Institute: University School of Business

Department: AIT-MBA
Subject: E-Commerce Management and Marketing

Entrepreneurship Management
Entrepreneurship, Steps in Entrepreneurial process, Types of Entrepreneurs, Role of an
Entrepreneur, Barriers to entrepreneurship, Driving forces of an entrepreneurs to go international,
Entrepreneurship Management, Entrepreneurship and Management, Opportunity Recognition,
Entrepreneurial thinking

Faculty Name : Dr. Lalit Singla (Associate Professor)

Email : lalit.e15711@cumail.in
Entrepreneurship
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. The most prominent example of entrepreneurship is the
starting of new businesses.
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 of Entrepreneur

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.
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.
Characteristics of Entrepreneurship

Not all entrepreneurs are successful; there are definite characteristics that make entrepreneurship
successful. A few of them are mentioned below:

 Open-Minded- In a business, every circumstance can be an opportunity and used for the
benefit of a company. For example, Paytm recognised the gravity of demonetization and
acknowledged the need for online transactions would be more, so it utilised 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.
Types of Entrepreneurship

1) 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.
2) 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.
3) 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 organisations either buy innovation enterprises or attempt to construct the product internally.
4) 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.
Classification According to Function

1. Innovating Entrepreneur
Innovative entrepreneur is one who is always focussed on introducing a new project or
introducing something new in the venture already started. They constantly observe the
environment around them; collect information and analyse them in order to contribute something
a new in the venture. Their innovation may take the form of brand new product, upgraded
product, discovering untapped market, new method of production, reengineering of existing
product, new method of distribution of product, simplification of complex process, adoption of a
distinct process and so on.
2. Imitative Entrepreneur
Imitative entrepreneur is one who simply imitates existing skill, knowledge or technology
already in place in advanced countries. A simply reengineer or redesign the products developed
in advanced countries and produce a version suited to their local conditions. For example, many
electronic products invented in advanced countries are simply reengineered in developing
countries. Similarly expensive medicines developed in advanced countries are simply
reengineered by changing the composition of elements or changing the process of production.
Classification According to Function

3. Fabian Entrepreneur
These entrepreneurs are said to be conservatives and sceptical about plasticising any change in
their organisation. They are of risk-averse type. They do not simply change to the changes
happening in the environment. But they adapt themselves to the changes only as a last resort
when they fear that non adaptability to changes will inevitably lead to loss or collapse of the
enterprise. Their dealings are governed by customs, religion, tradition and past practices handed
down to them by their ancestors. They would like to follow in the footsteps of predecessors.
Example: Kodak
4. Drone Entrepreneur
Drone entrepreneurs are those who are totally opposed to changes unfolding in the environment.
They used to operate in the niche market. They are similar to fabian entrepreneur in doggedly
pursuing their conventional practices. The main difference between fabian entrepreneur and
drone entrepreneur lies in the fact that while fabian entrepreneur adapts to changes eventually as
a last resort, drone entrepreneur never adapts himself or herself to change, Example: Gopal Tooth
powder
Stages of Entrepreneurship Development

1. Finding a business idea:

This is the first and most important step of entrepreneurship development. You need to have a
great business idea to start a successful enterprise.
There are many ways to come up with a business idea, but the best way is to think about what
you’re passionate about and what needs are not being met in the marketplace.
2. Building a team:
Once you have a business idea, you need to start building a team of like-minded individuals
who will help you turn your idea into a reality. This team will include people with different
skillsets and expertise, so it’s important to choose wisely.
3. Creating a business plan:
This step is crucial for any entrepreneur. A business plan will help you map out the goals and
objectives of your new business, as well as the strategies you’ll use to achieve them. Without a
solid business plan, it will be very difficult to make your business successful.
Stages of Entrepreneurship Development

4. Raising capital:
To get your business off the ground, you’ll need to raise money. This can be done through
investment from friends, family, or venture capitalists.
5. Launching your business:
Once you have a team in place and a business plan created, it’s time to launch your business.
This is when all of your hard work will finally pay off.
6. Growing your business:
After you’ve launched your business, it’s important to continue growing it. This can be done by
expanding your product line, entering new markets, and acquiring other businesses.
7. Exiting your business:
Eventually, you may want to sell your business or take it public. This is the final step of
entrepreneurship development, and it can be a very lucrative one if done correctly.
Barriers of Entrepreneurship

1. Inadequate Market Experience

The most common mistake made by a great number of entrepreneurs is beginning their business without
having adequate knowledge about the respective field. It is essential to get a suitable amount of
experience related to the industry by working in the required sector. Choose by understanding the nature
of the market instead of rushing into this business by seeing someone successful.
Additionally, getting adequate expertise will help achieve success in the career. Although we understand
that there are risks associated while starting the business, it is still important to gain the required set of
knowledge to create a strong base.

