ENTREPRENEURSHIP

Entrepreneurship is the ability and readiness to develop,

organize and run a business enterprise, along with any of its
uncertainties in order to make a profit.
Entrepreneur
The entrepreneur is defined as someone who has the ability
and desire to establish, administer and succeed in a startup
venture along with risk entitled to it, to make profits.
The best example of entrepreneurship is the starting of a new
business venture.
 has a source of new ideas or innovations

 replacing old with a new invention.

Who is the father of entrepreneurship?
Joseph Alois Schumpeter is regarded as the father of
entrepreneurship. He introduced the concept of
entrepreneurship.
What are the key concepts of entrepreneurship?
The 4 key concepts of entrepreneurship are as follows:
 Innovation

 Risk taking

 Vision

 Organization
Importance of Entrepreneurship:
 Creation of Employment- Entrepreneurship generates
employment. It provides an entry-level job required for gaining
experience and training for unskilled workers.
 Innovation- It is the hub of innovation that provides new
product ventures, market, technology and quality of goods, etc.,
and increase the standard of living of people.
 Impact on Society and Community Development-It brings
about changes in society and promotes facilities like higher
expenditure on education, better sanitation, fewer slums, a
higher level of homeownership. Therefore, entrepreneurship
assists the organization towards a more stable and high quality
of community life.
o Increase Standard of Living-
Entrepreneurship helps to improve the standard of living of a
person by increasing the income. The standard of living means,
increase in the consumption of various goods and services by a
household for a particular period.
o Supports research and development-
New products and services need to be researched and tested
before launching in the market. Therefore, an entrepreneur also
dispenses finance for research and development with research
institutions and universities. This promotes research, general
construction, and development in the economy.
Dimensions of entrepreneurship:

1. Intrapreneurship:
An entrepreneur is a person who takes a considerable amount
of risk to own and operate the business, with an aim of earning
returns and rewards, from that business.
On the contrary, an intrapreneur is an employee of the
organization who is paid remuneration according to the success
of the business unit, for which he/she is hired or responsible.
Intrapreneur refers to an employee of the organization who is in
charge of undertaking innovations in product, service, process
etc.
 The primary difference between an entrepreneur and intrapreneur
is that the former refers to a person who starts his own business
with a new idea or concept, the latter represents an employee
who promotes innovation within the limits of the organization.
2. Technopreneurship:
Technopreneurship, as the term suggests, is a blend of the two
words 'technology' and 'entrepreneurship' and simply put
together means entrepreneurship in the field of technology.
The term originated in the 1990s to define entrepreneurs who
start and manage their own technological businesses.
“techpreneurs are entrepreneurs who start and manage their own
technology business.”
examples of some technopreneur:
Bill Gates( founder and owner of Microsoft)and Steve
Jobs(Apple Computer Corporation).
They produce various strategic thinkers who have the relevant
skills and talent to grab success in a changing global atmosphere
at a fast pace. Property has achieved through technology and
accurate entrepreneurial skills.
3.Cultural entrepreneurship:
Cultural entrepreneurship is an emerging discipline that
examines how cultural products (such as art, theater, and
literature) and cultural activities (like sports, music, food, and
film events) have an impact on the growth of local, national, and
global economies.
Artists are the pioneers of cultural entrepreneurship. Anyone who
understands the importance of culture in society and builds a
platform to celebrate it is a ‘cultural entrepreneur’.
Lack of resources and the absence of a nurturing environment
has demotivated and forced artisans across the country to quit
their creativity and settle for other professions.
 The increasing cultural entrepreneurship practice has
promoted dynamic development in cultural preservation in
India and across the world.
4. International entrepreneurship:
When an Entrepreneur goes to other countries to run and
operate their business, then it is known as International
Entrepreneurship.
These types of Entrepreneurship include exporting of goods,
licensing as well as commencing a sales office in other
countries.
Under this, an Entrepreneur operates all the business activities
out the boundaries of the nation and it indicates the
development of the business internationally.
There are many industries that have produced numerous
international entrepreneurs Coca-Cola, Nike, MacDonald,
BMW, Puma, Philips and Tata etc.
Pizza was originated by Italy; hamburger was made in USA
and firstly noodles were made in china. An entrepreneur can
give tasty food of his country to the rest of the world and make
an international brand of it.
5.Netpreneurship:
Net+enterpreneurship is netpreneurship. It means opening and
running a business via internet only and no physical office of the
company is maintained. Now a days everyone uses internet, it is
the best platform for a startup to grow. Also it helps investors to
set up their business at a low cost and can promote the business
everywhere around the world without the physical presence.
Some good examples of netpreneurship infront of us as-
amazon.com,eBay etc.

