Introduction to Enterprise &

Entrepreneurship

Rohit Rammurthy
CHECKLIST

1. Course Plan
2. Case Studies & Class Discussions
3. Business Plan Outline
4. Class Representative
Introduction to Enterprise & Entrepreneurship

Session Outline

In this session we will –

1. Learn & Explore the Definition, Concept, Need & the

Functions of Entrepreneurship

2. Discuss the Entrepreneurial Mindset

3. Identify the common myths about Entrepreneurship

Introduction to Enterprise & Entrepreneurship
Introduction
(to-do-list FPS)
Introduction to Enterprise & Entrepreneurship

Meaning – Definition – Concept

The word Entrepreneurship is derived from the French word Entreprendre

which means “to undertake” It is commonly used to describe an individual
who organises and operates a business taking on the financial risk to do so.
The Entrepreneur is one who undertakes to organize, manage and assume
the risks of a business.
*What kind of risk?
According to A.H. Cole, “Entrepreneurship” is the purposeful activity of an
individual or a group of associated individuals undertaken to initiate,
maintain and aggrandize profit by production or distribution of economic
goods & services.
According to Richard Cantillon “Entrepreneurship” entails bearing the risk of
buying at a certain price and selling at uncertain prices.
Introduction to Enterprise & Entrepreneurship

Concept - Entrepreneurship
The concept of Entrepreneurship can be understood as
under:
1. Entrepreneurship involves decision making, innovation,
implementation, forecasting of the future, independency
& success.
2. It is a dynamic process of vision, change and creation.
3. It is a blend of capital, technology and human talent.
4. It is a knack of sensing opportunity where others see
chaos and confusion.
Introduction to Enterprise & Entrepreneurship

Meaning - Enterprise
• Enterprise means an economic organisation or activity. It is
called a place of business of an entrepreneur or an
individual.
• Enterprise is considered as an organization engaged in a
business activity.
Introduction to Enterprise & Entrepreneurship

Functions of an Entrepreneur
• There are five main functions of an Entrepreneur:
(a) Risk Bearing function
(b) Organizational function
(c) Innovative function
(d) Managerial function
(e) Decision making function
Introduction to Enterprise & Entrepreneurship

Dose of Inspiration
Introduction to Enterprise & Entrepreneurship

Entrepreneurial Mindset
Entrepreneurship is more than the mere creation of business.
The characteristics of seeking opportunities, taking risks
beyond security, and having the tenacity to push an idea
through to reality combine into a special perspective that
permeates entrepreneurs.

The term “Entrepreneurial Mindset” represents the cognition

and commitment to view the world with an innovative
perspective.
Introduction to Enterprise & Entrepreneurship

Myths of Entrepreneurship
• Entrepreneurs Are Doers, Not Thinkers.

• Entrepreneurs Are Born, Not Made.

• Entrepreneurs Are Always Inventors.

• Entrepreneurs Are Academic & Social Misfits.

• All Entrepreneurs Need is Money.

• All Entrepreneurs Need is Luck.

• Most Entrepreneurial Initiatives Fail.

• Most Entrepreneurs are Extreme Risk Takers.

Introduction to Enterprise & Entrepreneurship

Reflections
• What do you understand by Entrepreneurship & Enterprise?
• What are the functions of Entrepreneurs?
• What are the common myths around Entrepreneurship?
THANK YOU

Rohit Rammurthy
Faculty of Management & Commerce
rohitr@pes.edu
+919900008743
Introduction to Enterprise &
Entrepreneurship

Rohit Rammurthy
Introduction to Enterprise & Entrepreneurship

Session Outline

In this session we will –

1. Identify the common myths about Entrepreneurship
2. Practising the SEVEN essential enterprise skills
3. Scamper Technique
Introduction to Enterprise & Entrepreneurship
SEVEN Essential Enterprise Skills
1.Taking Initiative to Make Things Happen

Pick any solvable local problem within your community. Create a personal plan of action to start to resolve this problem.

2. Intuitive Decision-Making

Create a plan for learning something new like computer programming or a new language that will take you out of your ‘comfort
zone’. DOSE OF MOTIVATION

3. Connecting with People

Conceptualize a programme to help alleviate the lives of the less fortunate.

