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Other people see things and say ‘Why?’ …. But I dream things that never were and say ‘Why not?’ George Bernard Shaw WELCOME TO ALL OF YOUEntrepreneurship (EDP) RAHUL JAIN (Striving for excellence) BCOM (H), MBA, FCS Aim of the Module To train and develop students to become effective Entrepreneurs. To understand the planning process required for setting up a small business. COURSE GUIDELINES Meaning of Entrepreneurship Various types of industries Steps to set up an Enterprise Banking and finance Industrial / commercial laws Project identification and compilation of project reports Learning Outcomes Understand what it takes to be an entrepreneur Understand how to raise funds Have an idea of regulatory requirements of staring and running a business Be able to create a rudimentary business plan Focus Points Entrepreneurship – the motivations, the risks, rewards, impact Seeing opportunities, identifying profitable opportunities Creating a business plan- its content and importance as a tool Starting a company and the regulatory requirements Raising money to start the business-bootstrapping, enrolling investors to your plan Getting loans- what do banks need Selling and getting the first clients What makes my business different than competition? Building a team- getting people to believe in the venture Making mistakes, changing plans, mutilating, adapting to what customers want Cash flows – the oxygen of any business Project- creating a business plan and presenting to potential investors/stakeholders Our Strategy for achieving these Objectives? Concepts, Cases and Class Discussion Punctuality, Participation and Preparation (Its compulsory to bring your own calculators, Pen, Stationary, Registers, Prescribed Book, Printouts of the Emailed documentsOtherwise necessary disciplinary action will be taken) Judgment challenge Learning to communicate ideas Learning from each other Learning through discovery Some Important rules Switch off your Mobiles Attendance rules will be strictly applied Non completion of Assignment will lead to strict disciplinary measures Students can gather additional bonus points by being a “Star Performer” in the whole course. Students falling in the “Improvement category” would be penalized. If Attendance is less than 75% then one grade will be reduced in respective Viva/Exam/Log Process. “I don’t design clothes, I design dreams.” - Ralph Lauren - 11 - Today… Introduction to Entrepreneurship Economist's view Calculated Risk Entrepreneurial Competencies Classification of Entrepreneur Economic Development Entrepreneurial Spirit: Converting Idea into Success Being Different Having Fun Vision creates Opportunities, Execution Creates Magic Being Different Can We change the status quo ? Can We take the Initiative ? Can We leverage on our strengths ? Some Examples Having Fun Can We be creative ? Can We do the same thing in better manner ? Can We enjoy the process ? HR & Strategic Implications What is Entrepreneurship? Organizing a business venture and assuming the risk for it. “An entrepreneur is a person who is willing and able to convert a new idea into a successful venture.” Entrepreneurship is a process of converting a new idea into a successful venture Entrepreneurship Founding entrepreneur who identifies the opportunity and moves to exploit it commercially. Often it is the founder (or founding team) who possesses much of the technical and managerial knowledge that make-up the tangible and intangible assets of the firm. In sum, an entrepreneur’s expanding knowledge base and absorptive capacity becomes an entrepreneurial firm’s competitive advantage” (Alvarez and Busenitz 2001, p.766). What is Entrepreneurship? Practice of starting new organizations or revitalizing mature organizations Particularly new businesses in response to identified opportunities. Entrepreneurial activities has a vast range It ranges in scale from solo projects to major undertakings creating many job opportunities. Entrepreneur is one who organizes, manages and assumes the risk of a business enterprise. Who is an entrepreneur ? He who has a vision Has the hunger to make something from nothing Is Never Finished The Risk Factor He is having fun!!! Case of IPL Out of Box “Thinking” Able to raise around $2 billion for BCCI One of the Most successful Cricket tournament Satisfied all the stakeholders of the Cricket Calculated Risk We must estimate the cost and consequences Must weigh the cost against benefits Must analyze our resources thoroughly and maneuver them Time is of prime importance We must estimate & ensure protection against all odds The Art of Entrepreneurship Most Crucial Resource PEOPLE Leadership The Military Concept Sun Tzu's The Art of War, Chang Yu says: "Benevolence and righteousness may be used to govern a state but cannot be used to administer an army. Expediency and flexibility are used in administration an army, but cannot be used in governing a state." Entrepreneurial Venture – Neither an army nor a state Middle of Leadership extremes Motivation Entrepreneur vs. Manager Entrepreneur Involved with the start-up process Assumes financial, material and psychological risks Driven by perception of opportunity Initiates change Own boss Gets uncertain rewards Manager Involved with running the business Does not have to bear risks Driven by the resources he currently possesses Follows rules & procedures Hired employee Gets fixed rewards and salary Entrepreneurial Competencies Initiative Sees and Acts on Opportunities Persistence Knowing/Information Concern for High Quality of Work Commitment to Work Contract Efficiency Orientation Systematic Planning Problem solving Self-confidence Assertiveness Persuasion Use of Influence Strategies Monitoring Concern for Employee Welfare Classification of Entrepreneurs Trading Entrepreneur Industrial Entrepreneur Agricultural Entrepreneur Economic Development Wealth creation Creation of jobs New technologies Improved products & services Improved standard of living Development of new markets Better/Optimal utilization of resources Famous Fashion Entrepreneurs Ralph Lauren – the designer who provided luxury at all price points. He sold the clothes, but he also sold the fantastic, romanticized lives of the people who wear the clothes—the look of success. Ralph Lauren said “People ask how can a Jewish kid from the Bronx do preppy clothes? Does it have to do with class and money? It has to do with dreams.” Famous Fashion Entrepreneurs Rene Lacoste was the one who bridged the gap between fashion and sports. Rohit Bal is known for his sophisticated cuts and breathing fabrics. He weaves in the best for both men and women. However, there is no one-signature style that the designer sticks to. Fashion Entrepreneurship Fashion entrepreneurship is about combining design, business, and manufacturing knowledge Some things can be outsourced or bought in…but some things are critical for the fashion entrepreneur or the management team. Ritu Kumar Ritu Kumar ……………. Ritu began her venture with four hand-block printers and two tablets; in a small village near Kolkata in the late 60s was incidentally the first woman to introduce the boutique culture in India under the brand name ‘Ritu’. Today she has thirty four outlets in all major cities in India and one outlet in America Critical Capabilities Capability 1: Ability to develop a new symbolic language - a style - that is experienced as distinctive, consistent, and new. Capability 2: Ability to manage the process of communication on which fashion depends. Capabilities Ability to understand and manage strategic, marketing, financial and branding issues for the fledgling firm. An Economist’s View Economists places emphasis on innovation, such as: New products New production methods New markets New forms of organization An entrepreneur forces "creative destruction" across markets and industries. Simultaneously creating new products and business models. Individual Assignment: – I (To be shown in IVth class) Individual Assignment Make a folder/file of Learning Journal and Assignments 1) Individual Assignment- Writing of Key learnings of Videos, Readings & Class 1 in Learning Journal file (One page) 2) Individual Assignment: One page on start up lessons from: http://www.entrepreneurswebsite.com/2010/12/27/1 0-startup-lessons-from-the-bollywood-movie-band-baajabaraat/ 3) Individual Personality exercise- Write the Vision & Mission statement of your life ( Both professional and personal) & Short term professional goals. ( In A4 sheet) Bold : Show it in the IInd Class to have feedback Refer : www.finishingschool.pbworks.com, [email protected], 9811228852 Readings for the Next class Business Plan Business News Viva in 5th Class. Thank You!