Entrepreneueship

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Entrepreneurship

DevelopmentIntroduction

Entrepreneurship is one ofthe four mainstreameconomic factors: Land,

Labour, capital, andentrepreneurship. Theword itself is derived from

the french word


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Entrepreneurship is the purposefulactivit" of an individual or a #roup ofassociated individuals, undertaen to

initiate, maintain pro$t b" production ordistribution of economic #oods andservices.

% &. '. (ole

Entrepreneurship is based on purposefuland s"stematic innovation. It included notonl" the independent businessman but alsocompan" directors and mana#ers who

actuall" carr" out innovative functions.% )chumpeter

Entrepreneurship is the d"namic processof creatin# incremental wealth.


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TheEntrepreneu

r*ichard (antillon, was the $rst whointroduced the term entrepreneur .

The term entrepreneur is broadl"classi$ed into three #roups:

-


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Investment

Transformation

ro$t orloss

Entrepreneurbu"s farmproduce at

certain prices

Entrepreneurrepacs and

transports farmproduce to

maret

Entrepreneursells food

produce in cit" atuncertain prices

/i#ure: (antillons Earl" view ofEntrepreneurial 0ehaviour


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1 &s an 2r#aniser: &n entrepreneur is onewho combines the land of one, thelabour of another and the capital of "etanother, and thus, produces a product.

% 3ean 0aptiste

4 &s an innovator: Economic development

as a discrete d"namic chan#e brou#htb" entrepreneur b" institutin# newcombinations of production i.e.innovations.

% 3oseph &. )chumpeter

Thus, an entrepreneur can be de$ned as aperson who tries to create somethin#new , or#anises production andundertaes ris and handles economic


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Emer#ence of

Entrepreneurial (lassEarliest eriod: contractors witha mone" person 5forerunner of

toda"s venture capitalist, e#:traders, merchants

6iddle es: & person who

mana#ed lar#e production pro7ects.E#: (leric - the person inchar#e of#reat architectural wors

+8th

(entur": &s a ris taer,bu at a certain rice and sell at an


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+9th(entur": (apital users, not capitalproviders 5 the present - da" venture

capitalist

+thand 1;th(enturies: 6ana#ers ,&s an Innovator

?arhanas

) @ueen of International Trade in +9th


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1 Durin# ost%

Independence:articularl" since the Third /iveAear lan - small entrepreneurs

)mall to medium - scale, mediumto lar#e - scale manufacturin#.E#: Tata, 0irla, 6afatlal, Dalmia,

?irlosar


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(haracteristics 2f &nEntrepreneur

1.Hard Work

2.Desire for High Achievement

3.Highly Optimisitc

4.Independence

.!oresight

".#ood Organiser

$.Innovative


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Distinction 0etween anEntrepreneur and a 6ana#er

+. 6otive

1. )tatus

4. *is - 0earin#

B. *ewards

C. Innovation

. @uali$cations


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T"pes 2fEntrepreneurs

+. Innovative Entrepreneurs

1. Imitative > &doptive

Entrepreneurs

4. /abian Entrepreneurs


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)ome 6ore T"pes 2f Entrepreneurs

+. )olo 2perator

1. 0" Inheritance

4. Tradin#

B. Industrial

C. ricultural

. Technical

8. on%technical

9. /irst


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(oncept 2f

Intrapreneurs>(orporate

Entrepreneur%


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*elationship 0etweenEntrepreneur and

EntrepreneurshipEntrepreneur Entrepreneurship

%erson

OrganiserInnovator&isk ' (earer

)otivator*reator+is,aliser-eaderImitator

%rocess

OrganisationInnovation&isk ' (earing

)otivation*reation+ision-eadershipImitation


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Drucers Hiews on Entrepreneur

An entrepreneur is the one who always searches for change,

responds to it and exploits it as an opportunity. Innovation is

the specic tool of entrepreneurs, the means by which they

exploit changes as an opportunity for a dierent business or

dierent service

&dam )mith

The entrepreneur is an individual who forms an organiation for

commercial purpose. !e " #he is proprietary capitalist, a

supplier of capital and at the same time a manager who

intervenes between the labor and the consumer.

