Entrepreunership.pptx

Chapter Entrepreneur and Entrepreneurship
No Title
Introduction
Meaning Of Entrepreneur
Qualities Of Entrepreneur
Types Of Entrepreneur
Functions Of Entrepreneur
Caselets
Shantilal Hajeri 1

8.1 Introduction
• Every successful entrepreneur was once a beginner.
• The long journey of Entrepreneurship starts with a single
step.
• Entrepreneurship is vital for stimulating economic growth
and employment opportunities in all societies.
• An entrepreneur is ordinarily called a businessman.
• He is a person who combines capital and labour for the
purpose of production.
• He organizes and manages a business unit assuming
the risk for profit.
• He is the artist of the business world.
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Nature of Entrepreneurship
• It is a function of innovation.
• It is a function of leadership.
• It is an organization building function.
• It is a function of high achievement.
• It involves creation and operation of an enterprise.
• It is concerned with unique combinations of resources
that make existing methods or products obsolete.
• It is concerned with employing, managing, and
developing the factors of production.
• It is a process of creating value for customers by
exploiting untapped opportunities.
• It is a strong and positive orientation towards growth in
sales, income, assets, and employment
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Benefits of Entrepreneurship
• Generates new ideas
• Produces new goods and services
• Generates employment opportunities
• Utilises natural resources for human
development
• Pays revenues to the Government in the form of
taxes
• Reduce dependence on Govt. jobs.
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8.1 Introduction
• Employee + Entrepreneur = Emplopreneur.
• ORDINARY + EXTRA= EXTRA ORDINARY
• ATTITUDE, SKILL and KNOWLEDGE are the 3
attributes that an entrepreneur should possess
in right proportion.
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George Bernard Shaw
• According to George Bernard Shaw, people fall
into three categories:
1. Those who make things happen.
2. Those who watch things happen, and
3. Those who are left to ask what did happen.
• Generally, entrepreneurs fall under the first
category
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Introduction
• Successful small businesses are the primary
engines of job creation, income growth, and poverty
reduction.
• Therefore, government support for entrepreneurship
is a crucial strategy for economic development
• Hector V. Baretto, administrator of the U.S. Small
Business Administration (SBA), explains, "Small
businesses broaden the base of participation in
society, create jobs, decentralize economic power,
and give people a stake in the future.“
• Entrepreneurship is a Journey not a destination.
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8.2 Meaning Of Entrepreneur
• The word ‘entrepreneur’ is derived from the
French word entreprendre.
• It means ‘to undertake’.
• An entrepreneur is the person who undertakes
the risk of new enterprise.
• Entrepreneur is another name of Risk Taker.
• An entrepreneur is an individual who takes
moderate risks and brings innovation.
• “Entrepreneur is an individual who takes risks
and starts something new”
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Risk Taker
 Risk is the possibility of not getting what you
expect.
 An entrepreneur should take calculated risk.
 After all Profit is the reward for taking risk.
 Not taking risk is the biggest risk.
 ENJOY YOUR WORK
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• Land Rent
• Labour Wages
• Capital Interest
• Entrepreneur Profit
An Entrepreneur is a person who knows how to
Arrange and use Land Labour and Capital to earn
some income which is more than Rent Wages and
Interest
In the words of J.B. Say, “An entrepreneur is one
who brings together the factors of production and
combines them into a product”.
10
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 Joseph A Schumpeter defines an entrepreneur
as “one who innovates, raises money,
assembles inputs and sets the organization
going with the ability to identify the opportunities,
 “An entrepreneur is an innovator playing the role
of a dynamic businessman adding material
growth to economic development”.
 Entrepreneur is an innovator who markets his
innovation.
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Meaning Of Entrepreneurship
• In the words of Stevenson and others, “Entrepreneurship
is the process of creating value by bringing together a
unique package of resources to exploit an opportunity.”
• According to A.H. Cole, “Entrepreneurship is the
purposeful activities of an individual or a group of
associated individuals undertaken to initiate, maintain or
organize a profit oriented business unit for the production
or distribution of economic goods and services”.
• "Entrepreneurship is essentially the act of creation
requiring the ability to recognize an opportunity, shape a
goal, and take advantage of a situation. Entrepreneurs
plan, persuade, raise resources, and give birth to new
ventures."
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8.3 Qualities of an Entrepreneur.
• An eye for opportunity: Many entrepreneurs start by
finding a need and quickly satisfying it.
• Independence: Even though most entrepreneurs know
how to work within the framework for the sake of profits,
they enjoy being their own boss.
• An appetite for hard work: Most entrepreneurs start
out working long, hard hours with little pay.
• Self-confidence: Entrepreneurs must demonstrate
extreme self-confidence in order to cope with all the risks
of operating their own business.
• Discipline: Successful entrepreneurs resist the
temptation to do what is unimportant or the easiest but
have the ability to think through to what is the most
essential.
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• Judgment: Successful entrepreneurs have the ability to
think quickly and make a wise decision.
• Ability to accept change: Change occurs frequently
when you own your own business, the entrepreneur
thrives on changes and their businesses grow.
• Make stress work for them: On the roller coaster to
business success the entrepreneur often copes by
focusing on the end result and not the process of getting
there.
• Need to achieve: Although they keep an "eye" on
profits, this is often secondary to the drive toward
personal success.
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• Focus on profits: Successful entrepreneurs always
have the profit margin in sight and know that their
business success is measured by profits. Is this your
profile or would you rather do your job, pick up your
paycheck and leave the headaches to someone
else? Most of us, quite easily, choose the later.
• Inner Drive to Succeed: Entrepreneurs are driven
to succeed and expand their business. They see the
bigger picture and are often very ambitious.
Entrepreneurs set massive goals for themselves and
stay committed to achieving them regardless of the
obstacles that get in the way.
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• Strong Belief in themselves: Successful entrepreneurs
have a healthy opinion of themselves and often have a
strong and assertive personality. They are focused and
determined to achieve their goals and believe completely
in their ability to achieve them. Their self optimism can
often been seen by others as flamboyance or arrogance
but entrepreneurs are just too focused to spend too
much time thinking about un-constructive criticism.
• Search for New Ideas and Innovation: All
entrepreneurs have a passionate desire to do things
better and to improve their products or service. They are
constantly looking for ways to improve. They're creative,
innovative and resourceful.
Shantilal Hajeri 16

