Download VTU (Visvesvaraya Technological University) MBA 2nd Semester (Second Semester) 17MBA26-Entrepreneurial Development Module 1 Entrepreneur Important Lecture Notes (MBA Study Material Notes)
ENTREPRENEUR
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
Specific Problems faced by
entrepreneurs
? Specific management problems
- management deficiency
- Finance
- Manufacturing and technical problems
- product planning
- Selection of equipment, P&M
- Human resources development
- Technical know-how
- Preparation of project report
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
Specific Problems faced by
entrepreneurs
? Specific management problems
- management deficiency
- Finance
- Manufacturing and technical problems
- product planning
- Selection of equipment, P&M
- Human resources development
- Technical know-how
- Preparation of project report
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
Specific Problems faced by
entrepreneurs
? Specific management problems
- management deficiency
- Finance
- Manufacturing and technical problems
- product planning
- Selection of equipment, P&M
- Human resources development
- Technical know-how
- Preparation of project report
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
Specific Problems faced by
entrepreneurs
? Specific management problems
- management deficiency
- Finance
- Manufacturing and technical problems
- product planning
- Selection of equipment, P&M
- Human resources development
- Technical know-how
- Preparation of project report
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Capacity building for entrepreneurs
India has extra-ordinary talent pool. India must
develop successful entrepreneurs:
1. Create the right environment for success
2. Ensure entrepreneurs have access to the
right skills
3. Ensure that entrepreneurs have access to
smart capital
4. Enable networking and exchange
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
Specific Problems faced by
entrepreneurs
? Specific management problems
- management deficiency
- Finance
- Manufacturing and technical problems
- product planning
- Selection of equipment, P&M
- Human resources development
- Technical know-how
- Preparation of project report
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Capacity building for entrepreneurs
India has extra-ordinary talent pool. India must
develop successful entrepreneurs:
1. Create the right environment for success
2. Ensure entrepreneurs have access to the
right skills
3. Ensure that entrepreneurs have access to
smart capital
4. Enable networking and exchange
Entrepreneurial culture
? Not inborn skill, product of environment
? Complex social and economic behaviour
? Dynamic and responsible to environment
? Flourishes in right environment
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
Specific Problems faced by
entrepreneurs
? Specific management problems
- management deficiency
- Finance
- Manufacturing and technical problems
- product planning
- Selection of equipment, P&M
- Human resources development
- Technical know-how
- Preparation of project report
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Capacity building for entrepreneurs
India has extra-ordinary talent pool. India must
develop successful entrepreneurs:
1. Create the right environment for success
2. Ensure entrepreneurs have access to the
right skills
3. Ensure that entrepreneurs have access to
smart capital
4. Enable networking and exchange
Entrepreneurial culture
? Not inborn skill, product of environment
? Complex social and economic behaviour
? Dynamic and responsible to environment
? Flourishes in right environment
Characteristics of Entrepreneurial
culture
? Increase awareness of Entrepreneurial
opportunities.
? Intensify enterprise education and awareness
campaigns
? Create identifiable role models and champions
? Establish mentor and patron panels
? Incentives and support for business sucession
? Create incentives for SMEs to take apprentices
? Enhance Intrapreneurship (taken from guide)
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
Specific Problems faced by
entrepreneurs
? Specific management problems
- management deficiency
- Finance
- Manufacturing and technical problems
- product planning
- Selection of equipment, P&M
- Human resources development
- Technical know-how
- Preparation of project report
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Capacity building for entrepreneurs
India has extra-ordinary talent pool. India must
develop successful entrepreneurs:
1. Create the right environment for success
2. Ensure entrepreneurs have access to the
right skills
3. Ensure that entrepreneurs have access to
smart capital
4. Enable networking and exchange
Entrepreneurial culture
? Not inborn skill, product of environment
? Complex social and economic behaviour
? Dynamic and responsible to environment
? Flourishes in right environment
Characteristics of Entrepreneurial
culture
? Increase awareness of Entrepreneurial
opportunities.
