Introduction to

Entrepreneurship
Dr. Samer Ali Al-shami
Entrepreneur -Definition

Entrepreneur is a person who

establishes his own business or
industrial undertaking with a view of
making profit
Entrepreneur -Definition
J.A.Schumpeter defined as “A person
who introduces innovative change is an
entrepreneur and he is an integral
part of economic growth”
Entrepreneur -Definition
Webster defines as ”Entrepreneur is one
who assumes risk and management of
business”
Characteristics of an
Entrepreneur
Hard Work
Business Acumen &
Sincerity
Prudenc
e
Achievement Motivation
Self Reliance & Independence
Highly Optimistic
Keen Foresight
Planning & Organizing
Ability
Innovativeness
Risk
Taking
Secrecy Maintenance
Public Relation
Communication Skills
 TYPES OF
ENTREPRENEUR
Types of Entrepreneur
(Danhof)

Danhof classification
•Suitable for under developed countries
•Avoids taking Risk
Drone Entrepreneur
Following is a list of Entrepreneur who are
not included in the definition Formulated
by DANHOF

 INDIVIDUAL ENTREPRENEURS & INSTITUTIONAL

ENTREPRENEURS
 INHERITANCE ENTREPRENEURS
 TECHNOLOGICAL ENTREPRENEURS
Individual Entrepreneur and Institutional
Entrepreneur

 Majority of Entrepreneur belonging to the small

scale industry sector are individual
entrepreneur.
 They enjoy the benefits of flexibility, Quick
decision making.
 Individual Enterprise are not able to grow or
develop beyond a limit.
INSTITUTIONAL ENTREPRENEUR
INHERITED ENTREPRENEUR
 Sometimes people become entrepreneur when they
inherit family business.
 Firm pass from one generation to another.
 Entrepreneur of large scale business concern like
TATA,
RELIANCE, BIRLA, TVS
TECHNOLOGICAL
ENTREPRENEUR
 Technically Qualified persons have entered the
field of business to commercially exploit their
inventions & discoveries,
 Technical and scientific advancements started
creating changes in the economic structure of the
nation.
 Their asset is technical expertise.
 Solar Bike
Classification based on stages of
development
 First Generation Entrepreneur- One who
starts the business by innovative skills
 Modern Entrepreneur-undertake products for
current market requirements
 Classical Entrepreneur-development of self
supporting venture. Maximize his economic
returns than company growth.
Classification based on motives
 Pure Entrepreneur- motivated by psychological
& economic rewards
 Induced Entrepreneur- helped by govt to start
business
 Motivated Entrepreneur- motivated for self
fulfillment
 Spontaneous Entrepreneur- initiative, boldness,
strong conviction
 FUNCTION OF
ENTREPRENEURS
Function of Entrepreneur
ASSUMPTION OF RISK
DECISION MAKING FUNCTION
MANEGERIAL FUNCTION
FUNCTION OF INNOVATION
ENTREPRENEURS & ECONOMIC
DEVELOPMENT
Coordinating Role
Agent Role
Risk Assumption
Role
Imitating Role
Capital Formation Role
Balancing Role
Status Transformation Role
Employment Generation Role
Export Promotion Role