AN

PRESENTATION ON

MEANING OF ENTREPRENUER, PRE-REQUISITE & QUALITIES

OF SUCCESSFUL ENTREPRENUR

Submitted by:

Akanksha Raj Roll no:06

V semester

MEANING OF ENTREPRENUER,

PREREQUISITE & QUALITIES OF SUCCESSFUL

ENTREPRENEUR

Meaning of Entrepreneur:Derived from French word Entreprendre

means “to undertake”.Richard Carleton: “a person who

buys factors of production at certain prices in order to combine them into a product with a view to sell them at uncertain prices”

Considered as a risk bearer. Ex. Farmer pays definite price for seeds, fertilizers, pesticides, labours etc but not certain at which price he could sell his produce.

Definitions by Authors:

J.B. Say: “one who combines the land of one, labour of another & capital of yet another & thus produces a product. By selling product pays rent, wages and interest.”

Peter F Ducker: “One who considers the changes that take place in market as an opportunity to do business. Innovation is his tool.”

Joseph Schwnpeter: “Individuals who introduce something new in the market or economy.”

WHAT IS ENTREPRENURESHIP ?

“ The function of seeing investment & production opportunities; organising an enterprise to undertake a new production process; raising capital; hiring labour, arranging for raw material, finding a site & combining these factors of production into a going concern; introducing new techniques, new commodities, discovering new sources of natural resources & selecting top-managers for day-to-day operations.”

- By B. HIGGINS:

From above the we can conclude that Entrepreneurship is a combination of various qualities like organisation skills, innovativeness, risk-bearing, managing uncertainty, ability to bring together & use factor of production, analysing market opportunities, observing the change taking place in the market, methods & technologies & studying the tastes & preferences of consumers.

Need for high achievement- Entrepreneurs are driven to succeed and expand their

business. They see the bigger picture and are often very ambitious. Entrepreneurs set massive goals for themselves and stay committed to achieving them regardless of the obstacles that get in the way.

Highly Optimistic: Successful entrepreneurs have a healthy opinion of

themselves and often have a strong and assertive personality. They are focused and determined to achieve their goals and believe completely in their ability to achieve them.

Search for New Ideas and Innovation All entrepreneurs have a passionate desire to do things

better and to improve their products or service. They are constantly looking for ways to improve. They're creative, innovative and resourceful.

QUALITIES OF ENTREPRENUERS:

H.R. ability: maintain good relations with other people (employee, vendors, customers, bankers).

. Openness to Change: If something is not working for them they

simply change. Entrepreneurs know the importance of keeping on top of their industry and the only way to being number one is to evolve and change with the times. They're up to date with the latest technology or service techniques and are always ready to change if they see a new opportunity arise.

They are also good managers, pro-active, realistic, have comprehensive awareness & conceptual ability.

OTHER PERSONAL TRAITS:

Mental ability: Intelligent person. Organising ability: Good organisation. Hard work: Ready to work for long hours. Discipline: highly disciplined- everything to

be in order for them. Clear objectives: Regarding nature of

business & products to be produced. Risk taking : They like challenges. Adaptability: highly flexible- adapt

themselves for any conditions. Emotional stability: have considerable

amount of self-control- business pressure can be handled.

Positive attitude: always think positively, they do not leave hopes even under difficult conditions

Skills of an effective entrepreneur:Strategic skills: An entrepreneur must have a

vision for the future. He/she must be able to see the bigger picture and know where he/she is going with everything. Setting clear objectives and effective strategies are essential for running a business successfully.

Management skills: Planning Organizing Leading (activating) Control

Human relations skills: The entrepreneur needs to have the ability to manage people as well. He/she has to build good relationships with all workers and needs to know who to employ in his/her business.

Financial skills: The success of a business is measured by the profit

it makes. It is essential that the entrepreneur has knowledge about managing income and costs. The long-term future success of the business is also determined by the type of investments the business makes and how successful the entrepreneur manages those investments.

Marketing skills: The challenge in marketing is that the

entrepreneur must know how to promote and advertise his/her business and products. It is essential for him/her to have good knowledge about the market and what things the customers want and prefer.

ENTREPRENEURIAL MOTIVATION:

INTERNAL FACTORSStrong desire to do something new.To be independent in Life.Making the maximum use of

technical/professional knowledge.Occupational experience/background.Passionate about particular activity.Dissatisfaction with present job.To attain self-satisfaction.

EXTERNAL FACTORS:Utilizing Government grants & subsidiaries.To continue ancestor business.Financial assistance from Institutions.Availability of resources.Encouragement from big business houses.Availability of sick units/ easy financial

terms.Encouragement from family members.

ENTREPRENEURSHIP IN INDIA

The Builder of Indian Industry & Entrepreneurship

J R D TATA(founder of TATA group of company)

N.R.NARAYANA MURTHY

• An Indian IT chief who's really made it big without dropping his ethical precepts by the wayside is Nagawara Ramarao Narayana Murthy, Chairman of Infosys.

• The Infosys legend began in 1981 when Narayana Murthy dreamt of forming his own company, along with six friends. There was a minor hitch, though-he didn't have any seed money. Luckly, like many Indian women who save secretly without their husband's knowledge, his wife Sudha-then an engineer with Tatas-had saved Rs 10,000. This was Murthy's first big break.The decade until 1991 was a tough period when the couple lived in a one-room house. The second break came in 1991 when Indian doors to liberalization were flung open… Murthy grabbed the opportunity with both hands and has never looked back ever since. Today, Infosys is the first Indian company to be listed on the US NASDAQ.

• It provides employment to 85,000 people.

Dhirubhai Ambani started his entrepreneurial career in India in 1958 with Rs 50,000 By setting up a textile trading company. Thereof Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built India's largest private sector company, Reliance India Limited, from a scratch. Over time his business has diversified into a core specialization in petrochemicals with additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics.

Dhirubhai Ambani alias Dhirajlal Hirachand Ambani

Mukesh and Anil Ambani

Role of entrepreneurship in India:

India as an underdeveloped country aims at decentralization of industrial sector to mitigate the regional imbalance in order to contribute growth prospects in economic development, With context to role of entrepreneurship in India, it plays following role:

It promotes capital formation by mobilizing the idle savings of public.

It provide large scale employment, Thus it helps in reducing the unemployment problem in the country i.e root of all socio-economic problem.

It helps reducing the concentration of economic power.

It stimulates the equitable redistribution of wealth , income & even political power in interest of the country.

It encourages effective resource mobilization of capital & skill which might otherwise remain unutilized & idle.

It further promotes country’s export trade i.e. an important ingredient to economic development.

We can conclude that entrepreneurship serves as a catalyst. On the whole the role of entrepreneurship in economic development of a country can best be put as

“An economy is the effect for which entrepreneurship Is the cause”…….

Suggestions: Promoting Entrepreneurship : In India, where over 30 crores people

are living below the poverty line, it is simply impossible for any government to provide means of livelihood to everyone. Such situations surely demand for a continuous effort from the society, where the people are encouraged to come up with their entrepreneurial initiative.