I want ppt of entrepreneurship in globalizing economy

ppt of entrepreneurship in globalising economy

Globalisation of economies is generally attributed to the policies of economic liberalisation, deregulation and privatisation adopted by governments in various countries. However, the Information Technology revolution and the global business opportunities created by innovative entrepreneurs using the capabilities of the new technology, have also had an important role to play in the process of globalisation. Further, the relationship between globalisation and new technology-based entrepreneurship is mutual. In India too, several aspects of entrepreneurial activity have been influenced by globalisation, effecting changes in the nature of businesses, the type and level of technology, the profile of the Indian entrepreneur, sources of finance, location and nature of customers, partners and suppliers, the legal structure, organisation and HR practices, operational and growth strategies, and so on.In the context of these wide-ranging changes, IIMB Management Review invited practitioners and academics to discuss issues relating to venture creation in a globalising economy in its Round Table Discussion on Entrepreneurship in a Globalising Economy.Dr Parameshwar P Iyer, former Associate Chairman, Centre for Scientific and Industrial Consultancy (CSIC), and currently Faculty at the Department of Management Studies, Indian Institute of Science (IISc), Bangalore, described the exigencies of academic-industry collaboration, between the ‘odd couple’ of scientist and manager with their different expectations, backgrounds and agendas; the changing nature of the R&D and technology transfer needs of small and medium enterprises (SMEs); and the page link between innovation and entrepreneurship. Set up to promote IISc-industry interaction for research-based consultancy projects, CSIC found that its commercial consultancy mode with fixed definition of scope, time and cost, was unequal to the increasingly new types of collaboration proposals that were coming from the industry which proposed loose forms of interaction, with no hard-and-fast deliverables and with a hands-on approach to the ownership and commercialisation of IP. With the establishment of the Society for Innovation Development (SID), collaboration has now taken the new paths of exchange of faculty between the industry and the Institute, hybrid forms of contract research and research partnerships, faculty entrepreneurship, incubation and entrepreneurship training and innovation. SMEs have moved up the value chain, beyond their earlier requirements for testing, evaluation and diagnostics, and certification to R&D-based requests, product innovation, process design and development, and systems design. They are more aware of intellectual property and licensing issues, of secrecy and confidential disclosure, exports and global markets and there is a definite trend towards knowledge based entrepreneurship in SMEs as opposed to the earlier physical resources based model. At the management level, focus, mastery of the field, passion for one's work and fiscal and ethical integrity emerged as crucial to the success of innovative ventures, in a survey conducted among successful corporate heads. From the organisational point of view, innovation was strongly correlated to processes, relationship building, the commitment of people and their extent of 'belongingness'.What lies at the heart of entrepreneurship, stressed Prof K Ramachandran of the Entrepreneurship Area, Indian School of Business, Hyderabad, is the attractiveness of the opportunity. Customer dissatisfaction is the source of entrepreneurial opportunity. Prof Ramachandran used the customer discontent-need criticality matrix indicating the two major dimensions of dissatisfaction to cull out the opportunities for entrepreneurship and also explained, using the conventional value chain how each of the processes can yield an entrepreneurial opportunity. The key capabilities of global entrepreneurship are the ability to think big and constantly synthesise emerging knowledge, opportunity spotting, the passion to build the organisation continuously – where mentoring plays a critical role, and a dynamic resource mix.According to N Raghunandan, CEO, Indium Software (India), the key to globalising lies in understanding and defining the market space, which entrepreneurs must define not round a technology or an unfulfilled need or a skill, but in a fairly large manner which would redefine their skill sets more strategically. They must be able to globalise their local success and in this process, focus on market clusters that have a critical unfulfilled need. When venturing into foreign soil entrepreneurs must have a clear understanding of the policies and practices of that particular government and enter into the right kind of collaborative mechanism that is necessary. The importance of understanding the market was emphasised in the discussion that followed, and it was felt that entrepreneurs, particularly technology entrepreneurs, did not seem to understand that an innovative product or idea in itself does not guarantee a market.The venture capital (VC) industry in India is in the nascent stage, Samir Kumar, Managing Director, Inventus Capital Partners, pointed out, and it is only in the last six or seven years that there has been real venture capital as opposed to institutional capital, in the sense that people from an operating background have entered the field. The number of private equity venture capital investments in the country and their value have been going up steadily which indicates increased entrepreneurial activity but the emphasis is still on established companies rather than on start-ups. VCs look for big financial returns when they fund ventures and the most important considerations for VC funding are — the quality of the entrepreneurial team, exit opportunities, the market opportunity and a unique value proposition. VCs require visible exit opportunities as their funds have a pre-determined life at the end of which the fund must pack up and return its money to its investors. Very often entrepreneurs do not understand this. VCs would ideally like to address large global markets or at least mature markets, with not too many existing players and where the entrepreneur has a unique value proposition to offer. Entrepreneurs looking for VC funding should build relationships, often through networking forums, and must have a cohesive team with complementary skills.Successful people who want to give back to society a part of what they have earned often do it through angel investment or by helping in venture creation. However, as Ms Anjana Vivek, Consultant, Nadathur Holdings and Investments pointed out, entrepreneurs must do their homework with due diligence and choose the right angel with a view not just to raising money but bearing in mind factors such as the track record and reputation of the angel, ability to contribute to growth and value creation, networks and links of the angel and the long-term impact of the investment especially on the ability of the enterprise to raise additional funds for the next stage of growth. At the pre-investment stage, the environment must facilitate the availability and the visibility of a pool of money so that entrepreneurs can select a suitable angel, as one would a bank. Many entrepreneurs need hand holding in the post-investment stage, where, apart from money, other skills are required and entrepreneurs need the help of professional advisors and mentors. The third stage is the exit stage, where an equity investor typically gets in and the angel investor would like to get out. The ecosystem for exit still presents a problem in India. The mechanism by which exits can happen at different levels of growth in an enterprise, with multiple layers of investors, is still to evolve. However angel investing is now taking some shape in India with high networth individuals and groups coming together to create an environment to foster and enable such investment. Such initiatives are in their early days and one hopes that they will bear fruit.Questions were raised in the discussion as to the facilitation of the general environment towards cultivating an entrepreneurial mindset and whether it was possible to get a broad-based entrepreneurship movement in a society like India that was not tolerant of failure. Other associated issues discussed included what makes for a successful entrepreneurial model, efforts at entrepreneurship education, how the industry can promote entrepreneurship, the scope for social venture funding in India, the use of technology in the marketing of products manufactured by micro-level enterprises, the risk-sharing willingness of VCs which would transform them from ‘vulture’ capitalists to true partners, and whether ‘angel’ investors were truly altruistic.