Entrepreneur

Entrepreneurship
Evolution of entrepreneurship
Role of entrepreneurship in economic development
Managerial vs entrepreneurial approach
Classification and types of entrepreneur
Characteristics and qualities of entrepreneur

Entrepreneur
An entrepreneur is someone who develops a business model acquires the necessary physical and human
capital to start a new venture and operationalizes it and responsible for its success or failure
According to Schumpeter:
Entrepreneurs are business leaders and not simple owners of capital, they are men of vision, drive and talent
who spot out opportunities
(classification and types ane characteristics and qualities pn lihaychya sobt)

Entrepreneurship:
Entrepreneurship is a dynamic process of creating incremental wealth
This wealth is created by individuals who assume measure risk in terms of equity and time
In layman’s terms- the process of setting up a business is called as entrepreneurship

Example:
Steve Jobs, co-founder of Apple computers, which produces Macs, iPods and iPhones, as well as Apple TV.

Evolution of entrepreneurship, it involves total 11 stages

1. Beginning of entrepreneurship and trade
Entrepreneurship started by creating obsidian and creating weapons from woods and stones like spears in
very beginning
2. Entrepreneurship and agricultural revolution
Later on agriculture is also considered as a entrepreneurship.
3. Expansion of trade routes from 2000 BCE onwards
Then people started exporting their products to foreign countries mostly through sea way and thus
entrepreneurship has started growing.
4. Entrepreneurship and inventory of money
Money is the most important aspect of entrepreneurship initially gold coins or metal coints were used
later on it got evolved and from paper money to cards and even now crypto currency is also used
5. Entrepreneurship and beginning of marketplace in medieval period
Then at the middle age time marketplaces for medieval started growing rapidly and which gave a proper
direction to entrepreneurship
6. Unexpected shifting of innovations
Later on henry ford and Thomas Edison started the innovations in entrepreneurship.
7. Explore the new world from 1550 to 1800
Then countries started more on more exporting their products in order to gain more profits because more
the export maximum will be foreign currency.
8. Entrepreneurship in 18000 onwards
9. Industrial age and entrepreneurship
After than industrialization has started.
10. Post world war II entrepreneurship
After world war II entrepreneurship has grown up rapidly because every country wanted to improve their
financial state to maximum export always gives a chance for that.
11. Modern entrepreneurship
And currently modern entrepreneurship is very much popular

Role of entrepreneurship in economic development

1. Generates employment
 2. Increase national income
National income is goods and service produced in country in one year and more export increases the
national income
3. Increase possibility for disposal of economic power
4. Leads to balanced regional growth
Development of entrepreneurship in rural areas leads to increase development in that area
5. Provides better standard of living
Entrepreneurship leads to development and which leads to better standard of living
6. Increasing income level
Entrepreneurship increases the income level and purchasing power of the people
7. Help in exports
Maximum export maximum the foreign currency
8. Economic development
Export helps in economical development of the country.
9. Generates capital
Entrepreneurship acts as middleman bw investor and enterprise and raise capital from various
sources
10. Effective utilization of natural resources
11. Helps in creation of market
It leads to creation of new market and new customers for new enterprise
12. Enhances per capita income
The availability of goods and services produced by entrepreneurs leads to increase national income,
which in turn increases per capita income of the people
13. Makes the country self reliant
14. It leads to innovation
Entrepreneurship lead to employing resources on new ideas and innovations
(sagle points explain kryche 2 2 line madhe)

Dimensions Entrepreneurial approach Managerial approach

Strategic orientation
Commitment of opportunity
Commitment of resources
Control of resource
Managerial structure
Reward philosophy
Growth mindset
Depends on his / her
perception of opportunity
Has a short timespan in
terms of opportunity
commitment
Entrepreneur is used to
having a resources
committed at periodic
intervals, in acquiring these
resources the entrepreneur is
forced to maximize resource
use
Under presence of limited
resources strives to rent
resources on an needed basis
Informal networks
compensation
They have desire to rapid
growth
When use of planning
system is strategic
orientation then managerial
approach is operant
Commitment is usually for a
longer period of time
Commitment of resources is
for total amount needed.
It has drive to own or
accumulate resources as
possible
Formalized and hierarchical
Promotion
slow

