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MANAGERIAL PROCESS SKILLS (ENTREPRENEURSHIP) MMS Sem.-II 2009 Dr. (Mrs.) Vilasini G. Patkar [email protected] Dynamics of Entrepreneurship Entrepreneurs Role In National Development A nation cannot march forward if the entrepreneurs are not at the centre stage of all development efforts. Entrepreneurs play a key role in the economic development of the nation. Strategies have to be implemented effectively with stress on encouraging entrepreneurship. Concept of Entrepreneurship An entrepreneur is a creative genius who visualizes a concept and uses ones knowledge, initiative, creative drive, energy, leadership skills and innovative abilities to convert an idea into a business proposition. Establishes the business activity; undertakes risk, for high achievement/profits, to attain success in the business venture. Thus, an Entrepreneur is a person and Entrepreneurship is a process of developing and operating ones own business. Unique Traits of Entrepreneurs Entrepreneurs are owners and initiators of their business enterprises who may or may not be managers as well. Entrepreneurs are essentially risk-takers, enterprising, innovative, opportunistic, possess business acumen. Entrepreneurs create employment opportunities, create wealth for themselves, family and nation. Entrepreneurs show their presence in every walk of life – industry, service and business – in the form of micro, small and medium enterprises. Entrepreneurs are dynamic business leaders who shoulder great responsibilities; have multi-tasking abilities; have definite planned motives and are highly focused. Key Entrepreneurship Skills Time Management Delegation Communication Skill Assertiveness (not aggressiveness) Dealing with Stress (strength, stability) Negotiating Skill Vision Passion (energy) In-depth Understanding (intelligence, understanding) Decision Making Skills Intelligence Activity – Environment Analysis – Study the Conditions Design Activity – Inventing, developing, analysing, possible courses of action Choice Activity – Selecting a particular course of action Dynamics of Decision Making Process Entrepreneurial Decisions would have both Strategic & Behavioural Implications (Rational & Participative): 1. Consider Long Term Perspective 2. Economic & Financial Implications 3. Holistic Perspective – entire organisation 4. Employee Considerations 5. Long Lead Time for realising the outcome 6. Difficulty in intervention for changes 7. Policies, Vision & Future Goals 8. Doctrine of Delegation The Essence of Entrepreneurship An entrepreneural enterprise is defined as a Micro, Small, Medium or large Manufacturing or Service Enterprise, managed by one or more entrepreneurs as proprietary concern or other form of organization. Entrepreneurship is the practice of starting new organisations or revitalizing mature organisations, particularly new businesses generally in response to identified opportunities. Entrepreneurship is a challenge – needs to be handled smartly. Entrepreneurial activities are substantially different depending on the type of organization that is being started. The Essence of Entrepreneurship...... Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only for part-time) to major undertakings creating many job opportunities. Many "high-profile" entrepreneurial ventures seek venture capital or angel funding in order to raise capital to build the business. Angel investors generally seek returns of 20-30% and more extensive involvement in the business. Many kinds of organizations now exist to support would-be entrepreneurs - specialized government agencies, business incubators, science parks, and some NGOs. Why Entrepreneurship? Entrepreneurship stems from: Economic urge of being self-employed so as to do something positive. Social urge of exercising power over resources and people. Entrepreneurs personal urge of being an independent decision maker. Aspirations of high motivation and enterprising vision. Dynamic attitude, unfolding the beaten track and exploring new vistas of socio-economic ideas. Thus, entrepreneurs are the pace setters for future generations in their quest for economic independence. Outlook Towards Entrepreneurs Political scientists regard entrepreneurs as leaders of the system . Economist view entrepreneurs as the accelerators of economic growth. Sociologists regard entrepreneurs as the torch bearers of liberalization. In modern times, more and more youth should make their livelihood choice - by becoming ‘self-employed’ with the motive of reasonable earnings and national development – through the launching of business activities that are broadbased, competitive and profitable. . Categories of Entrepreneurs Entrepreneurs with educational and professional qualifications who take the initiative and manage medium and large-scale units. Entrepreneurs who do not have education or any formal training in management but have developed practical skills required for the small-scale sector – traditional business. Social entrepreneurs who work in cities and slums to help communities with lower means of livelihood to become economically independent. Categories of Entrepreneurs ..... First generation entrepreneurs who need government / institutional support in obtaining finance at concessional rates; along with entrepreneurship and marketing training. Entrepreneurs who form Self Help Groups (SHGs) consisting of minimum 10 members, by pooling their small savings for starting their own entrepreneurial activities. They are encouraged by Banks, Financial Institutions and NGO’s by sanctioning micro finance, especially for those who are below the poverty line; thus contributing to the economic and social wellbeing of their families and the nation. Challenges Faced By Entrepreneurs The experience of starting business has its own share of roadblocks – financial, infrastructural ... Entrepreneurs face immense challenges in the present globalized economic circumstances. Initial difficulties owing to lack of support of relevant knowledge - base, legal requirements and network. Changing business environment, the choice of business types and sectors, information gaps, lack of contacts, competitive strategies... Tips for Entrepreneurial Success Learn Reasons for making certain Decisions Develop Analytical Skills Evolve Great Ideas Take a Plunge (Dig a hole and jump into it) Be Straight Forward & Outspoken Develop tactics of dealing with difficult people Adapt to environment – new places, people, situations Be Adventurous - Ready to Change, handle Risks Aim to give the Unexpected to your Customers