3. What is Entrepreneurship?
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Not Just Small Companies
Not Just Start-Ups
Not Just For-Profit Firms
Not Just Non-Government
Certainly not many “dot.com’s”
4. It is an Attitude or Approach to
Management that Starts with
Opportunity.
5. Entrepreneurs
• Do things that are not generally done in the
ordinary course of business
• Some entrepreneurs become
celebrities...others become ridiculed for their
failed dreams
• All contribute to the spirit of free enterprise
6. Four Ps of Entrepreneurship
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Pioneer
Perspective
Practice
Performance
7. Entrepreneurship
• Entreprendre...17th century
French...the individual who undertook
the risk of a new enterprise...
“undertakers”.
• They were “contractors” who bore the
risks of profit or loss
• Examples: soldiers of fortune,
adventurers, builders, merchants and
funeral directors
8. Entrepreneurs………..
• 14th century...Tax contractors...bore the
risks of collecting taxes. If they collected
more than the fee...they kept the rest as
profit.
• Called the “change agents” of
progressive economies
9. Entrepreneurs………..
• “Essai sur la nature du commerce en
general”...1755 ...describes an
entrepreneur as a person who pays a
certain price for a product to resell it at
an uncertain price, thereby making
decisions about obtaining and using
resources while consequently
assuming the risk of enterprise
10. Entrepreneurs………..
• Adam Smith...The Wealth of Nations:
spoke of the “enterpriser” as an
individual who undertook the formation
of an organization for commercial
purposes
• A. Smith...mentioned “role of
industrialist...,person with unusual
foresight who could recognize potential
demand for goods and services”
11. Entrepreneurs………..
• “A thesis on Political
Economy”...describes an entrepreneur
as one who possessed certain arts and
skills of creating new economic
enterprises, yet a person who had
exceptional insight into society’s needs
and was able to fulfill them.
• Influences society and is influenced by
it.
12. Entrepreneurs………..
• John Stuart Mill...describes an
entrepreneur as a business founder
• Recognized entrepreneurship as central
to economic theory
• Carl Menger...Principles of Economics:
“Economic change does not arise from
circumstances but from an individual’s
awareness and understanding of those
circumstances
13. Entrepreneurs………..
• In 19th century entrepreneurs were:
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risk takers
decision makers
aspired to wealth
gathered and managed resources to
create new enterprises
14. Entrepreneurs………..
• Are not equal to inventors...inventor
might only create a new product,
whereas an entrepreneur will gather
resources, organize talent, and provide
leadership to make it a commercial
success
• Peter Drucker...”Resources, to produce
results, must be allocated to
opportunities rather than to problems...
15. Another View of
Entrepreneurship
• Peter F. Drucker (1964)
...’maximization of opportunities’ is a
meaningful, indeed a precise, definition
of the entrepreneurial job. It implies that
effectiveness rather than efficiency is
essential in business. The pertinent
question is not how to do things right
but how to find the right things to do,
and to concentrate resources and efforts
on them.
16. Another View of
Entrepreneurship
• Joseph Schumpeter...20th century talks
about “creative destruction” whereby
established ways of doing things are
destroyed by the creation of new and
better ways of getting things done
• Described it as a process and
entrepreneurs as innovators who use
process to shatter the status quo
through new methods...
19. Common Myths About
Entrepreneurs
• Entrepreneurs are born and not made
• Entrepreneurs are risk takers
• You need a lot of money to be
successful
• All you need is a great idea
• Entrepreneurs work long hard hours
21. A Process Definition of
Entrepreneurship
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Pursuit of Opportunity
Rapid Commitment and Change
Multistage Decision Making
Using Other People’s Resources
Managing Networks & Relationships
Compensating for Value Created
22. Entrepreneurship:
A Process, Not a Person
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In a social context
Is an “action” definition
Focus on doing rather than on facts
Creating the right incentives
Managers vs. Entrepreneurs
23. While it is a Process, the
Person is still key
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Skills
Knowledge
Contacts
Resources
25. Need and importance of
Entrepreneurship
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Increasing National Production
Offering Challenging Career Option:
Reducing the Domination of Established Institutions
and the Concentration of Economic power
Reinvesting the profit in the area of profit generation
Balanced Area Development
Commercializing New Invention & Products
Harness Youth Vigor:
Making markets more competitive
Making Society 'Enterprising'
26. Your own new enterprise serves your
interest in significant ways
Salary.
