Entrepreneurship

Development
 Entrepreneurship Development
Knowledge

Motive
Opportunity
Enterprise
+ Risk Bearing
Innovation = Development

Skills
 What is Entrepreneurship
 In the middle of the 20th century the notion of
entrepreneur as innovator was established.
 Innovation, the act of introducing something
new, is one of the most difficult tasks for the
entrepreneur.
 Entrepreneurship is the dynamic process of
creating incremental wealth. (Hisrich,
Peters)
 What is Entrepreneurship
 “Involves all the functions, activities, and action
associated with the perceiving of opportunities and
the creation of organizations to pursue them"
(Bygrave & Hofer, 1991).

 “Entrepreneurship is the attempt to create value

through recognition of business opportunity, the
management of risk taking appropriate to the
opportunity, and through the communicative and
management skills to mobilize human, financial and
material resources necessary to bring a project to
fruition” (John Kao and Howard Stevenson, 1990)
 Brief Overview of Economic History
 1945 end of World War II
 a decade of rapid economic growth and increase in
small business
 1960 competition foreign countries import/export
 Deregulation in many industries brought increased
competition
 Economic change in large companies
 downsizing/outsourcing
 reduction in job security/career opportunity
 unprecedented opportunity
 increased expansion of small business arena
 What is Entrepreneurial
Competencies or Traits ?

The characteristics possessed by an entrepreneur

which result in superior performance of an
enterprise are called entrepreneurial competencies
or traits.
 Entrepreneurial Competencies or Traits
 Nervous Control
 Active  Objective oriented
 Be Positive  Persistence
 Creative & Communicative  Quality Conscious
 Decisive  Responsible
 Efficiency Seeker  Self-confidence
 Friendly  Tactful
 Groomed  Understandable
 Hardworking  Visible
 Initiative & Information
Seeker
 Work oriented
 Joyful
 Xerox the idea in action
 Knowledgeable
 Yeoman (help in time of
need)
 Looking for opportunity  Zeal (enthusiasm)
Relationship between Entrepreneur
and Entrepreneurship
Entrepreneur Entrepreneurship
 Person  Process

 Organizer  Organization

 Innovator  Innovation

 Risk bearer  Risk bearing

 Motivator  Motivation

 Creator  Creation

 Visualizer  Vision

 Leader  Leadership

 Imitator  Imitation
 Types of Entrepreneurs
According to Clarence Danhol: Study of the American
Agriculture
1. Innovating Entrepreneurs (Introduce new goods,
change the method, discover new market etc)
2. Imitative Entrepreneurs (Adopt successful innovation)
3. Fabian Entrepreneurs (Adopt the innovation at the last
stage, when they feel that failure to do changes brings
great loss)
4. Drone Entrepreneurs (Refusal to adopt changes even at
the cost of severely reduced returns)
 Types of Entrepreneurs
According to Other Behavioural Scientists:
1. Solo Operators (Work alone)
2. Active Partners (Active partners, run
enterprise as a joint venture)
3. Inventors (Research and innovative
activities to invent new approach or product)
4. Challengers (Who start industry)
5. Buyers (Buy ongoing enterprise)
6. Life timers (Business as an integral part to
their life e.g., family business)