entrepreneur vs. employee. small businesses dominate the u.s. economy source : south western...
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Entrepreneur Vs. Employee
SMALL BUSINESSES DOMINATE THE U.S. ECONOMY
90%
9%1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Number of employees
Perc
enta
ge o
f all
U.S.
bus
ines
ses
20 or fewer employees
21 to 500 employees
More than 501 employees
Source : South Western Publishing Survey Report
People who own, operate, and take the risk of a business venture are Entrepreneurs
“I studied everything but never topped.... But today the toppers of the best universities are my employees” - Bill Gates
“True Entrepreneurship comes only from Risk Taking”
Dhirubhai Ambani
Think beyond the Safe Zone
Crowned Entrepreneurs in India
Deep KalraEx-Employee, AMB AmroFounder, MakeMyTrip.com
Dhruv ShringiEx-Employee of ebookers.comFounder, Yatra.com(Lost 3 Partners in the beginning)
Sachin and Binny BansalAlumni of IIT, DelhiEx. Employees of Amazon.comFounders, FlipKart.comInitial Investment : INR 4 LacsINR 500 Crore Company in 5 Years, 5000 EmployeesAcquired WeRead, Mime360, ChakPak.com and Letsbuy.com
Vishal MehtaFounder & CEO, Infibeam.comEx. Employee of Amazon.com
VSS ManiManaging Director, JustDial.comInitial Investment : INR 50,000Current Company Value : INR 600 CroreFailures :AskMe in 1989, Wedding Planner with The Times of India
Vijay Shekhar SharmaCEO, One97 Communications and PayTMB.Tech., Delhi College of Engineering(Failures : XS Corps in 1999)
Murugavel JanakiramanFounder & CEO, Bharat Matrimony
Manik AroraDirector, IDG Ventures IndiaOzone Media Kreeda GamesSourcebits Technologies Vserv DigitalBrainBees FirstCry.comGoodlife.com Myntra.comZivame.com Lenskart.comWatchkart.com Bagskart.com
Kunal BahlCo-founder & CEO, SnapdealStarted Jasper Infotech in 2007Snapdeal in 2010
Shantanu PrakashDirector, Educomp Solutions Ltd.
Incorporation - 1994Bachelors from SRCC, Delhi University and MBA, IIM- A
Launched eCampus Launched PlanetVidya.comLaunched Smart Class Content solutionZeebo Inc.
Patanjali KeswaniLemon Tree Hotels Pvt. Ltd.Ex. Employee : Taj Group of HotelsB.Tech (Electrical Engineering) from IIT Delhi
Verghese KurienFounder, AMUL IndiaEx. Employee of Tata SteelsEducation : Mechanical Engineering
Anil JindalMilkman to Millionaire
CEO and MD, SRS Group
Madhur BhandarkarEx. Exployee :
* Video Cassette Library* Ram Gopal Verma Productions
• Companies with less than 50 employees, 44% were satisfied.
• Companies with 50-999 employees, 31% are satisfied.• Business with more than 1000, only 28% are satisfied.
Employee Satisfaction
2831
44
0
10
20
30
40
50
less than 50 50-999 1000+
Number of Employees
Sat
isfa
ctio
n P
erce
nta
ge
less than50
50-999
1000+
Entrepreneurs Vs. Intrapreneurs• Intrapreneur - in an existing organization turns
new ideas into profitable realities.
• Intrapreneurs - notice opportunities and take initiative to mobilize resources, however they work in large companies and contribute to the innovation of the firm.
• Intrapreneurs often become Entrepreneurs.
• Entrepreneurs - notice opportunities and take the initiative to mobilize resources to make new products and services.
Entrepreneurs are Made … Not Born!
Developed early in life ->– With Family Environment
Self Employed Parents ->– Support– Encourage Independence– Achievement– Responsibility
Advantages of a Small Business
• Greater Opportunities
• Feel more important
• Feel more secure
• Comfort Level
Disadvantages of a Small Business
• Lower guaranteed pay• Fewer benefits• Expected to have many skills• Too much cohesion• Hard to move to a big company• Large fluctuations in income possible
Successful and Unsuccessful Entrepreneurs
Successful– Creative and
Innovative– Position themselves
in shifting or new markets
– Create new products– Create new
processes– Create new delivery
Unsuccessful– Poor Managers– Low work ethic– Inefficient– Failure to plan and
prepare– Poor money
managers
Characteristics of Entrepreneurs
Key Personal Attributes
Good Technical Skills
Strong Managerial Competencies
SuccessfulEntrepreneurs
Suitability for Entrepreneurship
• Interests– Hobbies and interests– Past experiences
• Aptitude• Assess the advantages of Entrepreneurship• Assess the disadvantages of
Entrepreneurship
ADVANTAGES OF ENTREPRENEURSHIP
• Own Boss
• Choose a business that interests them
• Creative
• Lots of money
DISADVANTAGES OF ENTREPRENEURSHIP
• Risky.• Uncertain and Irregular Incomes• Long Working Hours• Must make all decisions by themselves
• Frustration with lack of immediate success• Inability to make the switch to results, or goal orientation.• Poor planning and implementation skills.
