Entrepreneurship refers to the process of starting a business or new venture that involves risk-taking and innovation. An entrepreneur is someone who combines resources to create value by providing goods or services. Successful entrepreneurs possess traits like self-confidence, risk-taking ability, leadership skills, and the ability to identify opportunities. Entrepreneurship contributes to economic development by increasing productivity, income, and stimulating investment through new business ventures and innovations.

1. ENTREPRENEURSHIP

2. Entrepreneurs
Do things that are not generally done in the
ordinary course of business
Some entrepreneurs become
celebrities...others become ridiculed for
their failed dreams
All contribute to the spirit of free enterprise

3. Entrepreneurship
Mainstream Economic
Factors
Land
Labor
Capital
Entrepreneurship

4. Entrepreneurship
Entreprendre...17th century French...the
individual who undertook the risk of a new
enterprise... “undertakers”.
They were “contractors” who bore the risks
of profit or loss
Examples: soldiers of fortune, adventurers,
builders, merchants and funeral directors

5. Entrepreneurs...
“Essai sur la nature du commerce en
general”...1755 ...describes an entrepreneur
as a person who pays a certain price for a
product to resell it at an uncertain price,
thereby making decisions about obtaining
and using resources while consequently
assuming the risk of enterprise

6. Entrepreneurs...
Adam Smith...The Wealth of Nations:
spoke of the “enterpriser” as an individual
who undertook the formation of an
organization for commercial purposes
A. Smith...mentioned “role of
industrialist...,person with unusual foresight
who could recognize potential demand for
goods and services”

7. Entrepreneurs...
“A Treatise on Political
Economy”...describes an entrepreneur as
one who possessed certain arts and skills of
creating new economic enterprises, yet a
person who had exceptional insight into
society’s needs and was able to fulfill them.
Influences society and is influenced by it.

8. Entrepreneurs...
John Stuart Mill...describes an entrepreneur as a
business founder
Recognized entrepreneurship as central to
economic theory
Carl Menger...Principles of Economics:
“Economic change does not arise from
circumstances but from an individual’s awareness
and understanding of those circumstances

9. Entrepreneurs...
In 19th century entrepreneurs were:
risk takers
decision makers
aspired to wealth
endured commensurate losses
gathered and managed resources to create new
enterprises

10. Entrepreneurship
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...

11. Entrepreneurs...
Are not equal to inventors...inventor might
only create a new product, whereas an
entrepreneur will gather resources, organize
talent, and provide leadership to make it a
commercial success
Peter Drucker...”Resources, to produce
results, must be allocated to opportunities
rather than to problems...

12. 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

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

14. Definition
It refers to a process of action an entrepreneur
(person) undertakes to establish his/her enterprise.
It is a creative and innovative.
It is a composite skill, the resultant of a mix of
many qualities and traits. These include
imagination, readiness to take risks, ability to
bring together and put to use other factors of
production, capital, labour, land as also intangible
factors such as the ability to mobilize scientific
and technological advances.

15. Entrepreneurship
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...

16. ENTREPRENEURSHIP
What is Entrepreneurship?
It is the process of mind to take calculated risk
with confidence to achieve pre-determined
objectives.
Conventional view
Entrepreneurs are born and it is hereditary
Entrepreneurship is a monopoly of some
communities and restricted to certain regions.

17. Working Definition
An entrepreneur is a person who
combines various factors of
production, processes raw
material, converts the raw material
into a finished product and creates
utility and sells the produce in the
market to earn profit.

18. Continue….
He posses the different D’s for success. ie.,
Desire, Discipline, Determination, Dedication,
Devotion, Dignity.
He is a creator of wealth
He takes decision about
What to produce --- Product selection
How to produce --- Technology
Where to produce --- Location
When to produce --- Time planning/Duration
For whom to produce --- Target consumers/
Market

19. Most of what you hear about
entrepreneurship, says America’s
leading management thinker, is all
wrong. It’s not magic; it’s not
mysterious; and it has nothing to do with
genes. It’s a discipline and, like any
discipline, it can be learned.
- Peter F. Drucker

20. Distinction between
Entrepreneurs and Managers
Entrepreneur :
1.
Entrepreneurial function is organizing
production
2.
Decision making & calculated risk bearing
3.
Has all round responsibility
4.
Public relation skills & team building
5.
High level of achievement and motivation
6.
Innovative, creative, imaginative soul
7.
Challenges established values and attitudes

21. Continue….
1.
2.
3.
4.
5.
6.
Managers :
Managers are employees (specific role)
Limited scope for innovation & creativity
Managerial jobs are transferable
Managers do not bear risk
Managers Need team building & leadership
role
Managers need knowledge, insight and
expertise (KIE)

22. Role of Entrepreneurship in
Economic development
Increasing per capita output and Income
Involves initiating and constituting
change in the structure of business and
society
The theory of economic growth depicts
innovation as the key not only for
developing new products but also in
stimulating investment interest in the
new ventures

23. 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.