2. "Entrepreneur" is derived from French verb
'entreprendre'. It means 'to undertake'.
Meaning & Definitions
Richard Cantillon, French economist used
the term entrepreneur to business.
“An agent who buys factors of
production at certain prices in
order to combine them into a
product with a view to reselling
it uncertain price in future.”
3. Entrepreneur
An entrepreneur is person in effective control of
commercial undertaking; one who undertakes a
business or an enterprise.
Entrepreneur is an innovative
person who maximizes his
profits by following new
strategies or venturing into new
products or services.
Entrepreneurs are people that
notice opportunities and take
the initiative to mobilize
resources to make new goods
and services.
4. The Entrepreneur as an individual
“The individual entrepreneur is a person who
perceives opportunity, finds the pursuit of
opportunity desirable in the context of his or her
life situation, and believes that success is
possible, and these three elements distinguish
the individual entrepreneur from the vast majority
of the population.”
Stevenson
(1996)
“Entrepreneurship is behaviour rather than
personality trait. An entrepreneur always
searches for change, responds to it , and
exploits it as an opportunity”.
Drucker(1985)
5. J.B. Say, “An Entrepreneur is the economic
agent who unites all means of production; land
of one, the labour 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 labour, interest on capital
and what remains is his profit”.
Thus an Entrepreneur is an organizer who
combines various factors of production to
produce a socially viable product.
6. Point for
Distinction
Entrepreneur Manager
Goal
Management
Starts a venture by setting up
a new enterprise for his
personal gratification.
To render his service in an
Enterprise already set up by
someone.
Status Owner of Enterprise. Servant in the Enterprise.
Risk Bears all risks and uncertainty
involved in the Enterprise.
Being a servant does not
bear any risk involved in
Enterprise.
Rewards Entrepreneur for his risk
bearing role he receives
profits.
Receives salary as reward
for service rendered which is
fixed.
Innovation As an innovator he is called
as
change agent who introduces
goods and services to meet
changing needs of the
customer.
A manager executes the
plans of the entrepreneur.
Thus a manager translates
the ideas into practice.
DISTINCTION BETWEEN AN ENTREPRENEUR AND A MANAGER
Entrepreneur Can Be A Manager
But A Manager Cannot Be An Entrepreneur
7. Characteristics of Entrepreneurs
Innovative ability: Creative ability to search for new
opportunities.
Perception of good ideas: It involves collecting &
analyzing facts and thereafter falling upon his own
self-confidence for accomplishing the task.
Risk taking: Entrepreneur takes moderate risks to
achieve his goals.
Energetic activity: Entrepreneur exhibits a high level
of energy and spends a large proportion of his time in
finding out novel ways of getting done the set task.
Desire to accomplish: Strong desire to accomplish.
8. Future-oriented: Entrepreneur plans and thinks
for the future. He anticipates possibilities that lie
beyond the present.
Desire for responsibility: Entrepreneur is ready to
be personally responsible for the results of his
decisions.
Skill in organizing: Entrepreneurs have
remarkable skill in organizing work and human
resources.
Flexibility: Achievement-oriented entrepreneurs
are adaptable and flexible to adjust with the
changed circumstances.
Self-confidence: Entrepreneur has his own
individuality and possesses great amount of
confidence in himself.
9. Types of Entrepreneurs
Based on the Business
Type
ii. Corporate entrepreneurs
• who establish and manage corporate form of organization
which have separate legal existence.
• Bill Gates, Azim Premji
iii. Agricultural entrepreneurs
• who undertake activities like raising and marketing of crops,
fertilizers and other allied activities.
• Agro input dealers, Dairy Farmer,
i. Trading entrepreneurs
• who undertake buying & selling of goods, but not engage in
manufacturing.
• wholesalers, retailers, dealers, etc.
10. Based on the
Technology
i. Technical Entrepreneur
• who use to start and continue industries primarily based on
science and technology.
• Develop new ideas and turn those ideas into technology-based
innovations and inventions.
• Examples: Bill Gates (Microsoft), Mark Zuckerberg (Facebook),
Steve Jobs (Apple),
ii. Non-Technical Entrepreneur
• who do not set up and run enterprises based on science and
technology.
• These are those who work for innovations using traditional
methods.
• Examples: Larry Page and Sergei Brin (Google), Reed
Hastings(Netflix), and Jeff Bezos(Amazon).
