Introduction To

Entrepreneur &
Entrepreneurship

Prof. Vikram Shinde

Introduction

 Any Nations overall development is depend

upon the economic development.
 Economic development can be affected by the
presence and attitude of the entrepreneurs in
the country.
 Entrepreneurship build a society by providing
employment and heightening the living
standard.
Introduction: Cont…..

The story of Japan

Japan: After The War
• Second Sino-Japanese War (July 7, 1937 –
September 9, 1945)
• About 40% of the nation's industrial plants and
infrastructure were destroyed
Introduction: Cont…..

 Japan Today.
• The economy of Japan is the third largest in the
world by nominal GDP.
• Fourth largest by purchasing power parity.
• The world's second largest developed economy.
• Third largest automobile manufacturing country.
• Largest electronics goods industry.
Meaning
 The term entrepreneur is a loanword from French and was
first defined by the Irish-French economist Richard
Cantillon as the person who pays a certain price for a product
to resell it at an uncertain price, thereby making decisions
about obtaining and using the resources while consequently
admitting the risk of enterprise.
 In general terms entrepreneur is a person who uses the
available resources, invest the capital, takes the risk and hope
for the profits.
 An entrepreneur is a person who perceives a need and then
bring together manpower, material and capital required to
meet that need.
Definitions
 1934: Schumpeter: Entrepreneurs are innovators who use a
process of shattering the status quo of the existing products
and services, to set up new products, new services.
 1961: David McClleland: An entrepreneur is a person with a
high need for achievement [N-Ach]. He is energetic and a
moderate risk taker.
 1975: Albert Shapero: Entrepreneurs take initiative, accept
risk of failure and have an internal locus of control.
 1985: W.B. Gartner: Entrepreneur is a person who started a
new business where there was none before.
Definitions: Cont….
 1803: Jean Baptiste Say: An entrepreneur is an economic
agent who unites all means of production- land of one, the
labor of another and the capital of yet another and thus
produces a product. By selling the product in the market he
pays rent of land, wages to labor, interest on capital and what
remains is his profit. He shifts economic resources out of an
area of lower and into an area of higher productivity and
greater yield.
Characteristics of Entrepreneurs

 They dream big.

 They have a passion for positive change.
 They have a clear vision of what they want to
achieve.
 They engage in calculated risk taking.
 They are self-directed and self-motivated.
 They are results-driven.
Characteristics : Cont…..

 They have a strong desire to be independent.

 They know how to sell. Business is all about selling.
 They have a powerful drive to accumulate wealth.
 They embrace fear.
 They exhibit tolerance towards ambiguity.
 They see opportunities where others do not.
 They are not afraid to make mistakes.
Characteristics : Cont…..

 They seek out help when needed.

 They have the willingness and capacity to persevere.
 Good interpersonal skills.
 Discipline.
 They keep their focus.
 They are flexible.
 They love what they do.
 Fulfilled with Experience
Types of Entrepreneurs

A. Based on functional characteristics

• Innovative entrepreneur
• Imitative or adoptive entrepreneur
• Fabian entrepreneur
• Drone entrepreneurs
B. Based on development angle
• Prime mover
• Manager:
• Minor innovator
• Local trading
• Satellite
Types of Entrepreneurs: Cont..
C. Based on entrepreneurs business
• Manufacturing
• Wholesaling
• Retailing
• Service
D. Based on personality traits
• The improver:
• The artists
• The superstar
• The advisor
Entrepreneurship
 Entrepreneurship comes from the French verb 'entreprendre'
which means 'To undertake', is the act and art of being
an entrepreneur or one who undertakes innovations or
introducing new things, finance and business acumen in an
effort to transform innovations into economic goods.
 This may result in new organizations or may be part of
revitalizing mature organizations in response to a perceived
opportunity.
 The most obvious form of entrepreneurship is that of starting
new businesses (referred as Startup Company).
Importance of Entrepreneurship

 Provides employment to huge mass of people

 Contributed towards research and development system
 Creates wealth for nation and for individuals as well
 Sky-scraping heights of apparent prospects: High Chances
 It is a challenging opportunity for the people
 Entrepreneurship provides self sufficiency

 High living Standard

 Motivation for others

 Can give a share for social welfare, etc

Entrepreneurship v/s Intrapreneurship
Entrepreneurship v/s Intrapreneurship: Cont.
Functions of Entrepreneurship
 Idea Generation
 Type of Firm
 Determination of Objectives
 Raising of Funds
 Procurement of Raw Material
 Procurement of Machinery
 Market Research
 Determination of form of Enterprise
 Recruitment
 Implementation of the Project
Role of Entrepreneurs

 Innovator in Economic Growth

 Employment Opportunities Generation
 Complementing and Supplementing
Economic Growth
 Social Stability & Balanced Regional
Development
 Export Promotion
 Import Substitution
 Meeting Local Demands
Innovation and Entrepreneur

 New Product
 New Market
 New Technology
 New Raw Material
 New Organization
Motivations in Entrepreneurship

 Internal factors

 Need for self-actualization

 Optimism
 Positive attitude
 Self-motivation
 Enthusiasm
 Commitment
 Education
 Background
 Financial background
 External Factors
 Influence
 Availability of resources
 Product’s demand
 Government policies
 Information availability
 Technological advancement
 Changing tastes and preferences
Obstacles in Entrepreneurship
 Cash Flow Management
 Hiring Employees
 Time Management
 Delegating Tasks
 Choosing what to Sell
 Marketing Strategy
 Capital
 Strapped Budget
 Business Growth
 Self-doubt
Scope for Agro- Entrepreneurship

 India second largest population in the world

 New trends in readymade food
 Export Opportunities as Raw and Processed
foods
 Increasing Health Consciousness
 Government Schemes and facilities
 Contract or Group Farming
Steps in Starting Venture
 Idea Generation
 Feasibility Study & Financing
 Break Even Analysis
 Licensing
 Permission and Registration
 Infrastructure
 Machinery purchase
 HR Recruitment
 Raw Material Procurement
 Production
 Marketing
 Innovation
Thank You