Enterperneur

Unit-5: Entrepreneur
Meaning of 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

Who is an Entrepreneur ?
• A person who takes the risk of converting a
new idea into reality.

Introduction to Entrepreneur
One who creates a new business in the
face of risk or uncertainty for the
purpose of achieving profit and growth
by identifying opportunities and
assembling the resources to capitalize
on those opportunities.

Entrepreneur
• “An entrepreneur is one who always searches
for changes responds to it and exploits it as an
opportunity”
• An entrepreneur is a highly task oriented,
enthusiastic and energetic individual.

Requirements to be an entrepreneur
• Innovation
• Uncertainty Bearing
• Risk Taking
• Organization

Qualities of Entrepreneur
1. Success and achievement
2. Risk Bearer – he accepts risk, understand and
manage risks
3. Opportunity explorer – He always identifies
opportunity and explorers them
4. Planner – He is a good planner, he plans and
follows the plans sincerely to achieve
objectives

5. Stress taker – He should accept and bear any
amount of stresses that may evolve in the
business
6. Facing uncertainties – They should face the
uncertainty and unexpected outcomes and
accept them
7. Independent – He is an independent person
and likes to be his own master, he is a job
given and not job seeker

8. Motivator – He initiates and influences
people, motivates the people to accomplish
the objectives
9. Flexible – He is an open minded person,
flexible to adopt to demanding situational
changes

Characteristics of Entrepreneur
1. Action oriented , highly motivated and ready to take
risk at all levels to achieve the objective
2. Should have commitment
3. Creativeness and result oriented, hard working
4. Accepts responsibilities with enthusiasm
5. Self confident, dedicated and self disciplined
6. Intelligent , imaginative and self directed

The Builder of Indian Industry
J R D TATA

• Dhirubhai Ambani alias Dhirajlal
Hirachand Ambani was born on
December 28, 1932, at Chorwad,
Gujarat, into a Modh family. His father
was a school teacher.

• N.R.Narayana Murthy
An Indian IT chief who's really made it
big without dropping his ethical precepts
by the wayside is Nagawara Ramarao
Narayana Murthy, Chairman of Infosys.
• Born in 1946, Murthy's father was a
schoolteacher in Kolar district, Karnataka,
India. A bright student, Murthy went on to
acquire a degree in Electrical Engineering
from Mysore University and later studied
Computer Science at the IIT, Kanpur,
India.

Verghese kurien
(26nov,1921 - 9sep,2012)
Fonder of Amul milk Pvt. Ltd.
Father of the “White Revolution in India”

Bill Gates 1955
• By linking his Microsoft
software to IBM's first PCs,
he dominated the industry.

Michael Dell 1965
• Created a new model for PC sales
• Cutting out the retail middleman
and custom-building computers to
suit buyer‘s needs put Dell at the
front of the class of PC makers.

Tom Anderson & Chris De 2003
• Founders of
MySpace.com
• Registering 160,000
people per day with
no marketing.
• As of September
2007, there are over
200 million accounts.

Hurley, 29, Steve Chen, 28 & Jawed Karim, 27
• Founders of YouTube
• Broadcasts 100 million short
videos daily
• Sold to Google

1930, Harland Sanders
Opened Sanders
Court & Cafe in the front
room of a gas station.
Colonel Sanders began
franchising in 1952.
 Awarded the first franchise
to Pete Harman in Salt Lak City,
Utah.

Dick and Mac
The business began in 1940, with a restaurant opened by
brothers Dick and Mac, McDonald in California.
Their introduction of the "Speedee Service System" in
1948 established the principles of the modern fast-food
restaurant..

Entrepreneur :
◦ He is a person who establishes business unit and
utilizes the other factors of production like land,
labor and capital.
Manager :
A manager is the person responsible for planning
& directing the work of a group of individuals,
monitoring their work, and taking corrective action
when necessary.

Entrepreneur Manager
Self employed Salaried person

• As a Entrepreneur he sets the Objectives &goal
• As a manager he implies that Objectives & goal

An entrepreneur is the owner of the enterprise but a
manager is just an employee in the enterprise of the
entrepreneur.
The main motive of an entrepreneur is to start a
venture by setting up an enterprise. But the main aim
of a manager is to render services to an entrepreneur.

