This document provides an introduction to entrepreneurship. It defines entrepreneurship as creating something new with value by devoting time and effort, assuming risks, and receiving rewards. Entrepreneurship involves identifying opportunities, leveraging resources, and creating value. The document discusses what entrepreneurship involves, sources of business opportunities like changes in technology, markets, and regulations. It also contrasts big companies with startups and provides examples of entrepreneurs who exploited changes.

1. Introduction to Entrepreneurship
and Business Opportunities
Contributed by:
Dr Gayatri Saberwal, Faculty Scientist,
Institute of Bioinformatics and Applied
Bio Technology (IBAB),
Bangalore, India

2. An introduction to entrepreneurship
(a) Business opportunities
(b) xxxxxxxxxxxxxxxxxx
(c) xxxxxxxxxxxxxxxxxx

3. What is entrepreneurship ?

4. What does entrepreneurship involve?

Wealth Creation

New Venture Management

Innovation

Creativity

Risk Taking

5. What is entrepreneurship ?
It is the process of
creating something new
by devoting...
by assuming certain ... risks
and receiving some ... rewards

6. What is entrepreneurship ?
“It is the process of creating something new, with value, by devoting the
necessary time and effort
assuming the accompanying financial, psychic, and social risks,
and receiving rewards of monetary and personal satisfaction and
independence”
Hisrich and Peters, Entrepreneurship, pg 10

7. What is entrepreneurship ?
“It is the process of creating something new, with value, by devoting the
necessary time and effort
assuming the accompanying financial, psychic, and social risks,
and receiving rewards of monetary and personal satisfaction and
independence”
Hisrich and Peters, Entrepreneurship, pg 10
CREATING VALUE

8. What is 'value' ?
Let's list the value that has been created by IBAB to-date.

9. What is entrepreneurship ?
Delivering Value to Customers who are
willing to Pay an amount which covers your Costs

10. When does a person become an entrepreneur?
Let's list some of these conditions or events.

11. What is Entrepreneurship ?
A pursuit of the opportunities regardless of the resources.
Harvard Business School

12. What is Entrepreneurship ?
A pursuit of the opportunities regardless of the resources.
Harvard Business School
THE OPPORTUNITY

13. What is Entrepreneurship ?
A pursuit of the opportunities regardless of the resources.
Harvard Business School
LEVERAGING
RESOURCES

14. What is Entrepreneurship ?
A pursuit of the opportunities regardless of the resources
Harvard Business School
An entrepreneur is opportunity-obsessed
with the goal of creating value
without regard to resources currently controlled.
Stanford University

15. What is Entrepreneurship ?
Opportunity identification
Leveraging resources
Value creation

16. What is Entrepreneurship ?
Opportunity identification
Leveraging resources
Value creation

17. How to spot an opportunity ?
“Solving a problem”
many entrepreneurs

18. How to spot an opportunity ?
“Solving a problem”
many entrepreneurs
Vinod Khosla's clip (30 sec.)
http://edcorner.stanford.edu/authorMaterialInfo.html?mid=26

19. A different kind of entrepreneurship
Satyajit Sadanand and football in Baroda

20. Sources of Business Opportunities

21. Sources of Business Opportunities
Change as a source of business opportunities

22. The big company
versus
The start-up
22

23. The big company vs. the start-up
Established companies (incumbent players) have
products or services
smooth operations
established business models
loyal set of customers
functional teams ……
23

24. The big company vs. the start-up
Start-ups have
passion
hunger to grow
lower costs
lack of hierarchy
flexibility
eligibility for certain funding schemes...
24

25. The big company vs. the start-up
Established companies (incumbent players) – they have products or
services, smooth operations, established business models, loyal set of
customers, functional teams ……
Start-ups have passion, hunger to grow, lower costs, lack of hierarchy
and flexibility, eligibility for certain funding schemes...
25

26. Change as a Source of Opportunity
Status-quo is good for incumbent players
Change brings in disruption – that in consumer tastes, cost structures,
business models, expectations, level of expertise needed, distribution
channels, payment mechanisms, availability of finance
26

27. Change as a Source of Opportunity
Status-quo is good for incumbent players
Change brings in disruption – that in consumer tastes, cost structures,
business models, expectations, level of expertise needed, distribution
channels, payment mechanisms, availability of finance
Change produces a level-playing field which is actually loaded in favour
of a new player because of its flexibility, adaptiveness
27

28. Examples of Entrepreneurs Exploiting Change
Chaudhry Raghavendra Singh
21 colonies including
Greater Kailash, South Extension and Hauz Khas
28
http://in.rediff.com/money/2006/apr/08forbes.htm

29. Broad Categories of Change
Demographic
Economic
29

30. Broad Categories of Change
Demographic
Economic
Socio-cultural
Technological
Political
Legal and Regulatory
30

31. Demographic Changes
 M
ed
ia
n
ag
e
 W
or
ki
ng
po
pu
lat
io
n
as
31
th

32. Economic Changes
Gross Domestic Product and Per Capita Income
Availability of credit at all levels
Size of the middle class
Level of exports and imports
Inflation and interest rates
Various growth rates – industrial growth,
productivity growth, exports growth
Level of unemployment
32

