Entrepreneurship involves recognizing business opportunities, managing risk, and mobilizing resources to create value and bring a project to fruition. An entrepreneur undertakes the formation of an organization by identifying potential demand and transforming it into supply. Successful entrepreneurs search for and exploit changes as opportunities, believing in increasing value and customer satisfaction. Entrepreneurship provides employment, increases purchasing power, and promotes regional development. However, entrepreneurs face issues in selecting and financing their business, choosing an appropriate legal structure, locating it, and finding suitable manpower.

1. INTRODUCTION TO
ENTREPRENEURSHIP

2. WHAT IS
ENTREPRENEURSHIP?
Entrepreneurship is the attempt to create value through
recognition of business opportunity,
the management of risk taking,
and through the communicative and management skills to
mobilize human, financial, and material resources
necessary to bring a project to fruition.

3. Adam Smith:
An individual, who undertakes the formation of an organization
for commercial purposes by recognizing the potential demand
for goods and services, and there by acts as an economic agent
and transforms demand into supply.
Peter F. Drucker:
An entrepreneur is one who always searches for changes,
responds to it and exploits it as an opportunity. He believes in
increasing the value and consumer satisfaction.

4. IMPORTANCE OF
ENTREPRENEURSHIP
• Helps the formation of capital by bringing together the
savings and investments of people
• Provides large-scale employment opportunities and
increases the purchasing power of the people;
• Promotes balanced regional development in the country.

5. ADVANTAGES OF
ENTREPRENEURSHIP
To an Individual
• Provides Self Employment for the entrepreneur
• Entrepreneur can provide employment for near & dear one as
well
• Entrepreneurship often provides an employment and
livelihood for next generations as well.
• Freedom to use own ideas – Innovation and creativity
• Unlimited income / higher retained income – Bill Gates has
risen to become richest in the world in a single life time
through entrepreneurship
• Independence
• Satisfaction

6. To the nation
• Provides larger employment – Entrepreneurs provide
employment for self as well as other people and is source of
employment creation.
• Results in wider distribution of wealth – This is a logical
sequel of above issue. Higher the employment, greater the
distribution of wealth
• Mobilizes local resources, skills and savings
• Accelerates the pace of economic development –
Entrepreneurship is the government’s one of the most trusted
vehicles for economic development
• Stimulates innovation & efficiency

7. QUALITIES OF SUCCESSFUL
ENTREPRENEUR
• Initiative: An entrepreneur must have an innovative aptitude, pick
the right opportunity, and initiate action.
• Wide Knowledge: An entrepreneur should have wide knowledge
of the economic and non-economic environment of business like
the market, consumer attitudes, technology, etc.
• Open mind and optimistic outlook: He/she must possess a
dynamic and optimistic outlook so as to predict changes in the
business environment.
• Leadership Qualities: An entrepreneur should possess the
qualities of a good leader.

8. • Willingness to assume risk: Entering any venture is full
of risks and uncertainties. In order to deal with various
kinds of risks and uncertainties efficiently, the
entrepreneur should have willingness to assume risks.
• Adaptability: He/she should be prepared to adapt to the
changes taking place in the system.
• Self-confidence: For achieving success in life, one should
have confidence in himself/ herself.
• Orientation towards hard work: He has to put in extra
efforts to ensure success of the enterprise started by him.

9. FUNCTIONS OF AN ENTREPRENEUR
• Conception of an idea: An entrepreneur is the person with
a creative mind who can identify business opportunities and
take steps for the conversion of ideas into successful
business.
• Promotion: Now-a-days many entrepreneurs have assumed
the role of promoters of large companies.
• Innovation: An entrepreneur tries to develop new
technology, products and markets. The entrepreneur uses
his creative abilities to do new things and exploit
opportunities in the market.

10. • Bearer of risks and uncertainty: starting of a new
business venture involves good amount of risk and
uncertainty. To start with, it is the entrepreneur who
assumes risks and is prepared for the losses
• Arranging necessary capital: Arranging funds is one of
the biggest hurdles in setting up a new entrepreneur.
• Staffing: An entrepreneur has to design the organizational
structure and recruit suitable persons for various positions.

11. Task for you!
Imagine you are a new Entrepreneur and You are
going to start a new business. Analyze the current
situation and list out what sort of businesses you
are going to start and the reasons for it.

12. TYPES OF ENTREPRENEURS
• According to the types of business
– Trading Entrepreneur
– Industrial Entrepreneur
– Agricultural Entrepreneur
– Service Entrepreneur
• According to the use of technology
– Technical Entrepreneur
– Non-technical Entrepreneur
• According the Area
– Urban Entrepreneur
– Rural Entrepreneur
• According to gender
– Men Entrepreneur
– Women Entrepreneur

13. ISSUES AND PROBLEMS FACED BY
ENTREPRENEURS
• Selection of business: The entrepreneur might be having
a very good business idea. However, successful
implementation of the idea into business activity involves
a painstaking exercise.
• Choice of form of business enterprise: There are various
options available to the entrepreneur as far as the choice
of form is concerned.
• Financing: The problem of arranging finance always
troubles the entrepreneur.

14. • Location: The problem of locating the business unit is
another issue for consideration that should be carefully
handled by entrepreneur.
• Size of the unit: Size of the business is influenced by
several factors like technical, financial and market
considerations.
• Suitable manpower: If the size of business is large, the
entrepreneur has to find suitable competent persons for
various functional areas.