2. Concept of Entrepreneur
๏ Individuals who take initiative to establish business
and work for themselves on their own risk.
๏ A key figure in economic growth.
๏ The word entrepreneur has its origin in French
language which refers to organiser of musical or other
entertainment.
3. Meaning of entrepreneur
๏ An entrepreneur is a person who has already started or
is in the process of starting an enterprise.
Definition
๏ Joseph Schumpeter
โEntrepreneur is an innovator who brings economic
development through new combinations of factors of
productionโ.
4. Definitions
๏ Websterโs dictionary
โ one who organizes, manages and assumes the risk of a
business or Entrepriseโ.
๏ A. H.Cole
โ Entrepreneurship is a purposeful activity of an
individual or a group of associated
individuals, undertaken to initiate, maintain or
organize profit oriented business unit for the
production and distribution of economic goods and
service.
5. Modern concept of
entrepreneurship
๏ Perceive opportunities for profitable investment
๏ Initiative in establishing a business
๏ Riskโs bearing
๏ Co-ordination of different factors of production
๏ Introduction of innvotions
๏ Provision of capital
6. Main features of entrepreneurship
An economic activity
A Creative activity
An innovative function
A dynamic process
An organizing function
A risk bearing function
A gap filling function
A goal oriented activity
9. ENTREPRENEURSHIP INTRAPRENEURSHIP
๏ Entrepreneurship is the practice ๏ Intrapreneurship is the practice
of embarking on a new business of entrepreneurship by
or reviving an existing business employees within an
by pooling together a bunch of
resources, in order to exploit organization.
new found opportunities. ๏ An intrapreneur is an individual
๏ An entrepreneur takes employed by an organization for
substantial risk in being remuneration, which is based on
the owner and operator of a the financial success of the unit
business with expectations of he is responsible for.
financial profit and other
rewards that the business may
generate.
12. ๏ The Manager Entrepreneur
This is the type of person who becomes involved with
start ups once they have received a fair bit.
๏ The Setup For Failure Entrepreneur
This is the kind of entrepreneur that has failure
written all over everything he does. All he does is
complain, and when he takes on a project it is too
ambitious and destined to fail even before he starts.
13. ๏ The Lifestyle Entrepreneur
Some people just want to live the life and act the part. They
promote entrepreneurship, have lots of ideas about
entrepreneurship but they donโt actually do anything.
Well, maybe consult a bit on the side.
๏ The Cash-flow Entrepreneur
This entrepreneur doesnโt think about anything except
money. In general that can be a good thing for an
entrepreneur but some people overdo it. Entrepreneurship
is about the bottom-line but also about
innovation, inspiring your team, thinking ahead and
building something out of nothing.
14. ๏ The Better World Entrepreneur
. First focus should be in making your company more
successful and then using your success to make the
world a better place.
15. The Headlines Entrepreneur
Some entrepreneurs are in it strictly for the fame. They rush
from one headline to another and are more focused on
making it to the front page of the newspaper than actually
doing business. Your company is doing well when you get
lots of customers, make a lot of money and your investors
are happy..
16. Entrepreneur is the person who takes the initiative of establishing a
business enterprise. He is also designated as the captain of the
industry, business organizer, and the business manager. An entrepreneur
is responsible for the performance areas of:
PRODUCTION
HUMAN RESOURCE SALES/MARKETING
TECHNOLOGY FINANCE
17. The various functions performed by the entrepreneurs are:
๏ He brings into existence a business unit and therefore he acts as a promoter.
๏ He prepares the blue print of the business activities.
๏ He arranges the various factors of production and finance for the business.
๏ He sets up the desired organisation and prepares plans and policies for its
smooth operation.
๏ He performs distributive functions by making necessary payment to
land, labour and capital.
๏ He must be a man of clear vision and full knowledge of business activities.
18. Functions can be further
categorized as:-
Risk-bearing
function,
Organisational Innovative
function, function,
Decision
Managerial
making
function
function.
19. 1. Risk-bearing function:
The functions of an entrepreneur as risk bearer is specific in nature. The
entrepreneur assumes all possible risks of business which emerges due to
the possibility of changes in the tastes of consumers, modern techniques of
production and new inventions.
2. Organisational Function:
The entrepreneur brings together various factors of production, ensures
continuing management and renders risk-bearing functions as well.
Entrepreneur is an organiser who alone determines the lines of business to
expand and capital to employ more judiciously.
20. 3. Innovative Function:
The basic function an entrepreneur performs is to innovate new
products, services, ideas and informations for the enterprise. The
entrepreneur foresees the potentially profitable opportunity and tries to
exploit it.
4. Managerial Function:
Entrepreneur performs a managerial function like determination of
business objectives, formulation of production plans, product analysis and
market research, organisation of sales procurring machine and
material, recruitment of men and undertaking, of business operations.
21. 5. Decision Making Function:
๏ He determines the business objectives suitable for the enterprise,
๏ He develops an organization and creates an atmosphere for maintaining a
cordial relationship with subordinates and all employees of the organization,
๏ He decides in securing adequate financial resources for the organisation,
๏ He decides in introducing advanced modern technology in the enterprise,
๏ He decides the development of a market for his product, develops new product
or modify the product in accordance with the changing consumer's preference,
๏ He also decides to maintain good relations with the public authorities as well
as with the society at large for improving the firms image before others.
22.
23. Economistโs view
๏ The position of the entrepreneur in modern
production is like that of the director of a play.
๏ The entrepreneur directs production and he must do
whatever is necessary for its success.
24. Role in modern economic development has
at least three aspects
(a) The entrepreneur co-ordinates the other factors of
production.
Co-ordination involves selection of the right type of
factors, employment of each factor in the right
quantity, use of the best technical devices, division of
labour, reduction of waste etc.
26. (c) The entrepreneur innovates
The entrepreneur can undertake any type of the
following five categories of innovation.
1. The introduction of a new good or a new quality of a
good.
2. The introduction of a new method of production.
3. The opening of a new market.
4. The conquest of a new source of supply of raw
materials.
5. The carrying out of a new organisation of any
industry.
27.
28. ๏ Entrepreneurship is the dynamic need of a developing
nation and sustains the process of economic
development in the following ways:
29. ๏ Employment generation
๏ National income
๏ Dispersal of Economic power
๏ Balanced Regional development
๏ Harnessing Locally available resources and
Entrepreneurship
๏ Reducing unrest and social tension amongst youth
๏ Innovations in enterprises
๏ Improvement in living standards
๏ Economic independence
