The document defines an entrepreneur as an innovator who brings economic development through new combinations of factors of production. It provides definitions from various sources that describe an entrepreneur as someone who organizes, manages, and assumes the risk of a business venture. The document also outlines the key steps in the entrepreneurial process - discovery of opportunities, development of a business concept and plan, acquisition of necessary resources, actual business operations, and eventually harvesting the business results.

1. Meaning of entrepreneur
• An entrepreneur is a person who has already
started or is in the process of starting an
enterprise.
Definition
• Joseph Schumpeter
”Entrepreneur is an innovator who brings
economic development through new
combinations of factors of production”.

2. Definitions
• Webster’s dictionary
“ one who organizes, manages and assumes the
risk of a business or Enterprise”.
• A. H.Cole
“ Entrepreneurship is a purposeful activity of an
individual or a group of associated individuals,
undertaken to initiate, maintain or organize profit
oriented business unit for the production and
distribution of economic goods and service.

3. Introduction to Entrepreneurship
• What is Entrepreneurship?
– Entrepreneurship is the process of creating something
new of value by devoting (giving) the necessary time and
effort.
– By accepting and acknowledging the necessary financial,
psychological, and social risks, and
– Finally receiving the resulting rewards be it monetary and
personal satisfaction and freedom to do what you want.
Robert D.Hisrich, M. Peters & D.A Shepherd

4. ENTREPRENEURSHIP
• Is the process by which individuals pursue
opportunities without regard to resources they
currently control.
• The essence of entrepreneurial behavior is
identifying and putting useful ideas into practice.
• The task typically requires creativity, drive and
willingness to take risks that can be accomplished
by either an individual or a group

5. Entrepreneurship
Process of creating something new & assuming
the risks & rewards
- Creation Process (for entrepreneur & audiences)
- Devotion of time & effort
- Assuming Risks (Financial, Psychological & Social)
- Rewards (Independence, satisfaction & monetary
rewards)

6. Historical Evolution Of Entrepreneurship
 Earliest Period
 Middle Ages
 17th Century
 18th Century
 19th & 20th Century

7. EARLIEST PERIOD
 the earliest definition of entrepreneur may be related to the
person (merchant – adventurer) who attempted to establish
trade routes to the far east
 they would sign a contract with money person to sell his
goods.
 the capitalist was a passive risk bearer.
 merchant adventurer took the active role in trading bearing
all the physical and emotional risks while the capitalist was a
passive risk bearer.
 when he completes the trip, the profits divided (capitalist –
75% , adventurer – remaining 25%)

8. MIDDLE AGES
• the term was used to describe both an actor and a
person who managed large production projects
• did not take any risks but merely managed using the
resources provided usually by the government of
the country
• a typical entrepreneur in the middle ages was cleric
– the person in charge of great architectural works,
such as castles and fortifications, public buildings,
abbeys and cathedrals

9. • 18th Century:
– 1725: RICHARD CANTILLION ( person bearing risks
is different from one supplying capital)
• 19th Century:
– 1803: JEAN BAPTISTE SAY (separated profits of
entrepreneur from profits of capital)
– 1876: FRANCIS WALKER (distinguished between
those who supplied funds and received interest
and those who received profit from managerial
capabilities)

10. • 20th Century:
– 1934: JOSEPH SCHUMPETER (entrepreneur is an
innovator and develops untried technology)
– 1961: DAVID McClelland (entrepreneur is an
energetic, moderate risk taker)
– 1964: PETER DRUCKER (maximizes opportunities)

11. – 1975: ALBERT SHAPERO (takes initiative, organizes
some social and economic mechanisms, and
accepts risks of failure)
– 1980: KARL VESPER (entrepreneur seen differently
by economists, psychologists, business persons
and politicians)
– 1983: GIFFORD PINCHOT (intrapreneur is an
entrepreneur within an already established
organization)

12. Characteristics or Personal Competency of an Entrepreneur.
Initiative
Sees and Acts on Opportunities
Persistence
Information seeking
Concern for High Quality Work and Output – Increased
Productivity.
Commitment to Work Contract
Efficiency Orientation
Systematic and organized planning
Problem Solving
Self Confidence
Assertiveness – Negotiation with suppliers & customers
Persuasive & Influential – Peers and stakeholders
Inspirational - employees
Effective Communicator – external & internal of
organization

13. Main features of entrepreneurship
An economic activity
A Creative activity
An innovative function
A dynamic process
An organizing function
A risk bearing function
A gap filling function
A goal oriented activity

14. Common Characteristics of Entrepreneurs
•Commitment, determination, and perseverance
•Drive to achieve
•Opportunity orientation
•Initiative and responsibility
•Persistent problem solving
•Seeking feedback
•Internal locus of control
•Tolerance for ambiguity
•Calculated risk taking
•Tolerance for failure
•High energy level
•Creativity and Innovativeness
•Vision
•Self-confidence and optimism
•Independence
•Team building

15. Entrepreneurial Characteristics – Indian Perspective
1. Vision : Dream and visualizing the ways and means to achieve,
visualizing market demands, socio-economic and
technological environment
 Without the vision of making a big mark on the mobile
industry Dhirubhai and now Anil Ambani could not have made
what Reliance Communication (An Anil Dhirubhai Ambani
Group) is today.
2. Knowledge : Conceptual knowledge and technicalities of
technological, operational, financial & market dynamics.
 Without sound knowledge of computers Naryanmurthy could
not have made Infosys.

