Entrepreneurship and Innovation Management BBA1104 PDF

Entrepreneurship and Innovation Management BBA1104 By Dr. Deeksha Ahuja  The Entrepreneurial perspective: Evolution, Characteristics, Nature, Types, Functions of Entrepreneur, Distinction between an Entrepreneur and a Manager, intrapreneurship, Grow...

Entrepreneurship and Innovation Management BBA1104 By Dr. Deeksha Ahuja  The Entrepreneurial perspective: Evolution, Characteristics, Nature, Types, Functions of Entrepreneur, Distinction between an Entrepreneur and a Manager, intrapreneurship, Growth of Entrepreneurship in India, the entrepreneurial decision process. Types of startups. Types of Entrepreneurs: Clarence Danhof Classification, Arthur H. Cole Classification, Classification based on Ownership, Classification Based on the Scale of the Enterprise. Entrepreneurial Motivation – The Needs Framework, Manifest Needs Theory. Theories of Entrepreneurship: Sociological, Anthropological entrepreneurial, Opportunity based Entrepreneurship theory, Resource based Entrepreneur, Financial Capital/ Liquidity, Social Capital or Social Network Theory. Innovation Management: Concept of Innovation, Levels of Innovation- Incremental Vs Radical Innovation-Inbound and Outbound, Ideation- Open and Other Innovative Ideation Method, Theories of outsourcing. New Product Development: Transaction Syllabus Cost, Resource Based, Resource Dependence, Knowledge Based Theories, Creation of IPR (Intellectual Property Rights), Types of IPR, Patents and Copyrights, Patents in India. References: 1. Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2019). Entrepreneurship (Eleventh Edition). McGraw-Hill Education. 2. Barringer, B. R., & Ireland, D. R. (2019). Entrepreneurship: Successfully Launching New Ventures (Sixth Edition). Pearson. 3. Charantimath, P. M. (2018). Entrepreneurship Development and Small Business Enterprises (3rd ed.). Paperback.  Entrepreneurship is the process of designing and running a new business venture for earning profits. It is a process that brings innovation that is new ideas, products, and services in the market. Entrepreneurship is Entrepreneurship the ability to create, manage and operate a new business and bears all of its risk with a view to earn profits. A person who develops new business and undertakes all risks and challenges associated with it is termed as Entrepreneur. Deeksha Ahuja 3  Entrepreneurship is defined as an act of looking for an investment and production opportunity, then creating and managing a business venture for earning profits. It involves Entrepreneurship arranging for materials, labor, land, capital, bringing new techniques and product and recognizing new sources for enterprises. The risk associated with entrepreneurship is high but at the same, it may also provide high rewards to a person starting a venture. Deeksha Ahuja 4 Definition of Entrepreneurship 1 2 According to Joseph Schumpeter, According to Peter F. Drucker, “Entrepreneurship as defined “Entrepreneurship occurs when essentially consists in doing things resources are redirected to that are not generally gone in the progressive opportunities not used ordinary course of business routine”. to ensure administrative efficiency”. Deeksha Ahuja 5 Evolution of Entrepreneurship in India https://www.cheggindia.com/earn-online/entrepreneurship-in-india/ Deeksha Ahuja 6 Characteristics of Entrepreneurship Economic Object Decision Accepting Activity oriented making challenges Building Dynamic Gap Filling Risk Taking Organization Process Function Skillful Mobilization Innovation Management of Resources Deeksha Ahuja 7  The entrepreneur is defined as someone who has the ability and desire to establish, administer and succeed in a startup venture along with risk entitled to it, to make profits. The best example of entrepreneurship is the starting of a new business venture. The entrepreneurs are often known as a source of new ideas or innovators, and bring new ideas in the market by replacing old with a new invention. It can be classified into small or home business to multinational companies. In economics, the profits that an entrepreneur makes is with a combination of land, natural resources, labour and capital. Entrepreneur In a nutshell, anyone who has the will and determination to start a new company and deals with all the risks that go with it can become an Entrepreneur. Deeksha Ahuja 8 Definition of Entrepreneur As per ILO (International Labour Organization), entrepreneurs are 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. Deeksha Ahuja 9  Determination to succeed Independence Risk taking Ability to control Nature of an Perseverance Entrepreneur Flexibility Analytical Ability of mind Confronting Uncertainty Stress taker Innovative and creative Deeksha Ahuja 10 Manipal University Jaipur Deeksha Ahuja 11 Vision, Mission, Strategies, Goals and Objective Deeksha Ahuja 12  Idea Generation Determination of Objectives Fund Raising Functions of Procurement of Raw Material an Procurement of Machinery Entrepreneur Market Research Determination of Ownership Recruitment of Manpower Project Implementation Deeksha Ahuja 13  Distinction between an Entrepreneur and a Manager  Intrapreneurship refers to a system within a company or organization that allows employees to act like Intrapreneurship entrepreneurs. Intrapreneurs are self- motivated, proactive, and action-oriented individuals who take the initiative to develop innovative products or services. Growth of https://www.cheggindia.com/earn- Entrepreneurship online/entrepreneurship-in-india/ in India  Steps of the entrepreneurship decision process: 1.Identification of problem or opportunity. Entrepreneurial 2.Generate alternative solutions. decision 3.Analyse the alternative solutions. process 4.Selection of the best alternative. 5.Implementation of the alternative. 6.Review the performance.  Scalable Startups Scalable startups, especially in the technology sector, have unique characteristics that enable Types of them to access the global market. These startups have the potential for international startups growth and can receive financial support from investors. Examples of well-known scalable startups include Google, Uber, Facebook and Twitter.  Small Business Startups Individuals typically initiate small business startups without extensive tech backgrounds and are often self-funded. These startups have Types of a steady and independent growth trajectory, startups prioritizing a strong online presence but not necessarily a dedicated app. Examples of small business startups include grocery stores, hairdressers, bakers, and travel agents.  