CHAPTER I -

ENTREPRENEURIAL
DEVELOPMENT
Concept of
Entrepreneurship
The word “entrepreneur” is derived from
the French verb enterprendre, which
means ‘to undertake’. This refers to those
who “undertake” the risk of new
enterprises. An enterprise is created by an
entrepreneur. The process of creation is
called “entrepreneurship”.

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Definitions of
Entrepreneurship
“Entrepreneurship is the process of bearing
the risk of buying at certain prices and
selling at uncertain prices.” (The 18th
Century Definition)

“The concept of bringing together the

factors of production.” (The 19th Century
Definition)
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WHAT IS ENTREPRENEURSHIP
Entrepreneurship is the ability and
readiness to develop, organize and run a
business enterprise. It is the oldest form of
business organization and majorly drives
the modern global economy, the primary
source of job creation, and in the broadest
sense is any enterprise or effort that adds
value to the lives of people. 4
Types of
Entrepreneurs

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Small Business
Entrepreneurship
These type of startup businesses can only be run by the
owners and the number of employees are very low.
Along with this, the revenue generation are not much
and these organizations continuously focusing on getting
more clients and development of its products or services.
This type of business can be run with family members
and with friends as partner. However, several small
businesses are there that provides innovative products or
services and grow exponentially. Examples of small
businesses consist of grocery shops, small industrial
cottage businesses, consultants, hairdresser parlors,
travel agents, electricians, carpenters, etc.
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Scalable Startup
Entrepreneurship
These types of entrepreneurs believe that their ideas
can change the world and they search for investment
from venture capitalists. These organizations look for
brightest mind for the business and they tend to set
up a scalable business model. On account of the
massive earnings, they attract almost all the risk
capital.

Examples of scalable startup entrepreneurship are

Instagram, Facebook, Online shopping for electronics,
etc.
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Advantages
1. Choice Liberty
There is a great sort of freedom offered by this
entrepreneurship type to individuals. Creativity is one of
the main things that play a solid role in beginning and
operation of the business. Almost every component of
the organization is controlled by entrepreneur that
includes location and nature of the operation.

2. Low Investment
A small scale business can begin with limited capital
without too much money. The entrepreneurs who have
little low money usually go with this idea. 8
3. Flexibility
Every company has its set of requirements and demands
for the operation of business successfully. The same is
the case with a startup as there are chances that it may
not get fulfilled even by an established provider.

4. Questioning Freedom
There will be a great level of liberty provided to
entrepreneurs for asking questions that they may not get
while working for others. It helps in finding incorrect
steps in the system quite easily.
Having this freedom not only results in saving time but
also assists in creating a better product.
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Large company
entrepreneurship
The large organizations have finite life cycle and they
focus on providing new products or services to the
customers for sustainability and longevity of the
business. The demand of the customers and trends
are changing eventually along with competition,
legislation that forced the large organization in
disruptive innovation and create new products for
entirely new market. However, the large size of the
organization makes the disruptive innovation difficult.
Examples of large company entrepreneurship include
Microsoft, Google, Samsung, BMW, etc.

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Social entrepreneurship
Social entrepreneurs are real innovators. They
create products and services by which is solved
social needs and problems. Their main focus is to
keep the world safe. Profit maximization is not their
theme. Under these categories of entrepreneurship
may be non-profit, profit, or hybrid. Examples of
Social Entrepreneurship:
• Microfinance Institutions
• Educational Programs
• Banking Services
• Welfare Services
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Differences and similarities between different entrepreneurial ventures are following:
Factors Small business entrepreneurship
Goals and objectives These organizations might not have
structured goals and objects and
works on achieving lesser
profitability and growth.
Risks The risks might be lower but
competition is high with same sized
organizations.
Employee number Employees are not more than 50.
Structure No proper organizational structure
and often run with sole
proprietorship or in partnership.
Scalable startup entrepreneurship
These business aims to provide
innovative products
constantly and achieve high
profitability for investors (Kirzner,
2015).
The risks are high due to high
amount of financial
investment and pressure to return
high amount to the
investors by achieving high
sales volume.
Depends on structure and size.
Mainly corporations or limited
partnerships.
Large company entrepreneurship
These organizations aim to sustain
in the market by
developing new products or
services and marketing
strategies.
The risks are medium because large
businesses
often manage to sell high volume
due to their brand
value.
Employees can be more than 1000.
The organizational structure is
often complex and can be public
limited or private limited company
(Dees, 2017).
Social entrepreneurship
These organizations aim to provide
quality products or
services to make the world a better
place.
The risks are not much high
because, these businesses often get
support from
government and public due to their
vision.
Depends on the size of the
business.
Mainly trustee based organizations.
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Characteristics of
Entrepreneurs
What defines an
⊹ Disciplined: An entrepreneur is always
focused on making his/her enterprise
work by removing any obstacles or
hindrances that are stopping him/her from
reaching the set goals.
⊹ Confidence: An entrepreneur is always
self-confident that his/her business will
work and has no room for self-doubt.

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⊹ Open-minded: A good entrepreneur
knows that every situation or event is an
opportunity for him/her.
⊹ Self-starter: An entrepreneur knows that
if something needs to be done then he/she
is the one to start doing it thereby setting
the standards and parameters that the
project will follow.

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⊹ Competitive: An entrepreneur never
backs down from a challenge. An
entrepreneur understands that he/she can
do a better job than someone else.
⊹ Creative: One way of being creative is to
be able to make a connection between
situations or events that seem otherwise
unrelated.

