This is the first session of 3 consecutive sessions covering the Topics of Entrepreneurship and Small Business Management conducted for Pearson's BTEC in Business Management. In this lecture we capture the essence of Entrepreneurship. Types of entrepreneurs and an emphasis on the concept of Social Entrepreneurship.

1. Entrepreneurship
&
Small Business Management
PREPARED BY : ARQAM AZHAR
P.G.D Marketing / Certified Trainer
AMSLIM / AITD (SL)

2. LEARNING OUTCOMES / OBJECTIVES
• UNDERSTANIDING THE DEFINITIONS AND
CONCEPT OF ENTREPRENUERSHIP
• IDENTIFYING AND EXPLORING THE TYPES
OF ENTREPRENUERSHIP
• DISCUSSING AND DEVELOPING
AWARENESS ON SOCIAL ENTERPRISE AND
SOCIAL ENTREPRENUERS.

3. NOT ALL
ENTREPRENEURS ARE
SMALL BUSINESS
OWNERS!
HERE ARE SOME
MULTI BILLIONAIRE
ENTREPRENEURS.
THEY HAVE BEEN THE
INSPIRATION FOR
MANY YOUNG
ENTREPRENEURS
TODAY

5. ENTREPRENEUR
An Entrepreneur is one who identifies new opportunities or gaps in the market and
develops a visionary idea to create value and capture the opportunity, by taking risk
and responsibility of investing his / her own time, money, resources and effort to
ensure success of the project or idea.
ENTREPRENEURSHIP
An Entrepreneurship is the process undertaken by an entrepreneur to pursue an idea
involving high personal and financial risk and return, through effective and
efficient mangaing the available resources to support the success of the idea. It
involves a range of actions and efforts pursued by an Entrepreneur to make an idea
successful.

7. WHAT FACTORS INFLUENCE ENTREPRENEURS
1. Need / Necessity
Usually many entrepreneurs have pursued to create their ventures out of Personal need.
2. Passion
When people are deeply passionate about an idea or concept they are inspired to create something through
that passion. Dilmah was born through a passion for Tea.
3. Problem / Discomfort
The issue we face and challenges we overcome sometimes spark an idea in us to help improve or fix the
problem. This problem could be faced by other people who would become customers. (E-Channeling)
4. Ego
Many times we experience some enterprises products or services and we think, "Oh that could be so much
better" - "I could do this in a much better way" , this spark becomes the inspiration for some entrepreneurs

8. In 2019, Global Entrepreneurship Index for Sri Lanka was 19.1 index. Global
entrepreneurship index of Sri Lanka fell gradually from 31.1 index in 2015 to
19.1 index in 2019.
Entrepreneurship is a key driver for any economy. Sri Lanka has a very low
presence of entrepreneurs in the market numbering less than 1.5% of the
population. This compared to some of the other countries in the Asian region
such as Vietnam and Thailand is very low.
Entrepreneurship and the future focus of Sri Lanka | Daily FT

9. 1. Entrepreneurs Create New Businesses
Path-breaking offerings by entrepreneurs, in the form of new goods and services, result in new
employment, which can produce a cascading effect or virtuous circle in the economy. The stimulation of
related businesses or sectors that support the new venture add to further economic development.
2. Entrepreneurs Add to National Income
Entrepreneurial ventures literally generate new wealth. Existing businesses may remain confined to the
scope of existing markets and may hit the glass ceiling in terms of income. New and improved offerings,
products or technologies from entrepreneurs enable new markets to be developed and new wealth created.
3. Entrepreneurs Also Create Social Change
Through their unique offerings of new goods and services, entrepreneurs break away from tradition and
indirectly support freedom by reducing dependence on obsolete systems and technologies. Overall, this
results in an improved quality of life, greater morale and economic freedom.
4. Community Development
Entrepreneurs regularly nurture entrepreneurial ventures by other like-minded individuals. They also invest
in community projects and provide financial support to local charities. This enables further development
beyond their own ventures.
THE IMPORTANCE OF ENTREPRENEURSHIP

10. CHARACTERISTICS OF AN ENTREPRENEUR
• Purposeful : Has strong conviction in why they pursue an Idea
• Visionary : They have a clear picture of what they want to create
• Optimistic : They are positive of what they are trying to create
• Analytical : Ability to analyse and find strong Niches
• Confident : Despite uncertaininty they will stand by the idea and work hard for it
• Creative : Ability to find innovative solutions to mundane and complicated issues
• Passionate : They are deeply passionate for the work they do
• Decisive : They know that their decisions have its consequences but they are decisive
• Flexible : Agility is the name of the game in unexplored markets
• Nurturing : Excellent at building networks & relationships

