Entrepreneurship

 Entrepreneurship is the ability and readiness to develop, organize

and run a business enterprise, along with any of its uncertainties in
order to make a profit. The most prominent example of
entrepreneurship is the starting of new businesses.
 Entrepreneurship is a trait possessed by an entrepreneur.
 Entrepreneur thus is an innovator who carries out new
combinations in ever changing environment to initiate & accelerate
the process of economics social & technological development.
Busines Enterprise Initiates
Individual Entrepreneur Organizes
s Manages
Controls
Risk taking
Innovates
Pools up
A Model of Entrepreneurship resources
Entrepreneur
Meaning and Evolution of concept

 It varies from country to country, time to

time & the level of economic
development of the place.

 This word is derived from French verb

“entreprendre” which means to undertake.
Entrepreneur meaning
 In the early 16th century, the Frenchmen who organized and
led military expeditions were referred to as “entrepreneurs”
  During the early 18th century French economist Richard
Cantillon used the term entrepreneur for business. 
 According to Joseph Schumepeter, “An entrepreneur in an
advanced economy is an individual who introduces
something new in the economy, a method of production not
yet tested by experience in the branch of manufacture
concerned, a product with which consumers are not yet
familiar, a new source of raw material or of new market and
the like”.
 According to Cantillon “An entrepreneur is the agent who
buys factors of production at certain prices in order to
combine them into a product with a view to selling it at
uncertain prices in future”.
 Characteristics of Entrepreneur
1. A good entrepreneur should be action
oriented enthusiastic & energetic & ready to
take risk at all levels to achieve the goal.
2. Should have unwavering determination &
commitment.
3. Creativeness & result oriented, lord working
4. Accepts responsibilities with enthusiasm,
5. Self confident deactivated & self disciplined
6. Both thinker & doer planner & worker,
7. Future vision intelligent, imaginative & self
directed
Qualities of Entrepreneur
Success and achievement
Risk bearer
Opportunity explorer
Planner
Stress Taker
Facing Uncertainties
Independent
Flexible
Self-confident
Motivator
 Functions of an Entrepreneur
Primary Other Functions Functions important for
Function developing countries

Planning Diversification of production Management of scarce

resources

Organizing Expansion of the enterprise Dealing with public

Decision making Maintaining cordial employer & Engineering
employee relations

Management Talking labor problems New product

development
Innovation Coordination with outside Parallel oppurtunities
agencies
Risk bearing Marketing
Leading Management
Controlling Customer relation
Types of entrepreneur
Broadly Classified according to type of
◦ Business
◦ Use of technology
◦ Motivation
◦ Growth
◦ Stages of development
◦ Area
◦ Age and gender
◦ Scale of operation
◦ Other type
According to the type of business
According to the use of technology
According to motivation
According to the growth
According to the stages of development
According to the area
According to the age & gender
According to the scale of operation
Other type
Intrapreneurship
Intrapreneurship is the entrepreneurship
with in an existing business structure.
It bridges the gap between the science and
market place.
The differences in the entrepreneurial &
managerial domains have contributed
towards an increased need for
intrapreneurship.
Elements of Intrepreneurship

1. New business venturing

2. Innovations
3. Self-renewal
4. Proactiveness
 Comparison Of Intrapreneur, Entrepreneur
And Managers
Point Intrapreneur Entrepreneur Manager
Goal Independent, innovates new Independent, starts new Delegates & supervises more
management ideas venture & leads direct than direct involvement
involvement

Status Not concerned about Not concerned about status Concerned about status symbol
traditional status, but wants
recognition
Risk Owns moderate risk Bears all the risk & Does not bear any risk
uncertainty

Rewards Gets fixed reward for his Since there is risk, he may get Works for salary for his service
work. Many get extra for his profit or loss depending on which is fixed and definite.
innovations outcome

