Entrepreneurship introduction , concept , need , growth &innovation RTU btech

MAHARSHI ARVIND INSTITUTES OF
ENGINEERING AND TECHNOLOGY
By :- AMBUJ TAK
MANISH PRAJAPAT
BALVINDER SINGH
ANKUR NAGWAN
TITLE :- INTRODUCTION ON ENTREPRENEURSHIP

ENTREPRENEURSHIP
Entrepreneurship is the “process of the entrepreneur”. It is an attempt to
create value through recognition of business opportunity. It is basically
communicative and management functions to mobilize financial and material
resources.
The entrepreneurial activity is governed by varying combination of socio-
economic, psychological, cultural and other factors: Caste/religion, Family
background, Level of education, Level of perception, Occupational background,
Migratory character, Entry into entrepreneurship, Nature of enterprise, Investment
capacity and Ambition/moderation.
Entrepreneurship is the act of being an entrepreneur, who starts any
economic activity for being self-employed.

ENTREPRENEURSHIP
The pursuit of opportunity through innovation,
creativity and hard work without regard for the
resources currently controlled.
 Entrepreneurship: a way of thinking, reasoning, and acting
that is:
opportunity obsessed
holistic in approach
leadership balanced

CONCEPT OF ENTREPRENEURSHIP
ENTREPRENEUR is a person who:
 Develops and owns his own enterprise.
 Is a moderate risk taker and works under
uncertainty for achieving the goal.
 Is innovative.

Is a persuader of deviant pursuits.
Reflects a strong urge to be independent.
Persistently tries to do something better.

Is dissatisfied with routine activities.
Is prepared to withstand the hard life.
Is determined, but patient.
Is oriented towards the future.

Exhibits a sense of leadership.
Exhibits a sense of competitiveness.
Takes personal responsibility.
Tends to persist in the face of adversity

ENTREPRENEUR
Richard Cantillon: As a person, who pays a certain price to a product to
resell it at an uncertain price, thereby making decisions about obtaining
and using the resources while consequently admitting the risk of
enterprise.
Adam Smith: An individual, who undertakes the formation of an
organization for commercial purposes by recognizing the potential demand
for goods and services, and there by acts as an economic agent and
transforms demand into supply.

Enterprise
An entrepreneur is a person who starts an enterprise.
The process of creation is called entrepreneurship.
The entrepreneur is the actor and entrepreneurship is the act.
The outcome of the actor and the act, is called the enterprise.
An enterprise is the business organization that is formed and which
provides goods and services, creates jobs, contributes to national income,
exports and contributes to the overall economic development.

Entrepreneur versus Entrepreneurship
The term “entrepreneur‟ is often used interchangeably with “entrepreneurship‟ but,
conceptually, they are different, yet they are just like the two sides of a coin. Both the terms
are co-related.
An entrepreneur is a person who bears the risks, unites various factors of production and
carries out creative innovations. He/she is an individual or one of a group of individuals who try
to create something new. He/she always attempting to bring about change in terms of factor
proportions, which is known as innovation.
On the contrary, entrepreneurship is the set of activities performed by an entrepreneur. It is
process of identifying opportunities in the market place and marshalling the resources required
to pursue these opportunities for long term gains. It is the attempt to create value.

WHY WE NEED ENTREPRENEURSHIP
We need money to survive in this world and for money we WORK

Life-line of a nation: No country can progress without the development of entrepreneurship. Every country is trying to
promote its trade so that it is able to share the benefits of development. Therefore, entrepreneurship is the yardstick to measure the level of
development of a country.
Provides innovation: Entrepreneurship provides new ideas, imagination and vision to the enterprise. An entrepreneur is an
innovator as he tries to find new technology, products and markets. He increases the productivity of various resources. The entrepreneur
stands at the center of the whole process of economic development. He conceives business ideas and puts them into effect, to enhance the
process of economic development.
Change of growth/Inclusive growth: An enterprise operates in a changing environment. The entrepreneur moulds
the enterprise in such a changing environment. The latter moulds not only the enterprise, but also alters the environment itself, to ensure the
success of the enterprise. In order to meet the challenge of automation and the complexities of advanced technology, there is a need for the
development of entrepreneurship.
Increased profits: Profits can be increased in any enterprise, either by increasing the sales revenue or reducing cost. To
increase the sales revenue is beyond the control of an enterprise. Entrepreneurship, by reducing costs, increases its profits and provides
opportunities for future growth and development.
Employment opportunities: Entrepreneurship and its activities provide the maximum employment potential. Large
numbers of persons are employed in entrepreneurial activities in the country. The growths in these activities bring more and more
employment opportunities.
Social Benefits: It is not only beneficial to the business enterprise, but to the society at large. It raises the standard of living by
providing good quality products and services at the lowest possible cost. It also makes the optimum use of scarce resources and promotes
peace and prosperity in the society.

Increases national production
Balanced area development
Dispersal of economic power
Reinvestment of profit for the welfare of the area of profit generation
Development is a function of motivation and human resource
Entrepreneurial awareness

Myths of Entrepreneurship
Starting a business is easy
Actually it is not. Most people, who begin the process of starting a company, fail to get one up and running. Seven years
after beginning the process of starting a business, only one third of entrepreneurs have a new company with positive cash
flow greater than the salary and expenses of the owner for more than three consecutive months. But small
entrepreneurships are comparatively easier to start.
It takes a lot of money to finance a new business
The typical start-up only requires about Rs.1,50,000/- to get going. The successful entrepreneurs, who don‟t believe the
myth, design their businesses to work with little cash. They rent instead of buying. And they turn fixed costs into variable
costs by, say, paying people commissions instead of salaries for example; Infosys was started with only Rs. 10,000/-.
Start-ups can’t be financed with debt
Actually, debt is more common than equity. A lot of entrepreneurs use debt rather than equity to fund their companies.
However, the composition of debt and equity will have to be worked upon.
Banks don’t lend money to start-ups
This is another myth. Banks and various government schemes have been implemented with the idea of providing finance
to budding entrepreneurs.

