Entrepreneurship setting the stage by J.M. Pant

A presentation by J.M.Pant

Module 1: Entrepreneurship-Setting The stage

What Motivates Entrepreneurs?

The Making Of An Entrepreneur- Paradigm Shift

Paradigm Busters

J.M.PantManagement Consultant, Trainer and Visiting Professor

(0)9811030273, [email protected]

Program on Educational Entrepreneurship


What Motivates You?


Brief Overview of Motivation

The process of motivation

Inner state ofDisequilibria-Gap in need,

Desire orexpectation

Motivation Desired behaviour

GoalAccomplished

Hygiene factors and motivators-Money

Awards, recognition, moreResponsibility, Power,

Achievement, Affiliation


Self Development, Self motivation(Passion, Interest)

Energisingothers

Energy Execution

Entrepreneurial Leader


Cutting edge



Self fulfilment needs

Esteem Needs

Social Needs

Safety Needs

Physiological Needs

Motivational Needs (Maslow Hierarchy)



• Achievement Motivation

• Desire for excellence, sets high standards, prefers challenge.

• Likes to take moderate risks.

• Tends to persist in the face of adversity. Uses failures as a learning experience.

• Self driven, takes initiative

• Enjoys autonomy and flexibility

• Hunger for more.

• Not satisfied, once goals are achieved, sets higher goals.

• Wants feedback and learns from feedback


Power Motivation

Enjoys being in charge

Strives to have influence over others

Prefers to be placed in competitive and control oriented situations

Tends to be more concerned with prestige and gaining influence over others than with effective performance



Affiliation Motivation

Strives for friendship

Prefers cooperative

situations rather than

competitive ones

Desires relationships

with a high degree of

mutual understanding


Kumbh mela

Kanwarias

journey


What Motivates An Entrepreneur?

Goals

Goals motivate people to

achieve them.

A certain amount of stretch

and stress is motivating

Absence of work, confused

goals and ‘no targets to

achieve’ is demotivating to

most people.



Autonomy

Making Money, Financial Independence

Opportunity to think innovatively, desire to create something new, most times from scratch

Achievement, including achievement of personal objectives

Action, Doing something

Not wanting to work for anyone else

Desire to be one’s own boss

Job satisfaction

More opportunities

Flexibility in work timings, choice of work



Thrill – excitement of entrepreneurship

Intellectual and physical challenge

Contribution to society, nation, world

Outcome is not known and that adds to excitement

Entrepreneurship motivates just like a person is motivated to play sports or a game:

Physical activity

Creativity

Social grouping

Tension, unexpected results



Locus of control

An attribute indicating the sense of control a person has over life

Concern of entrepreneur

Whether he or she will have the drive and energy to overcome inertia in forming something new

Energy to mange the new enterprise

Are you internally or externally driven?

Most successful entrepreneurs are internally driven



Childhood family environment First born child receives special attention and develops more self

confidence

Entrepreneurs tend to have self employed or entrepreneurial parents

Entrepreneurs Family environment- supportive and encouraging independence, achievement and responsibility

Education Education is critical but not a formal, ‘degree’ focused education

Entrepreneurs like to learn, explore, research, study what is interests them and is useful for their enterprise.

Personal Values Superior product quality

Quality service to customers

Flexibility

Adapt to change

High caliber leadership

Ethics



Age Age is not a factor for starting entrepreneurship

What is important is energy, passion and drive

Most entrepreneurs initiate entrepreneurial careers between 22 to 45.

Every five years or so, many people get an urge to become an entrepreneur

Experience Experience in similar area and relevant to business like

sales, finance, technology is beneficial

Years not important, Quality of experience is

Entrepreneurial experience- the best venture is generally not the first one



Role Models

Individuals influencing entrepreneur’s career choice and style

Role models could be

Successful entrepreneurs in India and globally

Successful entrepreneurs from one’s community, region, school, college/university

Parents, in-laws

Brothers or sisters

Other relatives



In your own business, you are all alone. It is lonely at the top.

Need to establish support groups to keep the entrepreneur going Professional support network

Individuals who help the entrepreneurs in business activities

Mentors- coach, sounding board-for sharing problems and successes,

Business associates- suppliers, consultants, professionals, customers, self employed individuals

Trade associations

Personal affiliations-clubs, alumni, sporting events, shared hobbies, social networking sites

Moral support network

Having an understanding cheering crowd gives encouragement to entrepreneur to persist through difficulties and problems

Individuals who give psychological support to entrepreneurs

Family and friends-a cheering crowd

Spouse, friends, children, parents, uncles


Negative Motivators

Positive and Negative Motivators

Positive

E

x

t

r

i

n

s

i

c

Finish your

homework and Ma

will give you an

Icecream

I enjoy learning this subject.

The homework given by

class teacher is interesting.

It challenges me. I want to

do and will do.

I

n

t

r

i

n

s

i

c

Finish your

homework or teacher

will punish you

I don’t want to do this boring

homework. It will not help in

my learning process. I find

no reason to do it.

