concept of e-ship

7/27/2019 Concept of E-ship

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1. CONCEPT OF ENTREPRENEURSHIP

A. Introduction

Changing business scenario is governed by 3 driving forces

Competition, change and Customer

Economic reforms in India were initiated to move the economy to higher growth plane by

relying more on market oriented processes.

Primary objective of a country like India is to achieve rapid, balanced and sustained rate

of economic growth.

12 trends affecting the direction of economic growth are.

Technology as a reservoir

Competition in domestic and international markets

Role of inventions Government as stimulator

Entrepreneurial and Intrapreneurial development.

Innovative capital formation

Active financial sector

Progressive management

Quality as a goal

Supremacy of the customer

Collaborative relationships

Man is crucial to economic development than other economic factorsIndustrialization is one of the important means to usher economic and social

transformation in developing countries.

Industrialization results fro interaction of technological change, innovation,

entrepreneurial growth, specialization and trade.

Entrepreneurs are the backbone of a nations progress.

They organize the factors of production, create wealth and generate employment.


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B. Concept of entrepreneur

Derived from French word Entreprendre-To undertake.

New encyclopedia BritannicaEntrepreneur is an individual who bears the risk of operating a business in face of

uncertainty about the future conditions.

Joseph A Schumpeter

The Entrepreneur in an advanced economy is an individual who introduces somethingnew in the economy-

A method of production not yet tested by experience in the branch of manufatureA product which the consumers are not yet familiar

A new source of raw material

New market

An Entrepreneur is one who innovates, raises money, assembles inputs, choosesmanagers and sets an organization going with his ability.

Innovation occurs.1. Introduction of new quality in a product

2. A new product.

3. Discovery of fresh demand or a fresh source of supply.4. Changes in the organization and management.

An Entrepreneur in a developing country is one who starts an industry (Old or new),

undertakes risks, bears uncertainties and also performs managerial functions likedecision-making and coordination.

Ricardo

Entrepreneurial ability is an independent factor of production and profit is reward for

entrepreneurial ability.

Peter Drucker.

Entrepreneurs are innovators. Entrepreneur is one who always searches for changes,

responds to it as an opportunity.

According to Drucker 3 conditions to be fulfilled1. Innovation has to be market driven

2. Innovation is work.

3. Innovation must be built on the strength to succeed.

New concept of Entrepreneur

One who detects and evaluates a new situation in his environment and directs the makingof such adjustments in the economic systems as he deems necessary.

He conceives the idea of an enterprise displays considerable grit, initiative and

determination in bringing his project to fruition and in this process performs following

functions


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1. Perceives opportunities for profitable investment

2. Explores the prospects o\f starting such a manufacturing enterprise.3. Obtains necessary industrial licenses.

4. Arranges initial capital.

5. Provides personal guarantee to financial institutions.6. Promises to meet the shortfalls in the capital.

7. Supplies technical know-how.

Social Responsibility is a part of entrepreneurial outlook of life.

Key elements of EntrepreneurRisk taking

Vision

Values

CharacterInnovation

Organising skillEthics

All this leading to operational excellence.


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C. Concept of Entrepreneurship.

Process undertaken by the entrepreneur to establish a business.

Resultant mix of many qualities and traits like imagination, readiness to take risk andability to bring together and put to use the factors of production

Entrepreneurship. is the propensity of the mind to take calculated risks with confidence toachieve a pre determined business or industrial objective.

It is the risk taking ability of an individual coupled with correct decision making.

CONCEPT OF ENTREPRENEURSHIP.

Entrepreneur Entrepreneurship. Enterprise

Person Process of action Object

A.H Cole

Entrepreneurship is a purposeful activity of an individual or group of individualsundertaken to initiate, maintain or increase profits by production or distribution of

economic goods or services.

Peter Drucker

Entrepreneurship is neither science nor art. It is a practice and has a knowledge base.

Knowledge in Entrepreneurship is a means to an end that is by practice.

