As per PTU Syllabus BBA, Unit No. 3: Understanding Entrepreneurship: concept and definitions, entrepreneurial characteristics and skills, importance and significance of growth of entrepreneurial activity, classification and types of entrepreneurs; entrepreneurial competencies, theories of entrepreneurship, factor affecting entrepreneurial growth – economic, non-economic factors; entrepreneurial training; entrepreneurial success and failures, Ethics and Social Responsibility of an Entrepreneur.
3. • "When you reach an obstacle, turn it into an opportunity.
You have the choice. You can overcome and be a winner,
or you can allow it to overcome you and be a loser. The
choice is yours and yours alone. Refuse to throw in the
towel. Go that extra mile that failures refuse to travel. It is
far better to be exhausted from success than to be rested
from failure.
• - Mary Kay Ash, founder of Mary Kay Cosmetics
4. • Fortunately, right now 'entrepreneurship' is one of the business
world's biggest buzz words and so many young people in our country
are looking up to this new generation of CEO's as their modern day
rock stars. Whenever you have that effect, it makes the job of
promoting entrepreneurship much easier.
• Daymond John
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9. News Article
• Young entrepreneurs quitting corporate jobs to solve real world problems in rural India.
(Article from Economic times 16th
Aug 2013, Emerging Businesses)
11. Some Facts about new businesses
• There are about 4200 venture funded start up in India.
• India has jumped 12 places in Ease of business index and
currently at 130th
position
• It takes around 29 days to start a new business in India
while in New Zealand it takes only half an day
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12. • When it comes to complete filing process it takes around
4.3 years while in Singapore its only 0.8 years
• In terms of payment of tax, India ranks a low 157 owning
to a complicated tax structure and number of declaration
made every year.
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15. Flipkart
• A quick glance at Flipkart's timeline shows
it was to start as a price comparison
platform, but there weren't enough e-
commerce sites to compare. So, both the
Bansals, who were colleagues at IIT-Delhi,
and then at Amazon.com, thought, “why
not start an e-commerce site?”
• From a start-up with an investment of just four
lakhs rupees, From 2011 to 2014, Flipkart
grew its sales from $10 million to an
annualized $2 billion, an over 100 times
growth in three years.
16. Entreprendre
(derived from French word)
which means to initiate or undertake
The word entrepreneur is approx. 180 years old, having come into English from French in 1828
17. ENTREPRENEURSHIP may defined in
various ways, but the four key elements
involved in it are:
i. Innovation.
ii.Risk-taking.
iii.Vision.
iv.Organising skill.
18. Entrepreneur
An entrepreneur is an individual
or team that identifies the
opportunity, gather the
necessary resources, creates
and ultimately responsible for
the performance of the
organization.
21. "Focus on simplicity, listen to your customers and iterate if you
fail.“-Jan Koum
• “Almost five years ago we started WhatsApp with a
simple mission: building a cool product used
globally by everybody. Nothing else mattered to us.”
• The company employs 55 people and sold to
Facebook for US$19 billion. As of 22 April 2014,
WhatsApp had over 500 million monthly active
users, 700 million photos and 100 million videos are
shared each day, and the messaging system handles
more than 10 billion messages each day
22.
23. Who is Entrepreneur?
At least a Person
Who is a Person
Any Human Being
(but human are unique and critical)
Has own
i) thinking,
ii) working style and
iii) reaction after receiving
(may be right or wrong in one’s view)
24. Entrepreneur is a ‘Person’, who is IPS
I - Ability to initiate and Innovate
P - Can generate Profit and
S - Work is dedicated to Society
26. What is Entrepreneurship?
It refers to a process of action an
entrepreneur undertakes
to establish his enterprise.
It is a creative and innovative
response to the environment
It is a process; how he works?
32. For You
own organization work for yourself total satisfaction
high motivation secured future charm for life
family business support to family social attribute
For Society
employment opportunities in India
develop the entrepreneurial culture among the business community
augment national GDP and improve BOP
migration of qualified people to other country for employment.
