Entrepreneur, Entrepreneurship &

Intrapreneur
 Definition:-
1. Oxford English dictionary defines
entrepreneur as “One who undertakes an
enterprise, especially contractor –acting as
intermediary between capital and labor.”
2. Richard Cantillon was the first to introduce
the term “entrepreneur”. He defines “the
agent who buys means of production at
certain prices in order to combine them into
product that he is going to sell at prices that at
uncertain at the moment at which he commits
himself to his costs.”
3. J.B.Say “an Entrepreneur is the economic agent who unites
all the means of production, the labor force of the one and the
capital or land of the others and who finds in the value of the
products which result from their employment , the
reconstitution of the entire capital that he utilizes and the
value of the wages , the interest and the rent which he pays as
well as the profit belonging to himself”.
4. Evans “entrepreneurs are persons who initiate, organize,
manage and control the affairs of a business unit that
combines the factors of production to supply goods &
services whether business pertains to agriculture ,industry
trade or profession”
Characteristics of an entrepreneur

Mental ability Human relation

Business Communication
secrecy ability

Technical
Clear objectives
knowledge
 Characteristics of an “IDEAL”
entrepreneur
Goal
creativity leadership
orientation

Team
innovation Risk taker
building

Problem
Dynamism commitment
solver
 Entrepreneurship stimulants
1. Focus on capital formation.
2. Transformation of scientific
and technical development
3. Supportive government
programmes.
4. Availability of required
training and inputs.
5. Collaborative relationship
between business and
resources.
6. Environment conducive for
innovation.
Summary of Entrepreneur
Entrepreneurship
 ENTERPRENEURIAL SKILL

an
a risk taker organization
builder

an a resource
innovator assembler
combined
as one
 DEFINITIONS OF
ENTREPRENEURSHIP
• According to A.H Cole, “Entrepreneurship is the purposeful
activity of an individual or group of associated individuals,
undertaken to initiate, maintain or aggrandize profit by
production or distribution of economic goods or services.”
• Benjamin Higgins has defined entrepreneurship as “
Entrepreneurship means the function of foreseeing investment
and production opportunity, organizing and enterprise to
undertake a new selecting top managers for the day to day of
an operation of an enterprise.”
• According to B. C. Tandon , “Entrepreneurship means the
function of creating something new, organizing and co-
ordination and undertaking risk and handling economic
uncertainty
 Distinguish :
ENTREPRENEUR ENTREPRENEURSHIP

• Person • Process
• Organizer • Organization
• Visualize • Vision
• Creator • Creation
• Initiator • Initiative
• Innovator • Innovation
• Technician • Technology
• Decision-maker • Decision
• Leader • Leadership
• Planner • Planning
• Motivator • Motivation
• Risk-taken • Risk-taking
• Programmer • Action
• Communicator • Communication
• Administrator • Administration
 CHARACTERISTICS OF
ENTREPRENEURSHIP
ORGANISATION GROUP LEVEL
INNOVATION
BUILDING PATTERN

MANAGEREIAL
STATUS GAP FILLING
SKILL AND
WITHDRAWAL FUNCTION
LEADERSHIP

FUNCTION OF
HIGH SOCIAL, POLITICAL
ACHIEVEMENT & ECONOMIC
STRUCTURE
FUNCTIONS AND SCOPE OF
ENTREPRENEURSHIP

INNOVATION

RISK TAKING AND

UNCERTAINITY BEARING

TAKING BUSINESS
DECISION

MANAGERIAL FUNCTIONS
 FACTORS AFFECTING
ENTREPRENEURIAL GROWTH
Factors
affecting

ECONOMIC SOCIAL CULTURAL PERSONALITY

FACTORS FACTORS FACTORS FACTORS
 SOCIAL ENTREPRENEURSHIP
1. Social entrepreneurs are individuals with innovative solutions
to society’s most pressing social problems.
2. They are ambitious and persistent, tackling major social
issues and offering new ideas for wide-scale change .
3. A social entrepreneur recognizes a social problem and uses
entrepreneurial principles to organize, create, and manage a
venture to make social change.
4. Unlike business entrepreneurs they don’t measures
performance in profit and returns, but assess success by the
impact they have on society and often work through
nonprofits and citizen groups.
5. They call themselves social entrepreneur, and their ‘business’
is to make the work a better place.
Intrapreneur
 Definition & meaning
• An intrapreneur is defined as
“any of the dreamer who do”
those who take hand on
responsibility of creating
innovation of any kind within
the organisation.
• The intrapreneur may be
creator or inventor but he is
always a dreamer who finds
out how to turn an idea into a
profitable reality.
Characteristics of intrapreneurial
environment
Innovative ideas Reward Alteration

