1. Entrepreneur
• An entrepreneur is a person with a vision who orchestrates other
peoples time, talents and money to make his/her vision real.
• An entrepreneur is a person who organizes and operates a business
concern for the purpose of making profit. He is a specially talented
person having the qualities of skill, initiative and an insight of
innovation to achieve high goals.
• He looks for opportunities, identifies and seizes them for making
economic gains.
• Economic progress of a country mainly depends on the success or
failure of the entrepreneurial development in that country.
2. • Two major problems faced by the developing countries are
unemployment and underemployment.
• Unemployment – situation where individuals do not get any jobs and
there by earns nothing. It reduces the standard of living and the
economic development of the country.
• Underemployment – situation where the individuals are employed on
jobs which are below their educational standard.
• Example - An engineer appointed as a blank clerk
• Entrepreneurship solves all these problems.
3. So Why Choose to be an Entrepreneur?
• Freedom: “starting and running a business is the best way of controlling your
destiny”
• Changing the world: “creating an enterprise is perhaps the most effective way
of making a positive difference to society that has ever been devised.” “What
could be more important than creating jobs?”
• Progress: “new business is about upsetting the status quo, thereby leading to
progress. I think that is a virtuous mission”
4. continued
• Social mobility: “business is a fantastic way for someone from a modest
background … to improve their life and get ahead.”
• Creative destruction: inefficient and loss making companies die … but
productive companies tend to create a virtuous circle: … attract talent, pay
more, make investors good returns, and can afford to launch better
products. This is called progress.”
• Creating a better future: “the inventive ability of entrepreneurs to find
solutions to … problems” such as global warming and so forth.
• Entrepreneurship is about striving for a better future – not just
dreaming.
5. Meaning of entrepreneur
• An individual can set up business ventures and enterprises by utilizing
his entrepreneurial talents. He can earn profit through production,
processing or distribution of goods and services to the society.
• He is one of the important segments of economic growth. He is a
catalytic agent of change, and works for the good of others. There by
he accelerates personal, economic as well as human development.
6. Evolution of the word entrepreneur
• Entrepreneur – word derived from the French verb ‘entreprendre’
which means ‘to undertake’.
• Original meaning – Organizer of musical or other entertainments.
• Early 16th century – Applied to those who were engaged in military
expeditions.
• In 17th century – Extended to cover civil engineering activities
• From 18th century – Refer to economic activities.
Since then, the term ‘entrepreneur’ is used in various ways and views.
7. Entrepreneur - Definitions
• Richard Cantillon (French economist)
• He is the first one to use the term ‘entrepreneur’ in the business field.
• To him, an entrepreneur means a dealer who purchases the means of
production for combining them into marketable products.
• J.B. Say (French economist)
• “an entrepreneur is an economic agent who unites all means of production,
the labor force of the one and the capital or land of the others and who finds
in the value of the products which results from their employment, the
reconstitution of the entire capital that he utilizes and the value of the wages,
the interest and the rent which he pays as well as profit belonging to himself”
8. Entrepreneur – Definitions cont.
• Joseph A Schumpeter
• “An individual who introduces something new in the economy – a new
method of production not yet tested by experience in the branch of
manufacture concerned, a product with which consumers are not yet familiar,
a new source of raw material or of new markets and the like”.
• According to him, entrepreneur = innovator
• Innovation may be in the areas of,
• Introduction of a new product
• Introduction of a new method of production
• Development of a new technology
• Development of a new market
• Finding out the source of new materials
• Making changes in the organization and management
9. • Peter F Drucker
“An entrepreneur is one who always searches for change, responds to it, and
exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the
means by which they exploit change as an opportunity for a different business
or service”.
• F.H. Knight
• “Entrepreneur is a person or a group of persons who bears risk and
uncertainty”.
10. Entrepreneurship
• Different scholars given different definitions to the term
‘entrepreneurship”
• For some, entrepreneurship is risk ‘risk-bearing’, for some others, it is
‘innovating’ and for certain others, it is ‘thrill-seeking’.
• Entrepreneur is essentially a business leader and the function
performed by him is the entrepreneurship.
• A.H. Cole: A.H Cole defines entrepreneurship as “the purposeful
activity of an individual or a group of associated individuals, under-
taken to initiate, maintain or aggrandize profit by production or
distribution of economic goods and services”.
11. • The concept of entrepreneurship involves four key elements
1. Organizing
• Mobilization of resources and utilization of them to initiate, maintain or enhance profit
by the production of goods and services.
2. Risk-bearing
• Starting a new enterprise always involves risk. The enterprise may earn profit or incur
loss. The entrepreneurs should be bold enough to assume risk.
3. Vision
• Entrepreneurial vision includes the relentless pursuit of operational excellence,
innovative technology and responsiveness to the needs of the market.
4. Innovating
• Innovation refers to the introduction of something new in to the market.
12. • In short, entrepreneurship is the practical ability to create and build
up something new from nothing. It is fundamentally an act of human
activity. The act of merely observing, analyzing or interpreting a
process is not entrepreneurship.
13. Features of entrepreneurship
• It is a process of action to set up an enterprise
• It is an innovative response to the environment
• It means creating something new
• It is the organizing of a business or other enterprise and coordinating
of managerial functions
• It is the undertaking of risks and handling of economic uncertainties.
14. Enterprise
• An enterprise represents a business unit or a service unit which has
been established by an entrepreneur.
• It is the end result of all the entrepreneurial activities initiated by him.
• Enterprise is the fourth factor of production.
• Enterprise is the basic unit of economic organization
18. Barriers to entrepreneurship
• Lack of a viable concept
• Lack of marketing knowledge
• Lack of technical skills
• Lack of seed capital
• Lack of business know how
• Lack of motivation
• Time pressures and distractions
• Legal constraints and regulations
• Monopoly and protectionism
• Inhibitions due to patents
21. Intrapreneurs
• Entrepreneurs are people that notice opportunities and take the
initiative to mobilize resources to make new goods and services.
• Intrapreneurs also notice opportunities and take initiative to mobilize
resources, however they work in large companies and contribute to
the innovation of the firm.
• Intrapreneurs often become entrepreneurs.
22. Intrapreneurs
• In recent times, a new breed of entrepreneurs is coming to the fore in large
industrial organizations, known as intrapreneurs. They emerge from within
the countries of an existing enterprise.
• An intrapreneur is a person who takes on the responsibility to innovate
new ideas, products and processes or any new invention within the
organization
• In big industrial organizations, the top executives are encouraged to catch
hold of new ideas and then convert these into products through research
and development activities within the framework of the organization.
Intrapreneur with his innovations and dedicated effort is considered as a
valuable asset by the organization. He serves as a champion to others in
the organization, inspiring them.
23. • Learning organizations encourage intrapreneurship.
• Organizations want to form:
• Product Champions: people who take ownership of a product from concept to market.
• Skunkworks: a group of intrapreneurs kept separate from the rest of the organization.
• New Venture Division: allows a division to act as its own smaller company.
• Rewards for Innovation: link innovation by workers to valued rewards.
24. • In many countries it is found that an increasing number of
intrapreneurs are leaving their jobs in big organizations and are
starting their own enterprises. The reason for leaving their parent
organization are many.
• They feel that they can stand on their own legs from their successful
performance in the parent organization.
• These persons find that the management is not receptive to their new ideas
