Professional Documents
Culture Documents
Entrepreneurial Skills
Entrepreneurial Skills
AWhat is Entrepreneurship ?
Business vs. Entrepreneurship
1.1 Introduction
varying trom negligible to small
In our day to day lives, we often encounter many problems,
encounter are personal in nature and
to large problems. Sometimes the problems we national in nature. Sometimes we
sometimes the problems are societal, environmental or
are created or such services
know that this problem can be solved if such and such products
it ? There is a quote by one
are provided. We know the solution, but how many of us develop
Naveen Jain that says,
of the most successful Indian born American entrepreneur
A.170
Sessionl :WHAT ARE ENTREPRENEURSHIP AND BUSINESS? A.171
Entrepreneurs are not;ob seekers. Instead, they are job providers. They play an important role
inemployment generation in the country. Any country's GDP and economy depend on their
entrepreneurs. Growth in entrepreneurs leads to growth in development of the country. That
is why our government is highly promoting entrepreneurship. Our PM says that today's
youth wants to be job creators and not job seekers. They want someone to believe in them.
he government's initiatives and support, we see new startups
coming every
Ydav. (As per Times of India 's Sept. 2021 article, India is the 3rd largest startup ecosystemmonth,
in the
world after US and Clhina).
Developing a
business plan DEF.
The business set up by an
Discovery Entrepreneurial Resourcing entrepreneur is called
process : enterprise.
Harvesting Managing
company
wORK WwITH US
DISRUPTION THE TRIRE
MIMYK
THE FAMILY
The family
sttle o t s i i l .Bengalutu
Mimvk is a spin off ftom the tedhnolegis le
i1nersive nedical snulation
le n0rk on developung platforIms.
build next gen simulation
combine harduare and Software to
endoscopv simulation plattorm.
The cuTent focus at Minvk is an
Orientation/emphasis Profit
Solving a people problem
Competition Very high Low
S
n
2
Types and Fields
for Entrepreneurship
Oyectves
A Type of Fields where One
can be
Entrepreneur
A Product bosed A Service based
A Technology based
2.1 Introduction
So now vou know what is entrepreneurship ? How is it
similar or
How is an enterprise different troma startup and so on ? Let us takedifferent
from a business?
this journey further and
talk about what are different categories of fields/areas where one can start
his/her own
ventures; and how these are similar or different from one another.
22 Type of Fields where One can be Entrepreneur
You know that both a business and an enterprise are involved in some tvpe of commercial
activity. Both these can belong to different types of fields or categories.
Broadly an enterprise or a business can belong to one of the following categories :
() Product based (ii) Service based (üi) Technology based
2.2.1 Product based Enterprise/Business
A product based enterprise or business basically deals with a specific type of product that
carry out aspecific type of job. For example, Benzo has created a padlock that can be opened
with akey as well as biometrically using a finger print. DEF.
He has patented his design and now a company has
bought license from him so as to produce padlocks based Product based enterprises/
on his design, which would be available in the market. :businesses are based on actual
The company will be manufacturing the padlocks which goods/products, which are
later willbe sold by traders in the market. This is product tangible, i.e., they exist physically
can be touched and have a
based business. The products based businesses can be of
specific shape, design and weight.
tuo types : (i) Manufacturing based (ii) Trading based.
)Manufocturing of Products
DEF.
Manufacturing of goods means producing goods in a
raw materials,
Specific shape and design using specific Manufacturing of goods means
chemicals etc. by following a specific process using producing goods in a specific
machines or tools. Manufacturing process produces the shape and design using specific
for raw materials, chemicals etc. by
goods in bulk which are Jater available in market :following aspecific process using
selling. machines or tools.
A.175
INFORMATION TECHNOLOGYLY
A.176
various types, such as :
Manufacturing can be done for products of
Industrial components
Polymers/Plastic goods Processed foods
Spare parts Cloth/garments and so forth.
Footwear
Do YoU KNOW ?
