Definition & meaning of Entrepreneurship

Derived from the Sanskrit term Antaraprerana One who starts an enterprise

A visualizer and an actualizer

derived from the French word which means to undertake risk of a new business or activity men who organized and led military expeditions were referred to as Entrepreneurs in the 16th century

 One who buys different means of production

in order to combine them into products & services & sell them at a profit One who translates a profitable idea into a productive activity. In early 16th century a entrepreneur was denoted as a dealer buying at a certain price & selling at a profit In the 18th century the term entrepreneur came into usage for people who demonstrated innovative skills or sprit

 They are persons who always search for

change, respond to it and exploit it as an opportunity Thus an entrepreneur is One who brings an overall change through innovation for max social good & benefit Has an ability & willingness to take risk, is a visionary & displays org & leadership qualities Has firm belief in accelerating personal, economical & social development

Entrepreneurship
It refers to a process or an activity an entrepreneur

undertakes to establish his enterprise

It is a creative response to the environment It is defined as a purposeful activity of an

individual or a group of individuals undertaken to initiate, maintain or aggrandize profit by production or dist of goods & services

 Person
Organizer Innovator

Initiator
Creator Visualizer Risk taker

process organization innovation initiative creation vision risk-taking

Concept of entrepreneurs, entrepreneurship & enterprise

Entrepreneur
Entrepreneurship

Enterprise

person

Process of Action

Object

Entrepreneurship process
1
Implementation of innovative activity

Strategy formulation & adoption

Monitoring the activities by adopting solutions for the problems

Classification of entrepreneurs

According to the type of business Business entrepreneurs Trading Industrial Corporate Agriculture According to motivation Pure Induced motivated

 According to stage of development

First generation
Modern Others Innovative Imitative Fabian Drone Women/men

Urban/rural

Charm of being an entrepreneur

i) Being your own boss & boss to others ii) Chance to put your ideas into practice iii) Make money for yourself rather than others iv) Satisfaction of seeing your ideas coming to fruition v) Better utilization of skill ,knowledge & resources vi) Building your retirement kitty & work till you wish and can vii) Rewards that can be unlimited

intrapreneurs
Referred to as dreamers who do

Corporate entrepreneurs who catch hold of new ideas for product or service, process, system . They work within the framework of the org
Perceived as valuable assets due to their

dedicated efforts & innovative skills Management have to be receptive of their ideas, encourage , reward and motivate their resourcefulness in order to avoid stagnation , decline & ensure success ,growth and survival

Features of intrapreneurship
An intrapreneur thinks like an entrepreneur

looking out for opportunities, which profit the organization.

Intrapreneurship is a novel way of making

organizations more profitable where imaginative employees entertain entrepreneurial thoughts.

It is in the interest of an organization to

encourage intrapreneurs. Intrapreneurship is a significant method for companies to reinvent themselves and improve performance.

Developing intrapreneurs
Intrapreneurship is just not to increase

innovation & productivity but a way of organizing vast businesses on sound footing & contributing to the well being of the society.
Most successful Intrapreneurs are not primarily motivated by the prospect of making more money or even great wealth.
They are driven by the work ,the product or service innovation they have created & wish to bring it to fruition. In order to create Intrapreneur environment Change in the reward system is necessary.

 Two kinds of organization changes relating to reward

systems can be brought about: Firstly introducing a dual career ladder introducing a path to the top, which is not constrained by traditional management succession practices
Secondly Introduction of profit sharing mechanism Issuing bonus, & patent rights for compensating

their efforts or innovations

One time cash payment, or stock options, part

ownership of patents, or payment of royalties while the company is using the patents

Structural changes to promote intrapreneurship

Open communication

identification and recognisation

Resource allocation Assuring continuity An atmosphere where creativity is encouraged Allowing employees to develop internal start ups Taking serious note of suggestions Performance appraisal weightage to innovation

and creativity

Intrapreneur examples
A lot of companies are known for their efforts towards nurturing their in-house talents to promote innovation

At 3M employees could spend their 15% time working on the projects they like for the betterment of the company. On the initial success of the project,

3M even funds it for further development. Forbes is having a sun-set clause. Kinetic Zing charger suggestion from an employee Sun-Microsystems Java programme

 The Post-it, now as indispensable to the typical office worker as a chair and desk, might never have made it to market without 3Ms longstanding bootlegging policy. Thats how 3M scientist Spencer Silver invented a light, repositionable adhesive in 1968, although he was unsure how best to use it. He gave seminar after seminar, explaining

3Ms Post its

the advantages of his adhesive to co-workers, but he was unable to drum up much enthusiasm for his not-so-sticky stickum. Five years later, Art Frey, one of Silvers colleagues, noticed his bookmarks were constantly falling out of his hymnals during choir practice. He remembered Silvers seminars, and in that Eureka moment, the Post-it was born. The sticky notes went national in 1980 and quickly became an office-supply and household standard.

Sun-microsystems JAVA

The circuitous route Java took to market began when a 25-

year-old, up-and-coming programmer, told Sun CEO Scott McNealy he was leaving the company. McNealy asked to him to give an assessment of what Sun was doing wrong, and the programmer responded that Sun, then known for its business workstations, was missing out on the fastgrowing PC consumer market.. He stayed, and Sun set up a group dedicated to breaking into the consumer market. He created an elegant object-oriented programming language called Oak (renamed Java), which Sun initially hoped would be used in its cable set-top boxes. When that deal fell through, it looked like the language would be abandoned. Till they realized realized that with the explosion of the Web, a programming language like Oak could be used across different platforms computers, cell phones, PDAs, and more. They also understood that the key to making Java a cross-platform linchpin was to give the language and development kit away. By the end of 1996, Java had nearly 100 licensees and had attracted 6,000 developers.

