ENTREPRENEURSHIP CATEGORIES

 Entrepreneurship Categories

                             It is not so easy to start bucketing entrepreneurship and its practice into various types or categories as there is no particular definitive classifications. But, for the sake of understanding the concept and patterns in development of entrepreneurship and its practices, I may consider four broad categories.

Entrepreneurship by chance:

                  Not all entrepreneurs started because of finding an innovative product or solution. In many situations, entrepreneurs are those who became enterprise-creators and job-creators merely because an opportunity was offered to them. No doubt this category of entrepreneurs displayed ability in taking risks, creating the enterprise and growing it, providing job opportunities, creating wealth. However, the entrepreneurship itself had as its starting point, a chance occurrence or something that came by, which the entrepreneur through cleverness exploited to his advantage.

Entrepreneurship by need:

In this growing economy, with lot of reasons, people may or may not find enough opportunities to work in large firms. when things go beyond, people often find new ways to make money, either to support themselves or supplement the income of their family. In these cases, an individual by strong survival need, start small-scale businesses to provide for that family. Many entrepreneurs in this category address the financial needs of self, family and possibly a few people around.

Entrepreneurship by choice:

In this case, it is the personal interest and passion of the entrepreneur that enables the identification of an opportunity and conjuring up a compelling idea to exploit it. A number of top firms and organizations in the world had their origins in hugely successful entrepreneurial ventures that was initially been created by passionate individuals who consciously choose the path of entrepreneurship. These companies represent entrepreneurship by choice.

Entrepreneurship by force:

In this category individuals fall in line with family business requirements. They are the entrepreneurs who are second generation owners of businesses. These situations reflect the cases where people are pushed into the practice of entrepreneurship by force, which means, without any deep personal interest in creating or growing a business by identifying opportunities.

Innovation and Entrepreneurship are the Weapons of Growth

 Innovation and Entrepreneurship are the Weapons of Growth 

I strongly believe that innovation and entrepreneurial activity are the weapons of long-run economic growth. The company Toys “R” Us strategy of establishing large warehouse-style toy stores and then engaging in heavy advertising and price discounting to sell the merchandise can be classified as an innovation because it was the first company to pursue this strategy. Similarly, the development of mass market online retailing by “amazon” can be seen as innovation. Innovation and entrepreneurial activity help increase economic activity by creating new products and markets that did not previously exist. Moreover, innovations in production and business processes lead to an increase in the productivity of labor and capital, which further boosts economic growth rates. 

Innovation is also seen as the product of entrepreneurial activity. Entrepreneurs first commercialize innovative new products and processes, and entrepreneurial activity provides much of the dynamism in an economy. For example, the U.S economy has benefited greatly from a high level of entrepreneurial activity, which has resulted in rapid innovation in products and process. Firms such as Google, Amazon, Facebook, Dell, Microsoft, Oracle and more.... were all founded by entrepreneurial individuals to exploit new technology. All these firms created significant economic value and boosted productivity by helping commercialize innovations in products and processes.  

So, if a country’s economy is to sustain long-run economic growth, the business environment must be conducive to the consistent production of product and process innovations and to entrepreneurial activity.

Basics of Foreign Direct Investment (FDI)

Basics of Foreign Direct Investment (FDI)

Foreign direct investment (FDI) occurs when a firm invests directly in facilities to produce or market a product in a foreign country. FDI occurs whenever an organization or affiliated group takes an interest of 10 percent or more in a foreign business entity. Once a firm undertakes FDI, it becomes a multinational enterprise. Walmart is the first multinational in the early 1990’s when it is invested in Mexico.

FDI takes on two main forms. The first is a greenfield investment, which involves the establishment of a new operation in a foreign country. The second involves acquiring or merging with an existing firm in the foreign country. Acquisitions can be a minority (where the foreign firm takes a 10 to 49 percent interest in the firm’s voting stock), majority (foreign interest of 50 to 99 percent), or full outright stake (foreign interest of 100 percent).

It is important to distinguish between the flow of FDI and the stock of FDI. The flow of FDI refers to the amount of FDI undertaken over a given time period. The stock of FDI refers to the total accumulated value of foreign owned assets at a given time. We also talk of outflows of FDI, meaning the flow of FDI out of a country, and inflows of FDI, the flow of FDI into a country. 