33. Socio-Cultural Changes
Value systems – globalization and local assertions
Accepted norms of behaviour
Role of religion and spirituality
Pursuit of expertise, knowledge, wealth, possessions
●Measure of “time” – attention span, priorities, conveniences
33

34. Technological Changes
Availability and wide-spread assimilation of technology
Information Technology and it pervasiveness
Costs and disposable incomes
Performance, variety, ease of acquisition
Cross applications – interdisciplinary developments
Comfort level of technology usage
Examples: CD ROM drives and mobile phones
34

35. Political and Regulatory Changes
 Transition from centrally planned to market economy (India, 1991)
 Transition from communism to “market socialism” (China, 1978-80)
 IPR laws
 Labour reforms
35

36. Entrepreneur as a Visionary must Anticipate
 Analyze all the changes that are happening in the target market
 Estimate the time constants of change – fast or slow
 Worry about the fickleness of customer tastes (esp. fashions, movies)
 Make reasonable guesses
 Validate your hypotheses at each stage as new field data arises
 Study human psychology or consumer behaviour
A
B
36

37. Entrepreneur as a Visionary must Anticipate
 Analyze all the changes that are happening in the target market
 Estimate the time constants of change – fast or slow
 Worry about the fickleness of customer tastes (esp. fashions, movies)
 Make reasonable guesses
 Validate your hypotheses at each stage as new field data arises
 Study human psychology or consumer behaviour
A
Jeff Hawkins' clip 3.50 min
 http://edcorner.stanford.edu/authorMaterialInfo.h
B
37

38. Examples of Entrepreneurs Exploiting Change
“Ted's mind is always 5 to 10 years down the road. Right now he's
probably living in 1995”
Ted Turner, founder of CNN, about whom this was said in 1985.
38

39. Entrepreneurship in India
Dr. Jagannath Raju, CEO
Systemantics, Bangalore
Talk in 2004

40. Entrepreneurship in India
Discovery (1994 – 96)
No support system for development phase
– Access to off-the-shelf components (no change)
– Access to integrated circuits (much better now)
– Access to tools and workshops for prototyping (no change)

41. Entrepreneurship in India
Discovery (1994 – 96)
No support system for development phase
– Access to off-the-shelf components (no change)
– Access to integrated circuits (much better now)
– Access to tools and workshops for prototyping (no change)
Incomprehensible paperwork
– Excise, customs, sales tax, income tax (very significant
improvement)

42. Entrepreneurship in India
Discovery (1994 – 96)
No support system for development phase
– Access to off-the-shelf components (no change)
– Access to integrated circuits (much better now)
– Access to tools and workshops for prototyping (no change)
Incomprehensible paperwork
– Excise, customs, sales tax, income tax (very significant
improvement)
Immature financial system
– R&D funding (minor change) √
– Foreign exchange (no longer a problem)
Government is the primary customer for high-end technical work
(no change)

43. What is entrepreneurship ?
What are the stages from an idea onwards?

44. An introduction to entrepreneurship
Idea > Prototype > Development > Scale-up

45. An introduction to entrepreneurship
Functional areas: ????

46. An introduction to entrepreneurship
Functional areas
Service/technology development
HR
Finance
Strategy
Marketing

47. Function-timeframe matrix
Service/
Technology
HR
Mktg
Strategy
Finance
Idea Prototype Development Scale-up Liquidity

48. What is entrepreneurship?
The entrepreneurial process will create a better world.
It's not just about new companies, capital and job formation, nor
innovation, nor creativity, nor breakthroughs.
It is also about fostering an ingenious human spirit and improving
humankind.
Jeffry A Timmons, Franklin W. Olin Distinguished Professor of
Entrepreneurship, Babson College

49. Assignment:
Groups of 3, ie 12 groups. Each group to receive Rs. 50.
Spend the rest of today's class planning what you are going to do with
this money.
49

50. Assignment:
Groups of 3, ie 12 groups. Each group to receive Rs. 50.
Spend the rest of today's class planning what you are going to do with
this money.
Friday afternoon is allocated for you to make your sales. IBAB commits
to issuing receipts in case that is required for your customers.
50

51. Assignment:
Groups of 3, ie 12 groups. Each group to receive Rs. 50.
Spend the rest of today's class planning what you are going to do with
this money.
Friday afternoon is allocated for you to make your sales. IBAB commits
to issuing receipts in case that is required for your customers.
Saturday morning: come and tell us what you did and how much you
earned. You can keep the extra money that you made.
51

52. Assignment:
Groups of 3, ie 12 groups. Each group to receive Rs. 50.
Spend the rest of today's class planning what you are going to do with
this money.
Friday afternoon is allocated for you to make your sales. IBAB will
issue receipts in case that is required for your customers.
Saturday morning: come and tell us what you did and how much you
earned. You can keep the extra money that you made.
In case you didn't try to make money, you must return the Rs. 50/-.
52

53. An introduction to entrepreneurship
Credits
Prof. R. K. Lagu (formerly, IIT Mumbai)
http://www.it.iitb.ac.in/~mg647
Entrepreneurship, 5th Edition, 2002
D. Hisrich and M. P. Peters
●Stanford Technologies Venture Program (STVP)
●NEN-STVP Faculty Development Workshop,
Mumbai 21-23 June 06