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PPT – Entrepreneurship Power. Point presentation . Enterprise (oxford dictionary) Bold Undertaking Entrepreneur- New Encyclopedia Britannica An individual who bears the risk of operating business in the face of uncertainty about the future conditions.
Entrepreneur Entrepreneurship Enterprise Person Process or Philosophy Object Entre enter Pre before Neur Nerve Centre. Entrepreneurship can be described as a creative and innovative response to the environment. Entrepreneurship Theories. French verb- Entreprendre to undertake 1. Person bearing Risks of Profit in a fixed price contract (Risk) 1. Richard Cantillon Person bearing risks is different from Capital Supplier (Risk) 1. J. Say Shifts economic resources out of an area of lower into an area of higher productivity greater yields (Value Addition) 1.
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Joseph Schumpeter Innovator and develops untried technology (Productivity Innovation) 5. Entrepreneurship Theories. David Mc. Clelland highly motivated, energetic, moderate risk taker (Need for achievement) 1. Peter Drucker Searches for change, responds to it exploits as opportunity (Opportunity Focused) 1. Karl Vesper Behaviour Perceptions- Economists, Psychologists, Businessmen, Politicians (Environment) 1. Gifford Pinchot- Intrapreneur 1.
Robert Hisrich - Creating something different with value, devoting time effort, assuming risks (FPS) results- rewards and satisfaction (Leadership Vision)How do you define an entrepreneur in the 2. Century? 6. 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 7. The Nature and Development of Entrepreneurship Entrepreneur stems from French Verb Entreprendre means between taker or go between New Definition involves four aspects The creation process The devotion of time and efforts The assumption of risks Rewards of independence, satisfaction, money.
What makes a Successful Entrepreneur? The urge for achievement Determination to win Win- Win Personality Willingness to take moderate risks Ability to identify explore opportunities Analytical ability to take strategic decisions 1. Perseverance Flexibility Capacity to plan and organize Preparedness to undergo physical and emotional stress Positive self concept Future orientation Vision Ethics and Values Mission 1. Who can be an Entrepreneur?
Who can take moderate risks Who has ability to work hard Who can capitalize on opportunities Who has some financial strength Who feels the need for achievement Who has desire for responsibility Who has perception of probability of success Who gets stimulation by feedback Who possess skills in organizing Who can be male or female Who may not have previous experience 1. Characteristics of an Entrepreneur. Mental ability Clear objectives Business secrecy H. R. Skills are ability to do something well (hard and soft skills) Motives are reasons for doing something (need) Traits characteristics way in, which a person responds. Attitude reflects the way of thinking and acting (Self and others determine the attitude) 2.
Performance emerges from the combination of knowledge, skills and attitude. Competency enables to perform better than others. Competency is related to superior performance.
Competency gets reflected in the job. Competency is developed. Initiative Taking actions that go beyond job requirements or demands of the situation. Doing things on own before being asked for or being forced by the events. Taking actions to start the business and expand into new areas, products and services. Seeing acting on opportunities Looking for and taking actions to seize opportunities Seeing and acting on opportunities for business development or for personal growth.
Seeing unusual opportunities Seizing opportunities, need, procuring and mobilizing necessary resources. Ensuring all efforts to solve a problem or barrier.
Information seeking Taking action s on own to help reach objectives. Personally undertaking a research or analysis to find out answers to some problem. Seeking information to clarify what is needed. Using networks to obtain information. Stating a desire to produce work of high quality Comparing work favorably to that of others.
Making all out efforts to ensure the quality of product or services. Work commitment to contract Placing highest priority for getting a job completed. Taking all the effort to complete a job. Accepting responsibilities for failures.
Expressing utmost concern for the customers Readiness to work at any level to get work done. Efficiency Orientation Constantly looking for ways to do things faster or with fewer resources or at a lesser cost. Using business tools to increase personal or professional efficiency. Expressing concern for assessing cost versus reward of some improvements, changes or action. Systematic Planning Developing and using logical steps to reach goals. Breaking a large task into several sub tasks.
