who is entrepreneur
Post on 17-Oct-2014
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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