Sethu Sethunarayanan

1. Explain in exposit what theories and inventions you l craped in class are helpful to understand the oddb every. The gaffe discusses an enterpriser named Sethu Sethunarayanan, who invented and marketed an innovative limit to help vile Irula pack (an Indian folk) puzzle divulges to a greater extent(prenominal) efficiently. He is the founder of the Center for organic evolution of Disadvantaged People (CDDP) ace of a few recognized non-profit organizations in India. The case is an physical exertion how technological origin and human race detonator shadow be utilize to improve the life for the poor.This scum bag- limit enterprisership was a well-disposed entrepreneurship beca phthisis the inventor practiced the resources to cater to the call for of poor heap. Prior to the innovation of the naked golf hole, Irula colonyrs require to use their mouths and their hands to thumb the bunss directly their health was severely bear upon when touching the rats . afterward talking to a rat- commenceers wife, Sethu realized that there was a problem and with the instinct of an entrepreneur, he k mod-sprung(prenominal)-sprung(prenominal) that there would be an opport social unity for him to make the problem and improve the lives of Irula bulk.With the help of a machinistal engineer, Sethu developed a new restrict to help mint catch rats without contacting directly to the rats and the hot area of the jam. The set created from this innovation were a better health and a better income for rat-catchers. A concept test was implemented to fifteen rat catchers to see whether it worked. This was an important process to order whether the entrepreneur gather uped to revise his innovation. After six iterations in eight months, the trap met just about of the plight of the rat catchers. Sethu hence applied for the grant from the founding margin to commercialize the innovation.It was a good weft of raising fund since affable entreprene urships usually do non attract numerous investors (because the aim is not for profit simply for a better life of stack). Sethu excessively syllabusned various processes for the implementation of the project. Firstly, he identified the market which consisted of 1,500 neediest villagers and communicated the benefits of the new trap directly to this segment by tour their villages. Secondly, Sethu created more values for customers by creating the womens microcredit capital, which operated wish loans and en equald women to fall in a trap.These bullion helped bring the traps to more villagers. Thirdly, he chose the estimable mess to take care of the achievement. Since the unfledged and unmarried women were selected to be the workers, the men and the boys were unploughed for catching the rats. Finally, he already model of the exit strategy when the demand for the traps decreased. In much(prenominal) a location, the pulverisation would bring up some other(a) steel pro ducts that were useful for Irula people. 2. What were signifi offert factors that determined advantage or ill? The success of the rat trap entrepreneurship was contri simplyed by numerous factors.Firstly, it was due to the human capital Irula people. Although Irula young women were illiterate, they were able to produce the traps by themselves after being instructed. Selecting these women to operate the pulverisation was a wise strategy because it do Irula people feel proud of their tribe. These workers ability to a fault persuade and instruct their relatives and neighbors to use the traps. As a result, the customer source for the business would be en whoppingd. Secondly, the technology innovation was also an important factor. It was the simplicity of the trap that made it usable for Irula people, 99% of whom were illiterate.Sethu and the mechanic engineer spent eight months inventing and test the trap before it met all the needs of the rat catchers. If the trap was more comp lex, Irula people could not use it and the entrepreneurship would mystify a failure. Thirdly, the $98,500 grant from the World Bank served as the source for Sethu to implement his business plan. The plan included many costly processes such as health checks and handlings for the beneficiaries, building factory, prep employees, and production. Without the fund of the World Bank pose the stern, Sethu qualification not be able to start the business.Lastly, Sethu seemed to be the first one who addressed the problem in how Irula people catch rats, so he had the first-mover advantage. In addition, it was not likely that other fond entrepreneurs would come and compete with Sethu in the set about future. Hence, the Irulas did not have other choices besides use Sethus new traps if they treasured to change the direction to catch rats. 3. What characteristics of the entrepreneur enabled their success? Sethu had many characteristics of an likingl social entrepreneur. Among those char acteristics, the thing distinguishing him from others may be his headache for the community.Being inspired by Mahatma Gandhi the Father of the Nation, Sethu unceasingly thought of ways to bring a better life for the poor in India. This is probably the rea countersign why he realized the problem of the old way of catching rats of the Irulas and did not stop intending of a solution. In addition, Sethu obtained an appropriate discipline and experience in doing social entrepreneurship. Sethu lavvass in Gandhis school in India, where he was instructed to use Gandhis rule to improve lives for the poor, solve human conflicts and discover new ideas.After graduation, he worked for an nongovernmental organization to stash away experience before establishing his own NGO in 1998. His education and experience were the foundation for his innovativeness, which contributed to the invention of the rat trap. Finally, the most rattling factor leading to the success of the entrepreneurship was Sethus risk-pickings attitude. What would happen if the trap failed when applying to a large extend point though it was triple-crown in the concept test or if the Irula refused to use the trap anyway?In such a situation, Sethu would lose all the costs in health checking and treatment for the rat catchers, building the factory, training the employees and so on. More importantly, his prestige would be adversely affected since he was awarded the grant from the World Bank but failed to use it effectively. disdain all these risks, he still keep with the business because he believed in his idea and in the Irulas. 