How To Get The Exact Position You Desire..!

How To Get The Exact Position You Desire..!

Everyone enjoys doing the kind of work for which he/she is best suited. An artist loves to work with paints, a craftsman with his hands, a writer loves to write. Those with less definite talents have their preferences for certain fields of business and industry.

1^st:

Decide exactly what kind of job you want. If the job doesn’t already exist, perhaps you can create it.

2^nd:

Choose the company, or individual for whom you wish to work.

3^rd:

Study your prospective employer, as to policies, personnel, and chances of advancement.

4^th:

By analysis of yourself, your talents and capabilities, figure “what you can offer” and plan ways and means of giving advantages, services, developments, ideas that you believe you can successfully deliver.

5^th:

Forget about “a job.” Forget whether or not there is an opening. Forget the usual routine of “have you got a job for me?” Concentrate on what you can give.

6^th:

Once you have your plan in mind, put it on paper in neat form or arrange with an experienced writer to put it on paper and in full detail.

7^th:

Present it to the proper person with authority and he/she will do the rest. Every company is looking for a person who can give something of value, whether it be ideas, services, or connections. Every company has room for the person who has a definite plan of action which is to the advantage of that company.

         This line of procedure may take a few days or weeks of extra time, but the difference in income, in advancement and in gaining recognition will save years of hard work at small pay.

The size of your success is measured by the strength of your “desire.”

Money and a Balanced Life

Money and a Balanced Life

One day a man came up to me and said, “I am broke. But that’s all right. I do not like money. It is the root of all evil.” Those dialogues represent the thinking of a confused, neurotic mind. Loving money to the exclusion of everything else will cause your power or authority wisely. Some people crave power, others crave money.

                

                  If you set your heart on money exclusively and say, “Money is all I want; I am going to give all my attention to amassing money; nothing else matters,” you can get money and gain a fortune, but at what cost! You have forgotten that you are here to lead a balanced life. You must also satisfy the hunger for peace of mind, harmony, love, joy and perfect health.

                           

By making money your sole aim, you made a wrong choice. You thought that was all you wanted, but you found after all your efforts that it was not only the money you needed. No one on his deathbed wishes he had spent more time making money! You also desire true expression of your hidden talents, true place in life, beauty and the joy of contributing to the welfare and success of others. By alerting and knowing the laws of your subconscious mind, you could have crores or many, if you wanted them, and still have peace of mind, harmony, perfect health and perfect expression.

Types Of Startups

Types of Start-up's

Any start-up in its early stage faces the twin challenges of optimizing money and time. All product-based start-ups spend money upfront to build an asset, which they monetize later. Therefore, the engineering cost of the product needs to be kept in check and hence, the need for finer scope control. Risk capital management is the model required here.

A service-based start-up starts making money at a much earlier stage and is more about working capital management than risk capital management.

The operating model for any start-up at its early stages is a blend of these models, at least till it finds its bearings in the market.

The Future Of Progress

When we think about the future, we hope for a future of progress. That progress can take one of two forms. One is “Horizontal or Extensive progress” means copying things that work. Horizontal progress is going from 1 to n and is easy to imagine because we already know how and what it looks like. Another is “Vertical or Intensive progress” means doing new things. Vertical progress is going from 0 to 1 and is harder to imagine because it requires doing something nobody else has ever done.

If you take one exist business plan and implement it as same, then you have made horizontal progress. If you take one business plan and do some changes in strategy and plan to extend business, then you have made vertical progress.

At the macro level, the single word for horizontal progress is “Globalization” means taking things that work somewhere and making them work everywhere. The single word for vertical progress is “Technology”. The rapid progress of information technology in recent decades has made silicon valley the capital of technology. But there is no reason why technology should be limited to computers. In my point of view, any new and better way of doing things is technology. Because globalization and technology are different modes of progress, it’s possible to have both, either, or neither at the same time.

Special Status Tweets On 26th January

The Facts That Everyone Should Feel & Understand

Important Facts:

There is an end to everyone's life….But nobody want to die.