4. Identifying Opportunities

Think about the major or minor incidents that occurred in your life in the past few weeks. Create a list of top three
incidents/conditions/circumstances that you could turn into ‘opportunities’ alongside a ‘next step’ to initiate action.

5. Creative Problem-Solving

Try and spend time on those problems that annoy you the most and that you believe not only solvable but also worth your time
solving.

6. Strategic Thinking

Becoming familiar with what master strategists used in the past to ‘get what they wanted’ would be a good starting point in building
your own strategic thinking skill set.

7. Personal Effectiveness

Develop a plan to become physically and financially independent spanning over a period of one year. Detail down to the individual
tasks to be achieved for each milestone you set for yourself.
Introduction to Enterprise & Entrepreneurship

What is Creativity?
Along with the profit motive, risk taking, opportunity recognition and the
creation of an enterprise, creativity and innovation are also fundamental aspects
of entrepreneurship.

Creativity is the ability to make sense of the world in new ways, to discover
hidden patterns and make connections between seemingly unrelated
phenomena.

This is done for the purpose of generating solutions to problems, which is the
main focus of the creative individual.

Exercising creativity requires three fundaments—experience, skill and talent.

The greater the experience, skill and talent set, the greater the scope for
creative thinking.
Introduction to Enterprise & Entrepreneurship

SCAMPER Technique
S – Substitute

C – Combine

A – Adapt

M – Modify

P – Put to other uses

E – Eliminate

R – Rearrange
Introduction to Enterprise & Entrepreneurship

The Creativity Process

1. Background or Knowledge Accumulation
Join professional groups, attend professional meetings, travel to new places, scan
magazines, newspapers, journals, record information and devote time to pursue natural
curiosities.

2. The Incubation Process

Allow your subconscious to mull over tremendous amounts of information gathered during
the preparation phase. Getting away away from a problem and letting subconscious mind
work on it allows creativity to spring forth. Ex: “Why don’t you sleep on it?”

3. The Idea Experience

This is often called as the “Eureka Moment” Slowly but surely the person begins to
formulate the solution. Speed up the idea experience by day dream and fantasize about
your project, work in a leisurely environment, take breaks, keep a notebook to keep
recording your thoughts.

4. Evaluation & Implementation

This is the most difficult step of a creative endeavor and requires a great deal of courage,
self-discipline and perseverance. Rework on your ideas to put them into final form. Increase
your energy levels with proper exercise, diet & rest. Test your ideas with knowledgeable
people, educate yourself with the selling process and take notice of your intuitive hunches
and feelings.
Introduction to Enterprise & Entrepreneurship

What is Innovation?
• Innovation is the transformation of a creative idea or an invention into a
‘solution’ that is ‘better’ than what was available in the past and generates
new value.

• Innovation is different to invention.

• Technology-Push: Introducing new products based on original research.

• Customer-Pull: Finding ways to solve customer ‘problems’ without relying on

novel science.
Introduction to Enterprise & Entrepreneurship

Sources of Innovative Ideas

1. Trends: The close observation of trends whether societal, technological,
economic or governmental and the valuable insights that emanate therefrom
constitute an abundant source of potential entrepreneurial ideas.

2. Unexpected Occurrences – 9/11 attacks, Pandemic

3. Incongruities – Overnight package delivery

4. Process Needs – Sugar free products, caffeine free products

5. Industry & Market Changes – Health care changing to home health care

6. Perceptual Changes – Exercise and growing concern for fitness

7. Knowledge based concepts – Mobile phones today does almost all work.
Introduction to Enterprise & Entrepreneurship

Types of Innovation
1. Invention – Totally new product, service or process. Ex: Wright brothers

2. Extension – New use or different application of an already existing product,

service or process. Ex: Ray Kroc, Mark Zuckerberg, Barry Sternlicht

3. Duplication – Creative replication of an existing concept. Ex: Walmart

4. Synthesis – Combination of existing concepts and factors into a new

formulation or use. Ex: Fred Smith & Howard Schultz
Introduction to Enterprise & Entrepreneurship

Principles of Innovation
1. Be Action Oriented: Active and Searching for new ideas, opportunities &
sources of innovation.

