Enterpreneurship

1. Module 2
Establishing Business
BUSINESS

2. Business is both an economical
and social process
SOCIAL PROCESS
ECONOMIC PROCESS
It is an economic activity of Satisfying the needs and
Production and distribution of Wants of the public
Goods and services for profits.

3. Factors of production
Factors of production
Land
Labour
Capital
Organisation
A business is a combination of four factors of production.

4. Entrepreneur
A person who takes the „enterprise‟ or effots
of identification and mobilisation of factors
of production to form a business entity and
earn profits there from is called an
entrepreneur.

5. Entrepreneur –Word origination
The word entrepreneur is derived from the
French word “entreprendre” which means
“to undertake”.

6. Factors of production and rewards
The entrepreneur has to acquire land for „rent‟, hire labour
for „wages‟, Borrow capital for „interest‟ and Finally organise these
factors in production for generating the own reward, i.e. profit.
Factors of production Rewards
Land Rent
Labour Wages
Capital Interest
Organisation Profit

7. Innovation of an entrepreneur
1. The introduction of a new method of production.
2. The introductin of a new product.
3. The identification of a new source of raw material and
4. Finding out new markets.

8. Types of an
entrepreneur
Individual Group
entrepreneur entrepreneurs

9. Individual entrepreneur
Here the entire entrepreneurial activities
revolve around a single person performing
all the functions of entrepreneurship;
formulates new business ideas, mobilises
resources, forms and manages an
enterprises and bears all the risks involved
in it.
The success and failure of this type of
entrepreneurship depends purely on a single
person.

10. Group entrepreneurs
Two or more persons having
entrepreneurial traits and motivation join
together and form a team so that they can
effectively perform all the entrepreneurial
functions.
This facilitates entrepreneurs to reduce the
risks involved in individual
entrepreneurship and enjoy the benefits of
team working.

11. Intrapreneur
Person who works within an
organisation as a manager or executive
exhibiting some characteristics of an
entrepreneur.
He is an effective, intelligent and smart
executive working within the framework of
an organisation.

12. INTRAPRENEUR ENTREPRENEUR
Executive or manager who An independent person who
works within the framework starts an enterprise and bears
of an organisation. all risks involved in it.
He does not mobilise resources He mobilises resources and
meets the costs of these
resources.
He does not bear any risk in He bound to bear all risks
the business involved in the business.
He receives salary for his The monetary benefit of the
services to the organisation. entrepreneur is profit made by
the business.