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Unit No.1
1.1 Concept and definitions : Entrepreneur &
Entrepreneurship,
Entrepreneurship
and
Economic Development, A Typology of
Entrepreneurs.
1.2 Entrepreneurial Competencies:
The
Entrepreneurs Role, Task and Personality,
Entrepreneurial Skills, Creativity, Problem Solving,
Decision Making, Communication, leadership
quality, Mc clelland N-Ach theory, Self analysis,
Personal efficacy, culture and values, risk taking
behavior, Technology backup.
Prepared by Dr. V. R. Malkar
Who is an Entrepreneur
One who creates a new business in the
face of risk on uncertainty for the
purpose of achieving profit and
growth by identifying opportunities
and assembling the resources to
capitalize on those opportunities.
Who is an Entrepreneur?
Person conducting own business (Webster)
Person who sets up business deals in order to
make profits (Collins Cobuild)
Organizer of an economic venture, one who
owns, organizes, manages, and assumes the
risks of the business (Chandrashekhar)
Why Entrepreneurship?
Process of creating something different, with
value, by devoting necessary time and effort,
by assuming the accompanying financial,
psychological, and social risks, and receiving
the resulting rewards of monetary and
personal satisfaction (Bowen and Hisrich,
1986).
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Unit ed St at es
6.8%
Canada
5.4%
Country
Israel
3.4%
It aly
3.3%
Germany
2.0%
Denmark
France
Japan
Finland
0.0%
1.8%
1.6%
1.4%
2.0%
4.0%
6.0%
8.0%
10.0%
Percent
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Entrepreneurship Concept
The word entrepreneurship is derived from
French root which means, to undertake.
Today, it is known by various names, e.g.
adventurism, risk taking, thrill seeking,
innovating, etc.
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Entrepreneurship
Author like Joseph Schmpter (1950-60) advocates,
Entrepreneurial activity as essentially a creative
activity. It consists in doing such things which are
generally not done in the ordinary course of
business.
An entrepreneur is one who innovates. He further
states that, Entrepreneur is specially motivated and
talented class of people.
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A Few Definitions
Entrepreneur:
Person whose goal is to create or capitalize on new economic
opportunities through innovation
Entrepreneurship:
Process through which entrepreneurs create and grow enterprises
Entrepreneurial Community:
Community where significant economic and social entrepreneurial
activity exists within an effective system of public and private support
Entrepreneurship Development:
Policies and practices (public and private) that foster
entrepreneurship
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Identifying Entrepreneurs
People with
underused talent
Small
businesses
Social
entrepreneurs
Unemployed
Entrepreneurship
Youth
High-growth
businesses
Innovators
Self- employed
Prepared by Dr. V. R. Malkar
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16
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A Typology of Entrepreneurs
Type of Business determines the
Entrepreneurs :
Business Entrepreneur : Idea Generator
Trading Entrepreneur : Exchange of Goods & Svs , Mktg &
Brand Building
Industrial Entrepreneur : Manufacturer first & Innovator Next
Corporate Entrepreneur : Plans, Organise,Develops &
Manages Corporate
Agriculture Entrepreneur : Develops Agri Based Activities
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Technology Based :
Technical Entrepreneur : Highly Skilled in
product Crafts men. Focuses mainly on
Product Design
Non- Technical Entrepreneur : Focuses on
Mktg, Distribution& designing the cheaper
product.
Professional Entrepreneur : Who creates new
technology or idea & sells it to others for
money & Moves to next level of creation
Prepared by Dr. V. R. Malkar
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Motivational Based :
Pure Entrepreneur : Who creates jobs rather
seek a job
Induced Entrepreneur : Who is encouraged by
govt. bodies
Motivated Entrepreneur : Who creates jobs
rather seek a job
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Entrepreneurial Competencies
Creativity ,
Problem solving,
decision making,
Communication,
Leadership qualities
Mc Clellands N-ach theory,
Self analysis, Personal Efficacy,
Culture and values,
Risk Taking Behavior,
Technology Back-up
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Capital
Labour
Raw Materials
Market
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EDP
Designed with an aim of encouraging self employment
Imparts training and motivates potential and existing entrepreneurs
to start new business or diversify and expand the existing one
Helps employment and wealth creation among educated
unemployed youth
Well equipped to face risks and challenges as an entrepreneur
Government needs considerable human and material resource,
importance to detailed planning & implementation
Phases of EDP
Select area from existing government policy
guidelines/socio-economic reports
Techno-economic survey of the selected area; feasibility
study
EDP Cycle
Stimulatory Role
1. Registration of unit
2. Arranging finance
3. Prov iding land, shed, power, water etc.
4. Guidance for selecting and obtaining machinery
5. Supply of scarce raw materials.
6. Getting licences / import licences
7. Providing common facilities
8. Granting tax relief or other subsidy
9. Offering management consultancy
10. Help marketing product
Support Role
1. Entrepreneurial education.
2. Planned publicity for entrepreneurial opportun ities.
3. Identification of potential entrepreneurs through scientific
methods.
