The document discusses the concept of entrepreneurship from various perspectives. It defines entrepreneurship as the purposeful activity of initiating, maintaining or expanding a profit-making enterprise through risk-taking and innovation. The document also discusses different types of entrepreneurs, including innovative, imitative, and risk-averse entrepreneurs. Key characteristics of entrepreneurs are identified as risk-taking, innovativeness, motivation, and managerial skills.

1. Entrepreneurship - Misconceptions
• Successful entrepreneurship needs only a
great idea.
• It is easy.
• It is a risky gamble.
• It is found only in small business.
• Entrepreneurial ventures and small
business is the same thing.
• Entrepreneurship cannot be developed.

2. Entrepreneurship is:
• A multi-dimensional concept
• A purposeful economic activity.
• A dynamic and risky process.
• A fusion of capital, technology and human
intellect.

3. Entrepreneurship is:
• HIGGINS: Entrepreneurship is the function
of seeking investment and production
opportunity, organizing an enterprise to
undertake a new production process,
raising capital, hiring labor, arranging the
supply of raw materials, finding site,
introducing a new technique and
commodities, discovering new sources of
raw materials and selecting top managers
for day-to-day operations of an enterprise.

4. Entrepreneurship is:
• A.H.COLE: Entrepreneurship is the
purposeful activity of an individual or a
group of associated individuals,
undertaken to initiate, maintain or
aggrandise profit by production or
distribution of economic goods and
services.

5. Distinctive Features of
Entrepreneurship
• Innovation
• Motivation
• Risk Taking
• Organizing Building
• Managerial Skills and Leadership

6. Concept of Entrepreneur
• Derived from French word entreprendre
which means to initiate or undertake.
• Now the word is used to indicate one who
is risk taker, organizer and innovator.
• Richard Cantillon: “Entrepreneur is an
agent who buys factors of production at
certain prices in order to combine them
into a product with a view to selling it at
uncertain prices in future.”

7. Concept of Entrepreneur
• Knight: “Entrepreneur is the economic
functioning who undertakes such
responsibility of uncertainty which by its
very nature cannot be insured nor
capitalised nor salaried too.”

8. Concept of Entrepreneur
• JEAN-BAPTISTE SAY: “An entrepreneur
who combines the land of one, labor of
another and capital of yet another and
produces a product. By selling the product
in the market, he pays interest on capital,
rent on land, and wages to labor. What
remains is his profit. He has to surmount
obstacles, suppress anxieties, repair
misfortunes and device expedients.”

9. Concept of Entrepreneur
• New Encyclopedia Britannica:
“Entrepreneur is an individual who bears
the risk of operating a business in the face
of uncertainty about the future conditions.”

10. Concept of Entrepreneur
• Joseph A. Schumpeter: “Entrepreneur is an
individual who introduces something new in the
economy – a method of production not yet
tested by experience in the branch of
manufacture concerned, a product with which
consumers are not yet familiar, a new source of
raw material or of new markets and the like.”
• “Entrepreneur are creative disrupters. Those
who bring resources together in an unusual
situations to generate profits.

11. Concept of Entrepreneur
• Peter F. Drucker: “Entrepreneur is one
who always searches for changes,
responds to them and exploits them as an
opportunity.”
• The entrepreneur uses resources not
merely to solve problems but also to take
advantage of opportunities.

12. Concept of Entrepreneur
• Karl Vesper: “Entrepreneurs are
achievement oriented individuals driven to
seek challenges and new
accomplishments.”

13. WHO IS AN ENTREPENUER
• Entrepreneur are doers and not thinkers.
• They do unexpected things.
• Often adventurers, they can at once
disrupt a society and instigate progress.
• They are change agents of progressive
societies.
• They are the movers and shakers who
constructively disrupt the status quo.

14. Types of Entrepreneurs
• Joseph A. Schumpeter: Talks of
adventurous entrepreneur – one who acts
on his own account, introduces changes
that others do not dare to experiment with.
• Arthur H. Cole: i) Empirical Entrepreneur
– one who hardly introduces anything
revolutionary as follows the rule of thumb.
ii) Rational entrepreneur – one who is well
– informed about the general economic
conditions and introduces changes that
look more revolutionary.

15. Concept of Entrepreneur
iii) Cognitive Entrepreneur: One who is well-
informed, draws upon the advices and
services of experts and introduces
changes that reflect complete break from
the existing frame of things.

16. CLARENCE DANHOF classifies
as:
i. Innovative Entrepreneur: Aggressive
and industrial leader, he introduces new
products, new methods, new methods of
production, opens new markets and
reorganises the enterprise.
ii. Imitative or Adoptive Entrepreneur:
He imitates innovations done by others.
CDChin Shipyard used technology
provided by Mitsubishi Heavy industries,
Japan.

17. CLARENCE DANHOF classifies
as:
iii. Fabian Entrepreneur – cautions,
skeptical, shy, lazy. No will or desire. No
risk but follows footsteps of
predecessors, is guided by custom,
tradition, past practices.
iv. Drone Entrepreneur: Laggard- refuses
to adopt and use opportunities. He may
even be pushed out of market when
product marketability.

18. Some of other Types of Entrepreneurs
• Nascent Entrepreneur: An individual who is in
the process of starting a new business.
• Novice Entrepreneur: An individual who has no
previous business experience as a founder
inheritor.
• Habitual Entrepreneur: An individual who has
prior ownership experience.
• Serial Entrepreneur: An individual who has sold
or closed an original business, established
another new business, sold and closed it, and
continues that cycle of entrepreneurial
behaviour.

19. Some of other types of
Entrepreneurs
• Portfolio Entrepreneur: An individual who
retains an original business and builds a
portfolio of additional businesses through
inheriting, establishing or purchasing
them.

20. Entrepreneurial Values
• Values are the inner most layer of the self
which provide goal and direction to an
individual.
– Innovativeness
– Independence
– Outstanding Performance
– Respect for work

21. Entrepreneurial Attitude
Tendencies to act in response to stimulus is
called attitude.
• Tendency to take moderate risk.
• Imaginative
• Initiative
• An eye for economic activity
• Belief that he can change the environment
• Enjoyment of freedom of expression
• Analysis of situation and planning Action
• Satisfaction from successful completion of task.