Introduction of Entrepreneurship

1. INTRODUCTION TO
ENTREPRENEURSHIP
By Kaushambi Kaushal

2. The term "entrepreneur" was coined by the
French economic philosopher
Jean-Baptiste Say in the early 1800s

3. DIFFERENT TYPES OF ENTREPRENEURS?
Builder
Opportunist
Innovator
Specialist

4. BUILDER
• Builders seek to create scalable businesses within a short time
frame.
• These individuals seek to build out a strong infrastructure by
hiring the best talent and seeking the best investors.
• They have temperamental personalities that are suited to the
fast growth they desire but may make personal and business
relationships difficult.
• They also started a venture capital firm for technology
businesses.
Examples:-
o Kamal Khetan: Built one of the biggest real estate
companies in India in less than a decade. He led the
company's first joint development in Vile Parle, Mumbai.
o Bill Gates: A well-known business builder.
o Mark Zuckerberg: A well-known business builder.
o Jeff Bezos: A well-known business builder

5. CHARACTERISTICS OF A BUILDER
ENTREPRENEUR?
They are work-
driven
They are talented in
many ways
They have a unique
frame of
preferences
They have
remarkable
personal traits
They are sharp and
expert in recruiting
talented investors
and customers
They have self-
discipline, focus,
and the ability to
structure processes.
What is the
difference between
an entrepreneur
and a business
build

6. OPPORTUNIST
• An opportunistic entrepreneur is a
person who identifies financial
opportunities, enters a business at
the right time, and exits when a
business is at its peak..
• These types of entrepreneurs are
concerned with profits and the
wealth they will build, so they are
attracted to ideas where they can
create residual or renewal
income. Because they are
looking to find well-timed
opportunities, opportunistic
entrepreneurs can be impulsive.

7. CHARACTERISTICS OF AN OPPORTUNISTIC
ENTREPRENEUR:
• Optimistic: They are hopeful and believe in
the potential of a business.
• Able to identify opportunities: They are
good at spotting financial opportunities and
getting involved when the time is right.
• Able to stay on board: They can stay involved
in a business during its growth phase.
• Able to exit when the time is right: They
know when to leave a business when it has
reached its peak.

8. INNOVATOR
• An innovator entrepreneur is someone who
creates new products or services and then turns
those ideas into businesses.
Examples:-
•Mark Zuckerberg, co-founder of Facebook
•Steve Jobs, helped create Apple
•Sergey Brin, successful innovator

9. High Openness
The Innovator is a creative and
inventive individual with a flair
for the cutting-edge.
Moderate Emotional
Stability
Innovators can handle themselves
in most tough situations, rarely
letting adversity get to them.
High Agreeableness
Considerate, kind, and
generous, Innovators are always
interested in the needs of
others.
Entrepreneurial Traits
of Innovators

10. SPECIALIST
• A specialist entrepreneur is an entrepreneur who
has a strong skill set in a specific area. They are
analytical, risk-averse, and tend to rely on tried-
and-true methods.
• How they operate:-
 They build out their business through
networking and referrals.
 They rely on the tried-and-true methods
of networking to pursue new leads.
 They measure success based on their
amount of personal income.
 They tend to become complacent as they
reach their business goals.

11. ENTREPRENEUR VS BUSINESSMAN

12. DIFFERENCE B/W BUSINESSMAN &
ENTREPRENEUR
Businessman Entrepreneur
Definition
A businessman is an individual who operates or starts a
business with the same old business idea.
An entrepreneur is an individual with an exclusive idea to
initiate and establish a new venture
Market state
Market player Market leader
Market
Makes his place in the market Creates a market
Risk factor
Less Approximately high
Procedure
Traditional/Ordinary Unconventional
Focus
Profit Employee, customer, and public
Competition
Extremely High Low

13. • In its simplest form, entrepreneurship is the
process of starting, managing, and growing a
business, often involving innovation and risk-taking
to create value and potentially generate profit.

14. TYPES
• Small Business Entrepreneurship-These
people run or own their own business and
hire family members or local employee.
For them, the profit would be able to feed
their family and not making 100 million
business or taking over an industry. They
fund their business by taking small
business loans or loans from friends and
family.
• E.g.:-Hairdresser, grocery store, travel
agent, consultant, carpenter, plumber,
electrician, etc.

15. CONTD..
• Scalable Startup Entrepreneurship- This start-
up entrepreneur starts a business knowing that
their vision can change the world. They attract
investors who think and encourage people who
think out of the box. The research focuses on a
scalable business and experimental models, so,
they hire the best and the brightest employees.
They require more venture capital to fuel and
back their project or business.