Prevent people to indulge in anti social activities and thereby lead to crime.
34. http://www.redbus.in - Phanindra Sama
& Charan Padamaraju
• Our culture - Learn,
Implement, Grow - and have
fun
• Second largest in India, only
after IRCTC
• 12 million tickets an year
• Made to the list of top 50
most innovative companies
in the world by business
magazine ‘Fast Company’
37. Types of Entrepreneur:
Classification on the basis of ownership
• Founder or "Pure Entrepreneurs" :
Example : Dhirubhai Ambani of the Reliance Group.
• Second-generation operators of family-owned
business.
Example : Like Mukesh Ambani and Anil Ambani sons
of Dhirubhai Ambani of the Reliance Group now
split into two: Reliance Industries Limited and
Reliance-Anil Dhirubhai Ambani Group.
38. • Franchisees :
Example : NIIT has given its franchisee operations to local players after
thorough scrutiny and proper training.
• Owner-Manager : When a person buys a business from the founder and
then invests his time and resources in it he is called the owner-manager.
Example : Like Sabeer Bhatia is the founder entrepreneur of Hotmail.
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39. Types of Entrepreneur:
Classification on the basis of personality traits
and style of running the business
• The Achiever : These types of entrepreneurs have personal desires
to excel. The desire to make a mark in society, the desire to prove
their excellence
• The Induced Entrepreneur : These types of entrepreneurs are
induced by some external factors to start a business.
• The Idea Generator : Creative people who are always in search of
innovative ideas for setting up new business ventures.
40. Types of Entrepreneur:
Classification on the basis of personality traits and style
of running the business
•The Real Manager : The real managers run the business in a systematic manner. They analyse
business situation, assess the demands of future, both in terms of opportunities and threats
and then take actions based on the above assessments.
•The Real Achievers : The real achievers are full of life. They are looking for the achievement
of not even their goals but also of people associated with themselves like employees, suppliers
and distributors.
41. Types of Entrepreneur:
Classification on the basis of the type of
business
• Industrial Entrepreneur : Industrial entrepreneur is an entrepreneur who
is into manufacturing of a product. E.g:- CK Ranganathan, Chic
Shampoo, CavinKare, other products are Nyle and Spinz
• Trading entrepreneur is one who undertakes trading activities and is not
concerned with the manufacturing of products. E.g .Dhirubhai’s yarn
trading
42. • Corporate Entrepreneur : Corporate entrepreneur is a person
who demonstrates his innovative skill in organizing and
managing a corporate undertaking which is registered under
some act that given it a separate legal entity.e.g. Tata’s
• Agricultural Entrepreneur : Agricultural entrepreneurs are those
entrepreneurs who undertake business related to agricultural
activities. Like farm equipments, fertilizers and other inputs of
agriculture. E.g. Anand Mahindra
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43. Types of Entrepreneur:
Classification on the basis of the Development
1. First Generation Entrepreneur
2. Modern Entrepreneur
3. Classical Entrepreneur
45. LEARNING OBJECTIVES
• To get clear understanding on the
various traits and qualities required to
become an entrepreneur and functions
performed by entrepreneur.
46. Qualities & Functions of the
Entrepreneurs
• Qualities:
1. Planner
2. Technician
3. Risk bearing abilities
4. Decision maker
5. Ability to find and explore opportunities
6. Motivator
7. Future oriented
8. Interpersonal skills
9. Facing uncertainty
10.Coordination
47. • Functions:
1. Risk taking and uncertainty bearing
2. Taking business decision
3. Managerial functions
4. Innovation
5. Coordination
6. Maintain good-relation
7. Analysis of the environment
8. Planning
9. Utilization of the resources
57. Head Held High
Sunil Savara, Madan Padaki
and Rajesh Bhat,
•"From being absolutely illiterate, they
acquired the ability to converse in English,
work on computers and essentially, work
like any other employee in a high-tech
industry, in less than eight months," says
Rajesh Bhat, co-founder and chief
executive of Head Held High Services,
which started operations in October 2012.