• An entrepreneur and a manager differ in their standing, an
entrepreneur is the owner of the organization and he bears
all the risk and uncertainties involved in running an
organization
• Where as a manager is an employee and does not accept
any risk.

• An entrepreneur and a manager differ in their objectives.
Entrepreneur’s objective is to innovate and create and he
acts as a change agent
• Where as a manager’s objective is to supervise and create
routines. He implements the entrepreneur’s plans and
ideas.

Decision-Making
 The entrepreneur usually makes decisions, even those of
critical importance for his business, on the basis of his own
personal and "gut feelings".
 The professional manager makes decisions after collecting
detailed information and reaching operative conclusions,
while relying on experts both from within and outside the
organization.

• An entrepreneur is not induced to involve in fraudulent
behavior where as a manger does.
• A manager may cheat by not working hard because his
income is not tied up to the performance of the
organization.

Entrepreneur is required to have certain qualifications and qualities like
high accomplishment motive, innovative thinking, forethought, risk-bearing
ability etc. Conversely it’s necessary for a manager to be educated
in the fields of management theories and practices.
An entrepreneur deals with faults and failures as a part of learning
experience where as a manager make every effort to avoid mistakes and he
postpones failure.

“An entrepreneur could be a manager but a manager
cannot be an entrepreneur”. An entrepreneur is intensely
dedicated to develop business through constant
innovation. He may employ a manager in order to
perform some of his functions such as setting objectives,
policies, rules etc.
A manager cannot replace an entrepreneur in spite of
performing the allotted duties because a manager has to
work as per the guidelines laid down by the
entrepreneur.

Entrepreneur / Manager
Entrepreneur
• Own boss
• Takes own decision
• Hires employees
• Uncertain rewards, which
can be unlimited
Manager
• Salaried employee
• Executes the decision of the
owner
• He is an employee
• Fixed rewards and salary

Types of Entrepreneur
1. According to timing of venture creations
a. Early Starters
• Start venture with little or no full-time work experience
• Suhas Gopinath started his company Globel INC at the age of 14, in USA as
Indian laws do not permit a minor to run a company.
b. Experienced
• Spent a few yrs in family business or a large company.
• Usually, the venture is related to the same business as previously engaged in.
• Narayan Murthy together with his like minded professionals started Infosys at the
age of 35 years

c. Mature
• Very senior professionals, some at the level of CEO
• Very high confidence and desire to do things in a way that may not
be totally acceptable to their earstwhile employers.
• Ashok Soota and Subroto Bagchi quit Wipro to start Mindtree.

2. According to type of business
a. Business Entrepreneurs :
• Conceive an idea for a new product/service and then create business to
materialize idea in reality.
• Tap both production and material resources to develop new business opportunity.
• Often small business entrepreneurs with small business units eg. Printing press,
advertising agency, textile processing house, readymade garments
b. Trading entrepreneur
• Trading Activities not manufacturing work
• Identifies potential markets, stimulates demand and creates interest and demand
among buyers to go in for his product.
• Can be engaged in both domestic &overseas trade.
• Whole sale trade, retail trade, Mall trading, exporters, importers, stock trading,
real estate.

c. Industrial Entrepreneur
• Ability to convert economic resources and technology into profitable venture
• Essentially a manufacturer, identifies potential
needs and starts industrial units for new products.
• Henry Ford (July 30, 1863 – April 7, 1947) was an American industrialist, the
founder of the Ford Motor Company
• John D.Rockefeller 1839-1937 John D. Rockefeller was the single most
important figure in the foundation of the oil industry.

d. Corporate Entrepreneur
• Individual who plans, develops & manages a corporate body.
• Corporate body is a form of business organisation, one body of many individuals,
large corporations, which are registered as separate legal entity under some statute
or act eg. Company regd under companies act, or trust under trust act.
e. Agricultural entrepreneur
• Agricultural activities such as raising & marketing of crops, fertilizers and other
inputs of agriculture.
• Motivated to raise the productivity through mechanization and technology.
• Plantation, horticulture, dairy, forestry, floriculture, animal husbandry, poultry,
seeds.

3. According to use of technology
a. Technical Entrepreneur
• Concentrates more on production than marketing.
• Introduction techniques, innovations for production.
b. Non-technical Entrepreneur
• Not concerned with technical aspect of production, but developing
alternative distribution strategies to promote their business.
c. Professional Entrepreneur
• Interested in establishing a business but does not have interest in
managing or operating once it established.
• Professional entrepreneur sells out running business and starts another
venture with the sales proceeds.
• Such an Entrepreneur is dynamic who conceives new ideas to develop
new projects.

