What is Entrepreneurship

1.A theory of evolution of economic

activities.
2.A continuous process of economic
development.
3.An ingredient of economic
development.
4. Essentially a creative activity or
an innovative function.
5. A risk taking factor which is
responsible for an end result.
 Cont……………………………
 Usually understood with reference to
individual business.
 The name given to factor of production,
which perform the function of
enterprise.
 Creates awareness among people about
economic activity.
 Generates self employment and
additional employment.
 Why entrepreneurship?
 To improve backwardness of the people.
 Economic development of the region.
 To analysis resource utilization.
 Proper utilization of human potentiality.
 Special attention to take up new activities.
 To create self employment and
generation of employment opportunities.
 Better Economic gain.
 Eradication of regional imbalances.
 “Entrepreneurial Traits”
 Entrepreneurial Traits
 McClelland has summarized the
following characteristics of successful
entrepreneurs:
 Pro-activity
 Achievement orientation
 Commitment to others
 Pro-activity
 Initiative
(does things before being asked or
forced by events)
 Assertiveness

(confronts problems with others

directly. Tells others what they have
to do)
 Achievement orientation
 Sees and acts on opportunities
(seizes unusual opportunities to start a
new business, obtain financing, land,
work, space or assistance)
 Efficiency orientation

(looks for or finds ways to do things

faster at less cost)
 Achievement orientation-contd.
 Concern for high quality work
(states a desire to produce or sell a top-or
better quality product or service)
 Systems planning

(breaks a large task down into subtasks or

sub goals. Anticipates obstacles, evaluates
alternatives)
 Monitoring

(develops or uses producers to ensure that

work is completed or that work meets stds.
of quality)
 Commitment to others
Commitment to work contract
(makes a personal sacrifice or expands
extra ordinary effort to complete a
job. Pitches in with workers or works
in their place to get job done)
 Commitment to others-contd.
 Recognizing the importance of
business relationships
(acts to build rapport or friendly
relationships with customers. Sees
interpersonal relationships as a
fundamental business resource.
Places long term goodwill over short
term gain)
 Entrepreneurial background and
characteristics
 A number of studies have focused on
the other areas of childhood family
environment, education, age and
work history
 Entrepreneurs have been found to
have a few personality, background
and other characteristics in common
 Common characteristics of
successful entrepreneurs
 High need for achievement
 Internal locus of control

(feel that they control their fate largely

through their own efforts)
 High tolerance for ambiguity

(tolerance of ambiguous and ever

changing environment)