Orientation

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Orientation To ENTREPRENEURSHIP
Yogesh Misra, Faculty of Engineering
Technology Mody Institute of Technology Science
(Deemed University) Laxmangarh Raj.
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• Contents
• Occupation
• (2) Businessman / Business vs Entrepreneur /
  Entrepreneurship
• (3) Characteristics of entrepreneur
• (4) How to start a business?
• (5) Steps in writing a business plan
• (6) Do,s and Dont dos
• (7) Facts based on A Study by National Knowledge
  Commission
• (8) Some success stories
• (9) Some exiting careers
• (10) Role of government
• (11) Role of academic institutions

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A professional is person who is paid to
undertake a highly skilled task. Examples
medicine, nursing, law and  engineering 
Professional
A person in the service of another under
any contract
Employee
Occupation (An activity through which we get
income to run our family)
A businessperson is someone involved in a
activity for the purpose of generating revenue
Business
An entrepreneur is an owner manager of a business
enterprise who makes money through innovation
Entrepreneur
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ENTREPRENEURSHIP
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Characteristics of entrepreneur

• Information seeking
• Learning nature
• Goal setting
• Commitment to work
• Systematic planning and monitoring
• Moderate risk takers
• Most important INNOVATIVE IN NATURE

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Some advantages Some disadvantages

• Will need to put in long hours.
• Need money to start.
• Have to keep up with
• government rules and regulations.
• May lose money.

• You are your own boss.
• Enjoy the profits from your efforts
• Sense of pride in your business.
• Flexibility in your work schedule.

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Businessman / Business Entrepreneur / Entrepreneurship
1 Own an enterprise or venture Own an enterprise or venture
2 Usually a profit oriented Usually a customer oriented
3 Usually plays safe Bold and ambitious
4 May be purchased, donated or inherited Creates his own idea and realize it as a business
5 Generally traditional Generally innovator
6 Usually dont have time for their families and love ones Shares enough time with their families and love ones
7 Usually distressed and experiences sleepless nights Always a happy and enthusiastic businessman
8 Works for the Company Company works for him
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• ENTREPRENEURSHIP IN INDIA
• Rapid growth in past 20 years
• Entrepreneurship Environment - Economic
  libralization, end of license raj and easily
  accessible of finance.
• Survey by the Deloitte group - India ranks 2nd
  globally
• India - Leading economies by 2050.
• A democratic open society, a strong technology
  base, an increasingly youthful population (50 of
  India is 25 years and younger), a sizeable market
  of a large number of customers.
• In this situation, India enjoys enormous
  potential for the creation of wealth through
  knowledge.

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Building a successful venture
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How to Start a Business

• Step 1 Get Inspired
• Step 2 Do Your Research
• Answer these questions in your market research 
• Is there a need for your products/services?
• Who needs it?
• Are there other companies offering similar
  products/services now?
• What is the competition like?
• How will your business fit into the market?
• Step 3 Make a Plan
• who fails to plan, plans to fail
• It gives clarity about what we want to achieve
  and how.
• It helps in seeking financial support from an
  investor or financial institution
• Step 4 Plan Your Finances

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How to Start a Business
Step 5 Choose a Business Structure Step 6 Pick
and Register Your Business Name Step 7 Get
Licenses and Permits Step 8 Set Up Your
Business Location Step 9 Choose Your Accounting
System Step 10 Promote Your Small Business
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STEPS IN WRITING A BUSINESS PLAN
(1) EXECUTIVE SUMMARY (2) COMPANY
DESCRIPTION (3) PRODUCTS / SERVICES (4) MARKET
ANALYSIS (5) MARKET STRATEGY (6) MANAGEMENT
SUMMARY (7) FINANCIAL ANALYSIS
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(2) COMPANY DESCRIPTION (The company description
outlines vital details about your company, such
as where you are located, how large the company
is, what you do and what you hope to
accomplish) Company name (use Ministry of
Corporate Affairs www.mca.gov.in) Ownership/manag
ement team  Location Company history Mission
statement Products/services and target
market Objectives Vision statement
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MISSION A clear statement that represents the
purpose of your company. Why are you starting
this business? VISION What are you creating?
What will your business look like in one year,
three years, and five years? OBJECTIVES ( Set
goals for the business) Goal should
be Specific Measurable With in
reach Time-based
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• (3) PRODUCTS / SERVICES
• (The products or services section of your
  business plan should clearly describe what
  products and/or services you're selling with
  emphasis on the value you're providing to your
  customers or clients)
• This section can be broken down into following
  parts
• Brief comparison to similar products or
  services in the market
• ii. List of your price points

