F o u n d a t i o n s o f E n t r e p r e n e u r s h i p

Foundations of
Entrepreneurship

Introduction
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Course Content
Introduction
Definition
Economic contributions of entrepreneurs
Entrepreneurship and Entrepreneurial mind-
set
Corporate entrepreneurship/Intrapreneurship
Identifying and Analysing Opportunities
Innovating business models
Innovation driven entrepreneurship
Information sources
Demand supply data
Export import data
Business portal
Mergers & Acquisition
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Course
Organizational Plan
Forms of business
Content
Advantages and disadvantages of different types of legal entities
Building a Team
Balanced team
The role of board of directors
Introduction to Market Research
Financial Plans
Accounting and financial statements
Operating and capital budgeting
Pro forma statement
Cost-volume analysis
Break-even analysis
Elevator Pitch
Sources of Capital
Bootstrapping
Bank loan
Government grant
Crowdfunding
Angel funding
Venture capital
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Course
Content
Elements of a Business Plan
Bankable Project Report / Detailed Project Report
Introduction to Marketing Management
Financial Management
Introduction to Human Resource Management
Introduction to Strategy Management
Introduction to Systems Management
Legal Issues of Business (Taxation, Labour Law, IP
Law, Contract, Government Purchase Procedure)
Exit Strategies
Introduction to exit strategies
Valuation of Business
Public Issue of Shares
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Innovation
Magnetic levitation based transportation
system.
Portable low-cost air-conditioning system.
Solar powered paddy harvester.
Lightweight bricks using bio-waste.
New machine for a local textile company to
multiply capacity with low capital
investment.
Process technology for extracting beta-
glucan from Mushroom.
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Let us do a bit of innovation

You are welcome to bring technology
or business model challenges
relevant to society.
We shall try to evolve a solution
during the course of the class.
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Entrepreneurship Landscape

http://trak.in/india-startup-
funding-investment-2015/
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Entrepreneurship Landscape
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Senapathy Kris
Gopalkrishnan
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Axilor Ventures Acceleration

http://axilor.com/
Founded by some of the most respected entrepreneurs,
Axilor helps founders improve their odds of success.
Through refining your idea, helping you build products
your users love, customer connect, funding, scale.
The Axilor Accelerator program - fast ways to get
funded. You will figure out if you are working on
something people want, build products users
love and show early traction.
All selected teams are given Rs. 1.00 lakh to set up
unit.
Successful teams receive Rs. 25 lakh angel funding in
exchange for a small stake (success ratio 1:27).
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Entrepreneurship
Entrepreneurship is about
Identifying an opportunity in the form of
unmet pains (pain points or need) in a
group of people or entities (target
customer: segment) who are crying for
solution.
Innovating solution to alleviate the pain in
a competitive way (through product or
service differentiation).
Making the solution available to the
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Entrepreneurship contd.

Entrepreneurship is about
Arranging required fund.
Organizing a balanced team.
Putting in place the required infrastructure.
Making the product or service available to the
customers (distribution channel / logistics).
Maintaining loyal and satisfying employees.
Building loyal customer base.
Sustain operation in competitive manner, constantly
endeavoring to offer better value for the money of the
customers (to prevent competition from wining them
away).
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Italys Self-Driven Battery

Operated Pods
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Entrepreneurship Landscape

State Bank of India: SBI Launches

an Exclusive Branch for Startups
Called InCube

Silicon Valley
entrepreneurst
o attend Start
Up India event

http://trak.in/india-startup-funding-investment-2015/
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Definition of Entrepreneur

The wordentrepreneuroriginates from

the French word, entreprendre, which
means "to undertake."
In a business context, it means to start a
business.
Dictionary definitionof entrepreneuris
one who organizes, manages, and assumes
the risks of a business or enterprise.
Read more on definition.
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Entrepreneurship
Innovation-Driven Entrepreneurship
Corporate Entrepreneurship or
Intrapreneurship
Social Entrepreneurship
For profit
Not-for profit
Small Business
Difference between small business and
entrepreneurship Originality of idea, riskiness
of business model and less concerns towards
failure, purpose, way of defining the pain
points. [Read more]
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Definition
Thecapacityand willingness todevelop, organize
andmanageabusiness venturealong with any of
itsrisksinorderto make aprofit. The most obvious
example of entrepreneurship is the starting of new
businesses.
Ineconomics, entrepreneurship combined with
land,labor,natural resources andcapitalcan
produceprofit. Entrepreneurial spirit is
characterized byinnovationand risk-taking, and is
an essential part of anation'sabilityto succeed in
an ever changing and increasinglycompetitive
globalmarketplace.

