UNIT 5 Entrepreneurship

 Entrepreneur
 Evolution of the concept
 Functions of an Entrepreneur
 Types of Entrepreneur
 Intrapreneur-an Emerging class
 Concept of Entrepreneurship
 Evolution of Entrepreneurship
 Development of Entrepreneurship
 Stages in entrepreneurial process.
 Role of Entrepreneurs in Economic Development.
 Entrepreneurship in India
 Entrepreneurship-its Barriers
Mr J V Gorabal Assoc Prof SCEM,
MLR
The Word
Entrepreneur
Mr J V Gorabal Assoc Prof SCEM,
MLR
 It is derived
from the
French verb
enterprendre
means to
undertake
Mr J V Gorabal Assoc Prof SCEM,
MLR
The term was used for
architects and
contractors of public
work

Mr J V Gorabal Assoc Prof SCEM,

MLR
Who starts his own
new and small
business Mr J V Gorabal Assoc Prof SCEM,
MLR
 Entrepreneurship is
more than simply
starting a business

Mr J V Gorabal Assoc Prof SCEM,

MLR
One who
organizes,manages
and assumes the
risk of business or
enterprise
Mr J V Gorabal Assoc Prof SCEM,
MLR
Willing to take
risks in order to
make a profit
Mr J V Gorabal Assoc Prof SCEM,
MLR
The capacity and
willingness to undertake
conception, organization,
and management of a
productive venture with all
attendant risks, while
seeking profit as a reward.
Mr J V Gorabal Assoc Prof SCEM,
MLR
An entrepreneur is an
owner or manager of a
business enterprise
who makes money
through risk and
initiative

Mr J V Gorabal Assoc Prof SCEM,

MLR
An Entrepreneur
is one who
always searches
for change,
responds to it
and exploits it as
an opportunity
-Peter Drucker
Mr J V Gorabal Assoc Prof SCEM,
MLR
 Entrepreneur in
any given
economy is an
individual who
introduces
something new in
the economy
-Joseph Schumpter

Mr J V Gorabal Assoc Prof SCEM,

MLR
 An Entrepreneur is
one who raises
money, assembles
inputs, chooses
managers and sets
the organization
going with his ability
to identify them
- Vasant Desai

Mr J V Gorabal Assoc Prof SCEM,

MLR
Entrepreneur
is a social
Parasite
-Karl Marx

Mr J V Gorabal Assoc Prof SCEM,

MLR
 Entrepreneurship
is the process of
creating something
new and assuming
the accompanying
risks and rewards
- Robert Hisrich

Mr J V Gorabal Assoc Prof SCEM,

MLR
 Entrepreneurship is the
purposeful activity of an
individual or a group of associated
individuals undertaken to
intiate,maintain and realize profit
by producing or disturbing
economic goods and services
- A H Cole
Mr J V Gorabal Assoc Prof SCEM,
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Entrepreneur Entrepreneurship Enterprise

Process of
Person Action Object

Mr J V Gorabal Assoc Prof SCEM,

MLR
 Decision Accepting Skillful Making
Innovation Risk Taking Organization
Making challenges Management Success

Mr J V Gorabal Assoc Prof SCEM,

MLR
What an Entrepreneur should
have?
Faith Action

Desire

Mr J V Gorabal Assoc Prof SCEM,

MLR
Taking Initiative

Mr J V Gorabal Assoc Prof SCEM,

MLR
Mr J V Gorabal Assoc Prof SCEM,
MLR
Mr J V Gorabal Assoc Prof SCEM,
MLR
Middle age: Actor or person in charge of large scale

16th Century People who organized and led military expeditions in

France
17th Century Person bearing the risk of either profit or loss in a fixed
price contract with the government
18th century Risk taking and different from the person who supplies
capital
19th Century Distinct from financier as well as manager
20th Century An Entrepreneur came to known as Innovator and risk
taker.
Mr J V Gorabal Assoc Prof SCEM,
MLR
Difference between
Entrepreneur and
Manager

