SESSION 1

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Concept of Entrepreneurship Nature, and scope of entrepreneurship Entrepreneur vs. manager Role and functions of an entrepreneur characteristic traits of an entrepreneur competencies needed to succeed as an entrepreneurs types of an entrepreneur Intrapreneurship

Entrepreneurship is a process through which individuals identify opportunities, allocate resources, and create value. This creation of value is often through the

identification of unmet needs or through the identification of opportunities for change.

Entrepreneurs see problems as opportunities, then take action to identify the solutions to those problems and the customers who will pay to have those problems solved.

Entrepreneurs are the people who see the need gap and hence capitalize on the same.

Entrepreneurs are the first one to embark on these innovative ideas. There are several examples such as follows:

 Credit

cards were not invented by banks photography was not started by a large

 Instant

camera manufacturer
 Large

office equipment manufacturer did not create

the Xerographic office-copying machine.

To an economist, an entrepreneur is one who brings resources, labor, materials, and other assets into combinations that make their value greater than before, and also one who introduces changes, innovations,

High level of motivation, Moderate Risk-taker Self-confident with positive self concept Excellent Leadership qualities Good Business acumen Managerial competence

Problem solving attitude Flexibility and adaptability Realistic approach to planning Independence of thought and action Ability to perceive opportunities and threats

Based on the type of business, entrepreneur can be classified as follows: Business entrepreneur Trading Entrepreneur Industrial Entrepreneur Corporate entrepreneur Agricultural entrepreneur

Business entrepreneur: They are individuals who conceive an idea for a new product or service and then create a business to materialize their idea into reality Trading entrepreneurs: a trading entrepreneur is one who undertakes activities other than the manufacturing work. He identifies potential markets, stimulates demand or his chosen product line & creates a desire and interest among buyers to go in for his products, domestic as well as international.

Industrial Entrepreneurs: An industrial entrepreneur is essentially a manufacturer who identifies the potential needs of customers and tailors his product or service to meet the marketing needs. He is a product oriented person who starts his industrial unit because of the possibility of making some new products. Corporate Entrepreneur: This entrepreneur is one who demonstrates his innovative skill in organizing and managing a corporate undertaking, which is a business organization registered under some act which gives it a separate legal identity.

Agricultural entrepreneur: These entrepreneur undertake such agriculture activities as raising of crops, fertilizers and other input of agriculture. They are motivated to raise the productivity of agriculture through mechanization, irrigation and application of technology.

Based on motivation level, entrepreneurs can be classified as follows; Pure entrepreneur Induced entrepreneur Spontaneous entrepreneur Motivated entrepreneur

Pure entrepreneur: A pure entrepreneur is an individual who is motivated by psychological and economic rewards. He takes entrepreneurial activities for his personal satisfaction, ego or status.

Induced entrepreneurs: He is one who is induced to take up an entrepreneurial task due to favorable policy measures of the government such as assistance, incentives, concessions and necessary overhead facilities to start a venture. Most entrepreneurs are induced entrepreneurs.

Spontaneous entrepreneurs: These entrepreneurs start their business out of their natural talents. They are person with initiatives with boldness and confidence in their ability which motivate them to undertake entrepreneurial activity.

Motivated entrepreneurs: New entrepreneurs are motivated by their desire for self fulfillment. They come into being because of the possibility of making and marketing some new products or the use of consumers.

Based on ownership entrepreneurs can be classified as follows: Founder or pure entrepreneur: They are typically big risk takers, they are the one who are responsible for the inception of the business and are often the most creative ones.

Second generation operators of the family owned businesses They are the ones who carry on the family tradition of doing business.

Franchisee, through restricted in freedom, have to invest their own money and time in business.

Owner managers are the ones who have bought the business from the founders

The entrepreneurial activities that acquire organizational sanction and commitment of resources for the sole objective of innovative results.

Intrapreneuring aims at boosting the entrepreneurial spirit with in the limits of the organization hence creating an environment conducive to development.

Intrapreneurship refers to employee initiatives in organizations to undertake something new, without being asked to do so.

Intrapreneurs bridge the gap between inventors and managers. They take new ideas and convert them into profitable ventures

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They have the vision and courage to realize it. They have the ability to plan necessary step for actualization of new idea.

They have high need for achievement and they take moderate calculated risks.

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Entrepreneur Employer Returns are higher Risk is higher Build all of themselves Doesnt get support from organization

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Intrapreneur Employee Returns are not that much higher Without any risk Selected by a corporate hierarchy Get support from primary