Chapter- 03

Entrepreneurship

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 An entrepreneur who does more with less
Owner of the boutique
SHAMSUN NAHAR
Fashion Craft

Today she owns two showrooms

in Dhanmondi and Malibagh and
a factory on the first floor of her
house in Mirpur.

Shamsun Nahar is a successful entrepreneur from Mirpur in Dhaka.

Starting out her boutique from a drawing room at home, she has
crossed many hurdles to come to where she stands today.

Source: fazlur.rahman@thedailystar.net 2
Why Should You Become an Entrepreneurship

The most exciting part of entrepreneurship is that you are

your own master.
➢ You will be your own boss and boss to other people
and make decisions that are crucial to the business’
success or failure.
➢ You will have the chance to put your ideas into
practice.
➢ You will make money for yourself rather than for
someone else.
➢ You may practice in every aspect of running a business
and learn and gain experience in a variety of disciplines.

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Why Should You Become an Entrepreneurship

➢ You will have the chance to work directly with your

customers.
➢ You will have the personal satisfaction of creating and
running a successful business.
➢ You will be able to work in a field or area that you
really enjoy.
➢ You will have the chance to build retirement value (for
example, by selling the business when you retire.)

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Entrepreneurship

The word “Entrepreneur” is derived from the French

word “Entreprendre” which means “to undertake” or
“enterprise” (Kent et at. 1982).
At that time, those who were in the military services,
they were known as entrepreneurs.
After that, the French extended the definition to
incorporate persons as entrepreneurs who engaged in
construction of roads, bridges, ports, building etc.
In the mid of 18th century, the concept of
entrepreneurship raised various debates among the
scholars and intellectuals.

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Entrepreneurship

Entrepreneurship is the act of being an entrepreneur,

who starts any economic activity for being self-
employed.
“Entrepreneurship entails bearing the risk of buying at a
certain prices and selling at uncertain prices.”
Ricardo Cantilon
“Entrepreneurship is any kind of innovative function that
could have a bearing on the welfare of an entrepreneur.”
J.A. Schumpeter

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Entrepreneurship

Entrepreneurship is a process of creating something

new and assuming the risks and rewards.
R. D. Hisrich, M. P. Peters, D.A. Shepherd

Entrepreneurship is the process of bringing together

creative and innovative ideas and actions with the
management and organizational skills necessary to
mobilize the appropriate people, money and operating
resources to meet an identifiable need and create
wealth in the process.
J. A. Pearce, R. B. Robinson and A. Mital

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Three Elements of Entrepreneurship

Profitable
opportunity

Elements of
entrepreneurship

Entrepreneurial
Resources
Team

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Three Elements of Entrepreneurship
1. Opportunity
▪ The most frequent cause of failure of new ventures, as
reported by Dun and Bradstreet (D&B) in its yearly
failure record, is lack of sales; the second is
competitive weakness.
▪ The effective entrepreneur is more likely to assume a
marketing orientation and look outward at a target
market to identify or confirm the presence of a
specific need or desired solution.
▪ Here the entrepreneur is focused on potential
customers and on seeking to understand their need.

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Three Elements of Entrepreneurship
2. Entrepreneurial Teams
▪ Technical competence
▪ Business management skills
▪ Endless commitment and determination
▪ A strong desire to achieve
▪ Orientation toward opportunities and goals
▪ Skills in calculating risks
▪ Problem solvers
▪ Ability to deal with failure
▪ Vision and the capacity to inspire

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Three Elements of Entrepreneurship
3. Resources
▪ The third element in new venture
entrepreneurship involves resources- money and
time.
▪ A vital ingredient for any business venture is the
capital necessary to acquire equipment, facilities,
people and capabilities to pursue the targeted
opportunity.
▪ Time is the most critical resource, combined with
determination, lead to new venture’s success.

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Entrepreneur
Entrepreneur is a person who is action-oriented and
highly motivated to take risk and to achieve such a goal
that brings about a change in the process of generating
goods or services.
In economics and commerce, an entrepreneur is an
economic leader who possesses the ability to
recognize opportunities for the successful
introduction of new commodities, new techniques, and
new sources of supply, and to assemble the necessary
plant and equipment, management and labor force and
organize them into running concern.

