initial capital,
Provides personal guarantees to the financial institutions,
Promises to meet the shortfalls in the capital, and
Supplies technical know-how
The World of the Entrepreneur
• GEM (Global Entrepreneurship Monitor) study
• Globally 9.4 percent of adults are actively engaged in trying to start a
business.
• Men are twice as likely as women to start a business.
• Nearly one-third of global entrepreneurs are between the ages of 25 and
44.
What is Entrepreneurship?
• Entrepreneurship is the purposeful
activity of an individual or a group of
associated individuals, undertaken to
initiate, maintain profit by production or
distribution of economic goods and
services’.
• Entrepreneurship is meant the function
of seeking investment and production
opportunity, organizing an enterprise to
undertake a new production process,
raising capital, hiring labour, arranging
the supply of raw materials, finding site,
introducing a new technique and
commodities, discovering new sources
of raw materials and selecting top
managers of day-to-day operations of
the enterprise’
Entrepreneurs Vs Inventors
• An inventor, an individual who creates something for
the first time, is a highly driven individual motivated
by his or her own work and personal ideas
• Entrepreneur falls in love with the organization (the
new venture) and will do anything
• An inventor falls in love with the invention and will
not try modify the invention to make it more
commercially feasible.
Importance of Entrepreneurship
Taking to higher rate of economic growth by creation of
value.
Creation of employment opportunity
Dispersal of economic activities to different sectors of
the economy and identifying a new venue s of growth.
Better social changes
Improvement of the standard of living of different
weaker section in the society
Bringing social and political change in the society
Drawbacks of Entrepreneurship
Uncertainty of income
Risk of losing your entire investment
Long hours and hard work
Lower quality of life until the business gets
established
High levels of stress
Complete responsibility
Discouragement
From Bench to Market
BUSINESS
Technology MODEL Commercial Product
Create & Capture Value
Valley of Death
Why technologies don’t make it to market
The Commercialization Process
1 Discovery Invention
Innovation
2 Opportunity Invention Disclosure
Concept Development
3 Feasibility Technology Feasibility
Market Feasibility
Recognition Initial Financials
Rework concept
4 Intellectual
Property &
Provisional patent decision
Non-provisional patent filing
5 Prototype
Development
Platform
Applications
6 Market/
Customer
Field test
Applications
Other intellectual property Testing Testing
Regulatory Regulatory Requirements
Test
Requirements
Refine & Redesign
7 8
License Execution Strategy
Launch Business
Start a Business Develop operations plan LAUNCH
Strategy Sell or joint venture
Plan Develop marketing plan
Secure needed management
Identify funding needs & sources
Benefits of Entrepreneurship
The opportunity to:
• Create your own destiny
• Make a difference
• Reach your full potential
• Reap impressive profits
• Contribute to society and to be recognized
for your efforts
• Do what you enjoy and to have fun at it
Forms of Entrepreneurship
• The Individual Entrepreneur: An individual who started,
acquired, or franchised his or her own independent
organization
• Intrapreneur:- who does entrepreneurial work within large
organizations.
• The Entrepreneurial Organization:- An organization can create
an environment in which all of its members can contribute in
some fashion to the entrepreneurial function
Small Business by Industry
Othe r
Financ e 7.3%
8.0%
Manufac turing S e rvic e
5.8% 39.2%
Who le s ale
7.4%
Co ns truc tio n
11.8%
Re tail
20.5%
Source: U.S. Small Business Administration, 2005.
Small Businesses...
• Make up 99.7 percent of all businesses in the U.S.
• Employ 51 percent of the nation’s private sector
workforce.
• Create more jobs than big businesses.
• Are leaders in offering training and advancement
opportunities to workers.
Ten Deadly Mistakes of
Entrepreneurship
1. Management mistakes
2. Lack of experience
3. Poor financial control
4. Weak marketing efforts
5. Failure to develop a strategic plan
Ten Deadly Mistakes of
Entrepreneurship
6. Uncontrolled growth
7. Poor location
8. Improper inventory control
9. Incorrect pricing
10. Inability to make the “entrepreneurial transition”
Putting Failure into Perspective
• Entrepreneurs are not paralyzed by the prospect of failure.
• Failure – a natural part of the creative process.
• Successful entrepreneurs learn to fail intelligently.
Avoiding the Pitfalls of
Small Business Failure
• Know your business in depth
• Develop a solid business plan
• Manage financial resources
• Understand financial statements
• Learn to manage people effectively
• Keep in tune with yourself
Are you suffering from baby
elephant Memory ?
