ENTREPRENEURSHIP

DEVELOPMENT
 Introduction

Characteristics

Qualities

ENTREPRENEURSHIP Key Elements & Skills

DEVELOPMENT
Entrepreneurial Stress

Corporate Entrepreneurship

Entrepreneurial Process
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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The word entrepreneur is
derived from the French verb
“enterprendre”, which means
“to undertake”.
EVOLUTION:
• In early 16th century it was applied
to those who were engaged in
military expeditions.
• In 17th century the word
‘entrepreneur’ was used for civil
engineering activities such as
construction and fortification.
• It was applied to business for the
first time in 18th century, to
designate a dealer who buys and
sells goods at uncertain prices.
• 1970s - ‘Professionalism’ word in
Management
• 1980s – the word Entrepreneurship
started catching up in management
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“
what exactly we mean by
the term ‘Entrepreneur’?

There is generally no
accepted definition or
model of what the
entrepreneur is or does.

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 ENTREPRENEUR
Richard Cantillon, French Economist, who applied
the term entrepreneur to business for the first time =
“An entrepreneur as a person or an agent who buys RISK BEARER
factor services at certain prices with a view to sell
them at uncertain prices in the future.”

Jean-Baptiste Say
An entrepreneur is an economic agent who unites ENTREPRENEUR
all means of production- land, labour and capital =
to produce a product or service.
ORGANIZER
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 Schumpeter
The entrepreneur in an advanced
economy is an individual who introduce
ENTREPRENEUR
something new in the economy- a
=
method of production not yet tested by
INNOVATOR
experience in the branch of
manufacturing, a product with which
consumers are not yet familiar, a new
source of raw material or of new markets
and the like.
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David McClleland: An entrepreneur is a person with a high need for
achievement [N-Ach]. He is energetic and a moderate risk taker.

Peter Drucker: An entrepreneur searches for change, responds to it

and exploits opportunities. Innovation is a specific tool of an
entrepreneur hence an effective entrepreneur converts a source into a
resource.

Albert Shapero: Entrepreneurs take initiative, accept risk of failure

and have an internal locus of control.

Ronald May—Someone who commercializes his or her innovation.

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ENTREPRENEUR - Definition

▸Entrepreneur is any person that continuously seeks

and acts upon opportunities for economic and or
social gains through applying the principle of
creative problem solving.

▸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.

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Entrepreneurship is the process
of creating value by bringing
together a unique package of
resources to exploit an
opportunity.

Entrepreneurship is the process

of starting a business or other
organization.

Arthur 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.” 11
ENTREPRENEUR ENTREPRENEURSHIP ENTERPRISE
PERSON PROCESS OBJECT

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Entrepreneur Entrepreneurship
Refers to a person Refers to a process
Visualiser Vision
Creator Creation
Organiser Organisation
Innovator Innovation
Technician Technology
Initiator Initiative
Decision-maker Decision
Planner Planning
Leader Leadership
Motivator Motivation
Programmer Action
Risk-taker Risk-taking
Communicator Communication
Administrator Administration 13
 Self- Thinkers &
Action Oriented
determined Doers

Highly Planners & Communication

Dedicated
Motivated Workers Skills

Self- Foresee the Maintain Public

Risk Taking
Confidence future Relations

Accept
Creative Responsibilitie Goal Setting Innovativeness
s

Hard working
for Personal & Use of
Result-Oriented Achievement
Financial Resources
rewards 14
 Moderate
Need to Perseverance Ability to find
Risk Taker
Achieve & Explore
Opportunity

Analytical
Ability
Stress
Taker

Using
Qualities of Feedback
Motivator Entrepreneur

Positive Self
Concept
Interpersonal
Skills

Facing
Planner Independence Uncertainty
Flexibility
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 Motivation and
Commitment Abilities
and Skills

Resources

Strategy
Key and Vision
Ellements:

Planning and
Organising

The idea in
relation to the
market
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 Communication

Team Building

Leadership

Interpersonal

Sales

Financial

Management (Time,
Failure, Stress, etc..)

Etc….
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 Entrepreneurial Stress:
The extent to which the entrepreneurs’ work
demands and expectations exceed their abilities to perform
as venture initiators, they are likely to experience stress.

