Entrepreneurial Mind

The Basic Characteristics of Entrepreneur

Entrepreneurship is the process of designing, establishing and running of an Enterprise for the purpose of profit and sustainability 

Entrepreneurship

It is the process of designing, establishing and running of an Enterprise for the purpose of profit and sustainability

Entrepreneurs

Entrepreneur is derived from the French verb “ entreprenerd “It means “to undertake”. The people who create these enterprises. The capacity and willingness to develop organize and manage a business venture along with any of its risks in order to make a profit. In economics, entrepreneurship combined with land, labour, natural resources and capital can produce profit. 

Definitions of Entrepreneurships

Oxford Dictionary 

“A person who sets up a business or businesses, taking on financial risks in the hope of profit” 

International Encyclopedia 

“An individual who bears the risk of operating a business in the face of uncertainty about the future conditions” 

Entrepreneurial spirit

It is characterized by innovation and risk-taking, and is an essential part of a nation's ability to succeed in an ever changing and increasingly competitive global marketplace.

Basic Characteristics of Entrepreneurship 

Economic Activity: Entrepreneurship is an economic activity, as it involves designing, launching and running a new business enterprises in order to earn the profit, by ensuring best possible use of resources. 

Creativity and innovation: It involves discovering new ideas and implementing it in business. The entrepreneur continuously evaluates current modes of running a business and identifies new methods and techniques for operating the business more efficiently and effectively. 

Profit: The activity of entrepreneurship is undertaken with the sole objective of making the profit. It is also the reward of the efforts made and risk taken by the entrepreneur.

Sustainability: most of the social enterprises are working for the resolution of some social issues but they have to be a business model to sustain their enterprise. So that we define these type of activities as a social entrepreneurship which primarily work for a social cause but self sustainability is the main aim of that organization. 

Risk Bearing: “Willingness to assume the risk” is the essence of entrepreneurship without which he/she cannot succeed. It occurs due to the creation and implementation of new ideas. Such ideas are often uncertain, and so the result may or may not be positive and instant.

Entrepreneurial activities that entrepreneurs may use include:

• Exploration of new business Ideas 
• Innovation of new products, services or processes 
• Continuous process improvement in business models 
• Use of technology 
• Use of business intelligence 
• Use of economical strategies 
• Development of future products and services 
• Optimized talent management

Skills Required in Entrepreneurship 

Technical Skills: Oral Communication, ability to organize, productive ability, technical business management, coaching, network building, monitoring environment, ability to spot new trends, active listening, writing and interpersonal skills. 

Business Management Skills: Forecasting, planning, budgeting, decision making, negotiation, goal setting, human relations, marketing, finance, etc. 

Personal Skills: Ability to manage change, leadership, persistence, self-reliance, foresightedness, innovativeness, risk taking, self-reflection, discipline, self-confidence, honesty, patience, intelligence, tactfulness, emotional stability, etc. 

Entrepreneurship Ecosystem: Entrepreneurship operates under an ecosystem called as entrepreneurship ecosystem. The ecosystem comprises of government programs and schemes which encourage entrepreneurship, non-governmental organizations that provide advisory services to entrepreneurs, and other organizations which promote and support entrepreneurship directly or indirectly.

Rural Entrepreneurship

Entrepreneurship which ensures value addition to rural resources in rural areas engaging largely rural human resources.

 "Poor of the world can’t be helped by mass production but only by production by masses”- Mahatma Gandhi

THE 6M METHOD: 6M's of Six Sigma

1. Material
2. Method
3. Mother Nature
4. Machines
5. Measurement
6. Man 

TYPES OF RURAL ENTREPRENEURSHIP

• Individual Entrepreneurship
• Group Entrepreneurship
• Co-operative
• Cluster Formation

NEED FOR RURAL ENTREPRENEURSHIP

• Reduce unemployment. 
• Reduce income disparities.
• Increase the literacy rate.
• Reduce poverty. 
• Awaken the rural youth.

CHALLENGES FOR RURAL ENTREPRENEURS

• Lack of technical Knowledge
• Lack of Education Qualification
• High Cost of Production
• Fear to Invest In Business
• Storage and Warehouse Issues
• Lack of training modules and support services

OPPORTUNITIES FOR RURAL ENTREPRENEURSHIP

• Rural Entrepreneurship Development Program 
• Regional Rural Development Centers 
• Social rural entrepreneurship 
• Bank of technology 
• Rural innovation funding

GLOBALIZATION EFFECT ON RURAL ENTREPRENEURSHIP

• Global production and efficiency can serve to be the benchmarks for the local entrepreneurs.
• Access to foreign trade and technology. 
• Opportunities towards exchange of business.
• Various policy benefits at national and global level.
• Improve risk taking ability

 Reach out Author @ Er Abdul Basit

Women Entrepreneurship

 Together we can make a difference 

WHAT MAKES A WOMEN ENTREPRENEUR?

