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[Music]
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hello and welcome to this edition of the
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Entrepreneurship essentials we start
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with a brief introduction that will
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contain the motivation the definition
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and a little bit about corporate
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entrepreneurship corporate
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entrepreneurship is another motivational
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aspect of entrepreneurship per se so
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here's the items to be covered know or
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talking about motivation entrepreneurs
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actually are the catalyst for economic
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and social development of this world
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since time antiquity they had been doing
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that just think for a while that Thomas
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Alva Edison was never born and many of
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the amenities that we think
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indispensable for our daily life will
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suddenly vanish or they would appear in
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the world much later than what they did
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actually so if you think of value
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creation for the society at large
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creation of jobs creation of economic
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value to the to any government these are
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all possible through entrepreneurs then
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there are problems bogging the society
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so entrepreneurs observe that people
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need solution people need to overcome
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their problems their pains so there is a
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social responsibility aspect when people
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some people think that we should become
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an entrepreneur if you are thinking in
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terms of personal wealth creation
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perhaps the old only were alternative is
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to do a job and that can take you so far
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you have a fixed salary alternately if
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you if you start a business sky is the
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world is the limit that where you can
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reach of course there are downside there
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are risk associated but then if you take
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care of all the risk and and
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is a failure then perhaps you can have a
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better chance of success and creating
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wealth would be highly possible and that
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to unlimited wealth then a new style of
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management has emerged in the form of
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corporate entrepreneurship if you're
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working in a big company then chances
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are that they will be looking forward to
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some entrepreneurial qualities in you so
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that you can be entrusted with a
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separate profit center as a head and
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then I should be able to take decisions
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take calculated risk etc one part of the
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whole process is corporate
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entrepreneurship people with talent of
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creative talent and then a little bit of
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leadership skill can may have of their
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own dreams which they can pursue inside
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the corporate culture corporate
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atmosphere with dedicated time dedicated
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resources for them and they can actually
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create value for themselves as well as
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well for the companies that the work for
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another motivation is to be your own
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boss you enjoy autonomy and freedom you
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want to come you want to make use
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accomplishment in your life you want to
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make a dent on the universe so your job
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may not may not be allowing you to do
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that so unit need independent
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independence and then you need to have
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access to resources unlimited resources
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another motivation is if an output
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opportunity is knocking at your door
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maybe you just heat up on an idea or or
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you find some opportunity whatsoever
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that maybe so you just start a business
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solve an acute an agonizing pain if you
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see that new new pains are coming or you
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identify some pain in a group of people
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you just think that you can come up with
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a solution with all the all the academic
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knowledge and experience with you you
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can
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perhaps you may think that you actually
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can give a solution so any knowledge in
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any particular domain may motivate you
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to start this kind of a business
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actually no other option some there are
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some people they have no other option
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but to start a business because maybe
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they have lost their jobs and all that
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they think of that history start a
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business sometimes particularly at this
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time the whole country is trying to
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promote entrepreneurship so the the
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infrastructure the the motivation in the
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in the administration are all suitable
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and they have put a wonderful ecosystem