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Entrepreneur
Entrepreneur is an innovator of new combination in the
field of production.
J.A. Schumpeter
The entrepreneur is the one who undertakes a venture,
organizes it, raises capital to finance it and assumes all
or a major portion of the risks.
John G. Burch

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Characteristics of an Entrepreneur
Being an entrepreneur requires specific characteristics
and skills that are often achieved through education,
hard work, and planning.

1. Risk taker: Entrepreneur is a person who identifies

the nature of risk and takes decision. Businesses face risk.
Entrepreneurs minimize risk through research, planning,
and skill development.
“No risk, no gain.”

2. Profit maker: Entrepreneur is the individual who

establishes and manages a business for the principal
purpose of profit and growth.
“Profit is the prime motive for many entrepreneurs.”

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3. Achievement motivator: David C. McClelland has
initiated this concept of entrepreneur by calling him “a
person with a strong desire for achievement.” Entrepreneurs
have to have deep- rooted need for achieving their goals.

4. Capital provider: Capital is the life blood of any

business. Entrepreneurs invest capital to the business and
assembles necessary resources for the operation of the
enterprise.
5. Innovator: Entrepreneur is an innovator of new
combination in the field of production. Innovation is
perceived by the Schumpeter as an action that introduces a
product, a new quality, a new method of production, a new
market and a new organization.

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6. Persistent
True entrepreneurs face bureaucracy, make mistakes,
receive criticism, and deal with money, family, or stress
problems. But they still stick to their dreams of seeing the
venture succeed.

7. Self-confident
Entrepreneurs believe in themselves. Their self-confidence
takes care of any doubts they may have.

8. Problem Solving
It is important that an entrepreneur should be able to
solve problems and not avoid them. A formal problem-
solving model helps entrepreneurs solve problems on a
logical manner.

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Problem solving model consists of six steps:

a) Define the problem

b) Gather information
c) Identify various solutions
d) Evaluate alternatives and select the best option
e) Take action
f) Evaluate the action taken

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9. Leadership
Leadership is the basic quality of an
entrepreneur. Leadership is the
process of influencing and supporting
others to work enthusiastically
toward achieving objectives.

10.Teambuilding
An entrepreneur should have an
ability to build a team. A team is a
group of individuals with a common
purpose, that is focused and aligned
to achieve a specific task or set of
outcomes.

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The Metal (Pvt.) Ltd. is the pioneer and leading
company of mechanized cultivation in Bangladesh. The
Metal (Pvt.) Ltd was established in 1987.
The owner of the company is Engr. Sadid Jamil. Let’s
watch a video….
https://www.youtube.com/watch?v=IQ4W2p1JcWs

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 Entrepreneurial Core Competencies
Sl Core Entrepreneurial Activities
no Competencies
1. Initiative Does things before asked for or forced by events, and
acts to extend the business to new areas, products, or
services.
2. Perceiving Identifies business opportunities and mobilizes necessary
opportunities resources to make good an opportunity.
3. Persistence Take repeated or different actions to overcome
obstacles.
4. Information Consults experts for business and technical advice.
gathering
5. Concern for States desire to produce or sell a better quality product
quality work or service. His performance compares favorably with
that of others.
6. Commitment to Makes a personal sacrifice or expends extraordinary
contractual effort to complete a job. Accepts full responsibility in
obligations completing a job contract on schedule. Pitches in with
workers, or works in their place, to get job done. Shows
utmost concern to satisfy customer. 20
Sl Core Entrepreneurial Activities
no Competencies
7. Efficiency Finds ways and means to do things faster, better, and
orientation economically.
8. Planning Various inter-related jobs are synchronized according to
plan.
9. Problem solving Conceives new ideas and finds innovative solutions.
10. Self-confidence Makes decisions on his own and sticks to them in spite of
initial setbacks.
11. Expertise Possesses technical expertise in area of business, finance,
marketing, and so on.
12. Self- critical Aware of personal limitations but tries to improve upon
them by learning from his past mistakes, or experiences of
other and is never complement with success.
13. Persuasion Persuades customers and financiers to patronize his
business.

14. Use of influence Develops business contacts. Retains influential people as

strategies agents. Restricts dissemination of information in his
possession.
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Sl Core Entrepreneurial Activities
no Competencies
15. Monitoring Develops a reporting system to ensure that work is
completed and that it meets quality norms.
16. Credibility Demonstrates honesty in dealing with employees,
suppliers and customers even if it means a loss of
business.
17. Concern for Express concern for employees by responding promptly
employee to their grievances.
welfare
18. Impersonal Places long-term goodwill above short-term gain in a
relationship business relationship.
19. Expansion of Reinvests a greater portion of profits to expand capital
capital base base of the firm.
20. Building product Concerned about the image of his product among
image customers.

