basics of entrepreneurship

1. Introduction to
Entrepreneurship
Unit - 1

3. Ans : 042

4. FIND THE MISSING NUMBER

6. • One rabbit saw 6 elephants while going towards River. Every elephant
saw 2 monkeys are going towards river. Every monkey holds one
tortoise in their hands.
• How many animals are going towards the river?

7. True Meaning
Definition of entrepreneurship placed an emphasis on innovation, such
as:
1. New products
2. New production methods
3. New markets
4. New forms of organization

8. Entrepreneur VS Small Business
Entrepreneurial ventures differ from small businesses in these ways:
1. Amount of wealth creation - rather than simply generating an income stream
that replaces traditional employment, a successful entrepreneurial venture
creates substantial wealth, typically in excess of several million dollars of profit.
2. Speed of wealth creation - while a successful small business can generate
several million dollars of profit over a lifetime, entrepreneurial wealth creation
often is rapid; for example, within 5 years.
3. Risk - the risk of an entrepreneurial venture must be high; otherwise, with the
incentive of sure profits many entrepreneurs would be pursuing the idea and
the opportunity no longer would exist.
4. Innovation - entrepreneurship often involves substantial innovation beyond
what a small business might exhibit. This innovation gives the venture the
competitive advantage that results in wealth creation. The innovation may be
in the product or service itself, or in the business processes used to deliver it

9. Characteristics of Entrepreneur
1. An eye for opportunity
2. Independence
3. An appetite for hard work
4. Self-confidence
5. Discipline
6. Judgment
7. Ability to accept change
8. Make stress work for them

10. 9. Need to achieve
10. Focus on profits
11. Risk-bearing
12. Locus of control
13. Creative and Innovators
14. Leadership
15. Ability to mobilize resources

11. An idea
IdeaPaint was developed by John Goscha, a freshman in college, who
was brainstorming ideas for a business project with college friends in a
dorm room. They ran out of brainstorming space on the paper they had
taped to the wall and from there, John came up with the idea of dry
erase paint, which was launched in 2008. This paint can be applied on
any smooth surface and is sold in well known home improvement
stores.

13. • Jimmy Tomczak (23) was looking for shoes that made the foot feel
bare but still offered some protection. As a result, he founded
TOMBOLO LLC, which sells shoes that are made out of recycled vinyl.
The billboard vinyl is durable, waterproof and washable. These shoes
are made by hand in Michigan.

14. • Ray Land, a 23 year old entrepreneur, got tired of taking school trips
in buses with dirty bathrooms and broken air conditioners so he
developed a line of luxurious charter motor coaches. The coaches
include plush seats, granite countertops, WiFi, coffee machines,
refrigerators, plugins, entertainment monitors, and scenic glasstop
roofs. Some of the buses are even double deckers.

25. Classification of Entrepreneurship
• Administrative Entrepreneurship The entrepreneurial activity under
this category is centered around administrative techniques and
functions. It gives a new option to handle prevailing or future
situations in a more effective way that provides advantages and
competitive edge.

26. • Opportunistic entrepreneurship There is a proverb “Hit! while the iron is
hot”. It is the best exhibit of the characteristic of this category of
entrepreneurship. Environmental changes always offer new
opportunities. But everybody is not equally capable of identifying and to
utilize that opportunity on time.
• Acquisitive entrepreneurship The entrepreneurship that learns from
others competencies is acquisitive entrepreneurship.It acquires
something new of value front, the competitive environment or achieves
the competitors’ technical capacities. It keeps the entrepreneurship
sustainable in the competitive environment.

27. • Incubative entrepreneurship This category of entrepreneurship
generates and nurses new ideas and ventures within the organization.
It executes them in a productive manner and ensures material gain
for the organization. They pursue and help to get differentiated
technologies to promote creations and innovations Microsoft, Nokia
etc. always incubates new varieties types of product and creates
product differentiation in the market.
• Imitative entrepreneurship The entrepreneurship that imitates a
good or service operating in the market under a franchise agreement
is the imitative entrepreneurship. It is the medium that spread
technology over the world.
• Private Entrepreneurship The entrepreneurship that is initiated
under private sector is private entrepreneurship. The government
gives various support services through private and public concerns
that encourage private initiative in taking entrepreneurial ventures.

