ENTREPRENEURSHIP

RELATIONSHIP OF ENTREPRENEUR AND

ENTREPRENEURSHIP
ENTREPRENEUR ENTREPRENEURSHIP
1. Person 1. Function/process
2. organizer 2. Organization
3. Innovator 3. Innovation
4. Motivator 4. Motivation
5. Leader 5. Leadership
6. Creator 6. Creation
7. Risk bearer 7. Risk bearing
8. Initiator 8. Imitative
9. Visualiser 9. Vision
10. Technician 10. Technology
11. Imitator 11. Imitation
12. Administrator 12. Administration
DEFINITION
According to A.H. COLE “Entrepreneurship is the

purposeful activity of an individual or a group of associated

individuals undertaken to initiate, maintain or organize a

profit-oriented business unit for the production or distribution

of economic goods and services”.

Characteristics of Entrepreneurship:
 Innovation
 Risk bearing
 Decision making
 Organization and management
 Making the enterprise a success
 Accepting challenges
 Handling economic uncertainty
 Problem solving
 Opportunity seeking
 Systematic planning
FACTORS STMULATING ENTREPRENEURSHIP

 Capital formation
 Entrepreneurship development programmes
 Training facilities
 Suitable environment
 Collateral arrangement
 Ideal climate for innovation
Factors Affecting Entrepreneurship Growth
 Economic factors
 Social factors
 Cultural factors
 Personality factors
 Psychological and Sociological factors
PHRASES OF ENTREPRENEURSHIP
DEVELOPMENT

Initial phrase
Development phrase
Support phrase
ENVIRONMENT FOR ENTREPRENEUR
i. Political stability and Government policy
ii. Social recognition for an entrepreneur
iii. Family background and parental influence
iv. Standard of education and technical knowledge
v. Caste and religious affiliation
vi. Financial stability and availability
vii. Availability of supporting facilities
viii. Socio-economic environment and achievement
motivation
ix. Personal skills and personality
ENTREPRENEURSHIP AS A CAREER
Positive Aspects of Entrepreneurship:
 Unlimited power
 Numerous opportunities for his self development.
 Immense satisfaction
 Monetary rewards
 Command and respect
 Contribution to the development of country
 Recognized for his outstanding effort
Negative aspects of entrepreneur

 Constrained by various people

 Frustration due to limited resources
 Work long
 Face disappointment
 Work with tension
Factor affecting Entrepreneur Growth

• Economic factors
• Social factors
• Cultural factors
• Personality factors
• Psychological and sociological factor
Economic factor

 Lack of adequate basic facilities

 Non-availability of capital
 Non- availability of raw materials and finished good
 Greater risks involved in business
 Non-availability of skilled labor
 Social Factors

o Customs and traditions

o Rationality of the society
o Social system
o Social set-up
 Personality factors

Suspect factors
Emergence of planning
Psychological and sociological factor
 According to McClelland, “ need achievement”.
 Parent influence
 Radical loss of status is the root cause of entrepreneurship
 Evans ---Three kinds of entrepreneurs
(a) Managing entrepreneurs
(b) Innovating entrepreneurs
(c)) Controlling entrepreneurs
 According to Restow has examine inter-generational changes in the
families of entrepreneur believes that
 The first generation seeks wealth,
 The second prestige
 The third art and beauty