This lesson deals with 1)The Role of Entrepreneurship 2)The Myths 3)The Processes 4)The Typologies 5)Risks and Rewards Self Assessment of Enterprises

1. Entrepreneurship
lesson series -2
Dr.B.Yerram Raju
Founder Director, Telangana Industrial Health
Clinic Ltd., Government of Telangana,
HYDERABAD
yerramr@gmail.com

2. Session deals with:
• The Role of Entrepreneurship
• The Myths
• The Processes
• The Typologies
• Risks and Rewards
• Self Assessment of Enterprises
26-Nov-22 yerramraju 2

3. 26-Nov-22 yerramraju 3
Some people in this world
MAKE things happen
Some people in this world
WATCH things happen
Some people in this world
WONDER what’s happening

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Role of Small Enterprises
Seedbed of the Economy
 Small enterprises seen as the seeds from
which large successful corporations grow
– e.g. V-Guard, Nirma, Dr.Reddy Labs, Infosys
 Employment Creators
– Small firms make a more consistent
contribution to job creation
 Stimulators of Competition
 Developers of the Local Economy

5. 26-Nov-22 yerramraju 5
Myths of Entrepreneurship
• The Risk-Taking Myth: “Most successful
entrepreneurs take wild, uncalculated risks in
starting their companies.”
• The High-Tech Invention Myth: “Most
successful entrepreneurs start their companies
with a break-through invention – usually
technological in nature.”
• The Expert Myth: “Most successful
entrepreneurs have strong track records and
years of experience in their industries.”

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Myths of Entrepreneurship
• The Strategic Vision Myth: “Most successful
entrepreneurs have a well-considered business
plan and have researched and developed their
ideas before taking action.”
• The Venture Capital Myth: “Most successful
entrepreneurs start their companies with
millions in venture capital to develop their
idea, buy supplies, and hire employees.”

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ENTREPRENEURSHIP
• The ‘Myths’ of entrepreneurship
– Entrepreneurs are born, not made
– All you need is money to be an
entrepreneur
– All you need is luck to be an entrepreneur
– Entrepreneurs are extreme risk takers
• Let’s debunk them!

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Personal Personal Sociological Personal Organizational
Achievement Risk taking Networks Entrepreneur Team
Locus of control Job Teams Leader Strategy
Ambiguity dissatisfaction Parents Manager Structure
tolerance Job loss Family Commitment Culture
Risk taking Education Role models Vision Products
Personal values Age
Education Commitment
Experience
Innovation Triggering event Implementation Growth
Environment Environment Environment
Opportunities Competition Competitors
Role models Resources Customers
Creativity Incubator Suppliers
Government policy Investors
Bankers
Lawyers
Resources
A Model of the Entrepreneurial Process

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What Makes a Successful
Entrepreneur?
1. Passion
2. Persistence
3. Good Health/Energy
4. Creativity/Innovation
5. Independence/Self-reliance
6. Intuition
7. Self-confidence
8. Market Awareness
9. Lack of Need for Status
10. Ability to Accept Challenges
11. “Hard Work” Ethics

10. 26-Nov-22 yerramraju 10
Risks & Rewards of Entrepreneurship
Risks & Drawbacks
• Failure – One must assume the emotional and financial risks of failure.
• Time – It takes a tremendous amount of time to make a business
successful. Most report 60-70 hours per week as “NORMAL”!
• Family – Because of the strain of operating a business, the family may
suffer.
• Money – Most start-up entrepreneurs have their own money at risk.
Rewards
• Independence – For many, the freedom to act independently is
paramount in their decision to be their own boss.
• Money – The financial return from their own efforts is not limited to
normal work for normal pay.
• Fun – Entrepreneurs describe what they do as Fun…it’s what they WANT
to do!

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TYPOLOGIES
• Team entrepreneurship
• Corporate entrepreneurship
• Social entrepreneurship
• Public sector entrepreneurship

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TEAM ENTREPRENEURSHIP
• Idea or Event - Individual or Team - Idea Evaluation -
Resources Required - Team Development -
Implementation (Cooney - 2001)
• Differences?
– Not a lone action (body of research points to team
entrepreneurship more likely will lead to fast-growth firms)
– Need for personal risk taking is reduced
– Issue of control and ownership
– Good networking abilities
– Sharing information, responsibility and rewards

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CORPORATE
ENTREPRENEURSHIP
• Organisational Characteristics / Precipitating Event / Individual
Characteristics - Decision to act intrapreneurially - Business /
Feasibility Planning - Resource availability - Ability to overcome
barriers - Idea implementation (Hornsby et al - 1993)
• Different worlds: (Carrier - 1994)
– structural context
– relationship related context
– enhancement and rewards
– consequences of dissatisfaction amongst intrapreneurs
• Organisation that: (Luchsinger and Bagby - 1987)
– focuses on results and teamwork,
– rewards innovation and risk taking
– tolerates and learns from mistakes remains flexible

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SOCIAL ENTREPRENEURSHIP
• Guage the commitment - Develop the infrastructure -
Generate and screen ideas - Conduct the feasibility
studies - Plan the venture (Campbell - 1998)
• Unique characteristics: (Waddock and Post - 1991)
– problem complexity
– multiplexity
– crisis
– interdependence
– credibility
– commitment to collective purpose
– end values

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PUBLIC ENTREPRENEURSHIP
• Identify an opportunity - Develop the concept - Assess
the resources required - Acquire the necessary
resources - Manage and harvest the venture
(Morris and Jones - 1999)
• Common Barriers: (Ramamurti - 1986)
– goal ambiguity
– political interference and limited political autonomy
– high visibility
– disincentives for risk taking
– short-term orientation
– rigid personnel practices

16. 26-Nov-22 yerramraju 16
ONGOING SELF ASSESSMENT
ENTREPRENEURIAL OR NOT?
WHERE DO YOU FIT BETWEEN ONE AND TEN?
• Highly motivated to grow and succeed -- Status quo
isn’t so bad, and safer.
• Enjoy self-directed work -- Need a task list from
someone else.
• Lines between work/play blurred -- Work must have a
beginning and end.
• Energetic, enthusiastic -- Times are tough and getting
tougher.
• Creative, lots of new ideas - - Things were better
before.

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Ongoing Self Assessment
ENTREPRENEURIAL or NOT?
WHERE DO YOU FIT BETWEEN ONE AND TEN?
• Takes prudent risks with capital – Looking for a sure
thing.
• Active, involved “owns” the effort – Re-active, does
what seems to be popular.
• Researcher: papers, internet, meetings – Others know
more than I do.
• Into everything, hold me back! – Leave it to the
experts.
• Inquisitive, tries anything once – Rarely departs from
the familiar.

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ONGOING SELF ASSESSMENT
ENTREPRENEURIAL OR NOT?
WHERE DO YOU FIT BETWEEN ONE AND TEN?
• Convincing on “the idea” – Maybe I shouldn’t.
• Competitive – I’ll never catch up.
• A doer – An observer.
• Enjoys being the boss – I answer to EVERYONE
else.
• Sees problems as opportunities – sees
opportunities as problems.

19. THANK YOU