Assignment Entrepreneurship


The following are some of the differences between a manager and an entrepreneur. Conversely it’s mandatory for a manager to be educated in the fields of management theories and practices.What are the differences between manager and entrepreneur? Ans. · An entrepreneur and a manager differ in their objectives. The terms Entrepreneur and Manager are considered one and the same. But the two terms have different meanings. risk-bearing ability etc. He implements the entrepreneur’s plans and ideas. an entrepreneur is the owner of the organization and he bears all the risk and uncertainties involved in running an organization where as a manager is an employee and does not accept any risk. forethought. Entrepreneur’s objective is to innovate and create and he acts as a change agent where as a manager’s objective is to supervise and create routines.Q.1. · An entrepreneur deals with faults and failures as a part of learning experience where as a manager make every effort to avoid mistakes and he postpones failure. · The main reason for an entrepreneur to start a business enterprise is because he comprehends the venture for his individual satisfaction and has personal stake in it where as a manager provides his services in an enterprise established by someone. innovative thinking. A manager may cheat by not working hard because his income is not tied up to the performance of the organization. · An entrepreneur is faced with more income uncertainties as his income is contingent on the performance of the firm where as a manager’s compensation is less dependent on the performance of the organization. · An entrepreneur is not induced to involve in fraudulent behavior where as a manger does. . · An entrepreneur and a manager differ in their standing. · Entrepreneur is required to have certain qualifications and qualities like high accomplishment motive.

(iv) Entrepreneurs undertake managerial activities as part of their work. There may be many qualities needed to successfully run an enterprise. However.“An entrepreneur could be a manager but a manager cannot be an entrepreneur”. ideas and approach to trouble shooting which can be invaluable. Qualities of a Successful Entrepreneur Let us now think about the qualities of a successful entrepreneur. the following qualities are considered important.Explain functions of entrepreneurs in executing while embarking his/her journey. Entrepreneur: It can be defined as(i) Entrepreneurship is viewed as a function involving identification and use of opportunities which exist in the market.2. They bring fresh perspectives. . A manager cannot replace an entrepreneur in spite of performing the allotted duties because a manager has to work as per the guidelines laid down by the entrepreneur. On the downside. (v) An entrepreneur constantly strives for excellence in his/her field of work. He may employ a manager in order to perform some of his functions such as setting objectives. which make a typical ‘manager’ a part owner. rules etc. (iii) Entrepreneurship involves creative and innovative action. Q. Ans. typical manager brings professionalism into working of an organization. (ii) Entrepreneurs bear risks in converting the ideas into action and pursuing opportunities. policies. An entrepreneur is intensely dedicated to develop business through constant innovation. Lately there has been convergence of the entrepreneur and the manager in certain sectors like software. An employee is being given highly valuable stock options.

However. An entrepreneur. He should be able to initiate action and take advantage of opportunity. it should not be repeated as that will lead to heavy losses. once an error is committed. In other words it is not necessary that every business shall earn profit. initiative on the part of entrepreneur is a must. Once you miss the opportunity it will not come again. It implies that a businessman may be successful or unsuccessful. This is an essential quality of a successful entrepreneur. enthusiasm and the ability to lead. opportunities come and go. therefore. (iii) Ability to learn from experience An entrepreneur may commit mistakes. So.(i) Initiative In the world of business. A person who lacks confidence can neither do any work himself nor can inspire others to work. an entrepreneur always volunteers to take risks to run a business and be successful. This is necessary for success in every walk of life. A successful entrepreneur must have selfconfidence. sometimes you become so much interested is reading a story or a novel that you do not sleep unless you complete it. However. For example. one should have confidence in himself or herself. An entrepreneur has to be a man of action. . Self-confidence is reflected in courage. This deters individuals to take up business. one should learn from his mistakes. This kind of interest in the work comes through motivation. (ii) Willingness to assume risk In any business there is an element of risk. should have the ability to learn from experience. (iv) Motivation Motivation is key to success. (v) Self-confidence For achieving success in life. Once you get motivated to do something you will not rest unless you complete it. Therefore.

