Entreprenuership

Development
Hello!
Adrimar A. Adriano
Negosyo Center - Business Counsellor
Pagsanjan, Laguna

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Who is an Entrepreneur ….

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 Introduction
• Entrepreneurship is defined as the process of using private
initiative to transform a business concept into a new venture or
to grow and diversify an existing venture or enterprise with high
growth potential.
• Entrepreneurship development (ED) refers to the process of
enhancing entrepreneurial skills and knowledge through
structured training and institution-building programs. This
accelerates employment generation and economic development.
• Entrepreneurship development focuses on the individual who
wishes to start or expand a business.

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• Myth 1: Entrepreneurs Are Doers, Not Thinkers
• Myth 2: Entrepreneurs Are Born, Not Made
• Myth 3: Entrepreneurs Are Always Inventors
• Myth 4: Entrepreneurs Are Academic and Social Misfits
• Myth 5: Entrepreneurs Must Fit the “Profile”
• Myth 6: All Entrepreneurs Need Is Money
• Myth 7: All Entrepreneurs Need Is Luck
• Myth 8: Ignorance Is Bliss For Entrepreneurs
• Myth 9: Entrepreneurs Seek Success But Experience High Failure Rates
• Myth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers)
• Myth 11: Successful entrepreneurship needs only a great idea
• Myth 12: Entrepreneurship is Rastogi
Anubha easy. | VSB
• Myth 13 : You have to be young to be an entrepreneur.
• Myth 14: You must have a degree in business to be an entrepreneur.
 CONCEPT OF ENTREPRENEURSHIP
• Entrepreneurship is the act of setting out on your own and starting a
business.
• It is basically communicative and management functions to mobilize
financial and material resources.
• Entrepreneurs play role in strengthening economic growth of a country
as well as speeds up modernization by doing research and development.

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Benefits of entrepreneurship:
Create own destiny. Make difference.
Reach one’s full potential. Reap extraordinary profits.
Societal responsibility and recognition. Opportunity to engage in work of their
choice.

Drawbacks of entrepreneurship:
Uncertainty of income.
Risk of losing entire investment. Long hours of hard work.
Lower quality of life until the business gets established. High level of stress,
complete responsibility.
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 According to George Bernard Shaw, people fall
“
into three categories:

(1) those who make things happen

(2) Those who watch things happen, and
(3) those who are left to ask what did happen.
Generally, Entrepreneurs fall under the first category.

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ENTREPRENEURS
is any person that continuously
seeks and acts upon
opportunities for economic and
or social gains through applying
the principle of creative problem
solving.

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 ENTREPRENEUR
• The word entrepreneur is derived from the French verb
“enterprendre”, which means “to undertake”.
• Entrepreneur is the person who brings together the
factors of production and combines them into a product.
• He organizes and manages a business unit assuming
the risk for profit.
11/28/2014 PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

CHARACTERISTICS OF AN
ENTREPRENEUR
 persistent self-demanding

creative self-confident

responsible risk-taking

inquisitive restless

goal-oriented action-oriented

Anubha Rastogi | VSB

independent enthusiastic
 communication organizing and planning

math teamwork

problem-solving social

technology and computer adaptability

decision-makingAnubha Rastogi | VSB basic business

QUALITIES OF AN
ENTREPRENEUR
 Delegator
 core concepts of management leadership

 Independent
 Sovereignty

 Determination
 being determined; firmness of purpose
•Relationship-Builder
 strong, deep, or close association or
acquaintance between two or more people

•Knowledge-Seeker
 lover of learning

Promoter:
maker arrangements for events
 • Perseverance:
 steady persistence in a course of action

• Initiative:
 an introductory act or step; leading action
•Clear Goal Setting
 establishing specific, measurable,
achievable, realistic and time-targeted

•Money Management
 Investment management
 • Communication
 Power of communicating with others

• Hard working
working diligently and for long hours

•Passion & Motivation

 Keep concentration & inspiration
on specific work
•Disciplined Dedication
 controlled form of behavior or way of working

•Adaptability & Flexibility

 To cope with the changing circumstance

Planning
The process of thinking about
organizing activities
 •Networking
Abilities
 Managing a chain relationship

•Creative Thinker
 Dynamic thoughts to earn profit
 RISKS FACED BY ENTREPRENEURS
1. FINANCIAL RISK:
• The entrepreneurship has to invest money in the
enterprise on the expectation of getting in return
sufficient profits along with the investment.
• He may get attractive income or he may get only
limited income. Sometimes he may incur losses.