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Importance of Entrepreneurship
➢ Proper utilization of resources
➢ Industrialization
➢ Creation of employment opportunities
➢ Use of technological possibilities
➢ Changes the traditional outlook and values
➢ Decrease unemployment
➢ Economic Independence

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 Entrepreneurs Vs. Managers

Entrepreneurs and managers are taken as synonyms but

they are two different concepts with different meanings.
❑ Entrepreneurs are highly motivated persons who initiate
new ventures.
❑ Managers are employed persons who manage the
ventures.
Entrepreneurs focus on Managers focus on
innovation, opportunities, planning, organizing,
challenges coordinating, control.

But in many new ventures, entrepreneurs act as managers.

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Entrepreneurs Vs. Managers
Area of Entrepreneurs
Operation
1. Status Owner of the venture or the holder Servant of the venture who is a
of the patented good or service.
2. Risk taking Assumes all type of risk. He is not a
gambler but he faces uncertainty.
3. Rewards Profit that is uncertain.
Independence and psychic
satisfaction.
4.Orientation Self-oriented, action-oriented, highly
motivated for achievement.
5. Innovation Innovate new ventures with the
vision and values of the
entrepreneur to meet the changing
needs of the market
Managers
salaried person.
Doesn`t take any risk. He is
responsible only for systematic
risk.
Salary that is certain
Power-oriented while work
along with others.
Executes the innovation
developed by the entrepreneur.
Managers translate the
entrepreneur's ideas into
practice.
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Intrapreneurship
Intrapreneurship is the entrepreneurship within an
existing organization. This definition implies that
new initiatives, creativity and dynamism that
increase the organizational competence is
intrapreneurship.

According to Skinner and Ivancevich, “Intrapreneur is an

entrepreneurial person employed by a corporation and
encouraged to be innovative and creative.”

Example: Chief Executive Officer (CEO), Executive

Director (ED) etc.

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Difference between Intrapreneurship and Entrepreneurship
Issue of Intrapreneurship Entrepreneurship
difference
1. Definition Intrapreneurship is the Entrepreneurship is the
entrepreneurship within an existing dynamic process of creating
organization. incremental wealth.
2. Core To increase competitive strength and To innovate something new of
objective market sustainability of the socio economic value.
organization.
3. Risk Bears moderate risk. Bears all types of risk.

4. Status Organizational employee expecting Free and sovereign person

freedom in work. doesn’t bother with status.
5. Decisions Collaborative decisions to execute Independent decisions to
dreams. execute dreams.

6.Time Self imposed or organizationally There is no time bound.

orientation stipulated time limits.

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আড্ডার স্বপ্ন থেকে সফল উক্যাক্তা
 তিন বন্ধুর তিদ্ধান্ত তিল, ‘আমরা চাকতর করব না; চাকতর
দেব’
 িাাঁরা তিতর করছিন ‘রযাটি-আই’ ব্র্যাছের টি-শাটট ও
দ াছলা দেতি
 কািার ও ভারছির বাজাছরও দ াঁছি দেছি

Read detail in the following link:

https://www.prothomalo.com/bangladesh/article/1574086/%E0%A6%86%E0%A6%A1%E0%A7%8D%E0%A6%A1%E0%
A6%BE%E0%A6%B0-%E0%A6%B8%E0%A7%8D%E0%A6%AC%E0%A6%AA%E0%A7%8D%E0%A6%A8-
%E0%A6%A5%E0%A7%87%E0%A6%95%E0%A7%87-%E0%A6%B8%E0%A6%AB%E0%A6%B2-
%E0%A6%89%E0%A6%A6%E0%A7%8D%E0%A6%AF%E0%A7%8B%E0%A6%95%E0%A7%8D%E0%A6%A4%E0%A6%B
E?fbclid=IwAR0OZe12-l6UykODX1I6i6PBctIp-CUfuv-5ee_UoYLEvU4wgMr6M2-QwX0

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 Home work for discussion

Find out the limitations or problems

faced by the entrepreneurs in Bangladesh.

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