Entrepreneurship involves identifying opportunities, organizing resources, and taking on risks to start a business venture. An entrepreneur is someone who starts a business by taking on financial, time, and career risks. Key elements of entrepreneurship include the entrepreneur themselves, recognizing opportunities, acquiring resources, organizing the business, and operating within an environment. Entrepreneurs can be innovators who introduce new products/services, or imitators who copy existing ideas. Successful entrepreneurs generally have traits like passion, vision, optimism, flexibility, and a strong work ethic.

1. ENTREPRENEURSHIP
Prepared By:
Nijaz N

2. ENTREPRENEURSHIP
• French Word : Entreprenedre – an undertaker .It also means a person
who takes risks to build new enterprise.
• A purposeful activity to initiate and develop a profit oriented business.
• Is a process of identifying and starting a business venture, sourcing and
organizing the required resources and taking both the risks and
rewards associated with the venture.
• As a career in your own business rather than wage employment [JOB]

3. Robert Ronstadt ‘s definition for
ENTREPRENEURSHIP
• Entrepreneurship is the dynamic process of creating incremental
wealth.
• This wealth is created by individuals who assume the major risks in
terms of equity, time and/or career commitment of providing value for
some product or service.
• The product or service itself may or may not be new or unique but value
must somehow be infused by the entrepreneur by securing and
allocating the necessary skills and resources.

4. ENTREPRENEURSHIP by various thinkers
• Entrepreneur –Non-insurable Risk Bearer
Richard Cantillon
• Person with a High need for Achievement
David McClleland
• Imitates Technologies Developed by Others
Kilby
• Takes Initiative, Accepts Risk and Has an
Internal Locus of controlAlbert Shaperohas
• ‘Alertness’ to New Opporunities
Kirzner

5. What is Entrepreneurship ?
Entrepreneurship
Value Creation
Opportunity Identification
Resource
Organization

6. What is resources?
• Resource is a person, an asset, material or capital that can be used to
create value.
Types of
Resources
Physical Resources
Reputational Resources
Organizational Resources
Financial Resources
Human Resources & Capabilities
Technological Resources & Capabilities

7. Types of Resources
Physical
Resources
• Tangible in nature, such as machines, buildings.
• These are either man- made or natural
• 2 types of Natural Resources
• a) Biotic :- Which are obtained from biosphere such as forests,
animals, birds etc.
• b) Abiotic :- Which are non-living in nature such as land,
water, air minerals (gold, iron ,copper)
Reputational
Resources
• Derived from the public perception of your venture that gets
recognized by things such as brand, person behind business &
values of an entrepreneur.
Organizational
Resources
• Approach towards planning, organizing, controlling, and
directing business affairs.
• Refers to company’s reporting systems, hierarchy, information
flow, decision making etc.

8. Types of Resources
Financial
Resources
• Refers to the abilities of a business to generate internal funds
and external capital.
•
Human
Resources &
Capabilities
• The knowledge, experience, exposure, trust and talents
available within a firm are vital resources for creation of
value and competitive advantage.
Technological
Resources &
Capabilities
• These are processes and systems to physically transform
resources into products & services

9. Who is an Entrepreneur?
• Richard Cantillon (1725): “ An entrepreneur is a person who
undertakes to do a job ”.
• Adam Smith : “An entrepreneur is a person who acts as agent in
transforming demand into supply.”
• Jean Babtiste : “An entrepreneur is a person who shifts resources from
an area of low productivity to high productivity.”
• An entrepreneur is a person who starts an enterprise. He searches for
change and responds to it.
• The economists view him as a fourth factor of production along with
land ,labour and capital.

10. Who is an Entrepreneur?
• Peter Drucker (1964): An entrepreneur searches for change, responds
to it and exploits opportunities. Innovation is a specific tool of an
entrepreneur hence an effective entrepreneur converts a source into a
resource.
• Kilby (1971): Emphasizes the role of an imitator entrepreneur who does
not innovate but imitates technologies innovated by others. Are very
important in developing economies.
• Albert Shapero (1975 ): Entrepreneurs take initiative, accept risk of
failure and have an internal locus of control.