? Intensify enterprise education and awareness
campaigns
? Create identifiable role models and champions
? Establish mentor and patron panels
? Incentives and support for business sucession
? Create incentives for SMEs to take apprentices
? Enhance Intrapreneurship (taken from guide)
Dimensions of entrepreneurial culture
? Individual v/s collectivism
? Masculinity v/s feminity
? High v/s low power distance
? Uncertainty avoidance
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
Specific Problems faced by
entrepreneurs
? Specific management problems
- management deficiency
- Finance
- Manufacturing and technical problems
- product planning
- Selection of equipment, P&M
- Human resources development
- Technical know-how
- Preparation of project report
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Capacity building for entrepreneurs
India has extra-ordinary talent pool. India must
develop successful entrepreneurs:
1. Create the right environment for success
2. Ensure entrepreneurs have access to the
right skills
3. Ensure that entrepreneurs have access to
smart capital
4. Enable networking and exchange
Entrepreneurial culture
? Not inborn skill, product of environment
? Complex social and economic behaviour
? Dynamic and responsible to environment
? Flourishes in right environment
Characteristics of Entrepreneurial
culture
? Increase awareness of Entrepreneurial
opportunities.
? Intensify enterprise education and awareness
campaigns
? Create identifiable role models and champions
? Establish mentor and patron panels
? Incentives and support for business sucession
? Create incentives for SMEs to take apprentices
? Enhance Intrapreneurship (taken from guide)
Dimensions of entrepreneurial culture
? Individual v/s collectivism
? Masculinity v/s feminity
? High v/s low power distance
? Uncertainty avoidance
Creating entrepreneurial culture
? Treat people with respect
? Help employees to stay healthy
? Open doors to communication
? Build comeraderie
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
Specific Problems faced by
entrepreneurs
? Specific management problems
- management deficiency
- Finance
- Manufacturing and technical problems
- product planning
- Selection of equipment, P&M
- Human resources development
- Technical know-how
- Preparation of project report
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Capacity building for entrepreneurs
India has extra-ordinary talent pool. India must
develop successful entrepreneurs:
1. Create the right environment for success
2. Ensure entrepreneurs have access to the
right skills
3. Ensure that entrepreneurs have access to
smart capital
4. Enable networking and exchange
Entrepreneurial culture
? Not inborn skill, product of environment
? Complex social and economic behaviour
? Dynamic and responsible to environment
? Flourishes in right environment
Characteristics of Entrepreneurial
culture
? Increase awareness of Entrepreneurial
opportunities.
? Intensify enterprise education and awareness
campaigns
? Create identifiable role models and champions
? Establish mentor and patron panels
? Incentives and support for business sucession
? Create incentives for SMEs to take apprentices
? Enhance Intrapreneurship (taken from guide)
Dimensions of entrepreneurial culture
? Individual v/s collectivism
? Masculinity v/s feminity
? High v/s low power distance
? Uncertainty avoidance
Creating entrepreneurial culture
? Treat people with respect
? Help employees to stay healthy
? Open doors to communication
? Build comeraderie
Maintaining entrepreneurial culture
? Let the team build itself
? Participative without controlling
? Do not forget the little things
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
Specific Problems faced by
entrepreneurs
? Specific management problems
- management deficiency
- Finance
- Manufacturing and technical problems
- product planning
- Selection of equipment, P&M
- Human resources development
- Technical know-how
- Preparation of project report
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Capacity building for entrepreneurs
India has extra-ordinary talent pool. India must
develop successful entrepreneurs:
1. Create the right environment for success
2. Ensure entrepreneurs have access to the
right skills
3. Ensure that entrepreneurs have access to
smart capital
4. Enable networking and exchange
Entrepreneurial culture
? Not inborn skill, product of environment
? Complex social and economic behaviour
? Dynamic and responsible to environment
? Flourishes in right environment
Characteristics of Entrepreneurial
culture
? Increase awareness of Entrepreneurial
opportunities.