16. Large Company Entrepreneurship-
• These huge companies have defined life-cycle. Most of these companies grow and sustain by offering new
and innovative products that revolve around their main products. The change in technology, customer
preferences, new competition, etc., build pressure for large companies to create an innovative product and
sell it to the new set of customers in the new market. To cope with the rapid technological changes, the
existing organisations either buy innovation enterprises or attempt to construct the product internally.
• E.g.:- Apple and Microsoft developing new products and services, and Tata Motors creating the Tata Nano.

17. • Social Entrepreneurship-
• This type of entrepreneurship focuses on producing product and services that resolve social needs and
problems.Their only motto and goal is to work for society and not make any profits.
•E.g.:-
• Anshu Gupta (Goonj):Founder of Goonj, a social enterprise that addresses the clothing needs of the
underprivileged by transforming discarded materials into useful items for the poor, while also tackling issues
like menstrual hygiene and disaster relief.
•Sumita Ghose (Rangsutra): Founder and Managing Director of Rangsutra, a social enterprise that engages
the community and market to bring socio-economic development and growth in

18. CHARACTERISTICS OF
ENTREPRENEURSHIP:
• Ability to take a risk- Starting any new venture involves a considerable amount of
failure risk. Therefore, an entrepreneur needs to be courageous and able to
evaluate and take risks, which is an essential part of being an entrepreneur.
• Innovation- It should be highly innovative to generate new ideas, start a company
and earn profits out of it. Change can be the launching of a new product that is
new to the market or a process that does the same thing but in a more efficient
and economical way.
• Visionary and Leadership quality- To be successful, the entrepreneur should have
a clear vision of his new venture. However, to turn the idea into reality, a lot of
resources and employees are required. Here, leadership quality is paramount
because leaders impart and guide their employees towards the right path of
success.

19. CONTD.
• Open-Minded- In a business, every circumstance can be an
opportunity and used for the benefit of a company. For example,
Paytm recognized the gravity of demonetization and acknowledged
the need for online transactions would be more, so it utilized the
situation and expanded massively during this time.
• Flexible- An entrepreneur should be flexible and open to change
according to the situation. To be on the top, a businessperson should
be equipped to embrace change in a product and service, as and when
needed.
• Know your Product-A company owner should know the product
offerings and also be aware of the latest trend in the market. It is
essential to know if the available product or service meets the
demands of the current market, or whether it is time to tweak it a little.
Being able to be accountable and then alter as needed is a vital part of
entrepreneurship

20. IMPORTANCE OF
ENTREPRENEURSHIP:
• Creation of Employment- Entrepreneurship generates employment. It provides an entry-level job,
required for gaining experience and training for unskilled workers.
• Innovation- It is the hub of innovation that provides new product ventures, market, technology and
quality of goods, etc., and increase the standard of living of people.
• Impact on Society and Community Development- A society becomes greater if the employment base
is large and diversified. It brings about changes in society and promotes facilities like higher
expenditure on education, better sanitation, fewer slums, a higher level of homeownership. Therefore,
entrepreneurship assists the organisation towards a more stable and high quality of community life.
• Increase Standard of Living- Entrepreneurship helps to improve the standard of living of a person by
increasing the income. The standard of living means, increase in the consumption of various goods and
services by a household for a particular period.
• Supports research and development- New products and services need to be researched and tested
before launching in the market. Therefore, an entrepreneur also dispenses finance for research and
development with research institutions and universities. This promotes research, general construction,
and development in the economy.

21. A CONCEPTUAL MODEL OF
ENTREPRENEURSHIP
• A conceptual model of entrepreneurship provides
a structured framework for understanding the
various elements and processes involved in
starting and growing a new venture. It breaks
down entrepreneurship into key components like
opportunity identification, evaluation, planning,
and execution, highlighting the dynamic interplay
between individual, organizational, and
environmental factors

22. JOHN KAO’S MODEL ON
ENTREPRENEURSHIP
• John Kao is an author and strategic advisor based in
Connecticut. His work concentrates on issues of
innovation and organizational transformation.
• John Kao has developed a conceptual model of
entrepreneurship in his article: Entrepreneurship,
creativity and organization in 1989.
• According to Kao, the most successful entrepreneur is
one who adapts himself to the changing needs of the
environment and makes it hospitable for the growth of
his business enterprise.

23. CONTD..
1. Entrepreneurial Personality: The overall success of a new
venture largely depends upon the skill, qualities, traits and
determination of the entrepreneur.
2. Entrepreneurial Task: It is a role played by entrepreneur in an
enterprise. The major task of the entrepreneur is to recognize
and exploit opportunities.
3. Entrepreneurial Environment: It involves the availability of
resources, infrastructure, competitive pressures, social
values, rules and regulations, stage of technology etc.
4. Organizational Context: It is the immediate setting in
which creative and entrepreneurial work takes place. It
involves the structure, rules, policies, culture, human
resource system, communication system.