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⊹ Determined: An entrepreneur does not
believe in failing. Every failure is treated
as an opportunity to try something else
and succeed.
⊹ Strong people skills: An entrepreneur
must have good communication skills to
market his/her product and to keep the
employees grounded and motivated.
⊹ Passionate: An entrepreneur loves what
he/she does genuinely and will do
anything to see the venture succeed. 17
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The Top Qualities of
a Successful
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Disciplined
⊹ Successful entrepreneurs are focused on making
their businesses work. They eliminate all
hindrances and distractions to their goals and
outline tactics to accomplish them. They focus on
the day-to-day operations of their business
without disregarding their long-term goals.
Successful entrepreneurs are disciplined enough
to take steps every day toward the achievement
of their goals and objectives.

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Confident
⊹ One quality of a successful entrepreneur that
people quickly notice is their confidence. The
founder of Twibi Digital Marketing Agency says
entrepreneurs don’t ask questions about whether
they can succeed or whether they are worthy of
success. They are confident with the knowledge
that they will make their businesses succeed.
They exude that confidence in everything they do.

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Open Minded
⊹ Entrepreneurs realize that every event and
situation is a business opportunity. Ideas are
constantly being generated about workflows and
efficiency, people skills, and potential new
businesses. They are constantly looking for new
ways to improve the current systems and
processes. Entrepreneurs have an uncanny ability
to envision a product that will solve a problem,
even though it may not currently seem possible.
They have the ability to look at everything around
them and focus on their goals.
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Self-starter
⊹ Self-starters tend to be more successful because
of their innate ability to manage their time and
control their performance. If something needs to
be done, entrepreneurs know they should start it
themselves. They set project parameters and are
proactive, not waiting for someone to give them
permission. Entrepreneurs look for solutions, like I
and Go, to make starting their business less
complicated and other processes that can reduce
complications in the workplace.

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Competitive
⊹ Many companies are formed because an
entrepreneur knows that they can do a job better
than another. They need to win at the sports they
play and need to win at the businesses that they
create. An entrepreneur will highlight their own
company’s track record of success. To excel in
business, entrepreneurs have the ability to
explore all of their options and remain aggressive
in pursuing their goals. They are willing to accept
any challenges that may come their way in order
to excel even more.
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Creative
⊹ A successful entrepreneur is creative and always
looks at the big picture. Their creativity and vision
often lead to the invention and discovery of new
things. These traits require an entrepreneur to
take their ideas and dreams into a physical form.
One facet of creativity is being able to make
connections between seemingly unrelated events
or situations. Entrepreneurs often come up with
solutions that are the synthesis of other items.

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⊹ They will repurpose products to market them to
new industries. They must also be willing to step
outside their comfort zone in order for their ideas
to come to fruition. Sometimes these inventions
result in new technologies and advancements that
can create breakthroughs in industries.

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Determined
⊹ Entrepreneurs look at defeat as an opportunity for
success. They are determined to make all of their
endeavors succeed, so they will try and try again
until it does. Successful entrepreneurs do not
believe that something cannot be done.
Therefore, one quality of a successful
entrepreneur is determination. They possess the
determination to persevere through all of the ups
and downs of business in order to achieve their
goals and dreams.

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Strong people skills
⊹ Entrepreneurs use strong communication skills to
sell products and motivate employees. Most
successful entrepreneurs know how to motivate
their employees so the business grows overall.
They are very good at highlighting the benefits of
any situation and coaching others to their success.

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Strong work ethic
⊹ Highly-successful entrepreneurs are always willing
to put in the necessary effort. They are leaders
that set a strong example to others, especially in
the sense of urgency and responsibility. The
successful entrepreneur will often be the first
person to arrive at the office and the last one to
leave. They will come in on their days off to make
sure that an outcome meets their expectations.
Their mind is constantly on their work, whether
they are in or out of the workplace.
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Passion
⊹ One of the most important qualities of a
successful entrepreneur is passion. They
genuinely love their work. They are willing to put
in those extra hours to make the business succeed
because there is a joy their business gives which
goes beyond the money. The successful
entrepreneur will always be reading and
researching ways to make the business better.
They are willing to put in their time and effort to
learn new techniques or applications in order to
stay ahead of their competitors.
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They make sure that they are always learning new
things about their industry to keep abreast of new
developments and be as efficient as possible.

Successful entrepreneurs want to see what the view

is like at the top of the business mountain. Once they
see it, they want to go further. They know how to talk
to their employees, and their businesses soar as a
result.

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 ROLE OF
ENTREPRENEUR
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Entrepreneurship plays an
influential role in the economic
growth and standard of living of
the country. Here are the
important roles an entrepreneur
plays in the economic
development of a country.
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⊹ Wealth Creation and Sharing
By establishing the business entity,
entrepreneurs invest their own resources and
attract capital from investors, lenders and the
public. This mobilizes public wealth and
allows people to benefit from the success of
entrepreneurs and growing businesses.

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⊹ Create Jobs
Entrepreneurs are by nature and definition
job creators, as opposed to job seekers. When
you become an entrepreneur, you provide
employment for multiple other job seekers.
This kind of job creation by new and existing
businesses is again is one of the basic goals
of economic development.

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⊹ Balanced Regional Development
Entrepreneurs setting up new businesses and
industrial units help with regional
development by locating in less developed
and backward areas.
The growth of industries and business in
these areas leads to infrastructure
improvements.

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⊹ Standard of Living
Increase in the standard of living of people in
a community is yet another key goal of
economic development. Entrepreneurs again
play a key role in increasing the standard of
living in a community.

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⊹ Exports
Any growing business will eventually want
to get started with exports to expand their
business to foreign markets. Key benefit is
that this expansion that leads to more stable
business revenue during economic downturns
in the local economy.

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⊹ Community Development
Economic development doesn’t always
translate into community development.
Community development requires
infrastructure for education and training,
healthcare, and other public services.

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THANK YOU!!!

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