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

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”

Definition of Entrepreneur

INVENTOR ENTREPRENEUR

PROMOTER MANAGER,ADMINISTRATOR

Who is an entrepreneur?High

Creativity andInnovation

Low HighGeneral Management Skills, Business Know-

How & Networks

Elements of an EntrepreneurRisk Taking Innovation

Vision

Values

Character

Ethics

Operational Excellence

Organising Skills

• 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

Functions of Entrepreneur

Entrepreneur derived from French verb ‘entreprendre’ – Means – “To Undertake”.

In scriptures, society divided into 4 categories, they are:•Brahmins•Kshatriyas•Vaishyas•Shudras

Origin

• In Hindi – Bania.• Rajasthan – Marwaris.• Gujarati – Vyapari/Sheth.• Tamil – Chettiars.• Telugu – Komati.• West Bengal – Subarna Baniks.• Kerala – Moplas.• Maharashtra – Sheroffs.

Addressing the Entrepreneurs in various region and languages

ENTREPRENEUR ENTREPRENEURSHIP

ENTREPRISE

PERSON PROCESS

OBJECT

INDIVIDUAL COLLECTION OF

ACTIVITIES

RESULT OF THE EFFORT

Business

Government

Labour

Econ

om

ic

Facto

rs

Socio Political Factors

Techn

olo

gica

l

Fact

ors

• High risk taker

• Hard worker

• Innovator

• Honest person

• Independent

• Power to dominate

• Proactive

• Good managerial capabilities

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

Characteristics of an Entrepreneur

• Economic activity• Creative activity• Purposeful activity• Functions of risk bearing• Organizing function• Gap-filling function• Dynamic function• Innovative function

Features of Entrepreneurship

Entrepreneurial Process

Identification & Evaluation of opportunity

Drawing up of a business plan

Determination of the required resources

Creating the venture

Managing the enterprise

Customer-Oriented Market Analysis

Management of Finance

Systematic Managemen

t

Successful Entrepreneur

ship

Entrepreneur’s Ability

Object-Oriented

advice from outside

Elements of Successful Entrepreneur

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

• 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

Need & Role and Importance

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

• Sound knowledge• Technical

knowledge• Self confidence• Passion• Flexibility• Assertiveness• Independent• Creativity• Human relations

• Hard working

• Speed• Self reliance• Communicato

r• Motivator• Initiative• Discipline• Will power• Optimistic• Strategist

• Involvement• Pride• Adaptability• Values• Foresight• Conviction• Dynamism• Courage• High energy

level• Dreamer• 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

Individual Entrepreneur

Personality

Mot

ivat

ion

& F

amil

y

Technology

Personal V

alues

Soc

io -

Cul

tura

l

• Internal • External• Economic• Non-economic

Factors Influencing Entrepreneurship

Internal Factors

Internal Factors

External Factors