Introduction to Entrepreneurship

1. Introduction
to
Entrepreneurship
Md. Umair

2. Concept of Entrepreneurship
“Entrepreneur is an individual who undertakes to
initiate, maintain or organize a profit oriented business
unit for production or distributions of economic goods
and services”.
“Entrepreneurs are those people who have the ability to see and
evaluate the opportunities , together with necessary resources to
take advantages of them and to initiate appropriate actions to
ensure success”. - International labor organization

3. Concept of Entrepreneurship
Economic Activity
Creative Activity
Purposeful Activity
Risk Bearing
Organizing Function
Dynamic Activity
CharacteristicsofEntrepreneurship

4. EvolutionoftheconceptEntrepreneurship
Concept of Entrepreneurship
1. In early 16th century, the Frenchmen who organized and led military
expeditions were referred as‘Entrepreneurs’.
2. Around 1700 A.D. the term was used to architects and contractors of
public works.
3. Quesnay regarded the rich farmers as entrepreneurs who managed
and made their business profitable by intelligence, skill and wealth.
4. The term “entrepreneur’ was applied to business initially by French
economist, Cantillon, in 18th century, to designate a dealer who
purchases the means of production for combining them into
marketable products.

5. Concept of Entrepreneurship, Entrepreneur and Enterprise.
Entrepreneur Entrepreneurship Enterprise
Person Process in Action Object
In Many countries, the entrepreneur is often associated with a person who starts his
own new and small Business (Various Forms). But not every new and small business is
entrepreneurial or represents entrepreneurship.
Urge
Skill Vision Growth MANAGEMENT
Enterprise
Risk
InnovationORGANIZATION

6. Growth of Entrepreneurship in India
Vedic period- Handicraft entrepreneurship
British Invasion
Community entrepreneurs
Entrepreneurship post-Independence
Emergence of New Breed of Entrepreneurs

7. Growth of Entrepreneurship in India
1. Promotes Capital Formation
2. Creates Large-Scale Employment Opportunities
3. Promotes Balanced Regional Development
4. Reduces Concentration of Economic Power
5. Wealth Creation and Distribution
6. Increasing Gross National Product and Per Capita Income
7. Improvement in the Standard of Living
8. Promotes Country's Export Trade
9. Induces Backward and Forward Linkages
10. Facilitates Overall Development

8. Concept of Intrapreneurship
A person within a large corporation who takes direct
responsibility for turning an idea into a profitable finished
product through assertive risk-taking and innovation.
Solo
Phase
Network
Phase
Boot
Legging
Phase
Formal
Team
Phase
Process of Intrapreneurship

9. Trait Traditional Managers Entrepreneurs Intrapreneurs
Primary Motive Promotion & other traditional rewards, such
as office, staff and power
Independence, opportunity to
create and make money
Independence & ability to advance
in the corporate organization,
rewards
Time orientation Short term: Meeting quotas & budgets,
weekly, monthly, quarterly and the annual
planning horizon.
Survival and achieving 5 to 10
years growth of business.
Between entrepreneurial and
traditional managers. Depending
on urgency to meet self-imposed &
corporate timetable.
Activity Delegates & supervises more than direct
involvement.
Direct involvement Direct involvement more than
delegation.
Risk Careful Moderate risk taker Moderate risk taker
Status Concerned about status; symbol Not concerned about status
symbol
Not concerned about traditional
status symbol, desires
independence.
Failure & Mistakes Tries to avoid mistakes & Surprises. Deals with mistakes and Failures. Attempts to hide risky projects
from view until ready.
Decisions Usually agrees with those in upper
management positions
Follows dream with decisions Attempts to hide risky projects
from view until ready
Who serves Others. Self & Customers Self, customers and sponsors
Relationship with others Hierarchy as basic relationship Transactional & deal making as
basic relationship
Transaction with in hierarchy.
Comparative Study

10. Types of Entrepreneurs
According to type of
Business
Traits
Business Entrepreneurs Conceive an idea for a new product or service and then create a
business to materialize their ideas.
Trading Entrepreneur More concerned about trading activity and not manufacturing.
This includes identification of potential markets & stimulation of
demand.
Industrial Entrepreneur Essentially a manufacturer who identifies the potential needs of
the customer and tailors products or services to meet them.
Corporate Entrepreneur Demonstrates his innovative skill in organizing & managing
undertaking.
Agricultural Entrepreneur Undertakes agricultural activities as raising & marketing of crops,
fertilizers & other inputs of agriculture.

