Entrepreneurship 4 Marks Question

Dynamic entrepreneurs are guided by the value of outstanding performance. It is the quest for outstanding performance on the part of Narayana Murthy that saw the emergence and speedy growth of Infosys.
Steve Jobs, case study always believed in outstanding performance, for example, when Apple phone was launched, he took great care to make the package eco-friendly and light weight with 3D (Three dimensional) images on it. Such was his dedication for extraordinary performance.
Challenges seem to stimulate and motivate entrepreneurs. As they have strong motivation to succeed, they value performance of a high order.
Thus the entrepreneur, due to his quest for excellence, is an "overcomer” who can resolve problems under pressure. They are persistent and hardworking when things go wrong.

1. Corporate Governance: This essentially involves balancing the interests of many stakeholders in a company such as shareholders, management, customers, suppliers, government, etc.
2. Insider Trading: It is defined by the Black's Law Dictionary as, “The use of material and non-public information in trading the shares of a company by a corporate insider or any other person who owes a fiduciary duty to the company".
3. Corporate Social Responsibility: It means that a business should be socially responsible by being sensitive to the needs of a society. e.g. opening of charitable schools, hospitals, etc by business houses.
4. Fiduciary Responsibility: It exists with individuals or businesses who handle money or property for others. The term 'fiduciary refers to a relationship in which one person has a responsibility of care for the assets or rights of another person.

Through this Google Intrapreneurship program, all the employees are empowered and encouraged to spend 20% of their time on projects that interest them and that they think will benefit Google and their customers. The Google “Innovation Time Off” Intrapreneurship program has a formal process for their selection of entrepreneurial projects, for the formal evaluation process and the monitoring of each Google approved entrepreneurial project. For a Google employee, to participate in the program, he/ she needs to submit a project proposal with a timeline. It is critical to note that several of Google's newest products and services such as Gmail, Google news, Orkut and AdSense were all originated through this program.

Business entrepreneurs develop new goods and services by setting up an enterprise. Business entrepreneurs have two classifications, which are as follows:

1. Trading Entrepreneurs: They undertake trading activities either in domestic markets or in foreign markets. For this, they need to identify the potential of the market by looking at the market demand and hence, they put many ideas to promote their business. e.g. Big Bazaar.
2. Industrial Entrepreneurs: They generally manufacture products and serve in the market which has a potential demand in the market. They are the one, who has the ability to transform economic resources and technology into a profitable avenue. e.g. Tata Industries.

Based on motivational factors, entrepreneurs can be classified into three types, which are as follows:

1. Spontaneous Entrepreneurs or Pure Entrepreneurs: These entrepreneurs are motivated by their desire for self-fulfilment and to achieve their excellence in job performance. Their strength lies in their creative abilities. They undertake work for self-satisfaction, hence, they are also known as pure entrepreneurs.
2. Induced Entrepreneurs: They emerge as entrepreneurs because of various supports from the government in the form of finance, incentives, concessions and other facilities. Many times, prospective entrepreneurs are induced or even forced by their special circumstances, such as loss of job or inability to find a suitable job opportunity to start a business venture. Such entrepreneurs are known as induced entrepreneurs.
3. Motivated Entrepreneurs: These entrepreneurs are motivated to set-up an enterprise in order to use their technical and professional expertise and skills. They are very ambitious and are normally not satisfied by the slow progress of their venture. They enter the market because of the possibility of making and marketing of some new and innovative products or services for use by their ultimate consumers and reaping the benefits thereof.

Features of attitude:

1. Attitude affects behaviour: People have a natural tendency to maintain consistency between attitude and behaviour. Attitudes can lead to intended behaviour if there is no external intervention.
2. It is invisible: It constitutes a psychological phenomenon which cannot be directly observed. However, we may observe an attitude indirectly through observing its consequences. For example, if a person is highly productive, we may infer that he has a positive attitude towards his/ her work.
3. Attitudes are acquired: Attitudes are gradually learnt over a period of time. The process of learning attitudes starts right from childhood and continues throughout the life of a person. However, in the beginning, the family members have a greater impact on the attitude of a child.
4. Attitudes are pervasive: They are formed in the process of socialisation and may relate to anything in the world. For instance a person may have positive and negative attitudes towards religion, politics, politicians or countries.

1. First Generation Entrepreneurs: These entrepreneurs start their own business with their innovative skills and expertise. They usually combine different technologies to produce some goods or services.

Example: Infosys started by Narayan Murthy.

2. Inherited Entrepreneurs/ Second Generation Entrepreneurs: These entrepreneurs do not start an enterprise on their own rather they join their family business which has already been started by their father, i.e. they inherited an enterprise from their family.

This form of business is very popular in India, known as Joint Hindu Family Business.
Example: Reliance Industries which had been started by Dhiru Bhai Ambani now had been passed on to Mukesh Ambani and Anil Ambani.

3. Third Generation Entrepreneurs: These are those types of entrepreneurs wherein their grandparents have been original entrepreneurs (first generation), which has been passed onto their fathers (second generation) and then to themselves.

Example: Tata Industries.

1. Quality Performance: Since, entrepreneurs value outstanding performance, one of the competencies necessary is the sensitivity to and concern for the standards and quality of work'.

One should develop the skill of comparing the quality of the products/ services with certain standards, which he/ she himself/ herself evolves or are set by others.
Example: Steve Jobs, the brain behind Apple and I-pod, is known to value quality in all the products introduced by the company.

