Concept of Entrepreneurship“Entrepreneur is an individual who undertakes toinitiate, maintain or organize a profit oriented businessunit for production or distributions of economic goodsand services”.“Entrepreneurs are those people who have the ability to see andevaluate the opportunities , together with necessary resources totake advantages of them and to initiate appropriate actions toensure success”. - International labor organization
Concept of EntrepreneurshipEconomic ActivityCreative ActivityPurposeful ActivityRisk BearingOrganizing FunctionDynamic ActivityCharacteristicsofEntrepreneurship
EvolutionoftheconceptEntrepreneurshipConcept of Entrepreneurship1. In early 16th century, the Frenchmen who organized and led militaryexpeditions were referred as‘Entrepreneurs’.2. Around 1700 A.D. the term was used to architects and contractors ofpublic works.3. Quesnay regarded the rich farmers as entrepreneurs who managedand made their business profitable by intelligence, skill and wealth.4. The term “entrepreneur’ was applied to business initially by Frencheconomist, Cantillon, in 18th century, to designate a dealer whopurchases the means of production for combining them intomarketable products.
Concept of Entrepreneurship, Entrepreneur and Enterprise.Entrepreneur Entrepreneurship EnterprisePerson Process in Action ObjectIn Many countries, the entrepreneur is often associated with a person who starts hisown new and small Business (Various Forms). But not every new and small business isentrepreneurial or represents entrepreneurship.UrgeSkill Vision Growth MANAGEMENTEnterpriseRiskInnovationORGANIZATION
Growth of Entrepreneurship in IndiaVedic period- Handicraft entrepreneurshipBritish InvasionCommunity entrepreneursEntrepreneurship post-IndependenceEmergence of New Breed of Entrepreneurs
Growth of Entrepreneurship in India1. Promotes Capital Formation2. Creates Large-Scale Employment Opportunities3. Promotes Balanced Regional Development4. Reduces Concentration of Economic Power5. Wealth Creation and Distribution6. Increasing Gross National Product and Per Capita Income7. Improvement in the Standard of Living8. Promotes Countrys Export Trade9. Induces Backward and Forward Linkages10. Facilitates Overall Development
Concept of IntrapreneurshipA person within a large corporation who takes directresponsibility for turning an idea into a profitable finishedproduct through assertive risk-taking and innovation.SoloPhaseNetworkPhaseBootLeggingPhaseFormalTeamPhaseProcess of Intrapreneurship
Trait Traditional Managers Entrepreneurs IntrapreneursPrimary Motive Promotion & other traditional rewards, suchas office, staff and powerIndependence, opportunity tocreate and make moneyIndependence & ability to advancein the corporate organization,rewardsTime orientation Short term: Meeting quotas & budgets,weekly, monthly, quarterly and the annualplanning horizon.Survival and achieving 5 to 10years growth of business.Between entrepreneurial andtraditional managers. Dependingon urgency to meet self-imposed &corporate timetable.Activity Delegates & supervises more than directinvolvement.Direct involvement Direct involvement more thandelegation.Risk Careful Moderate risk taker Moderate risk takerStatus Concerned about status; symbol Not concerned about statussymbolNot concerned about traditionalstatus symbol, desiresindependence.Failure & Mistakes Tries to avoid mistakes & Surprises. Deals with mistakes and Failures. Attempts to hide risky projectsfrom view until ready.Decisions Usually agrees with those in uppermanagement positionsFollows dream with decisions Attempts to hide risky projectsfrom view until readyWho serves Others. Self & Customers Self, customers and sponsorsRelationship with others Hierarchy as basic relationship Transactional & deal making asbasic relationshipTransaction with in hierarchy.Comparative Study
Types of EntrepreneursAccording to type ofBusinessTraitsBusiness Entrepreneurs Conceive an idea for a new product or service and then create abusiness to materialize their ideas.Trading Entrepreneur More concerned about trading activity and not manufacturing.This includes identification of potential markets & stimulation ofdemand.Industrial Entrepreneur Essentially a manufacturer who identifies the potential needs ofthe customer and tailors products or services to meet them.Corporate Entrepreneur Demonstrates his innovative skill in organizing & managingundertaking.Agricultural Entrepreneur Undertakes agricultural activities as raising & marketing of crops,fertilizers & other inputs of agriculture.
