Entrepreneur An entrepreneur is a person who has possession of a new enterprise, venture or idea and is accountable for the inherent risks and the outcome. According to: Peter drucker : “Entrepreneur is one who always searches for change, response to it and exploit it as an opportunity”. Richard Schumpeter : Entrepreneur is one who innovator, raise money, collects inputs, Organises talent, provided leadership and set the organisation in proper order. International Labour Organisation, I. L.O(1982) : “ Entrepreneur are people who the ability to see and evaluate business opportunity; to gather necessary resources, to take advantage of them and to initiate appropriate action to ensure success”.
Various views of the term “Entrepreneur” 1. Entrepreneur as a Innovator :
The introduction of a new product in to the market.
The discovery of a new source of supply of a raw material.
The opening of a new market into which the specific product has not previously entered.
2. Entrepreneur as an organiser :
Uncertainty of profits.
Command over sufficient capital and
Moral qualities for work judgement , perseverance and a
knowledge about the business world. Entrepreneur as a Risk taker : Entrepreneur as an agent who buys factors of production at a certain prices in order to combine them into a product with a view to selling it at uncertain prices in future.
Who is an Entreprenuer • He is a person who develops and owns his own enterprise • He is a moderate risk taker and works under uncertainty for achieving the goal. • He is innovative • He peruses the deviant pursuits • Reflects strong urge to be independent. • Persistently tries to do something better. • Dissatisfied with routine activities. • Prepared to withstand the hard life. • Determined but patient • Exhibits sense of leadership • Also exhibits sense of competitiveness • Takes personals responsibility • Oriented towards the future. • Tends to persist in the face to adversity • Convert a situation into opportunity.
The characteristics of an unique entrepreneur are :
- Need for achievement
- High need for power
- Propensity to take risk
- Personal modernity
- Business enterprise
Entrepreneurship Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods".
A theory of evolution of economic activities.
• A continuous process of economic development. • An ingredient to economic development. • Essentially a creative activity or an innovative function. • A risk taking factor which is responsible for an end result. • Usually understood with reference to individual business. • The name given to the factor of production, which performs the functions of enterprise. • Creates awareness among people about economic activity. • Generates Self-employment and additional employment
Why Entrepreneurship • To improve backwardness of the people. • Economic development of the region. • To analyze resource utilization. • Proper utilization of human potentiality. • Special attention to take up new activities. • To create self-employment and generation of employment opportunity. • Eradication of regional imbalances. • Better economic gain.
Create new jobs. Productivity through new technology Opportunity for positive and significant effect. Self employment GDP growth Globalization Sustain economic growth ECONOMIC DEVELOPMENT
CLASSIFICATION OF ENTREPRENEURS According to the types of business. According to the use of technology. According to the motivation. According to the growth. According to stage of development.
A. According to the types of business Agriculture entrepreneur a. Horticulture b. Dairy c. Forestry 2. Corporate entrepreneur 3. Industrial entrepreneur a. Large b. Medium c. Small
Contd. 4. Trading entrepreneur 5. Business entrepreneur
B. According to the use of technology Professional entrepreneur. 2. Non-technical entrepreneur 3. Technical entrepreneur
C. According to the motivation 1. Spontaneous Entrepreneur 2. Motivated Entrepreneur 3. Induced Entrepreneur 4. Pure Entrepreneur
D. According to growth 1. Growth Entrepreneur 2. Super growth Entrepreneur
E. According to the stage of development 1. First generation Entrepreneur 2. Modern Entrepreneur 3. Classical Entrepreneur
Personal Entrepreneurial Competencies These competencies can be grouped into 3 main clusters and the EMPRETEC model has merged some of these competencies to derive 10 PECs. Achievement Cluster Opportunity Seeking and Initiative Risk Taking Demand for Efficiency and Quality Persistence Commitment to the Work Contract
Planning Cluster Information Seeking Goal setting Systematic Planning and Monitoring Power Cluster Persuasion and Networking Independence and self-confidence
FACTOR THAT AFFECT ENTERPRENEURSHIP GROWTH Economic Factor Capital Labour Raw material Market Infrastructure Social Factor Caste favour Family background
Continue… Education Attitude of the society Cultural value Political Factor The Govt has to ensure the availability of required resources for the Entrepreneurship . Policies related to various economic aspect like Price , availability of capital , Labour and other input taxation affect the growth of Entrepreneurship. Promotive Govt activities like Incentives & subsidies. Govt policies like licenses, regulation, favoritism .
ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES EDP means programmes designed to help a person in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role effectively. A programme not touching entrepreneurial motivation and behaviour cannot be called as an EDP.
Continue….. EDP primarily focuses on developing those first-generation entrepreneurs who on their own cannot become successful entrepreneur.
NEED OF AN EDP Higher rate of economic growth. Development of backward and tribal areas. Creation of employment opportunities. Improvement in the standard of living. Promoting small-scale industries. To promote women entrepreneurship.
NEED (Continue..) It covers three major variables:- Location Target group and Enterprise Any of these can become the starting point for initiating and implementing an EDP.
