who is entrepreneur

Who is Entrepreneur??????

• Not Just Small Companies• Not Just Start-Ups• Not Just For-Profit Firms• Not Just Non-Government• Certainly not many “dot.com’s”

What is Entrepreneurship?

It is an Attitude or Approach to Management that Starts with Opportunity.

Entrepreneurs• Do things that are not generally done in the

ordinary course of business• Some entrepreneurs become

celebrities...others become ridiculed for their failed dreams

• All contribute to the spirit of free enterprise

Four Ps of Entrepreneurship

• Pioneer• Perspective• Practice• Performance

Entrepreneurship

• Entreprendre...17th century French...the individual who undertook the risk of a new enterprise... “undertakers”.

• They were “contractors” who bore the risks of profit or loss

• Examples: soldiers of fortune, adventurers, builders, merchants and funeral directors

Entrepreneurs………..

• 14th century...Tax contractors...bore the risks of collecting taxes. If they collected more than the fee...they kept the rest as profit.

• Called the “change agents” of progressive economies

Entrepreneurs………..

• “Essai sur la nature du commerce en general”...1755 ...describes an entrepreneur as a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using resources while consequently assuming the risk of enterprise

Entrepreneurs………..

• Adam Smith...The Wealth of Nations: spoke of the “enterpriser” as an individual who undertook the formation of an organization for commercial purposes

• A. Smith...mentioned “role of industrialist...,person with unusual foresight who could recognize potential demand for goods and services”

Entrepreneurs………..

• “A thesis on Political Economy”...describes an entrepreneur as one who possessed certain arts and skills of creating new economic enterprises, yet a person who had exceptional insight into society’s needs and was able to fulfill them.

• Influences society and is influenced by it.

Entrepreneurs………..

• John Stuart Mill...describes an entrepreneur as a business founder

• Recognized entrepreneurship as central to economic theory

• Carl Menger...Principles of Economics: “Economic change does not arise from circumstances but from an individual’s awareness and understanding of those circumstances

Entrepreneurs………..

• In 19th century entrepreneurs were:– risk takers– decision makers– aspired to wealth– gathered and managed resources to

create new enterprises

Entrepreneurs………..

• Are not equal to inventors...inventor might only create a new product, whereas an entrepreneur will gather resources, organize talent, and provide leadership to make it a commercial success

• Peter Drucker...”Resources, to produce results, must be allocated to opportunities rather than to problems...

Another View of Entrepreneurship

• Peter F. Drucker (1964)...’maximization of opportunities’ is a

meaningful, indeed a precise, definition of the entrepreneurial job. It implies that effectiveness rather than efficiency is essential in business. The pertinent question is not how to do things right but how to find the right things to do, and to concentrate resources and efforts on them.

Another View of Entrepreneurship

• Joseph Schumpeter...20th century talks about “creative destruction” whereby established ways of doing things are destroyed by the creation of new and better ways of getting things done

• Described it as a process and entrepreneurs as innovators who use process to shatter the status quo through new methods...

Entrepreneurs...Traits

• Self-confident and optimistic• Able to take calculated risk• Respond positively to changes• Flexible and able to adapt• Knowledgeable of markets• Able to get along well with others• Independent minded

Entrepreneurs...Traits II

• Energetic and diligent• Creative, need to achieve• Dynamic Leader• Responsive to suggestions• Take initiatives• Resourceful and persevering• Perceptive with foresight

Common Myths About Entrepreneurs

• Entrepreneurs are born and not made• Entrepreneurs are risk takers• You need a lot of money to be

successful• All you need is a great idea• Entrepreneurs work long hard hours

Entrepreneurship

“The pursuit of opportunity beyond the resources you currently control”

Harvard Business School

A Process Definition of Entrepreneurship

• Pursuit of Opportunity• Rapid Commitment and Change• Multistage Decision Making• Using Other People’s Resources• Managing Networks & Relationships• Compensating for Value Created

Entrepreneurship:A Process, Not a Person

• In a social context• Is an “action” definition• Focus on doing rather than on facts• Creating the right incentives• Managers vs. Entrepreneurs

While it is a Process, the Person is still key

• Skills

• Knowledge

• Contacts

• Resources

Entrepreneurial Characteristics

• Creativity and Innovativeness• Propensity of Risk-taking• Taking Initiative• High Need for Achievement• Oriented to Problem Solving• Persistence• Faith and commitment to Planning• Independence• Self-confidence