16. 3. Desire to Succeed
 Constantly work to achieve higher goals.
 Without a desire to succeed constantly Mukesh
Ambani would not have planned to ventured into
Retail, Real Estates and Biotech.
4. Independence
 Needs independence in work and decision making
without following rules of thumb and make their own
rules and destiny.
 Without a desire for independence, Sabeer Bhatia
would not have quit his job to start enterprise own his
own and created Hotmail.com and Arzoo.com

17. 5. Optimism
 Highly optimistic about achieving their vision.
 Without optimism Narayanmurthy (who took loan from his wife
as not having enough finances) would not have left a lucrative
job and created Infosys.
6. Value Addition
 Not rule of thumb , but a constant desire to introduce something
new to existing business.
 Create, innovate or even add value to the existing products.
 Without value addition of ‘life time free incoming calls’ Tata
Indicom would not have been able to create space in already
saturated mobile markets.

18. 7. Leadership
 Exhibits qualities of a leader -Good Planners,
Organizers, Good Communication Skills, Empathetic
toward their employees, good decision-makers, initiative
to implement plans, result oriented
8. Hard working
 At time also called as workaholics.
 Continuous efforts to achieve success and know that
there is no substitute for hard work
9. Desire to control over their own fate
 Do not move in herds like sheep but pave own paths.
 Do not believe in luck or destiny but create their own
destiny.

19. Attributes and Skills
 These so called entrepreneurial characteristics
can be looked at to determine a set of skills
useful for entrepreneur to possess.
Group Skills –work and learn together, task
force, project teams
Technical Skills – technological, writing, mgt,
organizing.
Business mgt skills, DM and analytical skills
Personal Entrepreneurial Skills- risk, innovative,
visionary, persistent, manage change.

20. 20
Types of Entrepreneurs
• Novice Entrepreneur
– Has no prior business ownership experiences as a business
founder, inheritor, or purchaser
• Habitual Entrepreneur
– Has prior business ownership experience
• Nascent Entrepreneur
– In the process of starting a new business
– Can be either a novice or a habitual entrepreneur

21. 21
Types of Entrepreneurs (cont’d)
• Serial Entrepreneur
– Has sold or closed an original business and
establishes another new business
– Continues the cycle of selling/closing and
establishing
• Portfolio Entrepreneur
– Retains an original business and builds a portfolio of
additional businesses
• Through inheriting, establishing, and purchasing the
businesses

23. 23
Current Importance of
Entrepreneurship
• Three areas of importance
1. Innovation
• Process of creating, changing, experimenting,
transforming, and revolutionizing
2. Number of New Start-ups
• Important because new firms contribute to
economic development through benefits such as
product-process innovation
3. Job Creation
• Vital to the overall long-term economic health of
communities, regions, and nations

24. • Entrepreneurship is the dynamic need of a
developing nation and sustains the process of
economic development in the following ways:

25. • Employment generation
• National income
• Dispersal of Economic power
• Balanced Regional development
• Harnessing Locally available resources and
Entrepreneurship
• Reducing unrest and social tension amongst youth
• Innovations in enterprises
• Improvement in living standards
• Economic independence

26. Entrepreneurial Environment
• Entrepreneurial Environment is a combination of
factors that play a role in the development of
entrepreneurship.
• First, it refers to the overall economic, socio-
cultural, and political factors that influence
people’s willingness and ability to undertake
entrepreneurial activities.
• Second, it refers to the availability of assistance
and support services that facilitate the start-up
process.

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

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

29. Steps in the Entrepreneurial Process
2. Concept Development:
– Develop a business plan: a
detailed proposal describing
the business idea
Executive summary
Objective
Mission Statement

30. 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
Start-up resources

31. Steps in the Entrepreneurial
Process
4. Actualization: The stage in which
the entrepreneur operates the
business and utilizes resources to
achieve its goals/objectives.
$$ Grand Opening $$
Day-to-Day Operations

32. Steps in the Entrepreneurial
Process
5. Harvesting: The stage in which the
entrepreneur decides on business’s
future growth/ development, or
demise
What is your 5-year or 10-year plan?
Consider adding locations or providing different products/services
Will you go public?