Welcome to Orientation Session for Startup Cell Coordinators Jointly Organized by NPIU and AICTE TEQIP – III, Zone – Uttar Pradesh 26 th & 27 th Dec 2017 AKTU, Lucknow
Objectives To sensitize and orient Start-up Cell Coordinators on Entrepreneurial Thinking and Start-up Approaches and Practices To Build the Vision to Act Entrepreneurially in Implementing a Result Oriented Micro Action Plan for the Start-up Cell and To Play an Active Role on Policy Advocacy and Policy Making Process.
Session Outline 1. Importance of Entrepreneurship and Innovation in Economic Development 2. Start-up Landscape at Global and National Level 3. Start-up Ecosystem Components and Development Models 4. Policy and Programs Provisions and Mandates to Build Start-up Ecosystem in Technical Institutions 5. Policy Logics and Vision Building for Start-up Cell: Problem Tree & Objective Tree and Key Performance Indicators 6. Development of Result Based M&E and Micro Action Plan for Start- up Cell
Session Focus 1. Role of government in promoting entrepreneurship? 2. Rationale for entrepreneurship policy? 3. Main instruments of entrepreneurship policy? 4. What is the impact of entrepreneurship policy and how should it be assessed?
Session Focus 1. Unleashing Entrepreneurship through Private Sector Development 2. Constraints on the private sector in developing countries 3. Unleashing the potential of the private sector and Engaging the private sector in development
Benefits for You • Able to understand various key entrepreneurial concepts, approaches and practices at National and Global Level. • Able to know Enterprising Ability and Potential of Start-up Cell Coordinators • Get oriented about various components in building Start-up Ecosystem development and Frameworks in Formulating Entrepreneurship Policy at National and Institutional Level. • Get to know about Start-up Policy Programs and Start-up Policy Mandates for Technical Institutions • Able to Develop Vision Plan and a Result Oriented Micro Action Plan for Start-up Cell.
Introduction and Expectations • Who are you? • Your core skills? • Your experience? • One key expectation of workshop: – “A question I would like answered is…” – “I would like to know more about…” – “My major interest is in…”
Ground Rules of the Pool…
Session Flow Management Housekeeping: • Schedule and Breaks • Smoking Exit • Exits • Restrooms • Other?
Session-I: Entrepreneurship & Innovation • Concepts & Theories • Typology • Characteristics • Exercise/Activity
Entrepreneurship – Theories & Concepts • The word entrepreneur itself derives from the French verb entreprendre , meaning “ to undertake ” . • In 1723 , Irish – French economist Richard Contillon coined the term Entrepreneur ( self-employment and Risk takers ) • in 1890 , Alfred Marshall & Frank Knight have added Leadership and recognized the need of entrepreneurship through organization, as a fourth factor of production . Goods & Services = f ( Land, labour, Capital, Entrepreneur)
Mainstreaming Entrepreneurship • In 1934 , Joseph Schumpeter’s modern definition of an entrepreneur; added Innovation ; less on Risk Takers “Entrepreneurs as innovators who implement entrepreneurial change within markets by identifying market opportunities and using innovative approaches to exploit them” • 5 manifestations of Entrepreneurial Changes – Introduction of a new (or improved) Good & Services – Introduction of a new method of production – Opening of a new market – Exploitation of a new source of supply – Re-engineering /organization of business management processes .
Mainstreaming Entrepreneurship • In 1985 , Peter Drucker refined the definition of entrepreneurship “Not merely the creation of a new organization, also include any individual who starts a new business venture is an entrepreneur; even those that fail to make a profit ” • Entrepreneurs Vs Businessmen
Activity - I Specify components and functions associated with above figure on Economic Development and Factors of Production
Entrepreneurship - Terminology • Entrepreneurs are those persons (business owners) who seek to generate value , through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets. • Entrepreneurial activity is the enterprising human action in pursuit of the generation of value , through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets. • Entrepreneurship is the phenomenon associated with entrepreneurial activity.