2. Human Resource Problems

There is no way that a person can perform everything on their own. The same goes for entrepreneurship,
where a business can’t be run alone. It is essential to have human resource support for achieving success
in this business. People who have the required set of experience and knowledge will agree that a team
needs top-level productivity and efficiency to achieve well in this business.
The first thing to address is understanding that employees need to have a vision that suits them.
Additionally, never perform things like paying a huge amount of money for the sake of experienced
employees. Just go for the knowledge and try finding knowledgeable people for your startup. You need to
understand that there are limited finances while starting a new business. That’s why, it is ideal for
managing the human resource adequately for all the works.
Barriers of Entrepreneurship

3. Managing Finances
A great block while beginning the startup is to manage the finances that make things difficult.
There are lots of ideas that come to mind while starting a business. No matter what kind of idea
you have, there is a need for stable finances and funding for making sure the process stays
smoother.
It is critical to perform the first step for beginning the journey of entrepreneurship ideally. Having
a wise investment will ensure you can successfully tackle one of the most difficult barriers of
entrepreneurship.
4. Non Strategic Planning
A very common barrier that entrepreneurs face is inadequate planning regarding strategies.
Thousands of people built a business just as a hobby without creating a long-term vision. Bad
planning results in failure that should be avoided at any cost. It is the main reason most
businesses shut down within the first year of their operation. There is a need for a solid passion
for being an entrepreneur to create a strategic vision for reaching the goals.
It is strongly suggested to create a strategic plan that begins from the target market to the proper
use of human resources. All these things are needed for creating a business that attains success in
the market.
Barriers of Entrepreneurship

5. Lack of Capacity
It needs to understand most entrepreneurs who can’t use the opportunities that are presented to
them. The reason behind this is a lack of education, knowledge, willingness, and other essential
things. In simple words, we will say the factor of zeal and motivation misses most entrepreneurs.
Apart from issues related to risks and the market for beginning a business, there is a need to have
tons of hard work and passion for handling everything passionately. It is very helpful in reaching
new heights in the art of entrepreneurship.

6. Political Barriers
The political barrier also plays a great role in the success of an entrepreneur. There is a need to
check out the policies of the government and what kind of incentives they are offering. After all,
the government of every country doesn’t provide social-economic facilities to entrepreneurs.
Additionally, the interest in economic development also needs to be taken seriously.
The political factors need to be carefully evaluated before starting your journey in the world of
entrepreneurship. It will be very useful in achieving business success.
Barriers of Entrepreneurship

7. Not Having Enough Practical Knowledge

Many youngsters believe that having an educational background is adequate for succeeding in
the world of entrepreneurship, but the reality is fully different from what they thought while
studying in college. There is a strong need for practical knowledge for tackling the competition
that this universe offers.
It is very helpful in staying relevant for different market cycles. So, it is strongly suggested to
gain practical knowledge before thinking about trying hands in the entrepreneurial world. It is
one of the major barriers of entrepreneurship about which every entrepreneur should think
carefully before trying their hands in the respective industry.
8. Not Having the Right Team
A business can only become successful when there is the right sort of people available in your
team. There is no way everything can be done on your own. The biggest issue that start-ups face
is not finding good employees. It turns out to be the major hit that most of them have to deal
with.
Additionally, it is common to see most start-ups works smaller that further make finding a job
difficult. There is a need for making the required measures so that you end up having people who
can boost your vision and help in boosting business.
Barriers of Entrepreneurship

9. Corrupt Business Problems

A very common barrier that entrepreneurs have to feel has business situations where the corrupt
environment doesn’t inspire the young employees. The government has unfriendly ties with lots
of countries that make things inconsistent for the start-ups. One premier example of an unhealthy
and non- supportive barrier is Russia, where the new businesses have to feel lots of issues.
It is strongly suggested to check out the stringent compliance and regulations before beginning
the business. This barrier affects the success of a business on a pretty higher level, so it is
essential to take things seriously.

10.Reaching More People

The next barrier that most entrepreneurs have to deal with is facing difficulties in taking their
brand to different people. It doesn’t matter which country you live in; a startup can lose its path if
a brand doesn’t reach the required community. It includes experts and an audience for creating a
successful foundation.
It is essential to create a strong foundation to achieve all your goals in the later stage. We suggest
everyone consider the impact of this barrier on their success. It is good to develop effective jobs
for maximizing your goals.
Barriers of Entrepreneurship

11. Fear of Failure

Entrepreneurship is all about the state of your mind. If you have clear vision in your mind then there can
never be any fear but when entrepreneurs start his/her journey then they are always in the thinking of the
initial finance, investors, ideas and many more things. All these things create pressure on mind and make
any human being very tensed. By this kind of approach fear of failure is likely to come sooner or later.

12. Few Opportunities

In the starting of every business, one cannot see all the opportunities. These opportunities come when your
business starts growing. Without its growth, one will always be in doubt that what is going to happen with
his business. These fewer opportunities are the very big factor and a barrier to entrepreneurship.