Lifestyle Startups Lifestyle startups are a unique category where individuals turn their hobbies and passions Types of into business opportunities. These startups startups allow people to pursue what they love and make a livelihood out of it. For example, dancers can establish online dance schools to teach people of all ages.  Buyable Startups Buyable startups in the technology and software industry are created to be sold to larger companies in the future. Types of Prominent examples include Amazon startups acquiring Whole Foods and Uber acquiring Postmates. This approach requires strategic planning, innovative ideas, and an understanding of market trends.  Big Business Startups Big business startups are a unique category where established companies adapt and innovate to stay competitive in the dynamic market. Even large corporations like Apple Types of understand the need for evolution to meet startups customer preferences and overcome competition. Apple’s transformation from a computer company to offering a diverse range of products like iPads, Apple Music, Apple TV, iCloud, and Apple Cards showcases this agility.  Social Startups Social startups are aimed at creating a positive impact on society. One example is Ben & Jerry’s Ice Cream, which focuses on prison reform while maintaining profitability. Some social startups operate as non- profits, solely dedicated to bettering the world. Types of Another concept worth exploring is Corporate Social startups Responsibility (CSR), a starting point for companies interested in making a difference. Ecopreneurship is gaining traction, where entrepreneurs focus on developing environment- friendly products and services. These types of startups generate profits and contribute to social and environmental well-being. Types of Entrepreneurs Deeksha Ahuja 25 Types of Entrepreneurs Clarence Danhof Classification Arthur H. Cole Classification Classification based on Ownership Classification Based on the Scale of the Enterprise Clarence Danhof Classification of Entrepreneur Adoptive or Innovative Fabian imitative Entrepreneur Entrepreneur Entrepreneur Drone Entrepreneur Deeksha Ahuja 27 Innovative Entrepreneur Innovative entrepreneur is one who is always focussed on introducing a new project or introducing something new in the venture already started. They constantly observe the environment around them; collect information and analyse them in order to contribute something a new in the venture. Their innovation may take the form of brand new product, upgraded product, discovering untapped market, new method of production, reengineering of existing product, new method of distribution of product, simplification of complex process, adoption of a distinct process and so on. Deeksha Ahuja 28 Imitative Entrepreneur Imitative entrepreneur is one who simply imitates existing skill, knowledge or technology already in place in advanced countries. A simply reengineer or redesign the products developed in advanced countries and produce a version suited to their local conditions. For example, many electronic products invented in advanced countries are simply reengineered in developing countries. Similarly expensive medicines developed in advanced countries are simply reengineered by changing the composition of elements or changing the process of production. Deeksha Ahuja 29 Fabian Entrepreneur These entrepreneurs are said to be conservatives and sceptical about plasticising any change in their organisation. They are of risk-averse type. They do not simply change to the changes happening in the environment. But they adapt themselves to the changes only as a last resort when they fear that non adaptability to changes will inevitably lead to loss or collapse of the enterprise. Their dealings are governed by customs, religion, tradition and past practices handed down to them by their ancestors. They would like to follow in the footsteps of predecessors. Deeksha Ahuja 30 Drone Entrepreneur Drone entrepreneurs are those who are totally opposed to changes unfolding in the environment. They used to operate in the niche market. They are similar to fabian entrepreneur in doggedly pursuing their conventional practices. The main difference between fabian entrepreneur and drone entrepreneur lies in the fact that while fabian entrepreneur adapts to changes eventually as a last resort, drone entrepreneur never adapts himself or herself to change. Deeksha Ahuja 31 Arthur H. Cole Classification Empirical Rational Cognitive  Empirical He is entrepreneur hardly introduces anything revolutionary and follows the principle of rule of thumb. Rational Arthur H. The rational entrepreneur is well informed about the general economic conditions and introduces Cole changes, which look more revolutionary. Classification Cognitive Cognitive entrepreneur is well informed, draws upon the advice and services of experts and introduces changes that reflect complete break from the existing scheme of enterprise. Classification based on Ownership Private State Joint Entrepreneur Entrepreneur Entrepreneur  When an entrepreneur starts something personal of his or her own, such as setting up Private an enterprise, he/she is called a private entrepreneur. A private entrepreneur is the Entrepreneur only person who plays the sole proprietor role for a business venture and bears the risk associated with it. Deeksha Ahuja 35  When a state or government does a business or industrial undertaking, it is referred to as State a 'state entrepreneur'. In this case, the Entrepreneur government is the sole owner of the enterprise and will bear all the profits and losses involved with it. Deeksha Ahuja 36  When a business or industrial undertaking is established and operated jointly by the private entrepreneur and the government, it Joint is called joint entrepreneurship. The parties involved are called joint entrepreneurs. In Entrepreneur this case, risk and profits are shared by both parties. However, the sharing percentages generally depend on the type of business and the agreement between the two parties. Deeksha Ahuja 37 Classification Based on the Scale of the Enterprise Small scale Large scale  Small scale These entrepreneurs do not posses the necessary talents and resources to initiate large-scale production and to introduce Classification revolutionary technological changes. Based on the Large scale Scale of the They possess the necessary financial and other resources to initiate and introduce Enterprise new technological changes. They possess talent and research and development facilities.