11. Entrepreneur?
• Own Boss
• Make own plans
• Creative activity
• Can be negative sometimes,
• Generally surplus
• Creates Wealth, contributes to
• Can choose from-
– Industry
– Trade or
– Service Enterprise

12. The Key Elements of Entrepreneur
The
Entrepreneur
Opportunity
Resources Organization
Recognizes
Evaluates
Exploits
Builds
Manages
Attracts
Combines
Focus
Configuration
Fit
Environment
Environment
Environment

13. The
Entrepreneur
• Need at least one motivated person.
• Factors influencing entrepreneurs to be exploited :
 Active Search for Opportunities
 Entrepreneurial Alertness : As a propensity to notice & be sensitive
to information about objects, incidents and patterns of behavior.
 Prior Knowledge : People tend to notice information that is related to
information they already know.
 Social Networks :Connection to social relationship
Opportunity • A situation in which a new product, service or process can be introduced
and sold at greater than its cost of production.
• Market Pulled Opportunities : Identify the needs, interests & Problems.
• Market Pushed Opportunities : Identify resources that are not optimally
used, and then seek a better use or combination of these in a specific
market.
The Key Elements of Entrepreneur

14. Resources • Is any thing or quality that is useful.
Organization • Can focus on start-up, franchisee, joint ventures, business
acquisition.
Environment • Entrepreneurs operate in an environment that can be more or less rich
in opportunities and where several conditions influence the pursuit of
these opportunities.
• Two levels of environment
• Community Level : Entrepreneurs trying to create business
ventures in a population with high density will find more
opportunities for acquiring effective knowledge and creating
extensive social networks.
• Societal Level : Two aspects shape the norms (1) Cultural
norms & Values; (2) Government activities & policies.
The Key Elements of Entrepreneur

15. Types of Entrepreneurs
Innovating
Entrepreneur
• Who introduces new goods, inaugurates new method of
production, discovers new market & reorganizes the
enterprise
Imitative
Entrepreneur
• Characterized by readiness to adopt successful
innovations inaugurated by successful innovating
entrepreneur.
Fabian
Entrepreneur
• Are characterized by very great caution and skepticism
in experimenting any change in their enterprise.
Drone
Entrepreneur
• Are characterized by refusal to adopt opportunities to
make changes in production formulae even at the cost
of severely reduced returns.

16. Types of Entrepreneurs
Nascent
Entrepreneur
• Is an individual who is in the process of starting a new business.
Novice
Entrepreneur
• Is an individual who has no prior business ownership
experience as a business founder, inheritor of a business or a
purchaser of a business.
Habitual
Entrepreneur
• Is an individual who has prior business ownership experience.
Serial
Entrepreneur
• Is an individual who has sold or closed an original business,
established another new business, sold or closed that business
& continuous this cycle
Portfolio
Entrepreneur
• Is an individual who retains an original business and builds a
portfolio of additional businesses through inheriting,
establishing or purchasing them.

17. Traits of an Entrepreneur
• Visionary & Dreamer
• Optimistic
• Passionate
• Flexible and able to adapt
• Good networker & relation
builder
• Good Communicator
• Able to get along well with others
• Energetic, Sharp and intelligent
• Self-Confident & Self –Disciplined
• Resourceful
• Decision- Maker
• Impatient
• Goal-Oriented
• Achievement –Oriented
• Has a foresight
• Responsive to criticism
• Takes initiatives.
• Responsible
• Opportunist
• Efficient
• Dynamic Leader
• Eager to learn
• Good Executor

18. Traits of an Entrepreneur (D’s & F’s)
• Dream
• Determined
• Details
• Dollar (Rupee, in our case)
• Decision
• Doer ("when you want
something done get a doer")
• Distribute
• Destiny
• Devotion
• Dedication
• Founder
• Faith
• Focused
• Frugal (Avoiding waste)
• Fast
• Fun
• Flexible
• Forever Improving

19. Entrepreneur Traits
Entrepreneurship
Risk Taking
Need for Achievement
Locus of Control

20. Entrepreneur Traits
Need for
Achievement
1. Intense desire for & focus on significant accomplishment
and mastering of skills.
2. Include patient, persistent and repeated efforts to
accomplish something difficult.
3. Prefer to work hard on a problem rather than leave it to
chance or fate
Risk Taking
1. Inbuilt imperative for an entrepreneur.
2. 3 types a) Risk that can measured statistically, b) Risk that
cannot be measured statistically, & c) Risk that cannot be
predicted statistically.
Locus of
Control
1. Internal locus of control believe and have a faith that they
able to control life events and the future depends upon their
own efforts.
2. External locus of control believe that happenings in their life
are the outcome of external factors, such as chance, people
luck or fate. They have a firm belief that it is outside forces
govern and affect their ability to achieve predetermined goals.