UNIT I .

INTRODUCTION TO
ENTREPRENEURSHIP
Applied Subject
LEARNING OUTCOMES:
1. Discuss the relevance of the course.
2. Explain the key concepts of common
competencies.
3. Explain the core competencies in
entrepreneurship
4. Explore job opportunities for entrepreneurship
as a career.
• Entrepreneurial activities today have
become very important and are the
keys to economic development.
• Entrepreneurs are the reason for a
large quantity of highly developed
industries which result to greater
employment opportunities for
unemployed.

INTRODUCTION
RELEVANCE OF ENTREPRENEURSHIP
TO AN ORGANIZATION
1. DEVELOPMENT OF MANAGERIAL
CAPABILITIES
• Entrepreneurship helps in identifying and
developing managerial capabilities of
entrepreneurs.
• These managerial capabilities are used in creating
new technologies and products in place of older
technologies and products resulting in higher
performance.
RELEVANCE OF ENTREPRENEURSHIP
TO AN ORGANIZATION
2. CREATION OF ORGANIZATIONS
• Entrepreneurship results in the creation of
organizations when entrepreneurs
assemble and coordinate physical, human
and financial resources and direct them
towards achievement of objectives
through managerial skills.
RELEVANCE OF ENTREPRENEURSHIP
TO AN ORGANIZATION
3. IMPROVING STANDARD OF LIVING
• By creating productive organizations,
entrepreneurship helps in making a wide
variety of goods and services available to the
society which results into higher standard of
living for the people. (possession of luxury
cars, computers, mobile phones, rapid
growth of shopping malls)
RELEVANCE OF ENTREPRENEURSHIP
TO AN ORGANIZATION
4. MEANS OF ECONOMIC DEVELOPMENT
• Entrepreneurship involves creation and
use of innovative ideas, maximization of
output from given resources, and
development of managerial skills. All these
factors are essential to the economic
development of a country.
 CONCEPT OF
ENTREPRENEURSHIP
• The word “entrepreneurship” was derived from the
French verb enterprendre, which means “to undertake.”
This refers to those who undertake the risk of new
enterprises. An enterprise is created by an
entrepreneur and the process of its creation is
called entrepreneurship.
• Entrepreneurship is a process of actions of an
entrepreneur who is always in search of something new
to exploit new ideas into gainful opportunities by
accepting the risk and uncertainty of an enterprise.
 CONCEPT OF
ENTREPRENEURSHIP
• Entrepreneurs are innovators, willing to take risk and
generate new ideas to create unique and potentially
profitable solutions to modern-day problems.
• Intrapreneurship describes activities within a firm or
large organization (includes corporate venturing)
• “Gale of creative destruction” by Schumpeter -
wholly or partly destruction creates new products
and new business models across industries.
• Entrepreneurial activities can be incremental or
disruptive.
 FACTORS AFFECTING
ENTREPRENEURSHIP
1. PERSONALITY FACTORS 1. ENVIRONMENTAL FACTORS
a. Initiative a. Political climate
b. Proactive b. Legal system
c. Perseverance c. Economic and social
d. Problem-solver conditions
e. Persuasion d. Market situations
f. Self-confidence
g. Self-critical
h. Planner
i. Risk-taker
 Core Competencies in
Entrepreneurship
1. ECONOMIC AND DYNAMIC ACTIVITY
- involves the creation and operation of an
enterprise with a view to creating value or wealth
2. INNOVATION
- continuous search for new ideas
3. PROFIT POTENTIAL
- level of compensation or return
4. RISK-BEARING
- willingness to assume risk
 ACTIVITY 1:
QUALITIES OF ENTREPRENEURS:
SELF-ASSESSMENT
Find out if you are a sort of person that could set up and operate a business.
Check YES if the statement applies to you and check NO if it doesn’t.

YES NO
1. I think that a routine pattern of life with regular
working hours suits me best.
2. I have always thought and acted by myself.

3. Sometimes I think I seem to achieve nothing.

4. It is not good to start something unless you are

going to finish it.
 YES NO

5. I am much happier when I do not have to rely

on other people.
6. I often feel that I am the victim of events I
cannot control.
7. In any bad situation, I always get something
good from it.
8. It is very important to me that people
recognize my success.
9. I am too much ambitious so that I can avoid
being disappointed.
10 I am prepared to take risks only after I have
. thought about all of the possible
consequences.
 YES NO
11. When I talk to a senior person I do not usually
say what I mean.
12. People often tell me that I am good at
understanding their point of view.
13. The amount of money that I earn is more
important than how hard I work to earn it.
14. I usually work later than I plan.
FUNCTIONS OF AN
ENTREPRENEUR
The following are important functions performed by an
entrepreneur:
1. INNOVATION – develop new technologies, products, and
markets.
2. ASSUMPTION OF RISK - a risk taker not a risk shirker
3. RESEARCH – practical dreamer and does a lot of ground-
work
4. DEVELOPMENT OF MANAGEMENT SKILLS – develops
while planning, organizing, staffing, directing, controlling
and coordinating activities of the business
5. OVERCOMING RESISTANCE TO CHANGE – paves the way
for the acceptance of his/her ideas by others.
6. CATALYST OF ECONIOMIC DEVELOPMENT – accelerating
the pace of economic development of a country
 TYPES OF
ENTREPRENEURS
Depending upon the level of willingness to create
innovative ideas, here are the following types of
entrepreneurs:

1. Innovative entrepreneurs
2. Imitating entrepreneurs
3. Fabian entrepreneurs
4. Drone entrepreneurs
5. Social entrepreneurs
CAREER OPPORTUNITIES
FOR ENTREPRENEURSHIP
GRADUATES
 Given below is only a small snapshot
of what can be done by some with an
entrepreneurial degree.
1. MID-LEVEL MANAGEMENT
2. BUSINESS CONSULTANT
3. SALES
4. RESEARCH AND DEVELOPMENT
5. NOT-FOR-PROFIT FUNDRAISER
6. TEACHER
7. RECRUITER
8. BUSINESS REPORTER
SOME MYTHS
ABOUT ENTREP
 Over the years, a few myths about
entrepreneurship have
developed.
1. Entrepreneurs, like leaders, are born, not
made.
2. Entrepreneurs are academic and social misfits.
3. To be an entrepreneur, one needs money only.]
4. To be an entrepreneur, a great idea is the only
ingredient.
5. One wants to be an entrepreneur as having no
boss is great fun.
 Research
• Research on the life of at least one of the
successful entrepreneurs. Find out what made
them succeed. Cite lessons learned from their
stories of success.
• Find out how the entrepreneur , whom you
selected to research on, performed the 6
functions of an entrepreneur. Based on the types
of entrepreneur, what type does he/she belong?