Entrepreneurship: Corporate INTRA-preneurs
To reap long-term benefits, top management must allow it to flourish in the day-to-day operations of the business….
This is known as “Skunkworks”
Skunkworks - Islands of intrapreneurial activity within an organization.
REMEMBER: On the island, formal rules and policies of the organization often DO NOT apply.
Evaluation of Opportunities and Risks• Is there a market? Will people buy?
• How much money would it take? Will I be able to borrow that much?
• How many hours a week are required? Am I willing to commit that much time?
• What are the risks? What is the rate of business failure?
• Do I have the right background? Do others who own this kind of business have more experience?
• How much money could I make?
Questions and Factors
• What are my motivations for owning a business?
• Should I start or buy a business?
• What and where is the market for what I want to sell?
• How much will all this cost me?
• Should my company be domestic or global?
Market Research
• Planning & Research essential
• Extensive market surveys (family, friends, neighbors…)
• Magazines and Polls offer some information on the market
-
• Govt. Reports
Entrepreneurship: Managing a Family Business
Over 50% of the U.S. Gross Domestic Product (GDP) is generated from family business.
12% of CEOs on the Inc. 500 list describe their company as a family business.
Entrepreneurship: Managing a Family Business
Two reasons not to go into business with your family or friends.…
Families fightFriends fight.
Often, it involves money. So a business environment could potentially breed arguments, disagreements, and feuds.
Fighting can occur during early developmental stages when hours are long and pay is low. Or, after success has been achieved.
Basis for a Personal Entrepreneurial Strategy
• Self assessment based on evaluation of – Your thoughts and actions– Feedback from others
• Become aware of blind spots• Reinforces your concepts of your strengths and
weaknesses• Evaluation of data that you gather • Develop insights about yourself• Establish goals to fill in the blank spots
– Education– Experience
• To make appropriate choices-to find fit with the ideas that present themselves.
Begin with a Personal and Company Vision
• Charts your personal and the company’s future strategic course
• Defines the business makeup for 5 years (or more)
• Specifies future technology-product-customer focus
• Indicates capabilities to be developed
Myths About Corporate Entrepreneurs
• Money is prime objective• High risk takers• Luck is critical• Lack morals or ethics• Power-hungry attitude and must build an
empire
Elements of this Presentation are Courtesy of Dr. Mohan Sawhney @ Kellogg School of Management
Key Ingredients for Success
Big
Idea
Competent
TeamSufficient
Money
Good
Plan
RelentlessRelentless
ExecutionExecution
And a generous helping of luck…And a generous helping of luck…
Courtesy of Dr. Mohan Sawhney @ Kellogg School of Management
The Idea: Assessing the Balance
Promise Differentiation
Support
Price
Target AudienceTarget Audience
What’s in it for me?Why is yours better?
Why should Ibelieve you?
Is this for me?
What are my costsof making it useful?
Effortrequired
Is it worth it?
Risk
What mightGo wrong?
Courtesy of Dr. Mohan Sawhney @ Kellogg School of Management
• Growth vs. Profit– Growth today is worth many times the profits tomorrow
• Speed vs. Deliberation– Know your speed limit, and don’t let VCs make you exceed it
• Opportunism vs. Strategy– Start out being opportunistic, but quickly become strategic
• Service vs. Product– Servicize to learn, then productize to earn
Firm and Company Formation
• Proprietary Firm
• LLP Company
• Pvt. Ltd. Company
• Ltd. Company
• Corporation
QUICK TIPS
Find a Vacuum and Fill It. Do Your Homework.
You Won't Be Committed if You're Not Having Fun.
Work Hard, Play Hard.
Set Goals (but go easy on the "vision" thing).
Trust Your Intuition.
Reach for the Sky (at least once).
Learn to Sell.
Become a Leader. Recognize a Failure and Move on.
Make the Most of Lucky Breaks.
Embrace Change as a Way of Life.
Develop Your Contacts.
Use Your Time Wisely.
Don't Put up with Mediocrity.
Chase Quality, Not Dollars.
Act Quickly in a Crisis.
After a Fall, Get Back in the Saddle Quickly.
Thanks …
Dr. Gaurav KumarManaging Director
Magma Research and Consultancy Pvt. Ltd.Ambala Cantt.
http://[email protected]
+91-9416366178, +91-9034001978