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enterpreneurship
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The Entrepreneur
Entrepreneurship Development (HML 311)
Contents
Concept of Entrepreneur
Traits (Characteristics) of Entrepreneurs
Successful Entrepreneurs and their Characteristics
Competencies and Skills of Entrepreneurs
Entrepreneurial Behaviors
Functions and Importance of Entrepreneurs
Types of Entrepreneurs
Reasons for becoming an Entrepreneur
Myths about Entrepreneurs
Entrepreneur
Entrepreneur
Acts upon Opportunitie
s
Innovates
Undertakes RISK
Raises Capital
Takes Decisions
Motivated
Welcomes Change
Plans
Any individual that sees and acts upon an opportunity. This includes introducing a new product or service, identifying new markets,
or putting a twist on an existing product, process or service.
Also, includes the raising of capital, taking the risk and controlling the new venture. Embodies creativity, aggressiveness, and
determination. By assembling various resources, s/he takes
risks and creates a venture from an idea, hobby, or simply a dream
Entrepreneur Person who undertakes the ‘risk’ of a new venture Derived from French words,
Entre meaning ‘between’ Prendre meaning ‘to take’ 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
An entrepreneur assembles and integrates all
the resources needed, the business model,
the strategy, and the risk bearing ability to
transform an invention into a viable business
Definition(s)
An entrepreneur is an agent who buys factors of production at certain prices in order to combine them into a product with a view to selling it at uncertain prices in future
- Cantillon An economic agent who units all
means of production – land of one, the labor of another and the capital of yet another and thus produces a product. By selling the product in the market he pays rent on land, wages to labor, interest on capital and what remains is his profit
- J. B. Say
Activity 1: My Entrepreneur
Let’s do it!!!
Select any one Entrepreneur from the business world and study
his/her profile. Do remember to mention his/her achievements
and specific entrepreneurial qualities
Factors that shape Entrepreneurs
Factors that shape Entrepreneurs
Traits, Qualities & Behavior
Environment
Skills & Competenci
es
Traits of Entrepreneurs
Traits (Characteristics) of Entrepreneurs1. Mental Ability (Intelligence & Creativity)2. Technical Knowledge3. Administrative & Organizing Skills4. Vision & Clarity5. Business Secrecy6. Effective Communication7. Human Relations Ability8. PR Skills
Successful Entrepreneurs
Successful Entrepreneurs1. Global Perspective
2. Entrepreneurial Spirit1. Passion for the business
2. Tenacity despite failure
3. Product/Customer Focus
4. Global Outlook
5. High need achievement
6. Willingness to accept change
7. Ambition
8. Capacity & willingness to assume risk
9. Goal Orientation
10. Commitment
3. Entrepreneurial Design Capability1. Strategic Thinking
2. Execution Intelligence
Successful Entrepreneurs4. Personal values
1. Integrity
2. Magnanimity
3. Personal Responsibility
5. Entrepreneurial Values1. Product/Customer Focus
2. Employee Focus
3. CSR Focus
6. Skills & Competencies1. Managerial Skills
2. Leadership Skills
3. Imagination & Creativity
4. Interpersonal Skills
5. Problem solving and Decision making Skills
Activity 2
Let’s do it!!!
Look for Entrepreneurs who possess these qualities and quote
incidences from their lives that confirm these qualities. Get one
example each for all the qualities.
Entrepreneurial Skills & Competencies
Entrepreneurial Competencies & Skills Skills
Technical
Skills
•Specific Operation Technology
•Communication
•Interpersonal relations
•Organizational ability
•Coordinating Team members
•Environmental Observation
Business
Management Skills
•Planning•Formulating Goals
•Decision-making
•Motivating•Marketing•Accounting•Negotiation
Entrepreneur
ial Skills
•Inner Discipline
•Risk-seeking•Innovation•Change-orientation
•Persistency•Visionary
Entrepreneurial Competencies & Skills Competencies
Meaning Ability of an individual to perform a job properly. Set of defined behaviours that provide a structured
guide enabling the identification, evaluation and development of the behaviours in individual employees
Combination of knowledge, skills and behaviour used to improve performance; or the state or quality of being adequately or well qualified, having the ability to perform a specific role.
For instance, management competency might include systems thinking and emotional intelligence, & skills in influence and negotiation.
Entrepreneurial Competencies & Skills Competencies (Contd.)
