|
 

 

 O
 |
 
@ Capacity to take risks
@ Ability to own and organize
@ Desire and capability to innovate and diversify



 O   
 
@ Gerson conducting own business 

@ Gerson who sets up business deals in order to
make profits 
@ ^rganizer of an economic venture, one who
owns, organizes, manages, and assumes the risks
of the business 
 O 
 
@ Grocess of creating something different, with
value, by devoting necessary time and effort, by
assuming the accompanying financial,
psychological, and social risks, and receiving the
resulting 




 !
 Ñ 
 |
 
@ An innovator who combines technical innovations and
financial finesses.
@ Important role in producing competitive products,
processes, and services.
@ Generation of new employment
@ Local and regional economic development
@ Improved allocation of resources and transfer of
technologies
 |
    |  
 
@ Introduction of new goods and products
@ Introduction of new processes and methods of
production
@ ^pening up of new markets
@ ^pening up of new sources of supply
@ Industrial re-
re-organization
 ¦

  
  

¦ ¦ ¦

¦ 
@ ¦ignificant contributions to national income,
employment, and export earnings
@ Value of output over Rs. 5,70,000 crores
@ Employment of over 17.5 million (> twice the private
sector; almost as much as all public sector employment)
@ Exports of over Rs. 54,000 crores (> 35 per cent of all
exports) """
"""##" $
 |
    ¦ 
 
@ Entrepreneurship is especially critical in small
businesses because:
@ Important sources of competition for large firms;
challenge their economic power
@ ^ffer a wide range of choice to consumers
@ ¦ources of innovation and creativity
@ Good career opportunities to work in an unstructured
environment of a small company


 
  

@    
@ Demographic, social, economic, political, and
competitive factors in market environment
@ Gsychological, social, and economic patterns in
customer motivations
@ All autonomous factors


 
  

@ ¦    
¦ 
@ arket segmentation
@ Customer behavior
@ ^nly partially under the control of the
entrepreneur


 
  

@  
@ Groduct characteristics and pricing
@ Distribution and personal selling
@ Advertising policies
@ ostly under the control of the entrepreneur


 
  

@ xhe essential entrepreneurial function in
marketing management is to design an
integrated marketing plan, where the demand
and semi-
semi-demand variables of the market are
related to the product and decision variables of
the firm.


Ñ
@ arketing success depends on design of a distinctive
marketing plan
@ A small entrepreneur should not try to compete on a
product--to
product to--product basis with large firms (same goods
to same customers thru same channels at same prices !!)
@ Instead, try to do D
$
%!
 ^
 
  

@ Grocess of designing and utilizing the physical
resources of the firm to maximize the
operational capabilities of the company
@ Groduct/ service design
@ Grocess design
@ Job design
@ Job standards
 ^
 
  

@ xhe entrepreneur·s smaller firm generally has to
provide specialized, few-
few-of-
of-a-kind products and
personalized services, without the benefits of
mass production and mass distribution
    
  

@ 1. Effective utilization of the assets-
assets- current(short-
current(short-term)
and capital (long-
(long-term)
@ 2. Grovision of funds to support those assets
@ 3. Use of current liabilities, intermediate loans, and
capital debt or equity
@ 4. Difficult for smaller companies to compete, in
finance, with larger firms, simply because they lack
money.
    
  

@  inances needed for:
@ 1. New investments in product development
@ 2. Expansion of markets
@ 3. Grocess improvements, etc.
@ Conserve available funds by preparing detailed financial
plans, e.g. cash budgets, capital investment analysis,
short--term plans
short
    
  

@  inding additional funds from sources as
@ 1. Current liabilities
@ 2. Bank loans
@ 3. Equity investments
@ 4. Retained earnings
@ 5. Venture capital proposals
@ 6. Angel funding proposals
 
 

@ Improvements in design of existing product
@ Inventions of new products
@ Lack resources for full R&D facility
@ ust use available capabilities efficiently
@ ^utsourcing of R&D and innovation
@ xechnical feasibility, market feasibility, development
time and cost, manufacturing capability, and strategic fit
 ^ 
 
  

  

@ ¦maller companies go thru identifiable stages of
growth
@ Increased specializations in tasks of staff
@ Increased delegation on part of founder
@ Increased systematization and formalization of
information reporting and accounting
procedures
   
   !"

@  ormal and legal procedures of formation-
formation-
memoranda and articles of association
@ ¦ole proprietorship
@ Gartnership
@ Grivate limited
@ Gublic listing
@ Cooperative
   
   !"

@ Gurchase of a small company-
company- identify, screen,
evaluate, negotiate, and structure payments
@ Consolidation of a new company-
company- intense
conservation of cash, firm limitations on
expenses, continual examination of company·s
strategy.
   
@ Entrepreneurship is a challenging and rewarding
profession
@ Need to concentrate on market analysis, financial
resources, and technology management
@ Cannot compete directly with the ´big guysµ, so need
to be ingenious and innovative in all entrepreneurial
functions