The term women entrepreneur is defined as a group of women who initiate , organize and run a business enterprise.

ROLE OF WOMEN ENTREPRENEURSHIP (Self Role)

• Community
• Membership
• Daughter
• Mother
• Wife
• Parents

BARRIERS FACED BY WOMEN ENTREPRENEURSHIP

• FINANCE
• MALE DOMINATED SOCIETY
• TECHNOLOGY
• SOCIO-CULTURAL BARRIERS
• ADMINISTRATIVE AND REGULATORY REQUIREMENTS
• MARKETING & COMPETITION
• LIMITED MOBILITY 

CHALLENGES TO SELF-EMPLOYMENT

1. Self approach
2. Lack of benefits
3. Increased risk
4. Self Confidence

 Reach out Author @ Er Abdul Basit

Self-employment

 

Self-employment is an option for workers in many career fields and industries.

Gig Employment:

The Department of Labor United States defines a gig as a single project or task for which a worker is hired, often through a digital marketplace, to work on demand.

Freelance:

Freelancing simply means you offer your unique skills or talent on a pay-for-service basis, outside of a regular employer-employee relationship. Common freelance options include:

• Web design
• Writing
• Repair work (specializing in jewelry, furniture, vehicles, or other areas)
• Landscaping
• Accounting 
• Photography 
• Personal training/fitness coaching

Start your own business: 

Some freelancers are running their own business, and even employing others to help them conduct their business. But here, we’re talking about running a business that has a physical location and/or employs others to make or sell goods or provide services.

BENEFITS OF SELF EMPLOYMENT

• OPPORTUNITY TO DO WHAT YOU ARE INCLINED FOR  
• MORE FLEXIBILITY BENEFITS OF SELF EMPLOYMENT 
• Expenses

OPPORTUNITY TO DO WHAT YOU ARE INCLINED FOR: 

IT can be easier to tailor self-employment directly to your own interests, skills, and values than it is to match those qualities as an employee.

More flexibility:

You can have more say over your hours, location, and working conditions such as dress code, break times, environment, etc.

Expenses: 

There are some work-related expenses you can often cut when you’re self-employed: you’ll often spend less on your commute and your wardrobe, and you can usually save more tax-free for retirement as well as deduct additional business expenses (but read about taxes in the below list of challenges too!)

CHALLENGES TO SELF-EMPLOYMENT:

• Self approach
• Taxes
• Increased risk
• Steps to develop Self Confidence

Is Self Employed better than employed?

It's much better than being on your own as when you're self-employed there is no one to look after you if you can't find work Job security and satisfaction. 

In self-employment it's hard to progress and you're only as good as your last job, whereas now I am part of the growth of a company.

Why it's better to work for yourself

• Working for yourself provides more job security than working as an employee in someone else's business because there is less risk, more control, and greater rewards. 
• You make the business decisions. 
• You diversify your income so your earnings don’t originate from a single source

 Reach out Author @ Er Abdul Basit

Social Entrepreneurship

 What is a Social Entrepreneurship?

“Social Entrepreneurship = Social Reform” Success is rooted in empowering others to effect change.

Social Entrepreneurship is the use of the techniques that start up companies and other entrepreneurs to develop , fund and implement solutions to social , cultural or environmental issues.

Social Entrepreneur

A social entrepreneur is somebody who takes up a pressing social problem and meets it with an innovative or path breaking solution. 

“Since profit making is a secondary objective , therefore they are people who are passionate and determined about what they do. They possess a very high level of motivation and are visionaries who aim at bringing about a change in the way things are.”

Focus Areas of Social Entrepreneurship

• Enhance a person’s ability to improve her or his economic well – being & personal dignity through opportunity. 
• Harness aid to be more accountable, transparent and solutions – oriented, for lasting development.
• Enable access to and ensure use of reliable, affordable and appropriate healthcare in disadvantage populations 
• Address issue of sustainable productivity not beneficiary by beneficiary , but system wide. 
• Lay the foundation for peace and human security. 
• Harness the capital and consumer markets that drive change by considering all costs and opportunities.

