What is an Entrepreneur? One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying and assembling the necessary resources to capitalize on them.

1. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
B.COM V Semester
Entrepreneurship Development
Unit-1

2. UNIT1
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Definition of Entrepreneur
Internal & External Factors
Functions
Entrepreneurial Motivation & Barriers
Classification
Theories
Concept
Development of Entrepreneurship
Culture
Stages in entrepreneurial process

3. What is an Entrepreneur?
One who creates a new business in the face of
risk and uncertainty for the purpose of achieving
profit and growth by identifying and assembling
the necessary resources to capitalize on them.

4. CONCEPT OF ENTERPRENEUR
 RISK BEARER
 ORGANISER
 INNOVATOR

5. Schumpter’s Definition of
Entrepreneur
Reform or revolutionize the pattern of
production by exploiting an invention
or more generally , an untried
technological possibility for producing
a new commodity

6. Characteristics of Entrepreneurs
 Desire for responsibility
 Preference for moderate risk
 Confidence in their ability to succeed
 Desire for immediate feedback
 High level of energy
 Future orientation
 Skilled at organizing
 Value achievement over money

7. Functions of Entrepreneur
 Innovation
 Risk Taking
 Organization Building
 Absorb uncertainty
 Frame the Challenge
 Build Commitment

8. Entrepreneurs...Traits
 Self-confident and optimistic
 Able to take calculated risk
 Respond positively to changes
 Flexible and able to adapt
 Knowledgeable of markets
 Able to get along well with others
 Independent minded

9. Entrepreneurs...Traits II
 Energetic and diligent
 Creative, need to achieve
 Dynamic Leader
 Responsive to suggestions
 Take initiatives
 Resourceful and persevering
 Perceptive with foresight

10. Personal traits and characteristics of
entrepreneurs.

11. FACTORS RESPONSIBLE FOR
ENTREPRENEURS

12. INTERNAL FACTORS
 Desire to do something new
 Educational Background
 Experience

13. EXTERNAL FACORS
 Govt. assistance and support
 Availability of labor and raw material
 Encouragement from big business houses
 Promising demand for the product

14. TYPES OF ENTREPRENEUR
 According to the type of business
 According to the use of technology
 According to the motivation
 According to the growth
 According to the area
 According to the gender & age
 According to the sale of operation

15. Type of Business
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Business Entrepreneur( individuals who conceive an idea for a
new product or service & then create a business to materialize their
idea.)
Trading Entrepreneur (Is one who undertakes trading activities &
is not concerned with the manufacturing work)
Industrial Entrepreneur (a manufacturer who identifies the
potential needs of customers & tailors a product to meet the marketing
needs)
Corporate Entrepreneur (Is a person who demonstrates his
innovative skill in organizing & managing corporate undertaking)
Agricultural Entrepreneur ( Is one who undertake agricultural
activities as raising & marketing of crops, fertilizers & other input.)
Retail Entrepreneur
Service Entrepreneur

16. Classification of Entrepreneurs
 Innovating Entrepreneurs
 Imitative Entrepreneurs
 Fabian Entrepreneurs
 Drone Entrepreneurs

17. INNOVATING ENTERPRENEURS
Is one who introduces a
new goods,inaugrates new
method of production,
discovers new market &
reorganizes the enterprise

18. IMITATIVE ENTERPRENEURS
These are characterized by
readiness to adopt
successful innovations
inaugurated by innovating
entrepreneurs

19. FABIAN ENTERPRENEURS
These are characterized by
a great caution & skepticism
in experimenting any
changes in their enterprises

20. DRONE ENTERPRENEURS
These are characterized by a
refusal to adopt opportunities to
make changes in the production
formulae even at the cost of
severely reduced returns relative
to the other like producers.

