What is an Entrepreneur

An entrepreneur is defined as “person in effective control of commercial undertaking; one who

undertakes a business or an enterprise”.

Entrepreneurship

• Entrepreneurship is the act of being an entrepreneur, who starts any economic activity for being self-employed.

• Entrepreneurship is the “process of the entrepreneur”. It is an attempt to create value through recognition of business opportunity. It is basically communicative and management functions to mobilize financial and material resources.

Who is an Entrepreneur.......??

Entrepreneurial CharacteristicsBeing an entrepreneur requires specific characteristics and skills that are often achieved through education, hard work, and planning.

Risk TakerBusinesses face risk. Entrepreneurs minimize risk through research, planning, and skill development.

PerceptiveEntrepreneurs view problems as opportunities and challenges.

CuriousEntrepreneurs like to know how things work. They take the time and initiative to pursue the unknown.

Scope and Challenges of Entrepreneur

Scope of Entrepreneurs

Small- scale business provides good scope for the growth of entrepreneurial activities .An entrepreneur has good opportunity and vast scope in selling service rather than manufacturing a product. The entrepreneur can achieve better results if the size of the business is small. It is for this reason that small firms have higher productivity, greater efficiency and low labour turnover.

Conti..

The scope for entrepreneurial activities in small business sector can broadly be classified into:

• Industrial sector• Agricultural and allied industrial sector• Service sector

INDUSTRIAL SECTOR• Small scale industries occupy an important place in the

industrial sector. They have contributed over 40% in the gross industrial production in 1998.

• Small- scale industries: The basic objectives underlying the development of small- scale are the increase in the supply of manufactured goods, promotion of capital information the development of indigenous entrepreneurial talents and skills and the creation of broader employment opportunities. This sector provides a wider scope for the potential entrepreneur to develop his or her own industry. There is a good scope and enormous potential to use technology based products in the small- scale sector.

Conti..• An entrepreneur can exploit a profitable venture in any of the

industries reserved for exclusive department under the small- scale sector. There are as many at 384 items for exclusive purchase from the small- scale industries.

• Small- scale industries play an important role in increasing the national income, in meeting the shortage of consumer’s goods, in promoting balanced regional development, in reducing inequalities in the distribution of income and wealth and in relieving the economic pressure on land and over crowding in urban areas. Outdated technology, shortage of finance, shortage of raw material and inadequate marketing facilities are some of the problems faced by small entrepreneurs.

AGRICULTURAL AND ALLIED INDUSTRIAL SECTOR

• There is a vast cope for entrepreneurial activities in the agricultural sector. By establishing a link between agriculture and allied industries, the rural entrepreneur can exploit opportunities in areas of farming, agricultural processing and marketing. The government has given priority to IRDP programme and ensured adequate flow of credit to small and marginal farmers through re-financing facilities and by establishing national bank for agriculture and small development.

Conti..• Trade: Trading takes place in wholesaling and retailing. It

may be in domestic or overseas market. The retailer entrepreneur makes the goods available at the time and places the consumer wants them. He may decide to start single line store, specialty shop, departmental store etc. trade in overseas market is in wholesale. The business environment directly influences the growth of entrepreneurship in a particular line of trade. The trade policy of India has been directed to promote export. Hence incentives and facilities have been provided to the entrepreneurs to motivate them to develop export.

SERVICE SECTOR• The service sector has gained importance for the

entrepreneurs because of its rapid expansion. Service sector includes all kinds of business and provides opportunities to the entrepreneurs in business such as hotels, tourist services, personal services such as dry cleaning, beauty shops, photographic studies, auto repair, electric repair shops, wielding repair etc.

• Transport: They provide time and place utilities in urban and rural areas to both men and material. The different modes or transport are of immense importance in the areas, which are not served by roads and railways. There is a scope for entrepreneur to design prototypes of new carts with the application of indigenous technology so that they may have better mobility and greater carrying capacity.

Conti...• The rural economy has a good opportunity for an entrepreneur

to develop some business. They can exploit possibilities for a venture in some shops or services. Entrepreneurship flourishes in small business sector for they have enormous opportunities in manufacturing and non- manufacturing activities The government is keen in encouraging the competitive strength of the small scale producers and it has taken a number of measures such as:-

• The establishment of a network of industrial estates through ought the country where work sheds equipped with the necessary facilities made available to prospective entrepreneurs on subsidized rental basis.

Conti..• The reservation of a number of products for the exclusive

production to small sector• The introduction of ancillarization programmed under which large

and small industries are to be linked in a harmonious productive relationship

• The supply of machines on hire purchase basis to the small entrepreneurs on easy terms of payment

• Technical counseling to small units so as to improve their efficiency and viability

• These are golden opportunities for the prospective entrepreneurs to self employed independent businessman. The future is very bright.