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(4) MARKET ANALYSIS This section should
include following parts Industry Description
Detailed statistics that define the industry
size, growth rate and trends. Target Market
Who is your ideal customer? Age, gender, income
level and lifestyle of target customers. How you
intend to reach the market. Competitive
Analysis Who is in your competition? What are
the strengths and weaknesses of the competition?
What are the potential roadblocks preventing you
from entering the market?
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(5) MARKET STRATEGY (This section can be
used as a blueprint for all of your marketing
activities) (I) Product  (i) Brand name (ii)
Packaging (iii) Quality and Warranty (II)
Promotion  (i) Advertising and Marketing
budget (ii) Promotional strategy, Publicity and
public relations (iii) Sales force and Sales
promotion (III) Price  (i) Pricing flexibility
Pricing strategy (ii) Retail price, Seasonal
Price and Wholesale (volume) price (IV)
Place  (i) Distribution centers and
Distribution channels (ii) Order processing and
Transportation
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(6) MANAGEMENT SUMMARY (This section
demonstrates expertise of the team and resources
behind your company) This section should
include following parts (I) Business
Structure  (II) Management Team (III) Other
Personnel  (IV) Personnel Growth Plan  What
are the salaries of each person to be involved
with the company for the next three years?
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• (7) FINANCIAL ANALYSIS
• (This section should contain the data for
  financing your business now, what will be needed
  for future growth, and an estimation of your
  operating expenses)
• This section should include following parts
• Balance Sheet 
• (II) Profit and Loss Analysis
• (III) Personnel Expense Forecast

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• (1) EXECUTIVE SUMMARY
• (The executive summary is the first section of
  your small business plan that is typically
  written last. It provides an overview of all of
  the other sections in the business plan)
• Executive summary should highlight at least
  one important statement from each of the
• other sections in your business plan.
• II. If the reader only reads the executive
  summary, he or she should have a very clear
• idea about your business, your goals and
  your strategic plan for accomplishing your
• goals.
• III. The executive summary should also include
  basic information about your business
• such as your business name and location,
  description of your business and its
• products and/or services, your management
  team and mission statement.

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Enthusiasm without knowledge is not good a
person who moves too quickly may go the wrong
way. Dos DON'TS

• Start saving money for operating your business.
• Learn your business by working for someone else
  in the same business first.
• Consider the advantages of operating a family
  business.
• measure your skills and training against
  potential competition.
• Test market your product or service before
  starting or expanding.
• Make "for" and "against" list describing the
  business you are in or considering.
• Talk to lots of people for advice.
• Make a comparative analysis of all opportunities
  you are considering.

• Quit your job before you have completed start-up
  plans.
• Consider operating a business in a field you do
  not enjoy.
• Risk all the family assets. Limit your
  liabilities to a predetermined amount.
• Be in a hurry to select a business.
• Select a business that is too high a risk
• Neglect to learn the negative aspects of an
  intended business.

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QUESTIONS (Q) What motivates a person to become
an entreprenuer? (Q) Does motivation to become
an entreprenuer is different in male and
female? (Q) Does motivation to become an
entreprenuer vary with the age? (Q) Does
motivation to become an entreprenuer vary with
the experience? (Q) Which one is most suited
finance option for entreprenuers? (Q) What is
the importance of education for an an
entreprenuer?
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Some Facts Based on a Study by National
Knowledge Commission (2008)
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Entrepreneurship Pyramid in India (in terms of
sectors and numbers of people engaged)
Level 1 Agriculture and other activities Crop
production, Plantation, Forestry, Fishing,
Mining, etc. Level 2 Trading services Wholesale
and retail trade. Level 3 Old economy or
traditional sectors Manufacturing. Level 4
Emerging sectors IT, Finance, Insurance and
Business services, Construction,
Transport-Storage-Communications etc.
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Registration of new companies according to nature
of economic activity
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Motivation to become an entrepreneur
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Motivation Variations according to gender
For female entrepreneurs the most important
motivating triggers are Independence 25
Identification of a
marketable idea 25 For male entrepreneurs the
most important motivating triggers are family
background 24
Independence 21
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Motivation Variations according to age
For entrepreneurs less than 35 years age the most
important motivating triggers are Market
opportunity 27
Independence Family background 22 For
entrepreneurs greater than 35 years age the most
important motivating triggers are Independence
Family background 23 Idea driven 22
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Motivation Variations according to work
experience

• Among those who had work experience, 53 started
  enterprises in fields related to those in which
  they had previously worked.

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Start-Up Phase Finance
An angel investor is an rich individual who
provides capital for a business start-up, usually
in exchange of ownership equity. 
Sources of self-finance
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Bank Finance at different stages of business
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Importance of Education for Entrepreneurship
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Importance of Education for Entrepreneurship
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Importance of Education for Entrepreneurship
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Some Innovations

