Introduction

NAME: BABUR IQBAL

QUALIFICATION: M.PHIL

SPECIALIZATION: FINANCE
Subject

Entrepreneurship & Management

 Course Roadmap
Number of Lectures: 30

Before Mid Term Exam:

Number of Assignments: 02
Number of Quizzes: 02
Before Final Term Exam:
Number of Assignments: 02
Number of Quizzes: 02
 Weightage
Assignment:

Quiz: 60%

Mid Term
Final Term 40%
 Recommended Books

TITLE
 Entrepreneurship: A Contemporary Approach

Author
Donald F. Kuratko
 GRADING SLAB
Absolute Grading Will be awarded as per grading slab provided by the
UET
A+ A A- B+ B B- C+ C C- D+ D F

>95 85-94 80-84 75-79 70-74 65-69 55-64 45-54 40-44 35-39 30-34 <30

MARKS WITH TEACHER WITH UET

Quiz+ Assignment +Mid Term Final Term

 60% 40%
Nature & Development Of
Entrepreneurship
 The Nature and Development
of Entrepreneurship
The word “entrepreneur” stems from French, means
“between-taker” or “go between.”
Our definition involves four aspects:
1. The creation process.
2. The devotion of time and effort.
3. The assumption of risk.
4. Rewards of independence, satisfaction, money.
Entrepreneurship is the process of creating
something new with value by devoting the
necessary time and effort, assuming the
accompanying financial, psychic, and social risks,
and receiving the resulting rewards of monetary
and personal satisfaction and independence.
 Earliest Period
 Capitalist entered into a contract with the go-
between to sell his goods
 Capitalist was passive risk bearer
 Merchant bores all the physical and
emotional risk
 Middle Age & Entrepreneurship

The term Entrepreneur was used to describe both an actor

and a person who managed large production process.

 17 CENTURY
th

 Entrepreneur was a person who entered into a contract with the

government to provide products or perform a service.
 Richard Cantillon, an economist of the 1700s, developed theories of
the entrepreneur and is regarded as the founder of the term.
 He viewed the entrepreneur as a risk taker who buys at certain price
and sells at an uncertain price.
 18 CENTURY
th

Entrepreneur was distinguished from the capital provider.

Inventions of Eli Whitney and Thomas Edison were unable to
finance their inventions. Both were capital users
(Entrepreneurs),not capital providers(venture capitalists)
 19th AND 20th CENTURIES
The entrepreneur “contributes his own initiative, skill and ingenuity in planning ,
organizing and administering the enterprise, assuming the chance of loss and gain
Andrew Carnegie built the American steel industry, one of the wonders of industrial
world, primarily through his competitiveness rather than creativity.

In the middle of 20th century, the notion of an Entrepreneur As An Innovator

Was Established
 Definition Of Entrepreneur Today
In almost all definitions of entrepreneurship, there is agreement that we are talking about
a kind of behavior that includes:
1. Initiative taking
2. The organizing and reorganizing or social/economic mechanism to turn resources and
situations to practical account
3. The acceptance of risk or failure
To an Economist, an entrepreneur is one who brings resources, labour, materials and
other assets into combinations that make their value greater than before, and one who
introduce changes, innovations and new order
To a psychologist, such a person is typically driven by certain forces-the need to
obtain something, to experiment, to accomplish or perhaps to escape the authority of
others.
Entrepreneurship is the dynamic process of creating
incremental wealth. So our definition of entrepreneurship
involves four aspects:
1. Entrepreneurship involves the creation process
2. It requires the devotion of the necessary time and effort
3. It involves assuming the necessary risks
4. The reward of being an entrepreneur are independence,
personal satisfaction and monetary reward.
The Entrepreneurial Decision
Process
 Entrepreneurial Decision Process
refers to the decision to leave a present career or
lifestyle (to pursue that ‘big idea’) due to:
 Unpleasant work environment
 Disruption
 Completion of educational degree.

How will the completion of your educational

program influence your entrepreneurial
decision process? Got any ‘big ideas’?
Change From Present Lifestyle
 Desirability Of New Venture Formation

Aspects of situation that make it desirable to start a new

company
American culture places a high value on being you own
boss.
Studies indicate that high percentage of founders of
companies had father/mothers who value independence.
Encouragement from teachers and peers
 Possibility Of New Venture Formation
Factors making it possible to create new venture

The market must be large enough and the

entrepreneur must have the marketing know-how
to put together entire package
Personal savings, credit, friends
Risk-capital availability plays an essential role in
the development and growth of entrepreneurial
activity.
Types Of Start-ups
 Three types of startup ventures
1.A lifestyle firm exists primarily to support the owners and
usually has little growth opportunity.
A lifestyle business is a business set up and run by its founders
primarily with the aim of sustaining a particular level of income
and no more; or to provide a foundation from which to enjoy a
particular lifestyle. ... These are firms that depend heavily on
founder skills, personality, energy, and contacts
2.Foundation companies are firms created from research and
development that lay the foundation for a new industry.

3.High powered ventures (“gazelles”) are new companies that

receive the greatest Interest and publicity.
For example, Apple, Dell, Yahoo, Cisco, Microsoft, Amazon,
and Google were gazelle companies during their initial
years. Facebook was a gazelle company, and so was Twitter.