4. According to Motivation
a. Pure Entrepreneur
• These are those entrepreneurs which are only aim to earn money.
• Motivated by economic rewards.
• Undertakes entrepreneurial activities for personal; satisfaction in work, ego or
status.
b. Induced Entrepreneur
• Induced to take entrepreneurship due to policy measures of the govt that provides
assistance, incentives, concessions and overhead facilities to start ventures.
• Sometimes prospective entrepreneurs are induced or even forced by their special
circumstance, such as loss of job or inability to find a suitable job according to
their talent and merit to adapt to entrepreneurship.

5. According to stage of development
a. First-generation Entrepreneur
• One who starts not from family business
• Innovator, combining different skills and technologies to
produce marketable products or service.
b. Modern Entrepreneur
• One who undertakes those ventures which go well along
with changing demand and suit in the current marketing
needs.

6. Classification based on Socio-cultural Variables
Women entrepreneurs
• Progressive laws & incentives have boosted women presence in entrepreneurial
activities in diverse fields.
• Kiran Majumdar Shaw founded Biocon, which is now a leading Biotech firm in India.
• Indra Krishnamurthy Nooyi (born 28 October 1955) is an Indian-American business
executive and the current Chairperson and Chief Executive Officer of PepsiCo, the
second largest food and beverage business in the world by net revenue.
• Indu Jain belongs to the Sahu Jain family and is the current chairperson
of India's largest media group, Bennett, Coleman & Co. Ltd., which owns the Times of
India and other large newspapers.

Social Entrepreneurs
• social entrepreneur is one who recognizes the part of society which
is stuck and provides new ways to get it unstuck.
• Chetna Sinha founded chairperson, Mann Deshi Mahila Sahkari
Bank, a micro finance bank which lends to women in rural areas.
• Verghese kurien of Amul,

IT Entrepreneurs
• An Internet entrepreneur is an entrepreneur, an owner, founder or
manager of an Internet based business enterprise who makes money
through risk and/or initiative..
• Mark Elliot Zuckerberg (born May 14, 1984) is an American computer
programmer, Internet entrepreneur, He is best known as one of five co-founders
of the social networking website Facebook
• Jeffrey Preston "Jeff" Bezos born January 12, 1964 is an American
Internet entrepreneur and investor. He is a technology entrepreneur who
has played a key role in the growth of e-commerce[6] as the founder and
CEO of Amazon.com, an online merchant of books and later of a wide
variety of products

Gender & age
• Man entrepreneur
• Woman entrepreneur
• Young entrepreneur
• Old entrepreneur

Scale
• Large scale industry entrepreneur
• Medium scale industry entrepreneur
• Small scale industry entrepreneur
• Tiny industry entrepreneur

DEFINITION OF INTRAPRENEURSHIP
“...Any of the dreamers who do. Those who take hands-on responsibility for
creating innovation of any kind, within a business. The intrapreneur may
be the creator or inventor but is always the dreamer who figures out how to
turn an idea into a profitable reality.”
• Intrapreneurs are therefore people who put new ideas into action within
established businesses.
• “An Intrapreneur is the person who focuses on innovation and creativity
and who transforms a dream or an idea into a profitable venture, by
operating within the organizational environment. Thus, Intrapreneurs are
Inside entrepreneurs who follow their founder’s example”

Intrapreneur
“Intrapreneur acts of behaving like an entrepreneur while
working within a large organization”
“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”
“Intrapreneur have entrepreneurial skills blended with
managerial skills but operate within the confines of an
organization”

Positive differences between entrepreneur
vs intrapreneur
• Funding
– company/organization often has capital to fund the project
• Manpower
– intrapreneurs do not have to worry about finding the talent
to get tasks performed
• Branding
– intrapreneurs can use the branding of the
company/organization to get their ideas to take root

The ARRI Group has been the largest world wide supplier of high quality motion
picture film equipment since 1917.
Eg. film cameras, cinematic lighting equipment
In 1937 the Arri Group introduced the world's first reflex mirror shutter in the Arriflex
35 camera.
August Arnold Robert Richter

