 Entrepreneurship:

Meaning →The word “entrepreneur” is derived from French word

“entreprenerd” which means to understand or to undertake.
Entrepreneurship is a tendency of a person to organise the business of
his own and to run it profitably, using all the qualities of leadership and
decision making and managerial calibre.
The term ‘entrepreneur’ is often used interchangeably with
entrepreneurship. But conceptually they are different.
Entrepreneur Entrepreneurship
1) Refers to a person. 1) Refers to a process.

2) creator. 2) Creation.

3) Organiser 3) Organisation.

4) Decision maker 4) Decision making.

5) Leader. 5) Leadership.

6) Motivator 6) Motivation.

7) Risk taker. 7) Risk taking.

8) Initiator. 8) Initiative.

 Entrepreneur:
Meaning → An entrepreneur is an individual who creates a new
business, bearing most of the risks and enjoying most of the rewards.
The process of setting up a business is known as entrepreneurship. The
entrepreneur is commonly seen as an innovator, a source of new ideas,
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goods, services and procedures.

  Characteristics/attributes /traits of an entrepreneur:
An entrepreneur should possess all such characteristics with the
Help of which he can Perform successfully. Most common attributes of
Can be courage, skilful, good judgement and emotional stability, let us
discuss these characteristics in detail -
1) Calculated risk taker → Risk means the condition of not knowing the
outcome of an Activity Or decision. An entrepreneur is a calculated risk
taker. An entrepreneur likes to take realistic so ricks because he wants
to be successful. He gets greater satisfaction in accomplishing difficult
but realistic tasks by applying his own skills.
2) Innovator → Schumpeter differentiates b/w an inventor and
innovator. An inventor discovers new methods and new materials and
an innovator is the one who utilizes those discoveries and inventories.
3)Organiser → An entrepreneur has to bring together various factors
of production, minimizes loses and reduce the cost of production, take
all the decisions but as the enterprise grows, he sharks delegating the
authority.
4)Creating → creativity as a field knowledge seeks to explain how
humans, either individually or collectively reach solutions that are
Both novel and useful. Successful innovation depends on creativity and
one of the most important characteristics of entrepreneur is to Be
creative.
5)Achievement motivated → Achievement motivation is a Drive to
Overcome Challenges to advance and to grow. An entrepreneur is
achievement-oriented person not money hungry. He works for his
desire, accomplishment and service to others.
6)Other characteristics are → Technically competent, self-confident,
optimistic, communication ability, decision, making etc.

 Characteristics of an entrepreneur:
•Secrecy Maintenance. •Communication skill •Sincerity.
•Maintaining public relation •Risk taking. •self-reliance.
•Planning & organising ability •Innovation. •Hard worker.
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•Highly optimistic.
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  Various competencies required for superior performances were
identifying during the study / traits / qualities:

1) Initiative→ It is an inner verge in an individual to do or initiate the

something! It is an entrepreneur who takes or initiate first move
towards selling up an enterprise.
2) Looking for opportunity → An entrepreneur is always on the lookout
one searching for opportunity and is ready to exploit in the best
interest of the organisation.
3) Persistence → An entrepreneur is never disheartened by failures. He
believes in the Japanese proverb "Fall seven times, stand up eight." He
follows try-try again for overcoming the obstacles in the way of
achieving goats.

4) Quality consciousness→ Successful entrepreneurs are do not believe

in moderate or average performance.
5) Commitment to work→ Successful entrepreneurs are prepared to
make all sacrifices for honouring the commitments they have made.
6) Problem solver→ Successful entrepreneurs take problem as a
challenge and put in their best, for finding out the most appropriate
solution for the same.
7) Self-confidence→ Top performance are not cowed down by
difficulties as they believe in their own abilities and strength. They have
full faith on their knowledge and skill and confidence and are no
worried about further uncertainty.

8) Assertive→ An assertive person knows what to say, when to say, how

to say, and whom to say He believes in his abilities.
9) Effective strategies→ A successful entrepreneur possesses the ability
to evolve relevant strategy and promoting in organisation interest.
10) Commitment to efficiency→ Top performers are always keen to
device new methods armed at promoting efficiency.
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Functions of an entrepreneur:

An entrepreneur has to carry out a combination of functions like- risk

taking, innovation, motivation, controlling etc, in keeping pace with
chime and environment to. The functions are as follows-

1) Innovation→ J. Schumpeter has made substantial contribution to the

literature of entrepreneurship; he says that an entrepreneur is basically
an innovator and he introduces something new in economy. The
process of innovation may be in the form of-
a) Introduction of new product. b) Use of new methods of production,
c) opening of a new market, d) Introduction of new source of
e) A new form of organisation, supply of raw materials.

2) Rick taking → Richard Cantillon states that entrepreneur is an agent

who buys means of production at certain prices and sells them.
Production all uncertain prices. Thus, Cantillon introduces elements of
direction and speculation into the functions of an entrepreneur.