B C Tandon.

Entrepreneurship means function of creating something new, organizing and

coordinating, undertaking risks and handling economic uncertainty.

Thus

Entrepreneurship. Is the process of creating something new with value by devoting

necessary time an effort, assuming the accompanying financial, psychic and social riskand receiving the resultant rewards of monetary and personal satisfaction and

independence.


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EMERGENCE OF THE ENTREPRENEURIAL CLASS

During earlier times Indias prosperity attracted communities across boundaries

Strategies adopted by Mughals and TurkishTurk Mughals settled down in India and shared the prosperity. . They boughtcurrency with them and disrupted the barter system

Strategy of the British

Wanted to offload surplus supply due to Industrial Revolution in India to balance

the demand and supply situation in U.K

Managed to acquire power and became the ruler.Banned manufacturing in India. Sent all raw materials (cotton, oilseeds etc) to UK

for conversion and value addition thus transferring wealth to UK

18th CenturyIndian Industry remained non started. Major thrust was on cash crops neglectingfood grains resulting in severe famine.Indian Economy was dominated by British

economy.

1920

World war prevented transfer of raw materials to Manchester. British decided to

manufacture in India itself . Initiated the first Indian Industry. The MumbaiTextile Mills

1930s to mid 1940s

Mahatma Gandhi directed his captains to set the basic Infrastrure for Industrialand Economic development. Theses are the founder entrepreneurs of India. They

developed various areas of basic infrastructure.

a)JRD Tata: Aviation, steel, railway, post & telegraph, power, roads, textile etc

b)G.D Birla-Textgile, vehicles, power, cement, chemicals, heavy industries,aluminum, cement etc

c) S. L Kirloskar-Machine tools, farm equipments, pumps etc

d) Jamnalal Baja-Two wheelers, 3 wheelers etc

Independence 1947

British went back leaving the business to their employees/agents/marketintermediaries.

Late 1960s

Nationalisation of banks and Insurance companies made available huge funds forSSI and entrepreneurial developemt.It made investment available to common man

challenging business monopoly


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1970s to mid 1985

Emergence of new generation entrepreneurs because of funds and supporting govt

policies.Technocrats , artisans , rural craftsman, educated, uneducated youngsters created

the greatest ever SSI development.

Resulted in excellent interdependence of SSI ands organized sector creatinghighest ever growth rate of 8.9% and very high addition to GDP.

Organised sector could expand, diversify without any direct investment and SSI

could share the prosperity.

Mid 1980s

Indian industry remained protected by license raj, permits, quotas, monopolistic

market resulting into losing export and entry of cheaper better goods in graymarket(Germany & Japan) resulting in worse BOP Situation and industrial

sickness. Closure of several industries in organized sector.

1990sLiberalisation sets reforms rolling by scrapping export regulations.Delicensing,

making import and export simpler, direct FDI in all sectors, concessions for

technical know-how and collaboration. Indian entrepreneurship started.

Mid 1990s

Third generation of entrepreneurs Rahul Baja, Mahindra, Ambani, Ratan Tata,

Kumarmangalam Birla proved their competencies in managing various largecompanies

2000

Indian Entrepreneurship took great leap in the global market entering in to serviceIndustry (IT, BPO, Bio Technology, hospitality etc)

India established leadership in several areas-Bajaj-Largest manufacture of 2 wheelers

Ambuja cement-cheapest manufacturing of cement

Job market is changing; Companies are passing through highly unstable phase. It

may call for drastic changes in their business form that will lead to change in theemployee pool. Jobs and remuneration eill be more result based. Thos will

demand high enterprising capabilities and entrepreneurship attitude.


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THEORIES OF ENTREPRENEURSHIP

Theory of High Achievement3 Basic Needs

Need forachievement Need for affiliation

Need forrecognition

McClelland identified 2 characteristics of Entrepreneurship.