• Post-it Notes Intrapreneurs: Spencer Silver and Art
Fry, Company: 3M ,Year Launched:1980
• Sony PlayStation Intrapreneur Ken Kutaragi ,Company: Sony Computer
Entertainment Inc. Year Launched:1994 He is known as "The Father
of the PlayStation“

• Java Programming Language Intrapreneurs: Patrick Naughton, James
Gosling , Company:Sun Microsystems ,Year Launched: 1991
• Digital Light Processing Technology Intrapreneur: Larry
Hornbeck ,Company: Texas Instruments ,Year Launched: 1996

Point Intrapreneur Entrepreneur Manager
1.Task Management Independent , Innovates
new ideas
Independent, starts new
ventures
Supervisors more than
direct involvement
2. Status Not concerned about
status, but wants
recognition
Not concerned about
status
Concerned about status
symbol
3. Risk Owns moderate risk Bears all the risks and
uncertainty
Does not bear any risk
4. Rewards Gets fixed rewards for
his work, may get extra
fro his innovations
Since there is risk , he
may get profits or loss
depending on outcome
Works for salary which
is fixed
5. Innovation Innovative Very Innovation Need not be Innovative
, he manages the ideas
of Task Management
6. Decision Making Moderate, Limited to
his work
Very much involved in
Decision Making
Implements the
decisions of Task
Management

Entrepreneurship
• Entrepreneur is a person who creates an enterprise
• The process of creation is called as entrepreneurship

DEFINITIONS OF ENTREPRENEURSHIP
• “Entrepreneurship is the purposeful activity of an individual or
group of associated individuals, undertaken to initiate,
maintain by production or distribution of economic goods or
services.”
• “ Entrepreneurship means the function of foreseeing
investment and production opportunity, organizing and
enterprise to undertake a new selecting top managers for the
day to day of an operation of an enterprise.”
• “Entrepreneurship means the function of creating something
new, organizing and co-ordination and undertaking risk and
handling economic uncertainty”

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

Benefit of Entrepreneurship
Benefit of
Entrepreneurship
Opportunity to gain control
over your own destiny
Opportunity to make a difference
Opportunity to reach your full
potential
Opportunity to get unlimited
profits
Opportunity to do what you
enjoy doing
Opportunity to contribute to
society and be recognized for
your efforts

Drawback of Entrepreneurship
High levels of stress
Drawback of
Entrepreneurship Uncertainty of
income
Long hours and
hard work
Risk of losing your
entire invested
capital
Lower quality of life
until the business
gets established
Complete responsibility

Steps in the Entrepreneurial Process
1. Discovery
2. Concept
Development
3. Resourcing
4. Actualization
5. Harvesting

1. Discovery: The stage in which the
entrepreneur generates ideas, recognizes
opportunities, and studies the market
Idea
Innovation Opportunity

What is An Idea, Opportunity and Innovation?
An idea is a concept for a product or service that does not
exist or is not currently available in a market . It may be a
brand-new concept or an improvement of a current
product or service.
In contrast, an opportunity is an idea for a new product or
service with a market that is willing to pay for that
product or service so that it can form the basis of a
profitable business.
Innovation is the process of making changes to something
that adds value to customers.
2-69

2-70
Techniques For Generating Ideas
Brainstorming Focus Groups
Surveys Other Techniques
•User groups
•Trade shows
•Suppliers

2-71
Brainstorming
• Brainstorming
– Is a technique used to generate a large number of ideas and
solutions to problems quickly.
– A brainstorming “session” typically involves a group of
people, and should be targeted to a specific topic.
– Rules for a brainstorming session:
• No criticism.
• Freewheeling is encouraged.
• The session should move quickly.

2-72
Brainstorming
• Brainstorming (continued)
– There are two reasons brainstorming generates ideas that
might not arise otherwise:
• Because no criticism is allowed, people are more likely to offer
ideas than they would in a traditional setting.
• Brainstorming sessions can generate more ideas than a traditional
meeting because brainstorming focuses on creativity rather than
evaluation.
– In most meetings, one person suggests an idea, and immediately the
rest of the group begins evaluating it. This happens because most
people are better at criticizing ideas than they are at suggesting new
ones.

2-73
Focus Groups
• Focus Group
– A focus group is a gathering of five to ten people, who
have been selected based on their common characteristics
relative to the issues being discussed.
– Although focus groups are used for a variety of purposes,
they can be used to help generate new business ideas.