Source: http://www.businessdictionary.com
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The Total Product Concept

Layers of Experiences
Core Product: The new solution or product.
Expected Product: Good price, demo,
financing, service Potential
Augmented Product: Warranty, customer Product
service, document solution, network support
Augmented
Potential Product: Information
service, managed service, CRM Expecte
service, fleet management d

Core:
The
product
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Intrapreneurship
Corporate Entrepreneurship
"A person within a large corporation who
takes direct responsibility for turning an idea
into a profitable finished product through
assertive risk-taking and innovation.
Intrapreneurship has evolved as a corporate
management style integrating risk-taking,
innovative approaches, motivational
techniques more traditionally the province
ofENTREPRENEURSHIP - in the work
culture.
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Intrapreneurship/
Corporate Entrepreneurship
Intrapreneurs within an organization
are encouraged to behave as
entrepreneurs, be creative, embrace
calculated risk to achieve higher goals
within the larger mission of the
organization using the resources,
capabilities and security of the larger
firm to draw upon.
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Mahindra Group to invest in its

'intrapreneurs' startups
MUMBAI: TheMahindra Groupis
considering a proposal to allow employees
to invest in startups being incubated within
the organisation, giving a strong push to
'intrapreneurship'.
The idea is to give staff involved in
establishing them an opportunity to
participate in wealth creation besides
attracting and retaining talent that's drawn
to join startups.
http://articles.economictimes.indiatimes.com/2015-07-
16/news/64495058_1_mahindra-logistics-mahindra-group-cash-rich-startups
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More Instances of
Intrapreneurship
3M gives freedom to employees to create
their own projects, and provides funds.
HPused to be known for innovation-
friendly atmosphere and intrapreneurial
reputation.
Intel has a tradition of intraperneurship.
Google allow their employees to spend
up to 20% of their time to pursue projects
of their choice.
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Innovation and
Entrepreneurship
Joseph Schumpeter connects
entrepreneurship with innovation
New product.
New production methods.
New market.
New forms of organization.
Use resources innovatively to translate
them into valuable products so as to
maximize value to consumers generating
superior returns and resulting in creation
of wealth for the nation.
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Schumpeter Propounded
Creative Destruction as a way of innovation
and entrepreneurship
Entrepreneurs
greatlyvalueself-reliance,
strive for distinction through excellence,
are highly optimistic (otherwise nothing
would be undertaken).
always favor challenges and take
caluculatedrisk.

Source:http://www.businessdictionary.com
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In summary, entrepreneurs

Identify an opportunity to serve an

audience
Innovate new product or process to
meet expectation of the audience
Arrange resource and take the risk
Organize team
Execute the plan in a way to make it
profitable.
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Thought of the day

Pricing power
Entry barrier Moat
Niche market
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10 Things I Wish Someone Told Me When I Was Founding My Startup - Aloke
Bajpai
People
The biggest make or break forstartupsis not funding, not revenues, not market size,
not timing, not even scale, but people. If you have the right people, you will figure out
all of the above and do whatever is needed to survive & grow in any situation. The
founders, the leadership team, the engineering team, the sales & marketing folks, the
customer service people, the support folks, every single cog in the wheel is super
important.
Growth
The only sustainable way to grow startups is to build a product that people need, love,
and tell others about on their own. You can trash all other gyaan on this subject.

Culture
Culture is about making everyone accountable for every failure and everyone on every
small success. Culture gets signalled in every decision, process, policy, reaction,
emotion, hire, raise, praise, appreciation, scolding, firing. Culture is how you react to
failures. More than anything,Culture is about mutual trust. Culture is about being
ethical.
Emails & Conferences:
If you are starting up, dont waste your time attending conferences, unless youre
speaking there, 0f course. If you choose to attend conferences, spend more time
outside the sessions than inside them, unless its a workshop where they teach you
how they actually did it.
Real discussions and partnerships happen in corridors, not halls.
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Contd..
Investors
They will only pay attention to you and your plan when you get
introduced through a trusted contact in their network. Find the most
trusted and reputed contact you can go through.
Cash
The single most important metric for a startup to track day in, day
out, is cash. The rate of depletion or accretion of cash is what
makes or breaks a business.Cash-flowplanning is more important
than P&L budgeting for startups. The day you realise you are
running out of cash is the day when you get pushed to the wall (we
went through that twice in our company already), and how you
react to that situation defines your company. The only valuation
that is real and tenable is a Discounted Future Cash-Flow Valuation
(DCF).
Experimentation
In a fast-changing world, companies that are rapidly evolving
onproduct, pivoting and failing stuff fast, while experimenting on
multiple avenues for growth are the ones that will scale the fastest,
since they will discover growth hacks before others do.
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Contd..
Decisions
Its never about right or wrong decisions. Thats always only in hindsight. Its
about how fast you can gather the right data, develop the right intuition, and
have the courage to take those decisions. Its about the follow through and
commitment of the team to execute those decisions. The pace of decision-
making sets the pace of execution, and the pace of execution or iteration sets
the pace of growth, so the pace of decision-making is directly correlated with
startup growth.