Developing plans after duly anticipating obstacles. Evaluating alternatives on merits and demerits. Problem Solving Identifying and applying new ideas to reach the goals. Identifying the root cause of the problem. Developing strategies in the light of objectives, resources, and constraints. Generating new ideas or innovative solutions. Self Confidence Having a strong belief in own abilities.
Sticking with own judgment in the face of opposition or early lack of success. Doing something for which chances of success are not very fair. Making someone agree to provide resources Convincing with confidence, competence and respect. Use of Influence Strategies Using a variety of strategies to influence others successfully Developing professional and business contacts.
Using influential people to get own things done. Carefully limiting the information to be given to others Using others authority and resources, but remaining ethical 2. Assertiveness Confronting problems and issues with other directly Speaking politely but firmly. Telling others clearly what they have to do Reprimanding those who fail to perform as expected however close they may be. Monitoring Ensuring smooth progress of project or work. Personally supervising all aspects of the work to its completion.
Developing a system of supervision and monitoring. Concern for others welfare Having a concern and taking actions to improve others welfare. Responding positively to employees specific needs. Having a concern for the welfare of employees, their families and society at large.
General Aspect Political Socio- cultural Technological Legal Economic. Business Environment Entrepreneurship.
Elements Promoters / shareholders values Mission / objectives Management Structure Internal Power relationship Physical assets facilities Co. Assessing to interpret data (what does it all mean to the entrepreneur?) 3. Entrepreneurship and Economic Development. Entrepreneurs set up Enterprises Entrepreneurs combines resources, put their time and efforts and produce goods or services What they contribute productivity, output, value addition, income and employment Entrepreneurship is a Low Cost Strategy. Entrepreneurs perform the crucial role themselves The spirit of Entrepreneurship Drive, achieving higher goals, creativity, innovative attitude. A dynamic society emerges and the spirit spreads like a chain reaction. The Invention Process.
Market Need. Technology observation. Need Analysis. Parameter Identification. Creative Synthesis. Realization Invention, which meets the need 4.
Product Evolution Process. Fundamentals of Science. Development Phase. Commercial Phase. Recognized Social Need. Technology Planning.
Concept Testing. Financing. Modeling. Beginning of Technological Innovation.
Manufacturing. Product Testing. Marketing. Invention / Innovation 4. The Evolution Process. Intersection of Knowledge and a recognized social need Initiation of technological innovation Iterative Synthesis Development Phase Industrial Phase 4. The Product Planning and Development Process.
Idea Stage Idea Evaluate Concept Stage Lab Development Evaluate Product Development Stage - Pilot Production Evaluation Test Marketing Stage- Semi Commercial Production Evaluation Commercial Stage Introduction Growth Maturity Decline 4. Commercialization. Role of Government Role of Corporate Intrapreneurship Role of Individuals Entrepreneurship 4. Development of Technology Utilization of materials Exploitation transformation of energy Understanding and application of Scientific Principles The Role of Government Promotional Neutral Regulatory 4.
The Role of Smaller firm. T- High, M- High Large skilled resources, financial backing. Act as a Supplier or Sub Contractor T- High, M- Low - Specialist firm, access to low cost research T- Low, M- High Linkage with well- established channels T- Low, M- Low Well Suited to small firm Low Tech High Volume Financial Ability High Tech Low Volume Strategic Ability Emerging Options Franchisee Sub- contractor 4.
Entrepreneurship and Management Students. Enterprises in protected economy can be mismanaged. Enterprises in competitive environment are essentially to be managed. A Management Graduate is a person trained to manage an enterprise.
Naturally, he will deliver the best results. A Management Graduate should not be just a Job Seeker.
He can and should take the role of Job Provider. Experience even from HBS confirm that more Management Graduates take Entrepreneurial Role (after some experience) and their income is higher than their colleagues who are in job. An Entrepreneur has to be a Manager. But a Manager need not be an Entrepreneur 4. Entrepreneurial Decision Process. Pull Factors Perception of Advantages Spotting an Opportunity Government Policies Motivation from Biographies or Success Stories Influenced by Culture, Community, Family Background, Teachers, Peers, etc. Push Factors Job Dissatisfaction Relocation Lay- off Retirement Boredom 4.
Comparison of Entrepreneurs, Intrapreneurs and Traditional Managers 4. No Transcript) 5.