This document is a PowerPoint presentation on the concept and functions of entrepreneurship. It contains definitions of entrepreneurship, outlines the functions of an entrepreneur which include entrepreneurial functions like innovation and risk-taking, promotional functions such as discovering ideas and financing, and managerial functions such as planning, organizing, and controlling. It also discusses the commercial functions of an entrepreneur and common myths about entrepreneurship. The presentation provides an overview of the key topics and concepts related to entrepreneurship.

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Important Instruction
This ppt is only for revision purpose and needs to be supplemented
with NCERT book for examination purpose.
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Hemalatha Annamalai Falguni Nayar Aditi Gupta Kiran Mazumdar Shaw
Ampere Electric Nykaa Menstrupedia Biocon India
Vani Kola Radhika Agarwal Suchi Mukherjee
Kalaari Capital Shopclues Limeroad
https://indiansch
oolofimage.com/
2022/03/05/7-
top-women-
entrepreneurs-
in-india-who-
will-inspire-you/

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SYLLABUS OF ENTREPRENEURSHIP
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XI : 2022-23
CHAPTER 01
CONCEPT AND FUNCTIONS
BY HENNA PUNJABI
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Definition of entrepreneur
• Adam Smith: An individual, who undertakes the formation of an
organization for commercial purposes by recognizing the potential
demand for goods and services, and there by acts as an economic
agent and transforms demand into supply.
• Joseph Schumpter: Entrepreneurs are innovators, who use the
process of entrepreneurship to shatter the status quo of the existing
products and services, to set new products, new services. He
describes entrepreneurs as innovators.

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ENTREPRENEUR,
ENTREPRENEURSHIP &
ENTERPRISE
Entrepreneur Entrepreneurship Enterprise
Person Process or
Action
Outcome
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What is an Entrepreneur ?
• Develops and owns his own
enterprise.
• Is a moderate risk taker and
works under uncertainty for
achieving the goal.
• Is innovative.
• Is a persuader of deviant pursuits.
• Reflects a strong urge to be
independent.
• Persistently tries to do something
better.
• Is dissatisfied with routine activities.
• Is prepared to withstand the hard
life.
• Is determined, but patient.
• Exhibits a sense of leadership.
• Exhibits a sense of competitiveness.
• Takes personal responsibility.
• Is oriented towards the future.
• Tends to persist in the face of
adversity

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The bamboo shoot story
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FUNCTIONS OF AN ENTREPRENEUR
Function of an
Entrepreneur
Entrepreneurial
Functions
Promotional
Functions
Managerial
Functions
Commercial
Functions

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ENTREPRENEURIAL FUNCTIONS
Entrepreneurial
Functions
Innovation RiskT
aking
Organisation
Building

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INNOVATION
• New combinations of the means of
production
• New product
• New market for a product
• New sources of raw material.
• Example: I-Pod, Smart phones, Induction cook
top etc.

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RISK TAKING
• Takingresponsibility for aloss
• reduces uncertainty in his/her plan of investment,
diversification of production and expansion of the
enterprise.
• Dhirubhai was flown to Jamnagar and shown a piece of
barren land, he asked why mangoes could not be
grown there.
• After just a few years, the entire land of about 2000
acres had been converted green and 6000 tonnes of
mango crop was harvested from the same land.

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ORGANISATION BUILDING
• Bringing together of the various factors of
production.
• Minimise losses and reduce costs in
production.
• Determines the lines of business to expand and
capital to employ.

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PROMOTIONAL FUNCTIONS
Promotional
Functions
Discovery of
an Idea
Detailed
investigation
Assembling
the
requirements
Financing the
proposition

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Discovery of an Idea
• An entrepreneur visualizes opportunities
• Exploit new areas of natural resources
• More profitable venture, or an existing line of
business.
• Once convinced, will go ahead with more
exhaustive analysis.
• E.g.KarsanbhaiPatel

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Detailed investigation
• Estimate the total demand for the product.
• Arranging finances, power, labour, raw materials and
machinery.
• The work of estimation becomes complicated if it is a
new line of business.

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Assembling the Requirements
• Persuades some more people to join him.
• Acquire some patent rights
• Selects the factory site, plant and machinery
and manages raw material.
• Preliminary contracts are finalised and project
is set to begin.

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Financing the proposition
• Capital structure of the enterprise.
• Requirements of finances are estimated first
• Sources from which money will come up are
determined.
• Long term and short term (both)
• For example, when Narayana Murthy started
Infosys in 1981, he had no capital and his wife
Sudha Murthy gave him Rs. 10,000/- which she
had saved for a rainy day.

