Mrs.S.Priya, MBA, M.Phil., PGDCA, PGDPM&LL, Ph.

D
Asst. Professor
Dept of Management Studies
NMS S.Vellaichamy Nadar College
Nagamalai
Madurai-19
An Entrepreneur is a person who organizes and manages
a business undertaking, assuming the risk for the sake of
profit.

Any person ( in any age) who starts and operates a

business is an entrepreneur.

An entrepreneurial process involves all the functions,

activities, and actions associated with perceiving of
opportunities and creation of organizations to pursue them.
o I am a petty shop owner – Am I an entrepreneur? - NO
o I am having my own Two wheeler repair shop – Am I an
Entrepreneur? - NO
o I am a street vendor of Sundal, pattani, kadalai - Am I an
Entrepreneur? - NO
o I have started my own hotel called “siru dhaniya hotel” - Am I
an Entrepreneur? - YES
o I have started a new home for street dogs and going to sell the
same - Am I an Entrepreneur? - YES
o Samosa wala who sells Samosa in the street, sells 4000
samosa every day and for each samosa the margin for him
is Rupee one. So he makes Rs.4000/- everyday – Is he an
Entrepreneur - NO
Entrepreneurship requires some level of innovation.
Simply starting a small firm which does nothing new is
not True entrepreneurship.

Consequently, most self-employed individuals who do

not innovate, or who do not disrupt markets, are not
entrepreneurs. Entrepreneurship is defined as the
economic function of creating change, whereas self-
employment is defined by the legal form of working for
oneself rather than for somebody else.

Taxi Driver who owns his Car is Self employed

Ola Taxi Service is an entrepreneurial activity
Three Aspects of Entrepreneurship which differentiate
them from normal business:
1. The identification/recognition of market opportunity
and the generation of a business idea (product or
service) to address the opportunity

2. The organizing and commitment of resources in the

face of risk to pursue the opportunity

3. The creation of an operating business organization to

implement the opportunity-motivated business idea
Five Important Characteristics of Smart Entrepreneurs

Drive - Entrepreneurs can expect long hours, high stress and

endless problems, as they launch a new business.

Creativity - Thinking Ability, encompasses creativity, critical

thinking, analytical abilities and originality.

Aptitude for Human Relation - the ability to motivate employees,

sell customers, negotiate with suppliers and convince lenders.

Communication – The ability to make yourself understood.

Technical Ability – To know their product and their market.

 Entrepreneurship teach three important things for any budding
entrepreneur:
1. Modern Trade Culture greatly support the new startups with limited own
capital, new innovation and new efforts and it does survive even with
the encroach of top MNCs of the world. Eg. Exclusive Organic Food
Hotels or organic food stores even in the existence of Hotel Taj or
Retail giant Big Bazaar.
 Entrepreneurship teach three important things for any budding
entrepreneur:
2. Go for Blue Ocean Strategy i.e. new untapped market new innovative
product, new innovative technology or process rather than compete in
the cut throat competition of Red Ocean Strategy. Don’t try to get a
minimal market share among the branded products try to create new
market itself. IPL Cricket is a very good example of Blue Ocean
Strategy Tata Nano – another example for Blue Ocean.
(There are numerous brands in bathing soap, Hamam, Cinthol, Vivel,
Chandrika, Dove, Lux, Yardely, Medimix, Santhoor, Power, Mysore Sandal,
Lifebouy, Pears, Dettol, Himalaya Herbal, the list goes on ……….. Any body go
for another brand in soap)
 Entrepreneurship teach three important things for any budding
entrepreneur:
3. When you are going for a startup or new businessdon’t take example of
Apple Inc. Steve Job or Microsoft Bill Gates or JRD Tata of Tata
Group, Just go for simple startups with minimal cost and good effort.
Very simple need of human or persisting problem of certain issues of
society can also become a startup.
Mosquito repellent is a good example for this:
We started with coil and ended with new “Neem Liquid” or “Catche”
Why Become an Entrepreneur?
1. There is no need to work for somebody else. They
are their own Boss.
2. Entrepreneurs if successful they can get higher
financial rewards, enjoy profits as they take risk.
3. A Complete involvement in business is possible,
concept of design, creation and execution all in all.
4. It gives pride, prestige to the entrepreneur for being
the sole owner of success.
5. Entrepreneurs create lot of economy thro,
employment generation, innovation, new market
creation, new opportunity generation etc.
Persisting problem can be reinvented with new social theme :
Mr. Mahesh Khandelwal, the scientist and successful entrepreneur
found the plight of rural women and the difficulties they face during
menstruation. India needs 30 crore packets of sanitary napkins every
month, this initiative can create employment for more than one million
women in our country. Add to this exports to other underdeveloped
countries.
. Khandelwal designed “WE” sanitary napkins, which cost only
Rs. 10 per packet of six pads. The napkins are also eco-friendly- while
the current products in the market have a high quantity of polymer (1.5
grams to 2 grams) that is not degradable, WE napkins have just 0.7
grams of polymer.
The Soup Man of Madurai: Mr.Ponnusamy:
Product Innovation

Soup man timing are 7am to 10 am only –

Financial Details are:
• Three cans of 165, 100 and, 100 Litres respectively of three soups
Each glass of 100ml costs Rs. 10/-
so his revenue per day is 365 * 10 * 10 = Rs. 36,500/-
Monthly he makes 4.4 lakhs and annually about 50 Lakhs after bearing all the
making cost, over head cost.
• Costs are bare minimal. He may end up with a margin of 80%.
Mechanical Tree Climber : D.Renganathan – Technical Innovation

This was developed by D. Ranganathan to scale palm and coconut trees,

and is being sold all across South Asia. It costs around Rs. 7000. Don't you
worry about falling down since it has a four-lock pin for safety. Market for
this product is all over the world.
Labour innovation – Ramraj Cotton Dhoties – Mr.Nagaraj
When agriculture is not so good in Tirupur, He made the labourers to
weave his dhoties which had a good market in Andhra and Odissa and
recreated the lost market in Tamilnadu with his innovation Ottikko
Kattikko Velcro Pocket Dhoties. Dhoties made easy for the
generation next.
Packaging Innovation - CavinKare C.K.Ranganathan
Products should be affordable to the people. Went for Blue Ocean
Strategy of going for rural market in Cosmetics and perfume Industry.
Affordability of products to rural market through the packaging
Innovation. The introduced “sachets” to ensure less price and
affordable quantities to the rural market.
Innovative Business Model- Contract Farming – Suguna Chicken
B.Soundar rajan
Started his poultry business with just Rs.5000/- now it is worth Rs.5500
crore worth. They began to partner with farmers who would set up the
infrastructure for the poultry in their land and they would supply the
chicks, feed, and the medicines for the birds. Both the company and the
farmers grow with this model. At present, Suguna works in 9,000
villages, 18 States, with 23,000 farmers, who between them hold 10
crore sq feet enclosed area, and produce about 8 million chickens per
week. They have 250 branches around the country.