Innovation Innovative Very innovative Need not be innovative. He

manages the ideas of top
management

Decision Moderate, limited to his Very much involved in Delegates the decisions of top
Making work decision making management
Entrepreneurship
 It is a process undertaken by entrepreneur to augment his business
interests.
 It is defined as an indivisible process flourishes, when the
interlinked dimensions of individual psychological
entrepreneurship, entrepreneur traits, social encouragement,
business opportunities government policies, availability of
resources, opportunities coverage towards the common good,
development of society & economy.
 Entrepreneurship in today’s context in the product of teamwork &
ability to crate, build & work as team.
 It is also a process of identifying opportunities in the market place,
arranging the resources required to pursue these opportunities &
inverting the resources to exploit the opportunities for better gains.
Entrepreneurship
 Higgins defines the function of foreseeing investment &
production opportunities, organizing an enterprise to
undertake a new production process, raising capital
hiring labour, arranging the supply of raw materials,
finding site, introducing new technique, discover age
new sources of raw materials & selecting top managers
for day to day operation.
 Cole’s explains the purposeful activity of an individual
or a group of associated individuals undertaken to
initiate, maintain or organize profit by production or
distributing of economic goods & services.
Characteristics of entrepreneurship

1. Innovation
2. Risk-taking
3. Skillful management
4. Organization
5. Decision making
6. Making the enterprise a success
Development of Entrepreneurship
Startedin olden days.
Contemporary period of entrepreneurship
began with innovators.
Stages in entrepreneurial process
Identificationof an opportunity
Evaluation of the opportunity
Preparation of the business plan
Determination and organizing the
resources
Management of the enterprise
Identification of opportunity
May be from own ideas or external
resources
 Evaluation of opportunity
 It involves length of opportunity, its real perceived value,
its risks & returns, its fit with personal skills and goals of
entrepreneur & its uniqueness or differential advantages in
its competitive environment .
 The length of opportunity and size & share are two main
aspects for deciding the risk & gains or profits. SWOT
(Strength, weakness, opportunities & treats) analysis.
 This plan includes
◦ 1. Description of product
◦ 2. Agreement of opportunity
◦ 3. Assessment of the entrepreneur
◦ 4. Resources needed
◦ 5. Amount & sources of capital
◦ 6. Profit expected
Development of a business plan
Business plan should contain
◦ Title of project, table of contents & executive
Summary
◦ Description of business & industry.
◦ Technology plan
◦ Financial plan
◦ Organization plan
◦ Production & operation plan
◦ Marketing & distribution plan
◦ Summary
Determination & organizing the
resources
Begins with assessment of present
resources
Estimation of resource required
Risk involved should be calculated
Management of enterprise
After resources are acquired, the
entrepreneur must use them to implement
the business plan
Increased administrative expenses
Some tines it could result in heated
arguments
Role of Entrepreneurs in economic
development
Provide employment opportunities
Innovate new technologies
Mobilize the local resources
Improves standard of living
Attract Investments
Insures balanced regional development
Economic Independence
Improves per capita income
Entrepreneurship in India
Started in 1850s with the start of cotton
mill in Bombay.
Past
◦ Manufacture and supply was based on demand
◦ All members of the family were involved
◦ Controlled by caste system
◦ Skills were inherited from ancestors
◦ Trade activity was based on caste system
Present
Barriers of entrepreneurship
1. Lack of capital
2. Lack of technical knowledge
3. Economic business cycles
4. Non availability of raw materials and
resources
5. Government regulations
6. Obsolescence of technology or idea
7. Unstable and unpredictable markets
8. Globalization and entry of foreign goods
9. Risk
Women entrepreneur concept
Women Entrepreneurs means the women or a
group of women who initiate, organize and
operate a business enterprise.
 Government of India has defined women
entrepreneur as ‘An enterprise owned and
controlled by a women having a minimum
financial interest of 51 percent of a capital and
giving at least 51 percent of the employment
generated in the enterprise to woman.’
 Steps to be taken to develop
women entrepreneurship
 Provide basic education & establish special institutions to train women
entrepreneurs.
 Conduct especial workshops to women for better awareness
 Liberal financial support to motivate women entrepreneurs
 Favourable credit policies to women
 Provide better marketing help to women entrepreneurs
 Provide need- based training for development of skills & entrepreneurship.
 Establish self-help groups, Voluntary agencies & social welfare
organization for women entrepreneurs
 Provide concessions to women entrepreneurs.
 Provide a common platform to all the concerned agencies & R & D
organization to achieve an interacted approach for promoting women
entrepreneurs.