Académique Documents
Professionnel Documents
Culture Documents
Course Contents
Overview of Entrepreneurship (nature,
definition, role,.)
Entrepreneurial and Entrepreneurial Mind
(Entrepreneurial Process, Entrepreneurial
decision making, Climate)
Environment for Entrepreneurship)
Creativity and Business Idea
Business development plan for a new
venture
Managing Early Growth and challenges
Books
Text Books
As per the syllabus
References Books
Thaneshwor Gautam and Bal Ram
Bhattarai: Entrepreneurship and
small business management (buddha
publication)
Development of Entrepreneurship
Development of Entrepreneurship
Early period:
An early example of the earliest definition of an
entrepreneur as go between is Macro Polo would sign a
contract with a money person to sell his goods .
Middle age:
In the middle ages, the term entrepreneur was used to
describe both actor and a person who managed large
production projects.
In such large production projects, this individual did not take
any risks but merely managed the project using the
resources provided usually by the government of the country.
Development of Entrepreneurship
17th century;
The reemerging connection of risks with entrepreneurship
developed in the 17th century, with an entrepreneur being
a person who entered into a contractual arrangement with
the government to perform a service or to supply
stipulated products. Since the contract price was fixed,
any resulting profits or losses were the entrepreneur's.
18th century;
In the 18th century, the person with capital was
differentiated from the one who needed capital. In other
words, the entrepreneur was distinguished from the
capital provider. One reason for this differentiation was
the industrialization occurring throughout the world.
Development of Entrepreneurship
19th and 20th century:
In that century entrepreneurs were frequently not
distinguished from managers and were viewed mostly
from an economic perspective. Briefly stated, the
entrepreneur organizes and operates and enterprise for
personal gain. He pays current prices for the materials
consumed in the business for the use of the land for
personal services he employs and for the capital he
requires. He contributes his own initiative, skill and
ingenuity, in planning, organizing, and administering
the enterprise. He also assumes the chanced of loss
and gain consequent to unforeseen and uncountable
circumstances.
Development of Entrepreneurship
Entrepreneurship
Meaning of Entrepreneurship
Entrepreneurship is the process of creating
something different with value by devoting
the necessary time and effort, assuming the
accompanying risks and receiving the
resulting rewards. creates employment
opportunity for others.
It is the process of creating new ventures.
It begins with an innovative idea.
It identifies opportunities.
It requires assumption of risks and rewards.
It brings together resources.
Entrepreneurship
According
to
Peter
Drucker
"Entrepreneurship is gathering and
using resources to produce result and
it
is
allocating
resources
to
opportunities
rather
than
to
problems.
Entrepreneur:
Entrepreneur:
It is originated by French word
enterprendrewhich
means
to
undertake responsibility. It refers to
corporate entrepreneur. It is a person
within the large organization who
handles new ventures based on
innovation. Entrepreneurs perform
the functions of entrepreneurship
Definitions of Entrepreneur
An entrepreneur is the agent who
buys means of production at certain
prices in order to combine them into
a product that he is going to sell at
prices that are uncertain at the
moment at which he commits himself
to his costs.- Cantillon
The entrepreneur is the economic agent
who unites all means of production.the
labor force of the one and the capital or
the land of the others and who finds in the
value of products his results from their
employment reconstitution of the entire
An entrepreneur as an individual
who bears the risk of operating a
business in the face of uncertainty
about the future conditions. The
New Encyclopedia Britannica
Entrepreneurs innovate. Innovation
is the specific instrument of
entrepreneurship. It is the act that
endows resources with a new
capacity to create wealth. Innovation,
indeed creates a resource- Peter F.
Drucker
Entrepreneurial
Characteristics
1. Change Agent:
. An entrepreneur is expected to work as a change
agent.
. The entrepreneur is a catalyst for change.
. He should be alert to the signs that change is needed.
. Both external and internal forces can act on the
entrepreneurial organization, just as they do on other
organizations.
. The complex and uncertain environment can create
the need to change.
. Entrepreneur is the person who recognizes the need
for change and directs it. Whenever a particular need
to change is recognized the entrepreneur becomes
the key person to initiate that change.
2. Self Confidence:
Entrepreneurs should have confidence in their
abilities to make both strategic and day-today decisions regarding technical matters,
marketing and overall business strategy.
They should also feel capable of overcoming
any future unanticipated problem.
Since entrepreneur is to work as cheerleader
and coach while implementing change, he
requires capability to overcome any resistance
to change.
Actually overcoming any resistance to change
requires intense interpersonal efforts and
support.
3. Energy Level:
To be successful, a new venture
requires hard work and dedication.
In practice, success of an
entrepreneur needs the ability to
work for long hours in completing the
task before him.
Entrepreneurs need an unusually
high energy level in order to meet
the demands of launching and
running a business.
4. Level of Risk:
The entrepreneur assumes risk.
Entrepreneurs shift resources from areas of low
productivity and yield to areas of higher
productivity and yield.
Of course, there is a risk they may not succeed.
But if they are even moderately successful, the
returns should be more than adequate to offset
whatever risk there might be.
Thus, entrepreneurs are typically characterized
as risk takers. Successful entrepreneurs
actually tend to take moderate risk rather than
little risk or excessive risk.
Functions of An
Entrepreneur
1. Innovation:
. Innovation means doing the new things or
doing of things that are already being
done in a new way.
. Innovation is the process of doing new
things.
. However, there is distinction between
creativity and innovation. Creativity is the ability
to bring something new into existence.