ROLE AND IMPORTANCE OF SOCIAL ENTREPRENEURSHIP

• Employment Development: The first major economic value that social entrepreneurship creates is the job and employment Estimates ranges from 1% to 7% of people employed in the social entrepreneurship sector.
• Innovation / New Goods & Services: Social Entrepreneurs develop and apply innovation important to social and economic development and develop new goods and services . Issues addressed include some of the biggest societal problems such as HIV, mental ill-health, illiteracy, crime and drug abuse which, importantly are confronted in innovative ways.
• Equity Promotion: Social Entrepreneurs fosters a more equitable society by addressing social issues and trying to achieve ongoing sustainable impact through their social mission rather than purely profit – maximization.

Functions of Social Entrepreneurship

• To create & maintain a stable level of employment
• Create jobs & provide support to socially vulnerable groups.
• Social Entrepreneurship promotes development of entrepreneurial skills.
• Compensating Countries narrow place

Qualities of Social Entrepreneurs

• Ambitious 
• Mission Driven
• Strategic 
• Resourceful 
• Result oriented

Problems Facing by Social Entrepreneur

• Funding
• Strategy and Long Term Focus
• Remaining True to the Mission
• Lack of skilled man force
• Social & Cultural Effect
• Lack of Government

Advantages of Social Enterprises

• Since Social enterprises do not work typically the way corporate setups or private firms work , they offer flexible working environment which is as per the liking of many people groups.
• Creates value for the society and some times generate income (if not wealth)
• As a thumb rule , the solutions they offer are supposed to be innovative , unique , people and environment friendly.

Disadvantages of Social Enterprises

• The risk of losing nonprofit status
•  Lack of support or funds.
• Possibility of poor reputation due to disaster

Conclusion

• Social entrepreneurship is an innovation and pragmatic vision to tackle the challenges of poverty, marginalization and other pressing social crises.
• “The most significant contribution of this ‘ success’ is the character of being a responsible corporate citizen
• This can only be achievable through a sincere and a committed effort for contributing towards the well – being of the community not by charity alone.
• It gives confidence that such innovative, scalable and sustainable social ventures are key levers and accelerators for transformational social change.

 Reach out Author @ Er Abdul Basit

 

Model of Entrepreneurship

Business models can be divided into Six ways

Everything it takes to make something:

• Design,
• Raw materials manufacturing and labor.

Everything it takes to sell that thing:

• Marketing,
• Distribution& delivering a product and processing the sale.

How and what the customer pays:

• Pricing strategy
• Payment methods 
• Payment timing and so on.

What innovation and value addition provided:

• Cost reduction
• Convenience 
• Value proposition.

What type of business to be adopted

A business type can be defined in terms of value which customers are going to get as what the business gets out of it is the profit. Under mentioned types of business model that any for-profit business will fall into:

• MANUFACTURER 
• SOCIAL ENTERPRISE 
• TRADING 
• E Commerce 
• SERVICES

Manufactures 

A manufacturer takes raw materials and creates a product, or assembles pre-made components into a product (E.g. car manufacturers). A manufacturer may sell its products directly to its customers, or it can outsource sales to another company.

PRODUCTION: The processes and methods used to transform tangible inputs (raw materials etc.) and intangible inputs (ideas, information, etc.) into goods or services.

JOB WORK: Job work is the processing or working on goods supplied by another person/entity to complete a part or whole of the process. 

ANCILLARIES: Ancillary industries are those which manufacture parts and components to be used by larger industries.

TRADING

The act or process of buying, selling, or exchanging commodities, at either wholesale or retail, within a country or between countries. 

• Distributors 
• Retailers 
• Franchise

SERVICES

• Services like health, education, hospitality etc. 
• Professionals 
• Self employed 
• Service Providers for Companies

SOCIAL ENTERPRISE 

• Societies 
• Cooperatives 
• Trust 
• Company under Chapter 8 of Company Act 
• Farmers Producer Organization 
• Self Help Groups

E Commerce

• Business to Business 
• Business to Customer  
• Customer to Customer

Different Types of Business Models

1. Advertising 

Advertising model has been existing from long its only that with the value additions in the business with the new technologies emerging Tit has become easier and sophisticated , therefore from print to online. 

Examples: CBS, The New York Times, YouTube

2. Affiliate

The affiliate business model is related to the advertising business model but have some specific differences. 

Examples: TheWireCutter.com, TopTenReviews.com

3. Brokerage

Brokerage businesses connect buyers and sellers assists facilitate a transaction. They charge a fee for each transaction to either the buyer or the seller and sometimes both.