24. JOSEPH SCHUMPETER
• Joseph Alois Schumpeter (1883-1950) was an Austrian-trained
economist, economic historian, and author. He is regarded as one of the
20th
century's greatest intellectuals.
• Joseph Alois Schumpeter is best known for his 1942 book Capitalism,
Socialism, and Democracy, the theory of creative destruction, and for
offering the first German and English references to methodological
individualism in economics.
• Schumpeter served as minister of finance in the Austrian government,
the president of a private bank, and a professor, before being forced to
emigrate, due to the rise of the Nazi Party.
• The economist coined the term "creative destruction" to describe how
the old is being constantly replaced by the new.
• Schumpeter also introduced the concept of entrepreneurship.The Father
of Entrepreneurship
• Schumpeter’s work was initially overshadowed by the contrasting
theories of his contemporary, John Maynard Keynes, but it now has
become the centerpiece for modern thinking on how economies evolve.

25. WHY SCHUMPETER IS
CONSIDERED THE
FATHER OF
ENTREPRENEURSHIP:
•"Creative Destruction": Schumpeter's concept of "creative destruction"
describes the process where new innovations replace older ones, leading to
economic growth and development. He argued that entrepreneurs are the key
drivers of this process.
•Emphasis on Innovation: Schumpeter's work placed a strong emphasis on the
role of innovation as a central element of entrepreneurship. He believed that
entrepreneurs are not just risk-takers, but also innovators who introduce new
ideas and approaches into the market.
•Theory of Economic Development: Schumpeter's book, "The Theory of
Economic Development," laid the foundation for modern theories of
entrepreneurship and economic growth. He analyzed how entrepreneurs drive
economic cycles through innovation and disruption.
•Influence on Subsequent Scholars: Schumpeter's work heavily influenced
later economists and researchers who expanded on his theories and further
explored the role of entrepreneurship in economic development.

26. FRANCIS A. WALKER
• Walker's theory of entrepreneurship, primarily focusing on
profit, proposes that profit is essentially the "rent of
ability", akin to how land earns rent based on
fertility. American economist Francis L. Walker asserted
that just as more fertile land yields higher rent, more
capable entrepreneurs earn higher profits due to their
superior skills in organizing and coordinating factors of
production.
• “Entrepreneur is one who is endowed with more than
average capacities in the task of organizing and
coordinating the factors of production. land, labor capital
and enterprises”.

27. KEY ASPECTS
OF WALKER'S
THEORY:
Profit as Rent of Ability: Walker equated profit to a surplus
earned by entrepreneurs with exceptional abilities, distinguishing
it from mere wages of management.
Differential Ability: He argued that entrepreneurs, like lands,
vary in their effectiveness, with more efficient entrepreneurs
generating a surplus over and above the costs of production, which
is the true profit.
Marginal Entrepreneur: Under perfect competition, a "marginal
entrepreneur" with average ability would earn only normal profit
(wages of management) but no pure economic profit.
Analogy to Land Rent: The theory draws a direct parallel to the
theory of rent, where the "rent of ability" is the differential surplus
earned by superior entrepreneurs compared to the marginal
entrepreneur.
Pioneer and Captain of Industry: Walker viewed the true
entrepreneur as someone with above-average organizational and
coordinating capacities, a pioneer, and a captain of industry.

28. PETER. F. DUCKER
• Peter F. Drucker viewed entrepreneurship primarily as
systematic innovation and the purposeful exploitation of
change as an opportunity, emphasizing that it is a learned
discipline, not just a personality trait, and is crucial for
economic and social development in all types of organizations,
including established businesses. He highlighted that
successful entrepreneurs actively search for changes and
analyze the opportunities they present for innovation and value
creation, emphasizing that innovation is the specific tool of the
entrepreneur.
• Peter F. Drucker defines an entrepreneur as one who always
searches for change, responds to it and exploits it as an
opportunity.

29. KEY ASPECTS OF DRUCKER'S
VIEW ON ENTREPRENEURSHIP:
• Systematic Innovation: Drucker defined entrepreneurship as the "purposeful and organized search
for changes, and it is the systematic analysis of the opportunities such changes might offer for
economic and social innovation".
• Innovation as a Tool: He believed that innovation is the specific tool of entrepreneurs, enabling them
to exploit changes as opportunities for new businesses or services.
• Sources of Innovation: Drucker identified seven potential sources of innovation, including the
unexpected, incongruities, process needs, changes in industry structure, demographics, new
knowledge, and new market insights.
• Market Focus: Effective innovations, according to Drucker, must be market-focused and market-
driven, aiming to provide customers with what they actually need and want.
• Starting Small: Drucker advocated for innovations to begin on a small scale, requiring initially
limited resources, to allow for adjustments and changes necessary for success.
• Entrepreneurial Management: He stressed that entrepreneurial management involves fostering an
environment receptive to innovation and systematically measuring its results.
• Beyond Start-ups: Drucker's concept of entrepreneurship extended beyond new ventures to
encompass any business that actively engages in innovation and growth within established
organizations.

