Entreprenuership introduction
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Flintobox is a Chennai-based startup that creates discovery boxes for children ages 1-12 to develop critical skills. It raised $1 million in 2016. It now has over 4 lakh customers, with 40% in metros and 60% in tier 2 cities. The entrepreneur aims to reach 60,000 boxes per month globally. The document discusses definitions of entrepreneurs, their characteristics like goal orientation, leadership, and adaptability. It analyzes profiles of successful Indian entrepreneurs like Ritesh Agarwal of OYO, Kunal Shah of FreeCharge, and Azhar Iqbal of InShorts. Causes of business failure and strategies for handling doubts are addressed. The legal aspects of starting a
Entreprenuership introduction
- 1. 208 - Start Up and New Venture Management Generic Elective – University Level UNIT 1 Being an Entrepreneur
- 5. Flintobox Chennai based start-up Need – best way to nurture kids creativity and curiosity Discovery boxes for age 1-12years Create, play, read, explore and such 12 critical areas of development $ 1million in series A round led by Ashwin Chadha, GSF Global, Globevestor, AECAL, Mauj Mobile in August 2016 4 lakh customer 40% in metros, 60 in tier 2 cities, Aspiration level – 60,000 boxes per month Global aspirations
- 6. -The entrepreneur, Profile analysis, behavior 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. -Legal Fundamentals - When, how and where to incorporate. CONTENTS:
- 7. ENTREPRENUER: The term entrepreneur is derived from the French word ‘entreprendre’ which means ‘to undertake’. It means the person who undertakes the risk of the new enterprise. In the 16th century the Frenchman who organized and led military expeditions were referred as Entrepreneurs. According to Richard Cotillion: An entrepreneur is a person who buys factor services at certain prices with a view to selling its product at uncertain price. According to International Labor Organization (ILO): Entrepreneurs as those people who have the ability to see and evaluate business opportunities, together with the necessary resources to take advantage of them and to initiate appropriate action to ensure success
- 8. ENTREPRENUER: According to Peter F. Drucker: An entrepreneur is one who always searches for change, responds to it and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, that means by which they exploit change as an opportunity for a different business or service Venkataraman (1997) defines entrepreneurship research as an attempt to understand how opportunities aimed at bringing into existence future goods and services are discovered, created and exploited by whom and to what effect. Morris (1998) asserts that entrepreneurship is the process through which individuals and teams create value by bringing together unique packages of resource-inputs to exploit opportunities in the environment.
- 9. DEFINITIONS… Morrison (1998) defines entrepreneurship in terms of two key concepts of innovation and creativity. Entrepreneurship is thus defined as the process of doing something new (creative) and something different (Innovative) for the purpose of creating wealth for the individual and adding value for the society. Creativity and innovation have been used complimentarily in the field of entrepreneurship. Another definition comes from Drucker (1985), as cited in Landstrom (2005), who sees Entrepreneurship as an act of innovation that involves endowing the existing resources with new wealth producing capacity. In fact, this definition negates creativity as an entrepreneurial act From these definitions, we can develop our operational definition of entrepreneurship as constituting people who have the ability to see and evaluate business opportunities, gather the necessary resources, take advantage of them and initiate appropriate action to ensure success.
- 10. Ritesh Agarwal Ritesh Agarwal’s entrepreneurial journey is one of the most successful entrepreneur stories in India. After dropping out of college, he launched his first start-up Oravel Stays, which was a budget hotel chain that provided B&B. And that elevated to OYO rooms from when he realized no other service offered a room for a budget traveler. Begun with only 11 rooms in a Gurgaon hotel, OYO rooms is now a hub for elite hotel stays with 65000 rooms in about 5500 properties across India. Kunal Shah Free charge, the popular platform which revolutionized the online recharge framework with three-step revives alongside giving offers of same esteem was the brainchild of Kunal Shah and Sandeep Tandon. The organization was established in 2010 and was as of late procured by Snap deal
- 11. Azhar Iqbal Azhar Iqbal dropped out in his 4th year of college(seventh semester). He made news by introducing InShorts the one and only app which cuts to the chase delivering only vital details in a news to all those lazy people and even to those who don’t have enough to go through all of them. The app makes sure that each news is conveyed in less than 60 words. Got a minute to spare? Keep up with the world with news in shorts. It started as a Facebook page and now it has made its share of fame so well that it received INR25 Cr in funding three months back. Vijay Shekhar Sharma After passing out from college, he started his first company- ‘XS Communications’, a college-based startup that created Content Management Systems, which was being used by major publications including The Indian Express. While trying to set up (One97 Communications) Paytm. Vijay’s investors were not confident about the idea of a mobile-first consumer service that would cater to the masses, while India’s telecom infrastructure was improving in 2010. He personally put $2 Mn at stake to finally launch the brand. The rest, as they say, is history.