Surveys
• Survey
– A survey is a method of gathering information from a
sample of individuals.
– Surveys generate new product, service, and business ideas
because they ask specific questions and get specific
answers.

2-75
Surveys
Example of a suspect survey technique
Self-Selected Opinion Poll Result
Most call-in television
surveys or magazine write-in
polls are highly suspect
because the participants
represent what’s called a
self-selected opinion poll.
Most people who take the time
to participate in a self-selected
opinion poll do so because
their have either strong
positive or strong negative
feels about the a particular
product or topic.

2-76
Other Techniques
• Customer Advisory Boards / User Groups
– Some companies set up customer advisory boards that meet
regularly to discuss needs, wants, and problems that may
lead to new ideas.

2-77
What is An Opportunity?
• Opportunity Defined
– An opportunity is a favorable set of circumstances
that creates the need for a new product, service, or
business idea.
• Difference between an opportunity and an idea.
– An idea, as we defined it, is “Something imagined or
pictured in the mind”. The difference is that an idea
may or may not represent an opportunity.

2-78
Three Ways to Identify An Opportunity

2-79
First Approach: Observing Trends
• Observing Trends
– The first approach to identifying opportunities is to observe
trends and study how they create opportunities for
entrepreneurs to pursue.
– There are two ways that entrepreneurs can get a handle on
changing environmental trends:
• They can carefully study and observe them.
• They can purchase customized forecasts and market analyses from
independent research firms.

2-80
Trend 1: Social Forces
• Social Forces
– Changes in social trends provide openings for new
businesses on an ongoing basis.
– The continual of fast-food restaurants, for example, isn’t
happening because people love fast food. It is happening
because people are busy, and have disposable income.
– Similarly, the Sony Walkman was developed not because
consumers wanted smaller radios but because people
wanted to listen to music while on the go.

2-81
Trend 2: Social Forces
Examples of Social Forces That Allow For
New Business Opportunities
• Family and work patterns.
• The aging of the population.
• The increasing focus on health care and fitness.
• The proliferation of computers and the
Internet.
• The increase in the number of cell phone users.
• New forms of entertainment.

2-82
Trend 2: Technological Advances
• Technological Advances
– Given the rapid pace of technological change, it is vital that
entrepreneurs keep on top of how new technologies affect
current and future business opportunities.
– Entire industries have emerged as the result of
technological advances.
• Examples include the computer industry, the Internet,
biotechnology, and digital photography.
– Once a new technology is created, new businesses form to
take the technology to a higher level.
• For example, Real Networks was started to add audio capability to
the Internet.

2-83
Trend 2: Technological Advances
• Technological Advances
– What are the new emerging technologies that might
provide new business opportunities?
– What are the industries that will be impacted by these
technologies?

2-84
Trend 3: Political and
Regulatory Changes
• Political and Regulatory Changes
– Political and regulatory changes provide the basis for new
business opportunities.
• For example, laws that protect the environment have created
opportunities for entrepreneurs to start firms that help other firms
comply with environmental laws and regulations.
• Similarly, many entrepreneurial firms have been started to help
companies comply with the Sarbanes-Oxley Act of 2002. The act
requires certain companies to keep all their records, including
e-mail messages and electronic documents, for at least five years.

2-85
Second Approach: Solving a Problem
Sometimes identifying
opportunities simply
involves noticing a problem
and finding a way to
solve it.
These problems can be
pinpointed through observing
trends and through more simple
means, such as intuition,
or chance.

2-86
Businesses Created to Solve a Problem

2-87
Third Approach: Finding Gaps in the
Marketplace
• Gaps in the Marketplace
– A third approach to identifying opportunities is to find a
gap in the marketplace.
– A gap in the marketplace is often created when a product or
service is needed by a specific group of people but doesn’t
represent a large enough market to be of interest to
mainstream retailers or manufacturers.
• This is the reason that small clothing boutiques and specialty
shops exist.