2. PERSONAL RISK:
• Starting a new venture uses much of the
11/28/2014 PRAJEESH E MENON KVM COLLEGE,
entrepreneur’s energy and time.
Cherthala, Kerala

• He or she has to sacrifice the pleasures attached

to family and social life.
3) CARRIER RISK:

• This risk may be caused by a number of reasons

such

as leaving a successful career to start a new

business

or the potential of failure causing damage

to professional reputation.

4) PSYCHOLOGICAL RISK:

• Psychological risk is the mental agonies an

entrepreneur bears while organizing and running

a business venturesome entrepreneurs who have

suffered financial catastrophes have been unable to

bounce back.
 TYPES OF ENTREPRENEURS

11/28/2014 PRAJEESH E MENON KVM COLLEGE,

Cherthala, Kerala
 ON THE BASIS OF MOTIVATION
Pure Entrepreneur:
• They believe in their own performance while undertaking
business activities.
• They undertake business ventures for their personal
satisfaction, status and ego.
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

• They are guided by the motive of profit.

• For example,
 ON THE BASIS OF MOTIVATION

Induced Entrepreneur:
• He is induced to take up an entrepreneurial activity with
a view to avail some benefits from the government.
• These benefits are in the form of assistance, incentives,
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

subsidies, concessions and infrastructures.

 ON THE BASIS OF MOTIVATION
Motivated Entrepreneur:
• These entrepreneurs are motivated by the desire to make use of
their technical and professional expertise and skills.
• They are motivated by the desire for self-
fulfillment.
Spontaneous Entrepreneur:
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

• They are motivated by their desire for self- employment

and to achieve or prove their excellence in job performance.
• They are natural entrepreneurs.
 ON THE BASIS OF TYPE OF
BUSINESS

1) Business Entrepreneur: He is an individual who discovers an idea to start

a business and then builds a business to give birth to his idea.

2) Trading Entrepreneur: He is an entrepreneur who undertakes

trading activity i.e; buying and selling manufactured goods.

3) Industrial Entrepreneur: He is an entrepreneur who

undertakes
manufacturing activities.

4) Corporate Entrepreneur: He is a person who demonstrates his innovative

skill in organizing and managing a corporate undertaking.

5) Agricultural Entrepreneur: They are entrepreneurs who undertake

agricultural activities such as raising and marketing of crops, fertilizers and
other inputs of agriculture. They are called agripreneurs.
ON THE BASIS OF USE OF TECHNOLOGY

Technical Entrepreneur:
• They are extremely task oriented.
• They are of craftsman type.
• They develop new and improved quality
goods because of their craftmanship.
• They concentrateCherthala,more on production than
PRAJEESH E MENON KVM COLLEGE,
Kerala

on
marketing.
ON THE BASIS OF USE OF TECHNOLOGY

Non-Technical Entrepreneur:
• These entrepreneurs are not concerned with the
technical aspects of the product.
• They develop marketing techniques and
distribution strategies to promote their business.
• Thus they
PRAJEESH Econcentrate
MENON KVM COLLEGE, more on marketing
Cherthala, Kerala

aspects.
ON THE BASIS OF USE OF TECHNOLOGY

Professional Entrepreneur:
• He is an entrepreneur who starts a business
unit but does not carry on the business for
long period.
• He sells out the running business and starts
another venture.
Functions of an Entrepreneur
 PLANNING
 Estimation of capital resources
 Selection of location
 Study of availability of labor forces
 Scanning for the best suitable idea
 Studying marketing strategy
 Management
• Manages day to day activities
• Involves in directions
 Organizing And Decision Making
 Determining the objects of the business enterprise
 Procurement of machinery , material, men etc.
 Acquisition of efficient technology
 Development of market for the product
 INNOVATION
• Launching of new product
• Introduction of new technology
• Creation of new market
Risk And Uncertainty Bearing

 Takes the responsibility

 Takes risks
 ENTREPRENEUR VS MANAGER

ENTREPRENEUR MANAGER

• Owner of the business • Servant of the business

• Profit • Salary

• Full risk bearing • No risk bearing

• All functions • Managerial functions only

• Innovator • Executor
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

11/28/201
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 INTRAPRENEURS
• This type if entrepreneurs have come to be called Intrapreneurs.

