This document provides an overview of entrepreneurs and entrepreneurship. It defines entrepreneurs as those who create something new and take risks to do so in order to achieve rewards. The document outlines the role and personality of entrepreneurs. It also discusses the process of entrepreneurship including opportunity identification, venture creation and management. Finally, it compares entrepreneurs and managers, noting that entrepreneurs are independent risk-takers who create new ventures, while managers work within existing organizations.

1. Module 1
Concept of an Entrepreneur and
Entrepreneurship
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2. CONTENT
1.
2.
3.
4.
The entrepreneur’s role, task and personality,
A typology of entrepreneurs,
Entrepreneurship as a style of management,
The
entrepreneurial
venture
and
the
entrepreneurial organization
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3. WHO ARE ENTREPRENEUR?
Entrepreneur can be defined as:
1. Creating something new or initiative taking or
innovative,
2. Accepts risks or failure,
3. Gets reward.
Entrepreneurs are found in all professions
(education, medicine, architecture, research, law,
engineering).
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4. Process
Uniqueness
Growth
Profit or No
Profit
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Entrepreneur
Defining
Entrepreneurship
Creating
Value
Innovation
Organization
Creation
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5. MISCONCEPTIONS ABOUT
ENTREPRENEURSHIP
1. Successful entrepreneurship needs only great
idea.
2. Entrepreneurship is easy.
3. Entrepreneur is risk gamble.
4. Entrepreneurship is found only in small business.
5. Entrepreneurship ventures and small business
are same thing.
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6. TYPES OF ENTREPRENEURS
1.
2.
3.
4.
5.
Nascent Entrepreneur
Novice Entrepreneur
Habitual Entrepreneur
Serial Entrepreneur
Portfolio Entrepreneur
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7. REWARDS AND CHALLENGES OF BEING
ENTREPRENEUR
Rewards:
1. High degree of freedom
2. Get to use a variety of skills and talents
3. Freedom to make decisions
4. Accountable to yourself only
5. Feeling of achievement and pride
6. Potential for greater financial rewards
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8. REWARDS AND CHALLENGES OF BEING
ENTREPRENEUR (CONT.)
Challenges:
1. Must be comfortable with changes and
uncertainties.
2. May face tough economic choices.
3. Must be comfortable with taking risk.
4. Need many different skills and talents.
5. Must be comfortable with potential failure.
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9. ENTREPRENEURIAL DECISION PROCESS
1. Exploring the entrepreneurial context
2. Identifying
opportunities
and
competitive advantage
3. Starting the venture
i) Researching feasibility
ii) Planning the venture
iii) Organizing the venture
iv) Launching the venture
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possible
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10. ENTREPRENEURIAL DECISION
PROCESS (CONT.)
4. Managing the venture
i) Managing processes
ii) Managing people
iii) Managing people and Entrepreneurial
challenges
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11. 12/5/2013
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12. REASONS FOR THE FAILURE OF BUSINESS
•
•
•
•
•
•
•
•
Wrong location
Inexperienced promoters
Technological factors
Non productive capital asset
Long gestation period
Rosy pictures presented by consultancy firms
Faulty demand forecasting
Improper environmental scanning
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13. VISIBLE PROBLEMS FOR THE BUSINESS
• Internal problems
• External problems
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14. INTERNAL PROBLEMS
•
•
•
•
•
•
Management problems
Financial problems
Labor problems
Diversion of resources
Failure to modernize
Personal wasteful expenditure
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15. EXTERNAL PROBLEMS
•
•
•
•
•
•
Govt. policy
Increased competition from MNCs
Power cuts
Shortage of raw material
Recession in the market
Credit squeeze
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16. SIGNIFICANCE OF ENTREPRENEUR IN
ECONOMIC DEVELOPMENT
• Promotes capital formation by mobilizing idle savings
• Provides immediate large-scale employment
• Helps in reducing the concentration of economic
power
• Stimulates equitable redistribution of wealth, income
• Promotes country’s export trade: an important
ingredient to economic development
• Encourages effective resource mobilization of capital
and skill
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17. COMPARISON OF ENTREPRENEURS AND
MANAGERS
•
Managers
1.
2.
Dependents on owners.
Primary motives are promotions and
traditional corporate rewards.
Short term orientations meeting quotas,
budgets or annual planning.
Delegates and supervises more than direct
involvement.
Careful and tries to avoids failures and
risks.
Operates from with in the organization.
Need not to raise capital
Serves others
Usually agrees to decisions taken at upper
management positions.
3.
4.
5.
6.
7.
8.
9.
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• Entrepreneurs
1. Independent
2. Primary motives are independence,
opportunity to create and money.
3. Survival and achieving 5-10 yrs growth
of business.
4. Direct involvement.
5. Deals with full risks and failure.
6.
7.
8.
9.
Operates from outside.
Himself raises the necessary capital.
Serves self and customers.
Follows dreams with decisions taken by
himself.
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18. TYPES OF START-UPS
1.
2.
3.
4.
Lifestyle firms
Foundation firms
High-potential venture
Gazelles
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19. Chapter Closed
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