21. Barriers to Entrepreneurship
 Lack of viable concept
 Lack of market knowledge
 Lack of technical skills
 Lack of capital
 Lack of business know how
 Time presences and distractions
 Legal constraints and regulations

22. Steps in the Entrepreneurial
Process
1. Discovery
2. Concept Development
3. Resourcing
4. Actualization
5. Harvesting

23. Steps in the Entrepreneurial
Process
1. Discovery: The stage in which the
entrepreneur generates ideas,
recognizes opportunities, and studies
the market

24. Steps in the Entrepreneurial Process
2. Concept Development:
– Develop a business plan: a detailed
proposal describing the business
idea

25. Concept Development
–
–
Choose business location
Will a patent or trademark be required?

26. Steps in the Entrepreneurial
Process
3. Resourcing: The stage in which
the entrepreneur identifies and
acquires the financial, human, and
capital resources needed for the
venture startup, etc

27. Steps in the Entrepreneurial
Process
4. Actualization: The stage in
which the entrepreneur operates
the business and utilizes
resources to achieve its
goals/objectives.

28. Steps in the Entrepreneurial
Process
5. Harvesting: The stage in which
the entrepreneur decides on
venture’s future growth,
development, or demise.

29. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
B.COM V Semester
Entrepreneurship Development
Unit-2

30. Introduction, Identifying Ideas
& Business Opportunities
Analysis
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31. To Introduce the Entrepreneurial Process &
Preparation of Business Plan for New Ventures.
31

32. Entrepreneurship: the activity
of organizing, managing, and
assuming the risks of a
business or enterprise.
Entrepreneur: an entrepreneur
is a person who engages in
the activities mentioned
above.
32

33. “The Entrepreneur always
searches for change, responds to
it & exploits it as an opportunity” -
Peter Drucker
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34. Windowof
Opportunity• Describes the time period in
which a new firm can
realistically enter into the
market.
• New entrants (2nd movers
onwards) will enter into the
market once the window is
opened.
• Interesting to note: Google is not the first in
the search business nor Facebook in the
social network business.
34

35. When is anidea an
opportunity?• Create or add value to
customer.
• Solve a significant problem,
removing a pain point or
meeting demand.
• Have robust market, profit
margin and money
marketing.
• Good fit with founder &
management team at the
right time & place
35

36. Focus on idea and market of the idea.
Talk to industry leaders and players in the same space as the idea.
A typical opportunity analysis plan has four sections:
1. Description of the idea and its competition.
2. Assessment of the domestic and international market for the idea.
3. Assessment of the entrepreneur and the team.
4. Discussion of the steps needed to make the idea the basis for a
viable business venture.
Opportunity
Analysis
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37. 1. Observing
Trends
Observing
Market
Trends
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38. Solving the
Problem
2. Solving a
Problem/Pain
Point
• Notice a problem &
finding a way or
solution tosolve it.
• Observing trends
and ask people
around
what their
problems are.
38

39. Finding Gaps
in the
marketplac
e
• Finding a gap in the
marketplace.
• Oftentimes, big corporations
might give up niche markets
which new companies can take
advantage of.
• Nichemarkets can be scaled
up to a mainstream market or
allow disruptive technologies to
go mainstream.
39

40. Feasibility Analysis
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41. Feasibility Analysis
Process
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42. Feasibility Analysis
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•
•
•
The process of determining
whether a business idea is
viable.
Preliminary evaluation of a
business idea .
Conducted for the purpose of
determining whether the idea is
worth pursuing
Determine to a certain degree
of probability the possibility of
whether idea is viable
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43. Product/Service Feasibility
Analysis
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Assessment of overall
appeal of product or
service being
proposed.
Determine whether
there is a market for
the product or service.
The two components
of a product/service
feasibility: Concept &
Usability Testing.
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44. Preparinga Concept
Statement•
•
A concept statement is
developed before a
company undertakes
product/service feasibility
analysis.
One page description of a
business that is distributed
by entrepreneur for startups
to people who are asked to
provide feedback on the
potential of the business
idea.
44

