An Entrepreneur is a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome.
An Ambitious leader who combines land, labor, and capital to create and market new goods or services .
“ Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction of independence .”
Entrepreneurship Process The Idea Realizing the opportunity Engaging the idea & opportunity Exploiting the opportunity to build something of value The Inventor The Opportunity Spotter The Project Champion
Entrepreneurship development (ED) refers to the process of enhancing entrepreneurial skills and knowledge through structured training and institution-building programmes.
ED aims to enlarge the base of entrepreneurs in order to hasten the pace at which new ventures are created. This accelerates employment generation and economic development.
Entrepreneurship development focuses on the individual who wishes to start or expand a business.
Small and medium enterprise (SME) development , on the other hand, focuses on developing the enterprise, whether or not it employs or is led by individuals who can be considered entrepreneurial.
Furthermore, entrepreneurship development, entrepreneurship development concentrates more on growth potential and innovation than SME development does.
Requirements to be an entrepreneur
Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, at Chorwad, Gujarat, into a Modh family. His father was a school teacher.
Dhirubhai Ambani started his entrepreneurial
career by selling "bhajias" to pilgrims in
Mount Girnar over the weekends .
Entrepreneurs Are Born, Not Made
After doing his matriculation at the age of 16, Dhirubhai moved to Aden, Yemen. He worked there as a gas-station attendant, and as a clerk in an oil company.
He returned to India in 1958 with Rs 50,000 and set up a textile trading company.
Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built India's largest private sector company, Reliance India Limited, from a scratch.
Over time his business has diversified into a core specialisation in petrochemicals with additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics .
TRAINING PROGRAMME CONSIST OF SIX MODULES
Introduction of entrepreneurship
Essentials of management
Fundamentals of project feasibility
Organizing the business
ENTREPRENEURIAL DEVELOPMENT CYCLE ENTREPRENEURIAL CYCLE
STRATEGY / ROLE FOR ENTREPRENEURSHIP DEVELOPMENT
Dynamic role of public entrepreneurship
Development of industrial culture
Development of management education and industrial training
Development of backward areas
Adequate measures for mobilizing talent
Better economic administration
Adequate and timely cre dit
ISSUES OF ENTREPRENEURIAL DEVELOPMENT PROGRAMMES
Structure and composition of EDP
Areas of operation
Lack of specialists support
Low institutional commitment
6) Non-availability of inputs 7) ill-planned training methodology 8) No clear-cut objective 9) Lack of clarity in approach and 10) Lack of creativity and commitment
SPECIALISIED ENTREPRENEURSHIP DEVELOPMENT AGENCIES
Small Industries Service Institutes (SISI)
Industrial management course
Small Industries Development Organization (SIDO)
National Small Industries Corporation
Small Industries Extension Training Institute
5. Entrepreneurship Development Institute Of India
Selecting potential entrepreneurs
Product selection and project report preparation
Practical training and work experience
Post training support and follow-up
6. Institute For Rural Management And Administration
7. Maharashtra Centre For Entrepreneurship Development (MCED)
8. National Institute Of Entrepreneurship And Small Business Development (NISEBUD)
To help institution in carrying out activities relating to entrepreneurship development
To provide vital information, support to trainers, promoters & entrepreneurs
To hole examination & test & confer certificates & diplomas
9. Entrepreneurship Development Institute Of India (EDII)
Increase the supply of trained entrepreneurs through training.
Improve managerial capabilities of small-scale industries.
Contribute to the dispersal of business ownership and thus expand the social base of Indian entrepreneurial class.
Participate in institution-building efforts.
Promote micro-enterprises at the rural level.
Inculcate the spirit of ‘Entrepreneurship’ amongst youth.
Collaborate with similar organizations in India and other developing countries to accomplish the above objectives.
Entrepreneurship And Economic Development
Culture consists of tangible man-made objects, such as automobiles, clothing, furniture, buildings and tools and intangible concepts such as laws, morals, and knowledge.