3) Decision making→ Arthur H. Cole some writers are of the view that
the functions of the entrepreneur are to take decisions regarding the
activities of the concern. He is expected to take decisions about the
type of business to be done and the way of doing it.

3) Organisation and management→ Marshall recognised organisation

and management of the enterprise as the important function of an
entrepreneur, when the organisation grows bigger the entrepreneur
effectively delegates authority and finds responsibility at various levels
of management.
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
  Difference b/w entrepreneur and manager-
Entrepreneur Manager
1. Entrepreneur refers to a 1. Manager is an individual who
person. Who creates an takes the responsibility of
enterprise, by taking financial rick controlling and administering the
in order to get profit. organization.
2. They focus on starting and 2. They focus on daily smooth
expanding the business ideas. functioning of business.
3. Key motivation for 3. Manager motivation comes
entrepreneur is achievement. from the power that comes with
position.
4. Approaches to task is informal. 4. Approaches to task is formal.
5. Entrepreneur is owner. 5. Manager is an employee.
6. He is a risk taker. 6. He is risk overseer.
7. Rewards for all efforts is profit, 7. Remuneration is salary, he
he earns from enterprise. draws from the company.
An entrepreneur is a person with an idea or skills, courage! Take any
risk to pursue that idea to turn it into reality. On the other hand,
manager is person who manages the operations and functions of
organisation.
 Classification/types of entrepreneurs-
Entrepreneurs

Innovating Imitative Drone Fabian

1. Innovating entrepreneur  Innovative entrepreneur are generally

aggressive and possess the art of cleverly pulling the attractive at
possibilities into practice. An innovating entrepreneur is one who
introduces new. goods, inaugurates new methods of production,
discovers new market and recognises the enterprise. He arranges
money, launches an enterprise, assembles the various factors, chouses
the competent managers and sale his enterprise goods. Schumpeter
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entrepreneur is of this type

2. Imitative entrepreneur  They are characterised by
readiness to adapt successful innovations inaugurated by
successful innovating. entrepreneurs. They do not imitate the
changes. themselves, they only imitate techniques and
technologies by innovated by T others. For example. All the
small ear manufacturers now are the imitating entrepreneurs.

3. Fabian entrepreneurs  They are cautious in experimenting

change in enterprises, such entrepreneurs are shy, lazy and
lethargic. They imitative by nature but are not determined and
are also lack power. They imitate only when it becomes
perfectly clean that failure to do so would result in a loss of the
relative position of enterprise, E.g.- Kadak a company that
happened to be the market leaders in producing analogue
cameras they but did not realise the change and the
introduction of digicam.

4. Drone entrepreneurs → Drone entrepreneurs are

characterised by a refusal to adapt opportunities, to make
changes in production formula even at the cost of severely
reduced returns. They can suffer loss but are not ready to make
changes but their existing production methods. They always
follow the traditional method of production. E.g.- There is a
“Beerse" old fashioned tobacco making process producer
cooperative that uses employer to make tobacco by hand. Even
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though it is a dying industry bit it does not stop them.

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  Entrepreneurial Innovation

Innovation is the specific tool of entrepreneurs, the means by which

they exploit change as a business or an opportunity for a different
service. Innovation can be seen as a change in the thought process for
doing something, or the useful application of inventions or discoveries.
It may refer to incremental, emergent or radical and revolutionary
changes. in thinking, product, processes or organizations.

 Types of Innovation (How the Innovation Power of the

entrepreneur help?):

1. Organizational innovation - Organizational innovation refers to the

development of a new organizational strategy that will somehow
change a company's business practice as well as the way its workplace
is organized and its relationship with external stakeholders.

2. Process Innovation- Process innovation is about implementing a new

or improved production or delivery approach, including changes in
operational the techniques used and the equipment or software.

3. Product Innovation - Product innovation is the introduction of a

new or improved goods or service. These inventions or changes
may have to do with improving technical specification, the
materials or the software used or even advancing user experience.

4) Marketing Innovation: Marketing innovation means developing a

new marketing strategy that produces changes in for instance, the way
a product is designed or packed, or even other decisions regarding
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price of promotion.
  Sources of innovation:
There are several sources of innovations-

1) Manufacturer Innovation: In the linear model of innovation the

traditionally recognized source is manufacturer innovation. This is
where an agent (person or business) innovates in order to sell the
innovation.

2) End-user Innovation: This is where an agent (person or business)

develops an innovation for their own (person or in-house) use because
existing products/services do not meet their needs.

3) Breakthrough innovations: Innovations may be developed by less

formal on-the-job modifications of practice though exchange and
combination of professional experience and by many other routes.

4) Accelerated radical Innovation: This is another buzzword topping

radical innovation expressing the target to move things quicker than by
relying on the ideas flowing in from inventors. Users as customers
buying products or using services- are an important factor in
innovation.