Myths of Entrepreneurship
Most entrepreneurs start businesses in attractive industries
Most entrepreneurs head right for different industries for start-ups. The correlation between the number of entrepreneurs
starting businesses in an industry and the number of companies failing in the industry is 0.77. That means that most
entrepreneurs are picking industries in which they are most likely to fail. Mahima Mehra started Hathi Chaap. It was totally
a new venture where different raw materials were tried out to make handmade paper. After researching a lot, they found that
elephant dung had more fibre content which made it easy to make handmade paper.
The growth of a start-up depends more on an entrepreneur’s talent than on
the business he chooses
This is not true as the industry that an entrepreneur chooses to work has a huge effect on the odds that it will grow. For
instance, various dotcom companies mushroomed all over the world during the Y2K problem in the year 2000.
Most enterprises are successful financially
This is also another myth. Entrepreneurship creates a lot of wealth, but it is very unevenly distributed. The typical profit of an
owner-managed business is Rs.2, 40,000 per year. Only the top ten percent of entrepreneurs earn more money than
employees. And, the typical
entrepreneur earns less money than he/she otherwise would have earned, working for someone else.

Entrepreneurship INNOVATION
Humble beginning of KFC
In 1930, the then 40 year old Sanders was operating a
service station in Corby, Kentucky, USA and he
encountered a lot of hungry travellers who stopped for
gas. He saw that the travellers wanted to eat something
as there was nothing available in that area. He saw and
understood the problem. As a child, he used to cook for
his siblings and so he knew how to cook, which instigated
him to cook for the travellers. He did not even have a
restaurant to serve food but his secret blend of 11 herbs
and spices made his chicken recipe such a super hit
among travellers that he started getting regular
customers for his food, which prompted him to start a
restaurant. This is the humble beginning of the world
famous fast food chain
“KFC- Kentucky Fried Chicken”.

Entrepreneurship INNOVATION
Potato Chips
Inventor: George Crum, a chef at
the Carey Moon Lake House in
Saratoga Springs
What they were trying to make:
A plate of fried potato.
How it was created: One day, a
customer sent back his plate of
potatoes many times and kept asking
for them to be more fried and
thinner.
Crum lost his temper, sliced the
potatoes insanely thin and fried them
until they were hard as a rock. To the
chef's surprise, the customer loved
them and wanted more! And this is
how potato chips came into
existence.
The Pacemaker
Inventor: John Hopps, an
electrical engineer
What he was trying to
make: Hopps was conducting
research on hypothermia and
was trying to use radio
frequency heating to restore
body temperature.
How it was created: During
his experiment, he realized that
if a heart
stopped beating due to cooling,
it could be started again by
artificial
stimulation. This realization led
to the pacemaker.
Microwave Ovens
Inventor: Percy Spencer, an
engineer (with the Raytheon
Corporation)
What he was trying to make:
The engineer was conducting a
radar-related research project with a
new vacuum tube.
How it was created: Spencer
realized that the candy bar in his
pocket began to melt during his
experiments. He then put popcorn
into the machine, and when it
started to pop, he knew he had a
revolutionary device on his hands.
Ink-Jet
Printers Inventor:
A Canon engineer.
How it was created: After
resting his hot iron on his
pen by accident, ink was
ejected from the pens point
a few moments later. This
principle led to the creation
of the inkjet printer.
It is clear from these examples,
that the various inventions people
all over the world have tried,
failed and succeeded in sometimes
by mistake. Utility for the
invention will be developed later
in life, so immediate results for all
one‘s actions should not be
expected, but keep experimenting.

INNOVATION & ECONOMIC
GROWTH
After a start to explore our business we can do :-
CREATING WEBSITE
CREATE MOBILE APPLICATION
CREATE ACCOUNT ON SOCIAL NETWORKING SITES
OFFLINE PROMOTION
TRY NEW THINGS TOO
GIVE BETTER MAINTINESS
OPEN NEW BRANCHES

BENEFITS of Entrepreneurship
• independence and opportunity to achieve the desired objectives, it offers the
advantage of not depending on others to implement its wishes;
• chance to notice a difference in a field they are interested in combining the wishes their social
insurance with a win for a better life;
• opportunity to use its full potential for entrepreneurs because there is much difference between the
work of business and recreation, making them find their place of business to obtain satisfaction, for their use
which have better qualities;
• opportunities to earn substantial profits, although the reason to start a business, an entrepreneur
may not be primarily profit;
• recognition efforts and contribution to the achievement of social objectives, entrepreneurs
become very respected person in the community in which it operates;
• opportunity to do what you love, because most entrepreneurs develop business in areas

SUMMARY
Entrepreneurship is the act of being an entrepreneur, who starts any economic
activity for being self-employed.
Entrepreneurship is lifeline of nation: No country can progress without the development of
entrepreneurship. Every country is trying to promote its trade so that it is able to share the
benefits of development. Therefore, entrepreneurship is the yardstick to measure the level of
development of a country.
Provides innovation: Entrepreneurship provides new ideas, imagination and vision to the
enterprise. An entrepreneur is an innovator as he tries to find new technology, products and
markets. He increases the productivity of various resources. The entrepreneur stands at the
center of the whole process of economic development. He conceives business ideas and puts
them into effect, to enhance the process of economic development.

Entrepreneurship introduction , concept , need , growth &innovation RTU btech

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