Classification and types of entrepreneur:

1. Based on innovations
 a. Imitating
Entrepreneurs that can adopt to newer technologies
New changes in foreign countries they imitate the same thing
b. Fabian
They are lazy and not interested in adapting new technologies.
If atmost need come to change to newer technology then only they will change to it.
c. Innovative
Create everything new by new technologies
They are aggressive in nature
They are capable of producing new product / new technology
Innovative countries
d. Drone
Such entrepreneurs exist in undeveloped countries
Will not change to newer technology

2. Based on stages of development

a. First generation
Someone who does not have family business
b. Classical
Concerned more about market and customers. Try to maximize the economic return such that
company survives without growth
c. Modern
Takes entrepreneurship based on current trends

3. Based on types of business

a. Business
These are soul operators
They have an idea and start the own business
b. Trading
They are not bothered about production
They only creates the products
c. Industrial
Manufacturing goods and identifying the need of market and accordingly generates the services
d. Social
Starts business for social cause
No profit

4. Based on gender
a. men
b. women entrepreneur
government of india has defined women entrepreneurs based on their participation in equity and
employment of business
women entrepreneur is the enterprise owned and controlled by women having minimum financial
interest of 51 percent of capital
and giving 51 percent of generated employment in the enterprise to women

reasons for slow growth of women entrepreneurs:

shortage of power
lack of security
unfavorable family conditions
dual role of women

e.g. falguni nayar

did her graduation from IIM Ahmedabad
spent 18 years at kotak Mahindra capital
 resigned to start her own company
founded nykaa in 2012
now a successful women entreprenuer

5. Based on scale of operation

a. Small scale
Turnover less than 1 cr
b. Medium scale
Turnover is between 1 cr to 5 cr
c. Large scale
Turnover is above 5 cr

6. Based on technology
a. Technical
Who develops new goods and concentrates more on production than marketing
b. Non technical
They are not concerned with technical aspects
Distribute and market
c. Professional
Starts the business with an intension to sell

7. Based on area
a. Rural-
Agriculture
Traditional business
b. Urban
It companies

8. Based on ownership
a. Founder pure
Who started the business for first time in his family
Ambani
b. Second generation
Mukesh ambani
c. Franchise-
McDonald’s
d. Owner manager-
When a person buys business from founder and runs already existing resources

9. Based on motivation
a. Pure
Motivated by economic rewards
b. Induced
Started the business due to some government incentives
c. Spontaneous
Who have believe in their skillset

10. Based on growth

a. Growth
Who starts the business for growth perspective
b. Super growth
Known by liquidity market share
Characteristics and qualities of entrepreneurs:
1. Self confident and optimistic
2. Flexible and able to adopt
3. Knowledgeable of market
4. Independent mindset
5. Energetic
6. Creative and need to achieve
7. Takes initiative
8. Responsive to changes
9. Dynamic leader
10. Able to get along with others
( sgle points explain kryche 2 2 line mdhe)

Corporate entrepreneurship:
Entrepreneurial action within established organization
It is method of stimulating and then capitalizing on individuals in an organization who thinks that something
can be done differently
It is important in an organization to keep entrepreneurial spirit for innovation and growth
This realization has revolutionized management thinking
Entrepreneurial endeavours consist of following four key elements
1. New business venturing
Creation of new business within an organization
2. Innovativeness
New product development, product improvements
3. Self renewal
Transformation of an organization through renewal of key ideas on which it is built
4. Proactiveness
Includes initiatives and risk taking which reflects in orientation and activities of top management

Social entrepreneurship:
There are three basic needs of human- food, clothing and shelter
Social entrepreneurs are working to find ways to increase quality of life in developing nation that often lack
in basic needs
It is all about recognizing social problems and achieving change by finding solutions
It focusses on creating social capital without measuring profit or loss
NGO
Identifies social problem, takes initiative and creates a path
Collects funds and makes the society satisfied with atleast basic needs