Introduction-Entrepreneurship

1. Introduction
Entrepreneurship
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Frederick-Kuratko-Hodgetts-Entrepreneurship

2. Entrepreneurship
“Entrepreneurship is a dynamic process of creating incremental wealth. This wealth is created by individuals who assume
the major risks in terms of equity, time, and /or career commitment of providing value for some product or service. The
product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by
securing and allocating the necessary skills and resources.”
(Robert Ronstadt,1984)
 Entrepreneurship and Management
Both terms are overlapped to a certain extent. Accordingly the entrepreneurship is more –opportunity driven and
management is more resource and conservation driven.
 Entrepreneurship is an Integrated Concept that permeates an individual business in an innovative manner, this mindset
has revolution the way business is conducted in every level in every country.
 Evolution of entrepreneurship
 RichardCantillon (1755) : An essay of economic theory
 J B Say (1803) : Entrepreneurs are leaders
 Alfred Marshell (1842-1924) : Factors of Production (Land, Labour,Capital & organization)
 Frank Knights (1885-1972) : "RiskTaking "CentralCharacteristics of Entrepreneurship
 Joseph Schumpeter (1883-1950) : Entrepreneur is a innovator who develops hitherto untried technologies,The theory of economic development‟
 Gifford Pinchot (1983) : Intrapreneur is an Entrepreneur
 Robert Hisrich (1985) : “creating something new with value by devoting necessary time and effort,
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Frederick-Kuratko-Hodgetts-Entrepreneurship

3. Entrepreneurs
Derived from the French word „entreprendre’, meaning ‘to Under take’,
which refers to individual who is active, who get things done, meaning those who undertook the risks of new
enterprise. (Holt, 2008).
 Characteristics: Personal Initiatives, Ability to consolidate Resources, a desire of autonomy, risk taking,
Aggressive, Competitiveness, Goal oriented, Opportunistic behavior, ability to learn from mistakes and
employ human relation skills & etc.
 Myths: Entrepreneurs are born not made, Entrepreneurs are doers not Thinkers, Entrepreneurs are
academic and social misfits, Entrepreneurs must fit the profile, All entrepreneurs need is luck, All
entrepreneurs need money and etc.
 Types: Seniorpreneur, Copreneur, Business entrepreneur, Social entrepreneur & Etc.
 Rewards: Make money (profit), Be your own boss (Independence), Enjoy a Satisfying Life (Personal
fulfillment)
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Frederick-Kuratko-Hodgetts-Entrepreneurship

4. Approaches to Entrepreneurships
Schools of entrepreneurial thoughts
As stated by Kuratko et al. (2004), range of entrepreneurial behavior divides entrepreneurship into specific activities.
i. Macro Views : Exhibit a strong external locus of control.
 The environmental school of thought: deals with the external factors that affect a potential entrepreneur's life styles.
 Financial/Capital school of thought: deals with the capital seeking process.
 Displacement School of thought: focuses on group phenomena.
ii. Micro Views : Internal locus of control.
 Entrepreneurial trait school of thought: Identify the common traits for successful entrepreneurship.
 Venture opportunity school of thought: Focuses on the opportunity aspect of venture development.
 Strategic Formulation school of thought: Emphasizes the planning process in a successful venture.
Entrepreneurs Vs Small Business Owners
 Entrepreneurs : Focus their efforts on Innovation, Profitability & sustainable growth.
 Small Business Owners :Manage their business by expecting stable sales, Profit & Growth.
Entrepreneurships challenges
Knowledge gap between the developed, emerging, frontier and under developed markets for conducting business, Difference in accounting
systems in several countries, Language barriers, Communication gaps and etc.
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Frederick-Kuratko-Hodgetts-Entrepreneurship

5. THANK YOU !
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Frederick-Kuratko-Hodgetts-Entrepreneurship