3. LOCUS OF CONTROL
Locus of control is an extent to which individuals believe
that they can control events that affect them.
4. • Individuals with a high internal locus of control believe that events in
their life derive primarily from their own actions;
• for example, if a person with an internal locus of control does not
perform as well as they wanted to on a test, they would blame it on
lack of preparedness on their part.
• If they performed well on a test, they would attribute this to ability to
study.
• If a person with a high external locus of control does poorly on a test,
they might attribute this to the difficulty of the test questions.
• If they performed well on a test, they might think the teacher was
lenient or that they were lucky
5. Do you think someone else is
pulling your strings?
6. “ I do not believe in destiny – the word “fail” does not
exist in my dictionary. I never fail, because I never
stopped trying. I life, you get what you negotiate. Any
women has the capacity to do what I did- it does not
matter what you want, what matters is how badly you
want it.” - Shahnaz Hussain
The emotional driving force behind the self-employed
person is a desire for greater control over his or her life,
career, and destiny.
7. Checklist for Feelings about Control
1. Do you think it is important for everyone to like you?
2. Do you believe that you can stop yourself from catching a cold?
3. Are some people just born lucky?
4. My plans hardly ever work out, so planning makes me unhappy.
5. Do you know that if you decide to do something, you will do it and
nothing can stop you.
6. I do not have enough control over the direction my life is taking.
7. People's misfortunes result from the mistakes they make
8. When I get up in front of a group, myself-control flies out the window
9. Do you believe that when bad things are going to happen, they just are
going to happen no matter what you try to do to stop them?
10. Even though it is scary to try something new, are you kind who tries it?
8. • Answer YES to the questions 2, 5,7 & 10
indicates that you possess the internal control
aspect of being an entrepreneur
• Answer YES to the questions 1,3,4,6,8 & 9
indicates that you are more geared towards
external controls, which may inhibit your
entrepreneurial tendencies.
9. Risk - Taking
The risk of walking away from secure career path to create
something new.
The risk of taking yourself and your family into an unfamiliar storm
of stress and uncertainty.
The risk that you've miscalculated an opportunity, or your own
internal resources as you plunge into a new venture
“In this business, by the time you realize you're in trouble,
it's too late to save yourself. Unless you're running scared all
the time, you're gone” - Bill Gates
10. A common misperception about entrepreneurs is that
entrepreneurs are wild risk-takers.
Entrepreneurs do take risks, but only calculated ones.
Those who are afraid to take risks, live a very conservative
life, and retire not much better off than when they began.
Those who take bad risks and suffer the consequences.
Those who plan well, take calculated risks, and win.
“The person who risks nothing, does nothing, has nothing, is
nothing and becomes nothing. He may avoid suffering and
sorrow but he simply cannot learn and feel and change and
grow and love and live” - Leo. F. Buscaglia
11. Need for Independence
Being one’s own boss
An entrepreneur must be able to work and think
independently
He doesn't need to be told what and when to do.
He possess the self-discipline and independence to
reach conclusions on his own and act on them.
12. Checklist for feeling about
Independence
1. I hate to go for shopping alone
2. If my friends won’t go to a movie I want to see, I will
go alone
3. I am afraid to be different
4. I often need to ask other peoples opinion before I
decide on important things
5. I never tend to copy when my teacher is not around
6. I can finish my work perfectly without any deadline
13. Answer YES to the questions 1,3 & 4 indicates
that you do not have strong need for
Independence
Answer YES to the questions 2,5 & 6 indicates
that you have in you a strong need for
Independence.
14. Need for Achievement
McClelland says that People motivated by achievement
• The capacity to set high but obtainable goals
• They are not gamblers. The prefer to work on the problem
rather than leave the outcome to chance
• They get bigger “kick” out of winning or solving a difficult
problem than they get from any money or praise they receive.
• They desire for job – relevant feedback ( How am I doing? )
rather than for attitudinal feedback (How well do you like
me?)
15. • Challenge of originality - A good entrepreneur feels the
incentive to offer a new service/product that no one else
has offered before. That’s the same challenge an artist
feels on every new canvas, or every musician feels when
composing a new work.
• High level of excitement - Entrepreneurs love the
continuous challenges of a start-up, and the satisfaction
of solving them. Some are so high on this life, that they
hate the fact that they have to "waste" part of their life
in sleep!
16. Leader by Example
• They not only lead themselves through self- motivation but
they are also skilled at leading others.
