This prsentation is talikng about the concept of entrepreneur, process of entrepreneurship and step to start an entrepreneurial venture.

1. Topic: Concept of Entrepreneur
Presented by: Sh. Rabeesh Kumar Verma
Assistant Professor
Dept. of Agril. Extension
CCR, (PG) College, Muzaffarnagar, U.P.

2. Guess who are they ?

3. Historical Background:
• The word "entrepreneur" is derived from a French root ‘entreprendre’, meaning, "to
undertake".
• The term "entrepreneur" seems to have been introduced into economic theory by
Cantillon (1755) but Say (1803) first accorded the entrepreneur prominence.
• It was Schumpeter however, who really launched the field of entrepreneurship by
associating it clearly with innovation.

4. Who is an entrepreneur:
• The entrepreneur is a person who initiate, organize, manage and control the affair of the business unit. Entrepreneur is one who organise to business
venture and assumes risk for it.
• A beginner in the market, who has something new to offer to society and starts right from scratch to establish and run the enterprise.
• An innovator, who has a thought-provoking idea or concept in his/her mind, that has the capability to lead the marketplace.
• A developer, who develops a business model, to give shape to the idea.
• A leader, who provides guidance and support to his/her men, to work in a specific direction or change the same (if required) so as to achieve the target.
• An incharge who is accountable and responsible for the success or failure of the venture, for the decisions made by him/her.
• A promoter, who takes all the relevant steps to turn the dream into reality.
• A forecaster, who foresees, future opportunities and threats which can affect the venture, positively or negatively.
• A risk-taker, who has the ability to anticipate the risk in the future moves, and take the risk, if they are beneficial to the enterprise.

5. New Concept of Entrepreneur:
•
The term “entrepreneur” has been defined as one who detects and evaluates a new situation
in his environment and directs the making of such adjustments in the economic systems, as
he deems necessary.
• He conceives of an industrial enterprise for the purpose, displays considerable initiative, grit
and determination in bringing his project to fruition, and in this process, performs one or
more of the following:
• Perceives opportunities for profitable investments
• Explores the prospects of starting such a manufacturing enterprise
• Obtains necessary industrial licenses
• Arranges initial capital
• Provides personal guarantees to the financial institutions
• Promises to meet the shortfalls in the capital; and Co
• Supplies technical know-how.

6. Definition of Entrepreneur:
According to Adam Smith “ an entrepreneur is a person who only provides capital without taking active
part in the leading role in enterprise”
Joseph A. Achumpter recognised entrepreneur as person who introduces innovation changes
Peter F. Drucker defines as entrepreneur as one who always searches for changes, responds to it and
exploit it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by which they
exploit changes as opportunity.
According to E.E. Hagegen, an entrepreneur is an economic man tries to maximise his profit by
innovation.

7. Four key elements of an entrepreneur:
Key elements
of
Entrepreneur
Innovation
Risk
Bearing
Vision
Organising
skill

8. Relationship between Entrepreneur & Entrepreneurship :
Parameter Entrepreneurship Entrepreneur
Meaning Entrepreneurship is the process of kick-starting a
business, or a company, that offers a product, or a
service, or both.
Entrepreneur is the person, or several
persons, coming up with an
innovative idea of business, and are
ready to take the risk of commencing
a business.
Purpose The main purpose of Entrepreneurship is to establish an
organization or a business.
The main purpose of an Entrepreneur
is to commence a business to earn a
profit, or to fulfill the needs of the
society.
Represents Entrepreneurship represents a procedure through which
an idea is converted into reality.
An innovator, who chased the dream,
till it becomes true..
Business Venture It is the activity that takes place by an entrepreneur to
reach the goal.
Entrepreneur is the one who sets up
the venture to turn an idea into
reality.
Natural, or legal
entity
Entrepreneurship is merely a process that is undertaken
by an entrepreneur.
Whereas on the other hand, an
Entrepreneur is a natural entity.

9. Why one should become an entrepreneur ?
• The opportunity to control your destiny
• Freedom to spends time doing what’s important to you
• Unlimited earning possibilities
• Opportunity to use your creativity and innovation
• Chance to leave an lasting legacy

10. Difference b/w Businessmen and Entrepreneur:
Businessmen Entrepreneur
A businessman is an individual who operates or starts a
business with the same old business idea.
An entrepreneur is an individual with an exclusive idea
to initiate and establish a new venture
Market player Market leader
Makes his place in the market Creates a market
Risk factor is less More
Focus on profit People oriented, want to change the world, want to
pursue their passion and ultimate goal.

