MANIPAL INSTITUTE OF MANAGEMENT, MAHE

Subject: Entrepreneurship

Subject code: MGA-PE-705

Submitted by

201202026 – ASHITHA RAI

Section A
1. Suggest areas for new possible enterprises.

Entrepreneurs have a vast sea of opportunities to choose from when venturing into a new
business, but often lose out on creating unique businesses. In this situation, they must dig
deep into their creativity and find out areas with high potential.
With the ongoing pandemic, entrepreneurs should find opportunities that guarantee health
safety, for both the entrepreneur and their employees. This means finding ways to conduct
business with zero contact. With the transformation of businesses from offline to online, the
following are some ideas for new ventures –
 Cyber Entrepreneurs
People who use information technology to do business are known as cyberpreneurs or
cyber entrepreneurs. They think of new ways to provide products and services to
clients over the internet. These individuals comprehend the internet age and eliminate
the need to visit a real store. Ventures such as e-commerce which have not covered
online modes of business, such as customised easy to make meals for one, or online
tailoring services can be explored
 Technology Entrepreneurs
A technopreneur combines entrepreneurial acumen and skills with technical prowess
to create a company that thrives on the use of technology extensively. In a nutshell,
these are entrepreneurs with the power to transform current economic situations and
deliver game-changing items for clients. Technology is at the heart of such a
company's products and services. By converting existing offline services to online
modes, information technology will be the best area to explore for new businesses.
 Medical field (safety kits)
While expertise is required to enter the medical field, there is a huge gap between the
supply and demand of products that ensure safety. Medical industries are slowly
closing the gap, but only because local entrepreneurs have found alternatives to
ensure safety. Venturing into creating safety kits or DIY masks can be very
successful.
 Other ideas
o Specialty Food Businesses – gourmet foods, special oils, sale of semi-finished
food products
o Sports & Entertainment Businesses – escape rooms, axe throwing parties,
destruction of old homes (also known as rage rooms)
o Specialty Retail Businesses – customised dolls, board games, clothing, etc
o Relaxation & Therapy Businesses – sensory deprivation tanks, hot tub gardens
o Rental Businesses – renting petting zoos for children, tents for camping, etc
2. Compare concepts of entrepreneurship discussed so far

Entrepreneurship is the process of establishing and growing a business with the goal of
providing something new or improved to the market, or by better managing the means of
production. This process is primarily organised through the formation of a start-up firm, is
handled by entrepreneurs, frequently at great personal and financial risk, and lasts only a
short time as a phase in the lifetime of a business. A crucial difference between start-ups and
other small or early enterprises is the desire (realised or unrealized) to expand significantly.
Companies either develop out of the start-up phase and become viable businesses, get
purchased or sold to public investors, or decay and eventually shut down as new businesses
emerge to take their place.

An entrepreneur is an individual who undertakes the risk associated with creating, organizing,
and owing a business. It differs from many small business owners in their strong desire to
make their business grow. It differs from managers through their overriding responsibility.
Entrepreneurs should be willing to take risk. So, from this point we have started discussing
the distinction between entrepreneurs and managers with respect to status, target, decision
making, rectification of wrong decisions, innovations, risk bearing, skills, qualification and
rewards. The next topic is why people become entrepreneurs, which helps to explain the
concept in four boxes. People like being an entrepreneur because they are their own boss,
entrepreneurs are wealth creators, job security and quality of life.

A process and entrepreneurs as innovators are not equal to investors, investors might only
create a new product, whereas an entrepreneur will gather resources, organize talent and
provide leadership to make it a commercial success.