Discovery
Consider consumer needs and
wants
Consider your hobbies or
skills
Conduct Surveys and
questionnaires – test the market
Study demographics/ Market research

2. Concept Development:
– Develop a business plan: a
detailed proposal describing the
business idea
Executive summary
Objective
Mission Statement

What is a Business Plan?
• A business plan is a document that outlines your plan
for initiating and operating a business

Why Create a Business Plan?
• It provides a path to follow
• It makes it easy to let your banker and accountant evaluate
your aim, task and objectives
• It can serve as a communications tool for informing
salespeople, suppliers, and others about your operations and
goals
• It can help you develop as a manager

A Business Plan Structure
1. Cover Sheet
– business name, address, and phone number
– principals
– Date
1. Executive Summary
2. Table of Contents
• I. The Business Concept, The Opportunity (analysis of industry), The
Company, Potential Market Share
• II. The Marketing Plan
– overall marketing strategy
– four Ps
• Product (or Service).
• Place.
• Price.
• Promotion.

A Business Plan Structure (Continued)
• III. The Operations Plan
– location and facilities
– regulatory considerations
– labor availability
– processes
– equipment
– annual expenses
– financial summary
• IV. The Management Team
– organization
– key management personnel
– ownership structure

A Business Plan Structure (Continued)
• V. Implementation Time Schedule
• VI. Potential Risks
• VII. Conclusion
• References
• Financial Appendices
– income statements and notes of explanation
– balance sheets and notes of explanation
– cash flow statements and notes of explanation
– breakeven analysis
– financial ratio analysis

Concept Development
– Choose business location
– Will a patent or trademark be required?

A trademark is a word, phrase, symbol or design, or a
combination of words, phrases, symbols or designs, that identifies
and distinguishes the source of the goods of one party from those
of others
A copyright protects works of authorship, such as writings,
music, and works of art that have been tangibly expressed.
A patent for an invention is the grant of a property right to the
inventor, issued by the Patent and Trademark Office

3. Resourcing: The stage in which the
entrepreneur identifies and acquires the
financial, human, and capital resources
needed for the venture startup, etc
SSttaarrtt--uupp rreessoouurrcceess

Resourcing
IIddeennttiiffyy ppootteennttiiaall
iinnvveessttoorrss
AAppppllyy ffoorr llooaannss,,
ggrraannttss aanndd aassssiissttaannccee
HHiirree
eemmppllooyyeeeess

Steps in the Entrepreneurial
Process
4. Actualization: The stage in which the
entrepreneur operates the business and
utilizes resources to achieve its
goals/objectives.
$$ Grand Opening $$
Day-to-Day Operations

5. Harvesting: The stage in which the
entrepreneur decides on business’s future
growth/ development, or demise
What is your 5-year or 10-year plan?
Consider adding locations or providing different products/services
Will you go public?

Harvesting
• Three ways:
1. Sell your business,
2. Take it public (Initial Public Offering) or
3. Merge it with another.

DEVELOPMENT OF ENTREPRENEURSHIP
1. Government and non government support bodies
Government in country has come up with various
institution for supporting SSI they are national
institute for entrepreneurship and small business
development ( NIESBUD ) was established in 1983
by the ministry of micro, small and medium
enterprise. Entrepreneurship development institute in
India ( EDI ) an autonomous body and non profit
institution set up for supporting SSI in country .

2. Incubation facility : Premiere business schools and
technical institution in India have entrepreneurship
centres which provide incubation facility to start up
small scale unit. Incubator is facility designed to
assist start up companies with respect to providing
knowledge and technical assistance.
3. Educational programs : Entrepreneurship is be
coming popular choice as an elective in MBA
programs at business schools in India. In addition to
educational programs their are some business school
which provide certification programs and training to
candidates intending to start up their own business.

4. Entrepreneurship networks : Refers to association
formed by successful entrepreneur where by
becoming member of such association fresher's will
get some guidance and assistance to start up their
own business.
E.g.
• TiE -The Indus Entrepreneurs was founded in silicon
valley in 1992 by successful entrepreneurs and
professionals in country.
• National entrepreneurship network ( NEN ) founded
in 2002 is the non profit initiative working to inspire
and educate emerging entrepreneurs in company.

ROLE OF ENTREPRENEUR IN ECONOMIC
DEVELOPMENT
1. Create employment opportunities : Unemployment is
major problem faced by developing and under
developing countries around the world. As small scale
industries are labour intensive in nature they generate
more employment opportunities rather then large scale
industries in country.
2. Inspire others towards entrepreneurship : Team
created by entrepreneurship provides opportunity for
employee cum team mates to have first hand experience
in process of setting up an venture creating possibility for
team mate to come up with his own SSI in future.

