WELCOME TO

III SEMESTER
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ENTREPRENEURSHIP AND NEW

VENTURE CREATION

 Course advisor:
Dr. M.K. Manoharan
 Email:
drmanoharan_63@yahoo.co.in
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Module.1
 THE NATURE AND IMPORTANCE OF
ENTREPRENEURS
 Historical Background
Growing income inequalities, Regional
disparities, Urban & Rural imbalance and
Huge backlog of unemployment makes the
policy makers to concentrate on
Entrepreneurship as a critical input in the
process of devt.
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 Thrust areas in policy guidelines

Entrepreneurship training, Vocational
skills and Professionalism
 Origion ( 1970)

From Gujarat Industrial investment

Corporation ( GIIC)
Establishment of CED in 1979( Centre for
Entrepreneurship Development)
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Entrepreneurship development
 Gained momentum after 1980

 Institutions like SSIDC’s,

DIC’s, Chamber of Commerce
and Industries, Confederation
of Indian Industries also
suppliments the EDP.
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ENTREPRENEURSHIP
 What is Entrepreneurship?
It is the process of mind to take calculated risk
with confidence to achieve pre-determined
objectives.
 Conventional view

Entrepreneurs are born and it is hereditary

Entrepreneurship is a monopoly of some
communities and restricted to certain regions.
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 Modern view
It does not belong to any particular region,
community, education, sex, age etc.,
 Definition

J. S. Mill & Marshall define ‘Profit’ as a

compensation payable to the entrepreneur for his
risk bearing function.
Prof. Knight defines ‘Profit’ as a reward for the
uncertainty bearing capacity of entrepreneur
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Working Definition
 An entrepreneur is a person who
combines various factors of
production, processes raw
material, converts the raw material
into a finished product and creates
utility and sells the produce in the
market to earn profit.
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Salient Features
 Entrepreneurship is need-based function
 Production is not for self –consumption
 Profit oriented
 Entrepreneur posses distinct qualities like
risk bearing, goal setting, information
seeking, time planning , maintaining good
interpersonal relations, innovator and team
builder
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Continue….
 He posses the different D’s for success. ie.,
Desire, Discipline, Determination, Dedication,
Devotion, Dignity.
 He is a creator of wealth
 He takes decision about
What to produce --- Product selection
How to produce --- Technology
Where to produce --- Location
When to produce --- Time planning/Duration
For whom to produce --- Target consumers/
Market
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Misconceptions about Entrepreneurs

 Entrepreneurs are born

 They are profit-hungry
 They are dishonest
 They are favoured by luck.
 Only rich people can become
entrepreneurs
 It is a monopoly of certain communities
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 Most of what you hear about

entrepreneurship, says America’s leading
management thinker, is all wrong. It’s not
magic; it’s not mysterious; and it has
nothing to do with genes. It’s a discipline
and, like any discipline, it can be learned.

- Peter F. Drucker
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Distinction between
Entrepreneurs and Managers
Entrerpreneur :
1. Entrepreneurial function is organising
production
2. Decision making & calculated risk bearing
3. Has all round responsibility
4. Public relation skills & team building
5. High level of achievement and motivation
6. Innovative, creative, imaginative soul
7. Challenges established values and attitudes
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Continue….
 Managers :
1. Managers are employees (specific role)
2. Limited scope for innovation & creativity
3. Managerial jobs are transferable
4. Managers do not bear risk
5. Managers Need team building & leadership role
6. Managers need knowledge, insight and
expertise (KIE)
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Entrepreneurial Decision process

 Though many individuals create new idas,
few can bring their ideas to the market and
create a new venture.
 ED process which entails a movement from
something to something-ie., a movement
from a present life style to forming a new
enterprise
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ED PROCESS….
 Form new enterprise
Desirable: Possible:
1. Cultural 1. Government
2. Subcultural 2. Background
3. Family 3. Marketing
4. Teachers 4. Financing
5. Peers 5. Role models
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Desirability & possibility of New

Venture formation
 The perception that starting a new company
is desirable results from an individuals,
culture, Subculture, family, teachers and
peers.
 No culture is far against entrepreneurship.
Many subculture shapes value system
operate within a cultural framework.
 Factors making it possible to create a new
venture. The govt provides infrastructure
and help.
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Role of Entrepreneurship in
Economic development
 Increasing per capita output and Income
 Involves initiating and constituting change
in the structure of business and society
 The theory of economic growth depicts
innovation as the key not only for
developing new products but also in
stimulating investment interest in the new
ventures
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 Production evaluation process: Process for

developing & commercializing an innovation
 Iterative Synthesis: The intersection of
knowledge & social need that starts the product
development process
 Ordinary innovations: New products with little
technological change
 Technological innovations: New products with
significant technological advancement
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 Breakthrough innovations: New products

with some technological change
 Government as an innovator: Govt active
in commercializing technology
 Technological Transfer: Commercializing
technology in the laboratories into new
products.
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Intrapreneurship
 Entrepreneurship within existing
organization is called as Intrapreneurship.
 Intrapreneurs are not necessarily the
inventors of new products or services but
are the persons who can turn ideas or
prototypes into profitable realities.
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Entrepreneurial careers &

Education
 More awareness on entrepreneurship
 There has been increased interest in
entrepreneurial careers & education
 Thousand & thousands of small cottage
companies are formed
 Women become increasingly more active in the
workforce
 No of families earning two incomes grows.
In spite of these increase many people do not
consider entrepreneurship as a career.
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Life-Cycle approach
This approach conceptualizes entrepreneurial
career in Nine major categories.
1. Educational environment
2. Individual’s personality
3. Child-family environment
4. Employment History
5. Adult Devt History
6. Adult non-work History
7. Current work situation
8. Individuals current perspective
9. Current family situation
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The Future of Entrepreneurship

 Entrepreneurship means different things to
different people and viewed in different
perspective.
 However, in spite of differences, there are
some commonalities will continue to be the
driving force behind the notion of
Entrepreneurship in future.
 We are living in the age of entrepreneurial era.