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starting from funding to mentoring to go
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to market and then providing facilities
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for supplying to big companies and get
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your payment on priority etcetera
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etcetera so everything kind of sometimes
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motivate people to start a business and
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the time actually is now as in the last
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slide economic contribution or
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capability to contribute to the economy
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of the country and to the society at
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large is perhaps or should be the main
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motivating factor for anybody to become
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an entrepreneur at the end there is a
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reference of a lecture series at
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Stanford University it was compared by
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Sam Altman who is who was the chairman
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of Y Combinator and they have been
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accelerating startup for a long time and
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you name big big present generation
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companies chances are that they were
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incubated or accelerated at Y Combinator
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and they have made a lecture series in
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collaboration with Stanford University
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on entrepreneurship so it's like getting
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the thing from the horse's mouth they
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have they have delivered hundred
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wonderful lectures and all of them are
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either CEOs or some cxos of present
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generation successful companies so
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whatever they say there is every reason
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to take it as the golden words so gold
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golden rule or something so you should
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see the reference and and for your own
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supplementing knowledge you can go
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through the videos they have text also
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text files also yeah so Sam Altman
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actually said that if somebody wants to
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become an entrepreneur
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the only motivating factor should be
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that there should be a compelling idea
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to solve a chronic or acute problem in
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the society only then somebody think you
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should think of starting a business of
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course other people delivering the
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lecture did not corroborate or subscribe
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to the same idea most of the people
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think that if you have a wonderful idea
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that solves a problem of a group of
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people in the society you think that you
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can you can give them a solution that
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will be superior compared to whatever is
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available in the marketplace now and at
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a lower cost or that should make a
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wonderful value proposition for their
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money customers money then you should
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you should have no other reason you
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should not wait for anything to start
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the business you should start right away
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meaning that you are going to produce
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something that the customers are waiting
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to buy and there should be no reason why
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you should wait for that here is some
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data to support this idea you know Gaede
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publishes Global Entrepreneurship Index
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and here is the data for several years I
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think for more than ten years and you
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will find that the global GDP or per
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capita GDP is directly correlated with
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Global Entrepreneurship summit that
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precisely conveys that any country where
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people are becoming if we have the
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propensity to become entrepreneur and
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they are becoming entrepreneur they're
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equal
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is growing and per capita GDP meaning
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per head GDP is increasing with the
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level of entrepreneurship activities or
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any country which which are highly
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active that per capita GDP is higher
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this data can be accessed the reference
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is very much there so one can say that
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and if the entrepreneurship index goes
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up the quality of quality of life for
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citizens also go up here is just a
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correlation between entrepreneurship
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index and global entrepreneurship and
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quality of life of citizens so it makes
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sense meaning if you are an entrepreneur
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you can feel proud that you are part of
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this whole value creation you are part
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of the part of the process through which
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our citizens on money improve their
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income and then they get all the modern
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amenities that that has become
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indispensable in today's world so it if
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you have if you if you need any further
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motivation or if you lack this inside
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that entrepreneurs do not just create
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the business that they operate but they
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create a lot of other values like