3. Create knowledge spill over : Entrepreneurship serves
as mechanism by which knowledge over to the firm in
which it is commercialized. New firm gets the benefit by
the experience and knowledge gained by the founder in
the company.
Entrepreneur bridges the gap between science and the
market place by creating new enterprises and brings
new product and services into the market.

Role of entrepreneur in economic development
• Entrepreneur gives way to growth and higher
output that leads higher profits.
• Entrepreneur significantly effect the economy
of an area by building economic base and
providing jobs

Role of Entrepreneurs in Economic
Development.
• Capital formation.
• Generation of employment.
• Improvement in income.
• Reduces concentration of wealth.
• Balanced regional development.
• Resource mobilization.
• Improvement in standard of living.

Entrepreneurship in India
• Entrepreneurship in India is the effort of great people
as well as professionals.
• It started with family business around 1850 with the
starting of cotton mill in bombay
• From then Entrepreneurship had grown in all
directions from cotton mill to electronic goods, health
care, IT, Transport, space technology , education
etc…

Entrepreneurship in India
Some of the highly talented entrepreneurs of India are –
• J.R.D.Tata
• Aditya Birla
• Azim premji of Wipro
• Narayana Murthy of Infosys
• Dhirubai Ambani of Reliance
• K.Patel of Nirma

Barriers of Entrepreneurship
• ENVIRONMENTAL BARRIERS
Raw-Material
Labour Machinery
Land & Building
Financial Barriers
Other Infrastructure Requirements

• PERSONAL BARRIER
Lack of Confidence
Lack of Motivation
Lack of Patience
Inability to Dream
Lack of Dependability on Others

The process could not be taken up due to several reasons –
1. Lack of Capital
2. Non availability of raw material and resources
3. Government regulations
4. Lack of technology or idea
5. Unstable and unpredicted market
6. Globalization and entry of foreign goods
7. Risk
8. Lack of Technical Knowledge

A Brief History Of Entrepreneurship
 Earliest Period
 Middle Ages
 17th Century
 18th Century
 19th Century
 20th Century

Earliest Period
• Marco polo , as a go-between was an Italian.
• He wants to trade routes to the far East.
• As a go-between, He had to sign a contract with
a money person to sell his goods. In the contract
merchant-adventurer took a loan at 22.5% rate
including insurance .
• When the merchant-adventurer successfully sold
the goods and completed the trip, the profits were
divided with the capitalist taking most of
them(upto 75%), while the merchant-adventurer
settled for the remaining
25 %.

Middle Ages
• Entrepreneur used to describe both as an actor and a person
who managed large production projects.
• Individuals did not take any risks because all the resources
used to provided by the government of the country, all an
entrepreneur should do is to manage it.
•A typical entrepreneur in the middle age was the priest.
• The person in charge of great architectural works used to
build castles and fortifications, public buildings, abbeys,
and cathedrals.

17th Century
• The connection of the risk with entrepreneurship
developed in the 17th century.
• An entrepreneur was a person who entered into a
contract with the government to perform a service or
to supply stipulated products.
• John law, a frenchman was one of the entrepreneur
in that period.
•The founder of the royal bank of France and the
Mississippi Company,which had an exclusive
franchise to trade between France and the new
world.

18th Century
• In the 18th century, the person with capital was differentiated
from the one who needed capital.
• The entrepreneur was distinguished from the capital provider.
• One reason for this differentiation was the industrialization
occuring throughout the world.
• Thomas Edison, the inventor of many inventions. He was
developing new technologies and was unable to finance his
inventions himself.
• Edison was a capital user (an entrepreneur), not a provider (a
venture capitalist).

19th & 20th Centuries
• In the late 19th and early 20th centuries, entrepreneurs were frequently
not distinguished from managers and were viewed mostly from an
economic perspective.
• The entrepreneur organizes and manages an enterprise for peersonal
gain.
•The materials consumed in the business, for the use of the land, for
the services he employs, and for the capital he requires.

Enterperneur

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Destaque

Destaque (20)

Semelhante a Enterperneur

Semelhante a Enterperneur (20)

Mais de Manoj Reddy

Mais de Manoj Reddy (9)

Último

Último (20)

Enterperneur

Notas do Editor