Entrepreneurship and new venture planning

Bcom 4 semester

1. ENTREPRENURSHIP AND NEW VENTURE PLANNING Name = anjali kumari Roll no. = 504 Neha rani Roll no =529 B.Com (prog) semester -4 2 nd year

2. ENTREPRENEUR The entrepreneur is defined as someone who has the ability and desire to establish, administer and succeed in a startup venture along with risk entitled to it, to make profits. The best example of entrepreneurship is the starting of a new business venture. The entrepreneurs are often known as a source of new ideas or innovators, and bring new ideas in the market by replacing old with a new invention. It can be classified into small or home business to multinational companies. In economics, the profits that an entrepreneur makes is with a combination of land, natural resources, labor and capital. In a nutshell, anyone who has the will and determination to start a new company and deals with all the risks that go with it can become an Entrepreneur.

3. CLASSIFICATION OF ENTREPRENEUR BASED ON THE BUSINESS TYPE 1) Trading Entrepreneur A trading entrepreneur refers to a person who undertakes business-related activities . These types of entrepreneurs usually buy finished products in bulk from manufacturers at some discount. They then sell these products directly or with the help of retailers or vendors with profits. A business entrepreneur usually acts as a middleman between manufacturers and customers . 2) Manufacturing Entrepreneur The founder of a business to manufacture products is known as a manufacturing entrepreneur. Manufacturing entrepreneurs analyze market needs or customer needs and manufacture products to meet such needs using various resources or technologies . 3) Agricultural Entrepreneur Agricultural entrepreneurs refer to the types of entrepreneurs who primarily do agricultural work. They participate in a wide range of agricultural activities such as farming, irrigation, agricultural produce, mechanization, technology, etc.  

4. Based on the Technology 1)Technical Entrepreneur Such entrepreneurs are called technology entrepreneurs who use to start and continue industries primarily based on science and technology. These entrepreneurs develop new ideas and turn those ideas into technology-based innovations and inventions.  2)Non-Technical Entrepreneur As the name suggests, entrepreneurs who do not set up and run enterprises based on science and technology are known as non-technical entrepreneurs. In short, non-tech entrepreneurs are those who work for innovations using traditional methods. They typically use alternative and exemplary marketing methods and follow non-technical delivery strategies to engage directly with customers.  Based on Ownership 1)Private Entrepreneur When an entrepreneur starts something personal of his or her own, such as setting up an enterprise, he/she is called a private entrepreneur . 2)State Entrepreneur When a state or government does a business or industrial undertaking, it is referred to as a 'state entrepreneur'. In this case, the government is the sole owner of the enterprise and will bear all the profits and losses involved with it.

5. 3)Joint Entrepreneurs--: When a business or industrial undertaking is established and operated jointly by the private entrepreneur and the government, it is called joint entrepreneurship. The parties involved are called joint entrepreneurs. Based on Gender 1) Men Entrepreneurs --: When any business venture is formed, managed and operated by men, these men are referred to as men entrepreneurs . 2) Women Entrepreneurs- -: When any business venture is formed, managed and operated by women, these women are referred to as women entrepreneurs. Besides, if women have a minimum 51 percent share of the capital, they can also be known as women entrepreneurs. Based on the Enterprise size 1) Small-Scale Entrepreneur --: If an entrepreneur has invested up to a maximum of 1 crore in starting an enterprise, including plant and machinery, such entrepreneur is called Small Scale Entrepreneur . 2)Medium-Scale Entrepreneur --: If an entrepreneur has invested a minimum of 1 crore to a maximum of 5 crores in starting an enterprise, including plant and machinery, then such entrepreneur is called Medium Scale Entrepreneur . 3) Large-scale entrepreneur -: The entrepreneur who has made investment in plant and machinery more than 5cr is called large scale entrepreneur.