13. No training
If you are trained for something then you must be the one who is found in companies and you must be
working for them. Entrepreneurs are never the one who is trained for some specific job. They are the one
who are a complete package of knowledge of all the fields.
This thing looks lucrative in just reading because when it comes to practicality, one must have some
training in specific thing so that he could start from somewhere. The very big example of training is Mark
Zukerberg as he was trained in coding.
Barriers of Entrepreneurship

14. No Backup
It’s always the best thing to have some backup before you start diving into the massive field of
entrepreneurship. But most of the entrepreneurs start their business without any backup. And this creates a
barrier for them as they are always in a fear of failure.
15. No Technical Skills
These days, all the business ideas are related to tech. If you are a technology guy then it is very easy for
you to start a business. Examples of technical guys are Steve Jobs, Larry Page and Mark Zukerberg. But if
you are not from technical background then there will be many problems that you are going to face due to
less technical skills.
16. Parental Pressure
If you are from India, then there is one more barrier for you that is parental pressure. We are not saying that
parents are your enemies but for sure they are going to give you many suggestions about your business
idea that they don’t know and sometimes they will try to stop you for doing business and will force you to
go for a job.
17. Lack of Motivation
Believe us or not, MONEY is the biggest Motivator when it comes to business. In starting when you are
building your project, you cannot expect money from it. Here comes the biggest barrier for you to be
motivated even when there is no money coming out from your business.
Overcoming Barriers of Entrepreneurship

 It is suggested that entrepreneurs should target creating a network with a similar vision.
Having deep connections in today’s virtual world can be very handy in those situations.
 Always create a relationship with respect and thoughtfulness for all the aspects of the
business. It will turn out to be real wealth as the community is the currency that matters
most.
 You should never see the world from your eyes as not thinking about others can make things
frustrating. Always see things with the eyes of other individuals for better results.
 The right leadership involves showing the right methods using which a team can work
together. It is very crucial to have cooperation when compared to the competition. A team
who work with cooperation will make things efficient for sure.
 Staying in the game is pretty hard, especially when things get rough. The winners are the
ones who play the game with love and beat the challenge.
 There is a need for unconventional thinking in utilizing the power of trends. The
entrepreneurs have to understand the market by exploiting the opportunities adequately.
Role of Entrepreneurship in Economic Development

1. Raising the Standard of Living

One of the most significant benefits of entrepreneurship in economic
development, is that it raises the standard of living. By creating new businesses
and jobs, entrepreneurship improves the quality of life for both individuals and
communities, enabling paths for wealth creation.
Entrepreneurship enhances employability, which in turn drives economic
competitiveness. The result is better products and services, and ultimately,
happier consumers.
2. Creation of New Jobs
Entrepreneurship is a significant source of job creation. By starting new
businesses, entrepreneurs create employment opportunities for themselves and
others. This helps to reduce unemployment rates and improve the overall
economic well-being of the community.
According to the Global Entrepreneurship Monitor, entrepreneurship is
responsible for creating millions of jobs worldwide. This is particularly important
in developing countries, where job creation is critical for economic growth and
poverty reduction.
Role of Entrepreneurship in Economic Development

3. Helps To Eliminate Poverty In Local Areas

Entrepreneurship can help to eliminate poverty in local areas. By creating
new businesses and jobs, entrepreneurship provides opportunities for
people to improve their financial situation.
This is particularly important in developing countries, where poverty is
often widespread. Entrepreneurship provides a way for people to improve
their economic well-being, which can ultimately lead to social change and
overall development.

4. Helps With Community Development

Entrepreneurship is important as it also plays a critical role in community
development. By creating new businesses, entrepreneurs contribute to the
economic vitality of their communities. This can lead to increased
investment in the community, which can result in improved infrastructure,
services, and amenities.
Entrepreneurship can also help to foster a sense of community pride and
ownership, which can contribute to the overall development of the
community.
Role of Entrepreneurship in Economic Development

5. Provides Economic Independence

Entrepreneurship provides economic independence for individuals, towns, and countries. By
creating new businesses, entrepreneurs are able to generate income and contribute to the overall
economic well-being of their community. This is particularly important for developing countries,
where economic power is often concentrated in the hands of a few large corporations.
Entrepreneurship provides an opportunity for individuals and small businesses to compete in the
market, which can lead to increased economic diversity and stability.

6. Benefits Of New Startups Entering the Market

New startups entering the market drive innovation and competitiveness. They challenge existing
businesses to improve their products and services, which ultimately benefits consumers.
The importance of new startups cannot be overstated, since they provide new job opportunities
and contribute to overall economic growth. They are essential for creating a dynamic and vibrant
business environment, which fosters innovation and growth. Without new entrants, existing firms
aren't motivated to innovate and can increase prices due building a large scale monopoly in the
industry.
Role of Entrepreneurship in Economic Development

7. Encourages Capital Investment

Entrepreneurship encourages capital investment in both cities and countries. By creating new businesses,
entrepreneurs attract investment from both local and foreign sources. This can even unlock their ability to
access different labor markets and even enter foreign markets further down the line.
This investment can contribute to the overall economic growth of the community, as well as provide new
opportunities for entrepreneurs and job seekers. Capital formation is essential for creating a sustainable
and thriving business environment.

8. New Entrants Drive Market Innovation

Innovative entrepreneurship is the driving force behind market innovation. Entrepreneurs are known for
their ability to identify gaps in the market and come up with solutions to fill those gaps. This not only
benefits the entrepreneur but also the entire economy.
By focusing on business innovation, such as developing new solutions, products/services, or improving
existing ones, entrepreneurs increase competition, leading to a decrease in prices and an increase in
quality.
Moreover, innovative entrepreneurs are also responsible for keeping costs low, which benefits the overall
economy. By introducing new and more efficient production methods, entrepreneurs are able to decrease
the cost of production. This leads to an increase in supply, which in turn leads to an increase in exports.
This is particularly important for developing countries that rely heavily on exports for their economic
growth.
Role of Entrepreneurship in Economic Development

9. Optimal Use of Resources

Entrepreneurs are also responsible for the optimal use of resources. By identifying new business
opportunities and introducing new production methods, entrepreneurs are able to create more efficient
systems for utilizing resources. This not only benefits the entrepreneur but also the entire economy, as it
leads to a decrease in waste and an increase in productivity.
Furthermore, entrepreneurship can also lead to the creation of new markets. By introducing new products
or services, entrepreneurs are able to create demand where none existed before. This can lead to the
development of entirely new industries, which can further contribute to the overall development of the
economy.