If an entrepreneur does not have the ability to take timely decision. Thus. orientation towards hard work is the secret of success of an entrepreneur.(vi) Orientation towards hard work There is no substitute for hard work in life. one problem or the other may arise. iii) Feasibility study – The entrepreneur conducts studies to assess the market feasibility of the proposed product or services. Further steps are taken to achieve the goals in the light of the information collected. These opportunities are not realized by common man. He cannot afford to say that now office time is over and I will not work. but an entrepreneur senses the opportunities faster than others do. has to keep his eyes and ears open and require imagination. (vi) Decision making ability In running an enterprise. ii) Turning ideas into action – An entrepreneur should be capable of turning his ideas into reality. This requires hard work on the part of entrepreneur. An entrepreneur therefore. products. Functions an entrepreneur: i) Identifying entrepreneurial opportunity – There are many opportunities in the world of business. everyday. the entrepreneur has to take a number of decisions. cost and sources of inputs required . education. he might miss opportunity and incur loss. In some situations he may even have to work for the whole night. etc. practices to suit the demand in the market.. In the present world things move very fast. which are constantly changing. While running a business. quality. He anticipates problems and assesses quantity. He should therefore be capable of taking suitable and timely decision. These are based on human needs like food. creativity and innovativeness. fashion. In other words he must take right decision at the right time. The businessman has to be vigilant about it and solve it as early as possible. He collects information regarding the ideas.

Q. after ensuring appropriate returns (profits) of the investment. when large entities spin-off organizations. in recent years. finance and organize production of goods and services. He also tries to find out a suitable location. finance and business acumen in an effort to transform innovations into economic goods". the term has been extended to include social and political forms of entrepreneurial activity. Only a properly managed organization yields desired results. the entrepreneur has to explore another higher goal for its proper growth and development. This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. machine. iv) Resourcing – The entrepreneur needs various resources in terms of money. He has to manage men. Entrepreneurial activities are substantially different depending on the type of organization and creativity involved. vi) Managing the enterprise – One of the important function of an entrepreneur is to run the enterprise.How will you classify entrepreneurship? Ans. vii) Growth and Development – Once the enterprise achieves its desired run the enterprise. material. and men to running the enterprise successfully. Entrepreneurship is the act of being an entrepreneur. design the premises. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major . install machinery and do many other things. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing. He has to market each product and service. The entrepreneur is not satisfied only with achieving a set goal but constantly strives for achieving excellence. which can be defined as "one who undertakes innovations. The most obvious form of entrepreneurship is that of starting new businesses (referred as Startup Company). material. v) Setting up of the Enterprise – For setting up an enterprise the entrepreneur may need to fulfill some legal formalities. however.3. Such a blue print of all the activities is termed as a ‘business plan’ or a ‘project report’. An essential function of an entrepreneur is to ensure the availability of all these resources.

We can classify entrepreneurship into following categories:- . Angel investors generally seek annualized returns of 20-30% and more. Many "high value" entrepreneurial ventures seek venture capital or angel funding (seed money) in order to raise capital to build the business. as well as extensive involvement in the business.undertakings creating many job opportunities.

quality control etc. Tata families) •Agricultural entrepreneur: Production and marketing of agricultural inputs and outputs (Dairy. new product development etc (textile. •Non technical entrepreneur: Develops marketing. deal with both manufacturing and trading aspect of business (Small trading and manufacturing business) •Trading entrepreneur: Undertakes trading activities. etc) •Corporate entrepreneur: Interested in management part of organisation. concerned with marketing (Domestic and international level) •Industrial entrepreneur: Undertakes manufacturing activities only. coordinating skills to manage a corporate undertaking (Ambani. electronics. forestry) Use of Technology : •Technical entrepreneur: Production oriented. horticulture. distribution . possesses innovative skills in manufacturing.Types of Entrepreneurs : Classification on the basis of: • Type of business • Use of Technology •Motivation •Growth • Stages in Development Type of business : •Business entrepreneur: Convert ideas into reality. exceptional organising.

