TECHNOLOGY

ENTREPRENEURSHIP

MODULE-1
 Important Terminologies

 Entrepreneur: one who organizes, manages, and assumes the risks

of a business or enterprise.
 Intrapreneur: An employee with entrepreneurial skills and is
responsible for developing innovative ideas, products, or services
for their company.
 Entrepreneurship:  Joseph Alois Schumpeter is regarded as the
father of entrepreneurship. The process of creating a new
enterprise and bearing any of its risks, with the view of making
the profit.
 Start-up: A company typically in the early stages of its
development.
 Entrepreneurship

Entrepreneurship is the process of discovering new ways of

combining resources.

An economic process where an idea is generated or an opportunity is

created, refined, developed and implemented, while exposed to
uncertainty to realize a profit by effective utilization of resources.

Entrepreneurship is the ability and readiness to develop, organize and

run a business enterprise, along with any of its uncertainties in order
to make a profit. 
 Functions 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.
 Increase Standard of Living: It 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/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.
Entrepreneurship Process
 Importance of Entrepreneurship

 Development of managerial capabilities

 Creation of organizations

 Creation of employment

 Improving standard of living

 Means of economic development

 Entrepreneurs: Definition

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. 

Entrepreneurs are individuals who collect means of production, organize an enterprise,

innovate, create new things and bear the risk in the expectation of the reward in the form
of profit.

Peter Drucker: “Entrepreneur is one who always searches for change, responds to it and
exploits it as an opportunity. Innovation is a specific instrument of entrepreneurship. It is
an act that endows resources with a new capacity to create wealth; innovation indeed
creates a resource.”

Richard Cantillon: “An entrepreneur is an agent who buys factors of

production at certain prices in order to combine them into a product with a view to
selling it at uncertain prices in future.”
 Characteristics of Entrepreneur

 Innovativeness
 Ability to take a risk
 Leadership quality
 Flexible
 Highly Optimistic
 Hard work
 Motivated
 Maintain public relations
 Communication skills
 Functions of Entrepreneur

 Risk assumption: The risk may arise due to

Natural calamities,
Changing government policy,
Changing tastes of customers,
Increasing competition etc.
The entrepreneur has to bear all these risks and uncertainties in business.
The success is not guaranteed in business.
 Innovation: Innovation is concerned with
introduction of new products,
adopting new technology,
opening a new market or discovering a new source of raw materials,
creating a monopoly in the industry or breaking the existing monopoly
etc.
 Contd….

 Business Decision making:

Selection of site,
Nature of product,
Technology to be used,
Raising of capital,
Expansion of business etc.
A successful entrepreneur is one who can take the decision promptly and
accurately.

 Organizing: An entrepreneur has to collect the various factors of

production viz. land, labour, capital etc. and create an organization to
undertake the production / trading activity. He is required to possess a good
organizing skills. Organizing has become a difficult task in modern times.
 Contd….

 Management: An entrepreneur has to manage the activities of

the enterprise in an effective manner. He has to
Plan,
Organize
Co-ordinate and
Control these activities with a view to achieve the business
goals.
 TYPES OF ENTREPRENEURSHIP
BASED ON RISK

 Innovative Entrepreneurship: Entrepreneur comes up with new ideas and turns them into
viable business and find new ways to market the products that make their business stand out
from the crowd and sometimes create a new crowd. Examples are Steve Jobs and Bill Gates.
 Imitative Entrepreneurship implements current techniques from which they copy certain
business ideas and improve upon them as to gain an upper hand in the market. Imitative
entrepreneurship is characterized by the adoption of growing changing technologies.
Examples are development of small shopping complexes and small car manufacturers.
 Fabian Entrepreneurship is concerned with such business organizations in which the
individual owner does not take initiative in visualizing and implementing new ideas and
innovation. Dealings are determined by customs, religion, trading and past practices. They
are not too interested in taking risks or changes and they try to follow the beaten track
created by their predecessors.
 Drone Entrepreneurship is concerned with such businesses in which owners are satisfied
with the existing mode and speed of business activity and show no inclination in gaining
market leadership. They refuse to make any modification in the existing production methods
inspite of incurring recurring losses.
 BASED ON TYPES OF BUSINESS

 Agricultural Entrepreneurship covers a wide spectrum of agricultural

activities like cultivation, marketing of agricultural produce, irrigation,
mechanization and agricultural technology.