$ntrepreneur is an employer, master, merchant but explicitly


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According to .(.say/ 0ntreprene,r is an conomic agent to ,nitesall the means of prod,ction An entreprene,r is an individ,al hotakes moderate risks and rings innovation.

E:5amine needs/ ants/ and prolems to see ho they canimprove the ay needs and ants are met and prolemsovercome.: arro the possile opport,nities to one speci6c 7est7

opport,nity.T:hink of innovative ideas and narro them to the 7est7 idea.*:esearch the opport,nity and idea thoro,ghly.E:nlist the est so,rces of advice and assistance that they can6nd.:lan their vent,res and look for possile prolems that might

arise.*:ank the risks and the possile reards.E:val,ate the risks and possile reards and make their decisionto act or not to act.:ever hang on to an idea/ no matter ho m,ch they may love it/if research shos it on8t ork.

E:mploy the reso,rces necessary for the vent,re to s,cceed.:nderstand that they ill have to ork long and hard to make


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8 e" @ualities of Entrepreneur

All s,ccessf,l entreprene,rs have the folloing :,alities;

1. Inner Drive to


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0arriers to entrepreneurship

Economic barriers

(apitalLabour

*aw material

on%economic barriers

(ultural bloc

ractical values

Importance of lo#ic

*espect for entrepreneurs

Tradition 0indin#

Emotional bloc


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ersonal barriers to entrepreneurship

Lac of sustained motivation

DiJcult" with ambi#uit"5orderlinessInabilit" to dream and use subconscious

Impatience in solvin# problems

*is &voidance5anal"sin# how to #et

thin#s done rather than worr"in# about

what to do if the" fail

Lac of (lear perception5Tunnel vision%

i#nore the obvious


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Entrepreneurial barriers for speci$c#roups

=omen Entrepreneurs

/amil" Ties )ocial attitude towards women Low mobilit"0arriers for minorit" #roups )ame as barriers for ma7orit"

communit"


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otential drawbacs ofentrepreneurship

?ncertainty of income

&isk of losing entire investment

-ong ho,rs and hard ork

High levels of stress

*omplete responsiility

Disco,ragement


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=hat attracts theentrepreneurs

ntreprene,rs as heroes

ntreprene,rial ed,cation

Demographic and economic factors


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0ene$ts of entrepreneurship

Opport,nity to create yo,r on destiny

Opport,nity to make a diBerence

Opport,nity to reach yo,r f,ll potential

Opport,nity to reap impressive pro6ts

Opport,nity to contri,te to society and erecogni9ed for yo,r eBorts

Opport,nity to do hat yo, en>oy and havef,n at it


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The cultural diversit" ofentrepreneurs

Co,ng entreprene,rsWomen entreprene,rs)inority entreprene,rsImmigrant entreprene,rsDon *hang!orever21E%arttime entreprene,rsoe *armen


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+; deadl" mistaes ofentrepreneurship

)anagement )istakes

-ack of e5perience

%oor !inancial *ontrol

Weak )arketing eBorts

!ail,re to develop a strategic plan

?ncontrolled groth

%oor location

Improper inventory control

Incorrect pricing

Inaility to make 0ntreprene,rial transition


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Deadl" 6istaes

We have a great prod,ct or serviceG It ill

sell itself.With a market this ig/ e only need a tinyshare of it to ecome rich.


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Deadl" 6istaes

-et ,s go ith the location. I kno its oB the

eaten path/ ,t its so m,ch cheaper.*omp,terF I dont kno anything ao,tcomp,ters. A legal pad and an addingmachine are all I need to manage my,sinessFWe are so small here. veryody knos hat

o,r goals and o>ectives are.@his ,siness is so easy it ill r,n itself.Of co,rse o,r c,stomers are satis6edF I neverhear them complain.What do yo, mean e are o,t of cashG Wehave een making a pro6t for months no/

and sales are groing.


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'ow to avoid the pitfalls

Jno yo,r ,siness in depth

Develop a solid ,siness plan

)anage !inancial reso,rces

?nderstand !inancial

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Entrepreneueship