Shaping Competencies Experiences & Interactions Learning & Observation Formal Training & Education Resources
Knowledge
AbilitiesSkills
Personal Attributes
Activity 3
The Competency Framework
Let’s do it!!!
Now this is a group activity. Form groups of four and identify
any job profile. Once done, develop the competency framework
for that profile.
Entrepreneurial Competencies & Skills Competencies (Contd.)
Knowledge & Skill Level
• Finance/Cash Management
• Engineering• Accounting• Marketing• Leadership• Communication• Human Relations• PR• Innovation & Creativity• Networking & Team
Building• Decision making• Ambiguity Tolerance• Opportunity Identification• Venture Evaluation• Career Assessment• Deal making• Intuitive Thinking, etc.
Social Role & Social Concept Level
• Concern for high quality of work
• Assertiveness• Self-confidence &
Conviction
Motives & Traits Level
• Optimism• Tolerance of ambiguity• Locus of control• Propensity to take risk• Achievement values• Task motivation• Persistence• Integrity
Entrepreneurial Competencies & Skills Competencies (Contd.)
As listed by the EDII, Ahmedabad: -1. Initiative2. Sees and Acts on Opportunities3. Persistence4. Knowing5. Concern for High Quality of Work6. Commitment to Work Contract7. Efficiency Orientation8. Systematic Planning9. Problem solving-Observing the symptoms, diagnosing
and curing10. Self-confidence
Entrepreneurial Competencies & Skills Competencies (Contd.)
As listed by the EDI (Contd.): -11. Assertiveness12. Persuasion13. Use of Influence Strategies14. Monitoring15. Concern for Employee Welfare
Entrepreneurial Behavior
Entrepreneurial Behavior Concept of Behavior
Response of an individual to his/her external/internal stimuli
Exhibited in the individual’s actions B = f(I,ET)
Determinants of Individual Behavior Ability
Intellectual & Physical Biographical Characteristics
Age, gender, race, religion, etc. Learning
Entrepreneurial Behavior (Contd.) Entrepreneurial Behavior
Attitudes & Values Creativity & Innovation Decision Making & Problem Solving Risk taking Motivation Social Responsibilities
Functions of an Entrepreneur
Functions of an Entrepreneur Innovation Risk Taking Organization As per Peter Kilby: -
1. Perceiving market opportunities2. Gaining command over scarce resources3. Purchasing inputs4. Marketing products5. Dealing with bureaucrats6. Managing human relations within the firm7. Managing customer and supplier relations
Functions of an Entrepreneur (Contd.) As per Peter Kilby (Contd.): -
8. Managing finance9. Managing production10. Acquiring and overseeing assembly of the factory11. Industrial engineering12. Upgrading process and product13. Introducing new production techniques &
products
Importance of an Entrepreneur
Importance of an Entrepreneur Impact on Economy
Innovation Job creation Globalization
Impact on Society Impact on Larger Firms
Classification of Entrepreneurs
Types of Entrepreneurs
Business
Business Er.
Trading Er.
Industrial Er.
Corporate Er.
Agricultural Er.
Technology
Technical Er.
Non-technical
Er.
Professional Er.
Motivation
Pure Er.
Induced Er.
Motivated Er.
Spontaneous Er.
Growth
Growth Er.
Super-growth Er.
Stages in Developmen
t
First Generation
Er.
Modern Er.
Classical Er.
Clarence Danhof
Innovating Er.
Imitating Er.
Fabian Er.
Drone Er.
Reasons for becoming an Entrepreneur
Reasons for becoming an Entrepreneur
Traits Approach
High Need Achievement
Risk Taking Propensity
Tolerance for Ambiguity
Innovation
IntuitionInternal Locus of Control
Low need for Conformity
High need for Independence &
Autonomy
Proactive
Reasons for becoming an Entrepreneur
Environmental Approach
Cultural Phenomenon
Family Background
Education & Experience
Push/Pull Factors
Marginal/Displacement
Approach
Reasons for becoming an Entrepreneur
Behavioral/Managerial Approach
• Entrepreneurial Skills
• Managerial Skills
Myths about Entrepreneur
Myths About Entrepreneur
Common Myths
Entrepreneurs are born not made
Entrepreneurs are gamblers
Entrepreneurs are motivated
primarily by money
Entrepreneurs should be young
and energetic
Entrepreneurs love the spotlight