ENTREPRENEURIAL

SKILLS
Entrepreneurship

 Starting a business by using the resources available to a person.

 An entrepreneur needs a society to establish a business.
Role and Importance of Entrepreneurship
 IN WEALTH CREATION:
 Entrepreneurship is beneficial for the society in terms of wealth creation for the entrepreneur and the
people involved. As a result, the economy of the local area improves and develops.
 While establishing a business, entrepreneurs invest their resources and attract capital from investors,
lenders, and the public. It results in the flow of public wealth and allows people to benefit from the
success of entrepreneurs and growing businesses.
 This pooled capital is the necessity of economic development. It furnishes progress with a tremendous
amount of goods and services and improves the growth of social welfare.

 ADDS TO NATIONAL INCOME:

 New and improved products, services, and technology from entrepreneurs enable to develop new
markets and create new wealth
 Increased employment and higher earnings contribute to better national income in the form of higher
tax revenue and consequently higher government spending.
 This revenue can be used by the government to invest in human capital and other struggling sectors.
 CREATES EMPLOYMENT OPPORTUNITIES:
 Entrepreneurs are not job seekers but job creators. They facilitate new business opportunities of
employment for the people.
 The job creation by new and existing businesses is one of the primary goals of economic development
 Example: Boom of IT companies benefited many other sectors.
 Businesses in associated industries, like call centre operations, network maintenance companies, and hardware
providers flourished.
 Education and training institutes nurtured a new class of IT workers, who were offered better, and high-paying
jobs.
 Infrastructure development organisations and real estate companies capitalised on this growth as workers
migrated to employment hubs seeking better opportunities.

 LEADS TO A BALANCED REGIONAL DEVELOPMENT:

 When entrepreneurs set up new businesses and industrial units in less developed and backward areas,
they help in regional development.
 The growth of industries and businesses in these areas leads to infrastructure improvements, such as
better roads and rail links, airports, regular electricity and water supply, schools, hospitals, shopping
malls etc.
 New business in a less developed area will create both direct and indirect jobs. The combined spending
of all the new employees and the supporting roles in other business add to the local and regional
economic development.
 CREATES SOCIAL CHANGE:
 Through their unique offering of new goods and services, entrepreneurs indirectly help in reducing
dependence on obsolete systems and technologies.
 This results in an improved quality of life and greater economic freedom.
 Example: The water supply in a water-scarce region might force people to keep away from their work in
order to collect water. This will impact their income. Now, an invention of a low-cost, flow-based pump
that can fill their water containers automatically will enable people to focus on their jobs without
worrying about a basic necessity like water.
 COMMUNITY DEVELOPMENT:
 Entrepreneurs also invest in community projects and provide financial support to local charities.
 Famous entrepreneurs like Bill Gates, Azim H Premji, Shiv Nadar, G.M. Rao, Ratan Tata, and others have
used their money to finance good causes, such as education and public health.
 These entrepreneurs use their skills and resources to engage in community development
 THE ROLE OF GOVERNMENT:
 Government regulations play a significant role in promoting entrepreneurship.
 A government regulated balanced approach to nurturing entrepreneurship can result in a positive
impact on the economy.
 IMPROVES THE STANDARD OF LIVING:
 Entrepreneurs play a key role in increasing the standard of living in a community.
 They do this by developing and adopting new ideas that lead to improvements in the quality of life of
their employees, customers, and other stakeholders in the community.
 SOME EMINENT ENTREPRENEURS

Thomas Edison: Walt Disney: Co- Ted Turner: Bill Gates: Founder Steve Jobs: Co-
Prolific inventor founder of The Walt Founder of CNN of Microsoft founder of Apple Inc.
Disney Company Corporation

Dhirubhai Ambani: Ratan N Tata: Narayana Murthy: Azim H Premji: Lakshmi Mittal:
Founder of Reliance Chairman of Tata Sons Founder of Infosys Chairman of Wipro Chairman and CEO of
industries and Group of
Limited Arcelor Mittal
Companies
QUALITIES OF A SUCCESSFUL ENTREPRENEUR

 Entrepreneurs are often seen as visionaries and risk-takers who take well-
calculated risks.
 They are adaptable and agile and can adjust their objectives according to the
changing markets.