• They know the importance of teamwork and they
understand the need to appreciate others, support them
and reward them accordingly.
Grateful
• Being grateful for what we have opens us to receive more
Passionate about learning
• They are quick to learn from their mistakes.
17. Beat the competition and discover yourself
• Competition drives innovation, and innovation drives
competition. The cycle never stops.
• But the best part is that ultimately entrepreneurship
isn’t a race against others but an opportunity to discover
one’s potential
• Video – Parthasarathy of Mind Tree
19. Childhood Family Environment
• Birth Order - Firstborn effect
Personality traits that are common in first-borns:
• Confident
• Born Leader
• Organized
• Eager to Please
• Likes to Avoid Trouble
20. Did you know...
• That almost all of the U.S. Presidents
were either the first-born child or the
first-born son in their families?
21. • Parents Occupations – Self employed or
entrepreneurial parents
“ My father was so consumed by the
venture he started and provided such a
strong example, it never occurred to me
to go to work for anyone else”.
22. • Relationship with parents – Parents of entrepreneurs need to
be supportive and encourage independence, achievement
and responsibility.
• This supportive relationship of the parents (Particularly the
father) appears to be the most important for female
entrepreneurs.
• They tend to grow up in middle-to upper- class
environments, where families are likely to be child centered
and tend to be similar to their fathers in personality.
23. Education
• Although a formal education is not necessary for starting a
new business – as is reflected in the success of such high
school dropouts as Henry Ford, Dhirubhai Ambani – it does
provide a good background, particularly when it is related to
the field of the venture.
• The ability to communicate clearly with both the written and
the spoken word is important in any entrepreneurial activity.
• http://smiileyfacexo.hubpages.com/question/179350/is-it-a-good-idea-to-drop-
out-of-university-to-focus-on-being-an-entrepreneur
24. Age
• Entrepreneurial age is the age of the entrepreneur reflected
in the experience. Entrepreneurial experience is one of the
best predictors of success.
• In chronological age, most entrepreneurs start their careers
between ages 22 and 55.
• Earlier starts in an entrepreneurial career seem to be better
than later ones.
• Generally, male entrepreneurs start their first venture in
their early 30s, while women tend to do so in their middle
30s
25. Work History
• Dissatisfaction with one's job often motivates the launching of a new
venture.
• Previous technical and industry experience is also important once the
decision to start a business is made.
• Experience in the following areas is particularly important: financing;
product or service development; manufacturing; development of
distribution channels; and preparation of a marketing plan.
• As the venture becomes established, managerial experience and skills
become more important.
• Entrepreneurial experience becomes increasingly important as the
complexity of the venture increases
26. Motivation
• What causes an entrepreneur to take all risk and launch
a new venture?
• Solving a problem you are so passionate about that
even if the solution doesn’t result in wealth, you are
still thrilled you “solved” it. A fun surprise? If you
really do solve a big problem, wealth will almost always
follow anyway.
27. “ I’ll be the first to admit that money was often a
motivator for me. However, it was never the primary
motivator. I did not lay awake at night thinking about
money. I laid awake at night thinking about my
customers, my employees, and – most importantly – how
to make my product or service that much better. I
wanted everyone to try my product or service, and I
wanted them to love it as I did.”
- Richard Branson.
28. Role Models
According to a recent survey by AskMen, Who do today's
men look up to as role models? it's entrepreneurs!
Out of over 2,000 surveyed men, more then a third (35%)
identified famous entrepreneurs as their role models.
The article explains the trend with two main things: men
consider wealth and freedom key to happiness.
Entrepreneurship can offer both, especially if you succeed.
Men's eagerness to start companies has been trending
upward since 2001.
30. Support Systems
• Moral- support network – Individuals who give psychological support
to an entrepreneur.
• Professional – Support Network – Individuals who help the
entrepreneur in business activities.
• In addition to encouragement, the entrepreneur needs advice and
counsel throughout the establishment of the new venture.
• This can be obtained from mentor, Trade associations, experts such
as consultants, accountants, Lawyers, etc.
• Affiliations developed with individuals through shared hobbies,
clubs, school alumni are excellent source of referrals.