11. BENEFITS OF BEING AN
ENTREPRENEUR
• Opportunity of gain control over your own destiny
• Opportunity to reach your full potential
• Opportunity to reap unlimited profits
• Opportunity to contribute to society & be recognized
for your effort
• Opportunity to do what you enjoy

13. Intrapreneurs
someone in an existing organization whoturns new ideasinto profitablerealities Intrapreneursnotice opportunitiesand
take initiativeto mobilize resources, however they work in large companies and contribute to the innovationof the firm.
Not every employee has the abilityto become a successful Intrapreneur.It takes welldevelopedstrategic action, teamwork
and communicationabilities.an intrepreneur(also intrapreneur)is a person who possesses such skill but is working within a
company or organization.
• Intrepreneurs are usuallyencourages to develop their ideasinto a workable product by the companies they work for.
• Like an entrepreneur, an intrepreneuris motivated,creative, and able to think outside of the box.

14. TYPES OF ENTERPRISE (Entreprise Typology)
Sole
Properitorship
Partnership
Private Limited
Company
Public Limited
Company
Offshore
Companies
Foreign
Branches
Typologies of entrepreneurshipventures, can be described as classification of a group or a class, having
characteristics in common, on the basis of general type, structure, form, style, plan, etc. The four types
of typologies found in entrepreneurship arementioned below:
Small Business
Entrepreneurship
Scalable Startup
Entrepreneurship
Large Company
Entrepreneurship
Social
Entrepreneurship
These types of enterprisesare relevant in the context for anyone operating a registered businessin Sri Lanka

15. TYPES OF ENTREPRENEURS : CLARENCE DANHOF
AGGRESSIVE / INNOVATIVE
These entrepreneurs have the ability to think newer, better and more economical ideas of business, organization and management.
They are characterized by the smell of innovativeness, and they are aggressive in experimentation and in putting attractive
possibilities into practice.
IMITATIVE / ADAPTIVE
These entrepreneurs imitate the existing entrepreneurs and setup their enterprise in the same manner. Instead of innovating, they
just imitate the technology and methods innovated by others. These entrepreneurs face lesser risks and uncertainty then
innovative entrepreneurs.
FABIAN
They are very much skeptical in their approach in adopting or innovating new technology in their enterprise and they love to
remain in the existing business with the age-old techniques of production. They adopt new technologies only when there are not
options left to survive in the business venture.
DRONE
Drone entrepreneurs refuse to copy or use opportunities that come on their way. In fact, these entrepreneurs are very
conservative; they always feel comfortable with their old-fashioned technology of production. They are laggards as they continue
to operate in their traditional way and resist changes.
Clarence Denhof Classifies entrepreneurs on the basis of stage of economic development: some others have
classified on the basis of their functions and characteristics. In the initial stages of economic development,
entrepreneurs tend to have less initiative and drive. As development proceeds, they become more innovating
and enthusiastic.

17. SOCIAL ENTREPRENEUR
These are entrepreneurs who are dedicated a to a cause of social development and not onlyprofits!Their entrepreneurial efforts are strongly
dedicated towards social impact driven initiatives,These entreprenuers mayhavevery successful enterprises not measured onlybyrevenue but also
by the level of Impact created.In today's world this has become a thrivingformof entrepreneurship which has shifted the image of
entrepreneurshipofnot onlya profit driven process but also a sociallyresponsible process.
SOLOPRENEUR
These are entreprenuers who run a one man or one woman show – A solo effort is what creates the enterprise.In today's social media driven world
Solopreneurs have been rapidlyincreasingwith individualswho are sellingtheir Products,Services or Ideas over Social Media. #SocialMedia
#Influencers
LIFESTYLE ENTREPRENEUR
Lifestyle entreprenuers can be Solo,a couple or a group of people who are dedicated towards keepingan enterprise rnnningjust to sustain a
particular lifestyke theychose to have.The entire purpose ofthe venture is not driven towards capitalizingon newer oopportunities or growth – but
ensuringthe required lifestyle is sustained.An examle ofthis would be some of the Digital Nomads.These initiatives cannot operate withnout the
creator and generallytheyperish alongwith the people who created them.
SERIAL ENTREPRENEUR
These are entrepreneurs who pursue more than one Entrepreneurial venture – theyinvest their time, skills,effort and resources across a series of
varied enterprisingefforts – Usuallyacross different industries.Theyenjoythe diverstyand securitywith havingmultiple sources ofincome where
they are part of the decision making process.
GROWTHPRENEURS
These are entrepreneurs who are highlymotivated to achieverapid and continuous growth through their efforts and time.They want to scale an
idea from Incubation to growth as fast as possible and probablysell out at Growth stage and moveto build the next scalableidea. Theyare mostly
focused on the numbers and the business growth only,
DIFFERENT TYPES OF ENTREPRENEURS

18. What is Social Entrepreneurship?
Social entrepreneurship is, at its most basic
level, doing business for a social cause. It might
also be referred to as altruistic entrepreneurship.
Social entrepreneurs combine commerce and
social issues in a way that improves the lives of
people connected to the cause. They don’t
measure their success in terms of profit alone –
success to social entrepreneurs means that they
have improved the world, however they define
that.

