It will give you overview about entrepreneurship and its terminology.

1. Entrepreneurship: An
Overview
Prepared by:
Dr. Deepa Baliyan
Assistant Professor
Faculty of Commerce
Hindu College, Moradabad

2. Entrepreneur
 A person who tries to create something new
 organizes production
 undertakes risks
 handles economic uncertainty
 involved in an enterprise

3. Characteristics of an Entrepreneur
 Hard worker
 Desire for high achievement
 Independent
 Foresight
 Highly optimistic
 Good organizer
 Innovative

4. Characteristics of an Entrepreneur
 Managerial skills
 Good communication skills
 Imaginative thinking
 Emotional tolerance
 Urge to take calculated risk
 Self confident
 Seeing & acting on opportunities

5. Factors influencing Entrepreneurship
 Economic Factors
 Capital
 Labor
 Raw Material
 Market
 Social Factors
 Legitimacy Entrepreneurship
 Social Mobility
 Marginality

6. Contd.
 Psychological Factors
 Need Achievement
 Withdrawal of status respect
 Other Factors
 Govt. Actions

7. Functions of Entrepreneur
 Assumption of risk
 Business decisions
 Managerial functions
 Function of innovation
 Idea generation
 Determination of objectives
 Raising funds
 Collecting resources

8. Contd.
 Organizing production
 Ensuring quality
 Promotion
 Technological updation
 Improving working conditions
 Cost control
 Market research
 Recruitment
 Implementation of project

9. Types of Entrepreneur
Clarence Danhof classified on the basis of
development stages:
 I nnovating Entrepreneurs
 Imitative Entrepreneurs
 Fabian Entrepreneurs
 Drone Entrepreneurs
 Other types
 Solo operators
 Active Partners
 Inventors
 Buyers
 Life Timers
 Intrapreneur

10. Entrepreneurial motivation & Barriers
Motivational Factors
 Technical Knowledge
 Entrepreneurial training
 Market contacts
 Family business
 Availability of capital

11. Barriers
 Lack of technical skills
 Lack of market knowledge
 Lack of Business knowledge
 Time pressure & distractions
 Legal & bureaucratical constraints

12. Entrepreneurship
 It is the process of identifying opportunities in the market place collecting
the resources required to pursue these opportunities & investing the
resource for a long term

13. Features of Entrepreneurship
 Economic activity
 Innovative function
 Goal oriented
 Risk bearing function
 Organizing function
 Dynamic process

14. Importance of Entrepreneurship
 Improvement in National income
 Generation of employment
 Balanced regional development
 Improvement in living standards
 Economic independence

15. Classification of Entrepreneurship
 Contextual basis
 Standalone startup
 Corporate entrepreneurship
 Co-preneurship
 Technology entrepreneurship
 Service entrepreneurship
 E- entrepreneurship
 Novelty basis
 Innovating entrepreneurship
 Imitative entrepreneurship
 Intention basis
 Build to sell or serial entrepreneurship
 Build to last entrepreneurship

16. Entreprenuerialculture & stages
 Entreprenuerial interest
 Generate ideas for screening
 Venture screening
 Develop & refine the concept
 Determine resources required
 Aquiring necessary financials
 Develpoing the business plan
 Implement & change
 Growth or exit

17. Theories of Entreprenuership
 Max Weber’s theory of social change
 It depends on ethical value system.
 Gives treatment to ethics & capitalism.
 Boosting rapid growth through materialistic things with base as ethical
values.
 Its criticisms:
 This system based on Hindu values
 Rapid growth occurred that proves that Indians are not that much averse

18. Hoselitz sociological theory
 Based on societal values.
 It shapes one’s attitude & role expectations.
 Entrepreneurship can grow in a flexible social environment.
 It contributes to creative adjustments & innovations.

19. Trait theory of entrepreneurship
 It is based on the characteristics of behavior of a person like:
 Creativity
 Self-confidence
 Risk-taking
 Imagination

20. Economic theory of entrepreneurship
 It is based on economic incentives & gains.
 Economic factors which emphasis it are:
 Market incentives
 Availability of sufficient capital
 Institutional support

21. McClelland’s psychological theory
 It depends upon the psychological characteristics.
 Certain kinds of needs get uprooted through psychology. These are:
 Need for achievement
 Need for power
 Need for affiliation
 Ideal state of these needs are:
 High power needs & low affiliation needs meke a good entrepreneur.
 Moderate achievement needs results into less risk association.

22. Theory of social behavior
 It depends on the behavior exhibited by a
person & the acceptance & non-acceptance of
that behavior by various social structures.
 The structures which are the suppliers of
entrepreneurship are as follows:
 Limitation structure
 Demand structure
 Opportunity structure
 Labor structure
 Main criticism of this theory is this based on
ideal supply structures.

23. X-efficiency theory
 Basically discuss the optimum utilization of resources.
 Finding out the deficiencies or lack in efficiencies.
 And finally the gap is being filled by various inputs

24. Schumpeter’s innovation theory
 It depends on innovation.
 It describes the entrepreneur as innovator not inventor
 Innovation leads to changes like:
 New features of a product or quality improvement.
 New methods of production
 Opening of new market

25.  This theory is based on certain assumptions:
 Existence of capital
 Developed banking system
 High level technology
 This shows that it is considerable for developed economies.
 The limitations of this theory are:
 People are reluctant towards innovation.
 It ignores other entrepreneurial functions.
 It mainly focus on high profile entrepreneurs.

26. What is EDP?
 Entrepreneurship Development Program (EDP) is
designed to help a person in strengthening & fulfilling
his entrepreneurial motive & in acquiring skills &
capabilities necessary for playing his / her role
effectively & efficiently.
 There are three important variable: Location, Target
Group & Enterprise.

27. Objectives of EDP
 Develop & strengthen their entrepreneurial
quality / motivation.
 Analyze environment related to small industry &
small business.
 Helps in selecting Project/Product
 Formulate Projects
 Understand the process & procedure of setting
up of small enterprises
 Know & influence the source of help/support
needed for launching the enterprise.
 Acquire the basic management skills
 Know the pros & cons of being an entrepreneur
&
 Acquaint & appreciate the needed social
responsibility.

28. Issues of EDP
 Structure & Composition of EDPs
 Areas of Operation
 Fixing Priorities
 Lack of Specialist’s Support
Some operational problems of EDP are:
 Inherent inability
 Diverse opinions
 No proper strategy
 Low institutional commitment
 No local support
 Non-availability of inputs
 Poor follow-up
 No adequate research facilities

29. Thank You