10. Increases Per Capita Income (PCI) and Gross National Product (GNP)
Entrepreneurship is a key driver of economic growth and development. By creating new businesses and
jobs, entrepreneurship leads to an increase in gross national product and per capita income. This is
particularly important for developing countries, where poverty and unemployment are major issues.
In fact, studies have shown that entrepreneurial activity is positively correlated with economic growth.
According to the European Research on Management and Business Economics, countries with high levels
of entrepreneurial activity tend to have higher rates of economic growth.
Moreover, entrepreneurship also plays an important role in promoting balanced regional development. By
creating new businesses and job opportunities in areas that were previously underdeveloped,
entrepreneurship can help to reduce regional disparities and promote overall development.
Entrepreneurial Management

Entrepreneurial management comprises setting particular goals for the new venture. Setting
particular goals may help the entrepreneur control their revolution and to accomplish a certain
result. Entrepreneurial management is the theory of utilizing the imaginative and creative
abilities, skills and proficiencies to adeptly open and manage a start-up company. It is a means
of resolving a group problem through a distinctive and money-making business solution.

An entrepreneur is every time seen as an investigator. He/she thinks about a big problem and
discovers a creative solution to it. Efficiently, as it is known that people pay back equally if the
business plan gives a solution to their critical issues, entrepreneurial management is highly
productive.

For example, the app innovator may set up a goal of 12,000 downloads by the end of the year.
The entrepreneur bid then engrossed on marketing, alternately developing additional features
for the app.
Importance of Entrepreneur Management Plan

Sets an Idea in Place When Starting a New Business

While starting a new business, you have to come up with a business idea, you also need to stiffen the identity of
the business, like what services or products you will sell, where you will do business, and who will work for your
company. A management plan can help provide instruction in this process, which can also help keep away from
mistakes along the way.

To Do Necessary Research
You might generate a business plan ahead of time when deciding to open a business. You might also create a
business plan if you intend to take your existing business in a new direction. By writing out the features and
finances of the new plan, you can control a shift in money-making. This includes defining your market, identifying
who your customers are and how you will reach them.

Assess Competitors and Find Your Audience

Another part of creating a management plan is investigating the current companies in the production in which you
want to work. By specifying competitors and where they are not generally reaching customers, you can better
forecast how you will reach them. It can also help you choose your target viewers.

Sets Objectives for Employees and Managers

Setting and measuring objectives will certify that employees and managers are clear on their duties. This can also
help you choose the right employees for your business by setting clear prospects and objectives.
If you change or update your targets, a management plan can help share these new objectives, providing formation
and responsibility.
Importance of Entrepreneur Management Plan

Sets Goals for You as an Entrepreneur

Setting clear goals is also obligatory for you as an entrepreneur. You can use a management plan to list a particular
target that you want to achieve, together with target dates. This can provide you with a guide to construct your daily
commitment, while also providing you with responsibility as an entrepreneur.

Regulates When New Employees Are Needed

As you expand your business and increase your income, you will need extra employees to help with the daily tasks.
But, engaging people before you're ready to enlarge can decrease your profits. A business plan can help you assess
the right time to bring on new staff. It can also help with setting clear duties and assumptions for each position. You
can also use your plan to regulate what skills to look for when hiring.

Help You in Making Important Business Decisions

Decision-making is a major task as an entrepreneur. Some decisions, like when to hire charge on a new space or
expand the business, are not always easy to make. With a clear business plan in place, you can control the certain
times or goals you must meet to make these major decisions.

To Determine Success of the Business

A business plan sets clear targets, which can help you measure success. Including key performance measures allows
you to know how to measure your advancement toward your goals. You can use this information to regulate what
areas of the business are doing well, versus which areas need development. You can also use it to help recognize the
need for new targets or plans.
Key Elements of Entrepreneurial Management
Innovation
Every successful entrepreneur must be innovative in some way or the other and he should be allowed to see the
demand for a particular good or service in the market because here is what makes them distinct from other
entrepreneurs and their progress is even more money-making. When an entrepreneur is innovative, he sees new
opportunities approaching in distinct places where one cannot even assume.
Organization
The organization is one of the key factors of successful entrepreneurship. In the absence of organization,
everything will become disorganized and inconvenient which further will cause losses, reducing goodwill,
aggrieved customers, and tension to the staff due to which the workers may leave the company.
Decision Making
Entrepreneurs must observe every decision very carefully because they make a lot of decisions every day and are
generally responsible for being at risk and should learn from their past mistakes. Decision-making could be a skill
that normally comes easily to entrepreneurs who are high-risk takers in the business world.
Risk Bearer
An entrepreneur needs to appreciate that risk can’t be totally gotten rid of from a business, so he should be ready
for its outcome as well. It can be that the consumers won’t seem to be pleased with the commodities or services
provided or even the participant can provide the similar thing with better attributes and better price or there might
be changes in the government policies.
Vision
Every successful entrepreneur has this one plan in his youth that he was anxious about, but with time that fire
fades away. Good entrepreneurs have that fire and vision in them because without vision and willingness they
cannot grow. Unluckily, young entrepreneurs have these great sights which hardly ever change into an idea.
Steps Involved in Successful Entrepreneurial Management

Build A Great Team

People are organized by nature. We just do better in groups. That initial strength holds true in the business world too. There is
power in numbers. Look for skilled people. Find people who share your sight.