The two important personality traits that entrepreneurs possess are

perception and intuition.
Apart from these, there are some other qualities that are generally associated
with successful entrepreneurs.
PASSION
Entrepreneurs are not motivated by profit alone. Building a business takes a lot
of time and effort.
 The entrepreneurs love what they do, and this acts as their biggest
motivation to put in all their efforts into their business venture.
 They are not afraid of hard work. They are focused on their dreams and are
willing to put in extra hours to make the business succeed.
 The successful entrepreneur will always be reading, researching, and looking
for ways to make the business better.
 They do not give up when they face any challenge, rather accept it in a
positive way.
MOTIVATION
 Entrepreneurs are dedicated to their work.
 They do not depend on a manager or colleague to push them toward their
goals.
 Their drive comes from within and helps them motivate others.
 Entrepreneurs have the skill to communicate their dream, and inspire others
to join them on their journey to achieve it.
According to Simon Sinek, a well- known motivational speaker, "If your actions
inspire others to dream more, learn more, do more, and become more, you are a
leader“.
OPTIMISM
 Optimism is hoping or believing that good things will happen in the future.
 Entrepreneurs are optimistic about the future and are always looking ahead.
 Successful entrepreneurs want to excel in their business. Once they are at the
top, they want to go further.

VISION
 To be a successful entrepreneur, you must be goal-oriented.
 Successful entrepreneurs have a vision that they share with others.
 Their team understands what their goal is, why they do it, and what their role
is on their path to success.
 However, it is not enough to just set goals. You must make a plan and
persevere to reach those goals.
CREATIVITY
 Entrepreneurs see the world differently and think outside the box.
 Businesses are built on big ideas, and those big ideas arise from creativity-a way of thinking that
differs from the rest.
 Entrepreneurs are always looking for new and better ways of doing things.
 They often come up with various solutions to a single problem.

SELF-STARTER
 Entrepreneurs are aware that if something needs to be done, they need to do it themselves.
 They set the parameters to achieve their objectives.
 They are proactive in their work and approach.

OPEN-MINDED
 Entrepreneurs realise that every event and situation is a business opportunity.
 Ideas are continuously generated about workflows, efficiency, people skills, and potential new
business.
 They can look at everything around them and reshape it into a path that leads them towards their
goal
RISK-TAKER
 Risk-taking is a crucial part of starting a new business.
 If you are afraid to take the leap, you will never get anywhere.
 Entrepreneurs do not let uncertainty and potential failure stop them from trying.
 Instead, they look at challenges and risks as opportunities.

CONFIDENCE
 Successful entrepreneurs do not doubt their success.
 They show confidence in their business ideas and believe that their efforts will surely bear
results.

DETERMINATION
 Successful entrepreneurs believe that all things are possible.
 Failures do not stop them. Instead, they look at defeat as an opportunity for success.

COMPETITIVE
 Successful entrepreneurs are fiercely competitive by nature and utilise opportunities to
establish a service that is better than the rest.
 They are in a constant rut to maintain the track record of success of their company.
STRONG PEOPLE SKILLS
 Successful entrepreneurs have strong communication skills.
 Good people skills also include problem-solving abilities, empathy for others, and a willingness
to work together towards the common welfare.
 Successful entrepreneurs motivate their employees and ensure maximum productivity.
 They are very good at highlighting the benefits of their business and launching their products.

DISCIPLINED
 Successful entrepreneurs eliminate any distraction that might stop them from achieving their
goals.
 They plan strategies and outline tactics to accomplish them. They have a disciplined approach
to their work and take steps every day towards the achievement of their objectives.

STRONG WORK ETHICS

 The successful entrepreneurs display strong ethical qualities at their workplace. They are a role
model for work ethics and inspire all their employees to showcase the same.
MAIN FUNCTIONS OF AN ENTREPRENEUR

Decision
Making

Management
Innovation
Control

Main
Functions

Risk taking
and Division of
Uncertainty Income
bearing
DECISION-MAKING
 The primary task of an entrepreneur is to decide the policy of production.
 This includes taking vital business decisions related to purchasing and sale of the
finished goods and services.
 He has to determine what to produce, how much to produce, how to produce, where to
produce, how to sell, and so on.

MANAGEMENT CONTROL
 The entrepreneur is responsible for the management and control of his business.
Therefore, he must possess 8oodmanagement skills and select the right type of people
to work with him.

