Chapter 1

Introduction to Entrepreneurship

Learning objectives

To understand the importance of entrepreneurship To study the concepts of entrepreneurship To understand the meaning of entrepreneur To identify the characteristics of an entrepreneur To know the importance of an entrepreneur

Learning objectives

To understand entrepreneurial behavior, attributes and skills To study the various types of entrepreneur To identify the various stages in entrepreneurial process To understand the role of entrepreneurs in economic development To study the various problems faced by entrepreneurs

Entrepreneurship

The process of creating an enterprise is called entrepreneurship. Entrepreneurship is the propensity of mind to calculate risks with confidence to achieve a pre-determined business or industrial objectives It is an exercise involving innovation and creativity that leads towards establishing his/her enterprise Entrepreneurship can be defined as a process of action an entrepreneur undertakes to establish his enterprise.

Entrepreneur

An Entrepreneur is a person who organizes and manages a business undertaking and assumes risk for the sake of profit Entrepreneur is a person who creates an enterprise The process of creation is called Entrepreneurship . The word Entrepreneur is derived from the French verb enterprendre, which means to undertake In Encyclopedia Britannica, Entrepreneur is defined as An individual who bears the risk of operating a business in the face of uncertainty about the future conditions.

Characteristics of an Entrepreneur

Creativity Innovation Dynamism Leadership Team building Achievement motivation Problem solving ability Goal orientation Risk taking and decision making ability commitment

Types of Entrepreneurs

Entrepreneurs are classified according to the following characteristics

Functional characteristics Types of Entrepreneurial business Based on their personalities

Functional characteristics

Innovative entrepreneur Imitative or adoptive entrepreneur Fabian entrepreneur Drone entrepreneur

Entrepreneurs based on the types of business

Entrepreneurs who are in the manufacturing sector produce goods and market them through various innovative ways Entrepreneurs who supply products to various middle men are called distributors Entrepreneurs who sell products directly to the people who use or consume them are called retailers Entrepreneurs who does service to the customers are called service providers.

Entrepreneurial behaviors

Grasping opportunity Taking initiative Solving problems creatively Managing autonomously Taking responsibility for, and ownership of things Seeing things through Networking effectively to manage interdependence Putting things together creatively Using judgment to take calculated risk

Entrepreneurial attributes

Achievement orientation and ambition Self confidence and self esteem Perseverance High internal locus of control Action orientation Preference for learning by doing Hard working Determination Creativity

Entrepreneurial skills

Creative problem- solving Persuading Negotiating Selling Proposing Holistically managing business/ projects/situations Strategic thinking Initiative decision making under certainty Networking

Entrepreneur process

They see opportunities where others dont They have a vision, a clear understanding of the concept and of what they are trying to do They persuade others of their vision; they can communicate the concept effectively They gather resources to make their vision a reality They organize these resources to create a new venture, product or market (leadership, teams). They constantly change/ adapt themselves according to the changing demands of the market.

Intrapreneur

Intrapreneur is the person who focuses on innovation and creativity and who transforms a dream or an idea into a profitable venture, by operating within the organizational environment Intrapreneurs are inside Entrepreneurs who follow the goal of the organization Intrapreneurship is the practice of using entrepreneurial skills without taking on the risks or accountability associated with entrepreneurial activities.