it can be a freelancer, working from home taking projects online

or launching e-marketing campaigns .
6. Ecopreneurship:
Ecopreneurship is a term coined to represent the process of
principles of entrepreneurship being applied to create businesses
that solve environmental problems or operate sustainably. The
term began to be widely used in the 1990s, and it is otherwise
referred to as "environmental entrepreneurship.“
It is a business behavior adopted by people who want to
create a “green” business. In other words, it is a way to
contribute to sustainable development while making profit.
Volkswagen:
best example for eco-friendly entrepreneurship.The company
collects and reuses rainwater and to flush toilets and cool
welding machines, a highly reflective roof membrane to reduce
heat etc..
7 Social entrepreneurship :
It is the process by which individuals, startups and
entrepreneurs develop and fund solutions that directly
address social issues. A social entrepreneur, therefore, is a
person who explores business opportunities that have a positive
impact on their community, in society or the world.
Urvashi Sahni, Founder and CEO of SHEF (Study Hall
Education Foundation): Set up to educate girls in rural India,
SHEF has transformed more than 1,000 schools, trained tens of
thousands of teachers and impacted nearly 5 million students’
lives in UP and Rajasthan.
 Other examples of social entrepreneurship include providing
banking services in underserved areas, and helping
children orphaned by epidemic disease.

MUHAMMAD YUNUS
Yunus is the founder of the Grameen Bank, an institution that
provides microcredit loans to those in need to help them
develop financial self-sufficiency. Founded in 1983, the bank
has brought in a net income of more than $10 million, and his
work with the organization landed Yunus a Nobel Prize in
2006.
UNIT-2
ENTREPRENEURSHIP AND MICRO, SMALL
AND MEDIUM ENTERPRISES:
The Government of India has enacted the Micro, Small and
Medium Enterprises Development (MSMED) Act, 2006 in
terms of which the definition of micro, small and medium
enterprises is as under:
1. A micro enterprise is an enterprise where investment in
plant and machinery does not exceed Rs. 25 lakh;

2. A small enterprise is an enterprise where the investment

in plant and machinery is more than Rs. 25 lakh but does
not exceed Rs. 5 crore;
3. A medium enterprise is an enterprise where the
investment in plant and machinery is more than Rs.5 crore
but does not exceed Rs.10 crore.
Example List of MSME Businesses

Leather products.
Moulding – This includes products like combs, umbrella frames, plastic
toys, etc.
Natural Fragrance and Flavours.
Placement and Management Consultancy Services.
Training and Educational Institute.
Energy Efficient Pumps.
Xeroxing.
Beauty Parlour and crèches.
 Business Group

A business group is the highest level of organization and

the largest grouping of employees across which you may
report ,including the employees assigned to each Business
Group and the member of the Senior Management Team to
whom the Business Group reports directly.
What is the purpose of the business group?
They work to promote the interests of private companies
and corporations by seeking tax cuts, regulatory changes,
and other pro-business benefits.
Here are some small business groups for networking.

Your local chamber of commerce. ...

SCORE helps mentors and small business owners connect. ...
Entrepreneurs' Organization (EO) ...
Business Networking International (BNI) ...
Young Entrepreneur Council (YEC) ...
American Marketing Association (AMA) ...
Rotary Club International.
 Business Houses
Business houses are a public or private structure business that
forms a group of various companies dealing in different
segments. Business Houses are an important part of a nation's
economy and a major contributor to the GDP(Gross Domestic
Product) of the country.
Top 10 Business houses in India
ADAG.
ADITYA BIRLA GROUP.
HERO GROUP.
HINDUJA GROUP.
MAHINDRA GROUP.
MANIPAL GROUP.
MURUGAPPA GROUP.
MUTHOOT GROUP.
Family Business

A business that is owned or run by members of a single

family.
The various businesses and shared investments, including
real estate, owned jointly by family members. A family
usually begins with a single legacy business and then, over
generations, diversifies into other investments, often selling
their family assets.
In a family business the decision making authority lies with
only the family members .Decision making is centralized at the
top level of the management.
In a family owned business top level positions are held by
family members across generations. Not only the decision
making but the control and ownership also rest with the family
members. One of the family member is major share holder
who acts as the CEO of the company.
CONTEMPORARY ROLE MODELS IN INDIAN BUSINESSES

There are a huge number of entrepreneurs doing very well for

them as well as for the economy. it is very important for us to
learn their values.
We have discussed two influential women entrepreneurs in this
presentation.
KIRAN MAZUMDAR SHAW:

 Kiran Mazumdar is an Indian entrepreneur. She is the Chairman &

Managing Director of Biocon Limited a biotechnology company
based in Bangalore.
 Kiran Mazumdar-Shaw was born on March 23, 1953 in Bangalore,
India.
 Mazumdar-Shaw completed her schooling from the city’s Bishop
Cotton Girl’s High School (1968).
 She wanted to join medical school but instead took up biology and
completed her BSc Zoology Honors course from Mount Carmel
College, Bangalore University (1973).
 She later did her post-graduation in Malting and Brewing from
Ballarat College, Melbourne University (1975).
KIRAN MAZUMDAR SHAW:
 She worked as a trainee brewer in Melbourne and as a trainee
master in Australia.
 She also worked for some time as a technical consultant at Jupiter
Breweries Limited, Calcutta and as a technical manager at
Standard Makings Corporation, Baroda between 1975 and 1977.
 She started Biocon in 1978 and spearheaded its evolution from an
industrial enzyme manufacturing company to a fully integrated
bio-pharmaceutical company with a well-balanced business
portfolio of products and a research focus on diabetes, oncology
and auto-immune diseases. 45+ years of experience in
Biotechnology.
 Recipient of Padma Shri (1989), Padma Bhushan (2005)
 She was recently named among TIME magazine’s 100
most influential people in the world. She is on the Forbes
list of the world’s 100 most powerful women and the
Financial Times’ top 50 women in business list.
 She is also a member of the board of governors of the
prestigious Indian School of Business and Indian Institute of
Technology Hyderabad.
HER VALUES:
 Belief in herself
 Leadership