Mr J V Gorabal Assoc Prof SCEM,

MLR
Point Entrepreneur Manager
Motive Start business to make profit To serve organization to
to achieve personal earn salary and also to
satisfaction achieve growth.
Status Owner Employer
Risk Taking He assumes all risks and He does not bear any risk in
uncertainty in running the running the organization
enterprise
Rewards Driven by profit and self Driven by salary and
satisfaction growth
Innovation He tries to innovate to meet He prepares strategy to
the changing needs of the meet the goals
customers
Qualification No formal qualification Formal qualification is
Mr J V Gorabal Assoc Prof SCEM,
required MLR
 New
New Source,
Monopoly
Product Raw
Material
 Possible Risks
 Sustain Uncertainty about selling prices
 Properuse of his/her experience, skill and
good decision making strategies
 Raising of capital for the smooth running
of the organization
 Plan, delegate and execute all facets of
business
 He must manage and distribute his profit
wisely
Qualities of an
Entrepreneur

Mr J V Gorabal Assoc Prof SCEM,

MLR
E-Effective Communicator
N-Negotiating Skills
T-Total Commitment
R-Risk Taking ability
E-Emotional Stability
P-Passion/Problem solving
R-Result Oriented
E-Energetic
N-Netwoking ability
E-Excellence in “ Economics”
U-Understanding the situation/market
R-Realistics approach
 When 27-year old Sarathbabu
graduated from the Indian
Institute of Management,
Ahmedabad, he created quite a
stir by refusing a job that
offered him a huge salary. He
preferred to start his own
enterprise -- Foodking
Catering Service -- in
Ahmedabad.
Mr J V Gorabal Assoc Prof SCEM,
MLR
 Decorative papers
 Paper Bags
 Paper cups/plates
 Paper envelopes
 Drinking straws
 Paper napkins including
facial tissue napkins
 Gummed tape
 Teleprinter rolls
 Stencil paper
 Toilet paper rolls and
sheets
 Letter pads
Types of Entrepreneurs
 Business Entrepreneur: Who does his own product by
his idea convert it in to reality, small or big business
 Trading Entrepreneur: Who sells other company’s
product [ By his selling tricks and marketing ideas]
 Industrial Entrepreneur: He is a manufacturer who
identifies potential needs of the customer and makes his
company a profitable venture
 Corporate Entrepreneur: Who setsup his company as
per the company act, trust registerded under corporate
undertaking
 Agricultural Entrepreneur: Who undertakes agricultural
activities may be like fertilizers, seeds, innovative
engineering equipments
 Technical Entrepreneur: One who develops
improved quality of goods by his craftsmanship,
more bothered about production.
 Non-Technical Entrepreneur: One not bothered
about product, he concentrates only about
market, to improve his business.
 Professional Entrepreneur: Interested in
establishishing a business and sells a running
business , and starts new one
 Pure Entrepreneur: He is an individual who is motivated
by psychological and economic rewards. He undertakes an
entrepreneurial activity for the personal satisfaction in work
 Induced Entrepreneur: Induced entrepreneur is one who
is induced to take up entrepreneurial task due to policy
maters of the government
 Motivated Entrepreneur: Motivated by the desire for self
fulfillment to produce a new product
 Spontaneous Entrepreneur: Start their business by
natural talents, intiative, boldness and confidence are the
qualities

Mr J V Gorabal Assoc Prof SCEM,
MLR
 Urban Entrepreneur
 Rural Entrepreneur

Mr J V Gorabal Assoc Prof SCEM,

MLR
 MenEntrepreneur
 Women Entrepreneur

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MLR
 Innovative Entrepreneur
 Initiative Entrepreneur
 Fabian Entrepreneur
- Calculative steps
- Cautious in Taking decisions
Drone Entrepreneur
- Suffers with loss(looser)
-Not ready to make changes

Mr J V Gorabal Assoc Prof SCEM,

MLR
 In 1992, The American Heritage Dictionary
acknowledged the popular use of a new word,
intrapreneur, to mean "A person within a large
corporation who takes direct responsibility for turning an
idea into a profitable finished product through assertive
risk-taking and innovation".
 Intrapreneurship is now known as the practice of a
corporate management style that integrates risk-taking
and innovation approaches, as well as the reward and
motivational techniques, that are more traditionally
thought of as being the province of entrepreneurship.

Mr J V Gorabal Assoc Prof SCEM,

MLR
 "Intrapreneurship refers to employee initiatives
in organizations to undertake something new,
without being asked to do so.