4. Concierge/customization

Some businesses collect existing products or services and bring a custom element to the transaction that makes every sale unique for the customer who grabs on to it. 

For Example: think of custom travel agents who book trips and experiences for wealthy clients. You can also find customization happening at a larger scale with products like Nike’s custom sneakers.

5. Crowdsourcing

In the current system crowdsourcing has become popular . These models are most frequently paired with advertising models to generate revenue, Companies that are trying to solve difficult problems often publish their problems openly for anyone to try and solve.

6. Disintermediation

Disintermediation is when you sidestep everyone in the supply chain and sell directly to consumers, allowing you to potentially lower costs to your customers and have a direct relationship them as well. Examples: Dell

7. Fractionalization

Instead of selling an entire product, you can sell just part of that product with a fractionalization business model. 

Examples: Disney Vacation Club, Net Jets

8. Franchise

Franchising is common in the restaurant industry. In a franchise business model, you are selling the recipe for starting and running a successful business to someone else.. 

Examples: CCD , McDonald’s.

9. Freemium 

This business model , gives away part of your product or service for free and charges for premium features or services. 

Example- LinkedIn 

10. Leasing

Leasing is most commonly used for high-priced products where customers may not be able to afford a full purchase but could instead afford to rent the product for a while. 

Examples: Cars, Direct Capital 

11. Low-touch 

With a low-touch business model, companies lower their prices by providing fewer services. Some of the best examples of this type of business model are budget airlines and furniture sellers like IKEA. Examples: IKEA, Ryan Air

12. Marketplace 

Marketplaces allow sellers to list items for sale and provide customers with easy tools for connecting to sellers. 

Examples: eBay, Airbnb 

13. Razor blade 

The razor blade business model is named after the product that essentially invented the model: sell a durable product below cost to increase volume sales of a high-margin, disposable component of that product. 

Examples: Gillette, Inkjet printers, Xbox, Amazon’s Kindle 

14. Subscription 

Subscription business models are becoming more and more common in today’s scenario. In this business model, consumers get charged a subscription fee to get access to a service. 

Examples: Netflix, Salesforce, Comcast

15. Reverse razor blade 

Flipping the razor blade model around, you can offer a high-margin product and promote sales of a low-margin companion product. 

Examples: Apple’s iPod & iTunes, and now Mac Books & Pages, Numbers, and Keynote 

16. Reverse auction 

A reverse auction business model turns auctions upside down and has sellers present their lowest prices to buyers. Buyers then have the option to choose the lowest price presented to them. 

Examples: Priceline.com, LendingTree.

Entrepreneurship What, Why & How

What Is Entrepreneurship

Entrepreneurship is the process of designing, launching and running of a business and entrepreneurs are the people who create that businesses. 

Why entrepreneurship is needed

• Increases national production
• Dispersal of economic power
• Balanced area development
  
• Entrepreneurial Awareness
• Development Human Resource

ENTERPRENEURSHIP PROCESS

• Identification and evaluation of the opportunity 
• Development of the business plan 
• Determination of the required resources.
• Management of the resulting enterprise
• The ability to surmount any difficulty.

IDENTIFY AND EVALUATE THE OPPORTUNITY 

IMAGINATION AND CREATIVITY

•  A blend of imaginative and creative thinking with a systematic, logical process ability; – What is the problem? Rising oil prices. – Whom does it affect? Consumers – Can it be solved? 
  
• How entrepreneurs do what they do: – Creative thinking + systematic analysis = success – Seek out unique opportunities to fill needs and wants – Turn problems into opportunities 

THE SEARCH FOR NEW IDEAS

• Opportunity identification is central to entrepreneurship and involves: – The creative pursuit of ideas – The innovation process 
• The first step for any entrepreneur is the identification of a “good idea.” – The search for good ideas is never easy. – Opportunity recognition can lead to both personal and social wealth. 

DEVELOPMENT OF THE BUSINESS PLAN

• A good business plan must be developed in order to exploit the defined opportunity.
• Steps of a business plan – Title page/Table of contents/ Executive summary/Major sections 
• Description of the business 
• Description of the industry 
• Technology plan 
• Marketing plan 
• Financial plan
• Production plan 
• Organization plan 
• Operational plan

BUSINESS PLAN

• Title page/Table of contents/ Executive summary/Major sections
• Description of the business
• Description of the industry 
• Technology plan
• Marketing plan
• Operational plan 
• Organization plan
• Production plan 
• Financial plan
• Layout of a business plan