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What is an 'ENTREPRENEUR' ?
"Entrepreneurs are different"
An individual who, rather than working as an employee, runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes. Someone who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what, how, and how much of a good or service will be produced. An entrepreneur supplies risk capital as a risk taker, and monitors and controls the business activities. The entrepreneur is usually a sole proprietor, a partner, or the one who owns the majority of shares in an incorporated venture. According to economist Joseph Alois Schumpeter (1883-1950), entrepreneurs are not necessarily motivated by profit but regard it as a standard for measuring achievement or success. Schumpeter discovered that they ; greatly value self-reliance, strive for distinction through excellence, are highly optimistic (otherwise nothing would be undertaken), and always favor challenges of medium risk (neither too easy, nor ruinous).
What is an 'Entrepreneurship' ? Entrepreneurship is the process of starting a business or other organization. The entrepreneur develops a business model, acquires the human and other required resources, and is fully responsible for its success or failure. Entrepreneurship operates within an entrepreneurship ecosystem. The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses. In economics, entrepreneurship combined with land, labor, natural resources and capital can produce profit. Entrepreneurial spirit is characterized by innovation and risk-taking, and is an essential part of a nation's ability to succeed in an ever changing and increasingly competitive global marketplace.
What are the characteristics of entrepreneurs?
An unwavering passion.
Open-mindedness.
The desire to be an expert.
A forward-looking approach.
A constant flow of ideas.
Confident
Feels a sense of ownership
able to communicate
Team player
System oriented
Dedicated
Optimistic
Gregarious
Not afraid of risk or success
Embrace these qualities and you will become a better entrepreneur.
Potential obstacles to entrepreneurial :
uncertainty of revenue accruing from starting a business that does not guarantee the achievement of revenue that would provide the necessary support, entrepreneur, risk of losing the entire investment due to the relatively high percentage (approximately 35%) of bankruptcies of small businesses, even in the first two years and in six years the percentage is nearly double; hard labor without a long period of leave under pressure because if the business ceases, the income is no longer made and customers are lost; poor quality of life until the business stabilizes, due to the fact that in a important period of life (entrepreneurs start their business, usually between 25 and 39 years), their roles in the family after the two fall in terms of the company that creates; high stress due to large investments that need to be entrepreneurs, in a low certainty of winning even as they have invested, what it can lead to bankruptcy;
full responsibility for the effects of entrepreneurs to take decisions which, by issues that often have little knowledge or lack of assistance of a specialist in the field; discouragement and disillusionment caused by the obstacles they may face, which sometimes seem insurmountable, making only characterized by optimistic entrepreneurs to enjoy success.
Choosing a Form of Business :
Sole Proprietorship: In a sole proprietorship, the individual entrepreneur owns the business and is fully responsible for all its debts and legal liabilities. More than 75 percent of all U.S. businesses are sole proprietorships. Examples include writers and consultants, local restaurants and shops, and home-based businesses. Partnership: A partnership consists of two or more people who share the assets, liabilities, and profits of a business. The greatest advantage comes from shared responsibilities. Partnerships also benefit by having more investors and a greater range of knowledge and skills. Corporations: Corporations are recommended for entrepreneurs who plan to conduct a large-scale enterprise. As a legal entity that has a life separate from its owners, a corporation can sue or be sued, acquire and sell property, and lend money.
WRITING A B-PLAN : There are many reasons for writing a business plan:
To convince oneself that the new venture is worthwhile before making a significant financial and personal commitment.
To assist management in goal-setting and long-range planning.
To attract investors and get financing. To explain the business to other companies with which it would be useful to create an alliance or contract.
To attract employees.
The basic elements of a standard business plan include:
Title Page
Table of Contents
Executive Summary
Company Description
Product/Service
Market and Competition
Marketing and Selling Strategy
Operating Plan
Management/Organization
Financing
Supporting Documents
Major mistakes of entrepreneurs :
poor management
lack of experience low quality financial control low quality marketing lack of a strategy based uncontrolled growth (cause unwelcome fall) poor choice of location :- Although considered by many entrepreneurs as being less important, the choice of location may be one of the mistakes that may even lead to business failure. Choosing the location where the availability of spaces and not the result of careful studies that benefit may be an important brake on development of that business and even disappears.