Need and importance of Entrepreneurship

• Increasing National Production • Offering Challenging Career Option: • Reducing the Domination of Established Institutions

and the Concentration of Economic power• Reinvesting the profit in the area of profit generation • Balanced Area Development• Commercializing New Invention & Products• Harness Youth Vigor: • Making markets more competitive• Making Society 'Enterprising'

Your own new enterprise Your own new enterprise serves your interest in serves your interest in significant wayssignificant ways

Salary. Security Assets builder Perks. Independence Fulfillment

Factors Effecting Entrepreneur

• Internal Factors• External Factors

Functions of Entrepreneur

Entrepreneurial Motivation & Barriers

Motivating Factors

a) Internal Factors: • Desire to do something new• Educational background• Occupational Background or Experience

b) External Factors:• Govt. assistance & support• Availability of labor & raw materials• Encouragement from big business houses• Promising demand for the product

Classification of Entrepreneurship

Contextual Basis:

• Entrepreneurship (standalone start-up)• Corporate entrepreneur (new ventures within

large established organizations)• Co-preneurship (a working professional starts a

business & runs it alongside his/her job)• Technology Entrepreneurship (starts-ups with

product & process which are technology-based)• Service entrepreneurship (start-ups in the

services domain of activity)• E-entrepreneurship (start-ups wherein business

is on the internet platform)

Classification of Entrepreneurship

Novelty Basis:

• Innovating Entrepreneurship• Imitative Entrepreneurship

Intention Basis:

• Build to sell Entrepreneurship (Serial Entrepreneurship)

• Build to Last Entrepreneurship

Theory of Entrepreneurship

• An Economic Theory• Leibenstein’s X-efficiency Theory• Dynamic Entrepreneurship Innovation Theory• Harvard School Theory• Theory of High Achievement• Theory of Change• Theory of Profit• Theory of Adjustment of Price• Theory of Market• Theory of Social Change• Theory of Entrepreneurial Supply• Theory of Personal Resourcefulness• Theory of Cultural Values

Concept of Entrepreneurship

• It refers to the process of action an entrepreneur undertakes to establish his/her enterprise. It is a creative & innovative response to the environment.

• It is thus a cycle of actions to further the interests of the entrepreneur.

• One of the quality of the entrepreneurship is the ability to discover an investment opportunity & to organize an enterprise, thereby contributing to real economic growth.

Entrepreneur

Person Process Object

Entrepreneurship

Enterprise

Development of Entrepreneurship

• The entrepreneurial development is a key to achieve overall economic development through higher level of industrial activity.

• It is a process in which persons are injected with motivational drives of achievement & insight of tackle uncertain & risky situations especially in business undertakings.

• The process of development focuses on training, education, reorientation & creation of conducive & healthy environment for the growth of enterprises.

Approaches to Entrepreneurship Development

• Develop & arrange the course content by analyzing needs & stating outcomes.

• Choose the appropriate training methods.• Consider the subjects area, the nature of learning,

the trainee populations, the trainers themselves & time & material factors.

• Achieve training objectives.

Gateways into the Curriculum

What is EDP????• Entrepreneurship Development Program

(EDP) is designed to help a person in strengthening & fulfilling his entrepreneurial motive & in acquiring skills & capabilities necessary for playing his / her role effectively & efficiently.

• There are three important variable: Location, Target Group & Enterprise.

Objectives of EDP• Develop & strengthen their entrepreneurial quality

/ motivation.• Analyze environment related to small industry &

small business.• Helps in selecting Project/Product• Formulate Projects• Understand the process & procedure of setting

up of small enterprises• Know & influence the source of help/support

needed for launching the enterprise.• Acquire the basic management skills• Know the pros & cons of being an entrepreneur &• Acquaint & appreciate the needed social

responsibility.

Issues of EDP• Structure & Composition of EDPs• Areas of Operation• Fixing Priorities• Lack of Specialist’s Support

Some operational problems of EDP are:• Inherent inability• Diverse opinions• No proper strategy• Low institutional commitment• No local support• Non-availability of inputs• Poor follow-up• No adequate research facilities

Entrepreneurial Process