Negative


Negative Motivators

Bad experiences Dissatisfaction with job, boredom and frustration, no

growth/promotion

Loss of job

Unable to get a job

Conflict of ethics and values

Lack of education Not having certified ‘degree’ education

Circumstances forced one to give up on education

Provocations Humiliation by friends, relatives, spouse/girl friend

Being told you are not fit to do anything


Paradigm Shift-Process of Making of

an Entrepreneur

1. Identity Search

Identity crisis

Experiences dissatisfaction with present identity

Discomfort in existing situation

Could be lack of challenge, frustration and boredom,

less money, fight with boss, loss of job, VRS and so

forth

Exploration-look for ways of reducing the dissatisfaction

Transitional stress-experiences conflicts and

apprehensions about the new identity



an Entrepreneur

1. Identity Search

Search alternatives

Searches entrepreneurial alternatives

Uses professional and moral support network

Deliberation- weighs pros and cons of each

alternative

Choice- makes a tentative choice from amongst

the alternatives



an Entrepreneur

2. Identity Formation

Pre-enterprise preparation- makes preparation: Acquiring relevant knowledge, skills etc

Gains relevant experience

Meets experts

Enterprise building-takes steps towards establishment of an enterprise

New Identity- acquires new identity of an entrepreneur



an Entrepreneur

3. Identity Establishment

Enterprise management- begin to manage the

enterprise

Role stress- experiences entrepreneur conflict and

stress

Identity integration- identifies with other entrepreneurs

Linkage building- establishes linkages with other

entrepreneurs and support systems for effective

functioning.


Paradigm Busters

Michael Dell, Dell Inc.

Changed the rules of the PC business by

eliminating intermediaries and pioneering a

low inventory made-to-order model.

Herb Kelleher, South West Airlines

Introduced the concept of low cost flying and

served it up with a dash of fun, and warm on-

board service


Paradigm Busters

Howard Schultz, Starbucks

Through a combination of clever marketing

and vision, turned the coffee bar into an

upscale must-have experience

Jeff Bezos, Amazon.com

Most successful online retailers in the face of

skepticism about selling on the internet.


Paradigm Busters

Sam Walton, Wal Mart

His relentless focus on low cost leading to ‘every day low prices’ strategy that’s retailing benchmark today.

Ajay Bijli, PVR Mutiplex

Introduced multiplexes when single screen cinema halls were the convention.

Better ambience, advanced sound system, latest English and Hindi movies, on-line ticketing, comfortable viewing.

Even with twice the existing price.


Paradigm Busters

C.K.Ranganathan, CavinKare

Stormed the FMCG sector by constant innovation in packaging, distribution and pricing.

Launch of Spinz talc in 20g, 50, 100g, 400g in 1997 just after 1996 world cup (spinz from ‘spin’), Spinz deodarants, Nyle creams, Natural Fairever, Meera herbal shampoo in 8ml, 25 ml and 100 ml, and so forth.

Satchets and small packings made it convenient for frequent travellers.


Paradigm Busters

Kishore Biyani, Future group -

Pantaloon and Big Bazar Started as a trouser manufacturing unit, Pantaloon has

become a big retail company.

Changed the face of retail business in India.From

fashion to food to furniture to real estate to stationery to

finance – everything under one umbrella.

K V Kamath, CEO ICICI Change the rules of banking making it like FMCG: ATMs,

personal, consumer and auto loans for mass.

Expanding the model to rural areas.


Paradigm Busters

Over time we take paradigm shift for granted.

We forget how business was done before.

A good start is never enough- innovation has

to be continuous.

For reigning incumbents will hit back plus

there are copycats.


Paradigm Busters

Robert Frost ‘ I took the road less travelled by, and that has made all the difference’.

Paradigm shifters are more risk friendly.

They have a big dream.

Failures don’t deter them- it makes them hungrier. For example, Biyani’s initial set of failures (flopped films, managing Hanse Cronje, initial failures in Pantaloon and Big Bazar)

Air Deccan’s inaugural flight-one engine caught fire

No journey is complete without pitfalls.


Paradigm Busters

<Examples>

Reliance Industries – started in 1966 as a small textile manufacturer. Now it ranks among one of the world’s largest oil and gas companies.

Suzlon energy- Tulsi Tanti started a textile mill in Gujarat……ran into problems because of erratic power supplies and rising energy costs.

Set up two windmills in 1990 with turbines imported from a German company. Suzlon is now one of the world’s fastest growing wind energy equipment makers.

What would have happened if both had continued with textiles is anyone’s guess.


Paradigm Busters

<Examples>

Business stuck in sunset industries must radically overhaul their business.

Wipro- Azim Premji’s initiative transformed a family run vegetable oil firm into a major IT services and products supplier.

Max India- stared as pharma company, acquired telecom licence, sold telecom business, entered into insurance and healthcare segment.


Making the shift

Paradigm shift

Company Original Business Current Business

Reliance Textiles Oil, petrochemicals, real

estate, infrastructure-

power, communication

Suzlon Energy Textiles Wind energy generation

Wipro Vegetable Oil IT

Max India Drug manufacturer Insurance and health care

Unitech Construction Real Estate development

GMR Infrastructure Textiles Infrastructure

ICICI Development

financing

Banking, insurance, stock

trading, financial services


Entrepreneurship setting the stage by J.M. Pant

Documents

moral support network

paradigm busters

role models

successful entrepreneurs

paradigm shift

identity search

negative motivators

experience