(government of e-Mandi).It is a
Government of India has come up with e-platform called GEM
needs. This gives open offer for
public procurement platform for government department's big hassles of tendering process)."
small traders to enlist themselves and compete (without the
Service based
Enterprise /Business
2.22 While a Manufacturing enterprise/business sells a tangible, actual product, a service based
enterprises/businesses sell the work based on some skills e.g., when you buy acurtain cloth,
product but when you get it stitched from atailor, then you are not buying a
youarebuying a
buyingthe tailor's services. So service based enterprises/businesses sell
product, you are
services-the work carried out using specialized skills. For example, acar workshop is not a
business, it is a service based business.
product based
Followingfigure showsthe difference between a product based enterprise and a service based
enterprise.
The outcome
NOTE
You see a lot of service based business/enterprises The product business sells a
around you, e.g-. physical, tangible product,
- Mobile/watch/computer repair shops while the service business
- Grocery delivery (milk/veg., Big Basket/1local) owner sells his skills as the
Salons primary product.
- Restaurants
- Courier services
- Boutiques
- Financial services - Health services (Test labs, gyms)
- Dry cleaners etc.
are all service based businesses/enterprises.
NOTE
An invention is an idea/technology that may or may not create value.
An innovation is something that generates value for the world.
makes something faster, better, cheaper giving greater satisfaction.
Session 2: TYPES AND FIELDS FOR
ENTREPRENEURSHIP A.179
Real Life Case Study 1
AMUL
(started
at a small scale and grew to a
large SCale)
The founder of AMUL, erghese
she White Revolution in India',Kurien was a social entrepreneur and is
known as the
the ways of dairy farming, Fatherit a
as he of
celf-sustaining revolutionized
industry, thereby making the milk making
producers/villagers earn better incomes.
Problem ldentification
Before AMUL, Kurien was working for the
the farmers producing milk in that Government of India at Anand, Gujarat. He observed that
area were facing lot of problems like :
They were not getting good prices for
their milk
Being treated as mere suppliers, they had to dependproduce.
on the big companies like Nestle, to
take their products to the market.
There were no takers for the surplus milk, as
due to seasonal reasons. fluctuation in milk production happened
Solution Implementation
Kurien helped farmers by following solutions :
Form small cooperatives where villagers used to get their
milk produce. The
co-operatives gave these milk producers control of purchase, processing and marketing
of their
products. This way a direct link was established between the milk producers
and the consumers. And the middle men were out of the
model, ensuring higher
employment and longer incomes for the villagers.
The surplus milk was converted using the process of making milk
condensed milk
powder and
from buffalo milk, which was abundant in India. Moreover, only cow
milk was converted into milk powder.
Gradually Kurien got small cooperatives established in other villages, which started functioning by
themselves. Later all these got combined, and Amul came into being.
Later on, the government of Indiarequested Kurien to create such model nationwide, so that India
can produce enough milk and milk products,that, does not depend on imports which earlier it
used to. For this, the National Dairy Development Board (NDDB) was founded under Kurien's
leadership. The NDDB successfully replicated the AMUL model all over India, increasing
Country's milk production. And a milk-deficient India turned into World's largest milk producer.
This movement was called Operation Flood.
This distributed model worked wonders for the country. The model was further studied by many
other governments outside India.
doing e-commerce. So they thought of launching an e-commerce platform called Flipkart in 2007
trom a small apartment in Bangalore. Initially they started with books. They used to deliver books
across the city on scooter. Soon they realized, they had a longer target audience, and they
expanded to offer a wide variety of goods.
Problem ldentification :
() There were not many India based online selling websites.
hands.
(i) People were not ready to pay until they have the product in their
(iii) Products must be delivered in agreed upon time.
Solution Implementation
online.
They started an online e-commerce website namely Flipkart selling goods
They started the concept of home delivery.
Delivery' and
K To tackle the problem of online payment, Flipkart introduced 'Cash on
time in India.
