Entrepreneurship entrepreneur definitions and concepts

1. ENTREPRENEURSHIP
Demonstrator:
Abrar Ahmad Bhatti

2. Brief outline
• Concept of Entrepreneur, Intrapreneur,
Entrepreneurship, Corporate Entrepreneurship
and Management
• Types of Entrepreneurs
• Common Characteristics of Entrepreneurs
• 10 myths of Entrepreneurship
• Factors influencing Entrepreneurship
• Entrepreneurship Theories
• Seven Sources of Entrepreneurial Opportunities

3. Entrepreneur Entrepreneurship Management
Entrepreneur is a
person.
Entrepreneurship is a
process.
Is a process of Planning organizing leading
& controlling
Entrepreneur is an
organizer.
Entrepreneurship is an
organization.
Organizing is one of the function of
management
Entrepreneur is an
innovator.
Entrepreneurship is an
innovation.
Innovation is to plan, organize, lead &
control by management
Entrepreneur is a risk
bearer.
Entrepreneurship is risk
bearing.
Management is not concern about the risk
Entrepreneur is a
motivator.
Entrepreneurship is
motivation.
Management motivates to manage
activities of business
Entrepreneur is a
creator.
Entrepreneurship is a
creation.
Management support & implement that
creation
Entrepreneur is a
visualizer.
Entrepreneurship is a vision.
Defines vision and mission
Entrepreneur is a
leader.
Entrepreneurship is
leadership.
Generally a manager have to lead the
employees
Entrepreneur is an Entrepreneurship is an Plan, organize, lead & control imitation

4. Distinction between Entrepreneur and Intrapreneur:
Basis Entrepreneur Intrapreneur
Capacity
Status
Decisions
Reward
Owner
Own boss
Takes own decisions
Uncertain and
unlimited
An manager
Salaried employee
Executes decisions with
the concurrence of owner
Fixed rewards and salary

5. CORPORATE ENTREPRENEURSHIP
Activities that receive organizational sanction and
resource commitments for the purpose of innovative
results.
–A process whereby an individual or a group of
individuals, in association with an existing
organization, creates a new organization or
instigates renewal or innovation within the
organization.
–A process that can facilitate firms’ efforts to
innovate constantly and cope effectively with the
competitive realities that companies encounter
when competing in international markets.

6. THE EVOLUTION OF ‘UNDERTAKING’
• The word entrepreneur is derived from
the French entreprendre, meaning ‘to
undertake’. The first person who
introduced the term entrepreneur is an
Irish economist Richard Cantillon in 17th
century associated word with ‘Risk
Bearing’ .

7. 1961: David McClelland:
“An entrepreneur is a person with a high need for achievement. He
is energetic and a moderate risk taker.”
J.A.Schumpeter :
”A person who introduces innovative changes is an entrepreneur
and he is an integral part of economic growth.”
Frank Young:
”Entrepreneur is a change agent.”
Dewing:
”The function of entrepreneur is one that promotes ideas into
business.”
Robert Nelson:
“A person who is able to look at the environment, identifies
opportunities to improve the environment, Marshall Resources
(organize) and implement action to maximize opportunities.”

8. Richard Cantillon :
”An agent who buys factors of production at certain prices
in order to combine them into a product with a view to
reselling it uncertain price in future.
Leon Walrus:
” Entrepreneur is the co-coordinator of basic factors of
production. It is the fourth factor of production who
combines other factors such as land, labour and capital.”
F.H.Knight :
“Entrepreneurs are a specialized group of persons who
bears risk and uncertainty.”
Noah Webster:
“Entrepreneur is one who assumes the responsibility of the
risk and management of the business.”

9. Entrepreneurship Definition:
• Entrepreneurship is a dynamic process of vision,
change, and creation. It requires an application of
energy and passion towards the creation and
implementation of new ideas and creative solutions.
Essential ingredients include the willingness to take
calculated risks – in terms of time, equity, or career;
the ability to formulate an effective venture team; the
creative skill to marshal needed resources; the
fundamental skill of building a solid business plan; and,
finally, the vision to recognize opportunity where
others see chaos, contradiction, and confusion.