• Openness to Change: If something is not working for
them they simply change. Entrepreneurs know the
importance of keeping on top of their industry and the
only way to being number one is to evolve and change
with the times. They're up to date with the latest
technology or service techniques and are always ready
to change if they see a new opportunity arise.
• Competitive by Nature: Successful entrepreneurs
thrive on competition. The only way to reach their goals
and live up to their self imposed high standards is to
compete with other successful businesses.
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• Highly Motivated and Energetic: Entrepreneurs are always
on the move, full of energy and highly motivated. They are
driven to succeed and have an abundance of self motivation.
The high standards and ambition of many entrepreneurs
demand that they have to be motivated!
• Accepting of Constructive Criticism and Rejection:
Innovative entrepreneurs are often at the forefront of their
industry so they hear the words "it can't be done" quite a bit.
They readjust their path if the criticism is constructive and
useful to their overall plan, otherwise they will simply
disregard the comments as pessimism. Also, the best
entrepreneurs know that rejection and obstacles are a part of
any leading business and they deal with them appropriately.
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Life long learner
 “Known is a drop but Unknown is an ocean”
 “Learn, Unlearn and Relearn”
 YOU LEARN A LOT BY SEEING, LOOKING,
WATCHING, LISTENING AND OBSERVING.
 KEEP YOUR EARS & EYES OPEN
 Do not chase the success. Be competent,
success will chase you
 “Learning is a life ling process”.
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I am responsible for .
who I am
what I have
what I do
Accept Responsibility