2. Systematic Planning: Every entrepreneur has limited resources in terms of time, finance and manpower. They invest their life's savings and total energy in creating entrepreneurial ventures and therefore, before putting the whole enterprise into operation, he/ she should develop a detailed blueprint through systematic planning. So, an entrepreneur should have the competency to plan.
3. Leadership: An entrepreneur should also have leadership qualities, so that he/ she is able to guide and motivate his/ her entire team. Whenever a business faces a problem, it is the willpower, effective business acumen and communication skills of a leader which oversees the success of the corporation.
4. Persistence: Creating a demand in the market for the product/ service of the business is one of the main requirements for the success of the business venture and this calls for intense perseverance on the part of the entrepreneur. Road-blocks in his endeavour to success should not discourage the entrepreneur.

Example: when Mahima Mehra brought out her product- Haathi Chaap, she had experimented on various other materials unsuccessfully before finally using elephant dung to manufacture handmade paper.
Value exhibited by the entrepreneur who believes in quality performance Providing quality products, so that consumer sovereignity is ensured.

The entrepreneurs may be classified into the following categories on the basis of application of new technology in various sectors of the economy.

• Technical Entrepreneur: The entrepreneurs who are technical by nature in the sense of having the capability of developing new and improved quality of goods and services out of their own knowledge, skill and specialisation are called a technical entrepreneur. They are essentially compared to craftsmen who concentrate more on production than marketing.
• Non-technical Entrepreneur: Non-technical entrepreneurs are those who are mainly concerned with developing alternative marketing and distribution strategies to promote their business. They are not concerned with the technical aspects of the product and services they are dealing with.

A brief discussion of core values is given below:

1. Innovation and Creativity: These are the most important core values and found among most of the entrepreneurs. Creativity is the ability to see new ways of doing things and innovativeness is the ability to make it work in practice.

Entrepreneurs are guided by these values when they come out with creative ideas, new products, services, processes, etc to solve specific problems of the society. e.g. earlier, hair oils and shampoos were available only in tins and bottles.
Introducing them in small packs has become convenient for customers to carry and use them. This has helped in raising the revenues of the businesses.

2. Independence or Ownership: (Self-reliance): Entrepreneurs drive great satisfaction in their sense of 'independence' or 'ownership’. They all have a very strong and positive ego drive which enables them to define their mission and achieve it through commitment, sense of complete identification, sincerity and hard work.

e.g. in his quest for independence, Dhirubhai Ambani gave up his job in Yemen and returned back to India to start his own business.

3. Respect for Work: The entrepreneurs should have great respect for their work. Successful entrepreneurs believe that they can achieve anything through hard work. The biographies of all successful entrepreneurs reveal that they have achieved the pinnacle of success through hard work. This value provides goal direction, which encourages them to pursue a path and career in which the rewards and incentives are directly linked to the degree and quality of efforts made.
4. Quest for Outstanding Performance: Dynamic entrepreneurs are guided by the value of outstanding performance. Challenges seem to stimulate and motivate them. As they have strong motivation to succeed, they value performance of a high order. Thus, the entrepreneur, due to his/ her quest for excellence, is an ‘over comer' who can resolve problems under pressure. They are persistent and hardworking when things go wrong. e.g. Steve Jobs, always believed in outstanding performance. When Apple phone was launched, he took great care to make the package eco-friendly and light-weight with 3D images on it.

These are the most important values found among most of the entrepreneurs. They are guided by these values when they come out with creative ideas, new products, services, processes etc., to solve specific problems of the society. Creativity is the ability to see new ways of doing things and innovativeness is the ability to make it work in practice. For example, earlier, hair oil was available only in tins and introducing it in plastic small packs has become convenient for customers to carry and use. Innovativeness can be seen through actions such as:

1. Sachet Market–small sachet of shampoo, oil etc.
2. Experimenting with new ideas for example introduction of debit and credit cards in the banking sector.
3. Facing uncertainty in order to try out new ideas.
4. Not giving up or becoming upset when errors occur.

Intrapreneurship: Examples from the Corporate World,
Through the Google Intrapreneurship Program, all the employees are empowered and encouraged to spend 20% of their time on projects that interest them and that they think will benefit Google and their customers.
The Google 'Innovation Time Off Intrapreneurship Program has a formal process for the selection of entrepreneurial projects, for the formal evaluation process and the monitoring of each Google approved entrepreneurial project.
For a Google employee, to participate in the program, he/ she needs to submit a project proposal with a timeline.
It is critical to note that several of Google's newest products and services such as G-mail, Google news, Orkut and Adsense have all originated through this program.
In India also, Marico, manufacturers of Parachute Hair Oil, Saffola, Kaya Skin Clinic Industries have institutionalised innovation awards, where they receive 30-40 entries every year for innovations across the spectrum, including factories, brand, sales and human resource, virtually covering the whole organisation. The company believes that there will be failures and unless one is ready to fail, one can never succeed.
Kinetic Engineering Limited is the flagship company of Firodia Group of companies, one of the pioneering groups in automobiles in India, founded in 1972 by Mr HK Firodia.
The company encourages employees to use their time efficiently for innovation in its upcoming products. The Kinetic Zing Model of bicycle was the idea of an employee working in the corporation.

Persistence:

1. It is the ability of an entrepreneur to continue with the course of action despite obstacles and difficulties.
2. He must persist with behavioural skills even when the failure is visible as a quality successful entrepreneurs are determined and persistent in their march towards excellence.
3. He always create a need for goods and services in the market for enterprise. For example: In India when mixers was introduced, numbers of users/ mcustomers were less but today, we find it to be an essential appliance of kitchen accessories.
4. When Mahima Mehra brought out her product–Haathi Chaap, she had experimented on various other material before using elephant dung to manufacture handmade paper.