ENTREPRENEURSHIP

DEVELOPMENT ENTREPRENEURAL
COMPETENCE
UNIT-1
 ENTREPRENEURSHIP CONCEPT

• ENTREPRENEUR: (MEANING)
• A person who makes money by starting or running businesses,
especially when this involves taking financial risks.
• In economics, entrepreneurship connected with land, labour, natural
resources and capital can generate a profit. The entrepreneurial vision
is defined by discovery and risk-taking and is an indispensable part of a
nation’s capacity to succeed in an ever-changing and more competitive
global marketplace.
 MEANING
The entrepreneur is defined as someone who has the ability and desire to
establish, administer and succeed in a startup venture along with risk
entitled to it, to make profits.
The best example of entrepreneurship is the starting of a new business
venture.
The entrepreneurs are often known as a source of new ideas or
innovators, and bring new ideas in the market by replacing old with a new
invention.
It can be classified into small or home business to multinational
companies. In economics, the profits that an entrepreneur makes is with
a combination of land, natural resources, labour and capital.
In a nutshell, anyone who has the will and determination to start a new
company and deals with all the risks that go with it can become an
Entrepreneur.
 TYPES OF ENTRPRENEURSHIP (4
TYPES)
Small Business Entrepreneurship-
These businesses are a hairdresser, grocery store, travel agent,
consultant, carpenter, plumber, electrician, etc. These people run or own
their own business and hire family members or local employee. For them,
the profit would be able to feed their family and not making 100 million
business or taking over an industry. They fund their business by taking
small business loans or loans from friends and family.
Scalable Startup Entrepreneurship-
This start-up entrepreneur starts a business knowing that their vision can
change the world. They attract investors who think and encourage people
who think out of the box. The research focuses on a scalable business
and experimental models, so, they hire the best and the brightest
employees. They require more venture capital to fuel and back their
project or business.
Large Company Entrepreneurship-
These huge companies have defined life-cycle. Most of these
companies grow and sustain by offering new and innovative products
that revolve around their main products. The change in technology,
customer preferences, new competition, etc., build pressure for large
companies to create an innovative product and sell it to the new set of
customers in the new market. To cope with the rapid technological
changes, the existing organizations either buy innovation enterprises
or attempt to construct the product internally.
Social Entrepreneurship-
This type of entrepreneurship focuses on producing product and
services that resolve social needs and problems. Their only motto and
goal is to work for society and not make any profits.
 CHARACTERISTICS OF ENTREPRENEURSHIP
Not all entrepreneurs are successful; there are definite characteristics that make
entrepreneurship successful. A few of them are mentioned below:
•Ability to take a risk- Starting any new venture involves a considerable amount of
failure risk. Therefore, an entrepreneur needs to be courageous and able to evaluate
and take risks, which is an essential part of being an entrepreneur.
•Innovation- It should be highly innovative to generate new ideas, start a company and
earn profits out of it. Change can be the launching of a new product that is new to the
market or a process that does the same thing but in a more efficient and economical
way.
•Visionary and Leadership quality- To be successful, the entrepreneur should have a
clear vision of his new venture. However, to turn the idea into reality, a lot of resources
and employees are required. Here, leadership quality is paramount because leaders
impart and guide their employees towards the right path of success.
Open-Minded- In a business, every circumstance can be an opportunity
and used for the benefit of a company. For example, Paytm recognized
the gravity of demonetization and acknowledged the need for online
transactions would be more, so it utilized the situation and expanded
massively during this time.
•Flexible- An entrepreneur should be flexible and open to change
according to the situation. To be on the top, a businessperson should
be equipped to embrace change in a product and service, as and when
needed.
•Know your Product-A company owner should know the product
offerings and also be aware of the latest trend in the market. It is
essential to know if the available product or service meets the
demands of the current market, or whether it is time to tweak it a little.
Being able to be accountable and then alter as needed is a vital part of
entrepreneurship.
 IMPORTANCE OF ENTREPRENEURSHIP
•Creation of Employment- Entrepreneurship generates employment. It
provides an entry-level job, required for gaining experience and training for
unskilled workers.
•Innovation- It is the hub of innovation that provides new product ventures,
market, technology and quality of goods, etc., and increase the standard
of living of people.
•Impact on Society and Community Development- A society becomes
greater if the employment base is large and diversified. It brings about
changes in society and promotes facilities like higher expenditure on
education, better sanitation, fewer slums, a higher level of
homeownership. Therefore, entrepreneurship assists the organisation
towards a more stable and high quality of community life.
•Increase Standard of Living- Entrepreneurship helps to improve the
standard of living of a person by increasing the income. The standard
of living means, increase in the consumption of various goods and
services by a household for a particular period.
•Supports research and development- New products and services
need to be researched and tested before launching in the market.
Therefore, an entrepreneur also dispenses finance for research and
development with research institutions and universities. This promotes
research, general construction, and development in the economy.
ENTREPRENEURSHIP AS A
CAREER
 AS A CAREER – DREAM……..
Everyone starts small but one can make it big with the right amount
of both hard work and smart work.
An entrepreneur is an initiator, a challenger, and a driver.
Someone that creates something new, either an initiative, a business,
or a company.
In a career as entrepreneur, he or she is the beginning of a venture,
project, or activity.
The entrepreneur might not be the ideator, but he or she is definitely
the one that decides to make that idea a reality.
There are entrepreneurs behind every business in the country, no
matter what the size and scope such as Coca Cola, Microsoft,
Facebook, Amazon, McDonald's
 CAREER PATH PROGRESSION FOR ENTREPRENEUR
Business Entrepreneur: A business entrepreneur is someone who has an idea or
product for the business world. It is usually a new or different idea, something that has
not been seen before, or something that provides a new twist or improvement for an
existing sector.
Social Entrepreneur: A social entrepreneur is someone who has innovative ideas for
social change, or new solutions to social problems, and dedicates their time to bring
these ideas to fruition. This might include issues of inequality or poverty; an example
would be to create a new charity to address these issues.
Serial Entrepreneur: A serial entrepreneur refers to someone who has a lot of ideas
and constantly starts up new companies or enterprises to implement these ideas.
Generally, a serial entrepreneur will have had good success or successes with previous
ventures, allowing him/her to start up new ventures.
Lifestyle Entrepreneur: A lifestyle entrepreneur refers to someone who starts up their
idea or venture based on a sport, hobby, or pastime they are passionate about. For this
type of venture, usually large start-up costs are required. Often people who have been
successful in the business world and have some of their own money to invest might
make this transition.
 CURRENT SCENARIO

