1. MG 298 Entrepreneurship Shivram V. MG 298 Entrepreneurship August 12 Shivram Venkatasubramaniam

2. MG 298 Entrepreneurship Shivram V. Agenda Introduction to Entrepreneurship Objectives and Types of Entrepreneurship Types of return Measures of return Reading(HBS article) discussion White nights and Polar Lights (Assignment)

3. MG 298 Entrepreneurship Shivram V. Entrepreurship Entre-pre-neurn. a person who organizes and manages a business undertaking, assuming the risk for the sake of profit - Webster’s New World College Dictionary

4. MG 298 Entrepreneurship Shivram V. Entrepreneurship Means for triggering social and economic development Requires certain staple and mandatory ingredients [capital, labour, management] Various milestones –Conception –Funding –Recruitment, growth, etc.

5. MG 298 Entrepreneurship Shivram V. New Venture Process Stages –Idea Development –Organizational creation –Capitalization –Organization Development Difficult process – most ventures fail midstream New ventures need help at each stage

6. MG 298 Entrepreneurship Shivram V. Entrepreneurial Eco-system Environment has to support entrepreneurs Principal Institutional Features Stable and Political Macro-environment Well developed financial system Labour market with abundant supply Robust legal system Large and adequately sophisticated consumer market Large supply of source organizations

7. MG 298 Entrepreneurship Shivram V. More on Entrepreneurship Implicit ingredients –Risk –Organizational and Individual objectives –Collective and individual profit motives “Necessity-based” Vs “Opportunity-based” Possible trigger for employment creation and acceleration of economic growth

8. MG 298 Entrepreneurship Shivram V. Analysing Entrepreneurship In terms of individual personality traits of entrepreneurs In terms of the enviroment and facilitating factors In terms of the entrepreneurship process and its various stages Which one provides the most insight?

9. MG 298 Entrepreneurship Shivram V. Generally speaking… Successful entrepreneurship is associated with the creation of value in the form of goods and services for one or more constituencies, employment for the citizens of the country concerned and a generally positive impact in terms of economic and social development.

10. MG 298 Entrepreneurship Shivram V. However.. Most new ventures falter at some stage or the other This makes the process-based view of entrepreneurship more relevant since it tells us what ventures require at each stage.

11. MG 298 Entrepreneurship Shivram V. Organizational forms and Business Models for Entrepreneurship Difference in various models stems from difference in: –Objectives –Type and amount of return sought (Investment criteria) –Metrics used to measure these returns Entrepreneurship means different things to different people

12. MG 298 Entrepreneurship Shivram V. Types of Returns Broadly speaking, there are 3 types of (non-mutually exclusive returns) –Economic value –Financial value –Social value They are closely linked yet different enough that each can be a dominant theme

13. MG 298 Entrepreneurship Shivram V. Measures of Return Economic value – Jobs created –Consumer purchasing power –General macro-economic indicators Financial value –ROI, revenue, income, various ratios Can you have one without the other?

14. MG 298 Entrepreneurship Shivram V. Measures of return Social value –General improvement in the lives of individuals and society as a whole –Most non-profits operate in this realm –Economic, social and/or financial interests of a community or section of society are advanced –Typically achieved at the expense of financial returns