benefits offered by government for entrepreneurs motivates him. Brimming with ideas to start new venture Motivation : •Pure entrepreneur: Psychological and economic rewards motivate him. •First generation entrepreneur: Innovator. initiative. which can adapt to change and dynamic market. is a positive thinker. steep and upward growth curve Stages in Development. among the firsts in family to enter business. . •Super growth entrepreneur: One who enters a business and shows a quick. concessions.facilities and strategies •Professional entrepreneur: Uses the proceeds from sale of one business to start another one. •Modern entrepreneur: Who considers feasibility of business. risk taker. •Spontaneous entrepreneur: Born entrepreneurs with inborn traits of confidence. •Motivated entrepreneur: Sense of achievement and fulfillment motivate him. •Classical entrepreneur: One who gives more importance to consistent returns than to growth. Growth: •Growth entrepreneur: One who enters a sector with a high growth rate. •Induced entrepreneur: Incentives. concerned about customer and marketing needs. vision.

state of being.Small and Large scale entrepreneur Q. or it may include specific needs such as eating and resting. or it may be attributed to less-apparent reasons such as altruism. Motivation concepts Intrinsic and extrinsic motivation Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself.Explain all motivational theories regarding entrepreneurship? Ans. goal. and exists within the individual rather than relying on any external pressure. morality. According to various theories. Motivation is the driving force which help causes us to achieve goals. motivation may be rooted in a basic need to minimize physical pain and maximize pleasure. motivation should not be confused with either volition or optimism.Others : •Area. The term is generally used for humans but it can also be used to describe the causes for animal behavior as well. ideal. selfishness. or avoiding mortality. Motivation is said to be intrinsic or extrinsic. Extrinsic motivation comes from outside of the individual. or a desired object.Rural and Urban entrepreneur •Gender/Age. Common extrinsic motivations are rewards like money and grades. Conceptually. .Men and Women entrepreneur •Scale.4. coercion and threat of punishment. This article refers to human motivation.

Theories of Motivation Needs theories • • Maslow’s hierarchy of needs Herzberg’s two factor theory Process theories • Expectancy Theory • Goal Setting Theory Need hierarchy theory: Abraham Maslow's theory is one of the most widely discussed theories of motivation. The theory can be summarized as follows: • Human beings have wants and desires which influence their behavior. Only unsatisfied needs influence behavior. . satisfied needs do not.

humanness and psychological health a person will show.) Safety/Security/Shelter/Health Belongingness/Love/Friendship Self-esteem/Recognition/Achievement Self actualization . they are arranged in order of importance. thirst. from the basic to the complex. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. listed from basic (lowest-earliest) to most complex (highestlatest) are as follows: • • • • • Physiology (hunger. sleep. etc. The needs.• • • Since needs are many. the more individuality. The further the progress up the hierarchy.

g. but absence can cause health deterioration.g. but.a.k. intrinsic/extrinsic motivation. but "respect for me as a person" is one of the top motivating factors at any stage of life. He distinguished between: • • Motivators. salary and fringe benefits) that do not motivate if present. recognition. like hygiene. result in demotivation. they don't lead to dissatisfaction but no satisfaction.[7] The factors that motivate people can change over their lifetime. a. The theory is sometimes called the "Motivator-Hygiene Theory" and/or "The Dual Structure Theory. job security. and Hygiene factors.Herzberg's two-factor theory: Frederick Herzberg's two-factor theory. status." . challenging work. the presence will not make you healthier. (e. The name Hygiene factors is used because. (e. concludes that certain factors in the workplace result in job satisfaction. but if absent. responsibility) which give positive satisfaction. if absent.

