Entrepreneur &

Entrepreneursh
ip
Unit-1

Meaning & Definition

Meaning:
1.An entrepreneur is a person who has possession of a
new enterprise , venture or idea, and assumes significant
accountability for the inherent risks and the outcome .
They are an ambitious leader who combines land , labour ,
and capital to often create and market new goods and
services.
2.Entrepreneur are the people who see the need gap
hence capitalize on the same . An entrepreneur grabs such
novel ideas , develop it and pursued its success .
Entrepreneur are self-starters and doers who have
organize and build successful enterprises.

Definition:

An entrepreneur is a person who buys factor

services at certain prices with a view to selling
its product at uncertain price .
--by Richard
Cantillon
Entrepreneurs are those people who have the
ability to see and evaluate business
opportunities , together with the necessary
resources to take advantage of them and to
initiate appropriate action to ensure success .
--by International Labor Organization

Characteristics of Entrepreneur
Characteristics of
Entrepreneur
Inner Drive to succeed
Risk-Bearing
Perseverance
Analytical Ability of Mind
Stress Takers
Ability to Mobilise Resources

Creative
Leadership

Independence
Locus of Control
Flexibility
Confronting Uncertainty
Innovators
Self-Confidence
Communication Skills
Business Planning

Types of Entrepreneurs

1. Based on Functional Characteristics

a. Innovative Entrepreneur
b. Initiative or Adoptive Entrepreneur
c. Fabian Entrepreneur
d. Drone Entrepreneur
2.Types of Business
e.
f.
g.
h.
i.
j.
k.

Business Entrepreneur
Trading Entrepreneur
Industrial Entrepreneur
Corporate Entrepreneur
Agricultural Entrepreneur
Retail Entrepreneur
Service Entrepreneur

 Innovative Entrepreneur
Inventions like the introduction of a small car Nano by
Ratan Tata, organized retailing by Kishore Biyani, making
mobile phones available to the common may by Anil
Ambani are the works of innovative entrepreneurs.
Fabian Entrepreneur
The dictionary meaning of the term fabian is a person
seeking victory by delay rather than by a decisive battle.
Fabian entrepreneurs are those individuals who do not
show initiative in visualizing and implementing new ideas
and innovations wait for some development which would
motivate them to initiate unless there is an imminent
threat to their very existence

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3. Use of Technology
a. Technical Entrepreneur
b. Non-Technical Entrepreneur
c. Professional Entrepreneur
4.Growth
d. Growth Entrepreneur
e. Super-Growth Entrepreneur
5.Area
f. Urban Entrepreneur
g. Rural Entrepreneur

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6.
a.
b.
7.
c.
d.
8.
e.
f.
g.

Gender and Age

Men Entrepreneur
Women Entrepreneur
Level of Motivation
Pure Entrepreneur Ex Dhirubhai
Ambani,JamshedjiTata
Induced Entrepreneur
Capital Ownership
Private Entrepreneur
State Entrepreneur
Joint Entrepreneur

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9. Entrepreneurial Activity
a. Novice Entrepreneur-it can also be a 50 year
old with 25 year experience in industries.
b. Serial Entrepreneur-devote to one venture
but ultimately start many.
c. Portfolio Entrepreneur- starts and runs a
number of Business

 Drone Entrepreneur The dictionary meaning of the term drone is a

person who lives on the labor of others. Drone
entrepreneurs are those individuals who are satisfied
with the existing mode and speed of business
activity and show no inclination in gaining market
leadership. In other words, drone entrepreneurs are
die-hard conservatives and even ready to suffer the
loss of business.
Social Entrepreneur:
Social entrepreneurs drive social innovation and
transformation in various fields including education,
health, human rights, workers rights, environment
and enterprise development.
They undertake poverty alleviation objectives with
the zeal of an entrepreneur, business practices and

Functions of an Entrepreneur
Functions of an
Entrepreneur
Idea Generation
Fund Raising
Procurement of Machinery
Determination of Form of
Enterprises

Determination of Objectives
Procurement of Raw
Materials
Market Research
Recruitment of Manpower

Implementation of Project

Benefits of Being an
Entrepreneur
Being in control
Better Relations with Other People
Self Confidence
Giving Back to Society
Flexibility

Manager : Meaning &Definition

Meaning:

The managers are the people who perform the

functions of the management. A manager is a
person tasked with overseeing one or more
employees or departments to ensure these
employees or departments carry-out assigned
duties as required.