Typology
Innovation and Risk Entrepreneur Risk-taking Gambler Risk-averse Bureaucrat Dreamer Not Innovative Innovative
Who is the Entrepreneur ? High Entrepreneur Inventor ( Marketing Innovation) Creativity and Innovation Manager Promoter Administrator Low High General Management Skills, Know-How, Networks Source: J.Timmons, New Venture Creation
Types of Entrepreneurship Self-employed Employee Schumpeterian Intrapreneurs Entrepreneurial entrepreneurs Managerial Executive Managerial business managers owners Source: Wennekers and Thurik (1999)
Types of Entrepreneurship Formal Informal Registered firm Unregistered firm 1. Formal vs. informal that is engaged that is engaged in in legal activities legal activities 2. Legal vs. illegal Legal 3. Necessity vs. opportunity Registered firm Unregistered firm that is engaged in that is engaged in 4. Productive vs. unproductive illegal activities illegal activities Illegal 5. Innovative vs. replicative
Entrepreneurship as defined by World Bank Entrepreneurial Activity The activities of an individual or a group of individuals aimed at initiating economic activities in the formal sector under a legal form of business . Unit: Business Any economic unit of the formal sector incorporated as a legal entity and registered in a public registry , which is capable, in its own right, of incurring liabilities and of engaging in economic activities and transactions with other entities.
Productive Vs Unproductive Entrepreneurship - productive entrepreneurship refers to Schumpeter’s five types of innovation – introducing new products, new processes, new markets, new supplies and new organizations (William Baumol). - Unproductive entrepreneurship refers to rent seeking activity such as lobbying government for favors, taking legal actions to harm competitors or conducting military activity - Countries with cultures and institutions that reward unproductive entrepreneurship will channel more of their entrepreneurial efforts to rent- seeking activities, and consequently the economies will perform poorly - How the entrepreneur acts at a given time and place depends heavily on the rules of the game or the reward structure in the economy - Thus, the allocation of entrepreneurship between productive and unproductive activities can have a profound effect on the innovativeness and subsequent performance of the economy
Key Entrepreneurial Characteristics Motivation: The enterprising person is highly motivated, energetic, and • has a capacity for hard work. Creative tendency: The enterprising person is restless with ideas, has an • imaginative approach to solving problems, and tends to see life in a different way to others. Calculated risk-taking: The enterprising person is opportunistic and • seeks information and expertise to evaluate if it is worth pursuing the opportunity which will usually involve some risk. Locus of control: The enterprising person has an internal rather than • external locus of control which means that they believe they have control over their own destiny and make their own 'luck'. Sally Caird and Mr Cliff Johnson, 1987
Nine Attributes of Successful Entrepreneurs 1. Opportunity obsession 2. Creativity 3. Commitment and determination 4. Motivation to excel 5. Self-reliance 6. Adaptability 7. Tolerance of risk, ambiguity, and uncertainty 8. Courage 9. Leadership Source: Timmons and Spinelli (2006)
Activity -II Explain whether each of the following is type of Production Functions: Labor, Capital, Natural Resource or Entrepreneur. • An unemployed factory worker • A college professor • Shop Floor Manager • The library building on your campus • Design Lab Manager • The Kajiranga National Park • An untapped deposit of natural gas • The Parliament of India • The local power plant • Chief Executive Officer • Chief Product Designer • Shareholder of an Public Enterprise • In-charge of Incubation/ Start-up Cell
Activity-III General measure of Enterprising Tendency (GET) Test The General measure of Enterprising Tendency (GET) test was first • developed in 1987-1988 by Sally Caird and Mr Cliff Johnson at Durham University Business School. The basic premise of the test is that the enterprising person shares • entrepreneurial characteristics, and that these characteristics may be nurtured via educational and training, and assessed. The approach to developing the measure of enterprising tendency involved • identifying key characteristics of entrepreneurial people which are associated with entrepreneurial behaviour, and the entrepreneurial act itself.
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