Program: BBA, Semester IV, Year 2

Subject Code- 401:

Entrepreneurship

Unit No. 1
Lecture No. 2

Dr. Shahid Amin

Asst. Professor, School of Management
Outline
• Prerequisite of topic
• Objective
• Concept of Entrepreneurship
• Entrepreneurship and Economic Development
• SELO
• References
Prerequisite of topic:

Students must have understanding of basic concepts of Business.

 Objective:

 To understand the concepts of Entrepreneurship, its contribution

Entrepreneur:
An innovator or developer who
recognizes and seizes
opportunities ; converts those
opportunities into
workable/marketable ideas ;
adds value through time ,
effort, money , or skills;
assumes the risks of
competitive market place to
implement these ideas ; and
realizes the rewards from
these efforts
Entrepreneurship
Most of what we hear about entrepreneurship, says Americas leading
management thinker , is all wrong. It is not magic , it is not
mysterious ,and it has nothing to do with genes . It is a discipline and
like any discipline , it can be learned.

Peter F. Drucker
Innovation and Entrepreneurship
 Entrepreneurship Theory

 Kuratko and Hodgetts (2004) noted that in the simplest

of theoretical forms of studying entrepreneurship,
entrepreneurs cause entrepreneurship.

That is, E=F(e) states that

Entrepreneurship is a function of the entrepreneur
 What is Entrepreneurship ?

Entrepreneurship: A Mindset

• Entrepreneurship is more than the mere creation of

business:
– Seeking opportunities
– Taking risks beyond security
– Having the tenacity to push an idea through to reality

• Entrepreneurship is an integrated concept that

permeates an individual’s business in an innovative
manner.
 What is Entrepreneurship ?

“It is the process of creating something new, with value,

-by devoting the necessary time and effort

-assuming the accompanying financial, psychic, and
social risks, and
-receiving rewards of monetary and personal satisfaction
and
independence”

- Hisrich and Peters, Entrepreneurship

CREATING VALUE

UNIT-1 10
 What is Entrepreneurship ?.....

A pursuit of the opportunities regardless of the

resources.

Harvard Business School

THE OPPORTUNITY
 What is Entrepreneurship ?.....

A pursuit of the opportunities regardless of the

resources.

Harvard Business School

LEVERAGING
RESOURCES
 What is Entrepreneurship ?......

Opportunity identification

Leveraging resources

Value creation
Entrepreneur vs Entrepreneurship
 Entrepreneur vs Entrepreneurship

 while an Entrepreneur is an individual who creates

and establishes a business,

 entrepreneurship is the process adapted by an

entrepreneur to do so.
Entrepreneur and Entrepreneurship
Entrepreneur Entrepreneurship

Refers to a person Refers to a process

Visualizer Vision
Creator Creation
Organizer Organization
Innovator Innovation
Technician Technology
Initiator Initiative
Decision-maker Decision
Planner Planning
Leader Leadership
Motivator Motivation
Programmer Action
Risk taker Risk taking
Communication Communication

Administrator Administration
 Entrepreneurship and
Economic Development
 Economic Development:

 The word development is used in so many ways that its precise

connotation is often baffling.

 Nevertheless, economic development essentially means a

process of upward change whereby the real capita income of a
country increases over a longer period of time.
• People have began to realize that for achieving the goal of economic
development, it is necessary to increase entrepreneurship both
qualitatively and quantitatively in the country.

• Schumpeter (1934) , Parson and Smelser (1956), Harbison (1965) etc.

highlight the greater role of entrepreneurs and entrepreneurship in
economic development.
 WHAT CAUSES ECONOMIC GROWTH?

•Economic growth is effect, entrepreneur is the cause. Entrepreneurs

explore opportunities, convert ideas into viable business proposition and
provide new products and services to the society by bringing together and
combining various factors of production. They change life style of the
people.
 An Integrative Model of Entrepreneurial
Inputs and Outcomes

Source: Michael H. Morris, P. Lewis, and Donald L. Sexton, “Reconceptualizing Entrepreneurship:

An Input-Output Perspective,” SAM Advanced Management Journal 59, no.1 (Winter 1994): 21–
31.
 WHAT ENTREPRENEURS DO?

Poverty Taxes/Govt. Higher Productivity &

Alleviation Revenues Innovations

EMPLOYMENT & INCOME GENERATION

Output &
Wealth ENTERPRISES
Exports

ENTREPRENEURS
Better standards of living :

Energysquare – a startup from France, has

conceived a rather interesting technology that
allows almost any device to be wirelessly
charged.

•LG moves towards high end, energy-efficient

Acs-
Wipro Limited is a provider of IT services, including Systems
Integration, Consulting, Information Systems outsourcing, IT-
enabled services, and R&D services. Wipro entered into the
technology business in 1981 and has over 160,000 employees and
clients across 110 countries.
It was incorporated on December 29, 1945, in Mumbai by Azim
Premji as 'Western India Vegetable Products Limited, later
abbreviated to Wipro.
19 startups backed by Ratan Tata
Former Tata Sons chairman Ratan N
Tata has invested in over 30 startups.
Among these, there are several
technology-based startups too. Tata
has made all these investments in his
personal capacity.
Paytm, Ola, Xiaomi, Snap Deal, Urban
ladder, UrbanClap, Car Dekho, Lencart
etc.
Balanced Regional Development :

Dispersal of economic power:

Promotes Capital Formation:

Increasing Gross National Product and Per Capita Income:

Food for thought:

Underdevelopment is not because of the lack of natural

resources but because of the deficiency in the combining
process itself that is undertaken by entrepreneurs.
SELO

 Understand the the concepts of Entrepreneurship, its contribution

and dark side
References:

 Entrepreneurship by Dr. S. S. Khanka,

 Entrepreneurship by Robert Hisrich