An entrepreneur is defined as someone who combines factors of production like land, labor, and capital to produce goods and services with the goal of selling them for a profit. Successful entrepreneurs have qualities like a high need for achievement, optimism, a willingness to take risks and innovate, and strong management and financial skills. Promoting youth entrepreneurship is important as it can create jobs, engage marginalized youth, foster new skills, and drive community development through local businesses. However, young entrepreneurs face challenges like lack of access to financing, age discrimination, and inadequate entrepreneurship education.
3. Meaning of Entrepreneur:
Derived from French word “Entreprendre” means “to
undertake”.
Richard Cantillon: “a person who buys factors of
production at certain prices in order to combine them
into a product with a view to sell them at uncertain
prices”
Considered as a risk bearer. Ex. Farmer pays definite
price for seeds, fertilizers, pesticides, labours etc but
not certain at which price he could sell his produce.
4. TYPES OF ENTREPRENEURS :
Classification according to Clarence Danhof and Arthur .H. Cole :-
CLARENCE DANHOF
• Aggressive/Innovative
• Imitative/ Adoptive
• Fabian
• Drone
ARTHUR COLE
• Empirical
• Rational
• Cognitive
5. On the basis of
ownership
• Private
• Public
On the basis of of
scale of enterprise
• Small Scale
• Large Scale
6. Definitions by Authors:
J.B. Say: “one who combines the land of one, labour of
another & capital of yet another & thus produces a
product. By selling product pays rent, wages and
interest.”
Peter F Ducker: “One who considers the changes that
take place in market as an opportunity to do business.
Innovation is his tool.”
Joseph Schumepeter: “Individuals who introduce
something new in the market or economy.”
7. Entrepreneurship is the act of being an entrepreneur, who
starts any economic activity for being self-employed.
Entrepreneurship is the “process of the entrepreneur”. It
is an attempt to create value through recognition of
business opportunity. It is basically communicative and
management functions to mobilize financial and material
resources.
The entrepreneurial activity is governed by varying
combination of socio-economic, psychological, cultural
and other factors: Caste/religion, Family background,
Level of education, Level of perception, Occupational
background, Migratory character, Entry into
entrepreneurship, Nature of enterprise, Investment
capacity and Ambition/moderation.
Entrepreneurship
8. WHAT IS ENTREPRENURESHIP
?
“ The function of seeing investment &
production opportunities; organising an
enterprise to undertake a new production
process; raising capital; hiring labour, arranging
for raw material, finding a site & combining
these factors of production into a going concern;
introducing new techniques, new commodities,
discovering new sources of natural resources &
selecting top-managers for day-to-day
operations.”
- By B. HIGGINS
9. We can conclude that Entrepreneurship is a
combination of various qualities like organisation skills,
innovativeness, risk-bearing, managing uncertainty,
ability to bring together & use factor of production,
analysing market opportunities, observing the change
taking place in the market, methods & technologies &
studying the tastes & preferences of consumers.
10. Need for high achievement-
Entrepreneurs are driven to succeed and expand their business. They
see the bigger picture and are often very ambitious. Entrepreneurs set
massive goals for themselves and stay committed to achieving them
regardless of the obstacles that get in the way.
Highly Optimistic:
Successful entrepreneurs have a healthy opinion of themselves and
often have a strong and assertive personality. They are focused and
determined to achieve their goals and believe completely in their
ability to achieve them.
Search for New Ideas and Innovation
All entrepreneurs have a passionate desire to do things better and to
improve their products or service. They are constantly looking for
ways to improve. They're creative, innovative and resourceful.
QUALITIES OF SUCCESSFUL ENTREPRENUERS:
11. High Risk bearing ability: Businesses face risk. Entrepreneurs
minimize risk through research, planning, and skill development.
maintain good relations with other people (employee, vendors,
customers, bankers).
. Openness to Change:
If something is not working for them they simply change.
Entrepreneurs know the importance of keeping on top of their industry
and the only way to being number one is to evolve and change with the
times. They're up to date with the latest technology or service
techniques and are always ready to change if they see a new
opportunity arise.
They are also good managers, pro-active, realistic, have
comprehensive awareness & conceptual ability.
12. OTHER PERSONAL TRAITS:
Mental ability: Intelligent person.
Organising ability: Good organisation.
Hard work: Ready to work for long hours.
Discipline: highly disciplined- everything to be in order for
them.
Clear objectives: Regarding nature of business & products
to be produced.
Risk taking : They like challenges.
Adaptability: highly flexible- adapt themselves for any
conditions.
Emotional stability: have considerable amount of self-
control- business pressure can be handled.
Positive attitude: always think positively, they do not leave
hopes even under difficult conditions
13. Skills of an effective entrepreneur
Strategic skills:
An entrepreneur must have a telescopic vision for the future.