difficulty and specificity. Effort-Performance relationship = Expectancy 2. not too hard or too easy to complete. This explains why some children are more motivated to learn how to ride a bike than to master algebra. Most children have no idea how much effort they need to reach that goal Expectancy Theory: Individual Effort 1 Individual Performan ce 2 Organisati onal Rewards 3 1. this end state is a reward in itself.Cognitive theories: Goal-setting theory: Goal-setting theory is based on the notion that individuals sometimes have a drive to reach a clearly defined end state. Performance-Rewards relationship = Instrumentality 3. Often. A goal should be moderate. most people are not optimally motivated. The goal should be objectively defined and intelligible for the individual. At the same time people want to feel that there is a substantial probability that they will succeed. Specificity concerns the description of the goal in their class. A goal's efficiency is affected by three features: proximity. Rewards-Personal goals relationship = Valence Personal Goals . In both cases. as many want a challenge (which assumes some kind of insecurity of success). A classic example of a poorly specified goal is to get the highest possible grade. An ideal goal should present a situation where the time between the initiation of behavior and the end state is close.

. believing that innovating and seizing market opportunities are appropriate behaviors to deal with problems of survival and prosperity. Ability is distinct from capacity. environmental uncertainty.Q. defined narrowly in terms of attitudes and norms alone. . Successful regions also have particular formal institutions and informal networks that reinforce (through positive feedback and virtuous cycles) and maintain positive externalities for firms over time – such as the aforementioned innovative coalitions and entrepreneurial networks. including valuing creativity and tolerance of creative people. Culture. however. whereas the latter merely measures a locale's potential to produce start-ups. An Entrepreneurial Culture (EC) is a system of shared values. is not sufficient. and competitors’ threats.What are the rules that you will consider while maintaining entrepreneurial culture? Ans. and reflects the institutional and absorptive capacity of the region to respond to economic opportunity. as the former denotes the resulting new business creation. and expecting organizational members to behave accordingly. Entrepreneurial culture is measured by survey and interview data gauging perceptions of local entrepreneurs and community stakeholders in this regard. Entrepreneurial culture is defined by the norms and behaviors present in the region toward economic activity. 5. beliefs and norms of members of an organization. particularly new business start-ups.

Most successful entrepreneurs also create a business plan. too. because women often start businesses in the service sector where.000 a start up typically needs. are chained to their present employers by ‘golden handcuffs’ or are too complacent to feel a need to do truly first rate or important work. OR Give all the environmental factors creating negativity.6. Why do entrepreneurs fail? The most common reason is ‘lack of a viable concept’. Some banks. particularly if the would be entrepreneur needs to borrow capital. banks make less money on the smaller loans.Elements of Entrepreneurial Culture: • • • • • • • • People and empowerment focused Value creation through innovation and change Attention to the basics Hands-on management Doing the right thing Freedom to grow and to fail Commitment and personal responsibility Emphasis on the future Q. Recognizing a need and having an idea of how to fill it are rarely a strong enough basis for launching a new venture. there is the difficulty of finding the $25. Then. Sometimes it is hard to attract the people with the best information because they already have good jobs. though. Even a lack of technical skills can be a problem. Another common problem is a lack of market knowledge. Women borrowed also complain about discrimination especially among venture capitalists. Before they can write a business plan. Ans. a formal document that contains a statement of purpose. a description of the products or services to be offered a market analysis. Capital is even harder for women to come by. entrepreneurs must be aware of the barriers entry. a start up costs are lower.Explain all the barriers during the growth of an enterprise. seeing the growing number of women owned business as a potential .000 to $100. financial projections and some management procedures designed to attain the firm’s goals.

twelve common barriers to entrepreneurs can be listed. In all. Bank of America and Harris Trust are among the banks with such programs.lucrative market have risen the demand and set up special loan programs for women and minorities with existing businesses. A certain number of entrepreneurs fail after start up because they lack general business know how. Some would be entrepreneurs are deterred from entering certain lines of work – for example. . housecleaning by what they see as a social stigma.

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