ENTERPRENEURSHIP:

MANAGING FINANCIAL
DECIPLINE
Presented by:

Dr. S.K.Bose
Prof. & Head, Department of Management,

Birla Institute of Technology, Mesra, Ranchi

And,
Former Manager and Management Consultant,

State Bank of India

Focal Areas:
Importance - Entrepreneurship
Development of
Entrepreneurship
Definition of Entrepreneurship
Entrepreneurship Process
Entrepreneurship Decision
Process
Cost & Financial Management of
Business Venture

Entrepreneur
The word Entrepreneur is
French and literally translated,
means

between-taker

go-between.

or

Present Definitions:

Entrepreneurship is kind of behavior that

includes initiative taking, organizing and
reorganizing

of

social

and

economic

mechanisms to turn resources and situations

to practical account and the acceptance of
risk or failure.

Contd.

Entrepreneurship is the dynamic process

of creating incremental wealth. The
wealth is created by individuals who
assume the major risks in terms of equity,
time, and /or career commitment or
provide value for some product or service.
The product or service may or may not be
new or unique, but value must somehow
be infused by the entrepreneur by
receiving and locating the necessary skills
and resources

Entrepreneurship :

The Decision Process.

*To take up through environmental scanning to
identify and study Alternative business plans
(Concept Synthesis)
*To assess and evaluate those plans (SWOT)
*To dream for New idea(s) (Big Dream
Approach)
*To conceptualize & capture the idea(s)
*To develop the ideas into a workable form
*To bring the ideas to the market
*To create a new venture (identifying Limiting
Factor/Key Factor)

Entrepreneurship Process
To create something New business idea
To provide value addition by devoting
necessary time and effort
To assume the accompanying financial risk
To assume the accompanying psychic and
social risks
To receive the resulting monetary rewards
To
enjoy personal satisfaction and
independence.

Formation of New Enterprise

A movement from a present lifestyle to forming a
new enterprise :
Change from present lifestyle
i) Work environment
Disruption (negative force)

Form new enterprise

Desirable:
Cultural
Sub cultural

Family
Teachers
Peers

Possible:

Government
Background
Marketing
Financing
Role models

Entrepreneurial Process

Opportunity identification and evaluation:

From Customers
From Business Associates
From Members of distribution system
From Technical people

Opportunity should be evaluated (Risk & Return

trade off)
Opportunity must fit the personal skills and the goals
of the entrepreneur
Opportunity assessment plan (a description of the
product or service and SWOT analysis.)
Develop business plan
Determine the Resources required
Manage the enterprise.

Creation of Business Idea

To

identify various sources of new

venture (consumers, current products,
distribution channels, Govt., R&D)

Methods

to generate new ideas (focus

groups, brainstorming, problem
inventory analysis)

Financial Plan
Understanding of Budget and Budgetary
Control System
Concept of Final Accounts
Cash Flow Analysis
Fund Flow Analysis
Sources and types of Capitals
Concept of Capital Budgeting
Concept of Working Capital
Concept of Cost for Decision making

Financial Management &

Control
Managing

Cash Flow
Managing Inventory
Managing Fixed Assets
Managing Current Assets
Managing Cost and Profits
Taxes
Record Keeping

Remarks of an entrepreneur
Being an entrepreneur and creating a
new business venture is analogous to
raising children it takes more time and
effort than you ever imagine and it is
extremely difficult and painful to get out
of the situation. Thank goodness you
cannot easily divorce yourself from
either situation.

Contd.
When people ask me if I like being in

business, I usually respond:

On days when there are more sales than
problems, I love it; on days when there
are more problems than sales, I wonder
why I do it.

Contd.
Basically,

I am in business because it
gives me a good feeling about myself.
You learn a lot about your capabilities
by putting yourself on the line. Running
a successful business is not only a
financial risk; it is an emotional risk as
well. I get a lot of satisfaction from
having dared it done it - and been
successful.

Entrepreneurship Education
Understand the role of SMEs in the
economy
Understand relative strengths and
weaknesses of different types of enterprises
To acquire technical, business management
and personal skills through seminars or
courses include creativity, writing full scale
business plan, financing, control,
opportunity identification, venture
evaluation and deal making.
Venturing capital funding to the SMEs.

Ethics need to be part of cutting edge,

it is not something can be imposed
Everyone is looking for a
competitive edge, and new
concepts to create it. But once a
concept surfaces, certain questions
keep coming up:
Is the concept Viable?
Will it survive regulatory scrutiny?

THANKING

YOU