Anticipate and Plan for Growth

A Bonsai Tree must grow for three to five years before it can even begin to be trained. Those who grow the trees don’t wait to
plan, even so. They develop a strategy to establish the essential growth and features of the trees. A business is very similar. If you
don’t get ahead of your growth, you can’t grow profitably or fruitfully.

Set Expectations
In every aspect of the business, expectations need to be set. You must start by positioning your own expectations and controlling
what you are inclined to describe as success. You’re also going to need to set expectations for the team. Recognizing benchmarks
and observing them can lift the confidence of your team considerably.

Invest Appropriately
Spending money is one of the least beloved activities for entrepreneurs and business owners (compared to making money, which
is one of the most beloved). But investing is distinct from spending. Investing suggests a return, and returns can be appraised. So,
try not to spend, but never stop investing. Invest in instructing, exchanging, identifying, internal marketing, team evolution and
culture.

Don’t Believe the Hype

Sometimes, you may hear terrible warnings about a bothering shift in your industry. In digital marketing, we frequently hear that
SEO is dead, or that Google’s new update will destroy online marketing. We still some day hear that definite industries or
businesses will see no interest from online marketing. Don’t believe the hype.
Difference Between Entrepreneurship and Management

1. Motivation
In terms of motivation, management, and entrepreneurship are different. Entrepreneurs frequently have a
burning desire to make their own decisions. Also, run their businesses, and start something new. The
possibility of accomplishing their objectives and significantly improving the industry they have chosen
motivates them. Steve Jobs was driven to change how people interacted with computers and mobile
devices is a good example of this.
Managers are motivated by the business’s success. They are motivated by the chance to manage teams.
Accomplish organizational objectives, and contribute to the general expansion and prosperity of the firm.

2. Risk-taking
The degree of risk-taking involved in entrepreneurship and management is one obvious difference. Risk is
accepted by entrepreneurs as an essential component of their journey. To follow their entrepreneurial
ideas, they voluntarily assume risks on the financial, personal, and professional fronts. They invest their
resources into their companies to turn a profit. For instance, by expanding into new markets and founding
new businesses, Virgin Group founder Richard Branson has taken several risks during his entrepreneurial
career.
Managers, on the other hand, frequently work in well-established firms where the risks are substantially
smaller. They are in charge of minimizing risks, guaranteeing operational effectiveness, and boosting
profitability within set limits.
Difference Between Entrepreneurship and Management

3. Ownership
Another aspect that sets entrepreneurship apart from management is ownership. Entrepreneurs feel in
charge of and ownership over their companies. They are free to decide what to do, influence the
company’s course, and profit from their labour. They acknowledge full responsibility for the
accomplishment or failure of their business actions. One person who has a strong sense of ownership in
his company is Elon Musk. He is propelling them ahead with his vision and leadership.
Managers, on the other hand, operate within the confines of an existing organization and answer to
stakeholders. Although they may have authority and decision-making ability within the boundaries of
their jobs, the shareholders or business owners retain ultimate ownership.

4. Decision-making
Making decisions differently in management and entrepreneurship is another difference. Key business
choices can be made independently by entrepreneurs. They are in charge of establishing strategic
objectives, seeing opportunities, and overcoming obstacles. They are adaptable enough to change their
strategy fast in response to shifting market conditions. For instance, Mark Zuckerberg, made crucial
choices early on that influenced the company’s development and success.
Managers base their choices on the policies and guidelines of the organization they work for. They
frequently collaborate with other parties that have an interest in the business. They follow established
protocols. Also, they make sure that their objectives are those of the company.
Difference Between Entrepreneurship and Management

5. Creativity and Innovation

Entrepreneurship and management differ significantly in terms of creativity and innovation.
Entrepreneurs thrive on coming up with fresh concepts, questioning the existing quo, and
offering ground-breaking solutions to issues. They frequently lead the charge in causing industry
disruption and introducing new goods or services to the marketplace. By revamping an
established sector, James Dyson, the creator of the bagless vacuum cleaner, exemplified
entrepreneurial inventiveness.
Managers, on the other hand, tend to place more emphasis on streamlining current procedures,
enhancing efficiency, and utilizing tried-and-true best practices to accomplish organizational
objectives, even if they may also encourage creativity and innovation within their teams.