2. Make the Product, Service or Process simple and understandable.

3. Make the product, process or service – customer based / centric.

4. Start small.

5. Aim High.

6. Try/ Test/ Revise.

7. Learn from Failures.

8. Follow a milestone schedule.

9. Work-work-work.
Introduction to Enterprise & Entrepreneurship

Gig Economy
India’s gig sector is likely to grow to US$455 billion at a CAGR of 17 per cent by
2024. It has the potential to grow at least 2 times the pre-pandemic estimates,
according to the ASSOCHAM report.

As of now, India has a pool of 15 million independent workers staffed in projects

across IT, HR and planning. India's labour force is developing by 4 million
individuals every year. Furthermore, as the greater part of them are youthful
recent college grads, they are showing an expanding inclination for gig contracts.

India possessing one of the world’s youngest working populations, we are on the
path to becoming the biggest economy in the world with the highest number of gig
workers and volume and value of work.
Introduction to Enterprise & Entrepreneurship

Reflections
• What are the seven essential enterprise skills?
• What is creativity? SCRAMPER?
• What is Innovation? Principles?
Introduction to Enterprise &
Entrepreneurship

Rohit Rammurthy
Introduction to Enterprise & Entrepreneurship

Session Outline
In this session we will –
1. Explore what leads to Creativity & Innovation
2. Product Innovation
3. Intrapreneurship & Traits of Successful Entrepreneurs
4. Mini Case – Gig Economy
Introduction to Enterprise & Entrepreneurship

What is Creativity?
Along with the profit motive, risk taking, opportunity recognition and the
creation of an enterprise, creativity and innovation are also fundamental aspects
of entrepreneurship.

Creativity is the ability to make sense of the world in new ways, to discover
hidden patterns and make connections between seemingly unrelated
phenomena.

This is done for the purpose of generating solutions to problems, which is the
main focus of the creative individual.

Exercising creativity requires three fundaments—experience, skill and talent.

The greater the experience, skill and talent set, the greater the scope for
creative thinking.
Introduction to Enterprise & Entrepreneurship

The Creativity Process

1. Background or Knowledge Accumulation
Join professional groups, attend professional meetings, travel to new places, scan
magazines, newspapers, journals, record information and devote time to pursue natural
curiosities.

2. The Incubation Process

Getting away away from a problem and letting subconscious mind work on it allows
creativity to spring forth. Ex: “Why don’t you sleep on it?”

3. The Idea Experience

This is often called as the “Eureka Moment” Slowly but surely the person begins to
formulate the solution. Speed up the idea experience by day dream and fantasize about
your project, work in a leisurely environment, take breaks, keep a notebook to keep
recording your thoughts.

4. Evaluation & Implementation

This is the most difficult step of a creative endeavor and requires a great deal of courage,
self-discipline and perseverance. Rework on your ideas to put them into final form. Increase
your energy levels with proper exercise, diet & rest. Test your ideas with knowledgeable
people, educate yourself with the selling process and take notice of your intuitive hunches
and feelings.
Introduction to Enterprise & Entrepreneurship

What is Innovation?
• Innovation is the transformation of a creative idea or an
invention into a ‘solution’ that is ‘better’ than what was
available in the past and generates new value.

• Innovation is different to invention.

• Technology-Push: Introducing new products based on

original research.

• Customer-Pull: Finding ways to solve customer ‘problems’

without relying on novel science.
Introduction to Enterprise & Entrepreneurship

Sources of Innovative Ideas

1. Trends: The close observation of trends whether societal, technological,
economic or governmental and the valuable insights that emanate therefrom
constitute an abundant source of potential entrepreneurial ideas.

2. Unexpected Occurrences – 9/11 attacks, Pandemic

3. Incongruities – Overnight package delivery

4. Process Needs – Sugar free products, caffeine free products

5. Industry & Market Changes – Health care changing to home health care

6. Perceptual Changes – Exercise and growing concern for fitness

7. Knowledge based concepts – Mobile phones today does almost all work.
Introduction to Enterprise & Entrepreneurship

Types of Innovation
1. Invention – Totally new product, service or process. Ex: Wright brothers

2. Extension – New use or different application of an already existing product,

service or process. Ex: Ray Kroc, Mark Zuckerberg, Barry Sternlicht

3. Duplication – Creative replication of an existing concept. Ex: Walmart

4. Synthesis – Combination of existing concepts and factors into a new

formulation or use. Ex: Fred Smith & Howard Schultz
Introduction to Enterprise & Entrepreneurship

Product Innovation
Product Innovation is probably the most famous type of innovation. Product
innovation is the development or improvement of products in a way that tries to
solve problems for consumers, customers, companies or society at large.