•Padaki terms the rural youth "rubans".
They mirror the urban youth in many
ways---talent; entrepreneurship and tech-
savviness.
58. LEARNING OBJECTIVES
• To know about the importance of
entrepreneurs in economic growth and
their role in it.
59.
60. Economic growth
• Economic growth is a process in which all efforts are
made to increase national income, national output , per
capita income , per capita output and standard of living
of people by exploiting all the available resources of
country.
61. • The position of the entrepreneur in modern production is
like that of the director of a play.
Modern economic development is closely linked with
production. Modern production is higher complex.
The entrepreneur directs production and he must do
whatever is necessary for its success.
62. Role and Importance of
Entrepreneur in Economic Growth
1. The entrepreneur coordinates the factors of production.
This involves not only assembling the factors, but also
to see that the best combination of factors is made
available for the production process.
1. The entrepreneur takes risk. This is an important
function of the entrepreneur and the quantum of profit
he receives is directly proportionate to risk he takes.
Risks are generally based on anticipation of demand.
63. 3. The entrepreneur innovates and he can undertake anyone type
of the following five categories of innovation:
a. The introduction of a new good or new quality of good.
b. The introduction of a new method of production.
c. The opening of a new market.
d. The conquest of a new source of supply of raw material.
e. The carrying out of a new organization of any industry.
65. • Economic development applies in the context of people's sense of
morality (right and wrong, good and bad).
• The definition of economic development given by Michael Todaro is an
increase in living standards, improvement in self-esteem needs and
freedom from oppression as well as a greater choice
• The economic development of a country to a large extent depends on human
resources. But human resource alone will not produce economic
development-there must be dynamic entrepreneurs.
66. Importance of Entrepreneur in
Economic Development
• Employment Generation
• National Income
• Dispersal of Economic Power
• Balance Regional Development
• Economic Independence
• Reducing Unrest and Social Tension Amongst Youth.
• Improvement in Living Standard
• Harnessing Locally Available Resources and Entrepreneurship.
• Innovation in Enterprises
67. ASSESS YOUR SUITABILITY FOR
ENTREPRENEURSHIP
• Assess your interests
• Hobbies and interests
• Past experiences
• Assess your aptitude
• Assess the advantages of entrepreneurship
• Assess the disadvantages of entrepreneurshipSli
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68. ADVANTAGES OF
ENTREPRENEURSHIP
• Entrepreneurs are their own bosses.
• Entrepreneurs can choose a business that
interests them.
• Entrepreneurs can be creative.
• Entrepreneurs can make lots of money.
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69. DISADVANTAGES OF
ENTREPRENEURSHIP
• Entrepreneurship is risky.
• Entrepreneurs face uncertain and irregular
incomes.
• Entrepreneurs work long hours.
• Entrepreneurs must make all decisions by
themselves.
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71. • Trishneet Arora
• Ethical hacker
• TAC Security Solution
• North India’s first cyber
Response team
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72. • Clients Including: Reliance, CBI, Punjab Police & 40% of
them are aborad
• Turnover: 2 Crores
• Corporate Office in Ludhiana & Virtual Office in UK and
Dubai
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73. CHARACTERISTICS OF
SUCCESSFUL ENTREPRENEURS
Successful entrepreneurs
• are independent
• are self-confident
• have determination and perseverance
• are goal-oriented
• have a need to achieve and to set high standards for themselves
• are creative
• are able to act quickly
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75. Social Factors
• Practical Values
• Emotional Block
• Cultural Barriers
• Respect for Entrepreneurs
• Traditional Binding
• Defective administrative and Compliance System
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76. Personal Factors
• Lack of Sustained Motivation
• Difficulty and Ambiguity
• Impatience in solving problems
• Inability to dream and use subconscious
78. “Our concern for good behaviour. We feel an obligation
to consider not only our own personal well being but
also that of others”.
Albert Schweitzer
79. Main Idea
Entrepreneurs must do more than provide jobs and make a
profit.