- 12. Profile Analysis: Factor 1: Goal orientation – tendencies toward creativity and innovation, degree of determination in reaching goals, and personal perception as to overall handling of work situations. Factor 2: Leadership – aptitudes toward management and leadership. Factor 3: Adaptability – ability to perceive environmental change and adaptability. Factor 4: Need for achievement – the desire for fame, success and social affirmation and respect from others. Factor 5: Need for self-empowerment – the desire to realize oneself through one’s job which, apart from any economic goals, must be enjoyable, satisfying and interesting. Factor 6: Innovation – curiosity for what is new. Factor 7: Flexibility – tendency to reorient one’s goals according to external situation. Factor 8: Autonomy – necessity of having one’s own independent space to make decisions and choices
- 13. Behavior: Need to achieve (goals should achieve) Independence (start business their own) Risk bearing (ready to face uncertainty) Locus of control (governing and shaping the goals with high control) Determination (working sincerely on goal achieving) Positive self-concept (thinking positive and analyze anything by SWOT analysis) Ability to find and explore opportunities (finding/grab opportunities) Hope success (feeling success in each and every step they move no failure) Flexibility (measuring pros and cons of decision and tend to change if situation demands) Analytical ability of mind (unaffected by personal likes and dislikes) Sense of efficacy (oriented always to goals no deviation or diversion by external influence
- 14. Behavior: Openness to feedback and learning from experience (ready to accept feedback) Confronting uncertainty (they are always optimistic, they take odd as the opportunity) Interpersonal skills (they like dealing with people at all levels) Need to influence others (they influence the others by their goals and their procedures/convince others) Stress takers (ready to work for long hours with full energy) Time orientation (they will stick on to the time, time is important) Innovators (they will introduce new products and services) Business communication skill (they must have good communication to lead market) Telescopic ability (they will think every activity in microscope) Leadership (they will act as leaders to lead business) Business planning (they will plan present and future course of action) Decision making (they have quick decision making ability) Ability to mobilize resources (they will mobilize 6-M’s: Man, Money, Machinery, Market and Method) Self-confidence (they must have self-confidence about their goal achievement)
- 15. Nandan Reddy Nandan Reddy along with his mate Sriharsha Majety, changed the way India eats. They both started with Bundle, a logistics aggregator, which connected SMEs to courier service providers. A year later, when the business was doing pretty well, they shifted their focus to the food service industry when Swiggy, the food delivery app rolled out into reality. Since its inception, Swiggy has rapidly grown to become a leader in the Indian food delivery sector by consistently shrinking delivery timelines and improving customer experience Phanindra Sama RedBus has made booking bus tickets way easier than before and it all started when its founder, Phanindra Sama could not go home for Diwali due to the notorious Bangalore Traffic. He realized some key issues with the then-existing bus model and found internet as the best medium for solving these issues by putting together information on a platform where customers could access it easily and take better decisions. By April 2014 RedBus launched hotel booking powered by Ibibo Group’s followed by redbus teaming up with Uber.
- 17. About TerraCycle TerraCycle is an innovative recycling company that has become a global leader in recycling typically hard-to-recycle waste TerraCycle was founded in 2001 by Tom Szaky, then a student at Princeton University, on a mission towards Eliminating the Idea of Waste®. From these humble beginnings TerraCycle has grown into the global leader in collecting and repurposing hard-to-recycle waste: operating in over 20 countries, engaging over 60 million people, and recycling billions of pieces of waste through various innovative platforms.
- 29. Elements of Entrepreneurial Ecosystem: Individual’s entrepreneurial orientation often linked to supportive entrepreneurial ecosystem (Mack & Mayer 2015) Strategic resources are essential for entrepreneurs to exploit entrepreneurial opportunities (Klein et al. 2012) Problem is that these strategic resources fall beyond the control of entrepreneurs Need for an enabling entrepreneurial ecosystem?
- 30. Failure of Entrepreneurs: Management mistakes Lack of experience Poor financial control Weak marketing efforts Failure to develop a strategic plan Uncontrolled growth Poor location Improper inventory control Incorrect pricing Inability to make the “entrepreneurial transition”
- 31. Handling doubts on survival of business: Know your business in depth Develop a solid business plan Manage financial resources Understand financial statements Learn to manage people effectively Keep in tune with yourself
- 32. Legal Fundamentals - When, how and where to incorporate: Identifying and engaging good legal help Cost-effectiveness Attorney-client confidentiality Employment and Employee agreements Employment restrictions Post-employment restrictions Trade secrets, invention assignments, copyrights, etc Leaving on good terms
- 33. Forms of Business Entity Corporations(companies) Partnerships Limited Liability companies, others Conducting business in other states, countries – Licenses, Insurance, etc. Selecting and protecting a name
- 34. Structuring Ownership – “Splitting the pie” – Equity, - Consideration, - Vesting – Transfer of shares –Shareholder voting agreements – Proprietary Information and Inventions, Employment and non-compete agreements
- 35. Forming and working with the board –Having an independent board –Representation in the board –Responsibilities of the board Contracts and Leases –Elements of a contract –Oral Agreements –General contract terms –Remedies
- 36. Sale of goods and services Human Resources –Employees Vs Independent Contractors –Employee Privacy –Employment Agreement and Disputes –Employment Disputes –Liability for Employee Acts –Putting it all in practice
- 37. Operational Liabilities and Insurance Creditors Rights and Bankruptcy Venture Capital Intellectual Property and Cyberlaw –Trade Secrets, Copyrights, Patents, Trademarks, Domain Names –Licensing Agreements and other transfers of intellectual property
- 38. Going Global –Tax Planning –Selecting from Representative Office, Branch and Subsidiary –Establishing a Legal Presence –Hiring and Employment Overseas –Distributors, Value-added Resellers, and Sales Agents –Intellectual Property, Funding, Operations
- 39. Buying and selling a business –M&A –IPO –Forms of Business Combinations –Stock Purchase and Sale –Pricing Issue and forms of consideration –Tax treatment –Shareholder Approval, Due Diligence, Board Approval, Fiduciary Duties
- 40. Going Public –IPO process –Restrictions –Prospectus –Misstatements and Liability –Insider trading –Post-IPO disclosures, Communications with Analysts, Regulation