Definition

A manger is responsible for the application and

performance of knowledge.
--by Peter Drucker
A manager is not a person who can do the work
better than his men . He is a person who can get
his men to do the work better than he can.
--by Fred Smith
A manager is someone who is responsible for the
performance of all people on whom her
performance depends.
--by Grover
Starling

Characteristics of Manager
1.
2.
3.
4.
5.
6.

Leadership
Communication
Planning
Problem-Solving
Adaptability
Relationship Building

Scope of Managers

Scope of Managers
Human Resource Manager
Operations Manager

Product Manager

Marketing Manager
Sales Manager

Feedback

Managerial Roles
Interpersonal
Figurehead
Leader
Liaison

Provide
Informat
ion

Informational
Monitor
Disseminator
Spokesperson

Process
Informat
ion

Decisional
Entrepreneur
Disturbance Handler
Resource Allocation
Negotiator

Use
Informat
ion

Intrapreneur : Meaning & Definition

Meaning:
Intrapreneur are those who take on responsibility for
creating innovation of any kind with an organization .
The Intrapreneur may be the creator or inventor but it
always the dreamer who figures out how to turn an idea
into profitable reality . Intrapreneur may be defined as
an entrepreneur in a corporate organization.
Intrapreneurs are usually employees within a company
who are assigned a special idea or project , and are
instructed to develop the project like an entrepreneur
would .

Definition:

Intrapreneurs are dreamers who do those

who take hands-on responsibility for creating

innovation of any kind within an organization.
--by Pinchot

Characteristics of Intrapreneurs

Characteristics of
Intrapreneur
Need to Achieve Goals
Visionary
Creates Management
Options
Teamwork
Open Discussion
Decision Making

Understands the
Environment
Locus of Control
Analytical Ability of Mind
Stress Takers
Builds Supporters
Persistence

Ability to Mobilize Resources

Scope of Intrapreneurs/Corporate
Entrepreneurs
Scope of
Intrapreneurs/Corporate
Entrepreneurs
Corporate Venture
Teams/New Venture Units

Formal Venture Teams

Spin-off Ventures

Roles and Responsibilities of Intrapreneurs

Roles and Responsibilities

of Intrapreneurs
Increases Revenues and Raises
Profits ; Short & Long-Term
Motivation
Tapping New Markets

Improves Corporate Image

for Recruiting Purposes
Stability
Sharing Resources

Comparative Study of Entrepreneurs ,

Managers and Intrapreneurs
1) Primary Motives
Manager:
Promotional and other traditional corporate rewards like
office , staff and power.
Intrapreneur:
Independence and ability to advance in the corporate
rewards.
Entrepreneur:
Independence , opportunity and money.

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2)Time Orientation
Manager:
Short-term meeting quotas and budgets , W/M/Q and
annual planning horizon.
Intrapreneur:
Between manager and entrepreneur , depending on
urgency to meet self imposed and corporate timetable.
Entrepreneur:
Survival and achieving 5-10 years growth of business.

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3) Activity
Manager:
Delegates and supervises rather than direct involvement
Intrapreneur:
Direct involvement , more than delegation .
Entrepreneur:
Direct involvement
4) Risk
Manager:
Careful.
Intrapreneur:
Moderate risk taker.
Entrepreneur:
Moderate risk taker.

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5)Status
Manager:
Concerned about status symbols.
Intrapreneur:
Not concerned about traditional status symbol , desires
independence.
Entrepreneur:
Not concerned about status symbols.
6) Failures and Mistakes
Manager:
Tries to avoid mistakes and surprises
Intrapreneur:
Attempts to hide risky projects from view until ready.
Entrepreneur:
Deals with failures and mistakes.

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7) Decisions
Manager:
Usually agrees with those in upper management position.
Intrapreneur:
Able to get others to agree to help achieve dreams.
Entrepreneur:
Follow dreams with decisions.
8) Who Serves
Manager:
Others.
Intrapreneur:
Self , customers and sponsors.
Entrepreneur:
Self and customers.

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9)Relationship with Others
Manager:
Hierarchy as basic relationship.
Intrapreneur:
Transaction within hierarchy.
Entrepreneur:
Transactions and deal making as basic relationship.
10) Family History
Manager:
Family members worked with organizations.
Intrapreneur:
Entrepreneurial small business , professional or farm background.
Entrepreneur:
Entrepreneurial small business , professional or farm background.

