Entrepreneurship

SUHAIB MOHAMMED SECAB.I.E.T, Vijaypur

Topic 5

Introduction to Entrepreneurship

What is Entrepreneurship? It is the process of creating something new and assuming accompanying risks and rewards.

Robert D.Hisrich

Who is an Entrepreneur ? He is one who always searches for change, responds to it and exploits it as an opportunity Peter Drucker

Management and Entrepreneurship

Entrepreneurship is a thinking which creates new

things but

Management is a thinking which Organizes, Directs, Controls in order to implement the new thinking. Thus

Entrepreneur can be a Manager but Manager cannot be an Entrepreneur

Introduction to Entrepreneurship

ENTREPRENEUR

MANAGER

1) He is the owner of the company.

1) He is an employer of the company.

2) Initiates a business to earn profit.

b) Provides services for the growth of initiated business and earns a fixed salary.

3) He bears all risks and uncertainties in running the organization.

c) He doesn’t bear any such risk.

4) He tries to innovate to meet the challenging demands of the market.

d) He simply works and executes the plans prepared by entrepreneur.

5) No Formal Qualification is needed.

e) Formal Qualification is needed.

Functions of an Entrepreneur

1) Entrepreneur as an innovator

a) Introduces new products.

b) Introduces new methods.

2) Entrepreneur as a risk taker

a) Bears all uncertainties and risk.

b) Tries to reduce uncertainties and risk.

(Uncertain :Indefinite)

3) Entrepreneur as an organizer

a) Raises sufficient capital to start business.

b) Manages and Execute all plans.

Types of Entrepreneurs

Economic Developmen

t

Business Type

Technology Level

Area Wise Gender and Age

1) Innovative Entrepreneur

2) Imitative Entrepreneur

3) Fabian Entrepreneur

4) Drone Entrepreneur

1) Corporate Entrepreneur

2) Trading Entrepreneur

3) Service Entrepreneur

4) Retail Entrepreneur

5) Agriculture Entrepreneur

1) High-Tech Entrepreneur

2) Low-Tech Entrepreneur

3) Technical Entrepreneur

4) Non-

Technical Entrepreneur

1) Urban Entrepreneur

2) Rural Entrepreneur

1) Men Entrepreneur

2) Women Entrepreneur

According to few criteria's Entrepreneurs are classified as :

Types of Entrepreneurs

Important Types

Economic Development

a) Innovative Entrepreneur

( One who introduces new things)

b) Imitative Entrepreneur

(One who adopts succesful innovations)

c) Fabian Entrepreneur

( They imitate or bring changes only when it is a question of survival)

d) Drone Entrepreneur

( They refuse to imitate or bring changes even if they encounter loss)

INTRAPRENEURS - AN EMERGING CLASS

A big threat to any organization is loosing of its well trained employees and further these employees can start their own firm as a entrepreneur. They also can grow as a competitor to the organization they had quit.

To overcome this problem, an American Management Guru Gifford Pinchot-III in 1985 introduced a system to overcome this threat. Where he suggested to provide few executives a status similar to that of an entrepreneur in the society and named them as “INTRAPRENEURS” .

INTRAPRENEUR

An Intrapreneur is an employee who is given the authority and support to create a new product without having to be concerned about whether or not the product will actually become a source of revenue for the company

INTRAPRENEURS - AN EMERGING CLASS

Entrepreneur

Intrapreneur

1) An independent business man.

a) Semi Independent Business man.

2) Bears full risk in running the business.

b) He doesn’t bear any risk.

3) He raises the capital and guarantees the suppliers.

c) He neither raises any capital nor guarantees.

4) He operates from outside. d) He operates within the organization.

5) He may find difficult to withdraw him completely from his business

e) He can withdraw from business any time.

STAGES IN ENTREPRENEURSHIP PROCESS

Stage 1 : Identification & evaluation of business opportunity

Entrepreneur should be alert always to sense the opportunities and

possibilities that arise in the market. Evaluate all to grab the best

opportunity.

Stage 2 : Development of the business plan

An effective business plan keeping in mind all uncertainties and risks

should be developed.

Stage 3: Determination of resources required

An entrepreneur should have a good idea of the various resources

required with respect to quality, quantity, prizes and sources.

Stage 4: Creation and actual management of the business

An entrepreneur has to generate enough control measures to monitor

the progress and manage the business.

ROLE OF ENTREPRENEUR in ECONOMIC DEVELOPMENT

1) They provide large scale employment which reduces

unemployment problem.

2) They reduces concentration of wealth in few hands.

3) They promote industrialization in rural areas.

4) They improve the financial status of the country by exporting

goods.

5) They initiate and bring necessary changes in the structure of a

business and society.

6) They generate opportunities for investing money.

7) They encourage learning and usage of skills.

8) Successful Entrepreneurs become an icons and can inspire

new breed of entrepreneurs.

BARRIERS TO ENTREPRENEURSHIP

ENVIRONMENTAL FINANCIAL PERSONAL SOCIETAL

a) Raw Materials

b) Labor

c) Machinery

d) Infrastructure

Finance acts like a soul for any business. So flow of Finance is very important for the company to maintain its reputation in the market.

a) Lack of Self-Confidence

a) Lack of

Motivation

b) Lack of Patience

The religious and communal feeling in countries like India has adverse effect on the growing market of entrepreneurship

Issues effecting Entrepreneurship Trait are classified as follows:

ENTERPRENEURSHIP IN INDIA

Metal handicrafts existed in India ever since pre-christian era. In post-christian cast based businessmen started industries named as “kharkhanas”. Indian handicrafts such as corah from Bengal, dupattas and dhotis from Ahmedabad, shawls of Kashmir have grabbed the attention of world since ages.

In modern era during the domination of East India Company few Indian entrepreneurs like Lowjee Nushirwan and Manjee dhanjee built ship and produced gunpowder for the company In 1847, the first textile industry was started by Ranchod Lal Chotalal but he failed in his first attempt and again succeededin 1861.Also in 1854 a parsi Covaski Davar had started textile mill. Jamshedjee Tata started first steel industry in 1911 and Birla family established Jute mill in 1919.

ENTERPRENEURSHIP IN INDIA

When Mahatma Ghandhi started Swadeshi Campain where he instructed Indians to use only Indian goods.Then communities like Jain and Vaishyas joined parsis to contribute in the world of entrepreneurship.

After Independence Nehru government encouraged the entrepreneurs in India by giving them protection from Multi National Companies (MNC’s)

Then in 70’s and 80’s Dhirubhai Ambani and Karsanbhai Patel started their own firms. They made their names in top 50 entrepreneurs of Asia of that time.

Then when software industry emerged in India as a source of employment, entrepreneurs like Azeem Premji, N.R.Narayan Murthi started their own software development firms.

Now the Entrepreneurship is a part of our syllabus to motivate engineering minds.