UNIT 1

INTRODUCTION TO ENTREPRENEURSHIP

Definition of an entrepreneur

 An entrepreneur is a person who identifies a business opportunity, harnesses

and obtains the resources necessary to initiate a successful business activity.
 The entrepreneur implements the idea
 Undertakes to operate the business
 An entrepreneur is therefore a central key individual in the society who makes
things happens for economic development.

Entrepreneurship meaning
 In the broader sense entrepreneurship refers to the means of stimulating
innovative and creative undertakings for a better business community or world.
 The act or process of identifying business opportunities and gathering the
necessary resources to initiate a successful business activity.
 Entrepreneurship is a French word meaning to undertake and focuses on a business
enterprise
 Entrepreneurship can exist in any situation – therefore it is the creation of
values through establishing a business enterprise.
 Entrepreneurship means having an idea of one’s own and trying to
implement the idea to create values on it.
 Entrepreneurship is a term which encompasses what entrepreneurs do i.e
□ Identifying a business opportunity of a particular demand
□ Look at the opportunity as a process of creating, something that did not exist.
□ Constantly searching/ harnessing ones environment and resources to
implement the activities.
□ Creating a totally new product and using it in as new.
 Entrepreneurship there is the practice of starting a new business or
revitalizing existing businesses in response to identifying opportunities.
Entrepreneurial Traits:

13 traits of an entrepreneur
Here are 13 qualities that make an entrepreneur:

Self-motivated
Open-minded
Curious
Proactive
Health-conscious
Creative
Persuasive
Brave
Team-oriented
Youthful
Humble
Punctual
Humorous

1. Self-motivated
Self-motivated describes someone who can motivate themselves rather than relying on
another person. Self-motivated individuals use discipline and passion to complete essential
tasks on time, limiting procrastination and producing results. Entrepreneurs must have a
level of self-motivation to overcome challenges and keep up with their business practices.

For example, an entrepreneur might use their self-motivation to send out emails to clients
after having a challenging client experience that resulted in a loss of business.

2. Open-minded
Someone open-minded is willing to accept or learn about new ideas and opportunities.
That’s why open-mindedness is such an essential trait for an entrepreneur. If they remain
open to new business opportunities, they could find success in a completely different way.

For example, an entrepreneur starts a workout-app company wherein gym-goers can

connect with personal trainers. This idea proves unsuccessful, and so they try to start a
social media advertising consultant firm. This business idea helps generate over $5,000 in
revenue during the first two months of operation. Open-mindedness could mean finding
success in an area you didn’t want to consider.
3. Curious
Similar to open-mindedness, entrepreneurs should also have high levels of curiosity. A
curious mind can produce unique and innovative ideas that provide solutions to save a start-
up company.

For example, an entrepreneur creates an online recruiting network that allows companies
and recruitment agencies to connect with qualified job candidates. They wonder if business
would improve by marketing their site toward colleges and universities with career center
services for upcoming graduates. This idea helps jumpstart site revenue while also creating
a primary customer base.

4. Proactive
When an entrepreneur is proactive, they cannot only anticipate change but also take
preemptive measures that help them conquer those changes. For example, a self-employed
HR consultant creates their own online course and eBook to predict a rise in competition
across the industry.

5. Health-conscious
Entrepreneurs tend to lead healthy, balanced lifestyles so they can have the energy to
operate their business ventures. For example, an entrepreneur might make a point to work
out every morning, or they might take a day off to recharge after a long work week.

6. Creative
Another trait of entrepreneurs is creativity. Regardless of their business’s industry, they
have to come up with new ideas and solutions to guide their company forward. For
example, an entrepreneur comes up with a unique marketing idea where they record a video
series about entrepreneurship to drive traffic to their website.

7. Persuasive
Entrepreneurs should have a level of persuasiveness to convince investors to donate funds
and to persuade customers to buy their products or services. For example, an entrepreneur
prepares a presentation to give to potential investors about their projections for the
company’s growth within the next five years.

8. Brave
Bravery is another entrepreneurial trait from which you can benefit. Entrepreneurs regularly
take risks from the moment they decide to start their business, and they must have the
courage to accept criticism. For example, an entrepreneur puts in their two-week notice at
their nine-to-five job before operating their start-up full-time.

9. Team-oriented
Entrepreneurs might start as sole-proprietors, but with the right business tactics, they could
soon have several employees working under them. That is why it is so crucial for
entrepreneurs to be team-oriented.

For example, an entrepreneur takes on three other employees to help with sales calls and
content creation. They hold daily meetings, listening to their employees’ concerns and
involving them in decisions.

10. Youthful
Regardless of age, entrepreneurs should have a young perspective to keep evolving their
business and combat working odd hours. For example, an entrepreneur spends the evening
after meeting with clients all day to work on a new software application.

