Entrepreneurship is a purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or aggrandise profit by production or distribution of economic goods.

1. All About Entrepreneurship
Sunil Shukla

2. Entrepreneurship
Entrepreneurship is a purposeful activity
of an individual or a group of associated
individuals, undertaken to initiate,
maintain or aggrandise profit by
production or distribution of economic
goods.

3. Entrepreneurial Individual
 Has concept, vision, dream
 Adapts concept to reflect realities in environment,
scans environment
 Assesses risks versus rewards
 Mobilizes resources
 Able to convert dream into products and people within
an organizational context
 Able to champion the concept to a wide range of
publics and partners
 Persevere in overcoming obstacles
 Optimizes profits

4. An Integrative Model of Entrepreneurial Inputs and Outcomes
Inputs Outcomes
Environmental
Opportunities
Entrepreneurial
individuals
An organizational
context
Unique business
concepts
Resources
The entrepreneurial
Process
• Identify opportunity
• Assess and acquire
necessary
resources
• Implementation
• A going venture
• Value
• New products,
services
• Processes
• Profits and/or
personal
benefit
• Technologies
• Employment,
asset, and
revenue
growth
Entrepreneurial
creation Intensity (EI)
Number of events (and)
degree of
entrepreneurship
Innovation Risk
taking
Proactive
ness
Source: Michael H. Morris, P. Lewis, and Donald L. Sexton, “Reconceptualizing Entrepreneurship: An Input-Output
Perspective,”, SAM advanced Management Journal 59, no.1 (Winter 1994): 21-31

5. Entrepreneurial Personality-
Psychological
 1. Motivation – driven by range of factors
 Necessity (survival)
 Opportunity (proactivity)
 Dissatisfaction (can’t stand job)
 Curiosity (What if…?)
 Material gain (We could make a killing…)
 Achievement oriented more than anything else
 Driven by the task, challenge, opportunity
 Money as a by-product, but scorecard
 2. Strong belief in themselves- believe they can change their
environments

6. …Personality
 3. Calculated risk-takers (financial, career, family &
social, psychic)
 Attempt to estimate likelihood and magnitude of key risk
factors and manage or mitigate them through good planning
or decisions
 4. High tolerance of ambiguity
 Process can be loose, messy, shift directions
 Prize their independence – self-motivated, self-reliant,
prefer autonomy, have perseverance

7. Situation-based Characteristics
 Willingness and ability to assume and manage
risks
 More critical with new-to-the-world products
 Political skills important in large corporate
settings
 Adaptability and tenacity are bigger factors in
turbulent environments

8. Dark Side Traits
 Excessive need for control
 Tendency to micromanage
 Suspicion – others will steal my idea
 Impatience
 Need for applause
 Defensive attitude

9. Entrepreneurial Risks
 Sinking the Boat Risk
 Missing the Boat Risk
TR=f (SBR, MBR)
Missing the boat risk
curve
Total Risk
Planning Time
Sinking the boat risk curve

10. Risks at Startup
 Risk in Opportunity Identification
 Risk in Commercial Viability
 Risk in Investment
 Risk in Financing

11. Rewards of Entrepreneurship
 Financial
 A successful business has the potential to make good profits
and provide substantial wealth for the entrepreneur.
 Social and Emotional
 There is seldom a higher reward than making a positive
difference to another person's life.
 The successful business provides jobs, pride and financial
security for its employees.
 Independence
 Financial success increases the independence and potential of
Growth Rewards.

12. Typical Risk/Reward Visualization
Money
Time
Break-even
Point
Potential Reward
Risk

14. Entrepreneurship Development :
Process, Stages and Interventions

15. CONSTRAINTS TO EMERGENCE
OF
INDIGENOUS ENTREPRENEURS
o Socio-cultural factors – job orientation?
o Low motivation and confidence
o Inadequate information on procedures,
fundraising
o Inadequate knowledge on:
- Market Assessment
- Enterprise Management

16. Entrepreneurship Development:
Key Components

17. ENTREPRENEURSHIP
DEVELOPMENT PROCESS
• Identify, select, train, counsel and support potential
entrepreneurs for creating new enterprises
• Facilitate growth of existing entrepreneurs and groom
successors
• Contribute towards developing entrepreneurial culture
• Facilitate creation of a conducive environment for
emergence and growth of enterprises
• Intervene for developing enterprises- technology and
management (market, quality, finance, human resources)

18. STAGES OF
ENTREPRENEURSHIP
DEVELOPMENT
GROWTH
SURVIVAL
EMERGENCE (START-UP)
EARLY SOCIALIZATION

19. (1) Early socialization
 Creating literature
 Short duration vacation camps
 Visits to industries
 Interactions with entrepreneurs/
achievers from different fields
 Competitions, debates
 Success stories, Projection of
Business Role Models

20. (2) Emergence (Start-up)
 Entrepreneurship education
 Entrepreneurship training
 Business Plan teaching/ training
 Entrepreneurship orientation
 Technical Training
 Management Skills Development
 Technology Demonstrations
 Trade Fairs
 Incubation

21. (3) Survival
 Accounting systems
 Marketing and product promotion
 Managing Human resources
 Seminars and workshops on
technology, quality, operations,
machine safety
 Systems development
 ICT and MIS

22. (4) Growth
 Export marketing
 R&D, Innovation, Value Addition
 Diversification
 Cluster development
 Finance- IPO
 Corporatization
 Internationalization
 Brand building
 Succession planning

23. Thankssunilshukla@ediindia.org