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Bhagwan Singh Dangi (Reaper windrower machine)
Madhya Pradesh
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N Sakthimainthan (Hand operated water lifting
pump) Tamil Nadu
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Radhey Shyam Sharma (Bullock operated sprayer)
Madhya Pradesh
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M. Nagarajan (Lemon cutter) Tamil Nadu
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Swayambhoo Sharma, Madanlal Kumawat,
Chandan Agarwal(Modified hand pump with tap and
attachment for filling animal trough)
Rajasthan/Delhi
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CA Vincent (Floating soap) Kerala
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Brahmam, Ajmeri (gas-operated iron)
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Remya Jose (Washing-cum-exercise machine) Kerala
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Abhishek Bhagat (Automatic Food Making Machine)
Bihar
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Some Success
Stories
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Infosys
Mr. Narayan Murthy
(1) Started in 1981 by seven people (2) Start-up
investment US 250 (3) 65 offices and 59
development centers in India, China, Australia, ,
Poland, UK, Canada and Japan (5) Total
employees 127,779 employees as on December 31,
2010.  
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Lizat Papad
(1) The organisation started of with a sum of
Rs.80. (2) Founded by 7 sisters in Mumbai. (3)
Now 73 Branches and 27 Divisions in different
states all over India. (4) Sales of
over Rs.650 crores with exports itself exceeding
Rs. 29 crores. (5) Over 42,000 sisters
working in organisation .
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• Dabbabala
• Originated by Mr. Mahadeo Havaji Bachche with
  about 100 men.
• Started in 1890
• Total area coverage 60 Kms to 70 Kms
• Employee Strength 5000
• Number of Tiffin's 2,00,000 Tiffin Boxes i.e
  4,00,000 transactions every day.
• Time taken 3 hrs

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Bansal Classes Pvt. Ltd.

• Started by Mr. V K Bansal in 1981 with one
  enrolled student
• 2. Bansal Classes has produced more than
  12000 IITians

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Founded By Mr.Karsanbhai Patel

• Finished his B.Sc. in Chemistry at age 21 and
  worked
• as a lab technician.
• (2) In 1969 set up Nirma .
• (3) Total employee 14,000 (in 2004).
•  
• (4) Turn-over Rs. 2500 crore.

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Started on 18
August, 1973 Mansukhbhai conceived an idea of
presenting a substitute of Pan
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Shahnaz Husain
(1) Started in1977 from her house. (2) Start-up
investment of Rs 35000. (3) Presence in
over 100 countries 650 salons around the
world (in 2002). (4) Employing about
4200 people. (5) The net worth of the Group
was 100 million.
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Kiran Mazumdar-Shaw

• Started M/s Biocon Ltd. in1978 from her garage.
• (2) Start-up investment of Rs 10,000.
• (3) 7th largest biotech employer in the world

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Subroto Roy
(1) Founded SAHARA group 1978 started with
three workers (2) Small deposit para-banking
business. (3) Today having presence in housing,
entertainment, media and aviation.
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Ekta Kapoor
Started her television software business at the
age of 19.
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Sunil Mittal

• In 1970s, he set up a small bicycle
• business in Ludhiana.
• (2) In 1986, incorporated Bharti
• Telecom Limited (AirTEl)

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Sabeer Bhatia
(1) July 4, 1996, first email service by
HOTMAIL. (2) In 1997 Microsoft purchased HOTMAIL
in 400million.
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Some Exiting
Opportunities
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Copywriters
(1) Prepare text for advertisements, marketing
brochures, press releases, TV and radio
commercials, catalogs and packaging labels,
etc. (2) Writing talent. (3) High demand, as
most business owners do not possess the skills
and time to prepare highly effective copy. (4)
Alliances with advertising agencies, graphic
artists and public relations firms.
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Alcohol Free Club
The benefits include Less investment capital
required to start and operate the business.
Fewer government regulations, and substantially
lower liability insurance premiums. Less
competition within the industry, and a clear
definition of the target market. Increased
choices in terms of operating location.
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Health Taxi
(1) Purchase, lease or rent a suitable mode of
transportation. (2) Contact local doctors.
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Self Defence

• Potential customers Kids, students, single
  mothers, housewives, executives traveling
  overseas, government employees, celebrities,
  sports figures, politicians, school teachers ,
  security guards, etc.
• (2) Training can be conducted in a group format
  or on a one-on-one basis at your school location
  or the clients locations, including their homes,
  businesses, or offices.

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Stress Management
(1) Target customers are individuals seeking to
reduce or eliminate stress from their daily
lives. (2) Corporate clients. (3) Business
place Home, rental office or client's business
or home location.
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Role of Government (1) Information source for
start-up entrepreneurs. (2) World-class
infrastructure. (3) Public Fund for new
entrepreneurs. (4) Polices to encourage
innovation among smaller institutions
and companies. (5) Recognition and reward for
Entrepreneurship.
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Role of Educational Institutions (Entrepreneurshi
p is treated as an extra-curricular activity,
resulting in a narrow impact on limited numbers
of students) (1) Integration of subjects
on entrepreneurship in the formal education
systems (2) Case studies of real life
situations in the curriculum. (3) Linking
vocational education with mainstream
education. (4) Student-led activities related to
entrepreneurship in campus. (5) Business plan
contests. (6) Industry-Institute interaction.
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Thanks