Core competencies for The 7 Habits of Highly
Effective People*
• Habit 1 Be Proactive® Take initiative, Manage change,
Respond proactively, Keep commitments, Take responsibility
and practice accountability, Create positive business results.
• Habit 2 Begin With the End in Mind® Define values, Create a
mission statement, Set measurable goals, Start projects
successfully, Align goals to priorities, Focus on desired
outcomes.
• Habit 3 Put First Things First® Execute strategy, Apply
effective delegation skills, Focus on important activities, Apply
effective planning and prioritization skills, Balance key
priorities, Eliminate low priorities and time-wasters, Use
planning tools effectively, Use effective time-management
skills.
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Effective People*
• Habit 4 Think Win-Win® Build high-trust
relationships, Build effective unit, Apply successful
negotiation skills, Use effective collaboration, Build
productive business relationships.
• Habit 5 Seek First to Understand Then to Be
Understood® Apply effective interpersonal
communication, Overcome communication pitfalls,
Apply effective listening skills, Understand others,
Reach mutual understanding, Communicate
viewpoints effectively, Apply productive input and
feedback, Apply effective persuasion techniques.
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Effective People*
• Habit 6 Synergize® Leverage diversity, Apply
effective problem solving, Apply collaborative
decision making, Value differences, Build on
divergent strengths, Leverage creative
collaboration, Embrace and leverage innovation.
• Habit 7 Sharpen the Saw® Achieve life balance,
Apply continuous
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8.4 Types of Entrepreneur
• Govt. definition
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Type of
enterprise Investment Turnover
Micro Upto Rs 1 crore Upto Rs 5 crore
Small
Above Rs 1 crore
Upto Rs 10 crore
Above Rs 5 crore
Upto Rs 50 crore
Medium
Above Rs 10 crore
Upto Rs 50 crore
Above Rs 50 crore
Upto Rs 250 crore

A. ON THE BASIS OF TYPE OF BUSINESS.
• Business Entrepreneur: He is an individual who
discovers an idea to start a business and then builds
a business based on his idea.
• Trading Entrepreneur: Buying and selling
manufactured goods.
• Industrial Entrepreneur: Undertakes
manufacturing activities.
• Corporate Entrepreneur: Managing a corporate
undertaking.
• Agricultural Entrepreneur: They are called
agripreneurs.
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B. ON THE BASIS OF USE OF TECHNOLOGY:
• Technical Entrepreneur: They are extremely task
oriented. They are of craftsman type. They develop new
and improved quality goods because of their
craftmanship.
• Non-Technical Entrepreneur: They develop marketing
techniques and distribution strategies to promote their
business. Thus they concentrate more on marketing
aspects.
• Professional Entrepreneur: He is an entrepreneur who
starts a business unit but does not carry on the business
for long period. He sells out the running business and
starts another venture.
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C. ON THE BASIS OF MOTIVATION:
• Pure Entrepreneur: They believe in their own performance
while undertaking business activities. They undertake
business ventures for their personal satisfaction and status.
• Induced Entrepreneur: He is induced to take up an
entrepreneurial activity with a view to avail some benefits from
the government.
• Motivated Entrepreneur: Motivated by the desire to make
use of their technical and professional expertise and skills.
• Spontaneous Entrepreneur: They are motivated by their
desire for self-employment and they are natural entrepreneurs
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D. ON THE BASIS OF STAGES OF DEVELOPMENT:
They may be classified into;
• First Generation Entrepreneur: He is one who starts
an industrial unit by means of his own innovative ideas
and skills. He is essentially an innovator.
• Modern Entrepreneur: He is an entrepreneur who
undertakes those ventures which suit the modern
marketing needs.
• Classical Entrepreneur: He is one who develops a self
supporting venture for the satisfaction of customers’
needs. He is a stereo type or traditional entrepreneur.
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E. CLASSIFICATION ON THE BASIS OF
ENTREPRENEURIAL ACTIVITY:
• Novice: A novice is someone who has started
his/her first entrepreneurial venture.
• Serial Entrepreneur: A serial entrepreneur is
someone who is devoted to one venture at a
time but ultimately starts many.
• Portfolio Entrepreneurs: A portfolio
entrepreneur starts and runs a number of
businesses at the same time.
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F. CLASSIFICATION BY CLARENCE DANHOF:
• Innovative Entrepreneurs:
• They are generally aggressive on experimentation
and cleverly put attractive possibilities into practice.
He introduces new goods, new methods of
production, discovers new markets.
• Adoptive Or Imitative Entrepreneurs:
• Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and
technology innovated by others.
• They copy and learn from the innovating
entrepreneurs.
Shantilal Hajeri 30

