This document discusses entrepreneurship and provides definitions and concepts related to entrepreneurs. It defines entrepreneurs as innovators who take risks to start new businesses or introduce new products/services. It distinguishes entrepreneurs from managers and discusses the different types of entrepreneurs based on factors like the type of business or level of technology used. The document also outlines the characteristics, functions, and development process of entrepreneurship.

1. ENTREPRENEURSHIP
1
Presented by,
Asst. Prof. Sweekriti Shetty
Dept. of ISE
SCEM, Adyar,
Mangalore

2. Meaning of an Entrepreneur
•An entrepreneur is the one who always searches for changes, responds to it and
exploits it as an opportunity. -Peter Drucker
• An entrepreneur is the one who innovates, raises money, assembles inputs,
chooses managers and sets the organization going with his ability to identify
them. -Vasant Desai
2Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

3. Concept of Entrepreneurship
•Work carried out or the character showed by an entrepreneur is entrepreneurship.
•Entrepreneurship is the process of creating something new and assuming the
accompanying risk and rewards. -Robert Hisrich
3Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

4. Concept of Entrepreneurship
Entrepreneurship is a behavior that includes:
• Initiative taking
• Organizing of social and economic forces to convert resources and
situations to practical good
• The acceptance of risk or failure
4Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

5. Evolution of the concept “Entrepreneur”
• Term Entrepreneur is derived from the French word “Entreprendre” which
means “to undertake”
• Evolution
• Middle Ages – Actor or person in charge of large scale production
• 16th Century – People who organized and led military expeditions in France
• 17th Century – Person bearing the risk of either profit or loss in a fixed-price contract
with government
• 18th Century – Person who takes risk and different from the one who supplies capital
• 19th Century – Person distinct from both financier and manager
• 20th Century – Innovator and Risk taker
5Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

6. Difference between ‘Manager’ and ‘Entrepreneur’
6Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

7. Difference between ‘Manager’ and ‘Entrepreneur’
Point Entrepreneur Manager
Motive Business startup Provide service
Status Owner Employee
Risk bearing Risk taker Risk averse
Reward Profit Salary
Innovation Change agent
Works and execute plans
prepared by entrepreneur
Qualification No formal qualification need Formal qualification preferred
7Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

8. aFunctions of Entrepreneur
3 Categories
1. Entrepreneur as an Innovator
2. Entrepreneur as a Risk Taker
3. Entrepreneur as an Organizer
8Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

9. aFunctions of Entrepreneur
Entrepreneur as an Innovator – 5 Functions
• Introduction of new product in the market
• Introduction of new method of production
• Opening of new market
• Discovery of new source of supply of raw materials
• Carrying out a new form of Organization
9Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

10. aFunctions of Entrepreneur
Entrepreneur as a Risk Taker– 5 Functions
• Assumes all possible risks of business
• Buys all what is necessary to make finished goods
• Has to bear uncertainty
• Tries to reduce risk by combining experience, foresight and professional help
• Tries to reduce uncertainties by his initiative skill and good judgment
10Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

11. aFunctions of Entrepreneur
Entrepreneur as an Organizer – 3 Functions
• Raise sufficient capital
• Plan, delegate and execute all facets of business
• Manage and distribute his profits wisely
11Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

12. Characteristics of Entrepreneur
12Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

13. E
U
R
E
N
T
R
E
P
R
E
N
Effective
Communicator
Characteristics of Entrepreneur
13Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

14. N
R
E
U
T
R
E
P
R
E
N
E
Negotiating skills
Characteristics of Entrepreneur
14Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

15. T
E
N
R
R
E
P
R
E
N
E
U
Total Commitment
Time Management
Tactical
Team man
Characteristics of Entrepreneur
15Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

16. R
N
T
E
E
P
R
E
N
E
U
R
Risk taking ability
Responsible
Resourceful
Characteristics of Entrepreneur
16Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

17. E
T
R
N
P
R
E
N
E
U
R
E
Emotional Stability
Ethical
Characteristics of Entrepreneur
17Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