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MANAGERIAL FUNCTIONS
Managerial
Functions
Planning Organising Staffing Directing
Leadership Communication Motivation Supervision
Co-ordinating Controlling

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PLANNING
• Basicmanagerial function
• Determines the course of action
• It is decision making in advance :
- what to do,
- when to do,
- how to do and
- who will do a particular task.

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ORGANISING
• An enterprise needs the service of a
number of persons
• The function of organising is to
arrange, guide, co-ordinate, direct and
control the activities

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STAFFING
• It involves making appointments for the
positions created.
• It is concerned with the human resources
• It consists of human resources, manpower
planning, recruitment, selection and placement
of manpower, human resource development,
promotion, transfer, appraisal and
determination of employees' remuneration.

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Directing
Leadership Communication Motivation Supervision
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DIRECTING
• carrying out the desired plans.
• organised and planned action
• ensures effective performance
by subordinates

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LEADERSHIP
• an entrepreneur imaginatively directs/guides and
influences the work of others
• mediates between the individual and organisation in
such a manner that both get the maximum satisfaction.
• He aligns individual goals with the organizational goals.

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COMMUNICATION
• It is observed to be the most prevalent
problem among entrepreneurs today
.
• It has been established that entrepreneurs
spend 75% to 90% of their working time
communicating with others.
• It refers to the exchange of ideas, feelings,
emotions, knowledge and information
between two or more persons.

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MOTIVATION
• Psychological process of creating an urge
among the subordinates to do certain things
or behave in the desired manner.
• Performance of a worker depends upon
his/her ability and the motivation.
• A sound motivational system must be
productive, competitive, comprehensive and
flexible.
• It must consider the psychological, social,
safety, ego and economic needs of the worker.

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SUPERVISION
• After issuing instructions, the entrepreneur
has to see that the given instructions are
carried out.
• Supervision refers to the job of overseeing
subordinates at work to ensure the maximum
utilisation of resources, to get the required
and directed work done, and to correct the
subordinates whenever they go wrong.

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COORDINATION
• channelize the activities of various
individuals in the organization
• achievement of common goals
• work of different segments as per pre-
determined targets
• corrective measures for deviation.

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CONTROLLING
• enables the entrepreneur to get his / her company’s policies
implemented
• take corrective action if performance is not according to the
predetermined standards.
• The process begins with establishing standards of performance
• measuring actual performance
• comparing the actual performance with the standard
• finding variations and finally, taking corrective action.

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COMMERCIAL FUNCTIONS
Commercial
Functions
Production Marketing Personnel Accounting Finance

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PRODUCTION
• The activities of production are independent of the
size of the undertaking.
• one person may be undertaking this function whereas,
in large organisations, this activity may be undertaken
by various individuals or separate teams.
• It is the creation of goods and services.
• It consists of manufacturing, ancillary and
advisory activities.

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FINANCE
• It starts with the setting up of an
enterprise
• The development and expansion of
an enterprise
• analyse into the various sources of
finance and appropriately arrange
for them.

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MARKETING
• movement of goods and services from
the producer to the ultimate consumer.
• satisfaction of consumer wants.
• promotes the well-being of the business
enterprise.
• Strategically place his company in an
advantageous position to secure the top
position in the market.

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PERSONNEL
This function is concerned with employment, compensation
and development for the personnel. Provisions of working
conditions welfare measures to maintain a good work force in
the organisation.

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ACCOUNTING
• A systematic recording of transactions of
an enterprise and the financial position
of the enterprises.
• The entrepreneur should look into the
record keeping of the entries of all
transactions which take place in the
organisation so that he/she is aware of
his/her financial position.

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Myths of
Entrepre-
neurship
1.
Starting a
business is
easy 2.
It takes a lot
of money to
finance a
new
business
3.
Start-ups
can’t be
financed
with debt
4.
Banks
don’t lend
money to
start-ups
5. Most
entrepreneu
rs start
businesses
in attractive
industries
6. The growth of a
start-up depends
more on an
entrepreneur’s
talent than on the
business he
chooses
7. Most
enterprises
are
successful
financially
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Need For Entrepreneurship
1. Life-line of a
nation
2. Provides
innovation
3. Change of
growth / Inclusive
growth
4. Increased
profits
5. Employment
opportunities
6. Social
Benefits

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Advantages of Entrepreneurship
1. Excitement
2. Originality
3. Independence
4. Rational
Salary
5. Freedom

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Disadvantages of Entrepreneurship
1. Salary
2. Less
Benefits
3. Work
Schedule
4. Administration
workload
5. Incompetent
staff

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Process of Entrepreneurship
Self-discovery
Identifying opportunities
Generating and Evaluating ideas
Planning
Raising start-up
capital
Start-up
Growth
Harvest
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