11. Types of Entrepreneurs
Based on Adaptability Traits
Innovative Entrepreneurs Aggressive in experimentation, Very innovative, Show high
tendency of undertaking risk.
Imitative Entrepreneur Not vey innovative, Do not make new products or services, but try
to copy existing with minor variations.
Fabian Entrepreneur Skeptical –Risk averse-Non innovative-Static in nature-No
diversification & Expansion-Highly traditional in nature.
Drone Entrepreneur Refuse to adopt & use opportunities. But they to make changes in
their production methods.

12. Types of Entrepreneurs
Based on Nature
of economy
Nature of
Economy
Traits
Innovative Developed Aggressive in experimentation, Very innovative,
Show high tendency of undertaking risk.
Imitative
Entrepreneur
Developing Not vey innovative, Do not make new products or
services, but try to copy existing with minor
variations.
Exploitative
Entrepreneur
Under-developed Aggressive profiteer; survives in societies with
high economic disparity, exploits all possibilities
foe personal benefits through enterprises.
Model Any kind of Market Emphasis on the social benefit aspect, spends
profit on unit expansion, goes in for product
diversification & assumes total responsibility for
success & failure.

13. Types of Entrepreneurs
According to Motivation Traits
Pure Entrepreneurs Motivated by psychological & economic rewards. Under takes
entrepreneurial activity for personal satisfaction in work, ego.
Induced Entrepreneur Under takes entrepreneurial activity due to policy measures of
the government that provides assistance & other benefits.
Motivated Entrepreneur Motivated by the desire for self fulfillment.
Spontaneous Entrepreneur Natural talents.

14. Knowledge Entrepreneurship
1. Knowledge entrepreneurship describes the ability to recognize or
create an opportunity and take action aimed at realizing the
innovative knowledge practice or product.
2. Knowledge entrepreneurship is different from ‘traditional’
economic entrepreneurship in that it does not aim at the
realization of monetary profit, but focuses on opportunities with
the goal to improve the production (research).
3. It has been argued that knowledge entrepreneurship is the most
suitable form of entrepreneurship for not-for-
profit educators, researchers and educational institutions.

15. Social Entrepreneurship Social entrepreneurship is the work of social entrepreneurs.
A social entrepreneur recognizes a social problem and uses entrepreneurial
principles to organize, create and manage a venture to achieve social
change (a social venture). While a business entrepreneur typically measures
performance in profit and return, a social entrepreneur focuses on creating
social returns.
Thus, the main aim of social entrepreneurship is to further social and
environmental goals. Social entrepreneurs are most commonly associated with
the voluntary and not-for-profit sectors,[ but this need not preclude making a
profit.

16. Concept of Women Entrepreneurship
Description Data
Total Population 1080 Million
Women Population 460 Million
Percentage of Total Population 46.5
Women Workforce 140 Million
Percentage of Female population 32.9
Women Entrepreneur 9% of total
Rural-Urban divided 90% (R) 10% (U)
Women Entrepreneurs may be defined as the women or group of women who
initiate, organise and co-operate a business enterprise.
Causes forWomen to become entrepreneurs
[a] Chance entrepreneurs [b] Forced entrepreneurs [c] Created entrepreneurs