They also are expected to run their business responsibly.
80. An Entrepreneur’s Main
Responsibilities
• Economic - be profitable
• Legal - obey the law
• Ethical - do what is right
• Discretionary -
contribute to community
and quality of life
81. Entrepreneurs and Social
Responsibility
Being a responsible
entrepreneur involves more
than philanthropy.
philanthropy the act of
making charitable
donations to improve the
welfare of society
82. Entrepreneurs and Social
Responsibility
For a business to survive, it
must exhibit social
responsibility.
social responsibility
the principle that
companies should
contribute to the welfare
of society and not be
solely devoted to
maximizing profits
84. Your Responsibility to Customers
Guidelines for your responsibility to customers
include:
Do not mislead customers.
Give complete information regarding proper use.
Label unsafe products as such.
Offer the best quality products at the lowest
prices.
85. Your Responsibility to the
Environment
The Environmental
Protection Agency (EPA)
enforces environmental laws
and regulations.
environmental
protection agency an
independent federal
agency established to
coordinate programs and
enforce regulations
aimed at reducing
pollution and protecting
the environment
86. Your Responsibility to the
Environment
To protect the environment:
Employ environmental affairs personnel.
Eliminate wasteful practices and emissions
of pollutants from manufacturing processes.
Improve products to increase efficiency.
87. Contributing to the Community
Many small businesses have found ways to be
generous to the community, including:
donating their products and services
involving employees in philanthropy
joining with other companies to promote
social responsibility
88. Being a Socially Responsible
Employer
As a small business owner, you have a responsibility to
treat your employees fairly.
You can offer flextime, health care, telecommuting,
on-site child care, and assistance to employees with
impairments.
89. Being a Socially Responsible
Employee
Personal responsibility is the basis of social
responsibility.
Responsible employees maintain high ethical
standards when dealing with coworkers,
management, and customers.
90.
91. ETHICS
• The word ethics is derived from the Greek word
“Ethikos” which means character.
• Dictionary meaning – “system of moral principles,
rules and conduct.”
• Ethics is defined as the ability to distinguish between
right and wrong and to act accordingly.
92. Ethical Responsibility
Ethics are guidelines for human behavior.
They are the moral code by which people live and conduct
business.
Ethics help people decide how to act in situations where
moral issues are involved.
93. Making Ethical Decisions
• Character and integrity strongly influence personal
relationships.
• Your character is based on internal values.
• Character is based on internal values and resulting
judgments.
• Ethical decisions reflect the strength of your character.
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94. What Does It Mean to
Be Ethical?
It is important for an
entrepreneur to have clear
ethics policies governing
ethical behavior, because
not everyone has the same
standards.
ethics guidelines for
human behavior; the
moral code by which
people live and conduct
business
ethical behavior
conduct that adheres to
the moral code by which
people live and conduct
business
95. Understanding Your Values
The benefits of understanding your value system
are:
You make better decisions because you base
them on your values.
You are able to persuade others to agree with
you when you are confident about your values.
You usually do not regret decisions you make
based on your values.
96. What Are Business Ethics?
A business owner without
good business ethics can
not expect his or her
employees to act ethically.
business ethics the
study of behavior and
morals in a business
situation
97. Are Everyone’s Ethics
the Same?
People do not share the same ethical values.
Because not everyone has high ethical standards,
entrepreneurs need to create clear ethics policies.
98. Developing a Code
of Ethics
Many entrepreneurs develop
an explicit code of ethics
that spells out appropriate
business conduct.
code of ethics ethical
behavior guidelines that
govern the day-to-day
activities of a profession
or organization
99. Special Problems for Entrepreneurs
Entrepreneurs have some typical ethical problems.