He/she must be able to see the bigger picture and know where he/she
is going with everything. Setting clear objectives and effective
strategies are essential for running a business successfully.
Management skills:
Planning
Organizing
Leading (activating)
Control
14. Human relations skills:
The entrepreneur needs to have the ability to manage people as well.
He/she has to build good relationships with all workers and needs to
know who to employ in his/her business.
Financial skills:
The success of a business is measured by the profit it makes. It is
essential that the entrepreneur has knowledge about managing
income and costs. The long-term future success of the business is
also determined by the type of investments the business makes and
how successful the entrepreneur manages those investments.
Marketing skills:
The challenge in marketing is that the entrepreneur must know how
to promote and advertise his/her business and products. It is
essential for him/her to have good knowledge about the market and
what things the customers want and prefer.
15. ENTREPRENEURIAL
MOTIVATION:
INTERNAL FACTORS
Strong desire to do something new.
To be independent in Life.
Making the maximum use of
technical/professional knowledge.
Occupational experience/background.
Passionate about particular activity.
Dissatisfaction with present job.
To attain self-satisfaction.
16. EXTERNAL FACTORS:
Utilizing Government grants & subsidiaries.
To continue ancestor business.
Financial assistance from Institutions.
Availability of resources.
Encouragement from big business houses.
Availability of sick units/ easy financial terms.
Encouragement from family members.
17. Role of entrepreneurship in
India:
India as a developing country aims at decentralization of
industrial sector to mitigate the regional imbalance in order to
contribute growth prospects in economic development, With context
to role of entrepreneurship in India, it plays following role:
It promotes capital formation by mobilizing the idle savings of
public.
It provide large scale employment, Thus it helps in reducing the
unemployment problem in the country i.e. root of all socio-
economic problem.
It helps reducing the concentration of economic power.
It stimulates the equitable redistribution of wealth , income & even
political power in interest of the country.
18. It encourages effective resource mobilization of capital & skill
which might otherwise remain unutilized & idle.
It further promotes country’s export trade i.e. an important
ingredient to economic development.
We can conclude that entrepreneurship serves as a catalyst. On
the whole the role of entrepreneurship in economic development of
a country can best be put as
19. Promoting Entrepreneurship
In India, where over 30 crores people are living
below the poverty line, it is simply impossible for any
government to provide means of livelihood to everyone.
Such situations surely demand for a continuous effort
from the society, where the people are encouraged to
come up with their entrepreneurial initiative.
20. Challenges to Youth
Entrepreneurship
Social and cultural attitude towards young
entrepreneurship
◦ Not being taken seriously by colleagues or
business contacts
◦ Age discrimination by suppliers or customers
◦ Difficulties in attracting funding to the business
◦ Age discrimination by institution or the
government
◦ Lack of support from family or friends
21. Challenges to Youth Entrepreneurship
Entrepreneurship education
◦ General lack of introduction and adoption of
enterprise education
◦ Inadequate curricula and study programmes
◦ Wrong learning methods
◦ Negligence of students’ personal environment
◦ Lack of trained / educated teachers
◦ Lack of career information and business
possibilities
◦ Lack of business and education linkages
◦ Lack of ICT infrastructure / capability
22. Challenges to Youth
Entrepreneurship
Access to finance / start-up financing
• Lack of personal saving and resources
• Lack of security and credibility
• Lack of business experience and skills
• Strict credit – scoring methodologies and regulations
• Long waiting periods
• Lack of knowledge, understanding, awareness of
start – up financing possibilities
• Unfavorable firm characteristics and industry
• Lack of status / form of enterprise
• Lack of micro lending / -finance and seed funding
23. Importance of Promoting Youth
Entrepreneurship
Creating employment opportunities for self-employed youth as well as
the other young people they employ.
Bringing alienated and marginalized youth back into the economic
mainstream and giving them a sense of meaning and belonging.
Helping address some of the socio-psychological problems and
delinquency that arises from joblessness.
Helping youth develop new skills and experiences that can then be
applied to other challenges in life.
Promoting innovation and resilience in youth.
Promoting the revitalization of the local community by providing
valuable goods and services.
Capitalizing on the fact that young entrepreneurs may be particularly
responsive to new economic opportunities and trends.
24. Let Us Sum Up
Entrepreneur is one who identifies and sensitizes the opportunities,
innovate the ideas, raises money, assembles inputs and set and manage
the organization
The introduction of entrepreneurship in agriculture requires
development of certain qualities and skills like positive self concept,
moderate risk taker, planning, innovative, information and opportunity
seeking, etc. in an entrepreneur.
Important entrepreneurship development opportunities in agriculture
are diversification in agriculture, income from venture technologies,
food preservation, processing and value addition, production of agro-
inputs. The entrepreneurial qualities and skills can be developed
through vocational education programmes and training.
