Introduction to Entrepreneurship and Business Opportunities

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Introduction to Entrepreneurship and Business
Opportunities
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What does entrepreneurship involve?

• Wealth Creation
• New Venture Management
• Innovation
• Creativity
• Risk Taking

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What is entrepreneurship ?

• It is the process of
• creating something new
• by devoting...
• by assuming certain ... risks
• and receiving some ... rewards

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What is entrepreneurship ?
It is the process of creating something new,
with value, by devoting the necessary time and
effort assuming the accompanying financial,
psychic, and social risks, and receiving
rewards of monetary and personal satisfaction and
independence Hisrich and Peters,
Entrepreneurship, pg 10
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What is entrepreneurship ?
It is the process of creating something new,
with value, by devoting the necessary time and
effort assuming the accompanying financial,
psychic, and social risks, and receiving
rewards of monetary and personal satisfaction and
independence Hisrich and Peters,
Entrepreneurship, pg 10
CREATING VALUE
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What is entrepreneurship ?
Delivering Value to Customers who are willing to
Pay an amount which covers your Costs
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When does a person become an entrepreneur?
Let's list some of these conditions or events.
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What is Entrepreneurship ?
A pursuit of the opportunities regardless of the
resources. Harvard Business School
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What is Entrepreneurship ?
A pursuit of the opportunities regardless of the
resources. Harvard Business School
THE OPPORTUNITY
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What is Entrepreneurship ?
A pursuit of the opportunities regardless of the
resources. Harvard Business School
LEVERAGING RESOURCES
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What is Entrepreneurship ?
A pursuit of the opportunities regardless of the
resources Harvard Business School An
entrepreneur is opportunity-obsessed with the
goal of creating value without regard to
resources currently controlled. Stanford
University
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What is Entrepreneurship ?
Opportunity identification Leveraging
resources Value creation
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What is Entrepreneurship ?
Opportunity identification Leveraging
resources Value creation
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How to spot an opportunity ?
Solving a problem many entrepreneurs
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How to spot an opportunity ?
Solving a problem many entrepreneurs Vinod
Khosla's clip (30 sec.) http//edcorner.stanford.
edu/authorMaterialInfo.html?mid26
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Sources of Business Opportunities
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Sources of Business Opportunities
Change as a source of business opportunities
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The big company versus The start-up
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The big company vs. the start-up
Established companies (incumbent players) have
products or servicessmooth operationsestablish
ed business models loyal set of
customersfunctional teams
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The big company vs. the start-up
Start-ups have passionhunger to growlower
costslack of hierarchyflexibilityeligibility
for certain funding schemes...
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The big company vs. the start-up

• Established companies (incumbent players) they
  have products or services, smooth operations,
  established business models, loyal set of
  customers, functional teams
• Start-ups have passion, hunger to grow, lower
  costs, lack of hierarchy and flexibility,
  eligibility for certain funding schemes...

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Change as a Source of Opportunity

• Status-quo is good for incumbent players
• Change brings in disruption that in consumer
  tastes, cost structures, business models,
  expectations, level of expertise needed,
  distribution channels, payment mechanisms,
  availability of finance

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Change as a Source of Opportunity

• Status-quo is good for incumbent players
• Change brings in disruption that in consumer
  tastes, cost structures, business models,
  expectations, level of expertise needed,
  distribution channels, payment mechanisms,
  availability of finance
• Change produces a level-playing field which is
  actually loaded in favour of a new player because
  of its flexibility, adaptiveness

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Examples of Entrepreneurs Exploiting Change
Chaudhry Raghavendra Singh 21 colonies including
Greater Kailash, South Extension and Hauz Khas
http//in.rediff.com/money/2006/apr/08forbes.htm
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Broad Categories of Change

• Demographic
• Economic

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Broad Categories of Change

• Demographic
• Economic
• Socio-cultural
• Technological
• Political
• Legal and Regulatory