Conflicts of interest
Bribes
Desperate measures
Cultural differences
Patent of copyright infringement
100. Conflict of Interest
If an entrepreneur faces a
conflict of interest, he or
she should not put aside
ethics to meet a short-term
goal.
conflict of interest a
clash between a person’s
private interests and his
or her responsibilities in a
position of trust
101. Bribes
In some parts of the world,
bribes are an accepted part
of doing business.
bribe a payment made
to secure special services
for a business or special
consideration for its
products
Bribes are illegal in the
United States.
102. Entrepreneurial Failure
• Survival Driven (Seeking Money before Adding Value)
• Inadequate Knowledge (Low Business IQ)
• Lack of Focus (Jack of all Trade): “genius is the ability to focus on
one particular thing for a long time without losing concentration.”
• Fear of Failure (Risk-Averse)
• Lack of Vision (Shortsightedness)
• Poor Money Management (Extravagance)
• I Can Do Well All by Myself (Insecurity)
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104. Walt Disney
• Walt Disney is the
businessman behind the very
successful theme park “Walt
Disney World“. Walt
Disney was reportedly fired
by a newspaper editor for
not having good ideas and
no imagination. Disney
World is currently valued at
$35 Billion dollars.
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105. Thomas Edison
• Before becoming
successful, Thomas
Edison tried more than
10,000 times to invent the
light bulb. When Asked
about his failures, Edison
stated that he knew
“definitively over 9,000
ways that an electric light
bulb will not work.”
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106. Fred Smith
• Founder of hugely
successful company “Fed
Ex” Smith’s college
professor stated that his
concept of Federal
Express was “interesting,
but not feasible”.
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107. Steve Jobs
• Steve Jobs was actually fired from
Apple Computers, the very
company that he is responsible for
making it the success it is today.
When Jobs was fired from Apple, he
was quoted stating “I didn’t see it
then, but it turned out that getting
fired from Apple was the best
thing that could have ever
happened to me. The heaviness of
being successful was replaced by the
lightness of being a beginner again,
less sure about everything. It freed
me to enter one of the most creative
periods of my life.”
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108. Oprah Winfrey
• Hailed as the “ Queen of
Daytime Talk TV” Winfrey
was fired from her news
reporter gig at a Baltimore
news station. Oprah went
on to build a successful
following from her daytime
talk show “The Oprah
Winfrey Show”. Oprah’s net
worth is currently valued at
2.7 billion dollars.
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109. Steven Spielberg
• Steven Spielberg was
rejected from film school
3 times before getting his
huge break. Spielberg is
known for directing mega
hits that include Jurassic
Park and Jaws.
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110. Bernie Marcus and Arthur Blank
• Founders of the home
improvement chain “The
Home Depot” Marcus and
Blank were fired from
Corporate America in 1989.
These savvy businessmen went
on to turn their Big Box store
into a huge success and
currently have over 2,200
retail stores in the United States
with revenues exceeding 74.8
billion dollars.
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111. Colonel Sanders
• Colonel Sanders is the
entrepreneur who
founded KFC “Kentucky
Fried Chicken” when he
was 56 years old. His
recipe was reportedly
rejected over 1,000 times
before a restaurant picked
it up.
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112. Henry Ford
• Ford founded two
automotive companies
that failed before he was
able to gain success with
the Ford Motor Company.
At his time of death,
Ford’s estimated net
worth was $188 billion
dollars.
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113. Lybrate
• Founder: Rahul Narang and Saurabh
Arora
• Mobile App: Online OPD
• Service Offered: It offers, among others,
free interaction with doctors, paid
consultation with specialists, audio and
video calling facilities between doctors
and patients, and a regular health feed on
more than 400 topics. nearly two million
apps were downloaded in a year
• Fund raising: $11.43 in two rounds from
Tiger Global, Nexus Venture Partners and
Ratan Tata
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115. A Function of Innovation: By Joseph
Schumpeter
• Entrepreneurship : A Function of Innovation: Joseph A.
Schumpeter (1934), for the first time, put the human agent at
the centre of the process of economic development and
assigned a critical role to the entrepreneurship in his theory
of economic development.
• He considered economic development as a discrete
technological change. The process of development can be
generalized by five different types of events:
116. • Firstly, it can be the outcome of the introduction of a new
product in the market.
