bba entrepreneurship

Entrepreneurship involves Entrepreneurship involves capital. But, it is not just the capital. But, it is not just the

finance finance that makes an entrepreneur.that makes an entrepreneur.

A capitalist is one who A capitalist is one who provides the funds.provides the funds.

And stops with that. And stops with that. He has an expectation of He has an expectation of a return on investment.a return on investment.

The meaningThe meaning

EntrepreneurshiEntrepreneurshipp

EntrepreneurshiEntrepreneurshipp An entrepreneur is one who An entrepreneur is one who

combines various factors like combines various factors like creating the infrastructure to creating the infrastructure to

make a product, sourcing make a product, sourcing materials, production, selling, materials, production, selling,

managing employees, managing employees, managing funds, and managing funds, and

ensuring that a profit is ensuring that a profit is made.made.

He is one who ensures that He is one who ensures that money works.money works.



So, while a capitalist merely So, while a capitalist merely ensures access to money, ensures access to money, the entrepreneur has to the entrepreneur has to acquire mastery over acquire mastery over

supervising and supervising and administration.administration.


EntrepreneurshiEntrepreneurshipp Where an entrepreneur Where an entrepreneur

borrows funds for his borrows funds for his venture, he also bears the venture, he also bears the risks, and ensures that he risks, and ensures that he comes out with a profit.comes out with a profit.

There is need for a There is need for a tremendous amount of tremendous amount of

knowledge in an knowledge in an entrepreneur – technical, entrepreneur – technical,

financial, marketing, HR and financial, marketing, HR and administrative.administrative.



It is, however, not It is, however, not necessarily true that all this necessarily true that all this

for only a new venture.for only a new venture.



Any new project that is Any new project that is undertaken by an individual undertaken by an individual is called entrepreneurship.is called entrepreneurship.

An existing businessman An existing businessman going in for a new line, is also going in for a new line, is also

an entrepreneur.an entrepreneur.The meaningThe meaning

EntrepreneurshiEntrepreneurshipp The word entrepreneurship The word entrepreneurship

then takes on a more then takes on a more comprehensive meaning.comprehensive meaning.

Innovation.Innovation.

Any new project is a result of Any new project is a result of entrepreneurship.entrepreneurship.

The key word in the entire The key word in the entire concept of entrepreneurship concept of entrepreneurship

is “creativity”.is “creativity”.



Now, take the circumstance a Now, take the circumstance a step further.step further.

Does entrepreneurship relate Does entrepreneurship relate only to individuals who are, only to individuals who are, or wish to enter, into a new or wish to enter, into a new

line of business?line of business?

Even companies have Even companies have ambitions of diversifying, ambitions of diversifying, adding to product lines, adding to product lines,

enhancing the scope for their enhancing the scope for their company to earn more…company to earn more…



Growth of a company into Growth of a company into new lines is called new lines is called ‘intrapreneurship’.‘intrapreneurship’.

The difference between the The difference between the individual and the company individual and the company

is that, in the case of is that, in the case of intrapreneurship, the intrapreneurship, the

company identifies the new company identifies the new opportunity,opportunity,

the company finds the source the company finds the source of funding, the company sets of funding, the company sets

up the infrastructure, the up the infrastructure, the company identifies the company identifies the

marketing opportunity, and marketing opportunity, and the company establishes the the company establishes the

profit ambitions.profit ambitions.


Above all, Above all, the company bears all the the company bears all the

risks.risks.

No individual in the company No individual in the company has any liability for the funds has any liability for the funds

employed.employed.



The entrepreneur is solely The entrepreneur is solely and fully responsible for his and fully responsible for his

funds.funds.

Said differently, you could Said differently, you could conclude that the conclude that the

entrepreneur has to be entrepreneur has to be reasonably sure of the reasonably sure of the success of his ideation.success of his ideation.

Whereas, failure of Whereas, failure of intrapreneurship probably intrapreneurship probably

just means the company has just means the company has a loss of profit from its other a loss of profit from its other

businesses.businesses.



Is an entrepreneur a Is an entrepreneur a manager?manager?

Yes.Yes.

Is a manager an Is a manager an entrepreneur?entrepreneur?