According to the IT industry body Nasscom, India continues to reinforce its position as the
third-largest startup ecosystem in the world.
The total number of tech startups in the country has grown to 8,900-9,300 with 1,300
startups being added this year so far.
The startups have created an estimated 60,000 direct jobs and 1.3-1.8 lakh indirect jobs.
Over 18 per cent of all start-ups in India are now leveraging deep-tech, which means there
are over 1,600 such companies in India.
This number constituted only 8 per cent of start-ups incepted in 2014 and has seen a 40 per
cent CAGR (compound annual growth rate) over the past five years. 
India currently has more than 48 million small businesses, double the number of small
companies here in the U.S. (23 million).
According to a report by Business Today (India). Therefore, the career as entrepreneur has a
lot of scope. Breakdowns among the top industries are as follows.
Retail (except motor vehicles): 40 per cent ;
Clothing manufacturing: 8.75  per cent;

Food & Beverage: 7 per cent;

Services: 6.2 per cent;

Auto (sales, maintenance, repairs): 3.6 per cent;

Furniture: 3.2 per cent

According to Indian government data,
Micro, Small and Medium Enterprises (MSME) contribute nearly 8 percent of the
country's GDP,
45 per cent of the manufacturing output, and 40 per cent of the country's total
exports.
Small businesses in India create 1.3 million jobs every year and provide the largest
share of employment after agriculture.
They play a significant role in the country's GDP. About 15,000 small business owners
have registered with eBay India to export their products globally, and these exporters
now comprise a third of sellers on the platform.
It is estimated that a product listed by an Indian seller is sold in the international
market through eBay India every 10 seconds.
So, making a career as entrepreneur can be a good decision looking at the market
situation.
 PERSONALITY OF ENTREPRENEUR
The personality aspects of a true entrepreneur are someone who:
•uses his manipulating power.
•gives his opinion without being asked.
•creates a vision and a novel idea for a competitive advantage.
•is (too) critical.
•works focused and shows conscientiousness.
•likes to organize and manage things; call it execution power (
entrepreneur vs manager).
•keeps an open mind.
•has a different perception and sees problems as an opportunity.
•takes criticism personally.
•does well around others.
•wants to be the leader of a team.
•knows how to make others enthusiastic.
•is at his best when things run smoothly and orderly.
•is a pain in the ass when things don’t run (at all).
•thinks constantly about the goals and entrepreneurial strategies.
KNOWLEDGE AND SKILL OF
ENTREPRENEUR