Entrepreneurship + Incubation = Innovation + Wealth Creation

Entrepreneurship
Three Central Questions

Can Entrepreneurship be taught/studied? What is Entrepreneurship? Who is an Entrepreneur?

What is Entrepreneurship

Entrepreneurship is the practice of starting new business enterprises

What is Entrepreneurship

An Approach to management that starts with opportunity Not just small companies Not just start ups Not simply promoters

Entrepreneurship is

A process Not a person About BIG companies that happen to be small Not about small business Important to BIG business

Entrepreneurial Process

Identify Opportunity

Need Solution Advantage

Acquire Resources

Technology rights People Money

Entrepreneurship Bridges the Gap

Technology / Opportunity

Entrepreneurship

Value

The Entrepreneurship Task

Key Resources Technology Money People

Technology

People

Money

The Entrepreneurial venture

FOUR PERIODS of DEVELOPMENT

II

III

IV

Pure Entrepreneurship Cash Flow

Time

The Entrepreneurial venture

Period I: Pure Entrepreneurship

Defining the concept of the business Gathering financial resources Assembling the startup team Identifying customers Analyzing the competition Building the prototype Getting your first customer

The Entrepreneurial venture

FOUR PERIODS of DEVELOPMENT

II Strategic focus

III

IV

Cash Flow

Time

The Entrepreneurial venture

Period II: Strategic Focus

What business arent we in? IMPLEMENTING the business we are in Knowing better than ANYONE else: What will people pay How many will they buy How to distribute How to service the customer Identifying strategic partners Developing relations with suppliers Going beyond the prototype to a truly scale able product Recruiting a complete team Raising institutional money

The Entrepreneurial venture

FOUR PERIODS of DEVELOPMENT

II System Building

III

IV

Cash Flow

Time

The Entrepreneurial venture

Period III: System Building

Financial control Stable division of labor Reporting relationship and authorities Developing systems of internal control Formalizing the terms of a sale Operational systems
Production, outsourcing Distribution, sales Service, warranties

The Entrepreneurial venture

FOUR PERIODS of DEVELOPMENT

II

III IV Corporate management

Cash Flow

Time

The Entrepreneurial venture

Period IV: Corporate Management

Hiring outsiders Going public Adding the follow-on product[s] Shedding those who cant keep up Formalizing the culture Rationalizing the strategy

Who is the Professional Entrepreneur

II

III

IV

Visioning the Future in the present

Cash Flow Zone of collaboration

Time

Zone of competition

Who is the Professional Entrepreneur

Personal Entrepreneurship Style

Entrepreneurship is a Team sport

Many can play even if they are not born entrepreneurs Lead Follow Execute Create Manage Innovate

Three modes

Three Functions

Which role is right for you?

Personal Entrepreneurship Styles: Modes: Leads or Follow

Lead

High Performance entrepreneurial teams are:

Execute

Self organizing Flexible Self disciplined Common goal Common priorities Common values Enabled by shared ownership

Follow

Same people may play different roles on different teams within the same company

Personal Entrepreneurship Styles: Functions: Creates or Manage

Create

Innovate

Manage

Innovation requires a combination of creativity and management brought by a team Creation requires the greatest technical competency Management requires technical affinity Different functions are best suited for different people Functions rarely are exchanged All collaborate in BOTH dimensions

Entrepreneurship is a Team Sport Results are what count

Innovation

Entrepreneurship

High performance technology entrepreneurship Is a BLEND of innovation and Execution

Requires collaboration and discipline It is best performed by a team Alignment of incentives directly and dramatically related to the outcome

Execution

What you cant Study Or We cant Teach

Entrepreneurialism The entrepreneurial attitude

Optimism Need for achievement Risk tolerance Creativity

Entrepreneurship as a social status Success as a requirement

Role of Technology Business Incubator in creating innovation & wealth

Business Incubator
Business incubators are organizations that support the entrepreneurial process, helping to increase survival rates for innovative startup companies.
Physical

Virtual

THE CONCEPT

PREMISES

AN EXCELLENT HI-TECH BUSINESS ENVIRONMENT

Incubation Process
04 months 1224 months 6..12 months

Discovery
FAST TRACK

Pre-Incubation
FAST TRACK

Incubation

Acceleration

PreIncubation and Kick-off Services

Business Development Road-map

Feasibility Studies

Incubation Services

Incubation Contract

Evaluation
Assessment of business idea feasibility

Business Plan
Start-up planning and preparation

Business Ramp-Up
Creation of a solid business platform for business growth

Toward Growth Track Preparation for acceleration and internationalization

Incubation Services
Discovery
Identification Feasibility Studies EAC BP Competition

Pre-Incubation

Incubation
Facility / Infrastructure

Acceleration

Mentoring Services / Match Making / Monitoring Softwares/ Business Tools Networking Services / Consulting services Funding Financial Services

Entrepreneurial Training, workshop, Seminars Operation support Business Plan Development & Expert Services (Legal, Marketing, IPR etc.) After Exit support

Incubatee Selection Process

Application Presentation Agreement

Performance So far
45 40 35 30 25 20 15 10 5 0 42

SNAPSHOT
Total companies incubated 42 Under Incubation 17 Graduated Success 18 Failures 07
7 Total companies incubated

17

18

Under Incubation
Graduated Failures

Overall success percentage 83%

Startup manpower: begin with 1-2 and expands to 7-9 Revenue: start with proof of concept ( 0 revenue)

Best Technology Business Incubator Award 2004 SEED Fund support to 5 companies (Equity/Soft Loan) MSME Funding support to 8 companies 4 Alumni's Companies

Startup capital: personal savings, family and friends

EMPLOYMENT GENERATED ~100 employees currently in incubatee companies 500+ employees in graduated companies and growing

ESTIMATED TURNOVER OF COMPANIES ~Rs 3.5 Crore within incubator ~Rs. 100 Crore graduated companies & growing

Entrepreneurs Statistics So far

AGE WISE WORK EXPERIENCE

Below LEVEL 1 Yrs 30 Above 40 Yrs 24% 16%

30 - 40 Yrs 60%

QUALIFICATION

49% of the promoters have technical qualification (B.Tech / M.Tech) and 80% are either technically qualified or have an MBA.

More engineers are opting for entrepreneurship sacrificing higher salaries in an employed

Who is Next ?
Entrepreneur

Citizen

Human

Thank you
Contact us : mustafa@jssstepnoida.org Mob: 9818249599