Strategies for Entrepreneurial Stimulation, Support, and Sustainability in Today's Business Landscape
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Stimulation , Support &
Stimulation , Support &
sustainability in
sustainability in
Entrepreneurship
Entrepreneurship
Presented by Prof. PJ
For B. Com(H) – Semester 4
th
Subject – ED (Unit – 2)
Section -4 A
InIiiiiIiiiiii
In today’s competitive globalized business paradigm,
entrepreneurship happens to be a vital element for
sustainable development of any economy.
In order to build a favourable entrepreneurial ecosystem,
entrepreneurs should be provided with a platform where
they can :-
Come up with Innovative ideas ( i.e. get stimulated)
Get adequate assistance ( i.e. get support)
Ensure their survival in the long run (i.e. be sustainable)
Entrepreneurship Life Cycle
Entrepreneurship Life Cycle
Actors of Entrepreneurship
1.
Industry Association.
2.
Self – Help Group
3.
Business Incubators
4.
Angel Investors
5.
Venture Capitalist
1.
An association that is formed to support & protect the
An association that is formed to support & protect the
rights of a particular Industry & the persons who are
rights of a particular Industry & the persons who are
associated with that Industry. E.g. Bus owners association.
associated with that Industry. E.g. Bus owners association.
Features:--
Features:--
1. Non – Profit Organization.
1. Non – Profit Organization.
2. Voluntary Association.
2. Voluntary Association.
3. Status of association
3. Status of association
4.Distinct laws & Bye – Laws
4.Distinct laws & Bye – Laws
5. Income & Expenses
5. Income & Expenses
6. Periodic Meetings
6. Periodic Meetings
It is a voluntary association of people, preferably
It is a voluntary association of people, preferably
from the same socio – economic background. They
from the same socio – economic background. They
come together for solving their common problems
come together for solving their common problems
through self – help & mutual help.
through self – help & mutual help.
FEATURES:-
FEATURES:-
1. Voluntary Association
1. Voluntary Association
2.Mutual Trust & need
2.Mutual Trust & need
3. Periodic Meetings
3. Periodic Meetings
4. No. of Members (
4. No. of Members (
Maximum 20 members in a group)
Maximum 20 members in a group)
5. No Collateral/ Mortgage for loan
5. No Collateral/ Mortgage for loan
6. Rate of Interest is high.
6. Rate of Interest is high.
It is an organization, which is designed to
It is an organization, which is designed to
stimulate, support & enhance the growth &
stimulate, support & enhance the growth &
success of Entrepreneurial ventures by
success of Entrepreneurial ventures by
providing resources & services.
providing resources & services.
FEATURES:-
FEATURES:-
1. Non- Profit Organizations.
1. Non- Profit Organizations.
2.Formations ( By Govt. or successful
2.Formations ( By Govt. or successful
Entrepreneurs)
Entrepreneurs)
3. Physical or Virtual support
3. Physical or Virtual support
4. Bundle of support.
4. Bundle of support.
Angel Investors are usually high net worth
Angel Investors are usually high net worth
individuals who invest their personal wealth in
individuals who invest their personal wealth in
small or medium scale business start- ups in
small or medium scale business start- ups in
exchange for an ownership stake in the
exchange for an ownership stake in the
organization.
organization.
FEATURES:---
FEATURES:---
1. High net – worth persons
1. High net – worth persons
2. Investment in small start – up firms
2. Investment in small start – up firms
3. Own decision making.
3. Own decision making.
4. Individual Investor.
4. Individual Investor.
5. Flexible amount of Investment.
5. Flexible amount of Investment.
The person providing the venture capital is
The person providing the venture capital is
referred to as the Venture Capitalist.
referred to as the Venture Capitalist.
Venture Capital is a type of equity financing which
Venture Capital is a type of equity financing which
is typically provide to start – up firms & small
is typically provide to start – up firms & small
business that are believed to have long term
business that are believed to have long term
growth potential.
growth potential.
FEATURES:-
FEATURES:-
1. Long term Investment.
1. Long term Investment.
2. Early stage finance
2. Early stage finance
3. High rate of return
3. High rate of return
4. Risky Capital.
4. Risky Capital.
In the competitive global business environment, entrepreneurship is crucial for sustainable economic development. To foster a conducive entrepreneurial ecosystem, providing stimulation for innovative ideas, support for entrepreneurs, and ensuring long-term sustainability are essential. Various approaches such as tax holidays, crowdfunding, and technical assistance play a vital role in stimulating, supporting, and sustaining entrepreneurship. Additionally, actors like industry associations and financial institutions contribute to the overall success of entrepreneurs.
