ENTREPRENEURSHIP

MYTHS OF ENTREPRENEURSHIP
• Entrepreneurs are born not made
• They are academic and social misfits
• They fit an ideal profile
• All you need is money and luck to be an entrepreneur
• A great idea is the only ingredient in a recipe for business
• My best friend will be my great business partner
• Having no boss is great fun
• I can make lots of money
• I will definitely be successful
• Life will be much simpler if I work for myself
HARVARD DEFINITION

• Entrepreneurship is
the process of creating
or seizing an
opportunity and
pursuing it regardless
of the resources
currently controlled
 Definition of Entrepreneur
Peter F Drucker, defines entrepreneur as:

“The one who always searches for change,

responds to it and exploits it as an opportunity.
Innovation is the specific tool of entrepreneurs,
the means by which they exploit change as an
opportunity for a different business or
services”
 Who is an entrepreneur?
High INVENTOR ENTREPRENEUR

Creativity
and PROMOTER MANAGER,
Innovation ADMINISTRATOR

Low High
General Management Skills, Business Know-How & Networks
 Elements of an Entrepreneur
Risk Taking Innovation

Ethics

Operational
Excellence
Values
Organising
Skills

Character
Vision
 Functions of Entrepreneur
• Market research
• Idea generation
• Product/service analysis
• Form of business
• Determination of business objectives
• Promotional formality
• Raising capital
• Providing infrastructure
• Selection of human resources
• Carrying out the operations
• Risk bearing
• Organisation of the resources
• Innovation
• Exploration of new opportunities
• Providing leadership
• Motivating people
 Origin
Entrepreneur derived from French verb
‘entreprendre’ – Means – “To Undertake”.
In scriptures, society divided into 4
categories, they are:
•Brahmins
•Kshatriyas
•Vaishyas
•Shudras
 Addressing the Entrepreneurs in
various region and languages
• In Hindi – Bania.
• Rajasthan – Marwaris.
• Gujarati – Vyapari/Sheth.
• Tamil – Chettiars.
• Telugu – Komati.
• West Bengal – Subarna Baniks.
• Kerala – Moplas.
• Maharashtra – Sheroffs.
ENTREPRENEUR ENTREPRENEURSHIP ENTREPRISE

PERSON PROCESS
OBJECT

INDIVIDUAL COLLECTION RESULT OF

OF ACTIVITIES THE EFFORT
 Economic
Factors
Business Government
Soc
Poli io
t i ca
Labour Fac l
to r s
gic
l o s
no or
c h ac t
Te l F
a
 Entrepreneur
• High risk taker
• Hard worker
• Innovator
• Honest person
• Independent
• Power to dominate
• Proactive
• Good managerial capabilities
Characteristics of an Entrepreneur
• Organizer – Say
• Capitalist – Adam Smith
• Innovative – Schumpeter and Drunker
• Change Agent – Young
• Risk taker – Webster, Walker and Knight
• Opportunist – Drunker and Dewing
• Decision Maker – Danhof
• Visionary & Leader – Hisrich
• Dreamer – Luther
• Problem solver – Hagen
• High Achiever - McClelland
 Features of Entrepreneurship
• Economic activity
• Creative activity
• Purposeful activity
• Functions of risk bearing
• Organizing function
• Gap-filling function
• Dynamic function
• Innovative function
 Entrepreneurial Process
Identification & Evaluation of opportunity

Drawing up of a business plan

Determination of the required resources

Creating the venture

Managing the enterprise

 Elements of Successful Entrepreneur

Customer-
Management of Systematic
Oriented Market
Finance Management
Analysis

Successful
Entrepreneurshi
p

Object-Oriented
Entrepreneur’s advice from
Ability outside
ROLE OF ENTREPRENEURSHIP
IN ECONOMIC DEVELOPMENT
 ROLE OF ENTREPRENEURSHIP
IN ECONOMIC DEVELOPMENT

• National production
• Balanced regional development
• Dispersal of economic power
• Reinvestment of profits
• Employment generation
• Harnessing youth vigour
 Need & Role and Importance
• To create more employment opportunities
• To create more innovative ideas
• Creates more innovative, quality products
• Leads to healthy competition
• Creates high quality goods at low costs
• Generates more revenue to the country
• Increases the exports and foreign exchange reserve
• Increases economy and cash flow
BENEFITS OF ENTREPRENEURSHIP
 BENEFITS OF ENTREPRENEURSHIP

• Opportunity to create own destiny

• Opportunity to make a difference
• Opportunity to achieve full potential
• Opportunity to reap full profits
• Opportunity to contribute to the
society
• Opportunity to do what you enjoy
DRIVING FORCES BEHIND
ENTREPRENEURSHIP
 DRIVING FORCES BEHIND
ENTREPRENEURSHIP
• Attitude of people
• Demographic and economic factors
• Entrepreneurial education
• Shift to service economy
• Technological advancement
• International opportunities
DIMENSIONS OF ENTREPRENEURSHIP
 DIMENSIONS OF ENTREPRENEURSHIP
• Simple procedure for business
• Education & training for entrepreneurship
• Easier access to finance and investment
friendly taxation
• Better market access
• Innovative companies
• Strong business associations
• Quality business support schemes and
services
• Clear & targeted information
CHARECTERISTICS OF
ENTREPRENEUR
 CHARECTERISTICS/QUALITIES
OF ENTREPRENEUR
• Hard working • Sound knowledge • Involvement
• • Technical • Pride
Speed
knowledge • Adaptability
• Self reliance
• Self confidence • Values
• Communicator
• Passion • Foresight
• Motivator • Flexibility • Conviction
• Initiative • Assertiveness • Dynamism
• Discipline • Independent • Courage
• Will power • Creativity • High energy level
• Optimistic • Human relations • Dreamer
• Strategist • Determination
• Commitment
CLASSIFICATION OF
ENTREPRENEURS
Classification of Entrepreneurs
CLASSIFICATION OF ENTREPRENEURS

CLARENCE DANLOF’S
CLASSIFICATION
• Innovative entrepreneurs
• Imitative entrepreneurs
• Fabian entrepreneurs-
cautious
• Drone entrepreneurs-
refuse to adopt
opportunities
Classification According to
Type of Business
Classification
Classification
Classification
INTRAPRENEURS
• Talented persons
from corporate world
leave their jobs to
start their own
business units
because they are
unhappy with the
management
Factors Influencing Entrepreneurship
Economic - Government

Attitude
Motivation

Socio - Cultural
& Family

Personal
Values
Individual Entrepreneur

Personality

Technology
Factors Influencing Entrepreneurship
• Internal
• External
• Economic
• Non-economic
Internal Factors
Internal Factors
External Factors