Entrepreneurship

1. MODULE - 4
ENTREPRENEURSHIP
Unit 1: Meaning, elements, determinants and importance of
entrepreneurship and creative behavior;; Dimensions of
entrepreneurship. The contemporary role models in Indian business:
their values, business philosophy and behavioral orientations;
Concept of business groups and role of business houses, family
business in India;

2. Who is an Entrepreneur and
What is Entrepreneurship?

3. The word “entrepreneur” is derived from the French word “entreprendre”
which means ‘to undertake’ i.e. individuals who undertake the risk of a new
enterprise. The word ‘entrepreneur’, therefore, first appeared in the French
language in the beginning of the sixteenth century. The word was coined by
Richard Cantillon, an Irishman, living in France.
According to Cantillon “An entrepreneur is a person who buys factor
services at certain prices with a view to selling its product at uncertain prices”
Hence an entrepreneur can be defined “as a person who tries to create
something new, organizes production and undertakes risks and handles
economic uncertainty involved in enterprise”

4. Person Entrepreneur
Process
Entrepreneurship
Object
Enterprise
Entrepreneur Entrepreneurship
Person Process
Organizer Organization
Innovator Innovation
Risk-bearer Risk-bearing
Motivator Motivation
Creator Creation
Visualizes Vision
Leader Leading
Imitator Imitation

5. What are the Characteristics of entrepreneurs ?
1. Facilitator and Co-ordinator
2. Innovation and Creativity
3. Self-Confident and Ambitious
4. Persistence and Endurance
5. Risk Bearer
6. Interpersonal Skills-Motivation
7. Goal Oriented
8. Need for Achievement
9. Adventurism
10.Dynamic Leader
11.Decision Making Capability

6. • Production
• Marketing &
Advertising
• Planning
• Organising
• Staffing
• Directing
• Controlling
• Innovation
• RiskTaking
• Organising
• Detailed
Investigation
• Financing
• Assembling
Promotional Entrepreneurial
Commercial
Managerial

7. Case Discussion:
The idea for Spanx came to Sara in 1998 when she was preparing for a party
and couldn't find the right undergarment to wear under her white pants.
Frustrated with the lack of suitable options, she decided to cut the feet off a
pair of pantyhose and wear them as makeshift undergarments. The result was
smooth and shaping, giving her a more streamlined appearance.
Recognizing the potential of her simple yet effective invention, Sara Blakely
took her $5,000 in savings and invested it into creating a prototype and
patenting her idea. She faced numerous rejections from hosiery mills and
potential investors, but she remained persistent and unwavering in her belief in
the product.
Who is Sara and What activity Sara is Undertaking Explain.

8. 1. Innovation
2. Detailed Investigation
3. Risk Taking
4. Financing

9. Why should you become an Entrepreneur?
♦ You will be your own boss and boss to other people
♦ You will make money for yourself rather than for someone else.
♦ You may participate in every aspect of running a business and gain experience
♦ You will have the chance to work directly with your customers.
♦ You will have the satisfaction of creating and running a successful business.
♦ You will be able to work in a field of area that you really enjoy.
♦ You will have the chance to build retirement value.
Activity
Consider an entrepreneur you know personally. What was the most
significant reason for his or her following an independent business career? If you
don’t already know the reason, discuss it with (that person) your group.

10. Rewards for an Entrepreneur
• Freedom to work.
• Satisfaction of being own boss.
• Power to do things as he likes.
• Rewards of ownership and retirement assurance.
• Respect of family and friends
Penalties for an Entrepreneur
1. Constraints of financiers, laborers, customers, suppliers, and debtors curtail his freedom.
2. Frustration due to availability of limited capital and other resources.
3. Social and family life is affected due to hard long hours of working.
4. Frustration due to non-achievement of full objectives.
5. Risk of failure.
6. Socio-political issues
7. Legal hurdles

11. Points Entrepreneur Manager
Status Owner Servant
Risk Assumes risk and uncertainty Manager does not bear any risk involved in
enterprise.
Rewards Profits, which are highly uncertain and not
fixed.
Salary which is certain and fixed.
Innovation. Entrepreneur himself thinks over what and
how to produce goods to meet the
changing needs of the customers. Hence he
acts as innovator / change agent
A manager simply executes plans prepared
by the entrepreneur.
Qualification An entrepreneur needs to possess qualities
and qualifications like high achievement
motive, originality in thinking, foresight,
riskbearing ability etc.
A manager needs to possess distinct
qualifications in terms of sound knowledge
in management theory and practice.
Motive The main motive of an entrepreneur is to
start a venture for his personal
gratification.
Main motive of a manager is to render
services in an enterprise already set by
someone else.

12. Anjali Saud and Vimeo
When Anjali joined, Vimeo was losing money, with annual revenue under $40 million, and
was looking to build a subscription service to rival the likes of Netflix and Amazon Prime.
However, Sud had a vision for the company’s future not in Hollywood hits but Silicon Valley
plumbing. Her plan was to shift its focus from entertainment to entrepreneurs.
At this time, Sud was the Director of Marketing and understood the opportunity to offer a
one-stop platform for businesses to shoot, edit, store, and distribute video, akin to what
Squarespace had done for websites.
Result?
• In Q4 2020, Vimeo posted sales growth of 54%
• YoY and net subscriber growth of 25% QoQ, which led it to raise $450 million over two
funding rounds in the last year alone. As a consequence,
• Vimeo shut down the subscription video streaming division in 2017, and made Anjali Sud
the CEO.

13. Google’s Gmail, launched on the 1st April 2004, was the first true landmark
service to emerge from Google since its search engine debuted in 1998.
Paul Buchheit started his career at Google in 1999, becoming the company’s
23rd employee. He had been working in the development of a web-based email
that could also provide a search engine within the already existing email
service. However, the idea to include a search engine within Google’s email
service was doubted strongly by many within the company. Most thought it was
a bad idea from both a product and strategic point of view. In addition, there
was worry amongst company brass about stretching Google too far beyond
search, making the service publicly available.
But these worries dissipated when Larry Page and Sergey Brin, Founders of
Google, decided to support Buchheit with his project.

14. The Entrepreneurial Organisation
The following are some methods that have been used by businesses to foster
intrapreneurship:
• Entrepreneurial employees can participate in the rewards of what they create,
such as being granted something like ownership rights in the internal enterprises
they create.
• The firm treats intrapreneurial teams as a profit centre, than as a cost centre
• Team members can choose the projects on which they work.
• Employees have access to training to help them learn new skills. Internal
enterprises are recognized within the organization and have official standing.
• The organization defines and supports a system of contractual agreements
between internal enterprises.
• The intrapreneurship plan includes a method of settling disputes that may arise
around the internal enterprise and employees.