entrepreneur and facts about it

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entrepreneur and facts about it

  1. 1. Module 1 Concept of an Entrepreneur and Entrepreneurship 12/5/2013 1
  2. 2. CONTENT 1. 2. 3. 4. The entrepreneur’s role, task and personality, A typology of entrepreneurs, Entrepreneurship as a style of management, The entrepreneurial venture and the entrepreneurial organization 12/5/2013 2
  3. 3. WHO ARE ENTREPRENEUR? Entrepreneur can be defined as: 1. Creating something new or initiative taking or innovative, 2. Accepts risks or failure, 3. Gets reward. Entrepreneurs are found in all professions (education, medicine, architecture, research, law, engineering). 12/5/2013 3
  4. 4. Process Uniqueness Growth Profit or No Profit 12/5/2013 Entrepreneur Defining Entrepreneurship Creating Value Innovation Organization Creation 4
  5. 5. MISCONCEPTIONS ABOUT ENTREPRENEURSHIP 1. Successful entrepreneurship needs only great idea. 2. Entrepreneurship is easy. 3. Entrepreneur is risk gamble. 4. Entrepreneurship is found only in small business. 5. Entrepreneurship ventures and small business are same thing. 12/5/2013 5
  6. 6. TYPES OF ENTREPRENEURS 1. 2. 3. 4. 5. Nascent Entrepreneur Novice Entrepreneur Habitual Entrepreneur Serial Entrepreneur Portfolio Entrepreneur 12/5/2013 6
  7. 7. REWARDS AND CHALLENGES OF BEING ENTREPRENEUR Rewards: 1. High degree of freedom 2. Get to use a variety of skills and talents 3. Freedom to make decisions 4. Accountable to yourself only 5. Feeling of achievement and pride 6. Potential for greater financial rewards 12/5/2013 7
  8. 8. REWARDS AND CHALLENGES OF BEING ENTREPRENEUR (CONT.) Challenges: 1. Must be comfortable with changes and uncertainties. 2. May face tough economic choices. 3. Must be comfortable with taking risk. 4. Need many different skills and talents. 5. Must be comfortable with potential failure. 12/5/2013 8
  9. 9. ENTREPRENEURIAL DECISION PROCESS 1. Exploring the entrepreneurial context 2. Identifying opportunities and competitive advantage 3. Starting the venture i) Researching feasibility ii) Planning the venture iii) Organizing the venture iv) Launching the venture 12/5/2013 possible 9
  10. 10. ENTREPRENEURIAL DECISION PROCESS (CONT.) 4. Managing the venture i) Managing processes ii) Managing people iii) Managing people and Entrepreneurial challenges 12/5/2013 10
  11. 11. 12/5/2013 11
  12. 12. REASONS FOR THE FAILURE OF BUSINESS • • • • • • • • Wrong location Inexperienced promoters Technological factors Non productive capital asset Long gestation period Rosy pictures presented by consultancy firms Faulty demand forecasting Improper environmental scanning 12/5/2013 12
  13. 13. VISIBLE PROBLEMS FOR THE BUSINESS • Internal problems • External problems 12/5/2013 13
  14. 14. INTERNAL PROBLEMS • • • • • • Management problems Financial problems Labor problems Diversion of resources Failure to modernize Personal wasteful expenditure 12/5/2013 14
  15. 15. EXTERNAL PROBLEMS • • • • • • Govt. policy Increased competition from MNCs Power cuts Shortage of raw material Recession in the market Credit squeeze 12/5/2013 15
  16. 16. SIGNIFICANCE OF ENTREPRENEUR IN ECONOMIC DEVELOPMENT • Promotes capital formation by mobilizing idle savings • Provides immediate large-scale employment • Helps in reducing the concentration of economic power • Stimulates equitable redistribution of wealth, income • Promotes country’s export trade: an important ingredient to economic development • Encourages effective resource mobilization of capital and skill 12/5/2013 16
  17. 17. COMPARISON OF ENTREPRENEURS AND MANAGERS • Managers 1. 2. Dependents on owners. Primary motives are promotions and traditional corporate rewards. Short term orientations meeting quotas, budgets or annual planning. Delegates and supervises more than direct involvement. Careful and tries to avoids failures and risks. Operates from with in the organization. Need not to raise capital Serves others Usually agrees to decisions taken at upper management positions. 3. 4. 5. 6. 7. 8. 9. 12/5/2013 • Entrepreneurs 1. Independent 2. Primary motives are independence, opportunity to create and money. 3. Survival and achieving 5-10 yrs growth of business. 4. Direct involvement. 5. Deals with full risks and failure. 6. 7. 8. 9. Operates from outside. Himself raises the necessary capital. Serves self and customers. Follows dreams with decisions taken by himself. 17
  18. 18. TYPES OF START-UPS 1. 2. 3. 4. Lifestyle firms Foundation firms High-potential venture Gazelles 12/5/2013 18
  19. 19. Chapter Closed 12/5/2013 19

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