Entrepreneurship : An Overview

Department of Startup & Entrepreneurship

Swarrnim Startup & Innovation University | Gandhinagar | India
Mobile No (+91) 9408991263 | Email sumit.kumar@swarrnim.edu.in

Note: Author’s Copyright; Compiled and designed from different sources for classroom discussion only.
What is entrepreneurship?

Entrepreneurship is the creation of new

organizations (Gartner, 1985).
 Definitions of Entrepreneurship

• Entrepreneurship involves identifying

market opportunities and using
innovative approaches to exploit them.

J. Schumpeter (1934)
Definition…..

The field of entrepreneurship involves:

• the study of sources of opportunities
• the processes of discovery
• Evaluation, exploitation of opportunities
• and the set of individuals who discover,
evaluate, and exploit them.

Shane & Venkataraman (2000)

The Evolution of Entrepreneurship
According to Adam Smith (1860)…

“An Entrepreneur is an employer, master,

merchant but explicitly considered as a
Capitalist”.
Joseph Schumpeter (1965) point of view
for entrepreneurs ……

“An Entrepreneur is a person who creates and

exploit market opportunity through technical
and/or organizational innovation and carrying
out new combinations”.
Someone develops new ways of doing
things and identifies new opportunities
for business development.
Entrepreneur
VS.
Businessman
Characteristics of Entrepreneurs
 Characteristics of Entrepreneurs

Independent - They wish to be in charge and in complete control

Confidence – They believe in their ideas & have the confidence to carry
them through

Analytical – they collect all relevant information, analyse it, then make
decisions

Motivated – they have a high need for achievement & personal satisfaction

Ambitious – entrepreneurs do things differently; they come up with new

ways of doing/making things. They use their imagination to do this.

Ruthless – concerned with achieving their own aims at any consequence

Good communicator – being able to competently relate to suppliers,
customers, employees

Leader – get along well with people, able to accept criticism, they can get
people to work together on teams

Opportunistic – being on the look out for a gap in the market and seizing
the opportunity.

Realistic – they recognise they’re own limitations & seek advice when
needed

Pro – active- they are actively looking for gaps & ready to seize the
initiative, a person who is reactive will wait until someone else takes action
& then they act.
Entrepreneurial
Skills
 Entrepreneurial Skills

Inner control – taking control of your own situation, not wanting

other to influence your life.

Planning & setting goals – setting both short & long-term goals.
Plans must be drawn up to achieve these goals, i.e. SWOT
analysis of a firm

Innovation – applying new ideas to situations where they have

not been applied before. E.g. Brainstorming

Decision-making – An entrepreneur must be a good decision

maker, choices must be considered, information must be
analysed and then a decision made.
 Skills of an Enterprising Person

Human Relation – they must be able to manage people to achieve

individual behaviour that will enhance the effectiveness of the business.

Reality perception – seeing things as they really are and being aware of
employee’s and customers needs. There is little point in thinking that
customers are satisfied with the firm’s products if they are dissatisfied.

Networking – working with other people and establishing contacts in the

business community with people whose knowledge and expertise might
prove useful
Enterprising behaviors, attributes and skills
 Importance of enterprise in the community

It brings about an increased standard of living for the community

Local businesses will thrive as workers will have more disposable

money

People will then live in the area

Other firms will spend more money on raw materials, services

that the area provides

It creates new business, with increased employment

It also bring about increased revenue for the govt from the
success of firms, e.g. tax revenue
Entrepreneurial Process :Different Phases
The Key Elements of Entrepreneurship
 Role of Value Creation
Innovation
Process
Product
Transaction

Creating
Value Creation for Success of a
Competitive
Customers Venture
Advantage

Resources
 Role of Resources

RESOURCE
CHARACTERISTICS
RESOURCES Valuable
Sustainable
Rare
Tangible Competitive
Not easily replicable
Intangible Advantage
Non-availability of
substitutes
Opportunity Identification Process
 Why entrepreneurship
development is considered
to be the key priority area
for developed as well as
developing countries?
 Employment Status in the Country

Year Number of Jobs created

2015 1.55 Lakh

2016 2.31 Lakh

By 2025 (By current rate)

Number of Jobs Created Number of Job Seekers

30 Million 80 Million
Factors Affecting Entrepreneurial Growth
 Entrepreneurial Mindset

“Describes the most common

characteristics and thought
processes associated with
successful entrepreneurs”.
 How Entrepreneurs think
• Challenges are opportunities
• Perfection may hinder progress
• Analyze big things at the micro level
• Mistakes are healthy
• There is no magic to success, all things require effort
• Discipline is a pre-requisite
• Accept failures as a valuable life experience
• Challenge status-quo
 Characteristics of the
Entrepreneurial Mind-Set
• Determination and • High energy level
perseverance
• Creativity and
• Drive to achieve innovativeness
• Persistent problem • Vision
solving
• Passion
• Seeking feedback
• Independence
• Internal locus of control
• Team building
• Tolerance for ambiguity
 ENTREPRENEURIAL COMPETENCIES
Systematic Planning Self-confidence
Persuasive & Influencing Problem Solver
Risk takers Concern for Quality
Persistent Information seeker
Commitment Opportunity seeker
Concern for Efficiency Effective Monitoring
Creativity & Innovativeness Assertiveness
Concern for Other’s Welfare
 Entrepreneurial Mindset
Dealing with Failure: The Grief Recovery Process

• Loss
Orientation
Involves focusing on the
particular loss to construct
an account that explains
why the loss occurred.
• Restoration
Orientation
Involves both distracting
oneself from thinking about
the failure event and being
proactive towards
secondary causes of stress.
 Entrepreneurial Mindset
Dealing with Risk & Stress

• Risk bearing • Stress bearing

– Financial risk
– Career risk
– Family & Social risk
– Psychic risk
– Need to achieve
– Overstretched
– Immersion in business
– Everyday business
problems
 Entrepreneurial Mindset

• Negative Characteristics

– Overbearing need for control

– Sense of distrust
– Overriding desire for success
– Unrealistic externalized optimism
 What drives people to
become entrepreneurs?
Entrepreneurial Motivation
What Motivates People To Become
Entrepreneurs?
• Money
• Freedom of work
• Control
• Reputation & Recognition
• Do something new & path breaking
• Society
• Optimum use of your abilities
• Legacy
Or…..anything else?
 Types of Entrepreneurial Motivation

There are two types of Entrepreneurial Motivation:

– Extrinsic Motivation
– Intrinsic Motivation
 Intrinsic Motivation

Dhruv Lakra
Saloni Malhotra
Founder: Mirakle Couriers
Founder: DesiCrew
 Barriers to
Entrepreneurship
 Common Barriers to Entrepreneurship
Internal (Personality related)
Lack of Appropriate Education
Lack of Competence
Poor Risk taking
Low Self-confidence
Poor Leadership abilities
Low Energy Levels
Poor Management skills
Lack of Experience
Lack of Networks
Lack of Appropriate Guidance
External (Environment Related)
Finance
Societal acceptance
Family commitment
Competition & Market-related
issues
Legal & Regulatory Constraints
Government Bureaucracy
Corruption
Political Environment
Cultural Barriers