Based on Subject Startup & New Venture Management: Pune University MBA Pattern 2019. This PPT comprising various subtopics under Unit 1 Being an Entrepreneur of the syllabus, describes the various dimensions of an Entrepreneur. Subtopics covered: The entrepreneur, Profile analysis, behaviour and motivations, Lean Start –up, The entrepreneurial ecosystem, Entrepreneurs and strategic decisions , Sustainability of Entrepreneurship: Dilemmas of an entrepreneur for success; Handling doubts on survival of business, Struggles-Causes of failure–Product/ market, financing, managerial-Resilience

1. Unit 1: Being an
Entrepreneur
By,
Prof Sandeep D Chaudhary,
International School of Management & Research, Pune.

2. 2
Session Objectives (3rd May 2023)
■ Understand the meaning of Startup & Startup creation.
■ Explore the factors leading to Startup creation
■ Explain the theories of motivation behind Startup
founders

3. 1.
Definition & Meanings
Let’s start with the meaning of Entrepreneur &
Entrepreneurship

4. ■ An entrepreneur assembles and then
integrates all the resources needed -
the money, the people, the business
model, the strategy, and the risk-
bearing
ability- to transform the invention/idea
into a viable business.
4
4
■ An entrepreneurship is an ability of
an entrepreneur to develop &
establish a business enterprise and
perform all the functions involved in
the activity.
4 Unit 1: Being an Entrepreneur
Meaning of Enterpreneur & Entrepreneurship
Idea Resources Business

5. Questions??
What are the Resources?
the money, the people, the business model,
the strategy, and the risk-bearing ability
5
What are the different Functions
involved in Entrepreneurship ?
Discover an opportunity, Design a Business Plan, Apply
available Resources & Techniques, finally Implement the
idea.
Unit 1: Being an Entrepreneur

6. 2.
Entrepreneurial Behaviour & Motivation
Let’s start with the first set of slides

7. Factors Motivating Entrepreneurs
Compelling Factors
1. Unemployment
2. Make use of Idle
Funds
3. Make use of
Technical/Professi
onal skills
4. Family
Circumstances
Facilitating Factors
1. Acquired
Experience
2. Moral support
3. Influence of
Success stories
4. Availability of
Finance & Risk
capital
Ambition Factors
1. To make Money
2. To secure Self-
employment/Independe
nt living
3. To gain Social prestige
4. Desire to be Creative
7 Unit 1: Being an Entrepreneur

8. Elements of Entrepreneurial
Behaviour
8
Self-Analysis
Personal
Efficacy
Culture &
Values
Risk-taking
Behaviour
Technology
back-up
Unit 1: Being an Entrepreneur

9. Theories of Motivation
9
Maslow’s Need theory
McClelland’s Need Achievement theory
Unit 1: Being an Entrepreneur

10. Maslow’s Need Theory
■ Five levels of Human needs
■ Organized according to their
level of preferences i.e. most
important to less important
■ After the satisfaction of one
need, the person moves to the
next level of need
■ Physiological, Security needs
are limited while the others are
unlimited
■ Five level of needs are mutually
dependent
■ Lower-order needs-
Physiological & Security
■ Higher-order needs- Social,
Esteem, Self Actualization
10 Unit 1: Being an Entrepreneur

11. Dominant Motivator &
the Individual Chararteristics
Achievement
■ Has a strong need
to set and
accomplish
challenging goals.
■ Takes calculated
risks to accomplish
their goals.
■ Likes to receive
regular feedback on
their progress and
achievements.
■ Often likes to work
alone..
Affiliation
■ Wants to
belong to the
group.
■ Wants to be
liked, and will
often go along
with whatever
the rest of the
group wants to
do.
■ Favors
collaboration
over
competition.
■ Doesn't like
high risk or
uncertainty.
Power
■ Wants to control
and influence
others.
■ Likes to win
arguments.
■ Enjoys competition
and winning.
■ Enjoys status and
recognition.
11 Unit 1: Being an Entrepreneur

12. 12
Session Objectives (4th May 2023)
■ Understand the concept of Lean Startup.
■ Explain the various components of Entrepreneurial
Ecosystem
■ Identify the reasons behind Startup failure

13. 1.
Lean Start-up
A new company on behalf of an existing one
to cater to the respective consumer markets