Meaning & Definition of Entrepreneurship

Meaning: Entrepreneurship is the act of being an entrepreneur ,
which is French word meaning to undertake .
Entrepreneur assemble resources including
innovations , finance and business acumen in an effort to
transform innovations into economic goods . This may
result in new organizations or may be part of revitalizing
mature organization in response to a perceived
opportunity . The most obvious form of entrepreneurship is
that of starting new business.

Definition: Entrepreneurship as defined essentially consists in

doing things that are not generally gone in the ordinary
course of business routine.
--by Joseph
Schumpeter
Entrepreneurship occurs when resources are redirected
to progressive opportunities not used to ensure
administrative efficiency .He further states that
entrepreneurship is not natural , it is not creative . It is
work . Entrepreneurship requires entrepreneurial
management .
--by Peter F.
Drucker
Entrepreneur is one who provides the fourth factor of
production , namely enterprise . It refers to the
functions performed by an entrepreneur in establishing

Cntd

Entrepreneurship = Entrepreneurship + Enterprise

(process)

(Person)

(Object)

Characteristics of Entrepreneurship

Characteristics of Entrepreneurship
Economic Activity
Decision Making
Risk Taking
Dynamic Process
Skillful Management

Purposeful Activity
Accepting Challenges
Building Organization
Gap Filling Functions
Innovation

Mobilization of Resources

Need for Entrepreneurship

Employment Generation
Small Business Dynamism
Balanced Economic Development
Innovations in Enterprises

Stages in Entrepreneurial Process

Identify and Evaluate

Opportunity

Develop Business Plan

Determine Resources Required
Manage the Enterprise

Importance of Entrepreneurship

Importance of Entrepreneurship
Creates Large-Scale
Employment
Opportunities
Increase in National
Income
New Products , New
Services , & New Business

Dispersal of Economic

Better Standards of Living

Creating Innovation

Production Evolution
Process

Enhancing Welfare
Amenities

Balanced Regional
Development
Promotes Countrys
Export Trade

Problems of Entrepreneurship
I.
II.
III.
IV.
V.

Finance
Risk of Losing Invested Capital
Weak Management
Ineffective Marketing
Lower Quality of Life Until the Business is Established

Entrepreneur vs. Entrepreneurship

1)Meaning:
Entrepreneur
Entrepreneur is a person who purchases means of
production for combining them into marketable products
at profit motive in future , with being the risk of
uncertainty . So entrepreneur refers to a person.
Entrepreneurship
Entrepreneurship is a process of concerting the idea of
establishing a new enterprise into its implementation .
So entrepreneurship refers to s process.

Entrepreneur vs. Entrepreneurship

2)Specific Qualities:
Entrepreneur
Entrepreneur needs qualities like creativity , decisionmaking ability , leadership , management efficiency ,
flexibility , etc.
Entrepreneurship
Entrepreneurship is the specific quality shown in an
entrepreneur due to which he can establish a new
enterprise.

Entrepreneur vs. Entrepreneurship

3)Function:
Entrepreneur
The prime function of an entrepreneur is establishment
of an enterprise . So he is the engine of organization.
Entrepreneurship
The prime function of entrepreneurship is to motivate
entrepreneur . So it is an energy like petrol or diesel that
creates energy into the engine of an entrepreneur.

Entrepreneur vs. Entrepreneurship

4)Economic Point of View:
Entrepreneur
From economic point of view , for entrepreneur the
words like initiator , innovator , leader , planner , risktaker , motivator , organizer , etc., are used.
Entrepreneurship
From economic point of view , for entrepreneurship the
words like initiative , innovation , leadership , planning
,risk-taking , motivation , etc., are used.

Enterprise vs.
Entrepreneurship
Enterprise
Enterprise is the
business unit or set of
skills and attitudes that
can enable culture of
opportunism , creativity
and risk taking.
It is the unit involving
risk and uncertainty.
It serves as the
framework within which
decision concerning
what to produce , how
much to produce , where
to produce are taken by
the entrepreneur.

Entrepreneurship

Entrepreneurship refers
to the functions
performed by an
entrepreneur in
establishing an
enterprise.
They are risk-taker.
They engaged
themselves in producing
and selling the product.

Cntd..
Enterprise
Enterprise
utilizes the
raw materials and other
inputs in the process of
production.
Usually a profit-oriented.
May be purchased ,
donated or inherited.
Generally traditional.
Works for the company.
Usually do not have time
for their families and
love ones.
Usually distressed and
experiences sleepless

Entrepreneurship
Entrepreneur
procures
raw material and other
inputs for production.
Customer-oriented.
Creates his own idea and
realize it as a business.
An innovator.
The company works for
him.
Shares enough time with
their families and love
ones.
Always a happy and
enthusiastic

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Enterprise

Generally hire people to

contribute profit.
Commonly commit tax
evasion to save taxes
and increase profit.