F. CLASSIFICATION BY CLARENCE DANHOF:
• Fabian Entrepreneurs:
• These entrepreneurs are traditionally bounded.
• They would be cautious.
• They are shy and lazy.
• They try to follow the footsteps of their
predecessors.
• They follow old customs, traditions, sentiments etc.
• Drone Entrepreneurs:
• They follow the traditional method of production.
• They may even suffer losses but they are not ready
to make changes in their existing production
methods.
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• Commercial Entrepreneurs:
• They are those entrepreneurs who start business
enterprises for their personal gain.
• They undertake business ventures for the purpose
of generating sales and profits.
• Social Entrepreneurs:
• They are those who identify, evaluate and exploit
opportunities that create social values and not
personal wealth.
• They focus on the disadvantaged sections of the
society.
• They play the role of change agents in the society.
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• Copreneurs:
• Copreneurs are entrepreneurial couples who work
together as co-owners of their business.
• They are creating a division of labour that is based
on expertise as opposed to gender studies show
that companies co-owned by spouses represent one
of the fastest growing business sectors.
• Marcia Sherrill with her husband William Kleinberg
(USA) runs Kleinberg Sherrills, a leather goods and
accessories business.
Shantilal Hajeri 33

• Intrapreneurs:
• The term intrapreneur was coined in USA in the late
seventies.
• Many senior executives of big companies in America left
their jobs and started small business of their own.
• These entrepreneurs become successful in their own
ventures.
• They believe strongly in their own talents.
• They have desire to create something of their own.
• They want responsibility and have a strong drive for
individual expression and more freedom in their present
organisational structure..
Shantilal Hajeri 34

• Ultrapreneur:
• Now-a-days, new products and services are conceived,
create, tested, produced and marketed very quickly and
with great speed.
• Therefore, today’s entrepreneur needs to have a
different mindset about establishing and operating a
business. This mindset is called ULTRAPRENEURING.
• An entrepreneur with this mind set is known as
Ultrapreneur.
• The concept of Ultrapreneuring is to identify a business
opportunity, determine its viability and form a company.
• They create business and then sell out, merge or
combine
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Entrepreneurship Development Programmes
• Entrepreneurship Development Programmes
(EDPs) are the training programmes designed
and conducted by Entrepreneurship
Development training institutes for providing
right type of training to the right candidates to
impart right skills.
• Entrepreneurship Skill Development Programme
(ESDP) is conducted at ITIs, Polytechnics and
other technical institutions
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Institutional Support to Entrepreneurs
• Institutes for Entrepreneurship Development
• Government of India
• Reserve Bank of India
• Small Industries Development Organisation (SIDO)
• National Small Industries Corporation (NSIC),
• Small Industries Service Institutes (SISI)
• Khadi and Village Industries Commission (KVIC)
• Small Industries Development Bank of India (SIDBI)
• National institute for Entrepreneurship and Small
Business Development (NIESBUD)
• Commercial Banks
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8.6 Caselets. Successful Entrepreneurs
Shantilal Hajeri 38
Name Associated company
Adi Godrej Godrej Group
Aditya Vikram Birla Birla Group
Anand Mahindra Mahindra and Mahindra
Anil Ambani ADAG
Anil Manibhai Naik Larsen & Toubro Ltd
Azim Premji Wipro
Dhirubhai Ambani Relliance Group
JRD Tata Tata Group
Karsanbhai Patel Nirma
Kumar Mangalam Birla Aditya Birla Group
Lakshmi Mittal ArcelorMittal
M.S. Oberoi Oberoi group

Shantilal Hajeri 39
Name Associated company
N. R. Narayana Murthy, Infosys
Naresh Goyal Jet Airways
Pankaj M Munjal Hero Group
Rahul Bajaj Bajaj Group
Ratan Tata Tata Group
Sanjeev Bikhchandani Naukri.com
Sarathbabu Elumalai FoodKing
Shantanu L Kirloskar Kirloskar Group
Shiv Nadar HCL Technologies
Swaraj Paul Caparo Group
T V Sundram Iyengar TVS group
Tulsi Tanti Suzion Energy
Y C Deveshwar ITC

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• He is the man behind the washing powder
NIRMA who started it in 1969.
• He was Indian Entrepreneur who took on the big
MNCs and rewrote the rules of business.
• During that time the domestic detergent market
there were very few companies, mainly the
MNCs, which were into this business.

