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