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ENTREPRENEURSHIPENTREPRENEURSHIP
DEVELOPMENTDEVELOPMENTBBABBA--V SEMV SEM
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Entrepreneur Manager
1. Motive Start a venture by setting
up
an enterprise for personal
gratification. Wants
freedom & self reliance.
To render services in an
enterprise set up by
someone else. Wants
promotion, power, salary.
2.Status Owner and is not very
status conscious
Is a worker, and conscious
about status.
3.Risk Bearing Assumes all the risks of
carrying on business.
Takes moderate risks
Does not bear risk
4. Innovation Acts as an innovator and
change agent
Simply translates and
implements the
entrepreneurs plans
5.Qualifications May not have formal
qualifications , but has
qualities like originality,foresight, risk bearing
Generally has formal
qualifications like
management degrees.
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Entrepreneur Manager
6. Rewards The profit earned by the
enterprise. It is highly
uncertain.
Salary is certain and fixed.
7. Decisions Decisive and action
oriented
Implements the owners
decisions.
8. Courage &
Destiny
Confident and see
themselves as owners of
their destiny.
They see others in charge of
their own destiny
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According to the type of business
Use of technology
MotivationGrowth
Stages of development
Area
Gender and ageScale of operation
Others
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According to the type of business1. Business Entrepreneur: They conceive an idea
for a new product or service and then create a
business to turn the idea into reality. They use
and develop both production and marketing
resources to start a business.(Small unit)
2. Trading Entrepreneur: They undertake only
trading activities and not manufacturing. They
identify potential markets, stimulate demand
and create a desire among consumers. May
be engaged in domestic or foreign trade.
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According to the type of business3. Industrial Entrepreneur: A manufacturer who
identifies the potential needs of customers
and produces a product which will satisfythose needs.(Generally large units)
4. Corporate Entrepreneur: A person who
demonstrates his innovative skills in
organising and managing a corporateundertaking. He plans, develops and manages
a corporate body such as a public limited
company or a trust. (Dhirubhai Ambani)
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According to the type of business5. Agricultural Entrepreneur: They undertake
agricultural activities such as raising and
marketing of crops, fertilizers etc. They mayuse mechanization and technology and would
include agriculture and allied occupations.
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According to use of Technology1. Technical Entrepreneurs : He develops
improved quality of goods because of his
skills and concentrates more onmanufacturing than marketing.
2. Non- Technical Entrepreneurs: They are not
concerned with the technical aspects of the
product. They only develop alternativemarketing and distribution strategies for their
products.(Baron International)
3. Professional Entrepreneurs :He is interested
in
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establishing a business , but does not have
interest in managing or operating it. They sell
their businesses and start another venturewith the proceeds.(Sabeer Bhatia of Hotmail)
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According to Motivation1. Pure Entrepreneur: They are motivated by
psychological & economic rewards
(achievement,personal satisfaction, money)2. Induced Entrepreneur: They are induced to
take up entrepreneurial activity on account
the facilities, incentives etc provided by the
govt e.g. incentives for SSIs, financial support ,facilities for exports etc
3. Spontaneous Entrepreneur: They start their
business with their natural talents.They are
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people with confidence, initiative,
boldness etc , which motivates them to
undertake entrepreneurial activity.
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According to Growth
1. Growth Entrepreneurs: are those , who
take up a high growth industry, which
has substantial growth prospects . (IT,Telecom)
2. Super Growth Entrepreneurs: Those who
have shown enormous growth ofperformance in their ventures, which is
reflected in profits, liquidity etc.(Airtel,
Zee)
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According to Stages of development
1. First Generation Entrepreneurs: are
those , who start an industrial
undertaking through innovation andcombining various resources.(J N Tata)
2. Modern Entrepreneurs: Those who
undertake ventures, which suit currentmarket needs.
3. Classical Entrepreneurs: Those who are
concerned with starting an enterprise
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According to Stages of development
aimed at satisfying the consumers
needs and maximising profits.
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According to Area
1. Rural : Entrepreneurs who set up units inrural areas. They generally pertain to
agriculture and allied industries. They requireless investment and low power consumption
2. Urban : Entrepreneurs who set up units inurban areas, such as industrial areas, SEZs etc.
They are larger undertakings employinghundreds of people.
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According to Gender and age
1. Men
2. Women
3. Young4. Old
5. Middle aged
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According to Scale of operations
1. Larger scale: large undertakings, employinglarge no. of people, with no limit on
investment.2. Small Scale: Industrial undertakings in
which there is a maximum investment of Rs 1
cr (Rs 5 cr for some categories e.g. sports
goods), employ limited no. of people and havelimited power requirements etc.
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Others: Clarence Danhof has classified
entrepreneurs on the basis of stages of
economic development:
1. Innovating Entrepreneurs: They introducenew goods, new methods of production,
discover new markets etc. They can exist only
if a certain level of development exists in the
economy.
2. Adoptive or Imitative entrepreneurs:They imitate technology and techniques used
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by others. They do not innovate. Such
entrepreneurs are suitable for
underdeveloped/ developing nations. They
may adapt the business according to localrequirements.
3. Fabian Entrepreneurs :They have atraditional outlook and do not believe in
introducing changes in the nature of businessor adopting new methods. Their work is
determined by traditions, customs, religion
etc.
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4. Drone Entrepreneurs: They also operate ina traditional way and resist any changes in the
manner of doing business/method ofproduction, even if they suffer losses. Their
purpose is to exist and not grow.
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Theories of EntrepreneurshipTheories of Entrepreneurship
1. Economic Theory2. Leibensteins X Efficiency Theory3. Dynamic Entrepreneurship Innovation Theory4. Harvard School Theory5. Theory of High Achievement6. Theory of Change7. Theory of Profit8. Theory of adjustment of price9. Theory of market
10. Theory of social change11. Theory of entrepreneurial supply12. Theory of personal resourcefulness13. Theory of Cultural Values.
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