EntrepreneurshipEntrepreneurship is the act of being an entrepreneur, which is a French word meaning "one whoundertakes innovations, finance and business acumen in an effort to transform innovations into economicgoods".Entrepreneurial activities are substantially different depending on the type of organization that is beingstarted. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Many "high value" entrepreneurial venturesseek venture capital or angel funding (seed money) in order to raise capital to build the business. Angelinvestors generally seek annualized returns of 20-30% and more, as well as extensive involvement in thebusiness. Many kinds of organizations now exist to support would-be entrepreneurs, including specializedgovernment agencies, business incubators, science parks, and some NGOs.The entrepreneur is the agent "who unites all means of production and who finds in the value of theproducts...the reestablishment of the entire capital he employs, and the value of the wages, the interest,and rent which he pays, as well as profits belonging to himself."STAGES OF EVOLUTION OF ENTREPRENEURSHIPThe evolutionary process of entrepreneurship activities may be divided intothe following broad stages:1. Hunting Stage: - The primary stage of the evolution of the economic lifeof man was hunting stage. Wants were limited and very few in numbers. The family members themselvessatisfied problems of food, clothing and shelter. Producers were the consumers also. Robinson Crusoe,living in the deserted island, satisfying his own requirements had no knowledge of business. People insome parts of Africa and India still lead this type of life. In this stage problems of production anddistribution were not complexes since wants were simple and limited.2. Pastoral Stage: - With the progress of mankind gradually mental understanding developed and peoplestarted realizing that instead of killing animals, they should breed and rear them. Thus cattle breedingencouraged the use of milk, and they had to think in terms of grazing areas for their cattle. The surplusmilk, meat and other related products were spared of exchange. This stage can be termed as the firststage of economic development and the beginning of commerce.3. Agricultural Stage: - In search of grazing areas, they further realized that they should grow plants asfood for animals. They started testing some grain products and slowly developed a taste in plants and theland was used for cultivation. Groups of persons started living together on their agricultural fields, whichwere subsequently converted into small villages with their farms. Free exchange of goods was startedand the activities were also divided to the extent of division of labor at the village level to complement the
needs of each other. Initially each village was self sufficient, but later they began small trading activitieson barter system.4. Handicraft Stage: - In the agricultural stage, people started learning the use of cloth made of cottonproducts, and they developed the segments of the workers for different activities. Cottage scale setupwas developed at the village level to nearby villages, and in exchange they brought requirements either toconsume themselves or for their village friends. Since the demand for gold coins, silver coins, skin andhide etc increased the activities of cobblers, gold smiths, and blacksmiths, laborers also rapidlyincreased, and caste system was also formed on the basis of activities they did. Everybody selected theirjob according to their own choice and taste.5. Present Industrial Stage: - The use of mechanical devices and the commonly acceptable form ofmonetary system accelerated the growth of entrepreneurship activities. The progress of science and theincrease in the means of transportation and communication enabled to travel widely and the marketswere developed in the country and abroad.Difference between entrepreneur and intrapreneurEntrepreneurship is the practice of embarking on a new business or reviving an existing business bypooling together a bunch of resources, in order to exploit new found opportunities.Intrapreneurship is the practice of entrepreneurship by employees within an organization. 1) An entrepreneur takes substantial risk in being the owner and operator of a business with expectations of financial profit and other rewards that the business may generate. On the contrary, an intrapreneur is an individual employed by an organization for remuneration, which is based on the financial success of the unit he is responsible for. 2) Intrapreneurs share the same traits as entrepreneurs such as conviction, zeal and insight. As the intrapreneur continues to expresses his ideas vigorously, it will reveal the gap between the philosophy of the organization and the employee. 3) Intrapreneurs create new businesses for an existing business while Entrepreneur aims at starting a new business. 4) If the innovative idea doesn’t work in case of an intrapreneur, the loss is suffered by the organization, but if the idea does not work in case of entrepreneur the loss is suffered by the entrepreneur himself. 5) Intraptreneurial startups were inclined to concentrate more on business-to-business products while entrepreneurial startups were inclined towards consumer sales.Difference between entrepreneurship and managerThe terms Entrepreneur and Manager are considered one and the same. But the two terms have differentmeanings.The following are some of the differences between a manager and an entrepreneur.1) The main reason for an entrepreneur to start a business enterprise is because he comprehends the
venture for his individual satisfaction and has personal stake in it where as a manager provides hisservices in an enterprise established by someone.2) An entrepreneur and a manager differ in their standing, an entrepreneur is the owner of theorganization and he bears all the risk and uncertainties involved in running an organization where as amanager is an employee and does not accept any risk.3) An entrepreneur and a manager differ in their objectives. Entrepreneur’s objective is to innovate andcreate and he acts as a change agent where as a manager’s objective is to supervise and createroutines. He implements the entrepreneur’s plans and ideas.4) An entrepreneur is faced with more income uncertainties as his income is contingent on theperformance of the firm where as a manager’s compensation is less dependent on the performance of theorganization.5) An entrepreneur is not induced to involve in fraudulent behavior where as a manger does. A managermay cheat by not working hard because his income is not tied up to the performance of the organization.6) Entrepreneur is required to have certain qualifications and qualities like high accomplishment motive,innovative thinking, forethought, risk-bearing ability etc. Conversely it’s mandatory for a manager to beeducated in the fields of management theories and practices.7) An entrepreneur deals with faults and failures as a part of learning experience where as a managermake every effort to avoid mistakes and he postpones failure.8) An entrepreneur could be a manager but a manager cannot be an entrepreneur”. An entrepreneur isintensely dedicated to develop business through constant innovation. He may employ a manager in orderto perform some of his functions such as setting objectives, policies, rules etc. A manager cannot replacean entrepreneur in spite of performing the allotted duties because a manager has to work as per theguidelines laid down by the entrepreneur.On the downside, typical manager brings professionalism into working of an organization. They bringfresh perspectives, ideas and approach to trouble shooting which can be invaluable.Attributes and Characteristics of Successful Entrepreneur1) Successful entrepreneurs see their success even before it happens. They can see it, taste it, feel it andhear it because they take the time to visualize their success. They take the time to "see" every detail oftheir success in their minds until it becomes a strong force in their daily lives.2) Successful entrepreneurs believe they can be successful. With a high level of belief and trust inthemselves as well as a strong confidence, successful entrepreneurs know that they can do what they areplanning to do. It is this belief, trust, and confidence that promote successful thinking as well assuccessful "doing".
