Entreprenuership

Meaning in French – entreprendre

Means “to Undertake”
 Definition
• Joseph Schumpeter
The entrepreneur in an advance economy is
an individual who introduces something
new in the economy – a method of
production not yet tested by experience in
the branch of manufacture concerned, a
product with which consumers are not yet
familiar, anew source of raw material or of
new markets and the like”
 Peter Drucker
“Innovation is the specific tool of entrepreneurs,
the means by which they exploit changes as an
opportunity for a different business or a different
service. It is capable of being learned and
practised.Entrepreneurs need to search
purposefully for the sources of innovation, the
changes and their symptoms that indicate
opportunities for successful innovation. And they
need to know and to apply the principles of
successful innovation.”
The new encyclopedia Britannica Defines
“an individual who bears the risk of operating a business in
the face of uncertainty about the future conditions.

In general An Entrepreneur today is

1. Initiative taking

2. organizing and reorganizing of social and economic

mechanisms to turn resources and situations to practical
account

3. acceptance of risk and failure

 Key Elements
•
Characteristics
 Creativity

Germination / Preparation / Incubation /

Recognition Rationalization Fantasizing

Illumination / Verification /
Realization Validation
• Innovation

• Dynamism (win-win ideology)

• Leadership

• Team Building

• Achievement Motivation

• Problem Solving

• Goal Oriented
 Myths of Entrepreneurship
• Entrepreneur are born not made
• Entrepreneurs are academic and social misfits
• All you need is money to be an Entrepreneur
• All you need is luck to be an Entrepreneur
• A great idea is the only ingredient in a recipe for
business
• My best friend will be a great business partner
• Having no boss is fun
• I can make lot of money
• I will definitely become successful
• Life will be much simpler if I work for myself
Entrepreneur
Vs.
Intrapreneur
 Intrapreneur
Intrapreneurs are individuals who
do not let their job descriptions be
used as a constraint to becoming a
change agent for the
organization.
 Causes
‘doing one’s own thing’

‘doing on one’s own terms’

‘want responsibility’

‘strong need for individual expression’

‘more freedom in organizational structure’

 Intrapreneurial Climate
• New ideas are encouraged

• Trial & Error encouraged – 15 % rule

• Tolerance for failure

• Resources available & accessible

(bootlegging resources)

• Training & education

• Multidiscipline teamwork approach

• Long time horizon

• Volunteer program

• Appropriate reward system

• Support of top management

 Benefits to Intrapreneurs
• No / Low search for funding

• Stable pay check as an idea germinates

• Have longer time horizons than venture capitalists have

• Allow people to speak their minds and proceed with their plans if they have sufficient
evidence and arguments

• Allow employees to take risks without fear of reprisals

• Have a formal process for moving an idea from research to product to market.