Payment by card on Delivery' in addition to others for the first
orders on time,
K Flipkart launched their own supply chain management system to deliver
and solved the problem.
investment
Flipkart became India's largest home-grown e-commerce platform started with a small
20 crore.
of R6500/- it grew exponentially to 4 crore in 2 years and in another year to
Started off as a platform for books only, Flipkart soon became a platform for anything from
tecnology to garments to stationary.
In 2018, Walmart acquired 77% stakes in Flipkart, worth $16 billion, which has made the young
entrepreneurs one of the most successful ones.
Flipkart opened the doors to an e-commerce friendly ndia. And this happened just because the
founders had a dream, an idea, the conviction to convert idea into action, and action into results.
3 S e s S0 O n
Entrepreneurship
vs. Employment
3.1 Introduction
seen your elders talking
So, now you know a lot about entrepreneurship. You must have a package of so many
about things like, "His son is working for that ABC company and is earning
marketing for the company XYZ"
lakhs per annum" or "She has been pronmoted as the country head, people ? Are thev
Whenever you hear such statements, what do you think ? Who are these
entrepreneurs ? Let us find out.
Entrepreneur Employee
Roles
All roles s/he has to perform; from owner to lowest level An employee is assigned or given predefined/fixed roles.
of work.
An entrepreneur organises manages all resOurces (man, An employee manages only what is defined in assigned
machine, money) role.
An entrepreneur makes business decisions.
An entrepreneur takes risks related to business.
A.182
ENTREPRENEURSHIP VS. EMPLOYMENT
Session 3
A.183
Entrepreneur
Employee
Time
entrepreneur is involved in the work 24 x 7.
An An employee is involved in the work only for fixed timings.
Responsibilities
An entrepreneur takes decisions on his/her own or after
consulting the experts of the field working with him/her. Anemployee either waits for instructions or for decision
making position, decides only that much which is
defined in his/her role.
An entrepreneur takes ownership of his actions and
decisions. That is, s/he takes total responsibility of An employee is responsible only for
tasks on time. performing his/her
success/failure.
An entrepreneur takes care of all people working with An emplovee takes care of the team
bim from senior most position to support staff assigned or
reporting to him/her.
An entrepreneur is self-disciplined and self-motivated. An employee always looks for instructions.
An entrepreneur sets own targets as per the qoals set for An employee's
growth. target is set by higher ups.
Contribution
An entrepreneur makes larger contribution in the growth An employee contributes by doing his/her assigned role.
of economy: generates employment. His/her contribution is limited as compared to an
An entrepreneur impacts society in a positive way by entrepreneur.
offering solutions to existing problems in society, based
on which the business is built.
Richo Kar
Richa Kar is a young woman entrepreneur of a successful venture Zivame. Richa, aged 30, has
taken her education from Narsee Monjee Institute of Management Studies and worked with
companies like SAP, Spencer's Retail Ltd. prior to founding her own venture Zivame, an online
innerwear store, which is derived from a Hebrew word 'Ziva' which means radiance and Zivame
stands for a'radiant me'. She has practically changed the way women used to think and buy their
innerwears. Zivame has been successful in educating Indian women across the country about
intimate wear.
Ritesh Agarwal
India. He is
Ritesh Agarwal is in his mid-twenties and one of the most successful entrepreneurs of
founded OYO rooms at the
the Founder & CEO of the budget room provider service -OYO. He
age of 18.
Realizing that no
His basic idea was a budget hotel chain that provides B&B (Bed & Breakfast).
Oravel stays to start
from
other service offered a room for a budget traveler, Ritesh took the idea
This is one of the best successful
OYOrooms started OYO with 11 only rooms in a Gurgaon hotel.
5500 properties across 170
entrepreneurs stories in India. Today, OYO has 65000 rooms in about
expanded to China as well.
Cines in India. OYO Rooms have successfully
UNIT IV: ENTREPRENEURIAL SKILLS
A.184 INFORMATION TECHNOLOGY_Iy
Sunder Pichai
Sunder Pichai is a computer engineer and the current CEO of Google Inc.
