By
Venkatesh.N
Asst Professor
Koshys Institute of Management Studies
Topic :- Entrepreneurship Development
Subject :- ENTREPRENEURIAL MANAGEMENT
Class :- V Semester BBA
1st Chapter
Entrepreneurship Development
By
Venkatesh.N
Koshys Institute of Management Studies
What is an Entrepreneur?
An Entrepreneur…
… takes on the risk of
starting their own
enterprise or investing
in other start-ups.
Continued....What is an Entrepreneur?
Successful entrepreneurs
are known for…
… Finding innovation and
market gaps for new
products and services.
The World of the Entrepreneur
• A study by the Global Entrepreneurship Monitor (GEM)found 11.3 percent of the adult population in the UnitedStates is working to start a business. North America,South America and Latin America lead the world inentrepreneurial activity.
What is an Entrepreneur
An entrepreneur is one who creates a new business in theface of risk and uncertainty for achieving profit andgrowth opportunities and assembles the necessaryresources to capitalize on those opportunities
Entrepreneurial Profile
• High level of energy
• Flexibility
• Desire for responsibility
• Future orientation
• Tolerance for uncertainty
• Preference for moderate risk
• Skill at organizing
• Confidence in their ability to succeed
• Value of achievement over money
• Desire for immediate feedback
• High degree of commitment
Women Entrepreneur
Women Entrepreneur
Introduction
The educated women do not want to limit their lives in thefour walls of the house. They demand equal respect fromtheir partners. However, Indian women have to go a longway to achieve equal rights and position because traditionsare deep rooted in Indian society where the sociological setup has been a male dominated one.
• Women are considered as weaker sex and always made todepend on men folk in their family and outside, throughouttheir life. The Indian culture made them only subordinatesand executors of the decisions made by other malemembers, in the basic family structure.
Concept of women entrepreneur
While at least half the brainpower on earth belongs towomen, women remain perhaps the world‘s mostunderutilized resource. Despite all the social hurdles,India is brimming with the success stories of women.
• Women Entrepreneurs may be defined as the women or agroup of women who initiate, organize and operate abusiness enterprise.
• Women entrepreneurs engaged in business due to pushand pull factors which encourage women to have anindependent occupation and stands on their on legs.
• The Government of India has defined womenentrepreneurs as ―an enterprise owned and controlled bywomen having a minimum financial interest of 51 percent of the capital and giving at least 51 per cent of theemployment generated in the enterprise to women‖.
Intrapreneurship
• Intrapreneurship is the act of behaving likean entrepreneur while working within a largeorganization.
• An inside entrepreneur, or an entrepreneur within alarge firm, who uses entrepreneurial skills withoutincurring the risks associated with those activities.
• Intrapreneurs are usually employees within acompany who are assigned a special idea or project,and are instructed to develop the project like anentrepreneur would.
• Being your Own Boss
– Self-management is the motivation that drivesmany entrepreneurs.
• Financial Success
– Entrepreneurs are wealth (capital) creators.
• Job Security
– Over the past ten years, large companies haveeliminated more jobs than they have created.
• Quality of Life
– Starting a business gives the founder some choiceover when, where, and how to work.
Why Entrepreneurship?
Entrepreneurs as possessing these (characters)
• Desire for responsibility
• Preference for moderate risk (risk eliminators)
• Confidence in their ability to succeed
• Desire for immediate feedback
• High level of energy
• Future orientation (serial entrepreneurs)
• Skill in organization
• Value of achievement over money
• Other characteristics of entrepreneurs include:
High degree of commitment
Willingness to accept risk, work hard and take action
Flexibility
Characteristics of Entrepreneurs
Entrepreneurial Characteristics
• Vision - entrepreneurs begin with an overall idea for how tomake their business idea a success
• High Energy Level - a willingness to work hard
• Need to Achieve - entrepreneurs work hard because they wantto shine
• Self-Confidence - fearlessness in the face of difficult chances
• Tolerance for Failure - entrepreneurs are not easilydiscouraged
• Creativity - entrepreneurs devise innovative ways toovercome difficult problems and situations
• Internal Locus of Control - entrepreneurs believe they cancontrol their own luck
The Benefits of Entrepreneurship
The primary benefits entrepreneurs enjoy include the
opportunity to:
• Create their own destiny
• Make a difference
• Reach their full potential
• Generate impressive profits
• Contribute to society and be recognized for their
efforts
• Do what they enjoy and have fun at it!
.
