WHO IS AN ENTREPRENEUR
is a person who has
possession of an
the inherent risks
and the outcome.
CONCEPTUAL MODEI OF
THE ANALYTICAL FRAMEWORK
The person: Personality , Skills ,
Experience, Motives and
The Task: Perceiving
resources, providing leadership.
The Environment: Availability of
competitive pressures, social
values, rules and regulations,
state of technology, etc
The Organization: structure,
policies, rules, culture, human
SCHUMPETER’S VIEWS ON
Creative and innovative
Distinction between an
innovator and an
Both wide and narrow.
Entrepreneur is a large
scale businessman who
creates something new.
WALKER’S VIEWS ON
Organizer and coordinator.
Different degrees of organizational skill
and coordinating capacity.
True entrepreneurs are limited.
DRUCKER’S VIEWS ON
Entrepreneur is one who always
searches for change, responds to it and
exploits it as an opportunity.
Purposeful and systematic innovation.
Behavior rather than personality trait.
An enterprise may be defined as an
undertaking or adventure involving
uncertainty and risk and requiring
innovation and also to the ability to
think out and start new business.
Your own new enterprise serves your
interest in significant ways
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
Energetic and diligent
Creative, need to achieve
Responsive to suggestions
Resourceful and persevering
Perceptive with foresight
Joseph Schumpeter...20th century talks
about “creative destruction” whereby
established ways of doing things are
destroyed by the creation of new and
better ways of getting things done
Described it as a process and
entrepreneurs as innovators who use
process to shatter the status quo
through new methods...
Is a dynamic process of creating
incremental wealth. This wealth is
created by individuals who assume the
major risks in terms of equity, time and
career commitment of providing value
for some product or service
The entrepreneur must somehow infuse
value to the product or service...
The Creative Process
The difference between
invention and innovation is:
Invention - is the creation of new
products, processes, and technologies
not previously known to exist.
Innovation - is the transformation of
creative ideas into useful applications
by combining resources in new or
unusual ways to provide value to
society for or improved products,
technology, or services.
Does the entrepreneur need a firm?
management : firm is the
assets the entrepreneur
arranges (not owns).
imagination, creativity : firm
can contract for
Entrepreneurship as innovation :
entrepreneurship is sui generis, independent
of the firm.
Entrepreneurship as alertness or discovery :
entrepreneur owns no capital (could be an
employee or independent contractor).
Entrepreneurship as charismatic leadership :
firm is the entrepreneur plus the employees
who follow him.
Enormous personal financial gain
Self-employment, offering more job
satisfaction and flexibility of the work force
Employment for others, often in better jobs
Development of more industries, especially in
rural areas or regions disadvantaged by
economic changes, for example due to
Encouragement of the processing of local
materials into finished goods for domestic
consumption as well as for export
Income generation and increased economic
Healthy competition thus encourages higher
More goods and services available
Development of new markets
Promotion of the use of modern
technology in small-scale manufacturing
to enhance higher productivity
Encouragement of more researches/ studies
and development of modern machines and
equipment for domestic consumption
Freedom from the dependency on the jobs
offered by others
The ability to have great accomplishments
Serious tax advantages