? Intensify enterprise education and awareness
campaigns
? Create identifiable role models and champions
? Establish mentor and patron panels
? Incentives and support for business sucession
? Create incentives for SMEs to take apprentices
? Enhance Intrapreneurship (taken from guide)
Dimensions of entrepreneurial culture
? Individual v/s collectivism
? Masculinity v/s feminity
? High v/s low power distance
? Uncertainty avoidance
Creating entrepreneurial culture
? Treat people with respect
? Help employees to stay healthy
? Open doors to communication
? Build comeraderie
Maintaining entrepreneurial culture
? Let the team build itself
? Participative without controlling
? Do not forget the little things
Steps to introduce changes in ent
culture
? Organisational self-analysis
? New core vision and mission
? Communication
? Involvement
? New human resources practice
? New org structure
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
Specific Problems faced by
entrepreneurs
? Specific management problems
- management deficiency
- Finance
- Manufacturing and technical problems
- product planning
- Selection of equipment, P&M
- Human resources development
- Technical know-how
- Preparation of project report
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Capacity building for entrepreneurs
India has extra-ordinary talent pool. India must
develop successful entrepreneurs:
1. Create the right environment for success
2. Ensure entrepreneurs have access to the
right skills
3. Ensure that entrepreneurs have access to
smart capital
4. Enable networking and exchange
Entrepreneurial culture
? Not inborn skill, product of environment
? Complex social and economic behaviour
? Dynamic and responsible to environment
? Flourishes in right environment
Characteristics of Entrepreneurial
culture
? Increase awareness of Entrepreneurial
opportunities.
? Intensify enterprise education and awareness
campaigns
? Create identifiable role models and champions
? Establish mentor and patron panels
? Incentives and support for business sucession
? Create incentives for SMEs to take apprentices
? Enhance Intrapreneurship (taken from guide)
Dimensions of entrepreneurial culture
? Individual v/s collectivism
? Masculinity v/s feminity
? High v/s low power distance
? Uncertainty avoidance
Creating entrepreneurial culture
? Treat people with respect
? Help employees to stay healthy
? Open doors to communication
? Build comeraderie
Maintaining entrepreneurial culture
? Let the team build itself
? Participative without controlling
? Do not forget the little things
Steps to introduce changes in ent
culture
? Organisational self-analysis
? New core vision and mission
? Communication
? Involvement
? New human resources practice
? New org structure
Presentations
? Classification of entrepreneurs (other criteria)
? Barriers to entrepreneurs
? Entrepreneurial development models
? Problems faced by entrepreneurs
FirstRanker.com - FirstRanker's Choice
Module 1
ENTREPRENEUR
SYLLABUS
? Meaning of entrepreneur, evolution of the
concept, functions of an entrepreneur, Types
of entrepreneur, Intrapreneur-an emerging
class, concept of Entrepreneurship-evolution
of Entrepreneurship, development of
entrepreneurship, The entrepreneurial
culture, stages in entrepreneurial process.
? Reference books?
Meaning of entrepreneur
The commonest definition of an entrepreneur
is a person who organizes, manages and takes
the risk of running an enterprise.
Meaning of entrepreneur
? In economics and commerce, entrepreneur is
an economic leader who possesses the ability
to ???
??.recognise opportunities for the successful
introduction of new commodities, new
techniques, and new sources of supply,
??.and to assemble the necessary plant and
equipment, management and labour force
??.and organise them into a running concern
India needs entrepreneur. . .
? To capitalise on new opportunities
? To create wealth and new jobs
? Traditional employers find it difficult to create
new jobs
? Knowledge based economy ?fertile ground for
entrepreneurs
Why should you become an
entrepreneur?/charms
? Own boss/to others
? Make decisions that are crucial to business?
success/failure
? Chance to put your ideas into practice
? You will make money for self than for others
? Gain experience in every discipline of business
? Chance to work directly with customers
? Satisfaction of creating/running a business
? You will work in an area you enjoy
? Chance to build retirement value
Evolution/History of entrepreneur
? The word 'entrepreneur' has been taken from
the French language where it cradled and
originally meant to designate an organiser of
musical or other entertainments.