28. • Public entrepreneurship The entrepreneurship that is undertaken by the
government through its various development agencies is public
entrepreneurship. All countries, developed or underdeveloped, take a public
initiative in venture ideas to fulfill the initial deficiency of private entrepreneurs.
• Individual entrepreneurship The entrepreneurship that is undertaken by an
individual or a family with the personal initiative is individual entrepreneurship.
• Mass Entrepreneurship This type of entrepreneurship emerges in an economy
where a favorable climate of motivation and encouragement exist for developing
a wide range of entrepreneurship among general mass is mass entrepreneurship.’
It increases small and medium enterprises in a country

29. The Entrepreneurial Process

33. Barriers to Entrepreneurship
1. Lack of knowledge
There are many barriers to entrepreneurship that individuals face when they want to start
their business. One of these barriers is lacking the knowledge on what it takes to run a
successful business.
2. Lack of money
A lack of money is one of the big barriers to entrepreneurship. It limits the depth of
opportunities that people have when they want to start their own business.
3. Fear of failure
Fear of failure is the most common barrier to entrepreneurship. It is recommended that
entrepreneurs break their fear and change their perception about their fear by celebrating
their successes rather than focusing on failures.

34. 4. Low confidence
The lack of confidence is fuelled by the fact that it can be hard to learn about entrepreneurship and how
to start a business in general. There also seems to be a lack of applicable education for people who want
to start their own business, especially for those with less entrepreneurial experience. This is one of the
fundamental barriers to entrepreneurship.
5. Lack of experience
Entrepreneurs are often forced to take risks with little knowledge and they are left with little or no
support from anyone else in their lives. Lack of experience is the number one barrier to
entrepreneurship.
6. No idea what to start
There are many barriers to entrepreneurship that have to be ousted in order to start a business, but the
most significant one is the lack of ideas. As a result, new entrepreneurs often struggle to come up with a
conclusion, on what they should start or what they should do with their life after they graduate.

35. 7. Lack of contacts
Entrepreneurship is a competitive field and gaining access to influential people and
mentors can be difficult for many. This often leads to entrepreneurs starting without any
form of funding or intellectual support.
8. Waiting for the "perfect idea"
There are many barriers to entrepreneurship that individuals have to face when they start
their businesses.
Waiting for the "perfect idea" is one of them.

36. Failed Entrepreneurs
• Hiten Shah, Co-Founder at KISSmetrics(SAAS, Google Analytics)
• Wasted $1,000,000 on a company that never launched”
• My co-founder and I spent $1,000,000 on a web hosting company that never
launched. We were perfectionist so we built the best thing we could without
even understanding what our customers cared about.
• We have now learned to spend smart, optimize for learning and focus
on customer delight.
• Hiten has since co-founded two wildly successful analytics companies
with KISSmetrics and Crazy Egg

37. • “We built the website first and asked our customers about it later”
• Robin Chase, Co-Founder of Zipcar (Car Rental)
• Get to your customers as fast as possible & learn from them to build your
product.
With my second company, GoLoco – social online ridesharing – we spent too
much money on the website and software before engaging with our first
customers. This meant that part of our learning was undoing our first
guesses.
• Robin is the Founder and CEO of Buzzcar and also the founder and former
CEO of Zipcar

38. • “I started too late. I toiled in a job I hated for a long time.”
• Leo Babauta – Best-selling author
• I started too late – because of fear of failure or a lack of belief in
myself. I toiled in a job I hated for a long time, instead of starting a
blog or building a business I loved.
• Knowing what I know now, I’d have started a decade earlier. Not
starting is the worst-case scenario.
• Leo Babauta is a best-selling author and an entrepreneur.

39. • “I built a product without understanding the market or the users”
• Sandi MacPherson – Editor-in-Chief, Quibb (Cloud Management Platform)
• Last year, I spent 6 months building a product I wouldn’t use very often, in
a market I wasn’t familiar with, for users I didn’t understand – big mistake.
• It made it extremely difficult to figure out why things were or weren’t
working, and I ended up creating a product that no one wanted.
• I could never become the product expert, which is what every
founder/CEO needs to be.