1. Doing things in a new and better way

2. Decision making under uncertainty

Achievement orientation is defined as tendency to strive for success in situation involvingan evaluation of ones performance in relation to some standards of excellence.

Need for achievement is needed for successful entrepreneurs.

People with high achievement are not motivated by money alone. Money is just a

measure of success for them. Highly successful entrepreneurs have high need forachievement. They do things that make them stand out and what to achieve things not

done before.

They strive hard to achieve. Take failures as learning experience and bounce back

Dynamic Entrepreneurship Innovation theory or Schumpeters theory of creativedestruction

Was not widely accepted in 1930,s as dominance of sellers market

Theory was only mere fancy till 19990 when mega corporates failed due to overemphasis on operation which worked well in past.

The theory advocates discontinuance of anything organsiation/product/service/philosophy

which has worked well in past.Advocates change by creative destruction in response to market condition

Theory advocates the age of discontinuity and more on formulating the right questionsand then the right answers for survival.


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CHARACTERISTICS OF ENTREPRENEURS

DecisionMaking Accepting Challenges Organisation

Skillful management

Risk Taking

Innovation Entrepreneurship Making the enterprise asuccess

Characteristics

1. Mental Ability-2. Clear objectives

3. Business secrecy

4. Human relations ability5. Communication ability

6. Technical knowledge

7. Long term involvement8. High energy levels

9. Administrative ability

10. Need for Independence11. Dignity of labour

12. Social consciousness

QUALITIES OF AN ENTREPRENEUR

Hardworking

Energetic

ResourcefulVisualizes change

Planner and believes in systematic work

Motivation towards achievementCreative

Clarity

Confidence

DreamerInstinct


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FUNCTIONS OF AN ENTREPRENEUR

Risk TakingBusinessdecision

ManagerialFunctions

Function ofinnovation

Reducesuncertainties byinitiative and skill

judgment Location

Formulateproductionplans New goods

Bears losses

Techniquesof

production

Organises

personnel New markets

Changes inBusiness

Arrangefinance

New sourceof rawmaterial

ROLE OF CULTURE IN ENTREPRENEURIAL DEVELOPMENT

Perception that starting new venture is desirable stems from an Individuals

culture, subculture family and peers

A culture that values an individual who creates an enterprise will spawn more

venture formations American Culture-independence, individual opportunities, making money

More individuals plan new enterprises in these supportive environments.

REWARDS AND MOTIVATION OIF ENTREPRENEUR

Independence

Money

Job Satisfaction

CHANGE IN LIFESTYLE

Decision to leave secure career is not easy

R & D and marketing, main areas for new venture

Role of disruption-Retirement, relocation, been fired, completion of educational

degree.


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TYPES OF ENTREPRENEURS Business Entrepreneur

Trading Entrepreneur

According to type ofBusiness Industrial Entrepreneur

Corporate Entrepreneur

Agricultural Entrepreneur

According to use oftechnology Technical Entrepreneur

Non Technical Entrepreneur

Professional Entrepreneur

According tomotivation Pure Entrepreneur

Induced Entrepreneur

Motivated Entrepreneur

Spontaneous Entrepreneur

According toGrowth Growth Entrepreneur

Super Growth Entrepreneur

According to stagesof development 1st Generation Entrepreneur

Modern Entrepreneur

Classical Entrepreneur

Others Innovating Entrepreneur

Imitative


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Entrepreneurial Process

Stage 1. Change in socio economic environment in the country leading to want of newgoods and services

Stage 2. Starting a new Venture

Stage 3. IntrapreneurshipStage 4. Coordinating various activities to achieve entrepreneurial goal

Or.

Identify and evaluate the opportunity

Developing the business plan

Determine resources required

Manage the enterprise

Entrepreneurial decision process

Change from Presentlifestyle-workEnvironment andDistruptions

Form NewEnterprise

Desirable

Cultural

Sub cultural

FamilyTeachers

peers

Possible

Government

Background

Marketing

Financing

Role Models

concept of e-ship

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