Recommendations
CAUSES

• Pay attention to your body's stress

signals
Responsibility • Take systematic breaks
pressure • Try to achieve work/life balance
• Adopt a healthy lifestyle
• Delegate to reduce your workload
• Talk to the people you trust
• Learn to say ‘No’
• Get your business’s financial
situation under control
• Take a vacation
• Etc.

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Corporate Entrepreneurship (also know as Intrapreneurship)
Corporate Entrepreneurship is a process used to develop new businesses,
products, services or processes inside of an existing organization to create
value and generate new revenue growth through entrepreneurial thought and
action.

Intrapreneurship is the concept of supporting employees to think and behave

like entrepreneurs within the confines of an existing organisational structure.

“Intrapreneurship is innovation within a company”

INTRAPRENEUR

“…a person within a large corporation who takes direct

responsibility for turning an idea into a profitable finished
product through assertive risk-taking andinnovation.”
(The American Heritage Dictionary)
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 SOURCE OF COMPETITIVE
ADVANTAGE

And more…. 20
 Radical Incremental
Innovation Innovation

Innovation
Strategic Corporate
Renewal Venturing

Corporate
Entrepreneurship

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ENTREPRENEURIAL PROCESS

1. Discovery

2. Concept
5. Harvesting
Development

4. Actualization 3, Resourcing

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 • Generate Ideas Develop a Business Plan
o Search for new Idea
o Preliminary Assessment of Idea • Size of the Unit
o Detailed Analysis of Promising Idea • Location
o Selection of Most Promising Idea • Plant Layout
• Recognizes Opportunities • Code of Ethics
• Studies Market • Mission Statement
• Patents/Trade Marks
• Consider your hobbies and skills
• Consider consumer needs and wants
• Conduct surveys and questionnaires-
test the market
• Study demographics
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 • Launching &
• Managing Company

• Opening &
• Financial • Operating Business
• Human • Utilizing resources
• Capital • Achieving goals/objectives

• Identifying Potential Investors

• Applying for Loans/Grants/Assistance
• Hire Employees
Future:
• Growth
• Development
• Demise
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Business incubator
Business incubator is an organization that helps startup companies and
individual entrepreneurs to develop their businesses by providing a fullscale
range of services starting with management training and office space and
ending with venture capital financing.
Ex.T-Hub,J-hub,NIEC

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Rural entrepreneurship is the creation of new organizations that
introduces a new product, serves or creates a new market or utilizes new
technology in rural areas.

Types of rural Entrepreneurship Significance of Rural Entrepreneurship

• Farm Entrepreneurship
• Artisan Entrepreneurship
• Merchants and traders
• Tribal Entrepreneurship
Problems
Financial Problems
Lack of Technological knowledge
Lack of awareness
Low risk bearning capacity
Low purchasing power of the people
• Employment generation
• Balanced regional development
• Promotion of culture
• Reduction of rural-urban migration
• Utilization of local resources
• Environment friendly
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Social Entrepreneurship is when an individual or a group of people take up
the responsibility to solve the prevailing problems of society. It could be a low-
key affair or a large-scale drive that involves the masses. What matters is that
the activity or initiative solves a problem and brings about a positive change in
someone’s life
Examples Of Social Entrepreneurship
Anshu Gupta, Founder of Goonj: Anshu, a media professional, wanted to provide proper
clothing to the underprivileged. He started collecting old clothes to upcycle them and distribute
them among the poor.

Santosh Parulekar, Founder of Pipal Tree: Focusing on one of the most underrated
segments, jobs in rural India, to help youth from rural India find suitable jobs.

Urvashi Sahni, Founder and CEO of SHEF (Study Hall Education Foundation): Set up to
educate girls in rural India, SHEF has transformed more than 1,000 schools, trained tens of
thousands of teachers and impacted nearly 5 million students’ lives in UP and Rajasthan.

