MBA 4034-Innovation and Entrepreneurship Management Gauhati university syllabus NM

MBA 4034: INNOVATION AND
ENTREPRENEURSHIP MANAGEMENT
Global competitive index- 40/137
Index of Economic Freedom- 128/178
Ease of Doing Business Index- 63/190
Global entrepreneurship Index – 68/137
Global entrepreneurship Monitor – 2/ BRICS + 7
Nilanjan Mazumdar @ Gauhati University

Defining an entrepreneur
MBA 4034: INNOVATION AND ENTREPRENEURSHIP MANAGEMENT
• An entrepreneur is an individual who organizes and operates a business or
businesses, taking on financial risk to do so.
• Entrepreneurs and economic development
– In the West from 1970-2000, characterized by reliance on big business and mass production.
– In the emerging countries, most notably the BRICs – Brazil, Russia, India, China – to sustain access to
resources and low-carbon industrialization.
– In the least developed countries, where aid dependency is high, investors have been shifting the
emphasis in development cooperation towards private sector development. (Some African Nations)
Promoting youth entrepreneurship here has become a vital policy objective of many development
organizations and investors.

• Please note that key word in Entrepreneurship is RISK. Any
venture where risk is mitigated due to any reason does not qualify
to be called entrepreneurship.
• Entrepreneurs are people who create new business activity in the
economy and bear considerable business risk in the process. This
is often done by starting new companies. But they can also
create new business activity by introducing a new product or
creating a new market.
Nilanjan Mazumdar @ Gauhati Universty
Entrepreneur Entrepreneurship Enterprise
Person Process or Philosophy Object

How do you define an entrepreneur in the 21st Century?
• An entrepreneur of 21st century is a customer focused innovator.
• Uses E– knowledge. Advantage is speed.
• Is a global thinker even though he may not necessarily be a global
player.
• In the 21st century Entrepreneurship is the process of creating
something different with value by devoting the necessary time
and effort, assuming the accompanying financial, psychic, social
risks and receiving the resulting rewards of monetary and personal
satisfaction and independence.

• The entrepreneur who is a business leader
looks for ideas and puts them into effect in
fostering economic growth and development.
• Entrepreneurship is one of the most important
input in the economic development of a
country. The entrepreneur acts as a trigger
head to give spark to economic activities by
his entrepreneurial decisions.
Role of entrepreneurship in
economic development

Role of entrepreneurship in
economic development
• Promotes Capital Formation
• Creates Large-Scale Employment Opportunities
• Promotes Balanced Regional Development
• Reduces Concentration of Economic Power
• Wealth Creation and Distribution
• Increasing Gross National Product and Per
Capita Income

Entrepreneurial Perspective(Unit 3)
• Entrepreneurial Decision Process
A person decides to do something either because
something in that activity lures him or he takes it
as option in lieu of something else. Factors that
influence to take up entrepreneurship can be;
• Pull Factors
• Push Factors

Factors Influencing the decision making process
Pull Factors Push Factors
Perception of Advantages Job Dissatisfaction
Spotting an Opportunity Relocation
Government Policies Joblessness
Motivation Lay off
Influenced by Culture Retirement & Boredom

Evolution of Entrepreneurship theories
• 1600 – French verb – Entreprendre – to undertake.
• 1700 – Person bearing Risk or Profit in a fixed price contract (Risk)
• 1725 – Richard Cantillon – Person bearing risks is different from Capital Supplier (Risk)
• 1803 – J. B. Say – Shifts economic resources out from an area of lower to higher productivity &
greater yields (Value Addition)
• 1934 – Joseph Schumpeter – Innovator and develops untried technology (Productivity &
Innovation)
• 1961 – David McClelland – Highly motivated, energetic, moderate risk taker (Need for
achievement)
• 1964 – Peter Drucker – Searches for change, responds to it & exploits as opportunity (Opportunity
Focused)
• 1980 – Karl Vesper – Behaviour Perceptions– Economists, Psychologists, Businessmen, Politicians
(Environment)
• 1983 – Gifford Pinchot – Intrapreneur
• 1985 – Robert Hisrich – Creating something different with value, devoting time & effort, assuming
risks (FPS); results– rewards and satisfaction (Leadership & Vision)

Innovation Theory
• Joseph Alois Schumpeter is regarded as one of the greatest economists of the first half
of the twentieth century.
• One of the most common themes in Schumpeter’s writings was the role of innovation
(“new combinations”) and entrepreneurship as per The Theory of Economic
Development (Schumpeter . J. A, 1912).
• The concepts of innovation and entrepreneurship are probably Schumpeter’s most
distinctive contributions to economics (Hanush et.al,2007).
• The GEM team has been using two different ways to assess innovation:
(1) innovativeness of the product or service and (2) novelty of the technology used.

Concept
As per JA Schumpeter;
An Entrepreneur
• Identifies potential profitable opportunities
• Exploits them
• Innovates, collects funds,
• Collects resources, Organizes talents,
• Provides leadership & Sets up an organization.
• Raises consumption
• Aspires for dynasty
Innovation may be in the form of :
•Introduction of new product
•Introduction of new method of
production
•Opening up of new market
•Ways to procure raw materials

Assumptions & Criticism
a. Capital Availability
b. Developed banking system
c. Developed technology
d. Private initiative & broad based
entrepreneurial process
a. Purely institutional
b. Does not accounts the knowledge
based economies
c. Importance of intangible resources
d. Full employment of resources
e. Influences of expansion and
recession

Inventor Vs Innovator
Inventor
•Invents new methods and new
services.
•He is largely concerned with the
technical aspects of the matter he
deals with
•He keeps the commercial prospects
of his innovation as the last
preference
Innovator
•Combines new methods/services and
applies innovation to produce better
products/services.
•He is largely concerned with the
economic, social and marketing
dimensions of the subject matter.
•He examines the commercial and
economic viability of his product in the
market.