• Secondly, it can be the result of a new production
technology.
• Thirdly, it may arise on account of a new market.
• Fourthly, it may be the consequences of a new source of
supply.
• Fifthly, it may be due to the new organization of any industry
116
117. According to Schumpeter
• Development is not an automatic process, but it must
be deliberately and actively promoted by some
agency within the system, Schumpeter called the agent
who initiates the above changes as an entrepreneur.
• He is the agent who provides economic leadership that
changes the initial conditions of the economy and causes
discontinuous dynamic changes.
• By nature, he is neither technician, nor a financier,
but he is considered an innovator and entrepreneurs
are not solely motivated by profit.
118. A Function of Managerial Skill &
Leadership: By Bert F. Hoselitz
• A Function of Managerial Skill and Leadership: Hoselitz
states that a person who is to become an industrial
entrepreneur must have additional personality traits.
• In addition to being motivated by the expectations of
profit he must also have some managerial abilities and
more important he must have ability to lead.
• Hoselitz maintains that financial skills have only a
secondary consideration in entrepreneurship.
119. An Organization Building Function: By
Fredrick Harbison
• An Organization Building Function: Fredrick Harbison states that the
organization building' ability is the most critical skill needed for the
industrial development. According to him entrepreneurship means the
skill to build an organization.
Harbison spots the crux of the entrepreneurship in his ability to multiply
himself by effectively delegating responsibilities to others.
120. The main features are:
• Unlike Schumpeter, Harbison's entrepreneur is not an innovator
but an 'organisation builder' who must be able to harness the new
ideas of different innovators to the rest of the organization.
• Such persons are not always the men with ideas or men who try
new combinations of resources but they may simply be good
leaders and excellent administrators.
• Harbison's definition of entrepreneurship lays more stress on the
managerial skills and creativity so far as organization is
concerned. 120
122. A Function of High Achievement: By
David McClelland
• A Function of High Achievement: Mc Clelland
states that a business man who simply behaves
in traditional ways is not an entrepreneur.
Moreover, entrepreneurial role appears to call for
decision making under uncertainty.
123. • Mc Clelland identified two characteristics of
entrepreneurship firstly
• "doing things in a new and better way“
• "decision making under uncertainty".
• Persons with high achievement would take moderate
risks. They would not behave traditionally (no risk). 123
124. • The high achievement is associated with better
performance at tasks which require some imagination,
mental manipulation or new ways of putting things
together, and such people do better at non routine
task that require some degree of initiative or even
inventiveness.
124
125. • People with high achievement are not influenced by
money reward as compared to people with low
achievement.
• People with low achievement are prepared to work
harder for money or such other external incentives.
For people with high achievement, profit is a
measure of success and competency.
125
126. ‘Input Completing’ & ‘Gap Filling’
Function: By Liebenstein
• 'Input Completing' and 'Gap filling' Function: Liebenstein
identified gap filling as an important characteristic of
entrepreneurship.
• It is the entrepreneurial function to make up the deficiencies or
to fill the gaps.
• These gaps arise because all the inputs in the production
function cannot be marketed because some inputs like
motivation, leadership etc. are vague in their nature and
whose output is undeterminate.
127. • This "gap-filling" activity gives rise to a most
important entrepreneurial function namely "Input-
Completing". He has to marshal all the inputs to
realize final products.
127
128. A Function of Innovation Joseph Schumpeter
An Organization Building Function Fredrick Harbison
Managerial Skill & Leadership Bert F. Hoselitz
A Function of High Achievement David McClelland
‘Input Completing’ & ‘Gap Filling’
Function
Liebenstein
Notas do Editor
Today, we recognize that character and integrity strongly influence relationships in personal selling.
As noted in the previous chapter, character is composed of your personal standards of behavior, including honesty and integrity.
Your character is based on your internal values and the resulting judgments you make about what is right or wrong.
The ethical decisions you make reflect the strength of your character.