5) Supply-pushed or demand-led innovation: whether innovation is

mainly supply-pushed (based on new technological possibilities) or
demand-led (based on social needs and market requirements) has
been a hotly debated topic.
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  Entrepreneurship Development in India – Entrepreneurship
development programmes:
Entrepreneurs are not necessarily born they can be developed through
education, training and experience. Development of entrepreneurs
means including entrepreneurial skills required for setting up and
operating business units. Entrepreneurial development is an organized
and on-going process. Its basic purpose is to motivate persons for
entrepreneurial career and to make them capable of perceiving and
exploiting business opportunities. Entrepreneurship development is
not merely a training programme. It is the process of-
1) Enhancing the motivation, knowledge and skills of potential
entrepreneurs, 2) Arousing and reforming the entrepreneurial
behaviour in their day-to-day activities, and 3) Assisting them in
developing their own ventures.
• An entrepreneurial development programme consists of the felling
Phase:
A) Pre-training Phase- This phase involves the following activities-
1. Selection of persons with the required potential in terms of
knowledge, attitudes and motivation.
2. Creatin for infrastructure for training.
3. Preparing contents of the training programme.
4. Designing techniques for training.
5. selection and training of the trainers.
6. Suney of environment.
B) Development Phase- During this phase the training program is
launched in order to carry out the necessary charges in the skills,
attitudes and behaviour of the participants.
C) Post-training Phase - This phase involves assessing the effectiveness
of the training. Monitoring and following up will reveal shortcomings in
the training programs steps can be taken to make the programme
more effective. In this phase infrastructural support, counselling and
assistance in establishing enterprises can be reviewed.
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  Entrepreneurship decision process:
Entrepreneurs need to make various decisions for this business he/she
needs good decision-making skill because of the market problem and
defending the market situation.
The entrepreneur needs to follow the steps of the entrepreneurship
decision process: 1. Identification of problem or opportunity.
2. Generate alternative solution. 3. Analyse the alternative solutions.
4. Selection of the best alternative. 5. Implementation of the
alternative. 6. Review the performance.
1. Identification of problem opportunity - In entrepreneurship the first
process of identifying opportunities or problem. The entrepreneurial
decision process both are equal to arising opportunity and problem.
2. Generate alternative solution- Identify opportunities and problems.
These first process are completed then the second decision process
generates alternative solutions. Entrepreneur must be innovative to
choose alternative ideas.
3. Analyse the alternative solutions- The second step is to generate
ideas then analyse these ideas alternatively, entrepreneur choose for
his/her particular purpose. Entrepreneur must analysts all areas of
these ideas for beneficial in his/her organization.
4. Selection of the best alternative- When entrepreneur generate
alternative solution and analysis. Then fourth steps of
entrepreneurship in deciding the best alternative decision. When
entrepreneur choose the best alternative per requirement, it definitely
benefits him/her.
5. Implementation of the alternative- Selection of the best alternative
in the entrepreneurship decision press then the fifth process
implements there alternative in her or his purpose for getting more
benefits.
6. Review the performance- In the entrepreneur decision last process
review the performance means that all review choosing these
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alternatives. Look at the actual and previous performance what are

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differences between them.

  Theories of Entrepreneurship:
Successful entrepreneur is highly regarded in society and people seek
to learn from the entrepreneurs to enhance their entrepreneurial
capacities. In this case, emphasis has been placed on highlighting the
characteristics of successful entrepreneurs and theories of
entrepreneurship, here are some of the most common theories.

1. Economic theories of entrepreneurship- This theory further states

that entrepreneurs find motivation in the presence of economic
incentives, including industrial policy, taxation policies, financial and
resource, availability of infrastructure, investment opportunities,
marketing opportunities, availability of information regarding the
conditions of the market and technology, among other.
Therefore, an entrepreneur is a risk-taker because he can never
fully predict the favourability of the economic condition in the future.

2. Sociological theories of entrepreneurship- This is also among the

contemporary theories of entrepreneurship. It argues that the success
of an entrepreneur is affected by their social culture. As a result, they
are more likely to achieve growth in particular social settings.
Among social aspects that affect an entrepreneur include social
values, and customs, taboos, religious beliefs and other cultural
activities. They have to conform to social expectations when carrying
out their business.

3. Psychological theory of entrepreneurship- According to this theory,

an entrepreneur experiences growth when the society has several
individuals with the necessary psychological characteristics. These
characteristics include having a vision being able to face opposition and
have having the need to achieve highly.
A person can only possess these traits during their upbringing, when
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they excel, when they are self-reliant and when there is low father
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dominance.
4. Anthropological theory of entrepreneurship- Anthropologists study
people, social groups, their narratives and practices as products and
producers of culture. The anthropological theory says that for someone
to initiate a venture successfully, the social and cultural contexts should
be examined or considered.
This theory is based on the cultural entrepreneurship model. The
model say's that a new venture is created by the influence of one's
allure. Cultural practices lead to entrepreneurial attitudes including
innovation that also led to venture creation behaviour.

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