6. Based on Clarence Danhof Study 1) Innovating Entrepreneurs --: Innovative entrepreneurs, also known as innovators, are the type of entrepreneurs who usually come to the market with new ideas or innovations. In particular, they create new products, find new production methods, create new markets and restructure the business . 2) Imitative Entrepreneurs- -: Imitative entrepreneurs or imitating entrepreneurs are often called 'copy cats'. This is because these entrepreneurs mainly follow and adopt the innovative entrepreneurs' existing successful enterprise system. They do nothing new of their own . 3) Fabian Entrepreneurs- -: Fabian entrepreneurs are defined as those types of entrepreneurs who generally do not seek to implement changes in their enterprise techniques. They are very careful in applying any approach and cautious in exercising any change.  4) Drone Entrepreneurs- -: Drone entrepreneurs are defined as entrepreneurs who do not like to adopt any changes in their enterprise techniques. They strictly follow their traditional strategies or methods for development, production or marketing.

7. Women Entrepreneurs Women Entrepreneurs means the women or a group of women who initiate, organize and operate a business enterprise. A woman entrepreneur is therefore a confident, creative and innovative woman desiring economic independence individually and simultaneously creating employment opportunities for others In the advanced countries of the world, there is a phenomenal increase in the number of self-employed women after the World War II . NEED -: They have made their mark in business for the following reasons : They want new challenges and opportunities for self-fulfillment. ( ii) They want to prove their determination in innovative and competitive jobs. ( iii) They want the change to control the balance between their family responsibilities and their business lives .

8. PROBLEMS FACED BY WOMEN ENTREPRENEURS IN INDIA 1) Family Responsibilities : In India the involvement of a women in the family leaves little time and energy for business. The success of a married women depends upon supporting husband and family. There arises a role conflict in many women entrepreneur . Such conflict prevent them from taking prompt decisions in business. (2) Social Attitude: Despite constitutional equality, there is a discrimination against women . In a tradition bound society, women suffers from male reservations about a women‘s role and capacity. In rural areas women face resistance not only from males but also from elderly females who have accepted inequality . 3 ) Low Mobility: Women on their own find it difficult to get accommodation in towns , One of the biggest handicaps for women entrepreneurs is mobility of travelling from place to place. (4) High Cost of Production: High cost of production is another problem which undermines the efficiency and restricts the development of women enterprises

9. ( 5) Lack of Education : In India literacy among women is very low. Due to lack of education majority of women are unaware of technological development, marketing knowledge , etc. Lack of information and experience creates further problems in setting up and running a business enterprise. (6) Low need for Achievement:  Need for achievement, independence and autonomy  are the pre-requisites for success in entrepreneurship. In the absence of the required urge to achieve , few women succeed as entrepreneur. (7) Shortage of Finance: Women entrepreneurs always suffer from inadequate financial resources and working capital. They are lacking access to external funds due to absence of tangible security and credit in the market. Women entrepreneurs also face the problem of obtaining working capital for financing day to day operation of their enterprise. 8) Inefficient Arrangement for Marketing and Data Marketing is another weak area for women entrepreneurs. Though they may be able to match the product quality and service levels as compared to male entrepreneurs, when it comes to aggressive marketing , they fall short. In order to market their product women entrepreneurs are often at the mercy of the middlemen who pocket the chunk of profit. Although the middlemen exploit the women entrepreneur, the elimination of middlemen is difficult because it involves a lot of running about (10) Stiff Competition: Many of the women entrepreneurs have imperfect organizational set-up . They have to face severe competition from organized industries and male entrepreneurs . (11) Lack of confidence and motivation: The education qualifications alone do not confidence . Invariably, the family members cause de-motivation.

10. EXAMPLE OF WOMEN ENTREPRENEUR   Aditi Gupta - Menstrupedia She is not only an entrepreneur but a social entrepreneur. The co-founder and author of the comic Menstrupedia, she’s played a vital role in educating pre-teens about what menstruation is, and more importantly what it is not. Where there are innumerable myths surrounding periods, Aditi Gupta’s initiative has debunked them for life . Vani Kola – Kalaari Capital A serial entrepreneur, Vaani Kola is a huge name in the venture capitalist market. Founder and MD of Kalaari Capital, which has over 200+ assets today, has been awarded as India’s Most Powerful Women in Business by both Forbes and Fortune magazines. Fondly known as the ‘Mother of Venture Capitalism in India,’ she has created a legacy for many more women to follow.