OBJECTIVES OF EDP EDP helps entrepreneur to:- Develop and strengthen entrepreneurial quality and motivation. Analyze small industry and small business environment. Select project/product. Formulate projects. Understand the process and procedure of setting up of small enterprise. Acquire the basic management skills.
Continue… 6. Know the pros and cons of being a entrepreneur. 7. Acquaint and appreciate the needed social responsibility/ entrepreneurial disciplines. 8. Develop entrepreneurial culture. 9. Accelerate the process of industrial and economic development. 10. Transform the Indian economy.
ENTREPRENEURIAL BEHAVIOURS Grasping opportunities. Taking initiative. Solving problems creatively. Managing autonomously. Taking responsibility for, and ownership of things. Seeing things through. Networking effectively to manage interdependence. Using judgment to take calculated risk.
ENTREPRENEURIAL ATTRIBUTES Achievement orientation and ambition. Self confidence and self esteem. Perseverance. High internal locus of control. Action orientation. Preference for learning by doing. Hardworking. Creativity.
ENTREPRENEURIAL SKILLS Creative problem solving. Persuading. Negotiating. Selling. Proposing. Managing business/projects/situations. Strategic thinking. Intuitive decision making under uncertainty.
TYPES OF EDP IN INDIA Industrial Motivating Programme. Entrepreneurship Development Programme. Skill Development Programme. Management Development Programme. Entrepreneurship Awareness Training Programme. Product-oriented Entrepreneurship Development Training Programme. Target group-oriented Entrepreneurship Development Training Programme.
STRUCTURING EDP Identification and careful selection of entrepreneurs. Developing and motivating entrepreneurial capabilities of the trainee. Equipping the trainee to identify viable industrial project/prepare project profiles or brief project reports. Equipping the trainees with basic enterprise-building skills. Imparting basic managerial skills. Helping the trainees to secure the necessary financial, infrastructural and related business assistance during the implementation of the project.
THE OPERATIONAL PROBLEMS OF EDP No proper strategy. No local support. Non-availability of inputs. No adequate research facilities. Inconsistent programme design. No clear-cut objective. Lack of clarity in approach and Lack of creativity and commitment.
ENTREPRENEURIAL TRAINING Training is the systematic instruction of staff at all levels in new attitudes or new skills.
IMPORTANCE OF TRAINING The availability of skilled workers at all levels of management. Enables the workers to perform the work more efficiently and precisely. Minimises excessive scraps, defects and wastage. Minimises the number of accidents, as unskilled or semi skilled workers.
IMPORTANCE OF TRAINING(cont…) Training reduces fatigue. Training enables the worker to work speedily. Training improves the good relation between employees and management. New techniques can be easily adopted by through trained employees. Standardization can be adopted.
IMPORTANCE OF TRAINING(cont…) Training enable employees to occupy higher position of authority. The supervision cost can be minimised.
OBJECTIVES OF TRAINING To impart basic knowledge about the industry, production and production methods. To build the necessary skills of new entrepreneurs To assist the entrepreneur to function more effectively by exposing him to the latest concept, techniques and information. To impart customer education and To impart knowledge of marketing goods
METHODS OF TRAINING Individual instruction Group instruction Lecture method Demonstration method Written instructional method Conference Meeting
DESIGNING AN ENTREPRENEURIAL TRAINING PROGRAMME Setting training objectives Training objectives Developing course content Choosing appropriate training methods
MODULES OF TRAINING PROGRAMME Introduction of entrepreneurship Motivation training Essentials of management - general management - marketing management - production management - financial management
MODULES OF TRAINING PROGRAMME(cont.) Fundamentals of feasibility study Organizing the business Plant visit
QUALITIES OF AN ENTREPRENEUR Motivation towards achievement Creativity Clarity Innovative Risk-taking Flexibility Adaptability
QUALITIES OF AN ENTREPRENEUR(cont..) Determination Will power Tactfulness Self-confidence Intelligent instinct
TRAITS OF AN ENTREPRENEUR Decision making Setting standards Multi tasking Building relationship Dedication Resolving conflict Team player Honesty
TRAITS OF AN ENTREPRENEUR(cont…) Approachable Appreciating skills Integrity Trust Passion Patience Capability Involvement
ENTREPRENEUR vs PROFESSIONAL MANAGER Features of a professional manager Specialist Skilled, knowledgeable Strategic planning Formal communication Organizing Controlling Motivating.
DISTINGUISHING FEATURES OF A MANAGER AND AN ENTREPRENEUR MANAGER Primary motive-want promotion, reward& power. Managers are employees(specific role) Limited scope of innovation and creativity Managerial jobs are transferable Manager do not bear risk Managers need team building and leadership role. Manager need knowledge and expertise.
ENTREPRENEUR Primary motives-want freedom, goal oriented & self motivated Entrepreneurial function is organsing production. Decision making and calculated risk bearing. Has all round responsibility. Public relation and team building. High level of achievement and motivation. Innovative, imaginative soul.