Page 41 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes 3.1.5 Create New Venture

Once the entrepreneur has arranged for the resources mentioned above, the next step is the
creation/establishment of the new venture and running the business venture successfully while
the former task (creation of new venture) requires lot of enthusiasm, persuasion so that he is
able to gather optimum resources. The latter task (running the business venture) requires lot of
perseverance and passion to believe in self.

3.1.6 Change/Adapt with Time

As change has become the rule of the game in today’s business environment the entrepreneur
needs to continuously keep the organization upgraded and abreast of changing times. This is
not an easy task as it not only involves availability of funds for introducing change but also
(which is even more difficult) the adaptability of human resources towards the changed
environment.

Did u know? Is the concept of entrepreneurship new to India? At a superficial level it
seems to be as old as the Gupta and Chola dynasties, which traded spices with the rest of
the world, followed by the Mughals and the Britishers. But during all these eras,
entrepreneurship was more about creation and accumulation of wealth in the hands of
few. The essence of entrepreneurship is creation of wealth – Yes, not mere accumulation,
but rather distribution of wealth. And when it comes to distribution of wealth none of the
dynasties and the rulers of the past pass the qualification. In this context, it is only the
entrepreneurs of the post-liberalization era who fit the bill. Entrepreneurs of the recent
era not only work for their own growth but also for the growth of all those who are
associated with them. Narayana Murthy of Infosys is a good example for this. Narayana
Murthy not only created wealth (the Infosys) but also distributed the fortune of Infosys to
all its members by introducing ESOP (Employee Stock Option Plan) through which he
made all its employee as partners in growth and development. He recently retired from
the post of CEO after attaining the age of 60 and made way for the younger generation.
Hence the essence of entrepreneurship is not creation and accumulation of wealth but
distribution of wealth amongst all those who are associated with the business.

Self Assessment

Fill in the blanks:

1. Entrepreneurs identify ……………….. where others see obstacles and impossibility.
2. …………………….. sense opportunities since they are creative and are open to the new
ideas.

3. Running the business venture requires lot of ………………. and …………….. to believe in
self.
4. An entrepreneur prepares a business plan to make the …………. and means of achieving
the vision clearer to ‘the others’.
5. Identification of opportunity at the right time is of utmost importance as it gives
“……………. advantage” and takes an enterprise ahead of others who take time to catch
up.

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