Shantilal Hajeri 41
• Dhirubhai Ambani was an iconic proof of what an
ordinary Indian fired by the spirit of enterprise and driven
by determination can achieve in his own lifetime.
• In 1966 he formed Reliance Commercial Corporation
which later became Reliance Industries on 08 May 1973.
• For a long time this was the number one company in
India based on Market capitalization.
• As of 2017, the company has more than 250,000
employees.
• In 2012, Reliance Industries was one of the two Indian
companies to be ranked among the top 100 in
the Fortune 500 list of the world's largest
• companies by revenue.

• Shantanurao Laxmanrao Kirloskar (28 May 1903 –
24 April 1994) was an Indian businessman who was
instrumental in the rapid growth of the Kirloskar
Group.
• There is a proverb in Marathi which has a similar
proverb in English “Cut your coat according to your
cloth.”
• He rejected this proverb and said “Work hard, earn
more and buy enough cloth to cut your coat
according to your size.” He said, "Economic
preparedness is as vital as military preparedness."
Shantilal Hajeri 42

• Narayana Murthy and six software professionals
founded Infosys in 1981 with an initial capital
injection of Rs 10,000, which was provided by
his wife Sudha Murthy.
• INFOSYS chose the slogan “Powered by
Intellect, Driven by Values.
• Infosys was the 1st Indian company to be listed
on NASDAQ.
• He has been described as the "father of the
Indian IT sector" by Time magazine.
Shantilal Hajeri 43

• Azim Premji is the founder of Wipro
technologies.
• His conviction in IT business made him a
billionaire & a global business tycoon.
• India's success in IT industry starts with the
stories of Narayan Murthy & Azim Premji.
• He holds a distinction as “the most Generous
Indian' by donating over $ 11,000 crore (Rs.
7,70,000 crores) to charity
Shantilal Hajeri 44

• JRD Tata He joined Tata Sons as an unpaid apprentice
in 1925.
• In 1938, at the age of 34, JRD was elected Chairman of
Tata Sons.
• He was famous for succeeding in business while
maintaining high ethical standards – refusing to bribe
politicians or use the black market.
• Tata obtained the first pilot licence issued in India.
• He later came to be known as the father of Indian civil
aviation.
• He founded India's first commercial airline,
• Tata Airlines in 1932
Shantilal Hajeri 45

• Kumar Mangalam Birla (born 14 June 1967) is
an Indian billionaire industrialist, and the
chairman of the Aditya Birla Group, one of the
largest conglomerates in India.
• Birla took over as chairman of the Aditya Birla
Group in 1995, at the age of 28.
• During his tenure as chairman, the group's
annual turnover has increased from US$3.33
Billion in 1995 to US$48.3 billion in 2019
Shantilal Hajeri 46

• Lakshmi Niwas Mittal (born 15 June 1950) is
an Indian born steel magnate, based in
the United Kingdom.
• He is the chairman and CEO of ArcelorMittal, the
world's largest steelmaking company.
• In 2005, Forbes ranked Mittal as the third-richest
person in the world, making him the first Indian
• citizen to be ranked in the top ten
Shantilal Hajeri 47

• Ratan Tata succeeded JRD Tata as the
Chairman of Tata Sons in 1991.
• During Ratan Tata's chairmanship of 21 years,
revenues grew over 40 times, and profit, over 50
times.
• Tata Consultancy Services (TCS) became the
number one company of India based on Market
capitalization replacing Reliance industries.
Shantilal Hajeri 48

• Anand Gopal Mahindra (born 1 May 1955) is the
Chairman of Mahindra Group, a Mumbai-based
business conglomerate.
• The group operates in aerospace, agribusiness,
automotive, components, construction
equipment, defence, energy, farm equipment,
finance and insurance, industrial equipment,
information technology, leisure and hospitality,
logistics, real estate and retail.
Shantilal Hajeri 49

Other entrepreneurs
• Sanjeev is the founder of Naukri.com – an Indian
job portal.
• THIRUKKURUNGUDI VENGARAMASWAMY
SUNDRAM is the founder of T V Sundram
Iyengar and Sons Limited group of companies,
one of India's largest industrial conglomerates.
• Shiv Nadar, Chairman and Chief Strategy Officer
of HCL Technologies
• Sarathbabu Elumalai is the founder and CEO
of FoodKing.
Shantilal Hajeri 50

Every body is born with specific skills.
Identify your skills.
Shantilal Hajeri 51

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