 Example of intrapreneurship: A classic case of

intrapreneurs is that of the founders of Adobe, John Warnock and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they were frustrated because their new product ideas were not encouraged. They quit Xerox in the early 1980s to begin their own business. Currently, Adobe has an annual turnover of over $3 billion.

Women entrepreneurs
Emergence of entrepreneurs largely depends on economical, social, cultural, psychological aspects Phenomenal increase in the growth of self employed women. Concentrated in low paid, low skilled, low productive jobs or in un-organized sectors. Definition by Government of India An enterprise owned & controlled by a women having a minimum financial interest of 51% of the capital & giving at least 51% of the employment generated to women.

 A women entrepreneur can be defined as a confident, innovative & creative women capable of achieving self eco independence, individually

or in collaboration, generates employment opportunities for others through initiating, establishing & running the enterprise by keeping pace with her personal, family & social life Importance of women entrepreneurs Participation of women in economic activities Generating & providing of employment Utilization of human resources Uplifitment of economic & social status of the womenan indication of economic development

Suggestion for development

Treat women as specific target groups

Create an awareness for the need for women entrepreneurs for the overall development
Spread of education and training

Encouraging to take up traditional occupation

Involvement & participation in decision

making Provide assistance through micro finance, guidance in use of technology Support of family & society

Problems faced by women entrepreneurs

Family responsibilities Social attitude Low mobility Lack of education & training Low financial support

Low need for achievement

Insufficient marketing , technological skills &

expertise Are largely security oriented & risk averse

Importance of entrepreneurs
Key to economic growth Organizing & mobilizing the factors of

production
Generating employment Creation of wealth

Initiating innovations & invention and capitalize on new opportunities

Economic development & entrepreneurs

Economic development is a dynamic process characterized by the pattern of demand shift, new product requirement & adopting to change.

Thus a developing country requires entrepreneurs to perceive opportunities, explore them & take risk. Developing countries have to be brought out of the vicious circle of low income, poverty, low infrastructure & development. Entrepreneurs are the once who can break this vicious circle & lead towards growth, progress & development.

Role & Importance of an entrepreneur

1)Providing leadership in industrial development it is a combination of two skills , managerial & innovative. He is a person with a vision, drive and initiative and who has the ability to organize, mobilize and manage effectively the scare resources. 2) Responsibility of introducing innovation and change lies with the entrepreneur he looks for change, responds to it and exploits it 3) Generating and creating employment opportunitiesthus leading to increase the standard of living & well being of the society

4) Instrumental in increasing production & productivityby allocating available resources and co-ordinating , employing factors of production & eliminating wastes. 5) Promotes balanced regional growth & development of SSI, helps in reducing concentration of economic power, increases export trade.

Significance of entrepreneurs for the economy

Majority of new jobs are created by

entrepreneurs and small businesses Small high growth companies account for 70% of economic growth over last decade Entrepreneurship drives economic competitiveness at the local state and global levels Over 1/3 of difference in national economic growth may be due to difference in entrepreneurial activity Entrepreneurship has a unique position in the New Economy Entrepreneurship accounts for at least 2/3 of all technological innovation

Entrepreneurship Education is Important - Personal

* 7 of 10 high school students want to start their own business More opportunity to exercise creative freedoms
Higher self-esteem
Greater sense of control over your life and future. Many experienced business people, political leaders, economists, and educators believe that fostering a

robust entrepreneurial culture will maximize individual and collective economic and social success on a local, national, and global scale.

Entrepreneurship Education is Important Global

Many experienced business people, political

leaders, economists, and educators believe that fostering a robust entrepreneurial culture will maximize individual and collective economic and social success on a local, national, and global scale.

Your Creativity Style

An inborn Orientation, its not a choice;

you cannot change it. Part of who you happen to be. Observable very early in life. Stable over time. Independent of age, education, birth order, gender, culture.

Creativity Style Continuum

96 Perfects the system (incremental) Changes the system (radical)

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My first impulse on taking any apparatus into my hand, is to seek a way of improving it.

I have never worked on anything

that didnt already have a working model.

-Thomas Edison

With 1093 patents to his credit, HOW was Thomas Edison creative?
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Imagination is more Important than knowledge. If we knew what we were doing it wouldnt be called research would it?
-Albert Einstein

HOW was Albert Einstein Creative?

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Differences in Style
96
Edison Einstein

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Characteristics of Entrepreneurs
Key Personal Attributes

Strong Managerial Competencies Good Technical Skills

Successful Entrepreneurs

 Key attributes
Innovation & creativity

Risk taking
Dynamism & drive Perseverance Self-confidence Need for achievement

 Other skills & traits

Leadership qualities
Interpersonal skills Focus on creating value Organizational & managerial skills Ability to Marshall resources

Technical knowledge
Self motivated & committed Clarity of objective & vision

Result oriented

 Self-Confidence
Because of the high risks involved in running an

entrepreneurial organization, having an upbeat and self-confident attitude is essential A successful track record leads to improved self-confidence and self-esteem Self-confidence enables that person to be optimistic in representing the firm to employees and customers alike

 Drive & Dynamism

Entrepreneurs often seek independence from others Entrepreneurs have internal drive, are confident in

their own abilities, and possess a great deal of selfrespect

Need for Achievement

A persons desire either for excellence or to succeed in

competitive situations High achievers take responsibility for attaining their goals, set moderately difficult goals, and want immediate feedback on their performance Success is measured in terms of what those efforts have accomplished