Poor inventory :- Although the biggest investment they make entrepreneurs are necessary material means (machines, equipment, facilities, etc.), often less attention is given to the good of their inventories. However, an inefficient inventory could lead to redundant stocks generally unjustified expenses that may constitute grounds for failure in the continuation of that business.
setting incorrect price
Financing :
Presonal savings friends and family bank loans venture investors government plans Bootstrapping :- Entrepreneurs may attempt to "bootstrap" a company rather than seeking external investors. One consensus definition of bootstrapping sees it as "a collection of methods used to minimize the amount of outside debt and equity financing needed from banks and investors". Most commonly, entrepreneurs engaging in bootstrapping incur personal credit-card debt, but they may utilize a wide variety of methods. While bootstrapping involves increased risk for entrepreneurs, the absence of any other stakeholder gives the entrepreneur more freedom to develop the company. Many successful companies - including Dell Computer and Facebook - started by bootstrapping. Types of bootstrapping include: owner financing sweat equity minimization of accounts payable joint utilization delaying payment minimizing inventory subsidy finance personal debt External financing Many businesses need more capital than can be provided by the owners themselves, and in this case, a range of options is available including: Angel investors Venture capital investors. Crowd funding Hedge funds Alternative Asset Management
Some of these sources provide not only funds, but also financial oversight, accountability for carrying out tasks and meeting milestones, and in some cases business contacts and experience in many cases in return for an equity stake.
Selling Online : To start an online business, an entrepreneur must: Register a domain name an Internet name and address. Purchase a server or contract with an Internet service provider to host the Web site. Buy Internet software to create a Web site or hire an expert to do so. Design an attractive and easy-to-navigate online store.
Create an online catalog. Provide clearly written information, without technical
language or jargon. Use lots of photos to encourage potential customers to buy. Include clear instructions to order by phone or online.
Establish a payment method. Some companies bill a customer before or after
shipping merchandise. This may cause payment delays, however. Another option is to have customers use credit or debit cards online. A business can get a bankauthorized transaction- processing account (merchant account) for handling the revenue (and fees) from credit card transactions from a bank or other institution that processes credit cards online. Alternately, it is possible to hire an on- line payment service, such as WorldPay (www.world- pay.com), to handle these transactions.
Make the Web site secure, especially to protect customers financial information. Hiring a technology expert is time and money well spent as compared to the potential risk of security violations.
Establish a policy for shipping. Options include letting the business absorb the cost (no charge), includ- ing costs in the listed prices, or explicitly listing ship- ping charges. Customers should never be surprised at the end of a transaction with shipping costs. Cus- tomers may cancel the sale.
Offer customers an e-mail address or phone number for complaints, suggestions,
or compliments, and re- spond to them. This can boost customer loyalty
Glossary of terms Angel investors: Individuals who have capital that they are will- ing to risk. Angels are often successful entrepreneurs who in- vest in emerging entrepreneurial ventures, often
as a bridge from the self-funded stage to the point in which a business can attract venture capital. Assets: Items of value owned by a company and shown on the balance sheet, including cash, equipment, inventory, etc. Balance sheet: Summary statement of a companys financial po- sition at a given point in time, listing assets as well as liabilities. Breakeven point: Dollar value of sales that will cover, but not exceed, all of the companys costs, both fixed and variable. Bridge finance: Short-term finance that is expected to be repaid quickly. Browser: A computer program that enables users to access and navigate the World Wide Web. Business incubator: This is a form of mentoring in which work- space, coaching, and support services are provided to entre- preneurs and early-stage businesses at a free or reduced cost. Business plan: A written document detailing a proposed venture, covering current status, expected needs, and projected results for the enterprise. It contains a thorough analysis of the prod- uct or service being offered, the market and competition, the marketing strategy, the operating plan, and the management as well as profit, balance sheet, and cash flow projections. Capital: Cash or goods used to generate income. For entrepre- neurs, capital often refers to the funds and other assets invested in the business venture. Cash flow: The difference between the companys cash receipts and its cash payments in a given period. It refers to the amount of money actually available to make purchases and pay current bills and obligations. Cash flow statement: A summary of a companys cash flow over a period of time. Collateral: An asset pledged as security for a loan. Copyright: Copyright is a form of legal protection for published and unpublished literary, scientific, and artistic works that have been fixed in a tangible or material form. It grants exclusive rights to the works creator for a specified period of time. Corporation: A business form that is an entity legally separate from its owners. Its important features include limited liabil- ity, easy transfer of ownership, and unlimited life. Depreciation: The decrease in the value of assets over their ex- pected life by an accepted accounting method, such as allocat- ing the cost of an asset over the years in which it is used. E-commerce: The sale of products and services over the Inter- net.