18. P
R
E
T
R
E
N
E
U
R
E
N
Problem Solving
Patience
Passion
Perseverance
Characteristics of Entrepreneur
18Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

19. R
E
P
R
E
N
E
U
R
E
N
T
Relations
Realistic
Result oriented
Characteristics of Entrepreneur
19Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

20. E
P
R
E
N
E
U
R
E
N
T
R
Energetic
Endurance
Characteristics of Entrepreneur
20Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

21. N
R
E
P
E
U
R
E
N
T
R
E
Networking Ability
Characteristics of Entrepreneur
21Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

22. E
E
N
R
U
R
E
N
T
R
E
P
Excellence in
‘Economics’
Characteristics of Entrepreneur
22Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

23. U
N
E
E
R
E
N
T
R
E
P
R
Understands how to
administer and organize
Unambiguous
Characteristics of Entrepreneur
23Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

24. R
E
U
N
E
N
T
R
E
P
R
E
Real Innovator
Characteristics of Entrepreneur
24Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

25. Types of Entrepreneur
Classified based on some criteria
• According to the stages of Economic development
• According to the types of business
• According to the use of technology
• According to area
• According to gender and age
25Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

26. Types of Entrepreneur - According to the stages of Economic development
1. Innovative Entrepreneur
• New product, new technique, new market, re-organize the organization
• Aggressive in experimentation and seize opportunities
• Convert possibilities into practice
• Raise money to start an enterprise, choose employees
26Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

27. 2. Imitative entrepreneur or Adoptive entrepreneur
• Adopt or copy successful entrepreneur
• Imitate techniques, technology etc
• Found in developing countries
27Sweekriti Shetty, Dept. of ISE, SCEM, Adyar
Types of Entrepreneur - According to the stages of Economic development

28. 3. Fabian Entrepreneur
• Very cautious and skeptical about any changes
• Do not introduce changes or adopt new methods innovated by others unless
pushed to the wall
• Driven by custom, religion, tradition and past practices
• Then bring in changes only when it’s the question of survival
28Sweekriti Shetty, Dept. of ISE, SCEM, Adyar
Types of Entrepreneur - According to the stages of Economic development

29. 4. Drone Entrepreneur
• Highly resistant to changes
• Refuse adopt, imitate or make changes in production methods
• Choose to sink rather than imitate or bring in changes
• May even suffer from loss but prefer to stick to traditional ways
29Sweekriti Shetty, Dept. of ISE, SCEM, Adyar
Types of Entrepreneur - According to the stages of Economic development

30. Types of Entrepreneur – According to types of Business
Business Entrepreneur Trading entrepreneur
30Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

31. Industrial Entrepreneur Corporate Entrepreneur
31Sweekriti Shetty, Dept. of ISE, SCEM, Adyar
Types of Entrepreneur – According to types of Business

32. Agricultural entrepreneur Retail entrepreneur
32Sweekriti Shetty, Dept. of ISE, SCEM, Adyar
Types of Entrepreneur – According to types of Business

33. Service Entrepreneur
33Sweekriti Shetty, Dept. of ISE, SCEM, Adyar
Types of Entrepreneur – According to types of Business

34. Types of Entrepreneur – According to the use of Technology
• Technical Entrepreneur
• Non technical Entrepreneur
• Professional Entrepreneur
• High-tech Entrepreneur
• Low-tech Entrepreneur
34Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

35. Types of Entrepreneur – According to the area
Urban Entrepreneur Rural Entrepreneur
35Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

36. Types of Entrepreneur- According to gender and age
Men Entrepreneur Women Entrepreneur
36Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

37. Intrapreneurs – an emerging class
Gifford Pinchot – III
Large corporations should create smaller systems within the
organization and allow certain executives to operate like
entrepreneurs.
37Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

38. Intrapreneurs – an emerging class
• Ambitious executives should be provided with adequate financial resources
and autonomy necessary for the development and applications of their ideas
• Intra-corporate or intrapreneurs would introduce new products, services and
processes which enable the company to grow and succeed in a changing
environment
38Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