11. Based on Ownership
i. Private Entrepreneur
• When starts something personal of his or her own, such as
setting up an enterprise.
• Plays the sole proprietor role for a business venture and bears
the risk associated with it.
• Dhirubhai Ambani, Lakshmi Mittal, Azim Premji…
iii. Joint Entrepreneurs
• When a business or industrial undertaking is established and
operated jointly by the private entrepreneur and the
government.
• Risk and profits are shared by both parties.
• BHEL, SAIL
ii. State Entrepreneur
• When a state or government does a business or industrial
undertaking, it is referred to as a 'state entrepreneur'.
• Government is the sole owner of enterprise and will bear all
profits and losses involved with it.
• MAHBEEJ, LIC
12. Based on Gender
i. Men Entrepreneurs
• When any business venture is formed, managed and
operated by men
• Gautum Adani, Ratan Tata
ii. Women Entrepreneurs
• When any business venture is formed, managed and
operated by women, these women are referred to as women
entrepreneurs.
• Besides, if women have a minimum 51 percent share of the
capital, they can also be known as women entrepreneurs.
• Kalpana Saroj, Vandana Luthra
13. ii. Medium-Scale Entrepreneur
• If an entrepreneur has invested a minimum of 1 crore to a
maximum of 5 crores in starting an enterprise, including
plant and machinery
• LED light making, Leather industry
iii. Large-Scale Entrepreneur
• If an entrepreneur has invested more than 5 crores in
starting an enterprise, including plant and machinery.
• Iron & Steel industry, Sugar industry
Based on the Enterprise size
i. Small-Scale Entrepreneur
• If an entrepreneur has invested up to a maximum of 1 crore
in starting an enterprise, including plant and machinery.
• Dal Mill, Rice mill, Agarbatti making
14. Based on Clarence Danhof Study
ii. Imitative/Adoptive Entrepreneurs (Copy Cats)
• They follow and adopt the innovative entrepreneurs' existing
successful enterprise system.
• They do nothing new of their own.
• Walton BD. has introduced its motorbikes, refrigerators,
televisions and other electronic appliances in Bangladesh not
being the original inventor of those products
• Microsoft coming out with their own search engine, Bing in
response to Google.
i. Innovating Entrepreneurs (Innovators)
• Who come to the market with new ideas or innovations
• They create new products, find new production methods,
create new markets and restructure the business.
• Such entrepreneurs always try to innovate and invest their
time and money in research and development.
• Ritesh Agrawal (Oyo Rooms), Sachin Bansal (Flipkart)
• Apple coming with I Phone
15. iii. Fabian Entrepreneurs
• Who do not seek to implement changes in their enterprise
techniques.
• Very careful in applying any approach and cautious in
exercising any change.
• Not making sudden decisions.
• Example – Companies making airplanes like Airbus and
Boeing
iv. Drone Entrepreneurs
• Who do not like to adopt any changes in their enterprise
techniques.
• Strictly follow their traditional strategies or methods for
development, production or marketing.
• They feel or experience pride and tradition in the old ways of
doing business.
• Example – Government owned companies in developing
countries like India.
16. Entrepreneurship is the act of being an entrepreneur,
who starts any economic activity for being self-
employed.
Entrepreneurship is the “process of the
entrepreneur”. It is an attempt to create value
through recognition of business opportunity. It is
basically communicative and management functions
to mobilize financial and material resources.
Entrepreneurship
Entrepreneurship is a process by which individuals
either on their own or inside organizations pursues
opportunities without regard to the resources they
currently control (Stevenson and Jarillo, 1995).
17. • Forming a new form of organization to
function efficiently
Process of Entrepreneurship
Development
Entrepreneurship is a process comprising of several
distinct stages.
• Use of new methods of production
• Opening of a new market
• Opening of new channel or a source of
supplying raw material
18. Need for entrepreneurship
Entrepreneurship teach us to.. ……………
• creates opportunity
• ensures social justice
• instills confidence
• stimulates the economy
• take risks
• fail and to persevere
• become creative, inventive and
innovative
19. Increases national production
Balanced area development
Dispersal of economic power
Reinvestment of profit for the welfare of the area of
profit generation
Development is a function of motivation and human
resource
Entrepreneurial awareness
Need for entrepreneurship
