PROJECT MANAGEMENT

&
ENTREPRENEURSHIP

KHU-702

UNIT-II
CONTENT
Entrepreneurial Idea and Innovation:
Introduction to Innovation,
Entrepreneurial Idea Generation and
Identifying Business Opportunities,
Management skills for Entrepreneurs
and managing for Value Creation,
Creating and Sustaining Enterprising
Model & Organizational Effectiveness
Entrepreneurial ability
 Challenges of new venture
start-up
Money
Neglecting Marketing and Sales
Lack of Planning
Finding Right People
Scaling up
Competitors
Lack of Mentoring
Good Idea but poor Management
Time Management
 Reason of Failure
Lack of experienced management
Untrained Manpower
Poor Financial Management
Lack of business linkages
Incorrect pricing
Short term outlook
Lack of good team
Not able to grab opportunity
 Management skills for
Entrepreneurs and managing for
Value Creation
 In this classification, entrepreneurial skills is
categorized in three groups including technical,
personal and managerial skills.
 Components of entrepreneurial management skills
under this category include:
 Time Management
 Business Planning
 Employee Management
 Customer Management
 Sales Management
 Finance Management
 Business Management
 Management skills for Entrepreneurs

and managing for Value Creation
Time Management
The most valuable asset for young entrepreneurs is
their time. As an entrepreneur, you have to take
care of so many things together and time
management is the key to keep everything on
track. It is vital to get more work done in less
amount of time by eliminating interruptions,
prioritising tasks and increasing effectiveness as
well as productivity. Effectual time management
allows entrepreneurs to assign specific time slots
to the activities as per their importance. It also
gives them the ability to participate in economic
forecasting and market research.
Management skills for Entrepreneurs
and managing for Value Creation
Business Planning
Every entrepreneur needs to develop a business
plan or a blueprint of how will he develop his new
business. A good business plan consists of a single
document divided into several sections including
the description of the organisation, market
research, sales strategies, competitive analysis and
financial data. A well-planned blueprint or project
outline acts as a strong foundation for the success
of the venture. It facilitates the entrepreneurs to
make their business fit into the industry, identify
their target market and plan to capture them.
 Management skills for
Entrepreneurs and managing for
Value Creation
Employee Management
 An entrepreneur must know how to manage the people. He
should be a good judge of character and abilities of an
individual such as hiring the right employee is the foremost
step for the success of a company. Successful entrepreneurs
should know how to motivate the employees in order to work
effectively and contribute to garner customer experience.
Customer Management
 An entrepreneur must know how to manage his relationship
with existing customers with a focus on creating loyalty
towards his business. This is the easiest and most effective
method to increase revenues. Entrepreneurs must have
problem-solving skills, communication skills, attentiveness
and patience to manage customers effectively.
Management skills for Entrepreneurs and
managing for Value Creation
Sales Management
 Selling or sale management is an essential skill every
entrepreneur must master. You need to completely
understand the sale activities. This helps the entrepreneurs to
tackle the challenges that they may face in their sale
management journey.
Financial Management
 Even if your business’s finance is handled by an accountant
or a finance professional, you must know planning,
organising, directing and controlling the financial activities
such as procurement and utilisation of funds. With a good
financial management system, one can make decisions to
improve the business operations.
Business Management
 Being a successful entrepreneur involves more than
enthusiasm and a good eye for new opportunities. A thorough
Management skills for Entrepreneurs
and managing for Value Creation
There are challenges (keeping customers
happy, managing money, etc.), so If you are
considering becoming an entrepreneur
There are several essential skill sets that
you can develop to increase your
entrepreneurial success.
These skill-sets can be broken down
into three groups: Entrepreneurship
Skills, Technical Skills and Management
Skills
Entrepreneurial Skills

 INNOVATION
“It’s the introduction of novelty in a given market or
industry, such as new products, services, methods,
sources of supply or organization.
Innovation doesn’t always mean creating something
new: innovators often take something that already
exists, improves it, change it, make it better and make it
the best for their customers. Innovative ideas are what
will make a startup competition.
 Change oriented leadership
Because the world is changing so rapidly change-
oriented leadership is essential. A change-oriented
leader tries to promote exploration of new and be hidden
potential in people, things, or situations. Change-
oriented leaders work towards a better future, but they
Technical skills

 Communication skills:
Communication is a way to make interaction between
people. communication skills will assist entrepreneurs in
sharing their ideas and presenting them clearly .
 Research and Development (R&D
research and development (R&D) include activities that
companies undertake to innovate and introduce new
products and services. It is often the first stage in the
development process. The goal is typically to take new
products and services to market.
The R&D cycle often begins with ideation and theorizing,
followed by research and exploration and then into
design and development.
Management skills

 Marketing skills:
Marketing is a vital process for entrepreneurs
because no venture can become established and
grow without a customer market. The process of
acquiring and retaining customers is at the core of
marketing.
 Finance:
Entrepreneurial finance is the study of value and
resource allocation, applied to new ventures. It
addresses key questions which challenge all
entrepreneurs: how much money can and should
be raised; when should it be raised and from
whom; what is a reasonable valuation of the
startup; and how should funding contracts and
VALUE CREATION
 The most successful organizations understand
that the purpose of any business is to create value
for customers, employees, and investors, and that
the interests of these three groups are
inextricably linked.
 Therefore, sustainable value cannot be created for
one group unless it is created for all of them.
 The first focus should be on creating value for the
customer, but this cannot be achieved unless the
right employees are selected, developed, and
rewarded, and unless investors receive
consistently attractive returns.
What do we mean by value creation?
For the customer, it entails making products and
providing services that customers find consistently
useful.
In today’s economy, such value creation is based
typically on product and process innovation and on
understanding unique customer needs with ever-
increasing speed and precision.
But companies can innovate and deliver outstanding
service only if they tap the commitment, energy, and
imagination of their employees.
Value must therefore be created for those employees in
order to motivate and enable them.
Value for employees includes being treated respectfully
and being involved in decision-making. Employees also
What do we mean by value creation?
Creating value for investors means delivering
consistently high returns on their capital.
This generally requires both strong revenue growth
and attractive profit margins.
These, in turn, can be achieved only if a company
delivers sustained value for customers.
What do we mean by value creation?
What do we mean by value creation?
 If the purpose of business is value creation, it follows that the
mission of any company should be defined in terms of its primary
value-adding activities.
 Simply put, Honda should think of itself primarily as a maker and
marketer of quality automobiles.
 McDonald’s should think of itself as providing meals of consistent
quality throughout the world in a clean, friendly atmosphere, etc.
 While this may seem obvious, many managers and strategists
behave as though the day-to-day business of a firm is irrelevant.
Hence, an oil company might buy a hotel chain, while a national
chain of auto-mobile service centers is caught systematically
charging customers for unnecessary repairs.
 What conception of business lies behind these actions? Typically it
is a very narrow definition of purpose “to maximize the wealth of
the share-holders,” or to achieve a set of short-term financial
goals.
 Value Creation
Some of the major themes that underlie successful value
creation strategies in the information economy are:
Product and process innovation
Detailed, real-time understanding of changing needs of
well-defined customer segments (frequently database
enabled)
Leveraging emerging technologies in existing markets
(particularly information technology)
Leveraging technology or regulatory changes to create
new markets
Reconfiguring company and industry value chains
Creating win/win partnerships with customers,
employees, and suppliers