15. 15
15
“A lean startup is a method used to found
a new company or introduce a new
product on behalf of an existing
company.”
■ Developed by American entrepreneur
Eric Ries, founder, and CEO of the Long-Term
Stock Exchange (LTSE).
■ Validated learning
product developers can gauge consumer interest in the
product and determine how the product might need to be
refined.
■ Fail-Fast
if an idea is likely to fail, it will fail quickly and cheaply instead
of slowly and expensively
Unit 1: Being an Entrepreneur
Concept of Lean Startup

16. Examples
■ A healthy meal delivery
service that is targeting busy,
single 20-somethings in
urban areas might learn that
it has a better market in 30-
something affluent mothers
of newborns in the suburbs.
■ General Electric, Qualcomm,
and Intuit have all used the
lean startup method; GE
used the method to develop
a new battery for use by
cell phone companies in
developing countries where
electricity is unreliable.
16 Unit 1: Being an Entrepreneur

17. Zappos:
■ Launched In 1999 by Nick
Swinmum as an online shoe
retailer.
■ He just used a basic online
shoe selling website,
■ put some picture and waited
for the orders,
■ as soon as he got the orders,
he ordered those shoes from
the original shoe brand and
delivered it to the customer.
Pebble:
■ Online smart watch company.
■ tested the demand first by
creating a pre-launch page
and seeing if people would
actually buy something like
this or not.
17 Unit 1: Being an Entrepreneur

18. 18 Unit 1: Being an Entrepreneur
Double door fridge:
■ Launched by General Electric
to cater to the specialized
market in America & Europe.

19. 19
Can you name the Start-ups in
Grocery market?
Greengrocer Health food store Delicatessen milk bar Bulk grocery delivery service
Open a mini-grocery store Start a drug store Grocerant gluten-free grocery store
seafood business organic food store online grocer organic food delivery service
warehouse club meat store beverage store Dairy store Diet grocery store
dollar-grocery store
candy store

20. Can you name the types of
Start-ups from this product?
20

21. Team Activity
21
Two Entrepreneurs & Two Interviewers
• Choose a business family of your choice
involving 2 generations of Entrepreneurs

22. Extraordinary Ideas,
Extraordinary Entrepreneurs
22

23. 3.
Entrepreneurial Ecosystem
Let’s start with the first set of slides

24. 24
Start-up
Ecosystem
Support
organization
Big
Companies
Universities
Funding
organizations
Service
Providers
Research
Organizations
Unit 1: Being an Entrepreneur

25. Support Organizations
■ District Industry Centres (DICs)
■ Industrial Finance Corporation of
India (IFCI)
■ State Financial Corporation (SFCs)
■ Small Industries Development
Bank of India (SIDBI)
■ National Bank for Agriculture &
Rural Development (NABARD)
■ National Small Industries
Corporation (NSIC)
25 Unit 1: Being an Entrepreneur

26. Big Companies (Corporate
garages)
■ Mahindra Group
Startup ventures like
TechMahindra, Mahindra &
Mahindra
■ Tata Sons
Ratanji Tata investing in
■ Infosys
Narayan Murthy & Mohandas Pai
investing in various startups
■ Microsoft Ventures (M12)
26 Unit 1: Being an Entrepreneur

27. Famous Investments made
by Ratanji Tata
■ Can You find the name
a famous mobile
company invested by
him?
27 Unit 1: Being an Entrepreneur

28. Universities
■ Entrepreneurship Development Institute of
India
■ IIMA
■ IIMB
■ ISB
■ IIT-B
■ IIT-M
■ TISS
Advantages:
Dedicated courses on Entrepreneurship
Student clubs
Incubation services
Expert mentoring
Access to vast research innovations happening in
the institutions
Foreign collaborations 28 Unit 1: Being an Entrepreneur

29. Funding Organizations
■ India Aspiration Fund (IAF)
Joint colloboration of RBI,SIDBI, LIC
■ SIDBI Make in India Loan (SMILE)
Short-term loans for SME in 25 sectors
10000 crores allocation
■ Micro Units Development and
Refinance Agency (MUDRA Bank)
Loan facility to the startups in association
with Banks
20000 crores
■ Scheme for Promotions of
Innovation, Rural Industry &
Entrepreneurship (ASPIRE)
Promotes Innovation, Rural Industry
29 Unit 1: Being an Entrepreneur