Entrepreneur: A person who organizes, operates, and assumes the risk for a business venture. Equity: An ownership interest in a business. Home-based business: A business, of any size or type, whose pri- mary office is in the owners home. Income statement: Also known as a profit and loss statement, it shows a firms income and expenses, and the resulting profit or loss over a specified period of time. Intangible assets: Items of value that have no tangible physical properties, such as ideas. Internet: The vast network of networks connecting millions of individual and networked computers worldwide. Inventory: Finished goods, work in process of manufacture, and raw materials owned by a company. Joint venture: A legal entity created by two or more businesses joining together to conduct a specific business enterprise with both parties sharing profits and losses. Liabilities: Debts a business owes, including accounts payable, taxes, bank loans, and other obligations. Short-term liabilities are due within a year, while long-term liabilities are due in a pe- riod of time greater than a year.
Top entrepreneurs of the world :
Lawrence Page reputed to be worth a staggering $17.5bn at 37 years old, Larry is the co-founder of Google Inc . Sergey Brin again reputed to be worth more than $17.5bn Brin is also the cofounder of Google and high on our list of famous entrepreneurs. Jeffrey Bezos estimated to be worth in the region of $12.3bn Bezos was born to a teenage mother in Albuquerque, New Mexico and later became known as the man who set up Amazon, amongst other things.
Bill Gates- Gates is widely thought of as the Worlds richest man and has become in many ways a household name due to his enormous wealth and yet few people know what goes on behind the face of Microsoft. Warren Buffett Warren Edward Buffett is known as an American investor, industrialist and philanthropist and is accepted as one of the most accomplished investors around today. Pierre Omidyar estimated to be worth in the region of $5.2bn Pierre came to light as the founder of eBay auction site when he was just 28 years old. Steve Jobs Talking of internet success stories lets take a look at the late Steven Paul Jobs. Jobs was an American business magnate and inventor better known for being the cofounder and CEO of Apple computers. Jobs has an interesting past, previously serving as CEO of Pixar Animation Studios. A lot has been said of Jobs demanding and aggressive style and Fortune magazine reported that he is considered one of Silicon Valleys leading egomaniacs. Mark Zuckerberg today Zuckerberg is reputed to be valued at somewhere close to $4.0bn At 25 this is pretty good I guess and as Zuckerberg occupies this list as the youngest of our billionaires, I guess this is testament to the power of the internet. Richard Branson Bringing up the rear in pretty good style is Sir Richard Charles Nicholas Branson. Branson is a British businessman, entrepreneur and all round nice guy, recognized as the founder and CEO of the Virgin Group of over 400 companies in recent years. As a child, Branson has dyslexia and is reported to have struggled academically, before discovering his ability to connect with and influence people. in 1984 Branson formed Virgin Atlantic Airways.
List of Indian entrepreneurs :
Name
Founded
Verghese Kurien
Amul
Azim Premji
Wipro
Lakshmi Mittal
ArcelorMittal
Dhirubhai Ambani
Reliance Industries
Anand Mahindra
Mahindra and Mahindra
Sabeer Bhatia
Hotmail
Sachin Bansal & Binny Bansal
Flipkart
Grandhi Mallikarjuna Rao
GMR Group
Phanindra Sama and Charan Padmaraju
G. R. Gopinath N. R. Narayana Murthy Shiv Nadar V. G. Siddhartha Kiran Mazumdar-Shaw Gautam Thapar
Redbus.in Air Deccan Infosys HCL Technologies Caf Coffee Day Biocon Avantha Group
Sunil Mittal
Bharti Enterprises
Venugopal Dhoot
Videocon
Karsanbhai Patel Vishal Gondal Ardeshir Godrej, Pirojsha Godrej, Adi Godrej Kallam Anji Reddy Jamnalal Bajaj, Rahul Bajaj Prathap C. Reddy Ajay Piramal, Swati Piramal Kalanithi Maran Prannoy Roy
Nirma Indiagames Godrej Group Dr. Reddy's Laboratories Bajaj Group Apollo Hospitals Piramal Enterprises Ltd Sun Group NDTV