30. ENTREPRENEURIAL
CULTURE

31. • Entrepreneurial culture refers to the
shared values, attitudes, and practices
within an organization or society that
encourage innovation, risk-taking, and
the pursuit of new opportunities. It's
characterized by a proactive,
opportunity-driven mindset that
fosters creativity, adaptability, and a
willingness to learn from both
successes and failures.

33. CHARACTERISTICS
Innovation and Creativity: An entrepreneurial culture thrives on
generating new ideas, problem-solving, and continuous improvement.
Risk-Taking: It involves a willingness to take calculated risks and
embrace uncertainty in the pursuit of business goals.
Proactiveness: It encourages a forward-thinking approach, anticipating
market changes and responding effectively.
Resilience and Adaptability: It equips individuals and organizations to
navigate challenges, setbacks, and market fluctuations.
Networking and Collaboration: It emphasizes building strong
relationships and leveraging resources within the business ecosystem.
StrongWork Ethic and Self-Reliance: It promotes dedication,
persistence, and independence in achieving entrepreneurial success.
Results-Oriented: It focuses on achieving concrete outcomes and
rewarding success.
Openness to Change: It encourages adaptability and a willingness to
embrace new approaches.
Learning and Development: It fosters a culture of continuous learning
and improvement.

34. FOSTERING
ENTREPRENEURIAL
CULTURE:
Leadership: Strong leadership is essential for promoting risk-
taking and innovation in a supportive environment.
Open Communication: Creating an open environment where
information flows freely and feedback is encouraged.
Encouraging Idea Generation: Providing platforms for
employees to share ideas and contribute to the innovation process.
Learning from Failure: Creating a safe space for experimentation
and learning from mistakes.
Recognizing and Rewarding Success: Acknowledging and
incentivizing entrepreneurial behavior.
Providing Training and Development: Equipping employees
with the skills and knowledge needed to thrive in an
entrepreneurial environment.
Promoting Intrapreneurship: Encouraging employees to pursue
entrepreneurial initiatives within the organization.

35. TRUE
ENTREPRENEUR'S
TRAIL
• A true entrepreneur's trail is paved with vision,
resilience, calculated risk-taking, and a deep-
seated passion for their craft. They are not just
business owners; they are innovators, problem-
solvers, and leaders who relentlessly pursue their
goals despite challenges. This journey is marked
by a willingness to learn, adapt, and persevere,
ultimately leaving a lasting impact on their
industry and the world around them.

36. 1. Vision and Innovation:
• Identifying Opportunities: Entrepreneurs see
problems as opportunities and develop innovative
solutions.
• Creative Problem-Solving: They are not afraid to
think outside the box and find unique ways to address
market needs.
• Long-Term Vision: They have a clear vision for their
business and a roadmap to achieve their goals.
2. Resilience and Perseverance:
• Overcoming Challenges: The entrepreneurial path
is rarely smooth. True entrepreneurs demonstrate the
ability to bounce back from setbacks and learn from
failures.
• Tenacity and Grit: They possess the determination
to keep going, even when faced with obstacles and
criticism.
• Adaptability: They can adjust to changing market
conditions and customer demands.

37. 3. Calculated Risk-Taking:
• Weighing the Odds: Entrepreneurs are not reckless gamblers; they assess risks
carefully and make informed decisions.
• Confidence and Belief: They have unwavering belief in their abilities and their
business idea, which fuels their willingness to take calculated risks.
• Learning from Mistakes: They understand that failure is a part of the process and
use it as a learning opportunity.
4. Passion and Purpose:
• Deep-Seated Belief: They are passionate about their work and driven by a desire
to make a difference.
• Authenticity and Integrity: They are true to themselves and their values, which
builds trust and loyalty.
• Customer-Centric Approach: They prioritize the needs of their customers and
strive to provide exceptional value.
5. Leadership and Collaboration:
• Inspiring Others: They can motivate and inspire their team members to achieve
common goals.
• Building Relationships: They understand the importance of networking and
building strong relationships with customers, partners, and investors.
• Delegation and Empowerment: They know how to delegate tasks effectively and
empower their team members to take ownership.
• In essence, the trail of a true entrepreneur is a journey of passion, perseverance,
and purpose, marked by a willingness to learn, adapt, and innovate.