 Manufacturing Entrepreneurship identifies needs of customers and

then explores the resources and technology to be used to manufacture
the products to satisfy those needs by converting raw materials into
finished products.

 Trading Entrepreneurship procures finished products from

manufacturers and sells these to customers either directly or through
middlemen such as wholesalers, dealers, and retailers. These middlemen
act as a link between the manufacturer and customer.
 BASED ON OWNERSHIP

 Corporate entrepreneurship was pioneered by Burgelman.

Corporate ownership is where an individual through innovation
and skill organises, manages and controls a corporate undertaking
efficiently.
 Private Entrepreneurship is where an individual sets up a
business as a sole owner of the business and bears the entire risk
involved in it.
 State Entrepreneurship is where trading or industrial venture is
undertaken by the State or the Government.
 Joint Entrepreneurship implies a joint business endeavor
between a private entrepreneur and the Government.
 BASED ON SIZE OF ENTERPRISE

 Micro Enterprises: Any business with a turnover of up to

Rupees five crore.

 Small-Scale Entrepreneurship: A small enterprise has an

annual turnover of more than Rupees five crore but not more than
Rs 75 crore.

 Medium-Scale Entrepreneurship: A business with a turnover

over Rs 75 crore and upto Rs 250 crore.

 Large-Scale Entrepreneurship: Business with turnover over Rs

250 crore.
 BASED ON USE OF TECHNOLOGY

 Technical Entrepreneurship deals with establishing and running

industry based on science and technology. They use innovative
methods of production.

 Non-Technical Entrepreneurship is concerned with the use of

alternative and imitative methods of marketing and distribution
strategies to make their business survive and thrive in a
competitive market.
 Pros and Cons of Entrepreneurship
Pros
High level of freedom
Higher level of flexibility
You don’t have a boss
Entrepreneurship never get boring
Time can be used as efficient as
possible
Motivation level will be high
Do what’s right from an ethical
perspective
Entrepreneurship gives opportunity to
make more money.
Being an entrepreneur allow to follow
passion
Cons
Entrepreneurship can be lonely
Financial pressure can be enormous
You have full responsibility
Unlimited liability for mistake in a
business
Rely on the business partners
Entrepreneur can imply excessive stress
Especially problematic for business with
high investment cost
Only few people have patience for being
an entrepreneur
Entrepreneur have to work longer.
 Entrepreneur vs Employee

Entrepreneur Employee
Create own business which bearing a loss Work for a company while performing his
and enjoying profit and rewards. or her duties.

Visionary, and bear all financial risk. Work for salary and bear no risk.
Opportunity oriented Resource oriented
Issue instructions Follow instructions
Don’t get fixed compensation Get fixed compensation
Don’t entitled any specific types of leaves. Entitled specific types of leaves.

Work for your self Work for someone else

Wide range responsibility Narrow scope responsibility

 Characteristics of Successful Entrepreneurs
 Curiosity: Successful entrepreneurs have a sense of curiosity
that allows them to continuously seek new opportunities. Rather
than settling for what they think they know, curious entrepreneurs
ask challenging questions and explore different avenues.

 Adaptability: The nature of business is ever-changing.

Entrepreneurship is an iterative process, and new challenges and
opportunities present themselves at every turn. It’s nearly
impossible to be prepared for every scenario. Entrepreneurs need
to evaluate situations and adapt so their business can keep
moving forward when unexpected changes occur.
 Contd…

 Team Building: A great entrepreneur is aware of their strengths and

weaknesses. Rather than letting shortcomings hold them back, they
build well-rounded teams that complement their abilities.

 Risk Tolerance: Entrepreneurship is often associated with risk. While

it’s true that launching a venture requires an entrepreneur to take
risks, they also need to take steps to minimize it. While many things
can go wrong when launching a new venture, many things can go
right. The key, according to Entrepreneurship Essentials, is for
entrepreneurs to actively manage the relationship between risk and
reward, and position their companies to “benefit from the upside.”
Successful entrepreneurs are comfortable with encountering some
level of risk to reap the rewards of their efforts; however, their risk
tolerance is tightly related to their efforts to mitigate it.
 Contd…

 Comfortable with Failure: In addition to managing risk and

making calculated decisions, entrepreneurship requires a certain
level of comfort with failure. The reasons for failure are vast and
encompass everything from a flawed business model to a lack of
focus or motivation. While many of these risks can be avoided,
some are inevitable. Successful entrepreneurs prepare themselves
for, and are comfortable with, failure.