• Availability of market / consumers

• Leverage on existing business

• Infrastructure availability

• Management pool
 Entreprenuer vs Manager
• Entrepreneur involved in the start up of the
process
• A manager is running the business over a
long period of time.
• An Entrepreneur is involved in financial,
material risk, Psychological risks
• Manager does not have to bear risks
• An entrepreneur initiates changes
• A manager follows rules and procedures
• An Entreprenuer is his own boss
• A manager is the hired employees
• An Entreprenuer gets uncertain rewards
• A manager gets a fixed rewards.
Entrepreneurship
Vs
Entrepreneur
 Entrepreneurship
• Entrepreneurship is the practice of starting new
organizations, particularly new businesses
generally in response to identified opportunities.
Entrepreneurship is often a difficult undertaking,
as a majority of new businesses fail.
Entrepreneurial activities are substantially
different depending on the type of organization
that is being started. Entrepreneurship ranges in
scale from solo projects (even involving the
entrepreneur only part-time) to major
undertakings creating many job opportunities.
 Entrepreneur
• An entrepreneur (a loanword from French
introduced and first defined by an Irish economist
named Richard Cantillon) is a person who
undertakes and operates a new enterprise or
venture and assumes some accountability for the
inherent risks. Entrepreneurship is often difficult, as
many new ventures fail. In the context of the
creation of for-profit enterprises, entrepreneur is
often synonymous with founder.
Most commonly, the term entrepreneur applies to
someone who establishes a new entity to offer a
new or existing product or service into a new or
existing market, whether for profit or not-for-profit
outcome.
 Entrepreneurial culture
• Robert W. MacDonald
 11 Secrets to Building an
Entrepreneurial Culture
• 1: Build parallel interests.
• 2: Be an architect of the future.
• 3: Be decisive, multifaceted, and ethical to a fault.
• 4: Know the risk -- measure the reward.
• 5: Communication -- be a shower not a teller.
• 6: Power to the people.
• 7: Become a trust builder.
• 8: Sharing wealth increases wealth.
• 9: Be constant, consistent, and concise.
• 10: Treat important people like important people.
• 11: Do simple things -- simply do them.
 Entrepreneur Characteristics
Childhood Family Environment
• “My father was so consumed by the venture he
started and provide such a strong example, it
never occurred to me to go for anyone else”
• The environment is supportive and encourage
independence, achievement and responsibility
• The supportive relation ship of parents appears to
be most important especially father for most of
the female entrepreneur
 Entrepreneur Characteristics
Education
• The famous myth about entrepreneur
• Narendra Murukumbi
• Kiran Shaw Mujumdar
 Entrepreneur Characteristics
Personal Values
• Honesty and Ethics in business practice is
the very important aspect of personal
values to the Entrepreneur
• Entrepreneur do differ from manager on
some aspect of ethics.
• Reliance telecom
 Entrepreneur Characteristics
Age
• Most of the ventures initiated between 22
& 45
• Research Shows first significant venture
starts in the early 30s in case of Male and
mid 30s in case of women.
 Entrepreneur Characteristics
Work History
Frustration and boredom,
Lack of challenge
promotional opportunities is the best
motivation for future entrepreneur.
 Entrepreneur Characteristics
Motivation
The first and foremost is independence,
ones own boss
Reward/money- Second Place
job satisfaction, achievement
 Entrepreneur Characteristics
• Role models & support systems
Choice of role model
• Moral Support – spouse are the bigger
support, friends, family and relatives
• Professional Support – mentors (Experts
in various field)
 Role of Entrepreneurship in
Economic Development
• Serves as catalyst in the process of
industrialization and economic growth.
• Capital wealth
• Increase in per capita income
• Employment Generation
• Development of new products, services
and new businesses
• Improvement in living standards
• Backward Regional development
• Change in business structure and society
• Economic Independence/ Self Reliance
• Innovations.
• Promotes capital formation by mobilizing
the idle saving of the public.
• Promotes country’s export trade (very very
important factor in economic development
of the Country.)
Classification of Entrepreneurs
 Innovative Entrepreneurs
• Aggressive assemblage of information &
analysing.
• Aggressive in experimentation and cleverly put
attractive possibilities into practice.
• Sees opportunity for introducing a new
technique, new product or a new market.
• Raise money to launch an enterprise, assemble
the various factors and choose top executives
and set the organisation going.
• In a Developed country
 Imitative or Adoptive
• Imitative Entrepreneurs
• Characterised by imitating the innovative
entrepreneurs.
• They imitate the technology & techniques
innovated by others.
• They are important in underdeveloped
nations
• Transform the system with the limited
• resources available.
Face less risk and uncertainty.
• Organizer of factors of production than a
creator.
• He can set in chain reaction and lead to
cumulative progress
 Fabian Entrepreneurs
• Very cautious and skeptical while practicing any
change.
• Neither the will to introduce new changes nor the
desire to adopt new methods.
• Shy and lazy
• Don’t take risks, Follow predecessors.
• Determined by custom, religion, traditions and
past practices.
• They imitate only in situations when it becomes
absolutely necessary
 Drone Entrepreneurs
• Are laggards and operate in a traditional way.
• Conventional, may bear losses
• Refuse to change and adopt new
opportunities to make changes in production
methods.