Entrepreneurship

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Entrepreneurship
Amrita Institute of Management Amrita University
S R NAIR Managing Director, Team Frontline
Private Limited Founder CEO, Team e-biz
Limited Imm. Past President, Kerala Management
Association Founder Past President, TiE Kerala
Chapter
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Entrepreneurship in India
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Killers of entrepreneurship

• Societal non acceptance
• Security / safety concerns
• Job orientation
• Risk free life
• No responsibility
• Comfortable life

This leads to corruption and crime as money and
material is needed for comfortable life
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Relevance of entrepreneurship now

• Globalization
• Privatization
• Liberalization
• Indian Economic growth
• WTO

Strong economy is the best politics Robert
Rubin Former US Secretary of Treasury
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Entrepreneurial road
Professional
Entrepreneur
Industrialist/ businessman
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Let a thousand flowers bloom

• Micro entrepreneurship - Bedrock of economic
  stability
• Herd mentality is not micro entrepreneurship
• Home work and research needed to study the
  business proposition

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What leads to entrepreneurship ?

• Knack to identify the opportunity

• Core competencies

• Innate talent
• Innovation

• Ideas leading to timely business development

• Positive orientation

• Adventurous / Risk taking ability

• Willingness to work hard

• Capability to network

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Entrepreneurial Aspect

• Entrepreneurial Orientation
• Innovation dimension change and innovation for
  gaining competitive advantage
• Proactiveness dimension compete vigorously and
  aggressively
• Risk taking dimension

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Entrepreneurial Aspect

• Distinguishing Characteristics of Entrepreneurs
• Identify pattern in volatility and chaos vision
• Avoid impossible tasks, pursue strategic
  opportunities
• Persistent in converting real options into
  productive outcomes

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Why entrepreneurial leadership?

• High velocity environments
• Limited resources
• Hyper competition
• require a new type of leader focused on enhancing
  organizational capacity for adaptation, survival,
  and wealth creation

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Organizational Entrepreneurship The
Intrapreneurship

• Entrepreneurship a leading driver of local,
  regional, and national economies
• Entrepreneurially oriented firms are capable of
  corporate transformation and gaining first mover
  advantages in emerging new products or markets
• Four conditions encourage entrepreneurial action
  in firms
• Developing and communicating entrepreneurial
  vision.
• Structured systems to support innovation and
  championing
• Processes to generate and secure resources and
  expertise
• Capacity to facilitate continuous exploration and
  idea generation.

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Entrepreneurial Leadership the Concept

• The Challenge
• To create and sustain an entrepreneurial
  mindset in the organization
• Thus, entrepreneurial leadership is defined as
  leadership that creates visionary scenarios,
  motivating and committing a cast of characters
  for the discovery and exploitation of strategic
  value creation

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Types of Entrepreneurial Leadership

• Neo-charismatic Transformational Leadership
• Appeal to self-actualization needs and personal
  values of followers.
• Focus on foresight and pattern recognition
  capabilities for organizational survival and
  adaptation
• Eg Bill Gates, Microsoft
• Team-oriented Leadership
• Both elicit heightened levels of group
  participation by team members
• Orchestrate roles in face of rapidly changing
  context.
• Eg Toyota
• Value-based Leadership
• Both emphasize personal example of involvement
  and commitment for adding value in changing
  environments
• Win-win problem solving and innovation as opposed
  to moral ideology
• Eg BMW

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Entrepreneurial Leadership The Model

• Entrepreneurial leadership encompasses the
  complementary sub dimensions of scenario and cast
  enactment which involve five roles required to
  sustain entrepreneurial action in firms.
• Scenario enactment involves the first three
  roles
• Framing a challenge to push the team to its
  limits without going overboard, and discovering a
  vision worthy of persistence
• Absorbing uncertainty involves shouldering the
  burden of being wrong about the future to enable
  followers to act.
• Path clearing involves negotiating the firms
  internal and external environments to dissolve
  potential resistance, obtain support and
  eliminate obstacles to the achievement of desired
  goals.
• Cast enactment is associated with the following
  two roles
• Building commitment to inspire a team to
  commit extraordinary energy to accomplishing the
  task
• Specifying limits so that there is no escape
  from success make it happen despite odds
  eliminate self-imposed ideas of limitation e.g.
  recession

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Entrepreneurial Leadership Summary
Cast Enactment
Scenario Enactment
Framing the Challenge Absorbing
Uncertainty Path Clearing
Building Commitment Specifying Limits
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Entrepreneurial Leadership in Action How Toyoda
family enacted transformation into Toyota?

• Absorbing the Uncertainty Where are the
  resources?
• 1929 Sakichis son Kiichiro sells Toyoda patent
  (for use outside of Japan, China and the US) to
  Platt Bros of UK, for 100,000
• Path Clearing - How to get the mandate to be on
  the move?
• 1931 Kiichiro develops a prototype engine
• 1933 Toyoda Board approves auto entry, and set
  up auto dept

• Framing the Challenge What needs to be
  accomplished?
• 1897 Sakichi Toyoda invents automatic wooden
  loom
• 1907 Sakichi founds Toyoda Automatic Loom Works,
  with backing of Mitsui
• 1910 Sakichi visits the US, and sees auto
  revolution
• 1925/27 Ford and GM set up assembly operations
  in Japan

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Entrepreneurial Leadership in ActionHow
Toyotas cast was enacted?

• Building commitment
• 1934 Kiichiro hires GM employees, installs
  imported machinery and equipment
• 1935 Toyota unveils prototype car
• 1936 Toyota begins producing cars
• 1937 GM/Ford exit, and Toyota left as the sole
  competitor of Nissan

• Specifying Limits
• 1950s One assembly line, Supermarket pull system
• 1960s Toyota becomes No. 1 auto assembler in
  Japan

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V-Guard Industries A local example

• Single man company
• Humble beginning
• Moulding the group
• Quality orientation
• Changing with times
• Simplicity in products and approach
• Divestment
• Industrialist of Kerala

All, a saga of 25 years
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Scalability

• Ability to build up the organization
• Do not hold on to small fiefdoms
• Ability to understand the role of each person

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Gains of entrepreneurship

• Wealth creation
• Wealth distribution
• Societal respect
• Appreciation
• Recognition
• Satisfaction

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Current Industrial Scenario (India)

• L P G
• WTO
• Average GDP growth gt 5
• Industries booming
• Stock market booming
• Commodities booming
• IT
• ITES
• Biotechnology
• BPO
• Manufacturing (Automobile, Telecom)
• Textiles
• Strong monsoon

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Entrepreneurship
An idea whose time has come
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Parting quote
21st century will be a knowledge century, a
century of innovation, enterprise,
entrepreneurship where Indian core competencies
will be honed up M S Swaminathan
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Thank you
srn_at_teamfrontline.com