Everyone needs food….But nobody want to do agriculture.

Everyone requires water….But no one tries to help and keep it pure.

Everyone wants milk….But no one is interested in doing dairy.

Everyone looks for shadiness to protect them….But none of them do plantation or grow plants.

Everyone wants wife, daughter-in-law….But nobody want a girl child....-Rajiv

The Article On Corruption

Corruption is a complex social problem that affects all societies. India is no exception. It is no longer considered a soft state as political scientists once used to call it. It has now become a kleptocracy, a consideration state, where everything to be had can be had for a consideration. Here, it is said, obvious does not happen.

For example, if a person wants a government job, he/she has to pay lakhs of rupees to the higher officials irrespective of satisfying the eligibility criteria. In every government office one has either to give money to the employee concerned or arrange for some sources to get work done. There is adulteration and duplicate weighing of products in food and civil supplies department by unscrupulous workers who cheat the consumers by playing with the health and lives of innocent people. In the assessment of property tax one has to pay bribes even if the house is built as per rules and regulations. Political corruption is one worst part in India. A newly elected independent MLA is offered crores of rupees as well as ministership for supporting the ruling party. Today, corruption has taken the shape of such as common menace that people do not mind giving bribe even for getting a lawful work done.

Corruption among public (common people)

Corruption among public has always existed in one form or the other although its shape, dimensions, textures and shades have been changing from time to time and place to place. At one time, bribe was paid for getting wrong things done but now the bribe is paid for getting right things done at the right time.

The term “corruption” has wide connotations, the following patterns of behavior among public can be described as “corrupt” within the provisions of law.

•         i.            Acceptance of gratification as reward for work done in an official capacity.
•       ii.            Obtaining any object or pecuniary advantage illegally.
•     iii.            Fraudulent misappropriation of public property.
•     iv.            Being in possession of financial resources or property disproportionate to one’s known sources of income.
•       v.            Misuse or abuse of official position.
•     vi.         Borrowing money for purchasing a costly article from a person with whom one has official dealings with a known understanding that the borrowed money will not be returned.
•   vii.            Accepting gifts by persons of position from persons with whom they have positional relations.
• viii.            Disregard of neglect of rules purposely to help the citizen in avoiding dues/tax/duty due to be paid to government.
•     ix.            Refusal to do a duty on some plea which may benefit the other party (e.g., Police officer not registering a case to protect a criminal).

                  

Extensive corruption in government departments/ ministries has almost become a tradition. There are at least five ministries in the union government which are regarded as gold mines for making money. These are defense, railways, petroleum, power and communication. The annual budget of these ministries runs in billions. While commissions between 15 and 40 percent are not uncommon in defense purchases, the import of oil and natural gas also yields a big kickback. Recently, we have also seen the examples of communication (2G spectrum) and railways ministries where scandals involving lakhs of crores of rupees were broken out. In both the case, the concerned ministers were found to be involved. While the 2G scam amounts to about Rs 1,76,000 crore, in the railway scam the minister’s nephew was alleged of accepting Rs 90 lakh from a railway board member for promoting him as member. It is mention that the member has huge financial powers being responsible for around 35 percent of total spending, amounting to about Rs 2500 crore of railways total budget.

                                

Four other departments where corruption is rampant are public works, police, excise and revenue. The public works department gets a huge portion of budget and plan provision for civil engineering works like construction of buildings, maintenance of roads, digging drains, construction of dams, and so on. Corruption in this department prevails from top to bottom at all stages like selection, purchase of materials, execution of work, payment of bills and settlement of disputes. It is said that out of the total cost sanctioned for the project, about 70% is invested in the work, 20% on contractor’s profit and 10% goes into various officers pockets.

              

The police department is said to be the most corrupt department where bribes are taken by constables upward to high status officers. What surprising is that the police takes money from both accused and the complainants. The power enjoyed by the police are so wide that they can accuse, arrest and harass even an honest person. Cases of beating the poor people on small pretexts and taking away all the money in their pockets, accepting money from truck drivers, taking ‘hafta’ (weekly fixed amount) from shopkeepers are very common cases of corruption.  

                                     -Rajiv