6. Vision
Entrepreneurs have a distinct vision for their company, seeing cutting-edge goods or services that
upend markets and have a beneficial effect. Like Steve Jobs, who transformed technology with
user-friendly designs, they are the architects of their aspirations. Managers, on the other hand,
focus on executing the vision set by the entrepreneur or top-level management, aligning team
efforts towards achieving company objectives, and translating the vision into actionable
strategies for employee implementation.
Difference Between Entrepreneurship and Management

7. Long-term Perspective
Entrepreneurs have a long-term perspective, aiming for sustainable ventures and patience. Like Elon
Musk’s SpaceX and Tesla enterprises, they put time, effort, and resources into them. While concentrating
on accomplishing short-term objectives and fulfilling organizational targets, managers, on the other hand,
have a shorter-term view. They oversee daily operations and ensure smooth business operations.
8. Flexibility
Entrepreneurship thrives in a flexible and adaptable environment, adapting to market feedback and
emerging opportunities. They embrace uncertainty and view challenges as growth opportunities. Airbnb
founders demonstrated flexibility by pivoting from renting air mattresses to offering accommodation in
people’s homes. Managers, on the other hand, work within established systems and processes, focusing on
optimizing resources and structures for efficiency and effectiveness. Both entrepreneurs and managers
need to be agile and responsive to navigate the dynamic business landscape successfully.
9. Skillset
Diverse talents are needed for management and entrepreneurship to successfully negotiate the difficulties
of beginning and expanding a firm. To create distinctive goods or services, entrepreneurs require
creativity, invention, problem-solving, risk-taking, leadership, and strategic thinking. To lead and manage
teams while concentrating on planning, organizing, delegating, and encouraging personnel, managers
require good organizational and interpersonal abilities. They coordinate resources, set priorities, and
ensure efficient task execution. While not as risk-taking and creative as entrepreneurs, they possess
excellent communication and decision-making abilities.
Difference Between Entrepreneurship and Management

10. Resource Allocation

To maximize their influence, early-stage entrepreneurs must efficiently use resources like financial assets,
time, and skill. For instance, Jeff Bezos spent money on infrastructure, technology, and customer service
to favor long-term development above immediate income. Managers in established organizations focus
on optimizing resource allocation to achieve operational efficiency and maximize results. They work with
predefined budgets and resources allocated by higher-level management, balancing competing priorities
and ensuring teams have the necessary tools and support to achieve their objectives.
11. Focus
Entrepreneurs focus on strategic direction, identifying opportunities, and making critical decisions across
various functions, like marketing, operations, finance, and human resources. They build and grow their
venture from the ground up, like Facebook’s founder Mark Zuckerberg. Managers, on the other hand,
have a narrower focus on specific areas, such as marketing, operations, or finance, focusing on tasks,
supervising teams, and achieving departmental objectives. They optimize processes, allocate resources
efficiently, and ensure team efforts align with business goals.
12. Networking and Relationship Building
Entrepreneurs and managers both prioritize networking and relationship building to gain insights,
collaborate, and build a strong support system. Entrepreneurs engage with customers, partners, investors,
and industry experts, attending conferences, events, and social media platforms. Managers, on the other
hand, focus on professional circles and industry networks, fostering relationships with key stakeholders to
facilitate smooth operations and collaboration. Effective networking helps managers stay updated on
industry trends, gather market intelligence, and leverage resources when needed.
Difference Between Entrepreneurship and Management

13. Financial Responsibility

Entrepreneurship involves managing financial resources, budgeting, forecasting, and ensuring
profitability for businesses. They make strategic decisions about pricing, cost control, and
investment allocation, taking calculated risks and assuming the consequences of financial
outcomes. Managers, on the other hand, have financial responsibilities within their functional
areas but ultimately have the ultimate accountability. They work with budgets and targets
provided by higher-level decision-makers, optimizing resources, managing costs, and
contributing to departmental financial performance. Managers monitor financial metrics to
ensure departments operate within budget and meet financial objectives.

14. Workload and Time Commitment

Entrepreneurship involves intense workloads and long hours, particularly in the early stages of a
business. They work tirelessly to develop strategies, handle administrative tasks, acquire
customers, and manage operations. Entrepreneurs may sacrifice personal time and work on
weekends and holidays to ensure business success. Managers have more defined responsibilities,
with designated work hours and a structured scope. They delegate tasks, oversee operations, and
ensure targets are met within the allotted time frames. Managers’ workload is generally more
predictable and manageable compared to entrepreneurs.
Difference Between Entrepreneurship and Management

15. Accountability
Entrepreneurs hold high personal accountability for their ventures’ success or failure, taking full
responsibility for decisions, actions, and business performance. They must be adaptable and learn from
mistakes, facing risks and rewards. Managers are responsible for achieving targets, meeting deadlines,
and ensuring team members fulfil responsibilities. They are accountable to superiors, shareholders, and
business objectives, delivering results and effectively managing resources.
16. Reputation
Entrepreneurship focuses on producing value, resolving issues, and disrupting markets and enables people
to establish their brands via creative ideas and venture success. Steve Jobs is well known for his forward-
thinking ideas. The leadership style, decision-making abilities, and project success of managers have an
impact on their reputation. Former Manchester United manager Sir Alex Ferguson is famous for his
distinguished career in management and several titles.
17. Growth and Scaling
Entrepreneurship involves growing and scaling businesses through strategies like product diversification,
geographical expansion, and entering new markets. Successful entrepreneurs like Jeff Bezos with Amazon
have successfully scaled their businesses. Managers, on the other hand, play a crucial role in facilitating
and managing company growth by developing growth strategies, implementing processes, and ensuring
scalability. They work closely with entrepreneurs or senior executives to execute growth plans, allocate
resources, and coordinate teams, bringing stability and structure to the growth process.
Difference Between Entrepreneurship and Management