• They believe strongly in their own talents.

• They have desire to create something of their own.

• They want responsibility and have a strong drive for individual

expression and more freedom in their present organisational
structure.
• When this freedom is not forthcoming,
PRAJEESH they become less productive
E MENON KVM COLLEGE,
Cherthala, Kerala
or even leave the organisation to achieve self actualisation
elsewhere.

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 ENTREPRENEUR VS INTRAPRENEUR
◎ ENTREPRENEUR
INTRAPRENEUR

• Independent
• Dependent
• Need not be highly educated
• Highly educated
• Fund raising
• No fund raising
• Risk bearing
• No risk bearing
• Routine work
• Specialist
• Operation from outside
• Operation from inside
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

• Strong authoritarian
• Less authoritarian

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 COPRENEUR

• Copreneurs are entrepreneurial couples who work

together as co-owners of their business.
• They are creating a division of labour that is based on
expertise as opposed to gender studies show that
companies co-owned by spouses represent one of the
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

fastest growing business sectors.

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 ULTRAPRENEUR
• The concept of ultrapreneuring is to identify a business
opportunity, determine its viability and form a company.
• It requires assembling a super competent management team,
who then develop, produce and markets the product or service
in the shortest optimum time period.
• They create business and then sell out, merge or combine.
• In short, going beyond theE MENON
PRAJEESH simple undertaking and keeping a
KVM COLLEGE,
Cherthala, Kerala

focus on the benefits of that undertaking provides a sensible

definition of the word Ultrapreneur.

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 ENTREPRENEURIAL MOTIVATION

11/28/2014 PRAJEESH E MENON KVM COLLEGE,

Cherthala, Kerala
11/28/2014 PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala
Motivation means….

• Willingness to exert high levels of effort toward organizational

goals
• Conditioned by the effort’s ability to satisfy some individual
need
• Motivation can be described in terms of intensity,
persistence, and direction
11/28/2014 PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala
Definition…
• According to Dalton E. McFarland, “Motivation refers to the
way in which urges, drives, desires, strives, aspirations and
needs direct, control or explain the behaviour of human being”

11/28/2014 PRAJEESH E MENON KVM COLLEGE,

Cherthala, Kerala
Nature of Motivation…

• Motivation: The set of forces that leads people

to behave in particular ways
• The Importance of Motivation
– Performance depends upon motivation, ability, and
environment
– P=M+A+E
11/28/2014 PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala
Concepts…

• Needs and Motives

• Goals

• Behaviour

• Incentives
11/28/2014 PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

• Instincts
 Process of Motivation

GOAL

11/28/2014 PRAJEESH E MENON KVM COLLEGE,

Cherthala, Kerala
BEHAVIOR MOTIVE
 4. Plan and
manage effectively

3. Assemble an expert
team to execute
the business concept

Anubha Rastogi | VSB

2. Test the opportunity in the
marketplace

1. Recognize opportunity
 being your own boss

doing something you enjoy

being creative

setting your own schedule

having job security

Anubha Rastogi | VSB

making more money

being recognized in the community

 ARE
ENTREPRENEUR
BORN OR MADE?

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 Are Entrepreneur Born or Made?

Entrepreneur are born Entrepreneur are made

 Interaction of heredity and  Entrepreneurship through
environment company
 Risk taker  As a exercise

 Bright Individuals  Capital offering

 Core abilities  Inherit through belongings

 Inherent qualities  learning trade secret

 Made by experiences
 Attitude
 Others influence

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 Bill gates and Steve jobs’
children are not born
entrepreneur

Coders Trust has been

making entrepreneurs

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 Decrease Unemployment
 Reduce Capitalization
 Increase Productivity
 Creates New Technologies , Products And Services
 Local resource Can Be Used
 Improve Living Standard
 Economic Independence
 Overall development
 Creating New Forms Of Business
 Role of Entrepreneurship in
Economic Development
 Investment
 Employment
 Diversity in products and services
 International trade
 Contributes to gross domestic
 product
CONTRIBUTES TO GROSS
DOMESTIC PRODUCT
Thanks!
Any questions?
You can find me at:
Adrimar Aquino
adrimar.adriano1996@yahoo.com
09770989840
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