4. Motivational training to new entrepreneurs.
5. Help and guide in selecting products and preparing project
reports.
6. Making available techno-economic information and
product profits.
7. Evolving locally suitable new products and processes.
8. Availability of local agencies with trained personnel for
entrepreneurial counselling and promotions.
9. Organising entrepreneurial forum.
Sustaining Role
1. Help modernization
2. Help diversification/expansion / substitute production.
3. Additional financing for full capacity utilization
4. Deferring repayment/interest.
5. Diagnostic industrial extension/consultancy source.
6. Production units/ legislation/policy change
7. Product reservation / creating new avenues for
marketing
8. Quality testing and improving services
9. Need - based common facilities centre
10)Self-confidence
11)Likes to excel in work
Prepared by Dr. V. R. Malkar
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12)Decision making
13)Competitive
14)Dreamer
15)Family & Friends second to business
16)Time is important
17)Imaginative
18)Realistic
19)Courageous
20)Self Starter
21)Innovative
22)Good communication
Prepared by Dr. V. R. Malkar
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Status: An entrepreneur is the owner of the enterprise. A manager is the servant in the
enterprise owned by the entrepreneur.
Risk-bearing: An entrepreneur being the owner of the enterprise assumes all risks and
uncertainty involved in running the enterprise. A manager as a servant does not bear any risk
involved in the enterprise.
Rewards: The rewards an entrepreneur gets for bearing risks involved in the enterprise is
profit which is highly uncertain. A manager gets salary as rewards for the services rendered
by him in the enterprise. Salary of a manager is certain and fixed.
Innovation: Entrepreneur himself thinks over what and how to produce goods to
meet the changing demands of the customers. Hence, he acts as an innovator also
called change agent. But, what a manager does is simply to execute the plans
prepared by the entrepreneur. Thus, a manager simply translates the entrepreneurs
ideas into practice.
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freedom
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Feeding the
Entrepreneurial Fire
Entrepreneurs as heroes
Entrepreneurial education
Demographic and economic factors
Shift to a service economy
Technological advancements
Independent lifestyles
E-Commerce and the World Wide
Web
International opportunities
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Challenges of
Being an Entrepreneur
o Must be comfortable with change and
uncertainty
o Must make a bewildering number of
decisions
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II.
III.
IV.
V.
DecidingDevelopingMovingManagingRecognizing
Exploring the
Entrepreneurial
Context
Identifying
Opportunities/Possible
Competitive Advantage
Managing Processes
Managing People
Managing Growth
Special Issues
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18 STEPS
FOR
SUCCESS
AS
ENTREPRENEUR
18. PROFIT
17. REPAYMENT
16. SALES
15. PERMANENT REGN.
14. PRODUCTION
13. MANPOWER NEEDS
12. GET STATUTORY LICENCE
11. RAW MATERIAL
10. ELECTRICITY CONNECTION
9. PURCHASE OF MACHINERY
8. LOCAL BODY
7. FIXING WORK PLACE
6. GETTING FINANCE
5. PROJECT REPORT
4. LOCATION OF THE UNIT
3. REGISTRATION OF THE UNIT
2. PRODUCT SELECTION
Prepared by Dr. V. R. Malkar
DECISION TO BE AN ENTREPRENEUR
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Benefit of Entrepreneurship
Opportunity to make a difference
Opportunity to reach your full
potential
Benefit of
Entrepreneurship
Opportunity to contribute to
society and be recognized for
your efforts
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Topics
Assignment Questions
Q.1 Entrepreneur and Entrepreneurship are
catalyst in the process of economic
development of the country, Explain with
example
Q.2 Describe with examples the salient
characteristics of successful Entrepreneur.
Q.3 What factors do influence the emergence
and development of entrepreneurship.
Thank you
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