 Unstoppable Will to Win: While many successful entrepreneurs

are comfortable with the possibility of failing, it doesn’t mean they
give up easily. Rather, they see failures as opportunities to learn
and grow.
 Contd…

 Innovation: Innovation goes hand-in-hand with

entrepreneurship. This is often true—some of the most successful
startups have taken existing products or services and drastically
improved them to meet the changing needs of the market.

 Long-Term Focus: Finally, most people think of

entrepreneurship as the process of starting a business. While the
early stages of launching a venture are critical to its success, the
process doesn’t end once the business is operational.
Entrepreneurship is a long-term endeavor, and entrepreneurs
must focus on the process from beginning to end to be successful
in the long run.
 Intrapreneur

 The term "intrapreneur" is a combination of the two words

"internal" (or the prefix "intra" to mean internal) and
"entrepreneur."

 Intrapreneurs are employees of a company who are assigned to

work on a special idea or project. They are given the time and
freedom to develop the project as an entrepreneur would.
However, they are not working solo. Intrapreneurs have the
resources and capabilities of the firm at their disposal.
 Employee Vs. Intrapreneur
1. Employees stick to their job descriptions while Intrapreneurs create wider and
more robust job descriptions for themselves.
2. Employees seldom care if the organization meets their bottom line while
Intrapreneurs are concerned and are constantly looking for ways to grow the
business.
3. Employees are quick to run off when the next high paying job comes along
while the Intrapreneur stays back to grow the business and earn a higher salary
as company profit increases.
4. Employees like to spend the organization's money while Intrapreneurs like to
save and grow the organization's money.
5. Employees remain employees and go up the ladder slowly and seldom while
Intrapreneurs go up the ladder much quicker and become the senior
management of the organization.
6. When Employees leave to become Entrepreneurs, they seldom succeed but
when Intrapreneurs leave to become Entrepreneurs, they have a higher rate of
success because they simply apply the same principles of Intrapreneurship.
 Business Model Canvas

 The Business Model Canvas, is a strategic management and

entrepreneurial tool.
 It allows you to describe, design, challenge, invent, and pivot
your business model.
 Alex Osterwalder initially proposed the idea based on his earlier
work on Business Model Ontology.
 Elements of a Business Model The nine startup building blocks
addressed in a business model:
 Business Model Canvas
Value proposition – the products and services that create value for your customers

Customer segments – who will be using and/or paying for your product or service

Distribution channels – how you will reach customers and offer them your value proposition

Customer relationships – the type of relationship you plan to establish with your customers

Revenue streams – what people will pay for your product and how they will pay for it (transaction
fee, subscription, etc.)

Resources – what you need in order to deliver on your business proposition

Activities – what you need to do to implement your business model

Cost structure – the costs involved in delivering on your business model

Business Model Canvas
NETFLIX Business Model
 Start-ups

 A startup is a venture that is initiated by its founders around an idea or a problem
with a potential for significant business opportunity and impact.

 An innovative new business based on perceived demand for its product or service
is called a startup company.

 It is the intention of a startup to grow rapidly by addressing a market need.

 An innovative startup aims to fix deficiencies in existing products or create

entirely new categories of goods and services, disrupting entrenched business
practices for entire industries (which is affordable, accessible and available for
large population).

 That’s why many startups are known within their respective industries as
“disruptors.”
 Startups Funding

Startups generally raise money via several rounds of funding:

• There’s a preliminary round known as bootstrapping, when the founders, their

friends and family invest in the business.

• After that comes seed funding from so-called “angel investors,” high-net-worth

individuals who invest in early stage companies.

• Next, there are Series A, B, C and D funding rounds, primarily led by venture

capital firms, which invest tens to hundreds of millions of dollars into companies.

• Finally, a startup may decide to become a public company and open itself up to

outside money via an IPO, an acquisition by a special purpose acquisition
company (SPAC) or a direct listing on a stock exchange.
 Benefits of Start-up

 Flexible schedule

 Variety of tasks

 Creative environment

 Professional growth

 Friendly team

 Career opportunities