Concepts -

1. Elitist and Developmental view of creativity

According to the elitist viewpoint, the creative process is an individual spiritual experience,
an innate ability that cannot be harnessed, whereas according to the developmental viewpoint,
creativity is a process rather than an event that can be harnessed and supported. In essence,
creativity is a problem-solving process that exists in all of us, not just a select few. Anyone
can learn, practise, and apply it. Some research suggests that there are a variety of tools that
people can use to improve their creativity, while others argue that those who engage in the
creative process must have the necessary skills and be highly motivated.
2. Six Thinking Hats
White Hat - requests information that is already known or that is required.
Yellow Hat - represents brightness and optimism, where one must investigate the positives
and search for value and benefit.
Black hat - The risk management hat, probably the most powerful Hat; a problem if overused;
spot difficulties where things could go wrong, why something may not work. It is inherently
an action hat with the intent to point out vulnerabilities with the intent to overcome them.
Red Hat - represents feelings, intuition, and hunches. This hat allows for expression of
emotions and feelings, as well as fears, likes, dislikes, loves, and hates.
Green Hat - concerned with creativity; the possibilities, alternatives, and new ideas. It's an
opportunity to express new ideas and perspectives.
Blue Hat - used to manage the thought process.
3. Sociological Approach
The sociological approach to entrepreneurship research focuses on the social and cultural
factors that influence the nature and growth of entrepreneurship in a society. It seeks to
comprehend why a social structure and culture facilitates or hinders entrepreneurial
development. It believes that the laws of development are embedded in a region's social
structure and culture. It attempts to find an answer to the question of why one social structure
produces a greater number of entrepreneurs than the other.
4. Psychological Approach
 Need for Achievement: The most prominent proponent of the psychological approach to
entrepreneurship, David McClelland, believes that the genesis and performance of
entrepreneurs necessitate strong motivation for achievement. People with a high need for
achievement have a strong desire to solve problems on their own, they enjoy setting goals
and achieving them through their own efforts, and they enjoy receiving feedback on how
they are doing. They are risk takers with a moderate level of confidence. However, there
is no research evidence linking entrepreneurship and need fulfilment.
 Locus of control: Entrepreneurs have a strong sense of internal control. The locus of
control is a concept that defines whether a person believes he or she is in control of his or
her future or that someone else is. We all know people who believe they have no control
over their lives, for example. They believe that what happens to them is dictated by forces
 outside of their control. People who believe they are victims of external forces have an
external locus of control, as in "it's not my fault this happened to me." Entrepreneurs, on
the other hand, have a very strong internal locus of control. They believe that the
decisions they make will determine their future.
 Risk taking propensity: A person's risk-taking propensity can be defined as their strong
tendency to take risks. The propensity for risk-taking, which is a characteristic of
entrepreneurs, is regarded as critical for the decision to pursue a career in
entrepreneurship.
 Comparison of sociological and psychological approach to entrepreneurship: Unlike the
sociological approach, which asserts that the existing social structure determines
entrepreneurship and economic development, the psychological approach seeks to
determine how the social structure affects the attitudes of a society's people.
Psychologists' studies have typically covered areas such as entrepreneurial commitments,
saving and investment tendencies, and business management.
5. Resource Based Approach
Resource-based theories are concerned with how individuals use and control various types of
resources in order to launch entrepreneurial ventures. Such resources may include: access to
capital, social networks, and information; human resources in the form of education, skill,
and training; and some invisible elements of leadership that an entrepreneur adds as a
resource.
According to the resource-based theory of entrepreneurship, founders' access to resources is
an important predictor of opportunity-based entrepreneurship and new venture growth. This
theory emphasises the importance of financial, social, and human resources. Having access to
resources improves an individual's ability to detect and act on opportunities. The three classes
of theories under resource-based entrepreneurship theories are financial, social, and human
capital.
3. Explain entrepreneurship as a process and the importance of innovation
to that process.

The stages of the entrepreneurial process that must occur in order to establish a firm are not
simple for anyone. Many people have reasons to be entrepreneurs, many people discuss what
should be done, and just a few people actually do what is required to get started. There are
many people who think, but only a few who act. The entrepreneurial spirit and culture are
centred on those who choose to take one step forward in order to attain success. It is a long-
term process, and visionaries must continue to fight to change their surroundings.

Due to increased rivalry, many entrepreneurs have begun to discuss innovation. A change
that adds value to an existing idea, product, service, or concept is referred to as innovation
Entrepreneurs use innovation as a tool to take advantage of developments as an opportunity
to start a new firm. An inventive entrepreneur is someone who can take on the challenge of
developing new items to match market wants and trends. Entrepreneurial innovation is
important in a variety of ways.

Creative Development: A brand's nature, inventiveness, and design thinking process are all
enhanced by innovation. Entrepreneurial innovation can offer doors to a variety of
opportunities by assisting businesses in keeping up with current trends.

Persistent Improvement: A competent entrepreneur will recognise the value of innovation,

which will aid in the expansion of business creativity.
Creative Disruption: Disruptive innovation is a type of innovation that has the potential to
reshape an entire industry by making a specific product more accessible and affordable to more
consumers. There are four types of innovation which could lead to entrepreneurial opportunities:
 Synthesis: Combination of pre-existing concepts and elements
 Invention: Completely new product/process
 Extension: Different application
 Duplication: Replication with additional creative and entrepreneurial touch

Adapting to Change and Competition: Responding to future trends with the help of
entrepreneurship can help an entrepreneur's business come up with solutions to help their
firm flourish.
Having a Unique Selling Proposition (USP): Consumers view innovation culture as
something that offers some unique value to a company's products. Entrepreneurial innovation
can provide benefits that assist a company gain positive publicity.