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particularly say for example employment
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generation they create direct employment
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then they create casual labour they the
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support are there small small businesses
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like say hotel like a tea stall like
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pawn shop like rickshaw pullers like any
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other transportation then they also
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promote ancillary is so this is this is
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a a focused a point of view about job
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creation by entrepreneurs and you see
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that they really create lot of jobs
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directly and indirectly so they bring
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about economic value cycle and sustain
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that increase government income
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resulting in higher expenditure
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government can spend more money and
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create infrastructure for the citizens
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so tax can be paid only naturally
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probably by the people who earn money
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government Arne's away
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small sum of money from salaried people
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as tax major tic-tacs comes from
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corporate houses and they are run by
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entrepreneurs increase government income
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create more infrastructure more
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consumption that in turn creates move
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more entrepreneurs and it's a cycle it's
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a cycle that supports its itself it has
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a cascading effect of going upward so
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the country actually gradually moves up
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on GDP terms it promotes savings it
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increase consumption stipulates demand
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so it's a self-supporting system more
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entrepreneurs more economic value more
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entrepreneur and the cycle goes on and
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on it improves the technological
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landscape landscape of the country there
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are entrepreneurs then country will have
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the latest technology you imagine our
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country 20 years back when there was
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there were just two car brand brands and
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there were hardly two three motorcycle
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companies and that too the old company's
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old products even if somebody had money
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they could not consume
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now with entrepreneurial activities
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going up now current country has so many
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latest
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products available entrepreneurs are
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making them available and we are
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enjoying the benefit of the latest
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gadgets latest technologies
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entrepreneurs bring in foreign accents
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because they produce something that is
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saleable
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abroad in the process for elections
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comes here and when foreign exchange
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comes here our rupee value improves with
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that so many things happened today our
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GDP is 2.5 trillion dollars estimation
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by a stroke of a lock our rupee value
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just doubles meaning that now one dollar
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is 70 rupees it becomes a 35 rupees our
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GDP will be translated in terms of
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dollar and it will become double it will
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become five trillion so it all all boils
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down to value creation and anybody who
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has said 10 million rupees in a bank
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which is 1 crore now it will be
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converted into maybe maybe something
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like 1 point something 1.3 lakh dollar
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but if you drew a rupee become 35 rupees
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to $1 it
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become two and a half lakh dollar means
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that guy becomes quarter
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millionaire in dollar term here is an
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example to drive home this point very
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simple
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suppose you have 10 lakh rupees say you
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can pull 10 lakh rupees from your
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friends and relatives your father your
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whatsoever now you can do hardly
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anything but then suppose you go to a
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rural remote rural village where there
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is no industry no modern amenities but
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you set up a rice mill that runs on
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maybe coal and maybe diesel kerosene and
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the farmers who are growing paddy
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henceforth they did not have any
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opportunity but to sell it to the local
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marketplace where there will be
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wholesalers who are from the city they
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buy that at I have distress price and
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then bring it to the city they hold it
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for a while when the price goes up they
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sell it to the mills Mills processed
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them and then the same thing same rice
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goes through the village when the
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villagers during offseason villages have
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no stock available so they buy the same
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goods at a very high price now you place
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yourself in between and then you put up