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Presentation Transcript
Stimulation , Support & sustainability in Entrepreneurship Presented by Prof. PJ For B. Com(H) Semester 4th Subject ED (Unit 2) Section -4 A
In todays competitive globalized business paradigm, entrepreneurship happens to be a vital element for sustainable development of any economy. In order to build a favourable entrepreneurial ecosystem, entrepreneurs should be provided with a platform where they can :- Come up with Innovative ideas ( i.e. get stimulated) Get adequate assistance ( i.e. get support) Ensure their survival in the long run (i.e. be sustainable) InIiiiiIiiiiii
STIMULATION (To Initiate) SUSTAINABILITY ( To Continue) SUPPORT (To Drive) Entrepreneurship Life Cycle
STIMULATION PUBLIC SYSTEM OF STIMULATION ( Initiatives taken by Government) PRIVATE SYSTEM OF STIMULATION (Initiative taken by established businesspersons, corporate houses etc.) APPROACHES 1. Providing Tax Holidays 2.Reduction of Rate of Interest 3.Abolition of Monopoly Privilages 4.Providing Funding APPROACHES 1.Crowd Funding 2. Angel Investing 3. Encouraging Intrapreneurship
SUPPROT ( Providing Assistances)) FINANCIAL SUPPORT 1.Commercial Bank 2. Non Banking Financial Institutions 3. Angel Investors 4. Shareholders 5. Venture Capitalist 6. Government & Government Institutions MARKETING SUPPORT 1. Enhancing Marketing Skills 2. Improving Marketing Capabilities 3. Updating Entrepreneurs about current scenario 4.Encourgaing MSME TECHNICAL SUPPORT 1. Participating in International Technology Exhibitions 2. Preparing Technical feasibility profiles
Actors of Entrepreneurship 1. Industry Association. 2. Self Help Group 3. Business Incubators 4. Angel Investors 5. Venture Capitalist
INDUSTRY ASSOCIATION 1. An association that is formed to support & protect the rights of a particular Industry & the persons who are associated with that Industry. E.g. Bus owners association. Features:-- 1. Non Profit Organization. 2. Voluntary Association. 3. Status of association 4.Distinct laws & Bye Laws 5. Income & Expenses 6. Periodic Meetings
It is a voluntary association of people, preferably from the same socio economic background. They come together for solving their common problems through self help & mutual help. FEATURES:- 1. Voluntary Association 2.Mutual Trust & need 3. Periodic Meetings 4. No. of Members (Maximum 20 members in a group) 5. No Collateral/ Mortgage for loan 6. Rate of Interest is high.
BUSINESS INCUBATORS It is an organization, which is designed to stimulate, support & enhance the growth & success of Entrepreneurial ventures by providing resources & services. FEATURES:- 1. Non- Profit Organizations. 2.Formations ( By Govt. or successful Entrepreneurs) 3. Physical or Virtual support 4. Bundle of support.
ANGEL INVESTORS Angel Investors are usually high net worth individuals who invest their personal wealth in small or medium scale business start- ups in exchange for an ownership stake in the organization. FEATURES:--- 1. High net worth persons 2. Investment in small start up firms 3. Own decision making. 4. Individual Investor. 5. Flexible amount of Investment.
VENTURE CAPITALIST The person providing the venture capital is referred to as the Venture Capitalist. Venture Capital is a type of equity financing which is typically provide to start up firms & small business that are believed to have long term growth potential. FEATURES:- 1. Long term Investment. 2. Early stage finance 3. High rate of return 4. Risky Capital.
ANGEL INVESTMENT VENTURE CAPITAL Investment is usually made in pre-profitability business by company which pools money from individuals and institutions In Angel investment, individual investor invest in pre- revenue business This investment is comparatively less risky since revenue stream is proven but the profitability of the invested company is not yet prominent. This investment is highly risky since revenue stream is not certain. Owing to pooling of funds, investment size can range from few million to tens of million since the amount of funds at disposal with a venture capitalist is much higher Investment size is limited to few million Venture Capitalists take longer time to make the investment decision since they have to address several stakeholders with differing interests. Hence, it is tougher to convince venture This investment takes shorter time for decision making since it involves an individual investor