45. Preparing a Concept
Statement
• Description of product or service being
offered.
Intended target market
Benefits of product or service.
•
•
• Description of how product will be positioned
relative to similar ones in the market.
• Description of how product or service will be
sold & distributed.
• Information about founder or founders of the
firm
45

46. Modelfor Opportunity
Recognition
46

47. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
B.COM V Semester
Entrepreneurship Development
Unit-3

48. ENTREPRENEURSHIP
AND
INNOVATION:

49. 3.1 THE INNOVATION
CONCEPT:
 Innovation is the specific tool of entrepreneurs, the
means by which they exploit change as an
opportunity for a different business or a different
service. It is capable of being presented as
a discipline, capable of being learned, capable
of being practiced. Entrepreneurs need to
search purposefully for the sources of
innovation, the change and their symptoms
that indicate opportunities for a successful
innovation. And they need to know and to
apply the principles of successful innovation

50. 3.1 THE INNOVATION CONCEPT:
(Continued)
 A business opportunity, therefore, is the chance to do
something differently and the better. An innovation is the way of
doing something differently and better. Thus an innovation is the
means of exploiting a business opportunity. Innovation has a
different meaning in economics. All goods (whether physical
products or services) are regarded as being made up of three factors:
nature raw materials, physical and mental labor and capital
(money). An innovation is a new combination of these three
things. Entrepreneurs, as innovators, are people who create new
combinations of these factors and then present to the market for
assessment by consumers. This is a technical conceptualization of
what is innovation is about. It does not give the
practicing entrepreneur much of a guide to what innovation to make,
or how to make it, but it should warn that innovation is a much
broader concept then just inventing new products. It also involves
bringing them to market. Some important areas in which valuable
innovation might be made will be discussed below.

51. NEW PRODUCTS:
 One of the most common forms of innovation
is the creation of new product. The new product
may exploit an established technology or it may be
the outcome of a whole new technology. The
new product may offer a radically new way of
doing something it may simply be an existing
theme. David Packard built scientific
instrumentation and information processing
business Hewlett Packard, based on advanced
developments.

52. NEW PRODUCTS:
(Continued)
 Products are not simply a physical tool for achieving
particular ends. They can also have a role to play in
satisfying emotional needs. Branding is an
important aspect of this. A brand name reassures the
consumer, draws ready-made associations for them
and provides a means of making a personal statement.
The possibility of innovations being made through
branding should not be overlooked. The English
entrepreneur, Richard Branson, for example, has been
active in using the virgin brand name on a wide
variety of product areas following its initial success in
the airline business. To date, it has been used to create a
point of difference on, among other things, record
labels, soft drinks and personal finance products.

53. NEW SERVICES:
 A service is an act which is offered to undertake a
particular task or solve a particular problem. Services are
open to the possibilities of new ideas and innovation just as
much as physical products. For example, the American
entrepreneur, Frederick smith, created the multi-million
dollar international business, federal express, by releasing a
better way of moving parcels between people.
Like physical products, services can be supported by
the effective use of branding. In fact, it is beneficial to
stop thinking about “products” and “services” as distinct
types of business and to recognize that all offerings have
product and service aspects. This is important because it is
possible to innovate by adding a “customer service” in
component to a physical product to make it more attractive
to the user. Similarly, developments in products technology
allow new service concepts to be innovated.


54. NEW PRODUCTION TECHNIQUES:
 Innovation can be made in the way in which a product
is manufactured. Again, this might be by
developing an existing technology or by
adopting a new technological approach. A new
production technique provides a sound basis for
success if it can be made to offer the end-user new
benefits. It must either allow them to obtain the
product at lower cost, or to be offered a product
of higher or more consistent quality, all to be
given a better service in the supply of the product.
Production is not about just technology. Increasingly
new production “philosophies” such as just-in-time
supply (JIT) and total quality management (TQM)
are providing platforms for profitable innovation.
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55. NEW MEANS OF INFORMING THE
CUSTOMER ABOUT THE PRODUCT:
 People will only use a product or service if they know
about it. Demand will not exist if the offering is not
properly promoted to them. Promotion consists of
two parts: a message, what is said, and a means, the
route by which that message is delivered. Both
themessage and the means present latitude for
inventiveness in the way they are approached.
Communicating with costumers can be expensive and
entrepreneurs especially when their ventures are
in an early stage, rarely have the resources to invest
in high profile advertising and public
relation campaigns. Therefore, they are
encouraged to develop new means of promoting
their products.