11. SOCIAL ENTREPRENEURSHIP Social entrepreneurship is the organization of a business around specific social and environmental causes, and can include both nonprofit organizations and charities and for-profit social enterprises . Social entrepreneurs differ from traditional entrepreneurs in that their main drive is to make a difference in the world or in their communities. They often have personal experience with the causes they support, which inspires their business’s mission . While traditional businesses might measure success in terms of market share or year-over-year revenue growth, social entrepreneurs are more likely to focus on metrics like jobs created, trees planted, or donations made to a charitable arm that solves the problem they’ve invested in . EXAMPLE - GRAMEEN BANK Grameen Bank is the most commonly cited example of successful social entrepreneurship. Along with its founder, Muhammad Yunus, the Bangladesh-based microfinance organization won the Nobel Peace Prize in 2006.Yunus understood that, due to predatory lending practices, people in poverty-stricken areas could not participate in their country’s economic systems. To build sustainable local economies, Grameen Bank provides small, collateral-free loans to people in rural communities who want to start their businesses.These microloans enable borrowers—many women—to use their skills to generate income and become financially independent. With more capital flowing through these communities, local economies can grow. On the business side, thanks to the success of the loan structure, Grameen Bank has expanded its reach with over 2,500 branches

12. 1. Curiosity -: Social entrepreneurs must nurture a sense of curiosity about people and the problems they face. The best social entrepreneurs seek to truly understand the needs and desires of the people they serve. Great social ventures often start through  immersive market research , an empathy-centric process through which social entrepreneurs gain knowledge in the field. Example : The founders of  Shakti Apparel  launched their venture after working with villagers in rural India and learning about their lifestyles . 2. Inspiration -: In order to design effective solutions, social entrepreneurs must be inspired by the people and problems they encounter. Inspiration motivates action and helps social entrepreneurs tackle challenges that others shy away from addressing. Example : When he learned that his blind friend had no way to tell time, the founder of  Eons  set out on a  mission to design an effective solution  to his friend’s problem 3. Resourcefulness -: Social entrepreneurs often lack the strong support offered in the business world of access to capital and market support systems due to their interest in the social context rather than profit generation for  shareholders  and other stakeholders. They need to be skilled at persuading others to agree with their ideas and support their ambitions through financial, political, and other means . 4 . Mission-driven -: Social entrepreneurs often focus on generating social value and focus less on  profits  and revenue. When profits are generated, they are put back into supporting the social mission of the organization. While profit is an important objective of the organization, the money is used towards furthering the social cause and objective. Key characteristics of social entrepreneurships

13. What is Corporate Entrepreneurship? Corporate entrepreneurship, also referred to as intrapreneurship, is a concept whereby employees are encouraged and supported to behave and think like entrepreneurs within the structure of their existing organisation. Employees who possess the right skill sets and have innovative visions are actively encouraged to develop new ideas and identify new market opportunities. Eventually this entrepreneurial process should result in new business deliverables like new products, services or even new arms of the business. Ultimately the goal of any corporate entrepreneurship is to develop ideas which are disruptive to the market and competitors, as opposed to focusing on smaller organizational changes. The projects must also be led and developed by select employees, instead of pressed upon by managers

14. CHARACTERISTICS OF A CORPORATE ENTREPRENEUR ●     Courageous and confident : Corporate entrepreneurs are often willing to challenge the status quo, look at things from different angles, and suggest new ideas. They’ll also possess the confidence to take risks in order to try new things, or learn from mistakes. ●      Curious and open minded : Corporate entrepreneurs are curious about everything. If you hear an employee asking “Why is Product X like this?” Or “What can we do to improve the Y aspect of product Z?” you’ve probably found the correct mindset. ●      Not driven by financial motives : Corporate entrepreneurs rarely pursue financial motivations. Instead they’re just openly passionate about transformation, challenge and innovation. They also may care openly for the business’s consumers, so will look for ways to benefit lives . ●      Resilient:  Corporate entrepreneurs know that not every idea is a winning idea, but they see failures as lessons to learn from and improve the next time.