Types of EntrepreneursBased on Adaptability TraitsInnovative Entrepreneurs Aggressive in experimentation, Very innovative, Show hightendency of undertaking risk.Imitative Entrepreneur Not vey innovative, Do not make new products or services, but tryto copy existing with minor variations.Fabian Entrepreneur Skeptical –Risk averse-Non innovative-Static in nature-Nodiversification & Expansion-Highly traditional in nature.Drone Entrepreneur Refuse to adopt & use opportunities. But they to make changes intheir production methods.
Types of EntrepreneursBased on Natureof economyNature ofEconomyTraitsInnovative Developed Aggressive in experimentation, Very innovative,Show high tendency of undertaking risk.ImitativeEntrepreneurDeveloping Not vey innovative, Do not make new products orservices, but try to copy existing with minorvariations.ExploitativeEntrepreneurUnder-developed Aggressive profiteer; survives in societies withhigh economic disparity, exploits all possibilitiesfoe personal benefits through enterprises.Model Any kind of Market Emphasis on the social benefit aspect, spendsprofit on unit expansion, goes in for productdiversification & assumes total responsibility forsuccess & failure.
Types of EntrepreneursAccording to Motivation TraitsPure Entrepreneurs Motivated by psychological & economic rewards. Under takesentrepreneurial activity for personal satisfaction in work, ego.Induced Entrepreneur Under takes entrepreneurial activity due to policy measures ofthe government that provides assistance & other benefits.Motivated Entrepreneur Motivated by the desire for self fulfillment.Spontaneous Entrepreneur Natural talents.
Knowledge Entrepreneurship1. Knowledge entrepreneurship describes the ability to recognize orcreate an opportunity and take action aimed at realizing theinnovative knowledge practice or product.2. Knowledge entrepreneurship is different from ‘traditional’economic entrepreneurship in that it does not aim at therealization of monetary profit, but focuses on opportunities withthe goal to improve the production (research).3. It has been argued that knowledge entrepreneurship is the mostsuitable form of entrepreneurship for not-for-profit educators, researchers and educational institutions.
Social Entrepreneurship Social entrepreneurship is the work of social entrepreneurs.A social entrepreneur recognizes a social problem and uses entrepreneurialprinciples to organize, create and manage a venture to achieve socialchange (a social venture). While a business entrepreneur typically measuresperformance in profit and return, a social entrepreneur focuses on creatingsocial returns.Thus, the main aim of social entrepreneurship is to further social andenvironmental goals. Social entrepreneurs are most commonly associated withthe voluntary and not-for-profit sectors,[ but this need not preclude making aprofit.