11. Humble
Entrepreneurs typically have a humble attitude because they understand the work that goes
into creating and maintaining a successful business and how success can drop. For example,
a successful entrepreneur makes a point to respect others and show gratitude for their
business.

12. Punctual Another excellent trait for entrepreneurs is showing up early to meetings and
events. For example, an entrepreneur arrives 20 minutes early to a lunch meeting with a
prospective client.

13. Humorous
Humorous entrepreneurs can laugh at their mistakes and move on from them. For example,
when an entrepreneur sends an email addressed to the wrong client, they remedy the
situation by sending a second response before getting back to work.

Entrepreneurs vs. Managers

Entrepreneurs Start Companies, Managers Run Them.

Entrepreneurs are the dynamic force behind the planning and launching novel business
ventures. They are involved in all aspects of their business throughout its lifespan,
beginning with the raw startup stage, when the business is little more than an idea. The
main difference between entrepreneurs and managers is their role in the organization.

An entrepreneur is the company owner, while a manager is the company’s employee.

Entrepreneurs take risks, particularly financial ones, while managers are not susceptible to
business-related risks. This blog will cover the significant differences between
entrepreneurs and managers.
Difference between Entrepreneur and Manager

Entrepreneur Manager

Job Role Establishing a company Running daily operations

Status in
the
Owner Employee
organizatio
n
Entrepreneurs focus on Managers are responsible for
thinking big, tapping carrying out business plans as
Job Focus
unexplored territories, and directed and meeting the
bringing change. defined targets.
Monetary The profit obtained from Salary earned for managing
Benefits business management daily business operations
Organizational
achievements work as Power and perhaps
Motivation
motivation for compensation
entrepreneurs
A manager’s decision-making
An entrepreneur’s decisions
is calculative, as they are
Decision are driven by inductive
based on deductive logic,
making logic, courage, and
information gathering and
determination.
advice.
A manager maintains the
The main driving force of
current state of affairs but is
Creativity an entrepreneur is creativity
prompted to get innovative
and innovation
and think out of the box
Specializati Any enterprising individual Managers are trained to
on can become an perform a set of tasks. They
 entrepreneur. They do not are specialists in their
need to be specialized in any domain.
particular trade.

Difference between Entrepreneurship vs. Entrepreneur

Entrepreneur

An entrepreneur starts a new business, gets most of the rewards, and takes most of the risks.
Entrepreneurs are typically trailblazers, offering fresh ideas, goods, services, and
business procedures. Entrepreneurs are very important in every type of economy
because they can initiate the anticipate needs and bring great new ideas to the market.
Entrepreneurship that succeeds in entrepreneurial risk is rewarded with income,
fame, and opportunities for future growth. Entrepreneurial failure leads to loss of
stakeholders and a loss of market presence.

Entrepreneurship

Entrepreneurship is the art of starting a business, essentially a new firm that offers a
unique product, process, or service. It is possible to describe it as a creative activity. An
entrepreneur sees everything as a chance and is biased when making decisions to take
advantage of it.

An entrepreneur is a developer or a designer who develops new ideas and business

procedures in response to market demands and personal interests. Certain political
economists consider leadership, management competence, and team-building skills are
some vital attributes of an entrepreneur. It is critical to have managerial skills and excellent
team-building talents to be a successful entrepreneur. Entrepreneurs with leadership
qualities are more likely to succeed.

An entrepreneur is also an innovator who brings something new into a company, economy,
or society. It could be a new manufacturing method, a new product, a new material source,
a new market, or any other similar innovation. As a result, an entrepreneur is a creator, a
borrower, a buyer, and so on.

S. Entrepreneur Entrepreneurship
No.

1. He is the founder/initiator of Entrepreneurship is how an

 a company and has a vision
for it.
2. To help society, an
entrepreneur can create
single or numerous
enterprises.
3. An entrepreneur is a person
or a group of people who
tries to assist a social cause
by introducing products,
services, and business
scenarios relevant to the
cause.
4. Entrepreneurs are critical
thinkers who bring new ideas
and inventive solutions to
make the world better.
5. Entrepreneurs are the people
who come up with the idea
for a new business and try to
run it while considering the
risk.
6. An entrepreneur is a leader
who stimulates employees
and gives them guidance to
put their efforts into multiple
aspects of the business.
7. In a nutshell, an entrepreneur
is the one who starts anew
business mostly for profit
purposes but in some cases, it
can be for the non-profit
purpose also.
entrepreneur starts a new firm under
his direction and vision.
The entrepreneurship process can be
used on a single project or a series
of ventures and it can help in
creating jobs.
The process of turning ideas into
reality is known as entrepreneurship.
Entrepreneurship establishes a path
for people to follow to achieve a
goal.
Entrepreneurship allows innovators
and critical thinkers to think outside
the box to develop new and creative
solutions to social problems.
Entrepreneurship is a method for
assisting entrepreneurs in starting a
new firm. Entrepreneurship also aids
them in anticipating the risks and
possibilities that their businesses can
face in the future.
Entrepreneurship not only assists
entrepreneurs in coordinating their
efforts and resources, but it also
assists them in managing their daily
chores with priority efficiently.
In a nutshell, entrepreneurship lays
out a path for the entrepreneur to
walk along and begin the process of
launching their business idea.
Entrepreneurial Decision Process