? Oxford English Dictionary (in 1897) also
defined as "the director or a manager of a
public musical institution, one who 'gets-up'
entertainment, especially musical
performance".
? In the early 16th century, it was applied to
those who were engaged in military
expeditions.
Evolution/history?
? It was extended to cover civil engineering
activities such as construction and fortification
in the 17th century
? In 18
th
century that the word was used to refer
to economic aspects.
? In this way, the evolution of the concept of
entrepreneur is considered over more than
four centuries.
? Since then, the term entrepreneur' is used in
various ways and various views - broadly
classified into three groups, namely, risk-
bearer, organizer and innovator.
Functions of entrepreneur
? Entrepreneur as a risk- bearer
? Entrepreneur as an organizer
? Entrepreneur as an innovator
Staffing
?Procuring machine and material
?Raising necessary funds
?Sales/marketing promotional formalities
?Form of ownership
?Business objective.
What makes him successful ?
According to EDI, India,
? Initiation
? Watching for opportunities
? Persistence
? Information seeker
? Quality conscious
? Commitment to work
? Efficiency lover
? Proper planning
? Self-confidence
? Assertiveness
? Persuasion
? Efficiency monitoring
? Concern for employees
Characteristics of a successful
entrepreneur
? Creativity
? Innovation
? Dynamism
? Leadership
? Team building
? Achievement motivation
? Problem solving
? Goal orientation
? Risk taking and decision making ability
? Commitment
(Read Poornima pages 53-63)
Characteristics of entrepreneur
Janakiraman
Watch this video
? https://www.youtube.com/watch?v=sOjeQV5
pHh4
Entrepreneurial core competencies
? Initiative
? Perceiving opportunities
? Persistence
? Information gathering
? Concern for quality work
? Commitment to contractual obligation
? Efficiency orientation
? Planning
? Problem solving
? Self-confidence
? Expertise
? Self critical
? Persuasion
? Use of influence strategies
? Assertiveness
? Monitoring
? Credibility
? Concern for employee welfare
? Impersonal relationships
? Expansion of capital base
? Building product image
Entrepreneurial skills
? Administrative skills
? Leadership skills
? Conflict management skills- emotional and
cognitive
? Interpersonal skills
? Communication skills- writing, speaking, listening
? Problem solving skills
? Technical skills
? Marketing skills
? Selling skills (Taken from
Guide)
Entrepreneur v/s manager
ASPECT ENTREPRENEUR MANAGER
MOTIVE Starts a venture for self
gratification
Renders service to already
set-up enterprise
STATUS Owner of the enterprise Employee in an enterprise
setup by entrepreneur
RISK BEARING Bears all risks and
uncertainties
Bears no risk
REWARDS Gets profits which is
uncertain
Gets fixed and certain
salary
INNOVATION Himself an innovator Implements entrepreneurs
ideas
QUALIFICATIONS Qualities like high
motivation, original
thinking, risk-bearing etc
Knowledge of management
theory and practice
Classification of entrepreneurs
Based on:
? Functional characteristics
? Developmental angle
? Types of business
? 9 personality types
? Schools of thought
(Read Poornima, pages 63-72)
Functional types of entrepreneurs
Clarene danhoff, 1969 classified as follows:
? 1. Innovating Entrepreneurs:
An innovating entrepreneur is one who introduces new
goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise.
? 2. Imitative Entrepreneurs:
These are characterized by readiness to adopt successful
innovations inaugurated by innovating entrepreneurs.
Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated
by others.
Functional types
3. Fabian Entrepreneurs:
Fabian entrepreneurs are characterized by
very great caution in experimenting any
change in their enterprises. They imitate only
when it becomes perfectly clear that failure to
do so would result in a loss of the relative
position in the enterprise.
