INVENTING REINVENTING ORGANIZATIONS BY PUNEET KUMAR Entrepreneurship Small

INVENTING & REINVENTING ORGANIZATIONS BY: PUNEET KUMAR

Entrepreneurship �Small Business refers to Businesses locally owned and managed , often with very few employees working at a single location. �Entrepreneurship is originating of new business venture and an organization for that new venture. �Originator of that new business venture is known as Entrepreneur. �Function of entrepreneurs is the ability to take the factors of production like land, labor and capital and use them to produce new goods or services.

Cont…. �Entrepreneurship is different from Management. �Entrepreneurship involves initiating changes in production whereas management involves ongoing coordination of the production processes. �Importance of Entrepreneurship– Business founded by individuals intend to change the environment of a given industry by introduction of either a new product or a new production process.

Benefits of Entrepreneurship �Economic Growth – New firms provide employment to many people thus improving the economy. �Productivity – Two keys to higher productivity is research and development and investment in new plant and machinery. �New technologies, products and services – Many people who developed new technologies, products and services being employees of large organizations that refused to use these new inventions, forcing the inventors to become entrepreneurs. �Marketplace change – Entrepreneurs stir lot of competition in the marketplace.

Characteristics of Entrepreneurs �Psychological factors – - Need achievement – High - Tolerance for risks – Moderate - Locus of control – Proper control on their lives. - Tolerance for ambiguity – Entrepreneurs are doing many things for first time and face more ambiguity.

Reinventing Organizations �Once organizations are up and running , it is important that managers pay attention to renewing the relationships that make an organization. �This is managerial practice dealing with reinventing existing organizations. Best known term is Intrapreneurship. �INTRAPRENEURSHIP – Practice of beginning and developing new business ventures within structure of an existing organization.