Introduction to entrepreneurship

1. ENTREPRENEURSHIP

3. Entrepreneur
 Person who organises & operates a
business concern for the purpose of
making profit
Any person who starts & operate
business

5. Entrepreneur
 Definition :-
“an entrepreneur is an economic agent who
unites all means of production, the labour force of
the one & the capital or land of the others & who
finds in the value of the products which result
from their employment, the reconstitution of the
entire capital that he utilizes & the value of the
wages, the interest & the rent which he pays as
well as profit belonging to himself”

7. Entrepreneurship
Refers to functions performed by
entrepreneurs in establishing an enterprise
Means creating something new,
organising, coordinating & undertaking
risk, & handling economic uncertainty

10. Elements of Entrepreneurship
Organising
Risk bearing
Vision
innovating

11. Characteristics of Entrepreneurship
Doing things in a new & better way
Decision –making in condition of uncertainty
Economic activity
Innovative activity
Creative & purposeful activity
Organizing activity
Risk-bearing activity

12. .
Entrepreneur Entrepreneur ship
Person
Visualiser
Creator
Organiser
Innovator
Risk bearer
Leader
Administrator
Motivator
Imitator
Communicator
initiator
 Process
 Vision
 Creation
 Organization
 Innovation
 Risk bearing
 Leadership
 Administration
 Motivation
 Imitation
 Communication
 initiative

13. .
Entrepreneur Manager
 Motive is to start a venture
by setting up an enterprise
 Owner of enterprise
 Assumes all risk &
uncertainties
 Reward is profit
 Act as innovator
 Possess qualities &
qualifications like
foresight, risk bearing
capacity etc.
 Involve different types of
personal skills
 Motive is to render services
in an enterprise
 He is an employee
 Does not bear risk &
uncertainties
 Reward is salary
 Translate the
entrepreneur’s ideas in
practice
 Distinct qualification in
terms of sound knowledge
in mgt theory & practice
 Human relation &
conceptual abilities

14. Characteristics of entrepreneur
hard work
Desire for high achievement
Optimism
Independence
Foresight
Organising ability

15. Characteristics of entrepreneur
Cont…..
Innovative skill
Mental ability
Ability to guard business secrets
Decision making
Ability to maintain human relations
Initiative & risk bearing

16. .
Entrepreneur enterprise
Usually a person
He is a risk bearer
He mobilizes raw
materials & other
resources for
production.
He is a decision maker
Business or service
units
Is an undertaking that
involved uncertainty &
risk
Utilises raw materials
& other resources for
production.
Implement the
decision taken by the
entrepreneur.

17. Entrepreneurial Functions
Innovation
Risk bearing
organization
 Other functions
Exploring market
opportunities
Mobilisation of production
resources
Managing finance
Managing production
process
Dealing in governmental
matters
Maintaing management-
employee relations

18. .

19. Entrepreneurial Traits
Knowledge
Skill
Motive
Mental ability
Clear objectives
Guarding of business secrets
Capacity to interact with people
Effective communication

20. Entrepreneurial Traits Cont…
Organisational & administration capacities
Looking for opportunities
Persistence
Self confidence
Efficient supervision
Motivation
Employees’ well-wisher
Hard working mentality

21. Entrepreneurial Traits Cont…
Efficient strategist
Imagination & initiative
Ability to organization & administration
Willingness to change
Ability to mobilize resources
Technical knowledge
Risk-bearing capacity

23. Motivation
Something that urges a person to move or
behave.
Definition :-
“motivation refers to the way in which
urges, drives, desires, strivings, aspirations or
needs direct, control or explain the behavior of
human beings"

24. Process of Motivation
Motive
BehaviourGoal

25. Theories of Motivation
Self-
actualisation
Needs
Esteem Needs
Social Needs
Safety
Needs
Physiologic
al Needs

26. Theory :-Maslow’s Needs Hierarchy
Theory
 Physiological Needs
 Food, water, shelter, clothing, water etc.
 Safety or Security Needs
 Social or affiliation Needs
 Interact with his fellow entrepreneurs, employees &
others
 Esteem Needs
 Recognition, status, self esteem & self-respect
 Self-actualisation Needs
 Growth, achievement & advancement

27. Theory :-Mc Clelland’s Acquired
Needs Theory
 Need for affiliation
 Desire to establish & maintain friendly & warm
relationships with others
 Need for power
 Desire to influence & control other people, & hold
authority
 Need of achievement
 Desire to do difficult or complex tasks, to do something
more efficiently & to solve problems.

28. Motivating factors
Internal factors External factors
Desire to do
something new
Educational
background
Occupational
background
Govt. support
Labour & raw-material
availability
Encouragement from big
business concerns
Product demand

29. Achievement motivation
Inner feelings that activates an
entrepreneur to strive for success.
Desire to do well

30. Role of entrepreneurs in economic
development
Capital formation
Generating employment opportunities
Balanced regional development
Reduces the concentration of economic
power

31. Role of entrepreneurs in economic
development Cont….
Encourages the effective utilization of capital
& natural resources
Promotes export trade
Promote equitable distribution of wealth,
national income & political power
Stimulates economic development

32. .

33. Factors affecting Entrepreneurial
growth
Economic factors
Non-economic factors
Infrastructural facilities
Availability of capital
High risk
Technical know-how &
skills
skilled labour
Absence of subject as a
programme
Lengthy procedure to start
business
Social factors
Psychological factors
Cultural factors
Personality factors

34. Non-economic factors
Social factors
Psychological factors
Rational Behaviour
Legitimacy of
Entrepreneurship
Social Mobility
Social Marginality
Security
Need
achievement
Withdrawal
of status
respect

35. Social Factors
Rational Behaviour
Rational:-favorable condition, decision based on empirical
facts & critical scientific standards, developed countries.
Irrational:- unfavorable, decision based on custom &
tradition, less developed countries.
Legitimacy of Entrepreneurship
Means relevance of a system of norms & values within a
socio-cultural setting for the emergence of entrepreneurship
According to Schumpeter :- Legitimacy is a favourable
climate to growth of entrepreneurship.
Eg:- social status

36. Social Factors Cont…
Social Mobility
Involves the degree of both social & geographical mobility
According to Hoslitz & Mc Clelland :-Social Mobility is
favourable condition
According to Haggen :- lack of Social Mobility is
favourable condition
Influence other non-economic factors
Social Marginality
Individual or group transfer personnel ability to
entrepreneurial roles
Security

37. b) Psychological factors
Need
achievement
Withdrawal of
status respect
.
.

38. Psychological Factors
Need Achievement
Personality characteristics like high need achievement
Withdrawal of status Respect
Force
Inconsistency in status
Lost of expected status
Value symbols denigrated (make less importance or valuable
)

39. Non-economic Factors Cont...
 Cultural Factors
 Personality Factors

40. .

41. .

42. Unfavorable conditions in
underdeveloped countries
Lack of sufficient capital
Lack of skilled labour
Absence of minimum & economic social
overheads
Lack of proper markets
Absence of well developed institutions