Functional types
4. Drone Entrepreneurs:
These are characterized by a refusal to adopt
opportunities to make changes in production
formulae even at the cost of severely reduced
returns relative to other like producers. Such
entrepreneurs may even suffer from losses
but they are not ready to make changes in
their existing production methods.
Assignment
? Classify entrepreneurs based on the following
criteria:
? 1. Type of business
? 2.Use of technology
? 3. Motivation level
? 4. Growth
? 5. Stages of development
? 6. area
? 7. Scale of operation
Intrapreneurs
Of late, a new breed of entrepreneurs is
coming to the fore in large industrial
organisations. They are called
'intrapreneurs'.
? They emerge from within the confines of
an existing enterprise. In big
organizations, the top executives are
encouraged to catch hold of new ideas
and then convert these into products
through research and development
activities within the framework of
organization.
Intrapreneurs. . .
? The concept of intrapreneurship has become very
popular in developed countries like America. It is
found that an increasing number of intrapreneurs
is leaving their jobs in big organizations and is
starting own enterprises.
? Many of such intrapreneurs have become
exceedingly successful in their ventures. What is
more that they are causing a threat to the
organizations they left. Such intrapreneurs breed
to the innovative entrepreneurs who inaugurate
new products.
Concept of entrepreneurship
? Entrepreneur is a person who creates an
enterprise and and the process of creating an
enterprise is called entrepreneurship.
Definitions- Entrepreneurship
? Entrepreneurship is defined as a process of action an
entrepreneur undertakes to establish his enterprise.
? D C McClelland ? Entrepreneurship is doing things in a
new and better way and decision making under
conditions of uncertainty.
? Benjamin Higgins- it is a function of foreseeing
investment and production opportunity, organising an
enterprise to undertake a new production process,
raising capital, hiring labour, arranging for supply of
raw material, and selecting managers for the day-to-
day operation of the enterprise.
Definitions- Entrepreneurship
? Peter Drucker- entrepreneurship is neither a
science nor an art. It has a knowledge base.
Knowledge in entrepreneurship is a means to
an end. Indeed the end largely define what
contributes knowledge in practice.
? 16
th
century definition - a dealer who bought
a thing at a certain price and sold it at
uncertain price, making a profit.
Entrepreneurship
Conference on Entrepreneurship, USA defined it as ? it is
an attempt to create value through recognition of
business opportunity, the management of risk taking
appropriate to the opportunity, and through the
communicative and management skills to mobilise
human financial and material resources necessary to
bring a project to fruition
In the opinion of A.H. Cole,
"Entrepreneurship is the purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain profit by production
or distribution of economic goods and services".'
Entrepreneurship
? Entrepreneur and entrepreneurship often used
interchangeably. One is a tangible person and the
other is an intangible process.
? Schumpeter defines ?Entrepreneurship is based
on purposeful and systematic innovation. It
includes not only the individual businessman but
also company directors and managers, who
actually carry on innovative functions.
? (Various definitions page 52, Poorima)
Entrepreneurship-comments
? In all above definitions, entrepreneurship refers
to the functions performed by an entrepreneur in
establishing an enterprise. Just as management is
regarded as what managers do, entrepreneurship
may be regarded as what entrepreneurs do.
In other words, entrepreneurship is the act of
being an entrepreneur. Entrepreneurship is a
process involving various actions to be
undertaken to establish an enterprise. It is, thus,
process of giving birth to a new enterprise.
Entrepreneur v/s Entrepreneurship
BASIS ENTREPRENEUR ENTREPRENEURSHIP
MEANING Refers to a person Refers to a process
SPECIFIC QUALITIES Needs qualities like
creativity decision
making leadership
etc
It is the specific quality shown in an
entrepreneur
FUNCTION To establish an
enterprise. Like an
engine
To motivate an entrepreneur, like fuel
ECONOMIC POINT
OF VIEW
Initiator, innovator,
leader, planner, risk-
taken, motivator,
organiser, etc used
Initiative, innovation, leadership,
planning, risk taking, motivation etc used
Characteristics of Entrepreneurship
? Economic activity
? Purposeful activity
? Decision making
? Accepting challenge
? Risk taking
? Building organisation
? Dynamic process
? Gap-filling process
? Skilful management
? Innovation
? Resource mobilisation (Taken from guide)
Entrepreneurial development process
? Stage 1: Perceiving, identifying and evaluating
an opportunity
? Stage 2: Drawing up a business plan
? Stage 3: Marshalling resources
? Stage 4: Creating the enterprise
? Stage 5: Consolidation and management
Role in economic development
It plays an important role as follows:
?Entrepreneurship promotes capital formation
?It provides immediate large scale employment
?It promotes balance of regional development.