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Demographic Changes

• Median age
• Working population as the of total population
• Life expectancy
• Health-care needs
• Urban-rural ratio
• Literacy
• Male-female ratio

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Economic Changes

• Gross Domestic Product and Per Capita Income
• Availability of credit at all levels
• Size of the middle class
• Level of exports and imports
• Inflation and interest rates
• Various growth rates industrial growth,
• productivity growth, exports growth
• Level of unemployment

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Socio-Cultural Changes

• Value systems globalization and local
  assertions
• Accepted norms of behaviour
• Role of religion and spirituality
• Pursuit of expertise, knowledge, wealth,
  possessions
• Measure of time attention span, priorities,
  conveniences

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Technological Changes

• Availability and wide-spread assimilation of
  technology
• Information Technology and it pervasiveness
• Costs and disposable incomes
• Performance, variety, ease of acquisition
• Cross applications interdisciplinary
  developments
• Comfort level of technology usage
• Examples CD ROM drives and mobile phones

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Political and Regulatory Changes

• Transition from centrally planned to market
  economy (India, 1991)
• Transition from communism to market socialism
  (China, 1978-80)
• IPR laws
• Labour reforms

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Entrepreneur as a Visionary must Anticipate

• Analyze all the changes that are happening in the
  target market
• Estimate the time constants of change fast or
  slow
• Worry about the fickleness of customer tastes
  (esp. fashions, movies)
• Make reasonable guesses
• Validate your hypotheses at each stage as new
  field data arises
• Study human psychology or consumer behaviour

A B
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Entrepreneur as a Visionary must Anticipate

• Analyze all the changes that are happening in the
  target market
• Estimate the time constants of change fast or
  slow
• Worry about the fickleness of customer tastes
  (esp. fashions, movies)
• Make reasonable guesses
• Validate your hypotheses at each stage as new
  field data arises
• Study human psychology or consumer behaviour

A B

• Jeff Hawkins' clip 3.50 min
• http//edcorner.stanford.edu/authorMaterialInfo.ht
  ml?mid55

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Examples of Entrepreneurs Exploiting Change
Ted's mind is always 5 to 10 years down the
road. Right now he's probably living in
1995 Ted Turner, founder of CNN, about whom
this was said in 1985.
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What is entrepreneurship ?
What are the stages from an idea onwards?
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An introduction to entrepreneurship
Idea gt Prototype gt Development gt Scale-up
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An introduction to entrepreneurship
Functional areas ????
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An introduction to entrepreneurship
Functional areasService/technology
developmentHRFinanceStrategyMarketing
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(No Transcript)
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What is entrepreneurship?
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Assignment Groups of 3, ie 12 groups. Each
group to receive Rs. 50. Spend the rest of
today's class planning what you are going to do
with this money.
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Assignment Groups of 3, ie 12 groups. Each
group to receive Rs. 50. Spend the rest of
today's class planning what you are going to do
with this money. Friday afternoon is allocated
for you to make your sales. Group Supervisor
(moderator) commits to issuing receipts in case
that is required for your customers.
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Assignment Groups of 3, ie 12 groups. Each
group to receive Rs. 50. Spend the rest of
today's class planning what you are going to do
with this money. Friday afternoon is allocated
for you to make your sales. Group Supervisor
(moderator) commits to issuing receipts in case
that is required for your customers. Saturday
morning come and tell us what you did and how
much you earned. You can keep the extra money
that you made.
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Assignment Groups of 3, ie 12 groups. Each
group to receive Rs. 50. Spend the rest of
today's class planning what you are going to do
with this money. Friday afternoon is allocated
for you to make your sales. Group Supervisor
(moderator) will issue receipts in case that is
required for your customers. Saturday morning
come and tell us what you did and how much you
earned. You can keep the extra money that you
made. In case you didn't try to make money,
you must return the Rs. 50/-.
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An introduction to entrepreneurship

• Credits
• Entrepreneurship, 5th Edition, 2002
• D. Hisrich and M. P. Peters
• Stanford Technologies Venture Program (STVP)