Behind the Boom: What’s Feeding the Entrepreneurial
Fire?
The rapid increase in entrepreneurs has been a result of:-
• Considering entrepreneurs as heroes
• Entrepreneurial education
• Demographic and economic factors
• move to a service economy
• Technological advancements
• Independent lifestyles
• business and the Internet
• Additional international opportunities
The Ten Deadly Mistakes of Entrepreneurship
• Studies have indicated that there are common reasons for newbusiness ventures to fail. These causes of small businessfailure may include.
• Management mistakes
• Lack of experience
• Poor financial control
• Weak marketing efforts
• Failure to develop a strategic plan
• Uncontrolled growth
• Poor location
• Improper supply control
• Incorrect pricing
• Inability to make the “entrepreneurial transition”
Putting Failure into Perspective
• Entrepreneurs don’t fail—the venture fails.
• There are no such things as failures, only results.
• Always look to turn a negative situation into a positive
opportunity.
• Have no fear of failure and be sure to have a
emergency plan.
• The only people who never fail are those who never do
anything or never attempt anything new.
• The successful entrepreneur understands the meaning
of these problems and knows how to deal with danger
in a proactive and positive
Entrepreneurship
• Entrepreneurship can be described as a process of
action an entrepreneur undertakes to establish his
enterprise.
• Entrepreneurship is a creative activity. It is the ability
to create and build something from practically
nothing.
Enterprises
• Entrepreneur is a person who starts an enterprise. The
process of creation is called entrepreneurship. The
entrepreneur is the actor and entrepreneurship is the act. The
outcome of the actor and the act is called the enterprise.
• An enterprise is the business organization that is formed
and which provides goods and services, creates jobs,
contributes to national income, exports and over all
economic development.
Difference B/W entrepreneur& entrepreneurship
• Entrepreneur is the actor, entrepreneurship is the act.
Entrepreneurship is the most effective way of bridging the
gap between science and the market place by creating new
enterprises. An entrepreneur is the medium who brings
about this change.
• The term entrepreneur is used to describe men and women
who establish and manage their own business. The process
involved is called entrepreneurship
Contd…
• Entrepreneurship is an abstraction(concept) whereas
entrepreneurs are tangible people.
Entrepreneurship is a process and an entrepreneur is
a person
How to Avoid the Pitfalls
These similar studies have indicated that entrepreneurs
can increase their changes for success if they.
1. Know their business in depth.
2. Develop a solid business plan in writing.
3. Manage financial resources.
4. Understand financial statements.
5. Learn to manage people effectively.
. What are the major benefits of business ownership
Major benefits of business ownership include the:
• Opportunity to gain control over your own
fate(destiny)
• Opportunity to make a difference
• Opportunity to reach your full prospective(future)
• Opportunity to pick unlimited profits
• Opportunity to contribute to society and be
recognized for your efforts
• Opportunity to do what you enjoy
Women entrepreneurs- problems and promotions
• in the recent year women have taken a bold step to come out
of their traditional domestic occupations to take up jobs out
of homes. Today the entrepreneurial world is also open to
the womenfolk(group)
• Here for women the main problem at start up and later in
the venture reflect a lack of business training and generally
these problems are in the financial area.
• With education and training, women have gained
confidence to do all work.
• Some of the outstanding leadership qualities of women
entrepreneur are
Contd…
• Accepted challenges
• Consciousness(awareness)
• Enthusiastic(excited)
• Motivator
• Studious(serious)
• Adventures(exciting
activity)
• Drive(ready to do)
• Determination (strength of
mind)to the end
• Patience(tolerance)
• Skillful
• Ambitious
• Educated
• Hard work
• Experienced
• Intelligent
Types of Entrepreneur
• According to gender and age the entrepreneur are
grouped as
young
• Men old
middle aged
young
• Women old
middle aged
Problems of women entrepreneur In India
• Need for achievement, economic independence and
dependence(autonomy-self-rule ) are absent.