Concept of Women EntrepreneurshipDescription DataTotal Population 1080 MillionWomen Population 460 MillionPercentage of Total Population 46.5Women Workforce 140 MillionPercentage of Female population 32.9Women Entrepreneur 9% of totalRural-Urban divided 90% (R) 10% (U)Women Entrepreneurs may be defined as the women or group of women whoinitiate, organise and co-operate a business enterprise.Causes forWomen to become entrepreneurs[a] Chance entrepreneurs [b] Forced entrepreneurs [c] Created entrepreneurs
The Indian women are no longer treated as show pieces to be kept at home.Dr. Kiran Mazumdar-Shaw, Chairman & Managing Director of Biocon Ltd., who became India’srichest woman in 2004, was educated at the Bishop Cotton Girls School and Mount Carmel Collegein Bangalore. She founded Biocon India with a capital of Rs.10,000 in her garage in 1978 – theinitial operation was to extract an enzyme from papaya. Her application for loans were turneddown by banks then – on three counts – biotechnology was then a new word, the company lackedassets, women entrepreneurs were still a rarity. Today, her company is the biggestbiopharmaceutical firm in the country.Ekta Kapoor, creative head of Balaji Telefilms, is the daughter of Jeetendra and sister of Tushar Kapoor.She has been synonymous with the rage of soap operas in Indian TV, after her most famousventure ‘Kyunki Saas Bhi Kabhi Bahu Thi’ which was aired in 2000 on Star plus. Ekta dominates IndianTelevision.At the 6th Indian Telly Awards 2006,she bagged the Hall Of Fame award for hercontributions.Neelam Dhawan, Managing Director, Microsoft India, leads Microsoft India. She is a graduate from St.Stephens College in 1980,and also passed out from Delhis Faculty Of Management studies in 1982. Thenshe was keen on joining FMCG majors like Hindustan Lever and Asian Paints, both companies rejectedDhawan, as they did not wish to appoint women for marketing and sales.Naina Lal Kidwai, was the first Indian woman to graduate from HarvardBusiness School. Fortune magazine listed Kidwai among the worlds top 50Corporate Women from 2000 to 2003. According to the Economic times, sheis the first woman to head the operations of a foreign bank in India. ( HSBC)
Indu Jain, the multi-faceted lady used to be the Chairman of the Times Group-The most powerful andlargest Media house India has known. Indu Jain is known by many different identities such as that ofspiritualist,humanist,entrepreneur,an educationalist but most prominently she played the role of theChairman of Times Group. Indu Jain is the perfect picture of the successful Indian Womanentrepreneur.The Indian women are no longer treated as show pieces to be kept at home.Simone Tata, has been instrumental in changing a small subsidary of Tata Oil Mills into the largestcosmetic brand in India – LAKME, synonymous today with Indian Fashion. She became a part of Lakmeduring 1961 and has been responsible for turning the company into one of the biggest brands offashion in India. At present she is the Chairperson of Trent Limited, a subsidary of Tata Group.Preetha Reddy, ManagingDirector of ApolloHospitals, Chennai, one of thelargest healthcareconglomerates of India, is oneof the pioneer businesswomanof India in the segment ofHealth Care Industry.Indra Nooyi is an Indian-born American businessexecutive. She is the current Chairman and ChiefExecutive Officer of PepsiCo, the second largestfood & beverage business in theworld. According to Forbes, she is consistentlyranked among Worlds 100 Most PowerfulWomen.Chanda Kochhar is currently the Managing Director (MD)of ICICI Bank and Chief Executive Officer (CEO). ICICI Bankis Indias largest private bank and overall second largest bankin the country.
Problems of Women Entrepreneurs1. Poor Self-Image2. Inadequate motivation3. Role conflict4. CulturalValues5. Lack of social acceptance6. Lack of Knowledge about business opportunities7. Lack of Managerial Skills8. Lack of experience or business background9. Product choice10. Marketing skills11. Accounts & Finance12. Problem solving13. Life style
Institutions supporting Entrepreneurs1. Self-Help Group (SGHs)2. Federation of IndianWomen Entrepreneurs (FIWE)3. Women’s IndiaTrust (WTI)4. Small Industries Development Bank of India (SIDBI)5. Small Industries Development Organization (SIDO)6. Consortium ofWomen Entrepreneurs of India (CWEI)7. National Bank for Agriculture and Rural Development (NABARD)8. Self EmployedWomensAssociation (SEWA)9. Association ofWomen Entrepreneurs of Karnataka (AWAKE)
Entrepreneurial competenciesAbility to control and operate the things in the environmentand the environment itself.Characteristics or Qualities of an Entrepreneur1. Objectivity2. Optimism3. Seizing Opportunities4. Open to feedback5. Attitude towards Money6. Proactive management7. Flexible authority relationship8. Sound decision making ability9. Good teamWork & Leadership skills10. Perseverance11. Self confidence12. Dedication & Devotion
Functions of Entrepreneurs1. Innovation2. Risk taking3. Organizing building4. Managing5. Perceiving market opportunities6. Managing finance7. Managing8. Managing human resources