Entrepreneurship

Hire people to make

their lives better.
Practice tax avoidance to
save taxes and increase
profit.

Employment vs.
Entrepreneurship
1)Meaning
Employment:
Working for others is termed as employment.
Entrepreneurship:
Working in own business entity is entrepreneurship.
2)Orientation
Employment:
Individuals who work for other organizations are
employees.
Entrepreneurship:
Individuals who establish their own firms are
entrepreneurs.

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3)Advantage
Employment:
Offers earnings but do not provide ownership.
Entrepreneurship:
Offers earnings but provides ownership.
4)Type of Job
Employment:
Employment is a routine job.
Entrepreneurship:
Entrepreneurship is a creative activity.

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5)Earning
Employment:
In employment , earning is fixed & never negative.
Entrepreneurship:
In entrepreneurship earning is not fixed , can be negative
and at times surplus also.
6)Wealth Creation
Employment:
It does not create wealth.
Entrepreneurship:
Creates wealth and also contributes to the GDP of the
country.

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7)Area of choice
Employment:
It can be form the sectors like Government sector ,
private sector & public sector.
Entrepreneurship:
It can be from service enterprise , industry or trade.

Self-Employment vs.
Entrepreneurship
Self-Employment

Self-employment
involves business with
less risk because the
individual already has
most of what he would
need to start working.
The self-employed works
hard because he enjoys
what he is doing.

Entrepreneurship
Entrepreneurship
involves more risk
because funds are
needed to begin the
business and there is
usually a building ,
equipment , staff , and
more to invest in ,
should the business fail
for an entrepreneur they
would be out their entire
investment.
An entrepreneur works
hard because he wants
to serve others.

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Self-Employment
The self-employed wants to
own everything.
The self-employed try to do
everything himself as he
trust no one to do a better
job than him.
Self-employed people work
for themselves , and are
responsible for generating
their source of income ,
paying taxes , and payroll
deductions supplying their
own work space/place and all
services , materials ,
equipment , subcontracting , etc.

Entrepreneurship
An
entrepreneur wants
to own as little as
possible but controls
everything.
An entrepreneur knows
that he cannot do
everything so he
delegates his
responsibilities to those
he trust but still maintain
accountability for their
actions.
Entrepreneurs start
things , invent things
and introduce them to

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Self-Employment

They might be artist or

writers or
business/technology
consultants hired by
companies.
Someone who is selfemployed is not
necessarily an
entrepreneur.

Entrepreneurship

They themselves are

companies and hired
others.
An entrepreneur is selfemployed.

PROBLEM OF
UNEMPLOYEMENT

Introduction
Unemployment is a state of inactivity suffered by a
worker in spite of his intention to find work and in spite
of his physical fitness to carry-on his trade.
A person working 8 hours a day for 273 days of the year
is regarded as employed on standard person year basis .
Entrepreneurship is one way of solving the
unemployment problem . When unemployed
entrepreneurship goes through refugee effect , then this
pushes people towards business ownership . Based on
the Schumpeter effect , the increase in the rate of
entrepreneurship leads to greater levels of employment
and economic growth .

Causes of Unemployment
1)
2)
3)
4)
5)
6)
7)
8)
9)

Jobless Growth
Inefficient Agricultural and Industrial Sectors
Inappropriate Education System
Inappropriate Technology
Weakness in Planning Techniques
Illiteracy
Technology
Population Growth
Social & Cultural Factors

Types of Unemployment

Types of Unemployment
Frictional Unemployment
Real Wage or Classical
Unemployment

Structural Unemployment
Cyclical Unemployment

Seasonal Unemployment

Importance of Wealth Creation

Wealth is an abundance of valuable material or
resources. The word is derived from the old English
wela , which is from an Indo-European word stem .
An individual , community , region or country that has
an abundance of such possessions or resources is
called wealthy .
Wealth can be defined as any value added to society .
It is created when a farmer creates a more efficient
and sustainable growing method , or when a student
starts an academic club on campus , or when a
mother teaches her daughter how to bake . These are
not evil activities.
Wealth creation is more than possessing wealth and is
only one form of increasing wealth . The most
important question for those who are on their way to
wealth creation is how one can starts thinking like

