Introduction to

Entrepreneurship
 ENTREPRENEURSHIP

Entrepreneurship is the art of starting

a business, basically a start-up
company offering a creative product,
process or service. It is an activity full of
creativity.
 ENTREPRENEUR
An entrepreneur is a creator or a
designer who designs new ideas and
business processes according to the
market requirements and his/her
passion.
 Concept of Entrepreneurship
The word entrepreneur was derived from the French
verb “Entreprendre” which means “to undertake”

This refers to those who “undertake” the risk of new enterprise.

An enterprise is created by an entrepreneur and the process is

called entrepreneurship.
Motivation - an Important factor for
an Entrepreneur
 Point Answers why Motivation is an
Important for an Entrepreneur
• Tough Competition
• Unfavorable Environment
• To create public demand
• To enhance creativity
• To increase productivity
 What Motivates an Entrepreneur?

• Change
• Challenge
• Creativity
• Control
• Curiosity
• Cash
 Results of Motivation

• Heavy Industrialization
• Self-Employment
• Economic Growth
• Creating New Jobs
• Proper social benefit
 Entrepreneurial Process
Developing a
Business Plan

Discovery Resourcing
ENTREPRENEURIAL
PROCESS

Harvesting Managing
Company
 1. DISCOVERY
An entrepreneurial process begins with idea
generation, wherein the entrepreneur identifies and
evaluates business opportunities. The identification
and the evaluation of opportunities is a difficult task; an
entrepreneur seeks inputs from all the persons
including employees, consumers, channel partners,
technical people, etc. to reach an optimum business
opportunity. Once the opportunity has been decided
upon, the next step is to evaluate it.
 2. Developing a Business Plan

Once the opportunity is identified, an entrepreneur

needs to create a comprehensive business plan. A
business plan is critical to the success of any new
venture since it acts as a benchmark and the
evaluation criteria to see if the organization is
moving towards its set goals.
 3. Resourcing

The third step in the entrepreneurial process is

resourcing, wherein the entrepreneur identifies the
sources from where the finance and the human
resource can be arranged. Here, the entrepreneur
finds the investors for its new venture and the
personnel to carry out the business activities.
 4. Managing the Company

Once the funds are raised and the employees are hired,
the next step is to initiate the business operations to
achieve the set goals. First of all, an entrepreneur must
decide the management structure or the hierarchy that is
required to solve the operational problems when they arise.
 5. Harvesting

The final step in the entrepreneurial process is harvesting

wherein, an entrepreneur decides on the future prospects of the
business, i.e. its growth and development. Here, the actual
growth is compared against the planned growth and then the
decision regarding the stability or the expansion of business
operations is undertaken accordingly, by an entrepreneur.
 Innovative
Entrepreneur

Imitating Types of Entrepreneur Fabian

Drone
 Innovative Entrepreneur
These are the ones who invent new ideas, new products, new
production methods or processes, discover potential markets
and reorganize the company structure. These are the industry
leaders and contribute significantly towards the economic
development of the country. They are always ready to take a risk
because they enjoy the excitement of a challenge and every
challenge has some risk associated with it.
 Imitating Entrepreneur

The imitating entrepreneurs are those who immediately

copy the new inventions made by innovative
entrepreneurs. These do not make any innovations by
themselves; they just imitate the technology, processes,
methods pioneered by others.
 Fabian Entrepreneurs

These type of entrepreneurs are skeptical about the

changes to be made in the organization. They do not
initiate any inventions but follow only after they are
satisfied with their success rate. They wait for some time
before the innovation becomes well tested by others and
does not result in a huge loss due to its failure.
 Drone Entrepreneur

These entrepreneurs are reluctant to change since they

are very conservative and do not want to make any
changes in the organization. They are happy with their
present mode of business and do not want to change even
if they are suffering losses.