Fundamentals of

Entrepreneurship

BM035-3-1-FEP

Introduction to Entrepreneurship
 Learning Outcomes

• At the end of this module, YOU

should be able to:
 Understand the meaning of
entrepreneurship
 Understand the role of entrepreneurship in
economic growth

BM035-3-1-FEP Fundamental of Entrepreneurship

 ? What does the word
‘entrepreneurship’ mean to
you?

BM035-3-1-FEP Fundamental of Entrepreneurship

 Entrepreneurship Is

Process of identifying and pursuing business

opportunities
Process of creating value by bringing together
resources to exploit an opportunity
Pursuit of opportunity without regard to resources
controlled
Set of critical thinking skills

BM035-3-1-FEP Fundamental of Entrepreneurship

 The role of entrepreneurs
• In crisis, entrepreneurs:
– recognise opportunities
– are aggressive catalysts for change in the
marketplace
– generate economic growth and job creation
– challenge the unknown and continuously
create our future.

BM035-3-1-FEP Fundamental of Entrepreneurship

 Two kinds of entrepreneurs

BM035-3-1-FEP Fundamental of Entrepreneurship

 Another kind of businessperson

• Prefer a more stable and less

aggressive approach
• Would rather exploit existing
equilibrium opportunities
• Operate in existing markets

BM035-3-1-FEP Fundamental of Entrepreneurship

 The roles of entrepreneurship in
economic growth
1. Innovation
• Schumpeter visualized the
entrepreneurs as the key figure in
economic development.
• The entrepreneur searches for change,
sees need and then brings together the
manpower, material and capital required to
respond the opportunity what he sees.

BM035-3-1-FEP Fundamental of Entrepreneurship

 2. Backward and forward linkages
• An entrepreneur initiates changes which
has a chain reaction.
• E.g. the establishment of a steel plant
generates several oxcillary units and
expands the demands for iron ore, coal
etc.

BM035-3-1-FEP Fundamental of Entrepreneurship

 3. Optimum use of resources
• It is the responsibility of the
entrepreneur to make use of resources
at the fullest extent.
• The resources include land, money,
labour, machinery.

BM035-3-1-FEP Fundamental of Entrepreneurship

 4. Regional dispersal of industries /
Balance regional development
• Under-developed country aims at
decentralized industrial structure to militate
the regional imbalanced in levels of
economic development.
• Small-scale entrepreneurship in such
industrial structure plays an important role
to achieve balanced regional development
.

BM035-3-1-FEP Fundamental of Entrepreneurship

 5.Capital Formation

• Entrepreneur mobilizes the idle

savings.
• Saving in industry result in productive
utilization of national resources.
• An entrepreneur is the creator of wealth.

BM035-3-1-FEP Fundamental of Entrepreneurship

 6. Improvement in per capita
income
• Entrepreneurs locate and exploit
opportunities.
• It convert idle resources like road, labour
and capital into national income and
wealth in the form of goods and services.

BM035-3-1-FEP Fundamental of Entrepreneurship

 7.Generalisation of employment.

• Entrepreneurs generate employment both

directly and indirectly.
• Entrepreneurship helps to reduce the
unemployment problem in the country.

BM035-3-1-FEP Fundamental of Entrepreneurship

 8.Improvements in living
standard
• Entrepreneurs set up industries which
remove scarcity of essential
commodities and introduce new
products.
• Production of goods on mass scale
helps to improve the standard of living
of a common man.

BM035-3-1-FEP Fundamental of Entrepreneurship

 9. Economic independence
• Entrepreneurship is essential for national
self – reliance.
• Businessman exports goods and services
on a large scale and earns foreign
exchange for the country.

BM035-3-1-FEP Fundamental of Entrepreneurship

 10. Increases productivity
• The entrepreneur through massive small
scale and large scale industries, it
helps in growing productivity in the
enterprise.
• The entrepreneur plays a vital role through
good relation.

BM035-3-1-FEP Fundamental of Entrepreneurship

 11.Reduces unrest and tension
• An entrepreneur plays a crucial role
in solving tensions and problems and
tries to minimize it.

BM035-3-1-FEP Fundamental of Entrepreneurship

 12. Manpower or human
resources
• Manpower or human resource
means the quantity as well as the
quality of population.
• High productivity and efficiency would
depend on their skill enterprise knowledge,
imagination and good health.

BM035-3-1-FEP Fundamental of Entrepreneurship

 Q&A

BM035-3-1-FEP Fundamental of Entrepreneurship