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a mini rice field maybe for 25 lakh turn
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30 lakhs or something borrowing some
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money from the bank and look at how much
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value you can create and how you can
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transform the entire village with this
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10 lakh rupees you will have to hire
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these women for processing
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paddy into rice then you need some
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people to transport unit firewood so
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there will be another businessman who
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will be providing you the woods and
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these women who are working in your
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plant they have a monthly regular income
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the moment somebody has regular income
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they are highly empowered then they
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start thinking of saving some money they
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start thinking of sending their children
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to school so a rural unemployed educated
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youth will start a small school maybe
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someone will start their grocery shop
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there will be a health center a tea shop
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and whatnot transportation etc etc so
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everybody gets the benefit of days like
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benefit of the shop benefit of the
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school of the health center and whatnot
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at the same time they get income and
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gradually income actually multiplies
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that precisely shows how an
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entrepreneurial adventure can actually
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create or transform entire village maybe
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he can bring electricity there with his
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money and live and modernizing in his
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plant and from where villagers can take
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electricity connections so everything
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together it's a holistic development
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look at Reliance what they have done
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through why our money started from
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nothing he had nothing he was selling
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potato chips in a rural marketplace
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eventually they responsible for 10% of
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direct tax collection of our country
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then realized you alone is going to
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increase our GDP by five point six five
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percent by Harvard Business School study
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they they what they're also account for
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about five percent of our export so
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consider that there are twenty such
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reliance industries in our country and
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of countries GDP is almost going to
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going to be doubled corporate
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entrepreneurship is another reason why
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we should learn entrepreneurship why
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sure who should attend the class in
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entrepreneurship because corporate
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entrepreneurship offers a unique
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opportunity to creative talent creative
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people who are slightly proactive
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meaning that they think ahead of others
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or they think ahead of the things
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happening meaning other people are
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reactive they are proactive they can
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embrace calculate calculated risk and
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they're slightly they can think
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out-of-the-box have a little bit of a
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leadership skill companies are giving
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them respond or giving them opportunity
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to dream or to execute their own dream
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in the premises of the company using the
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resources of the company may be in line
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with the company's own vision or may be
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slightly different and they can create
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value for themselves and for the company
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so there is to do that a person must
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have entrepreneurial vision or a bit of
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knowledge as to how to translate an idea
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into an enterprise corporate
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entrepreneurship is the process by which
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teams within an established company
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conceived first loans and manors and new
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business that is distinct from the
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parent company but leverages parents
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assets market position capabilities and
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other resources it's a formal definition
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but you get the message then the same
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thing told differently but then why
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corporate entrepreneurship because from
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different perspective there is a
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perspective of the employee the
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perspective of the company true are
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different but then they match they
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converse at a point like if you are
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creative you can exploit your creative
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talent in this inner open atmosphere not
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in a closed five to nine or eight nine
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to five kind of a duty where your duties
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are defined predefined so you will not
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flourish your your talent will not
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flourish your creative creative side of
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the brain will not really function well
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you need an open atmosphere corporate