17. The Indian women are no longer treated as show pieces to be kept at home.
Dr. Kiran Mazumdar-Shaw, Chairman & Managing Director of Biocon Ltd., who became India’s
richest woman in 2004, was educated at the Bishop Cotton Girls School and Mount Carmel College
in Bangalore. She founded Biocon India with a capital of Rs.10,000 in her garage in 1978 – the
initial operation was to extract an enzyme from papaya. Her application for loans were turned
down by banks then – on three counts – biotechnology was then a new word, the company lacked
assets, women entrepreneurs were still a rarity. Today, her company is the biggest
biopharmaceutical firm in the country.
Ekta Kapoor, creative head of Balaji Telefilms, is the daughter of Jeetendra and sister of Tushar Kapoor.
She has been synonymous with the rage of soap operas in Indian TV, after her most famous
venture ‘Kyunki Saas Bhi Kabhi Bahu Thi’ which was aired in 2000 on Star plus. Ekta dominates Indian
Television.At the 6th Indian Telly Awards 2006,she bagged the Hall Of Fame award for her
contributions.
Neelam Dhawan, Managing Director, Microsoft India, leads Microsoft India. She is a graduate from St.
Stephens College in 1980,and also passed out from Delhis Faculty Of Management studies in 1982. Then
she was keen on joining FMCG majors like Hindustan Lever and Asian Paints, both companies rejected
Dhawan, as they did not wish to appoint women for marketing and sales.
Naina Lal Kidwai, was the first Indian woman to graduate from Harvard
Business School. Fortune magazine listed Kidwai among the worlds top 50
Corporate Women from 2000 to 2003. According to the Economic times, she
is the first woman to head the operations of a foreign bank in India. ( HSBC)

18. Indu Jain, the multi-faceted lady used to be the Chairman of the Times Group-The most powerful and
largest Media house India has known. Indu Jain is known by many different identities such as that of
spiritualist,humanist,entrepreneur,an educationalist but most prominently she played the role of the
Chairman of Times Group. Indu Jain is the perfect picture of the successful Indian Woman
entrepreneur.
The Indian women are no longer treated as show pieces to be kept at home.
Simone Tata, has been instrumental in changing a small subsidary of Tata Oil Mills into the largest
cosmetic brand in India – LAKME, synonymous today with Indian Fashion. She became a part of Lakme
during 1961 and has been responsible for turning the company into one of the biggest brands of
fashion in India. At present she is the Chairperson of Trent Limited, a subsidary of Tata Group.
Preetha Reddy, Managing
Director of Apollo
Hospitals, Chennai, one of the
largest healthcare
conglomerates of India, is one
of the pioneer businesswoman
of India in the segment of
Health Care Industry.
Indra Nooyi is an Indian-born American business
executive. She is the current Chairman and Chief
Executive Officer of PepsiCo, the second largest
food & beverage business in the
world. According to Forbes, she is consistently
ranked among World's 100 Most Powerful
Women.
Chanda Kochhar is currently the Managing Director (MD)
of ICICI Bank and Chief Executive Officer (CEO). ICICI Bank
is India's largest private bank and overall second largest bank
in the country.

19. Problems of Women Entrepreneurs
1. Poor Self-Image
2. Inadequate motivation
3. Role conflict
4. CulturalValues
5. Lack of social acceptance
6. Lack of Knowledge about business opportunities
7. Lack of Managerial Skills
8. Lack of experience or business background
9. Product choice
10. Marketing skills
11. Accounts & Finance
12. Problem solving
13. Life style

20. Institutions supporting Entrepreneurs
1. Self-Help Group (SGHs)
2. Federation of IndianWomen Entrepreneurs (FIWE)
3. Women’s IndiaTrust (WTI)
4. Small Industries Development Bank of India (SIDBI)
5. Small Industries Development Organization (SIDO)
6. Consortium ofWomen Entrepreneurs of India (CWEI)
7. National Bank for Agriculture and Rural Development (NABARD)
8. Self EmployedWomen'sAssociation (SEWA)
9. Association ofWomen Entrepreneurs of Karnataka (AWAKE)

21. Entrepreneurial competencies
Ability to control and operate the things in the environment
and the environment itself.
Characteristics or Qualities of an Entrepreneur
1. Objectivity
2. Optimism
3. Seizing Opportunities
4. Open to feedback
5. Attitude towards Money
6. Proactive management
7. Flexible authority relationship
8. Sound decision making ability
9. Good teamWork & Leadership skills
10. Perseverance
11. Self confidence
12. Dedication & Devotion

22. Functions of Entrepreneurs
1. Innovation
2. Risk taking
3. Organizing building
4. Managing
5. Perceiving market opportunities
6. Managing finance
7. Managing
8. Managing human resources