3) Successful entrepreneurs have a plan for their success and have the discipline to follow it. They takethe time to plan their work and work their plan. They take time to research every detail and aspect of theirbusiness and are able to break general ideas into specific steps. Then, they diligently do what they setout to do.4) Successful entrepreneurs are people focused. When you become an entrepreneur, you are in thepeople business. A successful entrepreneur works to purposefully serve the needs of the people in oneway or another. They know that the more you focus on serving the needs of your customers and team,the more successful become.5) Successful entrepreneurs think "out-of-the-box". They look at whats already been done and find waysto set themselves apart and stand out. Successful entrepreneurs think creatively (which is especiallyhelpful in being an effective problem solver) to decide how they can best accomplish their goals. Theylook at different ways to work things in their business and strategize the best way to get there.6) Successful entrepreneurs create a team to help them. Entrepreneurs realize that its other people thatmake them successful. They also know that they dont and cant possibly know everything to make them asuccess. They instead focus on multiplying their efforts through other peoples skills and talents.Successful entrepreneurs focus on finding and raising other team members to achieve their success.7) Successful entrepreneurs focus on continual learning. Successful entrepreneurs have no problemletting you know that they dont know everything there is to know, but they are also willing to take the timeto find out. Learning is a lifelong standard of the successful entrepreneur.8) Successful entrepreneurs act with an attitude of excellence. They take the time to work on themselvesso they can be the best they can be. Integrity, honesty, reliability, and accountability are just some of thecharacteristics that make a successful entrepreneur. They know that an excellent attitude passes on towhomever they see and work with. They also know that having an attitude of excellence reaps the benefitof having favor in their lives.9) Successful entrepreneurs are effective problem solvers. They see the opportunities in every problemand overcome them. Instead of thinking "I cant", they think "how can I?" Successful entrepreneurs lookfor solutions instead of reasons why something cant be done.10) Successful entrepreneurs are determined to succeed. Bull-dogged determination and persistencemake your success a reality. They dont allow the weights and pressures of reaching their goal preventthem from attain their success. They take steps to keep themselves motivated and encouraged.
Role of Entrepreneurship in Indian EconomyIndian entrepreneurship is second to none and activity levels are at an all time high. According to theGlobal Entrepreneurship Monitor 2006, one in every ten Indians is engaged in some entrepreneurialactivity or the other. Of this, opportunity based entrepreneurship (70 percent) is significantly higher thannecessity based.A lot of entrepreneurship activity is centered on the IT and BPO industry; but, there are a few outstandingexamples in other fields. These companies have successfully exploited a product, service, or businessmodel to create a step change in the market structure. This new breed of entrepreneurs made their ownrules and revolutionized the way business was done. They used a winning combination of customerinsight, industry knowledge, and out of the box thinking to create winning innovations. While Ambani’sReliance Communications made mobile telephony affordable to the common man, Captain Gopinath’s AirDeccan made air travel as commonplace as travel by train and Biyani’s Big Bazaar changed the face ofretail in India. Tata Motors with their $2,000 car promise to do the same to the auto sector. Steve Ballmeronce said, ”I worry more about disruptive business models than competitors”.Entrepreneurs are driving the growth of the Indian economy. For the first time in 200 years, India isgetting back its position as an economic power. With GDP growing at 8+ percent, experts are expectingthe Indian economy to overtake developed countries in the decades to come.The Indian entrepreneur is thinking big and aiming high. The recent spate of global acquisitions by Indianindustry leaders has forced the business community the world over to sit up and take notice of Indianeconomic power. The Tata-Corus deal set the tone for the year and was followed by Birla’s acquisition ofNovelis. With the Indian rupee up against the dollar and the global economy as playing field, we canexpect to see more such deals in the future.There is enough reason to be optimistic about India’s entrepreneurial energy. However, we need tocreate an ecosystem that will foster and support early stage entrepreneurs. This will enable a scalableand sustainable model for creating a new breed of entrepreneurs in the years to come.