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entrepreneurship actually offers that
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then creative people are restless they
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don't want to be at one place they don't
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want to do the same thing again and
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again they don't want to do they feel
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suffocated to do the same thing again or
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if there is a boundary no corporate
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entrepreneurship offers them open open
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atmosphere because there is nobody to
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keep an eye on them if you want a mentor
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the company will provide one if you want
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money they will provide you money you
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can if you want to just sit idle and
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think you are free to do that so this
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offers unique opportunity for creative
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talent to flourish from employee point
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of view the previous slide actually is
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from employees point of view this is
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just an extension so you are fully
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empowered you can think like an
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entrepreneur without much risk before
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because if you fail then you have the
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company where you are working you are
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getting the salary in any case and you
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will continue to get the salary in fact
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you can start all over again with a new
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idea then freedom to experiment within a
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larger organization so you can have
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access to their laboratory there are
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other
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infrastructure that is necessary your
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full autonomy resources everything is at
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your disposal and risk is absolutely
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minimal because you are not going to be
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fired if you fail what is there for the
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company they can foster creativity and
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innovation in product service and
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processes how so because when people are
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empowered to think in an open atmosphere
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they are going to develop new ideas your
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product development lifecycle is going
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to reduce like anything it's not
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necessary that they will do the same
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product develop the same product that
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you have been manufacturing but then
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there will be some kind of a with of a
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correlation or say similarity of your
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mission vision with the vision of the of
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these people so it may be in the same
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line or maybe you can exploit by by
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jointly developing and then jointly
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starting new ventures then you
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accelerate the product development pace
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pace of development improve customer
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value proposition meaning like there are
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examples like Procter & Gamble they they
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have reduced the product development
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time of time and then there they have
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been able to make new new product
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proposition where customers star stand
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to gain and then this is actually unique
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and and superior value proposition
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compared to their competitors because
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these products are new they are
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available at a lower cost and customers
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have every reason to buy create and
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maintain competitive advantage reduce
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attrition because these people who are
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creative people normally they don't want
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to stay at one place the moment you give
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them an open environment they will
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always remain there because they are
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free to think they'll never complain
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that this company cannot exploit my
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talent or I have to do something routine
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every day bring about new innovation and
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related or new field so that company can
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serve existing musk market or they can
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think of
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expanding into new market diversifying
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in a new market give birth to new
00:22:33
enterprises altogether because this this
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creative employees may start a new
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business the company may be partnered or
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the the the employees may very well sell
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the technology to the parent parent will
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have the right first right of refusal
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and then they will get access to the
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technology in fact many of the latest
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companies the successful companies today
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are exploiting this very issue meaning
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they are empowering employees to do
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research of their own and then then
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share the technology with them and they
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get lot of money or they get to become
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co-founders but then if you want to
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become and become a corporate
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entrepreneur what do you want what do
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you need you need creativity unit self
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motivation you cannot really unless