 Vision

 Go-better spirit

 Not afraid of failures

HER BUSINESS PHILOSOPHY:

 Ethics in business
 Precision in work

 Quality matters the most

DR. SWATI PIRAMAL:
Swati A. Piramal is the Vice Chairperson of Piramal Life
Sciences Limited and Director of Piramal Healthcare
Limited.
 Dr. Piramal received one of India’s highest civilian
honour’s, the Padmashri award, by the President of
India, Ms. Pratibha Patil on 4th April, 2012.
 She has been nominated as one of the 25 Most
Powerful Business Women in India eight times and is
now a member of the Hall of Fame of the Most Powerful
Women.
 She was the first woman in 90 years to head the Apex
Chamber of Commerce ASSOCHAM in 2009-10.
 She has contributed towards innovations in Public
Health Services and other projects.
SWATI PIRAMAL
 She has been a part of public policy related to health care
which led to major policy changes that help reduce the spread
of life-threatening diseases.
 Dr. Swati Piramal also serves on Indian Government public
policy expert committees for trade, planning, environment,
arts, women’s entrepreneurship, national integration and
regional development.
 Dr. Piramal is a member of many Indian and foreign business
councils, and has received numerous Indian and international
awards.
HER VALUES:

 Doing good for society

 Extending helping hand

 Courtesy & humility

HER BUSINESS PHILOSOPHY:

 Innovation as mantra of success
 Ethical business
CONFLICT IN FAMILY BUSINESSES
Conflict is unavoidable in family businesses as it is an
amalgam of individuals (family and non-family
members) who are more likely to hold different opinions
on a matter that result in disagreements on strategic or
tactical issues.
Sources of Conflict

1. Direction for the business - Lack of commonly shared

vision and values often leads to disagreements among family
members. If the business is not directed towards a set of shared
strategic goals, conflicts are bound to arise.
2. Decision-making - Another major source of conflict is lack of
clarity on the decision making process and the authority of
over decisions that respective family members have. In
addition, lack of a conflict resolution mechanism in cases of
disagreements over major decisions aggravates the situation.
 3. Roles and responsibilities - Lack of clarity on the roles
and responsibilities of individual members and their
understanding of the same are potential sources of conflict.
Role-overlaps and poorly described performance
expectations also become potential sources of conflicts.
4. Compensation/benefits - Remuneration and rewards are
among the most frequent sources of conflict. If these are
perceived to be unjust or inequitable, a solid ground for
potential conflicts is generated, especially among next
generation members.
5. Ownership - Family ownership of business is a major
responsibility. The actual ownership of the stake and the
terms of its transfer to the next generation need to be
clearly documented and communicated to family members.
Failure in doing so can result in conflicts.
6. Distributions to non-employee shareholders - Shareholders
expect fair treatment and distribution of dividends and earnings.
Inequitable distributions are invitations to conflicts.

7. Personality Differences - Family businesses that fail to

acknowledge and accommodate differences in the personalities
of individuals involved are more prone to conflict. Interpersonal
differences often crop up and spill over to the family business.

8. In-laws - In-laws and spouses may have different perspective

and interests. In some instances, they may unknowingly generate
conflict. It is important to clarify their terms of engagement with
business.
9. Accountability - Family members need to be accountable
and perform as per expectations. Disciplining may be needed
if resentments grow into confrontations.

10. Succession - Clear and mutually agreed decision

regarding the successor is important to save family business
from conflicts in leadership transition stage. Everyone must be
taken into confidence regarding the transition process and time.

11. Sibling Rivalries - It is natural for siblings to vie for

parents’ attention in childhood. However, if these rivalries
continue even after growing up life stages and into the
business, these can result into bitter conflicts. Parents need to
treat children equally and help them resolve differences.
12. Entry/Exit Rules - Entry in the family business must be
based on merit and not considered to be a birthright. Clear rules
of entry and exit can reduce conflicts in family businesses.

13. Communication - Unclear, infrequent, partial communication

leads to gaps in understanding and create conflicts. Family
businesses must devise forums for open communication where
members can say what they need to say to others.

14. Estate Plans - Lack of clarity on the estate plan formulated

by the senior generation raises anxiety among other members. If
family members do not have a clear idea of what will be their
share in the inheritance, conflicts are bound to arise.
15. Finances - Money matters often become major sources of
conflict among family members. These differences are
compounded in cases where there is no or little distinction
between individual and business funds. A financial
management mechanism that takes care of needs of all
family members must be devised in a way that does not over
burden the business.