39. Difference between Entrepreneur and Intrapreneur
ENTREPRENEUR INTRAPRENEUR
An Entrepreneur is an independent
business man
An Intrapreneur is a semi independent
business man
He bears full risks of the business he
develops and operates
He does not fully bear the risk of the
business he operates
He himself raises the necessary capital
from various sources and guarantees its
return to the suppliers
He neither raises the capital himself nor
guarantees any return to the suppliers
He operates from outside the organization He operates from within the organization
An Entrepreneur might find it difficult to
totally withdraw from his business
An Intrapreneur finds t relatively easier to
totally withdraw from his business
39Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

40. Development of Entrepreneurship
4 Stages
1. Identification and evaluation of the business opportunity
2. Development of the business plan
3. Determination of the resources required
4. Creation and actual management of the enterprise
40Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

41. Identification and evaluation of the business opportunity
• Identify opportunities and possibilities that arise in the market from
time to time
• Should analyze
• Real and perceived value of opportunities
• Risk and returns of opportunities
41Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

42. Development of the business plan
• Description of the future direction of business
• Formulates all plans with respect to marketing, finance, production,
organization and operations.
42Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

43. Determine the resources required
Good idea about various resources required with respect to the quality,
quantity, prices and sources.
43Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

44. • Should be aware of legal and practical hurdles
• Should anticipate potential problems and possible solutions
Creation and actual management of the business
44Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

45. • Create business organization by mobilizing the savings of public
• Provide large scale employment
• Promote industrialization in local areas
• Equitable distribution of wealth and income
• Reduce over dependence on agriculture by rural people
• Reduce concentration of wealth in few hands
• Encourage learning and usage of skills
• Increase Forex reserves of the country by exporting their goods and services
• Are Change agents
• Become icons and inspire whole new breed of young entrepreneurs
Role of Entrepreneur in Economic Development
45Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

46. • Metal Handicrafts
• Kharkhanas, Guilds – associations that produce and sell handicrafts and other
goods
• Indian handicrafts like Corah (Bengal), Dupattas and dhotis (Ahmedabad),
Chintzes (Lucknow), Shawls(Kashmir), Metalware (Varanasi) so on have
enjoyed world wide reputation
Entrepreneurship in India
46Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

47. • In modern era, first trace of entrepreneurship was seen during the domination
of British East India Company. Parsi entrepreneurs like Lowjee-Nushirwan
and Manjee Dhanjee built ships and produced gun powder
• Ranchod Lal Chotalal – first Indian to think of setting up textile
manufacturing unit in 1847. Succeeded in 1861
• Cowasjee Nanaghoy Davar- Started textile mill in Bombay in 1854
Entrepreneurship in India
47Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

48. • Jamshedjee Tata – established first steel industry in Jamshedpur in 1911
• Birla family – established jute mill in 1919
• The Swadeshi Campaign – gave first wave for entrepreneurial activity in
India
• Indian entrepreneurs could not succeed because of high taxes, low
productivity, black market, monopolies etc.
Entrepreneurship in India
48Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

49. • Dhirubai Ambani and Karsanbhai Patel – overcame many obstacles to saw the
seeds for their empire
• After 1991, Azim Premji, N.R. Narayana Murthy, Subhash Chandra etc came
on scene
• In 21st century, Indian Entrepreneurs are conquering the world
Entrepreneurship in India
49Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

50. • Environmental barriers
• Financial barriers
• Personal barriers
• Societal barriers
Barriers to Entrepreneurship
50Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

51. Environmental Barriers
RAW MATERIALS
LAND,BUILDING
INFRASTRUCTURE
MACHINERY
LABOUR
51Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

52. Financial Barriers
52Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

53. Personal Barriers
Lack of Self-confidence
Inability to invest and innovate
Lack of Motivation
Lack of Patience
53Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

54. Societal Barriers
54Sweekriti Shetty, Dept. of ISE, SCEM, Adyar

55. 55Sweekriti Shetty, Dept. of ISE, SCEM, Adyar
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