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Following points show the importance of wealth
creation:
i. Success in a Life
ii. Helps to Balance the Imbalances
iii. Scope for Investments

Measures to Remove Unemployment

I.
II.
III.
IV.
V.

Population Control
Reform in the Education System
Self-Employment Schemes
Policy towards Seasonal Unemployment
Rapid Industrialization

Entrepreneurial Career as an option

Introduction: Most people , even entrepreneurs , still fail to think of
entrepreneurship as a career . The creation and
development of one or more new enterprises is a
passage , a field of pursuit , a calling , and a way of
life that the fits the basic notation of a career .
Entrepreneurship is a career process that is started at
vastly different times by its practitioners . The
educational ramification of this career unevenness
and career non-recognition are serious , among
current students , only a minority of all future
entrepreneurs will suspect when they attend college
that they will make entrepreneurship a major life
pursuit .

Cntd
Considering entrepreneurship while at college:
1. Only a small minority will start right after
graduating ,&
2. Another small minority will wait but will anticipate
their entrepreneurial careers by explicitly choosing to
work for someone else in a position or industry that
will prepare them for their future ventures .
.Choosing entrepreneurial career is like choosing a life
partner . The person has to be there in the job forever
and may have to continue in that chosen line for
generations to generation and grows in this process if
it is matching ; if it mismatches it goes the other way
round.

Choice of Entrepreneurship as a career

Self-employment requires a great willingness to take
action , experiment , and constantly innovate .
Decisive and innovative actions are required to
respond to changing market conditions on a
continuous basis . The self-employed person can be
regarded as an entrepreneur . Self-employment is
often referred to as the entrepreneurial career .
The entrepreneurial career is marked by extensive
personal commitment to the success of the business ,
acceptance of the unpredictability of the business
venture outcomes , an orientation towards action and
decisiveness , the simultaneous performance of multiwork roles(e.g., owner , worker , salesperson ,
accountant ) , and a willingness to accept risk .

Cntd
There are two aspects regarding entrepreneurship as a
career which are as follows:
Positive Aspects:
i. Being the boss in his own business , an entrepreneur
enjoys unlimited powers . He can do things in his
own way , and he need not take orders from
someone else . He can make his own decision and
act on them .
ii. There are numerous opportunities for his selfdevelopment .
iii. Working on ones own , and thus getting rewards
yields immense satisfaction and pleasure for more
that what he can get in a job .
iv. Monetary rewards can be more than commensurate

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v. An entrepreneur can command deference and respect
of his immediate family and friends . It is a kind of
intangible reward .
vi. Instead of depending on others , he generates
employment for others .
vii. An entrepreneur can make significant contribution to
the development of the country and be proud of taking
part in nation building activities .
viii. An entrepreneur can be a great achiever realizing
his goals and providing his achievements to the world .
He can be recognized for his outstanding efforts.

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Negative Aspects:
i. Though an entrepreneur is his own boss , in some
respect he is not . It is so because he is constrained
by various people like his financiers , laborers
,suppliers , customers and so on .
ii. He may have to face frustration since the scope of
this operation is limited by his limited resources .
iii. He has to work long and hard hours from morning to
dusk and his venture tends to absorb all his energy
and time . This may affect his social and family .
iv. At times he may have to face disappointments and
frustrations since everything in his venture may not
always work the way he would like it to .
v. He has to work always with tension since there is
always the risk of failure .

Factors Favoring Entrepreneurial Career as an Option

1) High Need of Independence .

2) To Satisfy the Dream of having High Financial
Rewards.
3) Opportunity to Deal with all Aspects of a Business.
4) Achievement Orientation.
5) Implementation of Ideas.
6) Insecurity of Job.
7) Family Business.
8) Risk-Taking.
9) Government Economic Policy .
10)Vision to Leave a Long Lasting Mark .

Changing Roles of an Entrepreneur

Growth of a business changes the entrepreneur and in
order for the business to grow the entrepreneur must
change . As , a business grows , an entrepreneur must
change not only the content of what he or she does
but also how he or she interacts with employees and
outside entities .
This re-definition of the role of the entrepreneur as the
business grows can be viewed along three
dimensions:
1) The movement from a hands-on doer to a manager
to a leader to ultimately a coach or mentor of
others .
2) From a functional specialist to a general manager
back to a functional specialist and ultimately to a
strategy and culture conductor .

Cntd
3) From having a passionate belief in the primacy of
oneself to having a belief in others to having a belief in
the importance of working towards something more
than just a financial rewards of the business .

Thank you!