Encourage support of top

No force
experimentation management

Initial
opportunity Evaluation
parameter

Availability of Encourage
resources teamwork
 Intrapreneur Qualities

Innovator visionary Knowledgeable

Encourage
Flexibility Diplomatic
teamwork

Open to
discussion and Motivator
idea
Intrapreneur Characteristics

Self self confident

motivator & courageous

Freedom Education
 The intrapreneur’s Ten
Commandments
1. Do any job needed to make your project work.
2. Find people to help you.
3. Honour your sponsor.
4. Be true to tour goals, but be realistic about the ways to achieve them
5. Remember it is easier to ask for forgiveness than for permission.
6. Work secretly as long as you can
7. Follow your intuition about the people you choose & work only with the
best.
8. Come to work each day willing to be fined.
9. Prevent any orders aimed to stopping your dreams.
10. Never bet on a race unless you are running in it.
 Classification of intrapreneurs

Innovating Marketing Technical

Service Financial Manufacturing

 Some companies started by
intrepreneurs.

1. Google
2. Yahoo
3. You tube
4. facebook
Theories of entrepreneurship
 Theories of entrepreneurship

1.Economic Theory

2.Sociological Theory

3.Psychological Theory
 The Economic Theory- B.C.Tandon
• He describes the Functions of an entrepreneur in a developing economy in
the context of the environmental forces.i.e economic, rural ,political and
culture. Accordingly the entrepreneur must posses:
a) Ability of organization & administration.
b) Technological knowledge , alertness to know opportunities ,willingness to
accept change & ability to initiate and
c) Capacity to assume risk and self confidence
d) Tact ,patience and power of observation & ability of discrimination.
e) Perseverance to overcome obstruction and fear.
f) Capacity to pick and choose associates and subordinates and delegate
authority to inspire loyalty.
g) Role like that of a “strike who keeps the fire burning.”.
 Leibenstein’s X efficiency theory
• X-efficiency is the degree of ineffiency in the
use of resources in the wrong way, within the
firm for productive potential.
• The entrepreneur has to complete the
production efficiently with proper inputs and
improve flow of information in market by gap
filling in the economy
 Sociological Theory- Peter Marris
• “To assemble or reassemble from what is
available ,very concrete kind of imagination
,to see what other have missed ,sensitivity to
business and social environment ,zest in
industrial development and entrepreneurial
courage are the factors that make an
entrepreneur.”
Psychological Theory -Schumpeter
• He believes that entrepreneurs are motivated by will
to power, will to find a private kingdom or will to
conquer.
• The main characteristics are:
a) An institutional capacity to see things in a way
which afterward proves correct,
b) Energy of will and mind to overcome fixed habits of
thought and
c) The capacity to withstand social opposition.
 Harvard school theory – Cole
• Entrepreneurship comprises any purposeful
activity that initiate , maintain or develop a
profit – oriented business ,in interaction with
internal ,economic ,political and social
circumstances of business.
• Entrepreneurs operate under fairly uncertain
circumstances.
 Theory of High Achievement –Mc
Clelland
• Mc Clelland identified two characteristics of
entrepreneurship for decision making under
uncertainty .
• He stressed the need of achievement and the
tendency to strive for success.
• People with high (N-Ach) are not influenced
by profits as it is just a measure of success and
competency.
 Theory of Profit- Knight
• Knight identifies the entrepreneur as a
recipient of pure profit.
• Uncertainty can be identified by priority
reasoning or statistical inference.
 Peter Drucker’s theory
• Entrepreneurs need to
search purposefully for
the sources of
innovation ,the changes
and their symptoms that
indicate opportunities
for successful
innovation and they
need to know and apply
the principles of
successful innovations.
 Hagen views on entrepreneurship
• “creative innovation is the fundamental feature of economic
growth. An entrepreneur is described as a creative problem
solver interested in things that are practical. While facing a
problem he feels a sense of increased pleasure and tolerates
disorder without disorders.”
• Innovation requires creativity and individuals who are
creativity can only bring about economic growth.
• “the withdrawal of status respect”
• Four different types of personalities would emerge .t
• they are:
Four different types of personalities

1.Retreatist 2.Ritualist

3.Reformist 4.Innovator
 Myths of entrepreneurship
1. Entrepreneur s are born not.
2. They are academic and social misfits
3. They fit an ideal profile
4. All you need is money and luck to be an entrepreneur
5. A great idea is only ingredient in a recipe for success.
6. My best friend will be a great business partner.
7. Having a boss is a great fun.
8. I can make lots of money.
9. I’ll definitely become successful
10.Life must be much simpler if I work for myself.
 Success steps

success
courage

determination

vision

desire
Thank you