Not necessarily!Not necessarily!

There are just a few essential There are just a few essential differencesdifferences





EE MM

VentureVenture NewNew ExistingExisting

RiskRisk YesYes NoNo

RewardReward ProfitProfit SalarySalary

Contd.?Contd.? NoNo YesYes

StatusStatus Ind.Ind. Not Ind.Not Ind.

Pre-req.Pre-req. No qual.No qual. Qual.Qual.CreativeCreative



Qualities of an Qualities of an entrepreneurentrepreneur

InitiationInitiation Watching for Watching for opportunitiesopportunities Information seekerInformation seeker Quality consciousQuality conscious Commitment to workCommitment to work Efficiency loverEfficiency lover Proper planningProper planning Self confidenceSelf confidence AssertivenessAssertiveness PersuasionPersuasion Concern for employeesConcern for employees

• Clear cut objectives• Efficient business planning• Proper size, location & layout• Sound organisation• Financial planning• Marketing network• Executive development• Dynamic management• Human relations• R & D

Success in business


Definitions of small business in India:

• Small scale industries• Ancillary industries• Tiny units• Small scale service establishments• Household industries

Types of businesses


• Personal character• Closely held• Local area of operations• Labour intensive• Indigenous resources• Simple organisation• Limited scale of operations

Small business characteristics


• Competitive• Supplementary• Complementary• Initiative• Servicing• Jobbing• Merchandising• Anciliarisation

Relationship with large businesses


• Personal Impersonal• Local area Wider area• Labour int. Capital Int.• Small invest.Large Invst.• DecentralisedCentralised• Indep.mgt. Ownership

& Mgt. notrelated

Small Vs Large

Small Large


• Propr./Part. Joint stock• Uneconomic Economic • Unorg.labour Org.labour• Ltd.expansion Economy of scale and expansion

scopeSmall Vs Large

Small Large


• Manufacturing industries• Feeder industries• Serving industries• Ancillary to large industries• Mining or quarryingTypes of small

industries


• To generate immediate & large scale employment opportunities with relatively low investment• To reduce unemployment• To encourage dispersal of industries all over, particularly economically lagging regions

Objectives of small industries


• To bring backward areas into the mainstream of national development• To promote balanced regional development• To ensure equitable distribution of national income



• To ensure mobilisation of country’s untapped capital and human resources• To improve level of living of the people of the country



• Raw materials• Finance• Marketing• Underutilisation of capacity• Outdated technology• Poor project planning• Inadequate infrastructure• Absence of vertical growth• Quality consciousness• Cost structure

Problems of small scale industries


Year Units Prodn Empl. Exports

1977 2.96 14300 54.0 545

1992 22.35 209300 134.1 13660

1998 31.21 527515 171.6 49481

Prodn: Rs lakhsEmployment: LakhsExports: Crores

Growth of the small scale

sector in India


In most small businesses, the owner

himself acts as the Chief Executive,

and looks after more than onefunctional area.Management

process in small business


Planning process

It is the process deciding the objectives of the business and choosing the most appropriate

course of action.

It helps to – • Focus attention on objectives • Provides direction to decision

making• Assists in facing uncertainty and

change• Improves efficiency of operations,• Facilitates coordination and

control

Management process in small

business


Steps to systematic planning

• Mission statement• Analysis of external

environment• Analysis of internal

environment• Formulation of objectives• Development of action

plan• Execution and review of

plans


business


The organizing process

• Activities analysis- Production

- Marketing- Finance- Personnel

• Decisions analysis- Grouping tasks- Choosing organization

structure• - Relations analysis

Specific positions and activities are interlinked through the chain of command and horizontal relationships


business


Types of organisation structures

• Line organisation• Line & staff

organisation• Project organisation• Matrix organisationManagement

process in small business


Principals of a sound organisation

• Division of work• Unity of command• Parity between

authority and responsibility

• Scalar chain• Departmentalisation• Balancing between

centralisation & decentralisation

• Appropriate span• Human use of human

resources• Flexibility


business


Leadership & motivation

• Qualities of a good leader- Physical- Intellectual- Moral- Social

• CommunicationThe importance of feedback

• Controlling• Management of time


business


bba entrepreneurship

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