56. MULTIPLE INNOVATION:
An entrepreneurial venture does
not have to restrict itself to just
one innovation or even one type of
innovation. Success can be built on
a combination of innovations: for
example, a new product delivered in
a new way with a new message.

57. IMPORTANCE
OF INNOVATION
FOR
ENTREPRENEURS
HIP:
3.2

58. ORGANIZATION FOR INNOVATION:
CORPORATE ENTREPRENEURSHIP
W.D. Guth and A. Ginsberg defined
corporate entrepreneurship (also called in-
trapreneurship) as “the birth of new
business within existing organization, i.e.,
internal innovation or venturing; and the
transformation of organization through renewal
of the key ideas on wish they are built, i.e.,
strategic renewal.” A large corporation that
wants to encourage innovation and creativity
must give the new business unit a certain amount
of freedom while maintaining some degree
of head-quarters control.

59. (Continued)
Burgelman proposes that the uses of a particular
organizational design should be determined by
the strategic importance of the new business to the
corporation and
the relatedness of the unit’s operation to those
of the corporation. The combination of these
two factors results in 9 possible organizational
designs for corporate entrepreneurship.
•
•
ORGANIZATION FOR INNOVATION:
CORPORATE ENTREPRENEURSHIP

60. CORPORATE ENTREPRENEURSHIP
(Continued)
1. Direct integration
2. New product business department
3. Special business unit
4. Micro new ventures departments
5. New venture division
6. Independence business units
7. Nurturing and contracting
8. Contracting
9. Complete spin-off
ORGANIZATION FOR INNOVATION:

61. 3.3
SOURCES
OF INNOVATION FOR
OPPORTUNITIES

62. SOURCES OF INNOVATION
In this book innovation and
entrepreneurship, Peter Drucker
proposed that those interested in
starting an entrepreneurial venture-
either within an established company
or as independent small business-
should monitor seven sources of
innovative opportunity.

63. The first four exist within the industry itself,
and the last three in the social environment.
1.The Unexpected
2.Incongruity
3.Innovation Based on Process Need
4.Changes in Industry or Market Structure
5.Demographics
6.Changes in Perception, Mood, and Meaning
7.New Knowledge

64. Factors affecting a new venture’s
success

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Industry structure Business
strategy
Entrepreneurial characteristics
Successful entrepreneurs are better


 Successful entrepreneurs seek outside help to
supplement their skills, knowledge
and abilities
Successful
urgency
entrepreneurs have a sense of
Successful
knowledge
entrepreneurs have a detailed

65. 3.4
THE INNOVATION
PROCESS

66. Invention versus Innovation:
Analytical
planning
Organizing Implementation
resources
Commercial
application
To identify:
Product
design
market
strategy
financial
need
To obtain:
Materials
technology
human
resources
capital
To accomplish:
Organization
product design
manufacturing
services
To provide:
Value to
costumers
rewards for
employees
revenues foe
investors
satisfaction for
founders
Translation of creative idea into a useful application

67. Innovation is the development process, as
shown in figure. It is the translation of an idea
in to an application. It requires persistence
in analytically working out the details of
product design or service, to develop marketing,
obtainfinances, and
entrepreneur is
plan
going
the
pr
ocess
and
operations. If the
ato manufacture
product,
materials
includes obtaining
technical manufacturing
capabilities, staffing operations,
establishing an organization.
and

68. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
B.COM V Semester
Entrepreneurship Development
Unit-4