Harish Hande, CEO and Founder, Selco: India’s first solar funding program, Selco aims to
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provide sustainable energy in the country’s rural area
Types Of Social Entrepreneurship:
1. Community Social Entrepreneur 2.Non-Profit Social Entrepreneur:3. Transformational Social
Entrepreneur4. Global Social Entrepreneur
• Business Entrepreneurship
• More about the individual
• Aims at producing goods and
services
• Focused on the market, demand
and trends
• Measures performance according
to profits
• The purpose is to satisfy
customer needs, excel and earn
profits.
• Social Entrepreneurship
• All about collective efforts for
society
• Aims at producing goods and
services that can serve the
community and solve a problem
• Focused on a solution-oriented
approach to a social problem
• Measures performance according to
the impact made
• The purpose is to promote their
cause and improve the society
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Women entrepreneurs are those women who think of a business
enterprise, initiate it, organise and combine factors of production, operate
the enterprise and undertake risks and handle economic uncertainty
involved in running it.
Reasons for growth of women Problems of Women Entrepreneurship
entrepreneurship • Lack of Confidence
• Growth in literacy level • Problem of Finance and Working
• Industrial economic growth Capital
• Socio-cultural Barriers
• Awareness of democratic value
• Lack of encouragement from family
• Organizations promoting women
entrepreneurship • Low mobility
• Financial assistance and • Lack of Education
consultancy provided by financial • Competition
institutes and government • Role Conflict
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The types of entrepreneurs vary depending on background, country and
even sector but the 5 most common types are:
• Innovators-who come up with completely new ideas
• Hustlers-focus on starting small with the goal of becoming bigger in the
future.
• Imitators-who copy certain business ideas and improve upon them
• Researchers-failure is not an option because they have analyzed the idea
from all angles.
• Buyers-proceed to acquire it and find the most suitable person to run and
grow it.
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Importance of Entrepreneurship
1. Entrepreneurship Accelerates Economic Growth
2. Entrepreneurship Promotes Innovation
3. Entrepreneurship Can Promote Social Changes
4. Entrepreneurship Promotes Research and Industrial Development
5. Entrepreneurship Develops and Improves Existing Enterprises

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Causes of failure of entrepreneurship
• Lack of Right Idea.
• Unorganized Manpower Resources.
• Cash Crunch.
• The Vision of the Founder.
• Lack of Study of Data.
• Late Realization.
• Not Targeting the Right Market.
• Delegation Issues.
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Design thinking is a process for solving problems by prioritizing the
consumer's needs above all else. It relies on observing, with empathy, how
people interact with their environments, and employs an iterative, hands-on
approach to creating innovative solutions
The five primary steps that an entrepreneur must remember are:
Empathizing – with the customers.
Defining – the challenges, needs, and wants.
Forming Ideas – different approaches are taken to come up with solutions
for the problem.
Prototyping – products are made based on the different approaches
Testing – here the prototypes are tested and the faults plus benefits of the
products are carefully studied 34
Why do entrepreneurs need design thinking?
1. Long-term strategy planning
2. Allows divergent thinking
3. Incorporate a process model
4. Be curious and observe

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 Myths & Realities of Entrepreneurs
Myths
• Entrepreneurs are born, not
made.
• Entrepreneurs are gamblers,
addicted to taking risks.
• Entrepreneurs are independent.
• Entrepreneurs are motivated only
by money
• Entrepreneurs undergo more
stress than people in traditional
jobs.
Realities
• You can learn to be an entrepreneur by
learning a set of skills.
• They take calculated risks
• They may work independently, but they
rely on many others.
• Not true. They are also motivated by a
desire for independence & fulfillment in
their work.
• Different people find different things
stressful. No one would deny that hard
work involved. 36
Idea generation techniques
• Brainstorming
• Mind mapping
• Using 5W-H
• Roleplaying
• Six thinking hats
• Focus groups

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Market segmentation is a process companies use to break their potential
customers into different sections. This allows the company to allocate the
appropriate resource to each individual segment which allows for more
accurate targeting across a variety of marketing campaigns

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Customer personas are archetypal representations of existing subsets
of your customer base who share similar goals, needs, expectations,
behaviors and motivation factors.
segmentation allows a brand to understand different sets or groups of
customers. This might tell us where a particular group lives, their age
range, and maybe even some of their typical buying behaviour. A
customer persona, on the other hand, allows brands to better
understand these homogenous groups, and to recognise key traits
within them.

An example of an average user persona can consist of a name,

occupation information, demographics, a personal story, pain points,
and challenges. With these elements involved, the user persona is
more likely to demonstrate a real human being accurate.
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