30. Service Providers
■ Legal Services Providers
Incorporation, protection of IP,
Employment law,Arranging funds
from outside
■ Banking Relationship Services
Providers
Introducing investors, providing
financial assistance, accounting,
regulatory compliance
■ HR Partnering Services
Recruitment, formation of policy,
plans
■ Other Professional Services
providers
30 Unit 1: Being an Entrepreneur

31. Research Organizations
■ Confederation of Indian
industries (CII)
■ The Indus Entrepreneurs (TiE)
■ NASSCOM
■ Other Professional Services
providers
■ Federation of Indian Chamber
of Commerce and Industries
(FICCI)
■ Indian Chamber of Commerce
(ICC)
31 Unit 1: Being an Entrepreneur

32. Causes of Start-up
Failure.
32

33. 33
Product
failure
Market
failure
Finance
failure

34. Causes of Product Failure
34
Poor Timing
Under the misconception
of attracting new
customers
Inherent defect
Blue is the colour of the
clear sky and the deep
sea
Service
Blue is the colour of the
clear sky and the deep
sea
Lack of
promotional
measures
Blue is the colour of the
clear sky and the deep
sea
Unit 1: Being an Entrepreneur

35. Causes of Product Failure
35
Higher price
Under the misconception
of attracting new
customers
Unavailability of
Spare parts
Blue is the colour of the
clear sky and the deep
sea
Poor after-sale
Blue is the colour of the
clear sky and the deep
sea
Unit 1: Being an Entrepreneur

36. Causes of Market Failure
36
Positive &
Negative
Externalities
e.g. Education industry,
Cigarette market
Environment
concerns
Lack of public
goods
e.g. lighthouse, traffic
signal, Street lighting
National defense, radium
reflectors on road
Underproduction of merit goods
• Merit goods are goods or services that are
considered to be beneficial to individuals and
society as a whole, but are often under-
consumed in a free market economy.
• These goods have positive effects on health,
education, or the environment, but individuals
may not consume them in optimal quantities.
e.g. healthcare, education, sports centres
Unit 1: Being an Entrepreneur

37. Causes of Market Failure
37
Overprovision of
demerit goods
e.g. cigarettes, alcohol,
gambling, plastics, fast-
foods
Abuse of
monopoly power
e.g. Railways
Unit 1: Being an Entrepreneur

38. Causes of Financial Failure
38
Obtaining finance
Blue is the colour of the
clear sky and the deep
sea
Negative cash
flow
Blue is the colour of the
clear sky and the deep
sea
Mismanaging
marketing funds
Blue is the colour of the
clear sky and the deep
sea
Inadequate
insurance
coverage
Blue is the colour of the
clear sky and the deep
sea
Unit 1: Being an Entrepreneur

39. 5.
Revival of New Venture failure
Let’s start with the seven steps in launching a startup

40. How to turn-around New Venture
failure
Start with the Problem
Is the color of gold,
butter and ripe lemons.
In the spectrum of
visible light, yellow is
found between green
and orange.
Modify the Strategy
Is the colour of the
clear sky and the deep
sea. It is located
between violet and
green on the optical
spectrum.
Focus on Operations
Is the color of blood,
and because of this it
has historically been
associated with
sacrifice, danger and
courage.
Re-innovate the
Product
Is the color of gold,
butter and ripe lemons.
In the spectrum of
visible light, yellow is
found between green
and orange.
Refreshing the
Marketing Strategy
Is the colour of the clear
sky and the deep sea. It
is located between violet
and green on the optical
spectrum.
Re-Employ People
Is the color of blood,
and because of this it
has historically been
associated with
sacrifice, danger and
courage.
40
Altering the Business model
Is the color of blood, and
because of this it has
historically been associated
with sacrifice, danger and
courage.
Unit 1: Being an Entrepreneur

41. 6.
Steps involved in New Venture Start-up
Let’s start with the seven steps in launching a startup

42. Steps involved in new venture Startup
42
1 3 5
6
4
2
Business Idea
generation
Environmental
scanning
Feasibility
Analysis
Opportunity
recognition
Industry &
Competitor
Analysis
Business Plan
preparation
7
Project report
Preparation
Unit 1: Being an Entrepreneur