Why should companies should consider product innovation?

1. Competitive advantage
How does it look in practice?

The sweet spot is balancing the three approaches: new products, improvements
and targeting new markets. Focusing only on one of them is a mistake we see
even in big companies.
Introduction to Enterprise & Entrepreneurship

Product Innovation
For example, in 2003 Lego ventured on new markets. Unfortunately, they lost
focus and went on selling clothes, accessories and lifestyle products. After these
failed experiments, they refocused on their core business and positioned
themselves as leaders in toy construction kits. This focus enabled them to grow
their revenue from €0.9 billion in 2004 to €4.8 billion in 2015.

Apple is also maintaining its competitive advantage through product innovation.

Since the introduction of the smartphone in 2007, Apple has iterated on their
innovation and initially gained market share and also took out of business slow
to innovate competitors.

However, some caught up pretty fast and as we’ve seen in recent years, Apple
lost market share in front of Samsung. In turn, they have grown by adding other
products and services, like iCloud, Apple Music and different earbuds and
headphones.
Introduction to Enterprise & Entrepreneurship
Why should companies consider product
innovation? Contd…
2. Encourages resilience
It is common for companies that miss the innovation train and lag behind their
competition to eventually disappear altogether.

Product innovation is the chance to bounce back. If you create the right
circumstances and strategize around this decision, product innovation can help
you pivot.

Consider Nokia, a company famous for its numerous innovations and strategic
pivots. They started as a wood pulp mill, then moved on to rubber boots and of
course to their most recognizable products, the Nokia cell phones.

When Apple took the world by storm with their smartphones, Nokia was not
able to catch up. They were close to bankruptcy but once they sold their cell
phones business to Microsoft, they pivoted their business once more and turned
to high-end networking and software products.
Introduction to Enterprise & Entrepreneurship
Why should companies consider product
innovation? Contd…
3. Drives growth

Product innovation allows companies to grow, turn higher profits and conquer
new markets. There are several contributing factors that enable growth and
those that get product innovation right reap the benefits on a long term

Three types of product innovation

1. Development of new products (NPD)
2. Improvement of existing product or service
3. New features to a product
Introduction to Enterprise & Entrepreneurship

NPD – NEW PRODUCT DEVELOPMENT

Introduction to Enterprise & Entrepreneurship

Intrapreneurship
The best way to become more innovative today is by creating a more
entrepreneurial culture.

When an organization does this, it is referred to as intrapreneurship.

Intrapreneurship is simply entrepreneurship in an existing organization.

Intrapreneurship is entrepreneurship with a safety net

Introduction to Enterprise & Entrepreneurship

Traits of Successful Entrepreneurs

1. Robust Work Ethic
2. Deep Passion
3. Creativity
4. Motivated Self-Starters
5. Eager to Learn
6. Curiosity
7. Adaptability
8. Team Building
9. Risk Tolerance
10. Comfortable with Failure (DOSE OF MOTIVATION)
11. Long-Term Focus
Introduction to Enterprise & Entrepreneurship

Gig Economy
India’s gig sector is likely to grow to US$455 billion at a CAGR of 17 per cent by
2024. It has the potential to grow at least 2 times the pre-pandemic estimates,
according to the ASSOCHAM report.

As of now, India has a pool of 15 million independent workers staffed in projects

across IT, HR and planning. India's labour force is developing by 4 million
individuals every year. Furthermore, as the greater part of them are youthful
recent college grads, they are showing an expanding inclination for gig contracts.

India possessing one of the world’s youngest working populations, we are on the
path to becoming the biggest economy in the world with the highest number of gig
workers and volume and value of work.
Introduction to Enterprise & Entrepreneurship

Reflections

• What is Innovation?
• What is the importance of Product innovation?
• What is Intrapreneurship?
• What are the traits of successful entrepreneurs?