31. Women Entrepreneurship in India
Earlier there were 3 Ks
• Kitchen
• Kids
• Knitting
Then came 3 Ps
• Powder
• Pappad
• Pickles
At present there are 3 Es
• Electronics
• Energy
• Engineering
33. Sulajja Firodia Motwani –
joint MD of Kinetic Motor
Neelam Dhawan head of
Microsoft’s Indian operations
34. • Sulajja Firodia Motwani - joint MD of Kinetic Motor, which
manufactures two-wheelers, various auto components,
elevators, escalators and auto parking systems.
• Neelam Dhawan - head of Microsoft’s Indian operations.
• Kiran Mazumdar Shaw - Biocon.
• Priya Paul - president of the Hotel Association of India and leads
the Indian team at the World Travel and Tourism Council
• Preetha Reddy – Apollo hospitals
• Shobana Bhartia (of the famous Birla family) – The Vice
President of Hindustan Times
• Jyoti Naik - President of Lijjat Papad
35. Male Vs Female
Entrepreneurs
Characteristics Male Entrepreneurs Female Entrepreneurs
Departure Point Drive to control their own
destiny
Change in Personal circumstances,
Job frustration
Sources of funds Bank financing, Loan from
friends, Family, etc…
Personal assets and savings
Back ground Age : 25-35 Age: 35-45
Support Groups Lawyers , accountants,
consultants and Business
associations
Spouses, Close friends, Women’s
professional group
Type of Business Manufacturing , high-
technology fields
Service related- educational
services, consulting
Personal
Characteristics
Energetic, Goal-oriented
and independent
Energetic, Goal-oriented and
independent
Men are more confident and less flexible and tolerant than
women
36. Minority Entrepreneurship
• Minority - Numerically smaller than the rest of population
• Types - Racial or ethnic, Religious, gender (Transgender),
Age ( Children and Senior citizens – Economically non-active group),
People with disabilities.
• Of U.S. business, 5.8% were owned by Hispanic Americans, 4.4% by
Asian Americans, 4% by African Americans and about 1% by American
Indians.
• This 15.8% minority share of U.S. Business is an increase from 6.8%
share in 1982, 9.3% in 1987, 12.5% in 1992 and 14.6% share in 1997.
37. IN INDIA
• Entrepreneurial traditions in India finds its root in
the trading practices within Vaishya families
• Aggarwals and Guptas in the north, Chettiars and
Nadars in the south, Parsees, Gujarathees, Jains,
Muslim Khojas and Menons in the West.
• It is belived that children from such communities
are taught the tricks of the trade and business since
their childhood.
38. • Different ethnic groups seem to have a very different
bargaining strategy in terms of the final prices they agree upon
and prices they offer as the starting point of the negotiation
• Andhra Wholesalers ask for 10% higher upfront payment and
Marwari's 5% lesser upfront payment when compared to
Tamilians
Ethnic groups Average Price they offer
Tamilians 4.50
Andhrites 4.72
Marwaries 3.96
39. Kalki: India's first transgender entrepreneur
http://www.rediff.com/getahead/slide-show/slide-show-1-achievers-meet-kalki-
india-s-first-transgender-entrepreneur/20121030.htm
41. Entrepreneurs Vs Inventors
• An inventor develops a new product or service, but may not bring it to
market.
• An entrepreneur takes the risk of bringing together resources to bring
a good or service to market in hopes of making a profit. The
entrepreneur may not have been the inventor
• Inventors really enjoy the process of inventing and not implementing.
• He measures his achievement by the number of inventions developed
and the number of patents granted.
• The only ideas that were interesting to him were the ones that he could
commercialize. - Thomas Edison
• http://www.econedlink.org/lessons/index.php?lid=62&type=student
42. • Entrepreneur need to define his market, sell,
collect, figure out how to scale the production,
hire, manage people, fire people, and so on.
• Inventors aren’t interested or aren’t very good
at building a business, and entrepreneurs
aren’t usually good scientists. These people
need to find each other, and can jointly make a
great team for a new start-up.
43. • Who invented the airplane?
• Did they start an airline for consumers?
• Who invented potato chips?
• Who brought them to market in other places?
44. Activity
Soda-Pop
• Who was the inventor of soda ?
• Was he the inventor of Coca Cola?
• Was John Pemberton the one who brought it to market as
Coca Cola ?
(Browse through Coca Cola history by clicking on the "Heritage
Timeline
• On May 8, 1886, a pharmacist named Dr. John Pemberton carried a jug of
Coca-Cola® syrup to Jacobs’ Pharmacy in downtown Atlanta, where it was
mixed with carbonated water and sold for five cents a glass