Entrepreneurs need to make various decisions for their business he/she needs good
decision making skills because of the Market problem and defending the market situation.
Entrepreneurs in decision making the identity alternative and then select the best course
of action to solve specific problems in the business.

The entrepreneur needs to follow the steps of the entrepreneurship decision process.

1. Identification of problem or opportunity.

2. Generate alternative solutions.
3. Analyze the alternative solutions.
4. Selection of the best alternative.
5. Implementation of the alternative.
6. Review the performance.

1. Identification of problem or opportunity (Entrepreneurship decision process)

In entrepreneurship the first process of identifying opportunities or problems.The

entrepreneurial decision process Both are equal to arising opportunity and Problem if you
are firm under various arising problems then you identify a particular problem and
opportunities as same.

Step by step make decision problems and find opportunity following are the steps to
follow.

Problem Opportunity

 Listen to your potential clients and past

 Identify of the problem
leads

 Search for alternatives

 Listen to your customers
way

 Weighing of
 Look at your competitors
alternatives

 Decide a choice  Look at industry trends and insights

  Evaluate of the all
results

2. Generate alternative solutions

Identify opportunities and problems. After first process is completed then the second
decision process generates alternative solutions. You must be innovative to choose
alternative ideas. That’s why this step is an innovative step to make entrepreneurs’
decisions for particular taking decisions.

How to find innovative ideas in particular problems or opportunities. Here we are

considering categories to choose alternative solutions.

 Take solutions from the same decision made previously. It may be a good idea to use
the work you have done in the past to make an existing decision.

3. Analyze the Alternative Solutions

The third step is to analyze those ideas alternatively you choose for your particular
purpose. You must analysis all areas of these ideas for beneficial in your organisation.

4. Selection of the best alternative

When you generate alternative solutions and analysis, Then Fourth steps of
entrepreneurship in deciding the best alternative decision.

When you choose the best alternative per requirement, it definitely benefits you.

5. Implementation of the alternative(Entrepreneurship decision process)

Selection of the best alternative in the entrepreneurship decision process then the fifth
process implements these alternatives in your purpose for getting more benefits.

7. Review the performance.

In the entrepreneurship decision last process review the performance means that all
reviews of you are choosing these alternatives. Look At the actual performance and
previous performance what are differences between them.
Role of Entrepreneurship in Economic Development
 The economic growth, the improved quality of life, the equitable distribution of
resources and the capacity of the economy to deal with economic, social and
environmental development.
 Main objectives of national development include:
□ Provide basic needs to every citizen:- food, shelter, health, security,
education, clothing
□ Elimination / Reduction of poverty: reduce rural-urban migration
□Provision of opportunities for employment and personal advancement
□ Trying to narrow the income differences between the rich and the poor.
i) Employment Creation:
ii) Promotion of National Productivity: This is through production of goods and
services within the country and therefore they contribute to the Gross
Domestic Product (GDP)
iii) Raising Standards of Living: It’s measured by the capacity of people of a
country to buy goods and services. Entrepreneurs contribute by employing
people and giving them salaries or wages to buy their necessities.
iv) Conservation of foreign Exchange: Entrepreneurs produce goods and
services that are needed by people and reduction in importing those goods
and hence the government saves foreign exchange.
v) Export Promotion: Entrepreneurs who produce goods and services for export
earn vi)Conservation Agent: Entrepreneurs can contribute to conservation
and utilization of resources e.g. manufacturing a Jiko that uses sawdust
instead of wood charcoal
vii) Rural development which in effect.
  Promotes change to the formal sector from informal sector
Equitable development
 Reduced rural-urban migrations.
viii) Development of technology through
 establishment of research institutions ii) education systems
ix) Government revenue
 Through taxes. From domestic borrowing (TBs)
x) Facilitating community development through
 Establishment of small businesses ii) Participation in
community dev.
Projects
xi) Providing a positive role model and facilitating.
 Competition between domestic entrepreneurship and
imported Stimulating dev. Of entrepreneurship.
xii) Reducing dependence on imported goods and services.
xiii) Stimulates competition through
 Quality production methods are adopted
 Quality products are produced
 Variety goods and services are produced.
xiv ) Facilitated development of the financial sector through which;
 Capital accumulation is possible through savings
 Loaning is facilitated
 Development of the capital market.