Entrepreneurship

Development
Life is about…
 • Creating Value
• Taking calculated risks
(Minimizing Risk)
• Listening
to your heart
• Realizing your
aspirations ……….
Azim Premji

Azim Hashim Premji

is an Indian business
tycoon, investor and
philanthropist, who
is the chairman of
Wipro Limited,
informally known as
the Czar of the
Indian IT Industry.
Dhirubhai Ambani

Dhirajlal Hirachand
"Dhirubhai“ Ambani
was an Indian business
tycoon who founded
Reliance Industries in
Bombay, and his
legacy is being taken
forward by his sons
Mukesh & Anil
Ambani.
J. R. D. Tata

Jehangir Ratanji
Dadabhoy Tata was a
French-born Indian
aviator and business
tycoon. He was the
Chairman of Tata Sons.
He became India's first
licensed pilot in 1929.
Dr. Prathap C. Reddy

Dr. Prathap C. Reddy

is an Indian
entrepreneur and
cardiologist, who
founded the first
corporate chain of
hospitals in India –
the Apollo Hospitals
Group.
Saurabh Saxena

Saurabh Saxena is
the CEO and Co-
Founder of Holachef,
the food delivery
startup started in
September 2014
that brings cuisines
prepared by chefs to
your doorstep
N. R. Narayana Murthy

Nagavara Ramarao
Narayana Murthy,
commonly referred
to as Narayana
Murthy, is an Indian
IT industrialist and
the co-founder of
Infosys.
Rahul Bajaj

Rahul Bajaj is an Indian

businessman, politician
and philanthropist. He is
the chairman of Indian
conglomerate Bajaj Group
and member of
parliament. Bajaj comes
from the business house
started by a Rajasthani
Marwadi businessman
Jamnalal Bajaj.
Sunil Bharti Mittal

Sunil Bharti Mittal is an

Indian entrepreneur,
philanthropist and the
founder, chairman and
Group CEO of Bharti
Enterprises, which has
interests in telecom,
retail, financial services,
and agri-business.
Varghese Kurien

Dr. Verghese Kurien was

an Indian social
entrepreneur who is
known as the Father of
White Revolution in India
for his Operation Flood,
the world's largest
agricultural development
programme.
Kumar Mangalam Birla

Aditya Vikram Kumar

Mangalam Birla is an
Indian industrialist
and the Chairman of
the Aditya Birla
Group, one of the
largest conglomerate
corporations in India.
 Entrepreneurship Development - Content

• Entrepreneur (Ahn’tra pra nur): meaning.

• Entrepreneurship: meaning.
• Intrapreneur: meaning.
• Entrepreneur & Entrepreneurship: Difference.
• Views of Schumpeter (Shoo’m-pey-ter), Walker &
Drucker.
• Traits/Characteristics/Qualities of a true Entrepreneur.
• Stages of Entrepreneurial process.
• Entrepreneurship Culture.
• Role of Entrepreneurs in economic development.
• Entrepreneur Vs. Manager.
 Entrepreneur: Meaning
• The word entrepreneur originates from the French
word, entreprendre, which means “to undertake”. In a
business context, it means to start a business.
• The term “entrepreneur” was applied to business
initially by the French economist, Cantillon, in the 18th
century.
• Any person (of any age) who
starts/creates/acquires/takes a franchisee and
runs/operates a business is an entrepreneur.
• The New Encyclopedia Britannica considers an
entrepreneur as “an individual who bears the risk of
operating a business in the face of uncertainty about
the future conditions”.
 Entrepreneur: Meaning
• An Entrepreneur is a person who:

– Creates new product or service.

– Brings innovation or newness – product or
service.
– Organizes resources – finance, people, physical
location and information sources.
– Takes calculated risk in a business venture.
– Is prepared to face uncertainties of future.
– Creates job opportunities.
– Generates wealth for the nation.
– Contributes to the society.
– Recognizes opportunities where others see
chaos and confusion.
 Entrepreneurship: Meaning
• Entrepreneurship is the process of exploring the opportunities in the
market place and arranging resources required to exploit these
opportunities for long term gain.

• In other words, the activities or actions that an entrepreneur

undertakes is Entrepreneurship.

• It is a process of creating something new assuming the risks and

rewards.

• The concept of entrepreneurship has a wide range of meanings. On

the one extreme an entrepreneur is a person of very high aptitude
who pioneers change, possessing characteristics found in only a very
small fraction of the population.