DIVISION OF INCOME
 Another important function is to make necessary arrangements for the division of total
income among the different factors of production. Even when the business owner faces
a loss in business, he has to pay rent, interest, wages, and other contractual incomes
out of the realised sale proceeds.
RISK-TAKING AND UNCERTAINTY-BEARING
 Estimating the production is risky as an entrepreneur is required to produce goods and
services foreseeing their future demand.
 The entrepreneur undertakes two kinds of risks during production-Measurable and
Insurable Risks and Uncertainty Risks
 Measurable and Insurable Risks
 There are some risks, for example, risk of fire, loss of goods in transit, theft,
etc., which can be insured against any damage. These are known as
measurable and insurable risks.
 Uncertainty Risks
 Some risks, however, cannot be insured against because their probability
cannot be calculated accurately. These are known as uncertainty risks. These
type of risks occur due to unknown or unexpected events. It is difficult to
predict and control the damage done by these risks. Examples include damage
done by natural disasters, new competitors or products, a sudden change in
economic policies, etc.
INNOVATION
 Another important function of the entrepreneur is to innovate continuously-new
products, new techniques, discover new markets-to get the competitive advantage to
grow and adapt the business according to the demand and curren ttrend.
 MYTHS ABOUT ENTREPRENEURS
 ENTREPRENEURS ARE HIGH RISK-TAKERS
 Entrepreneurs are neither high nor low risk-takers. They prefer situations in which they can get a
profitable outcome. They like challenges which they believe will lead to positive results. Knowing
which business to start and which to avoid is the first important step. An entrepreneur should hence
be capable of taking calculated risks.
 ENTREPRENEURS ARE BORN
 Many people believe that entrepreneurs possess inborn capabilities. However, experts agree that
most entrepreneurs are not born; they learn to become entrepreneurs. Ever aspiring entrepreneur
should remember that starting your own business is not an easy decision, and you must understand
that it will change your life in many ways
 ENTREPRENEURS ARE MAINLY MOTIVATED TO GET RICHS
 It is a myth that people become entrepreneurs to become rich quickly. Starting a business is not a
get-rich-quick alternative. New business usually takes one to three years to turn a profit. During the
start-up stage, entrepreneurs do not splurge on a luxurious lifestyle but instead choose to use their
surplus money to pay off the debt or reinvest in the business. Their focus is on creating a company
with a strong financial base for future expansion
 ENTREPRENEURS GIVE A LITTLE ATTENTION TO THEIR PERSONAL LIFE
 It is believed that all successful entrepreneurs work long hours, which in turn takes a toll on their
personal life. The primary difference between the entrepreneur and their corporate counterpart is a
well planned schedule. Even though they don't mind working for 60-70 hours a week, they work out
their routine in a manner that allows them to spend time with their family and friends.
 ENTREPRENEURS ARE LONERS AND INTROVERTSE
 Even though some entrepreneurs prefer working alone they actively seek advice and
make contacts to discuss their business ideas with others for business growth.
 ENTREPRENEURS AREJOB HOPPERS
 Entrepreneurs are not job hoppers. Most of them gain experience after working for a
many years in big companies before starting their business. They use their corporate
experience to learn everything about the business they intend to set-up.
 ENTREPRENEURS FINANCE THEIR BUSINESS FROMVENTURE CAPITALISTS
 Most entrepreneurs fund their business from personal savings, or by borrowing from
friends or money lending institutions. Funding with a venture capitalist is expensive and
only used as a last resort.
 ENTREPRENEURS ARE OFTEN RUTHLESS OR DECEPTIVE
 Some people believe that you have to be deceptive to become a successful
entrepreneur. On the contrary, this attitude does not work well for an entrepreneur,
However, a deceptive entrepreneur often alienates himself from others. Bad
relationships with his employees, customers, and suppliers inhibit his venture from
becoming successful.
 ENTREPRENEURS HAVE LIMITED DEDICATION
 Dedication is an essential attribute for every entrepreneur. He needs to be extremely
dedicated to his venture. At the same time, he needs to make sure that his team is what
motivates your employees equally passionate to make the business succeed.
 ENTREPRENEURSHIP AS A CAREER OPTION
We have an educated youth, but job opportunities are limited. Hence, entrepreneurship can be the
right career choice.
The government has sensed this shift and taken a number of initiatives to encourage the creation
and growth of new ventures
 Ministry of Skill Development and Entrepreneurship was set up by the Government of India in
2014.
 Educational institutes are providing courses on entrepreneurship.
 A large number of incubators and business accelerators have been setup to mentor, coach, and
train entrepreneurs.
 Recognition of entrepreneurs in the community as role modelsthrough seminars, webinars,
YouTube videos, blogs, books, MassiveOpen Online Course (MOOC) from Coursera and Stanford
Online;Open forums, etc., are some of the initiatives that are driving the youthto choose
entrepreneurship.
 Alumni of various institutions are returning to their campuses and actively involving themselves
in mentoring andcreating an angel fund. The current ecosystem for entrepreneurship is indeed
vibrant.
 Being an entrepreneur teaches life skills, increases creativity
and problem solving skills, provides a better understanding of
business and market economics, improves communication,
teamwork, and networking skills, and hence, enhances
employability.
 More importantly, it teaches you that failure is also a learning
experience.
 Peter Drucker said, "The best way to predict the future is to
create it." This holds true for entrepreneurs.
 Entrepreneurship is full of uncertainty, but if one accepts that
and is willing to embrace it, success is assured.