Mr J V Gorabal Assoc Prof SCEM,

MLR
 Independent Business  Semi Independent
Man business man
 He bears complete risk  He does not bear any
 Himself Raises the risk
necessary capital  Neither raises the
capital nor assures the
 Operates outside the
return of the capital
organization
 Operates within the
 He may feel difficult to
organization
withdraw the business
 Relatively easy to
withdraw the business

Mr J V Gorabal Assoc Prof SCEM,

MLR
 Identification and evaluation of the
business
 Development of the business plan
 Determination of the resources required
 Creation and actual management of the
enterprise
Mr J V Gorabal Assoc Prof SCEM,
MLR
 Opportunities
 Real and perceived opportunity
 Some questions:
-What market needs
-Why market exist for this product
-Requirement size, local and international
-Any patents available
-

Mr J V Gorabal Assoc Prof SCEM,

MLR
 It is nothing but the description of the
future direction of the business
 Formulates the plans for marketing,
finance, production etc…

Mr J V Gorabal Assoc Prof SCEM,

MLR
 Idea about resources availability
 Quantity
 Prices

Mr J V Gorabal Assoc Prof SCEM,

MLR
 Aware of legal and practical hurdles that
he has to face in the process of creating
his business
 Identifiy the key factors for the success of
the business

Mr J V Gorabal Assoc Prof SCEM,

MLR
 They help and create business organizations by mobilizing the savings
of public[IPO]
 Large scale employment opportunity to improve the economy of the
society and families
 Promote Industrialization in rural areas to help the agricultural sector
[sugar Industries, Wine Industry]
 Distribution of wealth in terms of equity dividend,
 They reduce over-dependence on agriculture by rural people
 They encourage learning and usage of skills which might otherwise
remain unutilized.

Mr J V Gorabal Assoc Prof SCEM,

MLR
 They increase Forex reserves of the country by
exporting their goods and services.
 They are basically change agents in the society
 Successful entrepreneurs become icons and can
inspire a whole new breed of entrepreneurs- Azim
Premji.

Mr J V Gorabal Assoc Prof SCEM,

MLR
Mr J V Gorabal Assoc Prof SCEM,
MLR
 Metal handicrafts existed in society even since pre
chiristian Era
 In Post christian ara cast based business created
Kharkhanas, self handicrafts
 Indian Handicrafts like,Indian dress
material,kurta,chudidar industries


Mr J V Gorabal Assoc Prof SCEM,

MLR
 In the modern era the first traces of entrepreneurship
was seen during the domination of British East India
Company the company
 Rancholal Chotalal first to setup Textile manufacturing
company in 1847 failed in his first attempt, then succeeded
in his second attempt in 1861
 C N devar in 1854 he started a textile company and
succeeded
 J R D Tata established his first steel industry in 19121
 Birla started Jute Mill in 1919

Mr J V Gorabal Assoc Prof SCEM,

MLR
 Pre Independence ;Swadeshi Campaign called
by M K Gandhi only to use Swadeshi goods
some people came forward to become
entrepreneurs.
 Post Independence the socialist practices of the
Nehru Govt actually helped Indian entrepreneur
by giving them protections from multinatioan
companies.
 Licenses quotas ,high taxes ,low productivity
,black market, monopolies marked the first 40
years of Indian Independence,despite all these
Two people made a remarkable entry in the filed
of business 1 Dhiru Bai Ambani. 2 Karsanbhai
Patel
Mr J V Gorabal Assoc Prof SCEM,
MLR
In 1991 Entrepreneurs
like N R Narayan
Murthy,Azim Premji…

Mr J V Gorabal Assoc Prof SCEM,

MLR
Environmental Barriers
Financial Barriers
Personal Barriers
Social Barriers

Mr J V Gorabal Assoc Prof SCEM,

MLR
Raw material
Labor
Machinery
Land, building and Infrastructure

Mr J V Gorabal Assoc Prof SCEM,

MLR
Required Capital
Budgeting

Mr J V Gorabal Assoc Prof SCEM,

MLR
 Lack of self
confidence
 Lack of patience
 Inability to invest in R
and D and Innovate

Mr J V Gorabal Assoc Prof SCEM,

MLR
 Conservative
Attitude
 Superstitious
Beliefs

Mr J V Gorabal Assoc Prof SCEM,

MLR
Compiled By
J V Gorabal
Assoc Prof & HOD
Department of Computer
Applications
SCEM,Mangalore
jvgorabal@gmail.com

Mr J V Gorabal Assoc Prof SCEM,

MLR