10. Common Characteristics of Entrepreneur
• Confidence
• Responsibility
• Perseverance,
determination
• Foresight
• Energy, diligence
• Accuracy,
thoroughness
• Resourcefulness
• Cooperativeness
• Ability to take
calculated risks
• Profit orientation
• Dynamism,
leadership
• Ability to learn
from mistakes
• Optimism
• Sense of power
• Need to achieve
• Pleasant
personality
• Versatility;
knowledge of
product, market,
machinery,
technology
• Creativity
• Ability to influence
others
• Ability to get along
well with people
• Initiative
• Flexibility
• Intelligence
• Orientation to clear
goals
• Positive response
to challenges
• Independence
• Responsiveness
to suggestions
and criticism
• Time
competence,
efficiency
• Ability to make
decisions quickly
• Egotism
• Courage
• Imagination
• Perceptiveness

11. A review of the literature -11 common
characteristics can be identified:
• total commitment, determination and perseverance
• drive to achieve and grow
• opportunity orientation and goal orientation
• taking initiative and personal responsibility
• persistent problem solving
• realism and a sense of humour
• seeking and using feedback
• internal locus of control
• calculated risk-taking and risk seeking
• low need for status and power
• integrity and reliability.

12. The 7 Sources Of Entrepreneurial Opportunity:
The 7 sources of Entrepreneurial opportunity were listed by Peter Drucker in his book “Innovation and
Entrepreneurship.
• The Unexpected Success/ Tragedy into an
opportunity
• The Incongruity, the oddness, strangeness,
inappropriateness
• Process Need to identify & correct weaknesses
• Industry and Market Structure Change,
combination of technologies, deregulated industry
• Demographics, segmentation, targeting,
positioning
• Changes in Perception, Meaning, Mood, Culture
• New Knowledge, technological revolution,
continual sources of innovation

13. TEN Myths of Entrepreneurship
• Entrepreneurs are doers, not thinkers
• Entrepreneurs are born, not made
• Entrepreneurs are always inventors
• Entrepreneurs are academic & social misfits
• Entrepreneurs must fit the "profit“
• All entrepreneurs need is money
• All entrepreneurs need is luck
• Ignorance is bliss (joy) for an entrepreneur
• Entrepreneurs seek success but experience high
failure rates
• Entrepreneurs are extreme risk takers (gamblers)

14. APPROACHES TO ENTREPRENEURSHIP

15. Macro view
1. The Environmental School of Thought –This school deals with
external factors -positive or negative forces-focuses institutions, values
and influence of the society .For example strong support from family
and friends may influence the desire to become an entrepreneur. In the case
of Richard Branson this would refer to the major influence of his mother.
2. The Financial/ Capital School of Thought –capital-seeking process.-
start-up and growth capital -financial management view point.
3. The Displacement School of Thought –where someone can feel out
of place or be displaced from the group. There are three major types of
displacement that demonstrate this school of thought:-
Political Displacement: Government regulations and policies that can limit/
redirect certain industries or reject free enterprise.
Cultural Displacement: Social groups excluded from professional fields
e.g. Ethnic background, sex, race, religion.
Economic Displacement: Job loss, capital shrinkage and anything affected
by economic variations of recession and depression.

16. Micro view
• 1. The Entrepreneurial Trait School of Thought –traits and
characteristic-certain attributes are usually exhibited by entrepreneurs
(creativity, determination, opportunity orientation and goal orientation,
taking initiative and personal responsibility, persistent problem solving,
realism etc-influences of family and education .
• 2. The Venture Opportunity School of Thought –Opportunity aspect
search for idea sources- the development of concepts and the
importance of venture opportunities. Developing the right idea at the
right time for the right market niche is extremely important for the
entrepreneurial success and creativity and market awareness are
viewed as essential.
• 3. The Strategic Formulation School of Thought –This approach
emphasizes the planning process in successful venture development.-
The effective venture formations are constructed by unique markets,
unique people, unique products, or unique resources.

17. THANK YOU FOR LISTENING