• KM is the creation, transfer and exchange of
organizational knowledge to achieve a
competitive advantage. ~ John Girard
• KM is the efficient handling of information and
resources within a commercial organization.
~Oxford Dictionary
Knowledge management

Major Components of
Knowledge management
1) PEOPLE- Strategic Unit/Senior leaders/Cross
Functional Stake holders
2) PROCESS- Create, Identify, collect review, Share,
access & Use.
3) TECHNOLOGY
4) CONTENT- Knitting of the content
5) STRATEGY- Kenichi Ohmae said it best, “Rowing harder
doesn't help if the boat is headed in the wrong direction.”

Emergence of KM
• Initially means and ends were met locally, Post 90’s era LPG
led to massive 21st Century Globalization.
• Outsourcing - Boundless organizations
• Intellectual capital- Beyond just Land, Labor & Capital. It was
realized that knowledge could leverage to create product and
services.
• Consequently Knowledge was recognized as a commodity-
Just like Public and Private commodity a new layer of
commodity was created of Knowledge as Positional Good.

Popular terms related to KM
• Knowledge Era
• Knowledge industry- Data mining, IPR
• Knowledge Worker
• Knowledge process outsourcing (KPO’s)- Consultancies,
Moody’s Analytics, Infosys, JP Morgan Chase.
# A couple of decade ago people were talking about
information age and ICT (Information communication &
Technology) etc. All data uploaded leading to availability,
but accessibility was limited due to improper KM. It was
important to provide the right knowledge to the right
person at the right time.

Place of knowledge in our daily
space

Two Major types of Knowledge
• Tacit – Unstructured knowledge, subjective,
experimental, cognitive in nature. Highly
personal, Non documented, Skill sets, mind maps,
involves a lot of human interpretation.
• Explicit – Structured knowledge, objective,
rational, technical. Can be learned, taught and
shared. Example; goals, policies, principles etc.

Knowledge Assets of any
organization?
EXPLECIT (Codified Knowledge) TACIT ( Non codified knowledge)
Patents Working solutions/ Work force
Copyrights Customer relationship tactics
Trademarks Experience provider
Proprietary documents Database
QR Code, Methodology to resolve
issues ,
Assorted information from
databases.
Recreational facilities at Google
workstations provide a platform for
tacit knowledge flow.
Agile Training- For project
management

ETHICAL AND SOCIAL
RESPONSIBILITY OF ENTREPRENEUR
• The entrepreneur must establish a balance between ethical
exigencies, economic expediency, and social responsibility.
• While ethics refers to the “study of whatever is right and
good for humans,” business ethics concerns itself with the
investigation of business practices in light of human values.

SOURCES OF FINANCE
• Internal Source: Refer to the owner’s own money known
as equity. This amount fulfill very limited requirement of
enterprise or it is very thin.
• External source : Arranged from financial Complete
requirement of enterprise and generally taken for long
period.

CLASSIFICATION OF FINANCIAL NEEDS
• Fixed Capital: The money invested in current assets like
raw material, finished goods, machinery, equipment,
furniture etc.
• Working Capital: Money required for day to day
operations of business/enterprise.
ON THE BASIS OF PERIOD OF USE:
• Long Term Capital: Money whose repayment is
arranged for more than five years in future.
• Short Term Capital: Borrowed capital/money that is to
be repaid within one year.

Popular sources of finance(India)
• Venture Capital
• Bank loans (IDBI,ICICI,EXIM)
• Friends/ relatives
• Community development banks (Cooperative
Banks)
• Regional development banks/Agency
(SIDBI,NEDFI,AGVB)

Stages of financing
Early- stage Financing:
1. Seed Financing
2. Startup Financing
3. First Stage Financing
Expansion Financing
1. Second Stage
Financing
2. Bridge Financing
Acquisition
Financing

North East Venture Fund (NEVF):
• Set up by North Eastern Development Finance Corporation Limited (NEDFi) in
association with Ministry of Development of North Eastern Region (M-DoNER).
• It is the first dedicated venture capital fund for the North Eastern Region.
• Objective: to contribute to the entrepreneurship development of the NER and
achieve attractive risk-adjusted returns through long term capital appreciation by
way of investments in privately negotiated equity/ equity related investments.
• The investment under this schemer ranges from Rs. 25 lakh to Rs.10 crore per
venture, which is long term in nature with investment horizon of 4-5 years.

Essentials Of A Good Plan For An
Entrepreneurial Venture
1. Simplicity- Easy to understand , facts, figures should be clear.
2. Flexibility – Plans must not be rigid to adapt to any situation.
3. Sustainability- A plan must be suitable to a particular unit.
4. Acceptance- The plan must be acceptable to the subordinates.
5. Facilitate Organizing- A good plan should enable proper organization of resources.
6. Provide Purpose And Direction- It should provide proper direction so that the activities can be
conducted smoothly.
7. Facilitate Control Simplicity- If the targets are planned clearly, it will enable a manager to monitor
the performance.
8. Generate Harmony- A plan should generate team spirit among the different sections or
departments of an organization.
9. Generate Efficiency- A good plan must make optimum use of the available resources.
10. Motivate Personnel- A good plan should be realistic and challenging.

MBA 4034-Innovation and Entrepreneurship Management Gauhati university syllabus NM

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à MBA 4034-Innovation and Entrepreneurship Management Gauhati university syllabus NM

Similaire à MBA 4034-Innovation and Entrepreneurship Management Gauhati university syllabus NM (20)

Dernier

Dernier (15)

MBA 4034-Innovation and Entrepreneurship Management Gauhati university syllabus NM