• No risk bearing capacity(dependency is more)
• Lack of education(literacy percentage is only 18.5)
• family involvement
• Male dominated society
• Lack of information and experience
• Liquidity and easy availability of finance(only 11% of total
earnings are by women)
Contd…
• Inadequate size of loans
• Time taken to process loans
• Tight repayment schedule
• Ignorance of banking procedure due to illiteracy
• Lack of marketing, accounting ,and management skills
leading to failure of projects and consequence inability to
pay loans
Entrepreneurial Skills
The following are foundational skills entrepreneurs need torun and operate a successful business:
• Communication Skills
– Writing, Speaking & Listening
• Human Relations Skills
• Managing skills
• Problem Solving & Decision Making Skills
• Technical Skills
• Basic Business Skills
Types of entrepreneur
Innovative entrepreneur
Adoptive or imitating entrepreneur
Fabian entrepreneur(traditionally bounded)
Drone(buzz) entrepreneur
Other types of classification of entrepreneur
This can be on the following basis
• According to type of business handled
• According to the use of technology
• According to the motivation
• According to the growth
• According to the stage of development
• Another type of classification is based on:-
• Institutional entrepreneur
• Entrepreneurs by inheritance
• Forced entrepreneur
Functions of an entrepreneur
• Innovation-new process of production
introduction of new products
creation of new market
discovery of new and better
sources of raw material
creation of better form of industrial org
• Risk bearing-capacity to assume(think) risk
possessing self confidence
• Organization and management-capacity to decide project
finance raise
plan production
Manage enterprise
earn profit
Entrepreneurial functions
• Innovation
• Raising finance
• Earning profit
• Managing enterprise
• Planning production
• Project decision
• Risk taking
Attribute( characters ) of a successful
entrepreneur are as given below
• He should be a technically qualified person.
• Have adequate(sufficient) shop floor experience to guide themachine operation in tool setting techniques.
• Be familiar with the raw materials, their specifications ,quality , sources of availability , price sheet etc…
• Have a knowledge of marketing channels, distributionnetwork, agency practices, transport details and theeconomics of packaging
• Know how to ensure the stipulated(set) quality of hisproduct
• Know taxation principles and laws governing(lead) SSIs
• Have the guts to withstand the polluted climate in which hehas to build his unit
Awareness of self competency and its
development
• Entrepreneurs should monitor(watch) closely for the
actions of their direct competitors maintain a solid
grasp(take hold of) of where their significant(major)
competitors are heading and spend only minimal
resources tracking their indirect competitors.
• A competitive intelligence exercise enables
entrepreneurs to update their knowledge of
competitors by answering the following questions
Contd…
• Who are our compotators? Their location
• What distinctive( unique ) competencies they are holding?
• How do their cost structure compare with ours? Their
financial resources.
• How do they market their products and services?
• What are their strengths? With this, how can our company
gain?
• What are their primary weakness? How can our company
capitalize on them?
• Any new competitors entering business?
What is a small business? What contributions do
they make to our economy?
A small business is “One which is independently owned andoperated and not dominant in its field of operation.”
Small business economic contributions include:
• Employing of more than 50% of the nation’s private sectorworkforce —
• almost 90% of all businesses employ less than 20 workers.
• Creating 66% of all new jobs since the early 1970s.
• Producing 48% of the nation’s GDP and account for 53% of allsales.
• Growing by 800,000 to 900,000 new ventures each year.
Entrepreneurial Characteristics
The following are typical character and behaviorentrepreneurs need to run and operate a successfulbusiness:
• constant
• Creative
• Responsible
• questioning
• Goal-Oriented
• Independent
• Self-Demanding
• Self-Confident
• Risk-Taking
• Restless
• Action-Oriented
• Enthusiastic
Personal Goals and Capabilities
In order to be a successful entrepreneur you must have
an interest in being an entrepreneur and have a strong
commitment to a business and a lot of energy.
Make your goals practical and easily achievable.
Financial goals should specify how much money you
will earn and how quickly you will pay off
debts.(outstanding amount)
ROLE OF ENTREPRENEURSHIP IN
ECONOMIC DEVELOPMENT
• The industrial health of a society depends on the level of
entrepreneurship existing in it. A country might remain
backward not because of lack of natural resources or dearth
of capital [as it is many times believed] but because of lack
of entrepreneurial talents or it inability to tap the latent
entrepreneurial talents existing in that society. Entrepreneurs
historically have altered the direction of national economies,
industry or markets- Japan, Singapore, Korea, Taiwan to
name a few.
Do You Have the Potential to be a Successful
Entrepreneur?
Everyone has the potential to become an entrepreneur.But, if you do not feel you have the potential, and youhave the desire, you can strengthen your characteristicsand skills if you:
• Read articles and books about entrepreneurs
• Write about individuals who overcame obstacles toachieve success
• Watch films about business people, athletes, or otherswho are achievement-oriented
• Practice case studies that involve goal-orientedbehavior, creativity, and moderate risk-taking
Thank you
All