4. What were problems encountered by the entrepreneur and how did the entrepreneur deal with the problems? How did the entrepreneur overcome the problems?When implementing the project, Sethu did brass instrument both(prenominal) problems. Firstly, it was the resistance from the Irula people. They refused to meet Sethu and CDDP volunteers because they think Sethu and the volunteers were from some politic parties. Knowing that Irula people treasured to involve and did not like free things, Sethu triggered their interest by plan of attack them psycheally, explaining the serious health problems with the old trap and asking them whether they wanted to change their lives. The flash problem was the selection of the workers for the factories.Because the men and the boys needed to catch rats while the wives and the old women were taking cooking roles in families, Sethu chose young, unmarried women to be the workers. He even transferred the ownership of the factory to these women so that they felt more motivated to control the production. The third problem was that Irula people were not be able to afford the trap at $25. CDDP solved this problem by launching the womens microcredit collectives. In particular, a group of 12-15 women contributed currency to course of study a fund.When a woman wanted to buy a trap but could only(prenominal) afford 50% p ayment, she authorized the trap and paid the rest to the microcredit fund. much(prenominal) a fund made the traps become more affordable for the Irulas. Perhaps the most serious problem was that the business did not bring profit, at least in the recent future. The production cost per unit was $27 ($22 for raw veridicals and $5 for labor) but the selling wrong was only $25. To deal with this problem, Sethu used bootstrapping as the support method acting for the entrepreneurship when he tried to pull through unnecessary costs. For example, he asked the Irulas to return the trap if they did not use it.In addition, Sethus son successfully negotiated with the supplier to lower the material cost (from $28 to $25) and the cost savings was then reinvested in the factory. 5. Given the companionship and skills you acquired in class, would you have done anything differently and if yes, what? There may be some alternatives to deal with the mentioned problems. Firstly, we bay window us e the military force of the influential group to persuade the Irulas to use the trap. By identifying some influential people, for example the tribal chief, in a village and convincing them to use the new trap, we back end spread the benefits of the new trap to other villagers faster.It is because the Irula people still live with tribe culture, they result likely to follow what the tribal chief does. Secondly, instead of selling the traps to the Irulas people, we tidy sum employ them as our employees and pay them salaries. The salaries go away have one fixed batch and one variable portion found on the number of rats a person can catch. We will receive cash from the farm owners and distribute to the catchers. By employing the Irulas as our employees, we solve the problem that some Irula people wish to use but do not afford the new trap.What is more, when putt them in a company and considering them as our employees, we also help educate them and chasten their illiteracy. 6. Wh at would be the next steps you would take to successfully proceed? To continue the success of the entrepreneurship, firstly, we must find ways to master money because no business can maintain forever without profit. Initially, the selling price was at $25, which was $3 lower than the production cost. We can continue working with the supplier (the steel maker company, in this case it was Tata Steel) or even change to other suppliers to further reduce the cost.On the other hand, we could reserve new completing products/ run to earn profits and help offset the losings in the rat-trap product line. Notice that the new trap helped catch rat 95% power and helped doubled or even tripled their incomes, the Irula people would earn more money to spend for their living expenses. For instance, we could provide maintaining services for the traps and charge a certain aim of money, depending on the current economic situation of the rat catchers. Or it might also sell hand sanitizers for the Ir ula people to swear out their hands after using the trap.When the Irulas income increased, these complementary products were likely to be purchased widely because the Irula people cared more about their health. In addition, we can work with the owners of the farms to increase the payoffs for Irula people. The old method of catching rats is extremely inefficient, affects the plants on the handle and causes pollution. We will approach the farmers explain to them the efficiency and the benefits of the new trap, and convince them to employ rat catchers who use the new traps. Lastly, a more efficient trap can be produced.The current new trap can only catch one rat at one time, which is very inefficient. We can apply new technology to catch many rats at one time. For example, rats are affected by certain electromagnetic loops. By putting some wave generators at the fields, the rats are hurt and will come out of their burrows. Then the Irulas might catch the rats more easily. Because th e costs for such systems might be high, we will need to obtain a certain train of profits before trying the new technology. Furthermore, we can also seek funds from external sources.