Challenges of Entrepreneur Entrepreneurship comes with a host of challenges.

Rewarding challenges, but harsh challenges nonetheless. Experienced entrepreneurs have to deal with this no matter how long they’ve been in business trying to establish a brand, adjust to match or exceed the competition and keep your business profitable is a challenge no matter how many years you’ve been in business. But for new and young entrepreneurs, there are some unique challenges that are especially difficult to overcome.

If you’re just getting into the game, or you’re thinking about becoming an entrepreneur, be prepared for these eight significant hurdles.

1. Abandoning another career If you’re going to dedicate yourself to starting and nurturing a business to

success, it’s going to be nearly impossible to simultaneously manage another career. You might be able to manage the infancy of your business on the side, during weeknights and weekends, but if you want a chance of growing significantly, invariably you’ll have to quit your day job. Walking away from a promising, steady long-term opportunity for something unpredictable is scary -- especially if you’ve never run a business before. Unfortunately, there’s no easy way to address this. Just think through your decision logically, and don’t ignore your instincts.

2. Financing Experienced entrepreneurs don’t have it easy when it comes to funding a

new business, but they do have a few advantages over newcomers. They might have a pool of capital from a business they previously sold or a steady stream of revenue they can use to fund a new business’s cash flow. Even if their first business went under, they’ve likely made investment contacts and client connections necessary to give them a leg up in a new enterprise.

3. Teambuilding This is especially hard if you’ve never run or managed a team before, but

even if you have management experience, picking the right team for a startup is stressful and difficult. It’s not enough to find candidates who fill certain roles you also need to consider their cost to the business, their culture fit and how they’ll work as part of your overall team. Such considerations are exceptionally hard when you’re under the pressure of filling those positions as soon as possible.

4. Being the visionary As the founder of your startup, you’ll be expected to come up with the

ideas. When a competitor emerges, it will be your responsibility to come up with a response plan. When your team hits an impenetrable obstacle, your job will be to come up with an alternative plan to move forward. This demands on-the-spot creative thinking -- which should be an oxymoron, but entrepreneurs rarely have the luxury of time. The less experience you have, the more pressure you’ll feel from this, and the harder time you’ll have coming up with acceptable plans.

5. Dealing with the unknown How long will your business exist? How profitable will your business be?

Will customers like your product? Will you be able to give yourself a steady paycheck? None of these questions has a solid, reliable answer, even in startups based on great ideas with all the resources they’d theoretically need. That unknown factor means your job stability is going to plummet, and many of your long-term plans will remain in flux as new developments emerge. Dealing with this volatility is one of the hardest parts of emerging as a new entrepreneur.

6. Loneliness It’s a rarely mentioned problem of entrepreneurship, and many new

business owners aren’t prepared for it until it happens. Being an entrepreneur is lonely. It’s a singular position, so you won’t have teammates to rely on (completely). You’ll be working lots of hours, so you won’t see your family as often. And your employees will be forced to remain at a bit of a distance.

7. Rule-making It’s fun to be the boss until you have to enforce something. Sooner or

later, you’ll have to come up with the rules your business follows, from how many vacation days your workers get to what the proper protocol is when filing a complaint about a coworker. These details aren’t fun to create, and they aren’t fun to think about, but they are necessary for every business.

8. Decision-making Believe it or not, this is probably the most stressful challenge on this list.

New entrepreneurs are forced to make hundreds of decisions a day, from big, company-impacting decisions, to tiny, hour-affecting ones. Decision fatigue is a real phenomenon, and most new entrepreneurs will experience it if they aren’t prepared for the new level of stress. If you can work your way past these major obstacles, you’ll be well on your way to establishing yourself as an entrepreneur. That isn’t to say they won’t continue to nag at you as the years go on, or that new and varied challenges won’t arise to take their place, but you’ll be prepared to handle yourself in those most volatile and impactful first few months -- and that puts you far ahead of the competition.

Conclusion • B-Schools have a significant role to play in the growth of India as a

nation because they are the breeding grounds for future entrepreneurs. They have the potential to develop not only winning personal qualities but also provide an opportunity to create employment for self and for others. Entrepreneurship, self employment and enterprise creation provide a solution to the crises of both unemployment and under-employment. The B-Schools help in increasing knowledge base, by identifying opportunities, and by pointing out ways to overcome barriers imposed by ones environment. They have a definite role in enhancing entrepreneurship by enlarging the pool of entrepreneurs in society. Therefore, the Indian government should take appropriate measures to promote and develop entrepreneurial education in India.

Thank you !!

Any queries ??

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