11. Entrepreneurial Behaviour:
Grasping opportunity
Taking initiative
Solving problems creatively
Managing autonomously
Taking responsibility for, and ownership of things
Seeing things through
Networking effectively to manage interdependence
Putting things together creatively
Using judgment to take calculated risk
Achievement Motivation

12. Important qualities to be an entrepreneur
Ent. Qulities
Self-confidence.
Achievement
orientation
Result oriented
Risk taker.
Innovativeness
Leadership
Foresightedne
ss.
Realistic
approach.
Managerial
competence.

13. Entrepreneurial Attributes
• High achievement motivation and ambition
• Self confidence and self esteem
• Perseverance
• High internal locus of control (autonomy)
• Action orientation
• Preference for learning by doing
• Hard-working
• Determination
• Creativity

14. Skills required to be a successful entrepreneur:
Entrepreneurial
Skill
Creative
problem-solving
Conceptual skill
Technical
skill
Human
relation skill
Persuading
Negotiating
Strategic thinking
& Decision
makingCommunication
Problem
solving

15. Entrepreneurial Process
Idea Generation
Developing business
plan
Fund raising
Promoting
Commercialising
Harvesting

17. According to the Entrepreneur and Stages of Development
:
First-Generation Entrepreneur:
A first-generation entrepreneur is one who starts an. industrial unit by innovative skill. He is essentially
an innovator, combining different technologies to produce a marketable product or service. .
Modern Entrepreneur:
A modern entrepreneur is one who undertakes those ventures, which go well along with the changing
demand in the market. They undertake those ventures, which suit the current marketing needs.
Classical Entrepreneur:
A classical entrepreneur is one who is concerned with the customers and marketing needs through the
development of a self-supporting venture. He is a stereotype entrepreneur whose aim is to maximise his
economic returns at a level consistent with the survival of the firm with or without an element of
growth.

18. Function of Entrepreneur:
• The determination of those objectives of the enterprise and the change of those objectives as conditions
required or made advantageous;
• The development of an organisation including efficient relations with subordinates and all employees
• The securing of adequate financial resource, the relations with existing and potential investors;
• The requisition of efficient technological equipment and the revision of it as new machinery appeared;
• The development of a market for products and the devising of a new product to meet or anticipate
consumers demand;
• The maintenance of a good relations with public authorities and with society at large.
Thus, the entrepreneur is an institution himself and he performs various functions related with organisation
development and management control. He is supposed to bear the risk, manage, innovate, organise and take
decisions with regard to his business empire.

19. Key points to ponder before you start:
• Introspect; Consider if you are Suited to Business:
• At the very outset one should ask oneself – Am I the right person to embark on such a venture? Remember that success or failure in business purely
depends on oneself. Thus ask yourself – Am I capable of taking a decision? Am I capable of working hard and for long hours? If the answer is in the
affirmative then go ahead.
• Total Responsibility:
• A prospective entrepreneur must be ready and prepared to bear total responsibility for running the show—business in this case. He/she must be willing to
perform all business functions such as – purchasing inputs, maintaining stock, selling, costing, managing, etc. An entrepreneur has to take a decision on all
aspects of the venture.
• He/she does not have anyone else to shift the responsibility. It is not the same as delegation of task to resource personnel. He/she has to be a hard task
master.
• Business is Prime:
• A man thinking about starting his own enterprise cannot ever afford to forget the business. It is his creation. It must always be uppermost in his thoughts
and in moments of crises he will have to pay complete attention. At the outset, the creator of a new business must be prepared to work for long hours.
• Forego Leisure:
• A person who is not prepared to forego his/her leisure world would do well to forget all about setting up an enterprise

20. What are some strategies for making a decision?
If you can answer, “yes” to all four of the following questions, you are ready to make a commitment:
• Does the business satisfy most of my wants and desires? (business selection criteria)
• Do I have, or can I develop (or hire), the attributes and capabilities that are required for success in
this business?
• Is the current condition and outlook for this type of business favourable?
• Am I, and is my family, willing to accept the risks that will accompany my starting the proposed
business?
• If the answer to question four is “no,” you might want to consider your proposed business ownership
more carefully before proceeding. If you can answer, “yes” to two of the first three, you may need to
rely on your instincts. Remember, there is probably no perfect business. You will undoubtedly be
making compromises no matter what you choose.

21. Scope to become entrepreneur :
• Unexploited and emerging area of starting new venture
• Vast unemployed but skilled youth
• Changing in social attitude
• Technological and financial support system
• Increasing demand for specialised goods and services.

22. • Thank you