Earlier he worked in engineering and product management at Applied materials and management
consulting at Mckinsey and Company. He joinedGoogle in 2004 as product manager, led some
innovative efforts for survival products like Google Chrome, and went on to become Google's
head of Products and engineering and in 2015 was named the new CEOof Google.
Satya Nodella
Satya Nadella, an electrical engineer from India, went on to U.S. for his M.S. and MBA. He started
his career with SUN Microsystems, but very soon joined Microsoft in 1992. He was one of the few
employees who suggested the concept of cloud computing. Later he got responsibility control the
R&D department and later moved to systems and tools division. In 2014 Nadella was promoted to
CEO of Microsoft.
Even though both, Sunder Pichai and Satya Nadella, are CEOs/heads of their organization, they are
not owners. They have grown as employees within the organization. They take decisions after
consulting the board of directors.
Entrepreneurs are own boss - when your boss is yourself then you have the greatest bosS in
all forms: the greatest critic to greatest admirer to greatest motivator.
Own Time
An entrepreneur is not bound to work for fixed set of hours chosen by someone else. Rather an
entrepreneur can choose to work as per own time - day or night.
Location
Anentrepreneur gets to choose own work location. S/he can be anywhere in the world while
working and still be doing a meaningful contribution towards her/his venture.
Monetary Gains
A
venture, after initial financial problems, later starts earning abig revenue giving a big bo0st
to the financial health of the venture and of the entrepreneur.
Can make contribution at large scale
An entrepreneur can make larger contribution towards nation and society at a large scale as
her/his venture can make impact in multiple forms. Not only it generates employment, an
entreprerneurship can also make contributions socially, financially and so on. For example,
boasts of a
Mirchi and Mime is an innovative restaurant in the Powai area of Mumbai that
friendly staff of 27 servers, all of whom are hearing and speech impaired. This way Mirchi and
Mine is contributing socially so much to the society.
heck Point
experts.
takes decision on their own or after consulting (d) all of these
1. A(n) (c) worker
(a) employee (b) entrepreneur
goals.
or works as per set
2. A(n) either waits for instructions (d) all of these
(c) worker
(a) employee (b) entrepreneur
Aosignment
different from employment ?
1. How is entrepreneurship which make entrepre
After carefully reading the above topics, can you list some parameters
2.
neurship a risky process ?
entrepreneurship and employmnent ?
3. How is decision-making different in
entrepreneurs and employees different ?
4. How are the contributions made by
How is entrepreneurship and
employment different in terms of roles ?
5.
entrepreneurship ?
6. What are the risks involved with the
7. What are the rewards of entrepreneurship ?
8. What are the challenges of entrepreneurship ?
ACTIVITY
grandparents, try to find people who have started their
In the social circle of your parents and decided to be entrepreneurs.
entrepreneurial journeys. Meet them in person and discuss how they entrepreneurs?
What challenges they faced? What rewards do they feel about being
S e SSI 0 n 4
Entrepreneurship
Development Process
Oyuctoes
A Entrepreneurship Development Process
41 Introduction
Modern age is media age and at all stages we are influenced by media. Modern age media
depicts entrepreneurship as a glamourous world with lots of financial success. But it is not
that easy as it appears. You must have read the success stories of many entrepreneurs but you
do not know how much Sweat has gone into it. All businesses, all entrepreneurial ventures
require some planning, some right decisions taken at the right time in the smartest possible
way. In this session, we are talking about basic entrepreneur development process that is
common for all types of ventures.
Financial plan
Products and services
What kind of product or service is included Financial projections, funding requirements,
profitability, cash flow.
in your plan.
non-financial objectives.
A business must meet its financial and
sales and profit, proper market share and
Financial objectives of a business are : its survival, enough
financial security of the business.
social objectives, personal satisfaction of
Non-financial objectives of a business are : serving the
understanding and control of business etc.
entrepreneur, customer satisfaction, having proper