ENTREPRENEURSHIP MANAGEMENT

CHAPTER-1

Introduction Meaning of Entrepreneur 1.Peter Drucker defines an entrepreneur as one who always searches for change, responds to it and exploits it as an opportunity. 2.Encyclopedia Britannica defines an entrepreneur as an individual who bears the risk of operating a business in the face of uncertainty.
3. International Labor Organization defines “ Entrepreneurs are people who have the ability to see and evaluate business opportunities; together with the necessary resources to take advantage of them; and to initiate appropriate action to ensure success.

WHAT IS ENTREPRENEURSHIP?
The word entrepreneur derives from the French word entre, meaning “between” and prendre meaning “to take”. The word originally used to describe people who “take on the risk” between buyers and sellers or who “undertake” a task such as starting a new venture. Inventors and entrepreneurs differ from each other. An inventor creates something new. An entrepreneur assembles and then integrates all the resources needed-the money, the people, the business model, the strategy and the risk bearing ability to transform the invention into a viable business.

Characteristics of Entrepreneur
a. b. c. d. e. f. g. h. i. j. k. l. m. n. o. p. q.

Administrative ability Organization skills Intelligence Creativity Innovation Clear objective Business Secrecy Sound Knowledge Emotional stability Public relations Effective communication Technical knowledge Risk bearer Highly motivated Hard working Growth oriented Self confidence

Why Become an Entrepreneur? Three primary reasons are a. To Become their own boss b. To Pursue their own ideas c. To Realize financial ideas

FOUR PRIMARY CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS
Passion for the business P:roduct/customer focus

Successful Entrepreneurs

Tenacity despite failure

Execution Intelligence

COMMON MYTHS

ABOUT

ENTREPRENEUR

Myth 1 Entrepreneurs are born, not made. Myth 2 Entrepreneurs are gamblers. Myth 3 Entrepreneurs are motivated primarily by money. Myth 4 Entrepreneurs should be young and energetic . Myth 5 Entrepreneurs love the spotlight

Example- Jeff Bezos, the founder of Amazon, the successful web-based book store.
Functions of Entrepreneurs a. Generation of business ideas and choosing the best suitable idea after necessary scanning. b. Determination of the business objectives i.e. what he wants to achieve in his proposed business enterprise.

c. Product analysis and market research. d. Determination of form of ownership/ organization e. Completion of promotional formalities. f. Making necessary arrangements for finance to implement the project by approaching State Financial Corporation for long term loan and banks for working capital loan. g. Undertaking building construction, if readyshed is not taken. h. Plant and machinery i. Getting electrical power connection and other utilities. j. Arranging for various raw materials and consumables. k. Appointing key managerial / supervisory persons. l. Recruiting required manpower i.e; skilled, semiskilled and unskilled(helpers).

m. Undertaking trial productions. n. Commencing the commercial business operations. o. Marketing the prioducts. p. Taking the feedback from the market for customer satisfaction. q. After stabilising the commercial business operations, PRC issued by District Industries centre has to be converted into PMT by filing necessary required application.

Types of Entrepreneurs  Classification of Entrepreneurs based on functional Characteristics. a. Innovative Entrepreneur b. Imitative or Adoptive Entrepreneur c. Fabian Entrepreneur d. Drone Entrepreneur

a. b.

c.
d. e.

Classification of Entrepreneurs based on the Developmental Angle. Prime mover Manger Minor innovator Satellite Local trading

a. b.

c.
d.

Classification of Entrepreneurs Based on Types of Business Manufacturing Wholesaling Retailing Service Classification of Entrepreneurs as per Behavioral Scientists Solo Operators Active partners Inventos Challengers Buyers Life timers

a. b. c.

d.
e. f.

Successful Entrepreneurs
a. b. c. d.

e. f.

Steve Wozniak - Apple Computers Bill Gates – Microsoft Oprah Winfrey - Harpo Inc. Michael H. and Jay Arrington – Harper-Arrington Publishing and Media Steven Spielberg - Dreamworks Sam Walton - Walmart

TYPES OF START UP FIRMS
Three types of Start up firms a. Salary substitute firms b. Life style firms c. Entrepreneurial firms Changing demographics of entrepreneurs Women Entrepreneurs Minority Entrepreneurs Senior Entrepreneurs Young Entrepreneurs

ENTREPRENEURSHIP IMPORTANCE
Economic impact of Entrepreneurial Firms.  Entrepreneurial Firms’ Impact on Society.  Entrepreneurial Firms’ Impact on Larger Firms.