19. CHARACTERISTICS OF
SOCIAL ENTREPRENEURSHIP
According to the Schwab Foundationfor Social Entrepreneurship,
social entrepreneursshare several characteristicsthey:
• Achieve large scale social change.
• Focus on the social or ecologicalchange they want to make
while earning money to support the change.
• Innovatewhen looking for a solutionto a social problem.
• Measure success with Impact and not just by revenue, profits
or financialgrowth.
• Use feedback to adapt and refine.

21. Forms of Social Entrepreneurship
Community Project
A community project is a relatively small-scale effort to address an issue within a specific community. Social, environmental and
economic issues are the primary focus of most community projects, but the interpretations of what this means can be quite broad.
Anything from an effort to build a community garden in an affluent suburb to the organization of a volunteer fire department in a
poverty-stricken rural area can fall under the umbrella of a social entrepreneurship community project.
Non-profit Organization
The exact structure of a non-profit organization is likely to differ based on legal jurisdiction, but on the whole, non-profit
organizations exist not to generate revenue for shareholders and stakeholders but to create an enterprise focused on a specific
cause. One common misconception is that Non-profits don't pay people who work for them but that is not the case usually Non
Profit organizations pay well compesated salaries and weages.
Social Enterprise
Businesses that operate according to a specific social or charitable mission are known as social enterprises. These businesses are often
backed by a non-profit organization and may exist to further that organization’s goal and opportunity. For example, a charity that
focuses on the health and well-being of senior citizens may start a weekly craft fair that allows seniors to sell carpentry projects,
embroidery or baked goods as a way of generating some income. Social enterprises typically focus on providing a job skills training
opportunity program for marginalized or vulnerable people
Some businesses founded to both genrate profit nd affect some sort of change for the good of the general public
or a specific group of people in need of assistance. An organization that strives to strike an ideal balance between
for-profit organizations and non-profit programs is known as a social purpose business. These kinds of businesses
tend to attract impact investors.
Social Purpose Business

22. Business Model How it Works Examples
Buy One Give
One
Charge customers a market rate that allowsdonationto
beneficiary
TOMS, Warby Parker, Leesa, Parachute
Cross-
Subsidization
Offer free/low cost products services to beneficiaries
and pay for it by charging other customers a higher price
Dial 1298
Public Service
Outsourcing
Selling products / services to the publicsector to
increase innovationand efficient y of publicservices
EdTech
Bottom of the
Pyramid
Create a low-cost product / service that solves a specific
problem for low-income populations
D-Rev, Embrace, Bridge International
Academy; Grameenphone;Microfinance;
Two-Sided
Marketplace
Provide platform or services that connect beneficiaries
to new market opportunities
Etsy; Kickstarter; GoFundMe
Sharing Economy Providing beneficiaries access to capitalintensive
products
Zipcar
12 MOST COMMON SOCIAL BUSINESS MODELS.

23. Ethical Supply Chain​ Incorporate social and environmental
sustainabilityinto service/production​
Method; Merge4; Mandala Naturals, Maiyet, Burt’s
Bees, Method​
Shared Ownership​ Allow employees or customers to take an
ownership interest in company​
King Arthur’s Flour; Persephone Brewing; Equal
Exchange​
Direct Employment​ Hire beneficiaries that are
traditionallyunderemployed​
Hotbread Kitchen​
Consulting Services
to Mission-Driven
Orgs​
Provide services to improve or scale social
impact​
FSG; ArabellaAdvisors; Bridgespan,
Phil Communications;Geneva Global,Westaway​
EnvironmentalSusta
inability​
Sell products/services that improve
energy efficiency and sustainability​
Solar City, HomeSol BuildingSolutions;5 Lakes
Energy; Power Dash Inc.​
Donor Supported​ Revenue is generated from grants / donations​ charity: water, donorschoose.org, BUILD​
12 MOST COMMON SOCIAL BUSINESS MODELS.
(continued)

24. THANK
YOU
ARQAM AZHAR
Email: arqam_a@hotmail.com
Mobile:+94 775 198 555 (WhatsApp Only)