?It encourages effective utilization of capital
and natural resources
?It also promotes country?s export trade.
?New products and services
Role in economic development
? Dispersal of economic power
? Better standards of living
? Creating innovation
? Production evolution process
? Enhancing welfare amenities
Factors affecting Entrepreneurship
Economic factors:
Availability of economic resources
Economic conditions
Economic policies
Labour policies
Trade policy
Tariff policy
Incentives
Subsidies (taken from guide)
Factors affecting Entrepreneurship
Non-economic factors:
? Social
? Cultural
? Personality factors
? Psychological and sociological factors
? Technological factors
? Educational factors
? Motivation (Taken from Guide)
Problems of Entrepreneurship
? Internal problems - Planning, implementation,
Production (Poornima, page 78)
? External problems ? Infra, finance, marketing
taxation, RM, regulations, inspection,
technology, Government policy, admin
hurdles, rampant corruption, lack of direction,
competitive and volatile environment
(Poornima, page 80)
Specific Problems faced by
entrepreneurs
? Specific management problems
- management deficiency
- Finance
- Manufacturing and technical problems
- product planning
- Selection of equipment, P&M
- Human resources development
- Technical know-how
- Preparation of project report
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Myths of entrepreneurship
? Entrepreneurs are born, not made
? Entrepreneurs are academic and social misfits
? Entrepreneurs fit an ideal profile
? All you need is money to be an entrepreneur
? All you need is luck to be an entrepreneur
? A great idea is the only ingredient in a recipe of success
? My best friend will be a great business partner
? Having no boss is great fun
? I can make lots of money
? I will definitely become successful
? Life will be much simpler if I work for myself
Capacity building for entrepreneurs
India has extra-ordinary talent pool. India must
develop successful entrepreneurs:
1. Create the right environment for success
2. Ensure entrepreneurs have access to the
right skills
3. Ensure that entrepreneurs have access to
smart capital
4. Enable networking and exchange
Entrepreneurial culture
? Not inborn skill, product of environment
? Complex social and economic behaviour
? Dynamic and responsible to environment
? Flourishes in right environment
Characteristics of Entrepreneurial
culture
? Increase awareness of Entrepreneurial
opportunities.
? Intensify enterprise education and awareness
campaigns
? Create identifiable role models and champions
? Establish mentor and patron panels
? Incentives and support for business sucession
? Create incentives for SMEs to take apprentices
? Enhance Intrapreneurship (taken from guide)
Dimensions of entrepreneurial culture
? Individual v/s collectivism
? Masculinity v/s feminity
? High v/s low power distance
? Uncertainty avoidance
Creating entrepreneurial culture
? Treat people with respect
? Help employees to stay healthy
? Open doors to communication
? Build comeraderie
Maintaining entrepreneurial culture
? Let the team build itself
? Participative without controlling
? Do not forget the little things
Steps to introduce changes in ent
culture
? Organisational self-analysis
? New core vision and mission
? Communication
? Involvement
? New human resources practice
? New org structure
Presentations
? Classification of entrepreneurs (other criteria)
? Barriers to entrepreneurs
? Entrepreneurial development models
? Problems faced by entrepreneurs
Case studies
? Rags to riches- Dhirubhai Ambani
? Nirma story- Kasanbhai Patel
? The king of omega- Kunjachan
? Luck or persistence?
? Pain or partnership?
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This post was last modified on 18 February 2020