The document outlines the essence of entrepreneurship, highlighting it as a purposeful activity aimed at generating profit through innovative production and distribution. It describes the entrepreneurial process, including opportunity identification, resource acquisition, implementation, and emphasizes the importance of psychological traits such as motivation, risk tolerance, and adaptability. Additionally, it discusses the stages of entrepreneurship development, key constraints, and the rewards associated with successful entrepreneurial ventures.

1. All About Entrepreneurship
Sunil Shukla

2. Entrepreneurship
Entrepreneurship is a purposeful activity
of an individual or a group of associated
individuals, undertaken to initiate,
maintain or aggrandise profit by
production or distribution of economic
goods.

3. Entrepreneurial Individual
 Has concept, vision, dream
 Adapts concept to reflect realities in environment,
scans environment
 Assesses risks versus rewards
 Mobilizes resources
 Able to convert dream into products and people within
an organizational context
 Able to champion the concept to a wide range of
publics and partners
 Persevere in overcoming obstacles
 Optimizes profits

4. An Integrative Model of Entrepreneurial Inputs and Outcomes
Inputs Outcomes
Environmental
Opportunities
Entrepreneurial
individuals
An organizational
context
Unique business
concepts
Resources
The entrepreneurial
Process
• Identify opportunity
• Assess and acquire
necessary
resources
• Implementation
• A going venture
• Value
• New products,
services
• Processes
• Profits and/or
personal
benefit
• Technologies
• Employment,
asset, and
revenue
growth
Entrepreneurial
creation Intensity (EI)
Number of events (and)
degree of
entrepreneurship
Innovation Risk
taking
Proactive
ness
Source: Michael H. Morris, P. Lewis, and Donald L. Sexton, “Reconceptualizing Entrepreneurship: An Input-Output
Perspective,”, SAM advanced Management Journal 59, no.1 (Winter 1994): 21-31

5. Entrepreneurial Personality-
Psychological
 1. Motivation – driven by range of factors
 Necessity (survival)
 Opportunity (proactivity)
 Dissatisfaction (can’t stand job)
 Curiosity (What if…?)
 Material gain (We could make a killing…)
 Achievement oriented more than anything else
 Driven by the task, challenge, opportunity
 Money as a by-product, but scorecard
 2. Strong belief in themselves- believe they can change their
environments

6. …Personality
 3. Calculated risk-takers (financial, career, family &
social, psychic)
 Attempt to estimate likelihood and magnitude of key risk
factors and manage or mitigate them through good planning
or decisions
 4. High tolerance of ambiguity
 Process can be loose, messy, shift directions
 Prize their independence – self-motivated, self-reliant,
prefer autonomy, have perseverance

7. Situation-based Characteristics
 Willingness and ability to assume and manage
risks
 More critical with new-to-the-world products
 Political skills important in large corporate
settings
 Adaptability and tenacity are bigger factors in
turbulent environments

8. Dark Side Traits
 Excessive need for control
 Tendency to micromanage
 Suspicion – others will steal my idea
 Impatience
 Need for applause
 Defensive attitude

9. Entrepreneurial Risks
 Sinking the Boat Risk
 Missing the Boat Risk
TR=f (SBR, MBR)
Missing the boat risk
curve
Total Risk
Planning Time
Sinking the boat risk curve

10. Risks at Startup
 Risk in Opportunity Identification
 Risk in Commercial Viability
 Risk in Investment
 Risk in Financing

11. Rewards of Entrepreneurship
 Financial
 A successful business has the potential to make good profits
and provide substantial wealth for the entrepreneur.
 Social and Emotional
 There is seldom a higher reward than making a positive
difference to another person's life.
 The successful business provides jobs, pride and financial
security for its employees.
 Independence
 Financial success increases the independence and potential of
Growth Rewards.

12. Typical Risk/Reward Visualization
Money
Time
Break-even
Point
Potential Reward
Risk

14. Entrepreneurship Development :
Process, Stages and Interventions

15. CONSTRAINTS TO EMERGENCE
OF
INDIGENOUS ENTREPRENEURS
o Socio-cultural factors – job orientation?
o Low motivation and confidence
o Inadequate information on procedures,
fundraising
o Inadequate knowledge on:
- Market Assessment
- Enterprise Management

16. Entrepreneurship Development:
Key Components

17. ENTREPRENEURSHIP
DEVELOPMENT PROCESS
• Identify, select, train, counsel and support potential
entrepreneurs for creating new enterprises
• Facilitate growth of existing entrepreneurs and groom
successors
• Contribute towards developing entrepreneurial culture
• Facilitate creation of a conducive environment for
emergence and growth of enterprises
• Intervene for developing enterprises- technology and
management (market, quality, finance, human resources)

18. STAGES OF
ENTREPRENEURSHIP
DEVELOPMENT
GROWTH
SURVIVAL
EMERGENCE (START-UP)
EARLY SOCIALIZATION

19. (1) Early socialization
 Creating literature
 Short duration vacation camps
 Visits to industries
 Interactions with entrepreneurs/
achievers from different fields
 Competitions, debates
 Success stories, Projection of
Business Role Models

20. (2) Emergence (Start-up)
 Entrepreneurship education
 Entrepreneurship training
 Business Plan teaching/ training
 Entrepreneurship orientation
 Technical Training
 Management Skills Development
 Technology Demonstrations
 Trade Fairs
 Incubation

21. (3) Survival
 Accounting systems
 Marketing and product promotion
 Managing Human resources
 Seminars and workshops on
technology, quality, operations,
machine safety
 Systems development
 ICT and MIS

22. (4) Growth
 Export marketing
 R&D, Innovation, Value Addition
 Diversification
 Cluster development
 Finance- IPO
 Corporatization
 Internationalization
 Brand building
 Succession planning

23. Thankssunilshukla@ediindia.org