18. External Relationships

Entrepreneurship relies on establishing and nurturing external relationships with stakeholders like
investors, suppliers, and customers to support their ventures. These relationships are crucial for obtaining
support, expertise, and market access. Managers, on the other hand, focus on establishing relationships
within their assigned roles to facilitate smooth operations and achieve business objectives. They negotiate
contracts, secure partnerships, and resolve issues that impact their departments’ performance, ensuring the
success of their managerial responsibilities.
19. Independence
Entrepreneurship provides greater independence than management, allowing entrepreneurs to pursue their
ideas, set their direction, and make autonomous decisions. They adapt to market changes and shape
ventures according to their vision and values. Managers operate within the framework set by
entrepreneurs or executives, ensuring alignment with company objectives and adhering to guidelines and
policies.
20. Rewards
Entrepreneurship offers financial rewards and personal wealth through profits, recognition, fulfillment,
and meaningful creation. However, it also carries the risk of financial losses if ventures fail. Managers
receive rewards in the form of salaries, bonuses, and benefits, determined by their position,
responsibilities, and department performance. Recognition and career advancement opportunities are also
available. Management rewards are more stable and predictable, compared to high returns or losses in
entrepreneurship.
Entrepreneurial thinking

Entrepreneurial thinking refers to the mindset and approach that individuals use to identify and
pursue opportunities for innovation and growth.
It involves taking calculated risks, being proactive and resourceful, and continuously seeking
out ways to create value and solve problems. Entrepreneurial thinking is essential for anyone
looking to start their own business, but it is also valuable in any career, as it helps individuals
to think outside the box, adapt to change, and take ownership of their work.
Characteristics of Entrepreneurial Thinking

Opportunity identification
Entrepreneurial thinkers are always on the lookout for new ideas and opportunities to create value. This may
involve identifying a need or gap in the market, or finding ways to improve upon existing products or services.

Risk-taking
Entrepreneurial thinking often involves taking calculated risks in order to pursue new ideas or opportunities. This
may mean investing time and resources into an uncertain venture, or stepping outside of one’s comfort zone.

Proactivity
Entrepreneurial thinkers are proactive and take the initiative to make things happen. They don’t wait for
opportunities to come to them; they go out and create their own.

Resourcefulness
Entrepreneurial thinkers are adept at finding creative solutions to problems and making the most of the resources
at their disposal. They are not easily discouraged by setbacks and are able to adapt and pivot as needed.

Continuous learning
Entrepreneurial thinkers are lifelong learners who are always looking for ways to improve and grow. They are
open to new ideas and are willing to experiment and try new things.
Benefits of Entrepreneurial Thinking

Creativity and innovation

Entrepreneurial thinking encourages creativity and innovation, as individuals are constantly seeking out new ideas
and ways to create value. This can lead to the development of new products and services, as well as more efficient
and effective ways of doing things.

Job creation
Entrepreneurial thinking often leads to the creation of new businesses, which in turn can create job opportunities
for others. This can help to stimulate economic growth and reduce unemployment.

Problem-solving
Entrepreneurial thinkers are skilled at identifying and addressing problems, whether in their personal or
professional lives. This ability to find creative solutions to problems can be invaluable in a variety of situations.

Personal growth
Entrepreneurial thinking can also lead to personal growth and development. It encourages individuals to take
ownership of their work and to be proactive in seeking out new opportunities and challenges.

Social impact
Entrepreneurial thinking can also have a positive impact on society. By identifying and addressing social and
environmental issues, entrepreneurial thinkers can help to create a more sustainable and equitable world.
Strategies for Cultivating Entrepreneurial Thinking

Embrace failure
One of the key characteristics of entrepreneurial thinking is the willingness to take risks, and this inevitably means
that not all ventures will be successful. Rather than seeing failure as a negative outcome, embrace it as an
opportunity to learn and grow.
Surround yourself with entrepreneurial thinkers
Seek out individuals who embody entrepreneurial thinking and surround yourself with them. This could be
through joining a startup community, participating in entrepreneurial events or workshops, or simply seeking out
mentors or role models who embody this mindset.
Practice continuous learning
As mentioned earlier, entrepreneurial thinking involves a lifelong commitment to learning and growth. Seek out
opportunities to learn new skills and knowledge, and be open to new ideas and perspectives.
Take the initiative
Don’t wait for opportunities to come to you; go out and create your own. This may involve starting your own
business, but it can also involve seeking out new challenges or projects within your current job or organization.
Foster a growth mindset
Rather than seeing abilities as fixed traits, cultivate a growth mindset by embracing challenges and seeing setbacks
as opportunities to learn and improve. This will help you to approach opportunities with a sense of curiosity and a
willingness to take risks.
Entrepreneurial Thinking in the Workplace