Security
Assets builder
Perks.
Independence
Fulfillment
29. Entrepreneurial Motivation & Barriers
Motivating Factors
a) Internal Factors:
• Desire to do something new
• Educational background
• Occupational Background or Experience
b) External Factors:
• Govt. assistance & support
• Availability of labor & raw materials
• Encouragement from big business houses
• Promising demand for the product
30. Classification of Entrepreneurship
Contextual Basis:
• Entrepreneurship (standalone start-up)
• Corporate entrepreneur (new ventures within
large established organizations)
• Co-preneurship (a working professional starts a
business & runs it alongside his/her job)
• Technology Entrepreneurship (starts-ups with
product & process which are technology-based)
• Service entrepreneurship (start-ups in the
services domain of activity)
• E-entrepreneurship (start-ups wherein business
is on the internet platform)
31. Classification of Entrepreneurship
Novelty Basis:
• Innovating Entrepreneurship
• Imitative Entrepreneurship
Intention Basis:
• Build to sell Entrepreneurship (Serial
Entrepreneurship)
• Build to Last Entrepreneurship
32. Theory of Entrepreneurship
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An Economic Theory
Leibenstein’s X-efficiency Theory
Dynamic Entrepreneurship Innovation Theory
Harvard School Theory
Theory of High Achievement
Theory of Change
Theory of Profit
Theory of Adjustment of Price
Theory of Market
Theory of Social Change
Theory of Entrepreneurial Supply
Theory of Personal Resourcefulness
Theory of Cultural Values
33. Concept of Entrepreneurship
• It refers to the process of action an entrepreneur
undertakes to establish his/her enterprise. It is a
creative & innovative response to the
environment.
• It is thus a cycle of actions to further the
interests of the entrepreneur.
• One of the quality of the entrepreneurship is the
ability to discover an investment opportunity & to
organize an enterprise, thereby contributing to
real economic growth.
Entrepreneur
Entrepreneur
ship
Enterprise
Person
Process
Object
34. Development of Entrepreneurship
• The entrepreneurial development is a key to
achieve overall economic development through
higher level of industrial activity.
• It is a process in which persons are injected with
motivational drives of achievement & insight of
tackle uncertain & risky situations especially in
business undertakings.
• The process of development focuses on
training, education, reorientation & creation of
conducive & healthy environment for the growth
of enterprises.
35. Approaches to Entrepreneurship Development
• Develop & arrange the course content by
analyzing needs & stating outcomes.
• Choose the appropriate training methods.
• Consider the subjects area, the nature of learning,
the trainee populations, the trainers themselves &
time & material factors.
• Achieve training objectives.
37. What is EDP????
• Entrepreneurship Development Program
(EDP) is designed to help a person in
strengthening & fulfilling his entrepreneurial
motive & in acquiring skills & capabilities
necessary for playing his / her role effectively
& efficiently.
• There are three important variable: Location,
Target Group & Enterprise.
38. Objectives of EDP
• Develop & strengthen their entrepreneurial quality
/ motivation.
• Analyze environment related to small industry &
small business.
• Helps in selecting Project/Product
• Formulate Projects
• Understand the process & procedure of setting
up of small enterprises
• Know & influence the source of help/support
needed for launching the enterprise.
• Acquire the basic management skills
• Know the pros & cons of being an entrepreneur &
• Acquaint & appreciate the needed social
responsibility.
39. Issues of EDP
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Structure & Composition of EDPs
Areas of Operation
Fixing Priorities
Lack of Specialist’s Support
Some operational problems of EDP are:
• Inherent inability
• Diverse opinions
• No proper strategy
• Low institutional commitment
• No local support
• Non-availability of inputs
• Poor follow-up
• No adequate research facilities