• On the other extreme of definitions, anyone who wants to work for

himself or herself is considered to be an entrepreneur.
 ENTREPRENEURSHIP

Entrepreneur (Self)

IDEA REALITY
TIME
(that has
commercial
potential)

Resources Opportunity
 Intrapreneur: Meaning
• Intrapreneurs emerge from within the
confines of an already established enterprise.
• In big organisations, the top executives are
encouraged to catch hold of new ideas and
then convert these into products through
research and development activities within
the framework of organisation. These top
executives are called Intrapreneurs.
• An Intrapreneur can become an entrepreneur
in future.
Entrepreneur and Entrepreneurship
Entrepreneur Entrepreneurship
Person Process
Visualizer Vision
Organizer Organization
Decision maker Decision Making
Innovator Innovation
Risk bearer Risk bearing
Motivator Motivation
Creator Creation
Leader Leadership
Manager Management
Initiator Initiation
Planner Planning
Technician Technology
Communicator Communication
Administrator Administration
Entrepreneurship:
Views of
Schumpeter,
Walker & Drucker.
Some theories of Entrepreneurship
• Schumpeter's views of Entrepreneurship
Austrian economist Joseph A. Schumpeter 's definition of entrepreneurship
placed an emphasis on innovation, such as:
• new products
• new production methods
• new markets
• new forms of organization
• Wealth is created when such innovation results in new demand. From this
viewpoint, one can define the function of the entrepreneur as one of
combining various input factors in an innovative manner to generate value
to the customer with the hope that this value will exceed the cost of the
input factors, thus generating superior returns that result in the creation
of wealth.
• “Entrepreneurship is destroying the old order and creating new ones.” He
talks about “Creative Destruction” whereby established ways of doing
things are destroyed by the creation of new and better ways of getting
things done.
Some theories of Entrepreneurship
• Francis A. Walker's views on Entrepreneurship
A true entrepreneur is one who is endowed with more than average
capacities in the task of organizing and coordinating the various
other factors of production. He is a pioneer, a captain of the
industry. The supply of such entrepreneurs is however quite limited.
An entrepreneur while starting an industrial venture performs one or
more of the following:
• Perceives opportunities for profitable investments.
• Explores the prospects of starting a manufacturing enterprise.
• Supplies technical know-how.
• Arranges initial capital & promises to make up the shortfalls in
capital.
• Offers personal guarantees to financial institutions.
• Obtains the necessary industrial licenses.
Some theories of Entrepreneurship
• Peter Drucker's views on Entrepreneurship
Entrepreneurship is not:
• Magic
• Mysterious
But it is a discipline and it can be learned.

According to Drucker, entrepreneurship deals with risk-taking (uncertainties of the future).

Uncertainties have been classified by Drucker as follows.
1. Risks that can be statistically measured.
2. Uncertainties which can’t be easily measured in statistical terms.
3. True uncertainty or Knightian uncertainty, which can’t be estimated or statistically
predicted.
Drucker has aptly observed that “Innovation is the specific tool of entrepreneurs”.
Entrepreneurship is capable of being presented as a discipline, capable of being learned
and practiced.
According to Drucker, three conditions have to be fulfilled for a systematic innovation to be
successful. They are
1. Innovation requires knowledge and ingenuity. It makes great demands on diligence,
persistence and commitment.
2. Innovators need to build on their own strengths in order to succeed.
3. It is necessary for innovation to be close to the market, focused on the market and indeed
market-driven.
Common myths about Entrepreneurs
• Entrepreneurs are born not made.
• Entrepreneurs are favoured by luck.
• Entrepreneurs are risk takers.
• Entrepreneurs need a lot of money to
be successful.
• Entrepreneurs are profit hungry and
exploit labour.
• Entrepreneurs work long hard hours.
• Entrepreneurship is the monopoly of
certain communities.
Questions that an Entrepreneur keep in mind

• What are my motivations for owning a business?

• What will be the product or service ?

• Should I start or buy or take franchisee of a business?

• What and where is the market?

• How much will all this cost me?

• Should my company be domestic or global?

Stages of Entrepreneurial Process
1. Generation of Idea.
2. Conducting Opportunity Analysis.
3. Developing the Business plan and setting up
the company.
4. Acquiring financial partners and sources of
funds.
5. Determining resources required and
implementing the plan.
6. Scaling and harvesting the venture.
 Entrepreneurial Culture
• Always seeking something new
• Restless, constantly on the move
• Strong preference for freedom of choice for the
individual
• Rebellious non-conformist youth is the accepted norm
• Ability to think big
• Try to do the impossible
• They prefer the new or at least the improved
• They worship innovation
• They are tolerant of those who make mistakes
• Things need to get done quickly rather than always get
done perfectly
 Entrepreneurial Culture
• Treat people with respect.
• Develop a sense of trust.
• Help employees to stay healthy.
• Open doors to communication.
• Build camaraderie.

Maintaining Entrepreneurial Culture:

• Let the team build itself.
• Participate without controlling.
• Do not forget the little things.
Traits/Characteristics/Qualities/Personal
Competencies of a true Entrepreneur
Being an entrepreneur requires specific
characteristics and skills that are often
achieved through education, hard work, and
planning.