Encourage risk-taking and experimentation

Create a culture that supports and rewards taking calculated risks and trying new things. This might involve
setting aside time and resources for employees to explore new ideas or pursue projects outside of their
normal job responsibilities.
Foster a culture of continuous learning
Encourage employees to seek out opportunities for learning and growth, and provide resources such as
training and development programs to support this.
Encourage collaboration and idea-sharing
Create an open and inclusive culture where employees feel comfortable sharing their ideas and collaborating
with others. This can help to foster a sense of ownership and empowerment among employees.
Provide opportunities for leadership and ownership
Give employees the opportunity to take on leadership roles and take ownership of projects and initiatives.
This can help to foster a sense of responsibility and encourage entrepreneurial thinking.
Embrace change and adaptability
Encourage employees to be adaptable and flexible in the face of change, and create a culture that supports
this. This might involve providing resources for employees to learn new skills or taking a proactive approach
to change management.
Opportunity Recognition

Opportunity recognition is a process through which entrepreneurs and businesses identify potential
methods of growing their ideas or beginning new ventures. It gives entrepreneurs the chance to
brainstorm for new and better ideas constantly. In addition, opportunity recognition makes the
available products and services better through continuous process improvement.

Meaning of Opportunity
An opportunity refers to a favourable situation that provides one with a chance to progress. It arises
when a person finds it possible to do something they have wanted to do. In the economy today,
entrepreneurs have managed to identify business opportunities and promote economic growth.
Opportunities have been identified through solving problems, changing trends, and technological
advances.
For entrepreneurs to make profits and remain relevant, they must possess the skills to recognize
possible opportunities. Opportunity recognition is an essential skill for an entrepreneur to have. It
encourages people and businesses to develop new products and skills and improve those that already
exist. Entrepreneurs with high opportunity recognition skills can create new products that satisfy the
existing market. It is an essential entrepreneurial skill because it helps an individual identify a niche
and solve a problem while gaining profits. As a result, entrepreneurs with high opportunity
recognition skills become successful and remain relevant in an economy.
Opportunity Recognition Process

The opportunity recognition process is a step-by-step procedure of how an entrepreneur identifies an

opportunity and makes it a viable business idea. Entrepreneurs must learn the industry's background,
recognize opportunities when they present themselves, and actively look for new opportunities. The role
of opportunity recognition in innovation is highly significant to an innovative firm. There are five stages
in the process of opportunity recognition. The opportunity recognition process helps equip them with the
skills they need in each step. They include getting the idea, identifying the opportunity, developing the
opportunity, evaluating the opportunity, and finally evaluating the team.

1. Getting the idea: The first stage is for the entrepreneur to get the business idea. An individual can
generate a business idea from a niche in the market. A niche is a gap left unfulfilled by those currently
serving the market. It provides a chance for other people to add value that was unmet. It allows the
new entrepreneurs to perform differently and compete with already existing businesses.

2. Identifying the Opportunity: Opportunity identification is when an individual realizes a business

idea with good returns that has not been discovered. It requires keen scanning of the business
environment, being alert about the changing information, and the ability to use the information
effectively.
Opportunity Recognition Process

3. Developing the Opportunity: Developing an opportunity requires the entrepreneur to modify

the idea to suit the current market needs. During this stage, research is conducted to identify
whether the business idea can be converted into an actual business. The entrepreneur begins the
process of acquiring resources for the opportunity.

4. Evaluating the Opportunity: Opportunity evaluation is the stage where the potential risks are
assessed. It is identified whether the risks will be worth the investments made. Profitability is
also scrutinized to find out how long the payback period is after an investment.

5. Evaluating the team: The final stage involves having a skilled team to bring the business idea
to realization. Employing capable people is crucial because they are the people who will work to
make the opportunity economically viable.

An entrepreneur must follow these stages systematically for a successful business idea.
Women Entrepreneurs

Women entrepreneurs may be defined as a woman or a group of women who initiate, organize
and run a business concern.

Schumpeter – “Women entrepreneurs are those women who innovate, initiate or adopt a business
activity”.

Government of India – “A woman entrepreneur is defined as an enterprise owned and controlled

by a woman having a minimum financial interest of 51 percent of the capital and giving at least
51 percent of the employment generated in the enterprise to women.”

Frederick Harbison – “Any women or group of women which innovates, initiates or adopts an
economic activity may be called women entrepreneurship”.

In short, women entrepreneurs are those women who think of a business enterprise, initiate it,
organize and combine factors of production, operate the enterprise and undertake risks and
handle economic uncertainty involved in running it.
Women Entrepreneurship – Common features

1. Most women with small income are likely to become entrepreneurs

2. Women with small facilities are likely to become entrepreneurs
3. A majority of women entrepreneurs are married. With the support of their husband they
accepted entrepreneurship.
4. Most spinsters face difficulties in obtaining financial support to start their enterprises.
5. A large number of women with little or no education and training enter into the business field.
6. Many women become entrepreneurs out of economic necessity.
7. Women’s sincerity and hard work is the cause for sustainability and growth.
8. Women entrepreneurs are security oriented rather than growth oriented
9. Most women prefer stabilization of income and minimization of risk
10. Business enterprises of women lack working capital, this causes low profit margin
Driving forces of an entrepreneur to go international

• Home market limited

• Overproduction

• Markets around the world

• Markets in emerging economies

• Market share growth

• The higher the profit rate, the better

• Stability in politics

• Communication and Technology

Thank You for Your
Patience Listening