Health
The most precious asset for your business is for you the founder to remain in the
pink of your health. If you love your startup, take good care of yourself. You can
start another company if this one fails, but you only have one life. Eat healthy,
get enough sleep, and take a break at times. I realised this only after I got
diagnosed of sleep apnea last year. Since then, Ive managed to lose weight,
exercise, eat healthy and sleep more, and I feel a lot more productive as a result.

Family
Do not forget that you have a family that cares about you and that equally
wishes to see you win and succeed. The least you can do is spend more time
with them by maintaining a good work-life balance.Keep weekends free as much
as possible for them.
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Next Class

Economic contributions of
entrepreneurs
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Sample Questions
Define entrepreneurship and explain how it
is different from small business.
Define corporate entrepreneurship.
Mention some of the companies promoting
corporate entrepreneurship and state their
uniqueness.
Write short-notes on the followings:
Pricing power
Entry barrier Moat
Niche market
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recognizing the right opportunity,

finding resources such as funding and tools to
pursue the opportunity and creating the right team to do so.
successful entrepreneurship involves much more than having a great concept
Most people think being an entrepreneur is all about coming up with an idea, but
that's just one part,"
"It's also important to know right from the start how you will reach interested customers in an effective and affordable way.

Ability to think through different alternative plans: Entrepreneurs must be able to think through different develop business plans to meet goals
in a variety of areas, including finance, marketing, production, sales and personnel.
Leadership skills: The ability to develop a vision for the company and to inspire employees to pursue it is imperative for success.
Marketing skills: Good marketing skills, which result in people wanting to buy goods or services, are critical to entrepreneurial success.
Communication skills: Entrepreneurs should be able to explain, discuss, sell and market their goods or services.
Interpersonal skills: The ability to establish and maintain positive relationships with customers and clients, employees, financial lenders,
investors, lawyers and accountants, among others, is crucial to the success of the entrepreneur's business venture.
Basic management skills: Even if entrepreneurs hire others to deal with the day-to-day tasks of the business, entrepreneurs need to know
whether their company has the correct resources.
Learn from others' failures. Rather than admiring the small percentage of businesses that grow to become successful, study those that end up
failing. Gottlieb said this research will greatly increase your chances of success, since most companies have made common mistakes that have
led to their demise. He said that having the humility to learn from the mistakes of others before making them yourself is the secret to success.
Make sure this is what you want. Because entrepreneurship entails so much hard work, it is critical to ensure you're following the right path,
Amini said. "If this is something you really want, then think long-term, and be persistent," she said. "The vast majority of great entrepreneurs
failed multiple times before they finally found the business idea that took off and brought them success."
Solve problems. Entrepreneurs should always be in search of problems to solve and not the other way around, Bam said. In other words, "they
should not start with a solution looking for a problem," he said.
Be passionate. To be successful, you should find your passion and then build a business around that, Gottlieb said. "The passion is what will get
you through the stumbling blocks and prevent you from quitting in the middle of the race," he said.
Get advice from those who have done it. Amini advised would-be business owners to find mentors who are successful, as well as to read books,
network with people they admire and look into great educational programs to help them throughout the process.
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In uncertain, complex and fast-moving environments, the product and

process development essential for creating new business models
increasingly benefits from a combination of novel insight, rapid
experimentation and evolutionary learning. Practitioners need to consider
approaches that can create new perspectives by looking beyond known
assumptions, barriers and constraints. A key to success is to find tools that
enhance and expand the practice of business model experimentation.
Emerging research offers new opportunities to explore the importance and
relevance of dynamic, design-driven approaches to the creation of
innovative business models. As a starting point, The Business Model
Canvas of Osterwalder and Pigneur1 was selected to categorize the efforts
of innovators in a diverse set of industries. The business models of forty
companies were selected for evaluation and comparison. Five archetypal
business models were derived from this content analysis. Combined into a
five-model framework it synthesizes knowledge gained from real world case
studies into a useful and thought provoking methodology for identifying and
developing opportunities for business model innovation.