Entrepreneurship

Management

- Prof. J.C. Saboo

 What do you mean by…
Entrepreneur
(oxford dictionary): Person who undertakes an
enterprise with chances of profit or loss.
Enterprise (oxford dictionary): Bold
Undertaking
Entrepreneur-New Encyclopedia
Britannica: An individual who bears the risk of
operating business in the face of uncertainty
about the future conditions.
Common Meaning: one who starts his own, new
and small business
 Entrepreneurship: It is a philosophy or
process through which an entrepreneur
seeks innovation and employment.

Entrepreneur Entrepreneurship Enterprise

Person Process or Philosophy Object

Entre – enter Pre – before Neur – Nerve Centre

Entrepreneurship can be described as a creative

and innovative response to the environment.
Entrepreneurship Theories
1600: French verb- Entreprendre – to
undertake
1700: Person bearing Risks of Profit in a fixed
price contract (Risk)
1725: Richard Cantillon – Person bearing
risks is different from Capital Supplier (Risk)
1803: J. B. Say – Shifts economic resources
out of an area of lower into an area of higher
productivity & greater yields (Value Addition)
1934: Joseph Schumpeter – Innovator and
develops untried technology (Productivity &
Innovation)
Entrepreneurship Theories…
1961: David McClelland – highly motivated,
energetic, moderate risk taker (Need for achievement)
1964: Peter Drucker – Searches for change,
responds to it & exploits as opportunity (Opportunity
Focused)
1980: Karl Vesper – Behaviour Perceptions-
Economists, Psychologists, Businessmen, Politicians
(Environment)
1983: Gifford Pinchot- Intrapreneur
1985: Robert Hisrich - Creating something different
with value, devoting time & effort, assuming risks (FPS);
results-rewards and satisfaction (Leadership & Vision)
How do you define an entrepreneur in
the 21st Century?
 Entrepreneurship
“Is the process of creating
something different with
value by devoting the
necessary time and effort,
assuming the accompanying
financial, psychic, social risks
and receiving the resulting
rewards of monetary and
personal satisfaction and
The Nature and Development
of Entrepreneurship
Entrepreneur stems from
French Verb Entreprendre
means between – taker or go between

New Definition involves four

aspects:
The creation process
The devotion of time and efforts
The assumption of risks
Rewards of independence, satisfaction, money.
 To an Individual
Self Employment
Employment for near & dear
Prolonged career for next generations
Freedom to use own ideas - Innovation
and creativity
Unlimited income / higher retained income
Independence
Satisfaction
 To the Nation
Provides larger employment
Results in wider distribution of wealth
Mobilizes local resources, skills and
savings
Accelerates the pace of economic
development
Stimulates innovation & efficiency
 Factors favouring
Entrepreneurship
Growth of education- science, technology
& management
Developed infrastructure facilities
Financial assistance
Training facilities
Protective and promotional policies
Globalization

Think of numerous other factors?

What makes a Successful
Entrepreneur?
The urge for achievement
Determination to win
Win-Win Personality
Willingness to take moderate risks
Ability to identify & explore
opportunities
Analytical ability to take strategic
decisions
Perseverance
Flexibility
Capacity to plan and organize
Preparedness to undergo physical and
emotional stress
Positive self concept
Future orientation: Vision
Ethics and Values :Mission
Who can be an Entrepreneur?
Who can take moderate risks
Who has ability to work hard
Who can capitalize on opportunities
Who has some financial strength
Who feels the need for achievement
Who has desire for responsibility
Who has perception of probability of success
Who gets stimulation by feedback
Who possess skills in organizing
Who can be male or female
Who may not have previous experience
 Characteristics of an
Entrepreneur
Motivator
Mental ability
Clear objectives
Self-confident
Business
Long termsecrecy
involvement
H.R. ability
High energy level
Communication
Problem solver ability
Technical knowledge
Initiator
Achievement-oriented
Goal setter
Perseverance
Risk taker
Ethical
Key elements of entrepreneur
Innovation
Vision
Ethics & Values
Organizing Skills
Risk taking
Need for Achievement

Study the Profile of a Successful Entrepreneur and

identify six key elements in order of priority
Entrepreneur’s Background
and Characteristics
Family environment
Education
Age
Physical attributes
Marital status
Working history
Family contacts
Professional contacts
Personal values
Lifestyle
 Interesting, right?
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