CHAPTER 1

OVERVIEW OF ENTREPRENEURSHIP
 TOPIC COVERED
• Entrepreneurship
• Definition of Entrepreneur
• The Entrepreneurial decision process
• Role of Entrepreneurship In economic
development
• Intrapreneurship
• Ethics and social responsibility of
Entrepreneurship
 Entrepreneur
• Derived from french which means “between
takers” or “Go Between” or “to undertake”.
• Are individual who takes risk and starts
something new.
 Entrepreneur
• In Early ages, Entrepreneurs are Traders.
• In Middle ages, Entrepreneurs are Project
Managers.
• In 17th Century, Entrepreneurs are Contractors
• In 18th Century, Entrepreneurs are Businessman
• In 19th Century, Entrepreneurs are Risk Takers
• In 19th and 20th century, entrepreneur is an
individual developing something unique.
 Entrepreneur
• Entrepreneurship is a process of
– Designing
– Launching
– Running
 Definition of Entrepreneur
• Entrepreneurship is the process of creating
new with value by devoting the necessary
time and effort, assuming the accompanying
financial, psychic and social risks and receiving
the resulting rewards of monetary and
personal satisfaction and independence.
 Entrepreneurial Decision Process
• Entrepreneurial Decision Process is deciding to
become and entrepreneur by leaving present
activity.
• Decisions for a potential Entrepreneur
– Change from present lifestyle
– Desirability of New Venture Formation
– Possibility of new venture formation
 Change from present lifestyle
• Decision to leave a career or lifestyle is not an easy job.
• Lifestyle forms are formed due to following reason.
1. New ideas are not accepted by the present employee.
2. Familiar with the market and customer unfulfilled wants
and needs
3. Employee is relocated to the place where s/he does not
want to move.
4. Dissatisfied with the present job or employer.
5. Get frustrated due to timely promotion and incentives.
6. Employee gets higher degree and is not recognized by
the employer and does not recognized by the employee.
 Desirability of New Venture Formation

• Perception that starting a new venture is

desirable results from an individual’s culture,
subculture, family, teachers and peers.
• No culture is totally for or against
entrepreneurship.
• Encouragement to form a new venture comes
from above factors.
Possibility of new venture formation
• Although desire to start new venture is derived from
culture, subculture, family, teacher and peers, there
are other factors that is necessary to consider for the
possibility of new venture formation.
• The factors like government, transportation, road
access, communication system, utilities and economic
stability are second factors that makes possible for the
new venture formation.
• Other factors like role model, market knowledge and
risk associated with the new venture etc.
• Role model encourages the entrepreneur to start the
new venture. If he can why not I can do it.
 Types of Start-ups
• Lifestyle Form
• Foundation Company
• High potential venture
• Gazelles
 Lifestyle Form
• A small venture that supports the owners and
usually does not grow.
• They are small firms that s/he starts for
fulfillment of needs and wants of specific
place.
• There forms have nearly 30 to 40 employees
and turnover is nearly 2 million.
 Foundation Company
• A type of company formed from research and
development that usually does not go public.
• These company has 40 to 400 employees and
turnover of up to 20 million.
 High potential venture
• A venture that has high growth potential and
therefore receives great investors interest.
• These company grows in 5 to 10 years and
employees more than 500 employees and
turnover of up to 30 million.
• These are the high potential ventures that
goes public for the capital formation.
• These companies are integral part of the
economic development of the area.
 Gazelles
• Very high growth ventures.
• Is also a type of high potential venture that
grows at very high speed and becomes one of
the key to the economic and infrastructure
development of the region.
Role of Entrepreneurship in economic
development
• Entrepreneur not only increases the per capita
income of the people but also helps in
development of the country.
• They contribute in economic development of the
country.
• Single entrepreneur, who develops and runs
business helps to increase the income of the
individual which in turn changes the life style of
the people as well as increase the demand in the
market.
Role of Entrepreneurship in economic
development cont….
• Product evolution process
Iterative synthesis
Ordinary innovations
Technological innovations
Breakthrough innovations
Government as an innovator
Technology transfer
 Intrapreneurship
• Development of Entrepreneurship from within
the Venture with the knowledge of the need
for new product in the market that fulfills the
unfulfilled demands of the Customer causes
the emergence of Intrapreneurship.
 Ethics and Social Responsibility of
Entrepreneurship
• Business ethics (also corporate ethics) is a form of applied
ethics or professional ethics that examines ethical
principles and moral or ethical problems that arise in a
business environment.
• Social responsibility is an ethical ideology or theory that an
entity, be it an organization or individual, has an obligation
to act to benefit society at large.
• Social responsibility is a duty every individual or
organization has to perform so as to maintain a balance
between the economy and the ecosystem.
•
 Ethics and Social Responsibility of
Entrepreneurship cont….
• Ethics and social responsibility are very important
values in entrepreneurship ventures. This is
particularly essential in decision making process.
Ethical conscience reminds entrepreneurs to
make trustworthy and profitable
entrepreneurship decisions.
• Likewise, the social responsibility component
sought entrepreneurs to make entrepreneurial
decisions that can enhance benefits and repelling
harms to the stakeholders.