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you're motivated nobody is going to
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motivate here action-oriented and self
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driven you have to drive yourself
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proactive think independently flexible
00:23:30
willing to acts of failure as an option
00:23:33
and relentlessly persevere only then you
00:23:37
can be you are suitable for corporate
00:23:40
entrepreneurship Procter & Gamble
00:23:42
actually promoted future works where
00:23:45
people of Procter & Gamble is employees
00:23:49
of Procter & Gamble can come and and
00:23:51
think you know very think creatively and
00:23:56
then develop new product of their own or
00:23:58
it can be in line with the with the
00:24:01
product lines of Procter & Gamble
00:24:03
eventually Procter & Gamble has been
00:24:05
very successful in in cutting down
00:24:08
product development time and coming up
00:24:11
with a new new product that has
00:24:12
challenged the competitors and Procter &
00:24:17
Gamble from some point of distress have
00:24:22
become very very successful moving
00:24:24
forward mine dry in India is encouraging
00:24:28
employees to invest in the start of that
00:24:30
mandra group is is incubating and
00:24:33
accelerating so that employees can think
00:24:36
that they're part of startup culture
00:24:39
because most of the employees the thing
00:24:41
that they can also start a start
00:24:42
so rather than doing that they will feel
00:24:44
that we are creating an opportunity to
00:24:46
invest so and then they can mentor them
00:24:48
they can interact with them they can
00:24:49
promote them it's a win-win for
00:24:52
employees for Mahindra and for their
00:24:54
startups because miner also has sticks
00:24:57
in this company so if the value goes off
00:24:59
then mandala is winner employees are
00:25:01
winner they are also a nerd there are
00:25:03
many many examples particularly Google
00:25:05
is a wonderful example Google gives 20%
00:25:08
of your time to pursue something by
00:25:11
yourselves meaning that they give 20% of
00:25:14
the time and you do you will be given a
00:25:18
separate room or separate space and
00:25:23
sufficient money and infrastructure
00:25:25
including a mentor so you can spend 20%
00:25:29
of your time of the day thinking
00:25:31
whatever you would like to think and
00:25:33
developing whatever you would like to
00:25:35
develop at the end Google is going to
00:25:37
tell you that if you have developed
00:25:39
something you can sell it outside you
00:25:41
can sell it to Google you can jointly
00:25:44
start a company with Google whatever is
00:25:47
your interest Google is going to allow
00:25:50
you to do that there are many other
00:25:52
examples actually you can see that this
00:25:54
this is an example I have given you the
00:25:56
reference where I have got it you can
00:25:57
read them a little bit of details about
00:26:00
all of them how they are actually
00:26:02
facilitated in a very unique way and
00:26:05
this corporate entrepreneurship it's
00:26:08
it's really interesting reading another
00:26:12
aspect of entrepreneurship is innovation
00:26:14
innovation is all through I have been
00:26:15
talking about throughout my presentation
00:26:18
and Joseph Schumpeter is something like
00:26:23
father of this philosophy he coined the
00:26:26
term destructive creative destruction
00:26:29
meaning that you need to disrupt the
00:26:33
status quo with new technology new
00:26:36
knowledge only then you can survey we
00:26:39
can become a successful enterprise not
00:26:41
only that your country can actually
00:26:44
prosper better than any other country in
00:26:46
fact his idea or OHS at a global level
00:26:49
meaning that the countries in the world
00:26:51
should should strive or should so try
00:26:55
hard
00:26:56
to promote innovation that disrupt
00:26:58
existing businesses and any business
00:27:02
that you look around who are successful
00:27:03
and who are giving us world-class
00:27:06
technology world-class facilities they
00:27:08
are all they have all disrupted the
00:27:12
existing businesses to become successful
00:27:14
think of Amazon think of Google think of
00:27:18
Flickr think of any other companies who
00:27:20
are successful today think of his book
00:27:23
they have disrupted existing businesses
00:27:26
and they became successful and they have
00:27:28
provided something to us that we cannot
00:27:31
think of living without meaning we are
00:27:35
dependent on them and that is how they
00:27:36
have a wonderful business model and they
00:27:39
are going to remain successful as long
00:27:40
as they are ahead of competition
00:27:44
innovation for entrepreneurship its used
00:27:50
to develop solution to alleviate problem
00:27:52
problems persisting in a group of people
00:27:54
and then you have a business to create
00:27:57
differentiation suppose you are you are
00:27:59
thinking of a product and the product is
00:28:00
there in the marketplace how your
00:28:02
product is different
00:28:03
positively difference meaning this how
00:28:06
your product has some features that
00:28:09
other products do not have or some
00:28:11
features that has superior saved
00:28:14
capability or say efficacy compared to
00:28:17
the existing products that is or this
00:28:19
product differentiation and to create
00:28:21
differentiation you need innovation to
00:28:23
alleviate risk of various kinds suppose
00:28:26
some people have risk you try to
00:28:27
alleviate risk use factors of production
00:28:30
if wish efficiently to delineate
00:28:32
superior value propositions and in the
00:28:35
process innovate new business models now
00:28:43
Schumpeter as I said introduced the term
00:28:46
creative destruction as a way of
00:28:48
innovation and entrepreneurship it
00:28:51
greatly value entrepreneurs greatly
00:28:53
value self-reliance strive for
00:28:56
distinction through excellence are
00:28:59
highly optimistic otherwise nothing
00:29:01
would be undertaken always favor
00:29:03
challenges and take calculated risk so
00:29:07
innovation and
00:29:09
all of the other features of
00:29:11
entrepreneurship together max and
00:29:15
entrepreneur successful innovation
00:29:19
disrupt existing business model
00:29:21
introduced better product with superior
00:29:24
value proposition an example of that is
00:29:29
during the last 60 years about 88% of
00:29:32
Fortune 500 companies went outside the
00:29:36
list of fortune 500 companies there they
00:29:38
were
00:29:39
they dropped by on the west side why
00:29:42
because newer companies came with
00:29:44
disruptive technologies and they
00:29:46
disrupted the business those fortune 500
00:29:49
companies were the world's greatest
00:29:51
companies they either became bankrupt or
00:29:54
they become insignificant they're just
00:29:57
running somehow so this is possible only
00:30:00
through disruptive technology that's
00:30:02
what today's entrepreneurs are doing if
00:30:06
you join Facebook chances are that
00:30:09
Facebook will be giving you this red
00:30:13
little book they call it little red book
00:30:18
so every employees is given this book
00:30:21
and in one page this sentence is written
00:30:23
and that succinctly sent across this
00:30:27
message if you don't create the thing
00:30:29
that kills Facebook someone else well
00:30:32
meaning that as long as we will continue
00:30:35
to create technologies and knowledge
00:30:38
that can kill our own business nobody
00:30:41
else will be able to develop it before
00:30:43
them and we will implement that and
00:30:45
remain alive because that is that we
00:30:49
will remain ahead of competition this
00:30:51
precisely talks about competition that
00:30:54
competitors should not be allowed to
00:30:57
develop something which is better than
00:30:58
Facebook so that Facebook is not killed
00:31:01
and how you can obstruct them from
00:31:04
developing by developing it yourselves
00:31:07
read in another page the right embrace
00:31:11
change embracing changes it isn't enough
00:31:13
it has to be so hard word that it should
00:31:16
be natural it should be your second
00:31:18
nature that change we have to embrace
00:31:21
change into
00:31:22
it is not a friendly place things that
00:31:24
don't stay relevant don't even get the
00:31:27
luxury of living rains they simply
00:31:31
disappears so if you do something that
00:31:33
is yesterday's technology then there is
00:31:36
no relevance nobody will know nobody
00:31:38
will remember it will not exist at all
00:31:41
some references and this is the link
00:31:45
that I've mentioned about Stanford
00:31:48
University lecture series take some time
00:31:50
out and visit this website and listen to
00:31:53
some of the lectures this is their their
00:31:55
own wonderful many of my slides are made
00:31:57
with inspiration from these lectures so
00:32:03
thank you very much