In addition, culture includes the values, character, qualities, skills acceptable within the particular society.
Entrepreneurial culture thus implies vision, values, norms and traits that are conductive for the development of the economy
ROLE OF CULTURE IN ENTREPRENEURIAL DEVELOPMENT
Environment For Entrepreneurship
Standard of education and technical knowledge
Political stability and government’s policy
Caste and religious affiliation
Availability of supporting facilities
Achievement motivation and
Personality and personal skill
Chad Hurley, 29, Steve Chen, 28 & Jawed Karim, 27
Founders of YouTube
Broadcasts 100 million short videos daily on myriad subjects
Sold to Google
Muhammad Yunus 1940
Founded a banking system 30 years ago
To lend small amounts of money to the rural poor in Bangladeshi villages .
2006 Nobel Peace Prize winner ,
Michael Dell 1965
Created a new model for PC sales
Cutting out the retail middleman and custom-building computers to suit buyer‘s needs put Dell at the front of the class of PC makers.
Tom Anderson & Chris DeWolfe
Founders of MySpace.com
Registering 160,000 people per day with no marketing.
As of September 2007, there are over 200 million accounts.
Sociological Theories Divided into 2 Theories :
Theory of Religious Beliefs
Impact of religion shapes on the entrepreneurial culture.
Emphasized that entrepreneurial energies means of religious beliefs.
Spirit of Capitalism
Inducement of profit
Adventurous spirit facilitate taking risk
2. Theory of Social Change
How a traditional society becomes one in which technical progress takes place.
The entrepreneur’s creativity is the key element of Social Transformation and Economic Growth.
Reveals general model of the social- inter- relationship among physical environment, social structure, personality and culture.
Social Change – Catalyst for Entrepreneurs.
Technology is an Integral Part of Socio- Cultural Complex .
Everett E. Hagen
1.Schumpeter’s Theory of Innovation
Entrepreneurship and economic development are interdependent.
Economic development takes place when a country' real rational income increases.
An entrepreneur is one who perceives the opportunities to innovate.
Distinction between Invention and Innovation
Emphasis on Entrepreneurial Function.
Presentation of Disequilibrium Situation through Entrepreneurial.
Entrepreneurialism dream and the will to found a private kingdom.
Schumpeter remained silent about as to why some economics had more entrepreneurial talent than others.
Covers the following 5 cases-
New goods/ services.
New method of production.
New source of supply of raw materials.
Peter F. Drucker said that “an entrepreneur is one who always searches for change, responds to it and exploits it as an opportunity.”
He laid emphasis on two important factors – innovation and resources.
Value and satisfaction obtained from resources
Material is converted into resources and are combined in a new or more productive configuration
Entrepreneurship is the practice which has knowledge base.
Entrepreneurship is equally important to small business and non-economic institutions.
Peter F. Drucker
Cultural theories point out that entrepreneurship is the product of culture.
Entrepreneurial talents come from cultural values and cultural system embedded into the cultural environment.
He explains that the supply of Entrepreneurship is governed by cultural factors & culturally minority groups are the spark – plugs of entrepreneurial economic development.
Emphasis on skills
Contribution of social classes like parsees in india
McClelland's Achievement Motivation Theory
According to David McClelland, regardless of culture or gender, people are driven by three motives:
ACHIEVEMENT, AFFILIATION, and INFLUENCE.
The 'need achievement' refers to an unconscious disposition to energize and drive. High Achievement individuals are constantly 'competing with standards of excellence'. Further, they are attracted to tasks of moderate difficulty.
McClelland further described the profile of an entrepreneur as someone high in Achievement and low in Power, while good managers have high Power and low Achievement.
Over 4 decades of research into the characteristics of entrepreneurs has established that the essential need for achievement for entrepreneurship is learned at an early age. Persons with a high 'need achievement' have a general predisposition towards entrepreneurial activity.