. Innovation is the
but creativity is a
prerequisite to innovation.
into useful applications
2. Risk-Taking:
The risk is the condition of not knowing the outcome of
an activity or decision.
Risk is capable of being evaluated for
relative probabilities.
Risk bearing means provision for capital in order
to enable the entrepreneur to establish and
operate the business.
Economists like Cantillon, J.B.Say and others
stressed risk taking as the specific function of an
entrepreneur.
Entrepreneur is required to reduce uncertainty in
his investment strategies by initiating expansion
and diversification programs in the enterprise.
4. Business Decision:
Arther H. Cole described an entrepreneur as a decision
maker.
The decisions with regard to what to produce, how to
produce and for whom to produce are to be taken by
the entrepreneur himself.
Prof. Cole described the functions of an entrepreneur
as:
The determination of those objectives of the enterprise
and the change of those objectives as conditions
required or made advantageous.
The development of an organization including efficient
relations with subordinates and all employees.
The securing of adequate financial resources, the
relations with existing and potential investors.
Types of Entrepreneurs
1.
2.
3.
4.
Innovative Entrepreneurs
Imitating Entrepreneurs
Fabian Entrepreneurs
Drone Entrepreneurs
Innovative Entrepreneurs:
. They are characterized by effective assemblage of
information and the analysis of results originated
from different set of combinations.
. According to Schumpeter, innovative entrepreneurs
are those who may raise money to launch an
enterprise, assemble the various factors, select top
executives and set the organization operational.
Imitating Entrepreneurs:
These entrepreneurs are those entrepreneurs
who are unable to innovate the changes
themselves but they are capable enough to
imitate the techniques and technology innovated
by innovating entrepreneurs.
These entrepreneurs are always ready to adopt
successful innovation executed by innovating
entrepreneurs as there is little involvement of
huge capital expenditure in this process.
Developing economies or underdeveloped
economies need this type of entrepreneurs.
Prospective entrepreneur of these nations prefer
to imitate the technology, knowledge and skill
developed by innovating entrepreneurs.
Fabian Entrepreneurs:
These entrepreneurs are shy and lazy in their working.
Their dealings are guided by the customs, religion,
tradition and past practices.
Actually, Fabian entrepreneurs are always conscious
in their dealings and believe in initiating any change.
They do not have any will power to initiate new
changes as well as lack desire to adopt new methods
innovated by innovating entrepreneurs.
They always believe in tested routes of production
and not interested in taking risk.
Actually they are habitual of following the paths
directed by earlier entrepreneurs.
They avoid in taking challenges in production system
and that is why they are unable to maximize the
fruits of entrepreneurial actions.
Drone Entrepreneurs:
These entrepreneurs are those who are not inclined
to bring changes in their production system as
demanded by the change in consumer preferences,
technological innovation, economic and social
behavior of the prospective customers.
Market always provides opportunities to the
entrepreneurs but this type of entrepreneurs
generally fail to use these opportunities in profitable
way. Due to this reason they fail to earn profit or
even suffer loss.
They are traditional in their approaches and do not
make changes in production methods.
They generally risk their identity as their product
loses marketability and at the end uneconomic or
unviable operation pushes them out of the market.
Entrepreneur
Entrepreneurship
1. Refers to an individual.
1. Refers to a process.
2. It is a creator.
2. It is creation.
3. It is a visionary.
3. It is vision
4. It is an innovator.
4. It is innovation.
5. It is a risk-bearer.
5. It is process of risk-bearing.
6. It is a motivator.
6. It is motivation.
7. It is an organizer.
7. It is organization.
8. It is a leader.
8. It is leadership.
9. It is an imitator.
9. It is imitation.
Intrapreneur
Intrapreneur:
Takes
Fixed
Entrepreneur
Uncertain / independency
creates new venture
Owner
Bear all risks
fixed salary or
works in the
Servant
Does not bear
Importance of Entrepreneurship
Capital Formation
Employment Creation
Creating Innovation
Fuelling Economic Growth
Identifying Ownership Opportunities
Enhancing Welfare Amenities
Increased Productivity
Balanced Development
Equitable Distribution
Industrialization
Opportunities for Entrepreneur
Objective of succession
planning
Identify those with the potential to assume greater responsibility
in the organization
Provide critical development experiences to those that can move
into key roles
Engage the leadership in supporting the development of highpotential leaders
Build a data base that can be used to make better staffing
decisions for key jobs
In other companies these additional objectives may be embedded
in the succession process:
Improve employee commitment and retention
Meet the career development expectations of existing employees
Counter the increasing difficulty and costs of recruiting
employees externally
3.
4.
5.
6.
ideas.
Keep up with current events and be
ready to take advantage of business
opportunities.
Invent a new product or service.
Add value to an existing product.
Investigate other markets.
Improve an existing product or service.
Political instability
Presence of inflation
Inadequacy of information
Capital
Inadequate of infrastructural facilities
Inadequate of Government support or motivation
Type of business to establish
Others:
Lack of time
unfamiliarity
lack of skills
Lack of openness
Family background
Education
Age
Family connection
Types of Start-ups
(what types of business should you start?
(Build a better business)
Types of Start-ups
Market Research
Business Name
Selecting a Business Structure
Business Plan
Marketing Plan
Applying for Licenses & Permits
Funding Your Business
Finding a Location
Minimizing Risk
Outsourcing and/or Hiring New Employees
Accounting - Maximizing Profit & Minimizing Tax
Any Questions?