Risk Taker: They are always ready for calculated

risk and emphasize on how to minimize risk.
Perceptive: Views problems as opportunities and
challenges.
Curious: Information seeker. Takes the time and
initiative to pursue the unknown.
Imaginative
Entrepreneurs are creative. They imagine solutions to
problems that encourage them to create new products
and generate ideas.
Persistent
True entrepreneurs face bureaucracy, make mistakes,
receive criticism, and deal with money, family, or stress
problems. But they still stick to their dreams of seeing the
venture succeed.
Goal-setting
Entrepreneurs are motivated by the excitement of starting
a new business. Once achieved, they seek out new goals or
ventures to try.
Hardworking
Entrepreneurs need a great deal of energy to see a venture
start and succeed. Yet they are not deterred by the long
hours to achieve their goal.
Self-confident
Entrepreneurs believe in themselves. Their self-
confidence takes care of any doubts they may have.

Flexible
Entrepreneurs must be flexible in order to adapt to
changing trends, markets, technologies, rules, and
economic environments.

Independent
An entrepreneur’s desire for control and the ability to
make decisions often makes it difficult for them to work
in a controlled environment.
Some other traits of an Entrepreneur
• High need for achievement.
• Desire for independence.
• Initiative
• Sees and Acts on Opportunities
• Concern for High Quality Work and Output – Increased
Productivity.
• Commitment to Work Contract
• Efficiency & Effectiveness Oriented
• Systematic and organized planning
• Problem Solving
• Self Confidence
• Assertiveness – Negotiation with suppliers & customers
• Persuasive & Influential – Peers and stakeholders
• Inspirational - employees
• Effective Communicator – external & internal of organization.
 Some other traits of an Entrepreneur
• Dare to dream.
• Prompt decision making.
• Curiosity for learning – well informed.
• Zealous/ Zestful.
• Always strive for excellence.
• Self-motivated.
• Believes in Team work.
• Persistent & Perseverance.
• Broader social vision (hands that truly care).
• Be Humble, be grounded: never let success go to your head. Don’t be
arrogant.
• Pragmatists.
• Change agent.
• Innovator.
• Progressive.
• Leads by example.
• Always sets standard/benchmark.
• Single-mindedness: Immense focus, persistence, courage & commitment.
Ten Deadly Mistakes of Entrepreneurship
Business entrepreneurship fail because of the following
reasons:

• Management Mistakes
• Lack of Experience
• Poor financial control
• Weak marketing efforts
• Failure to develop a strategic and effective plan
• Uncontrolled Growth
• Poor location
• Improper inventory control
• Incorrect or unsuitable pricing
• The inability of to move into entrepreneurial thinking mindset
from the previous secured permanent managerial position
held.
 Why we need Entrepreneurs? Role of
Entrepreneurs in Economic Development

• 90% of the world’s jobs are created by entrepreneurs.

• Source of new products/services or innovation/newness in existing
products/services.
• They are problem-solvers and change agents.
• It’s the entrepreneurs – not the central bank – that keep the
economy moving (generation of wealth). They increase national
production.
• They reduce the domination of established institution and the
concentration of economic power/wealth.
• They have assumed super importance for accelerating economic
growth both in developed and developing countries.
• They promote capital formation & create wealth in the country.
• Entrepreneurship is the hope and dreams of millions of individuals
around the world.
• They reduce unemployment and poverty.
• Entrepreneurship is a pathway to prosper.
 Entrepreneurs Vs. Managers
Bases of Entrepreneur
Difference
1. Motive The main motive of an
entrepreneur is to start a
venture by setting up an
enterprise. He understands
the venture for his personal
gratification.
2. Status An entrepreneur is the
owner of the enterprise.
3. Risk Bearing An entrepreneur being the
owner of the enterprise
assumes all risks and
uncertainty involved in
running the enterprise.
Manager
But, the main motive of a
manager is to render his
services in an enterprise
already set up by someone
else i.e., entrepreneur.
A manager is the servant in
the enterprise owned by
the entrepreneur.
A manager as a servant
does not bear any risk
involved in the enterprise.
 Entrepreneurs Vs. Managers
Bases of Entrepreneur
Difference
4. Rewards The reward an entrepreneur gets for
bearing risks involved in the enterprise is
profit which is highly uncertain.
5. 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
a ‘change agent’
6. Qualifications An entrepreneur needs to possess
qualities and qualifications like high
achievement motive, originality in
thinking, foresight, risk -bearing ability
and so on.
Manager
A manager gets salary as
reward for the services
rendered by him in the
enterprise. Salary of a
manager is certain and fixed.
But, what a manager does is
simply to execute the plans
prepared by the
entrepreneur. Thus, a
manager simply translates
the entrepreneur’s ideas into
practice.
On the contrary, a manager
needs to possess distinct
qualifications in terms of
sound knowledge in
management theory and
practice.