ENTREPRENEURSHIP CONCEPT AND

FUNCTIONS

EntrepreneurMEANING:Entrepreneur is an innovative person who

maximizes his profits by following new strategies or venturing into new products or services.

They are ambitious leader who combines land, labor and capital to often create and market new goods or services.

Wage Employment Vs Entrepreneurship

Wage EmploymentWork for OthersFollow InstructionsRoutine JobEarning is fixed, nevernegativeDoes not create wealthCan choose from-Government servicePrivate Sector

EntrepreneurshipOwn BossMake own plansCreative activityCan be negative

sometimes,generally surplusCreates Wealth,

contributes to GDPCan choose from-

Industry Trade or Service Enterprise

Entrepreneurs V. IntrapreneursEntrepreneurs are people that notice

opportunities and take the initiative to mobilize resources to make new goods and services.

Intrapreneurs also notice opportunities and take initiative to mobilize resources, however they work in large companies and contribute to the innovation of the firm.

Intrapreneurs often become entrepreneursThe major difference being that an

entrepreneur risks his own money where as an intrapreneur works with his employer’s money.

Difference between Entrepreneur, Entrepreneurship and Enterprise

Entrepreneur Entrepreneurship Enterprise Person Process or Philosophy Object

Characteristics of an Entrepreneur 1. Mental ability 2. Clear objectives 3. Business secrecy 4. H.R. ability 5. Communication

ability 6. Technical

knowledge 7. Achievement–

oriented 8. Ethical

 

9.1 Motivator 10. Self– confident 11. Long term

involvement 12. High energy level 13. Problem solver14.Initiator 15. Goal setter 16. Risk taker

QUALITIES REQUIRED FOR AN ENTREPRENEUR

An effective entrepreneur requires certain basic qualities, which can be listed as follows.

Innovative thinking and farsightedness. Quick and effective decision making skill. Ability to mobilize and marshal resources. Strong determination and self confidence. Preparedness to take risks. Accepting changes in right time. Access and alertness to latest scientific and

technological information

Who can be an Entrepreneur? 1. Who feels the need for achievement 2. Who can take moderate risks 3. Who possess skills in organizing 4. Who can capitalize on opportunities 5. Who has some financial strength – On his own or

borrowed 6. Who has ability to work hard 7. Who has desire for responsibility 8. Who has a clear perception of probability of success 9. Who gets stimulation by feedback 10. Anyone – He can be male, female or even a Eunuch 11. Who does not have previous experience

Steps in the Entrepreneurial Process

1. Discovery

2. Concept Development

3. Resourcing

4. Actualization

5. Harvesting

Steps in the Entrepreneurial Process1. Discovery: The stage in which the entrepreneur generates

ideas, recognizes opportunities, and studies the market

2. Concept Development: A detailed proposal describing the business idea

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

4. Actualization: The stage in which the entrepreneur operates the business and utilizes resources to achieve its goals/objectives.

5. Harvesting: The stage in which the entrepreneur decides on venture’s future growth, development, or demise