POKHARA UNIVERSITY

1. Entrepreneurship
Chapter One

2. Meaning of Entrepreneurship
• Entrepreneurship is the process of creating
new ventures. It begins with an innovative
idea.
• It identifies opportunities and mobilizes and
invests resources to exploit those
opportunities.
• It involves innovation and assumes risk to reap
rewards.
• It creates employment for self and others. It is
key to the success of small business.

3. Meaning of Entrepreneurship
• According to Joseph Schumpter:
“Entrepreneurship is based on purposeful and
systematic innovation…it essentially consists in
doing things that are not generally done in the
ordinary course of business routine.”
• According to Peter Drucker:
“Entrepreneurship is gathering and using
resources to produce results…it is allocating
resources to opportunities rather than to
problems.”

4. Meaning of Entrepreneurship
• For our purpose:
“Entrepreneurship is the process of exploiting
opportunities by creating new venture
through resource pulling, risk taking,
innovating and managing for rewards.”

5. Elements of entrepreneurial process
• Creation of new ventures
• Devotion of time and effort
– Invention versus innovation
• Assumption of risks
– Financial risk
– Psychological risk
– Career risk
– Social risk
• Reaping of rewards

6. Meaning of Entrepreneur
• For our purpose:
“An entrepreneur is a visionary individual who
takes risks by starting something new through
assembling and coordinating various
resources for the sake of uncertain rewards.”

7. Relationship between entrepreneur
and entrepreneurship
• Entrepreneur is a noun whereas
entrepreneurship is a verb
• Creator/Creation
• Visionary/Vision

8. Meaning of intrapreneur
• Intrapreneur refers to corporate entrepreneur.
• It is a person within large organization who
handles new ventures based on innovation.
• He/she emerges from within an existing
organization structure.
• They should be creative, visionary and flexible.
They must be able to work within the existing
corporate structure and climate.
• Top management commitment to
intrapreneurship is a must.

9. Differences between entrepreneur and
intrapreneur
• Dependency
• Fund raising
• Risk
• Motive
• Operation
• Time orientation

10. Intrapreneurship
• It has been adopted by many firms as a
strategy for innovation and growth. This
strategy taps entrepreneurial abilities of
individuals within the corporate framework.

11. Entrepreneurship Qualifications
• Achievement-oriented
• Hard working
• Desire for responsibility
• Optimistic
• Independence
• Foresight
• Preference for risk
• Innovative
• Flexibility
• Good manager and leader

12. Environmental factors affecting
entrepreneurship
• Family background
• Education
• Age
• Family connection

13. Salaried Employees
• Entrepreneur creates jobs for salaried
employees.
• A salaried employee serves an existing
business for the sake of fixed rewards. He/she
implements decisions made by the owners.
• They are servants.
• A salaried employee does not invest his/her
own money.

14. Salaried Employees
• They do not bear risks and innovate. They
translate ideas into practice and have a high
concern about their status.
• The number of salaried employees varies
according to the business.
• The tenure of service is fixed according to age
or years of service.
• They possess skills and practical experience.

15. Differences between entrepreneur and
salaried employee
• Motive and reward
• Work place
• Status
• Risks
• Innovation and change
• Tenure
• Qualifications

16. Advantages of salaried employees
• Selection choice
• Development
• Fixed financial liability
• Productivity
• Ease in hiring/firing

17. Disadvantages of salaried employees
• Poor commitment
• Unionism
• Politicization
• Low self-motivation
• Lack of independence

18. Positive aspects of entrepreneurship
• Capital formation
• Employment creation
• Increased productivity
• Balanced development
• Equitable distribution
• Export promotion
• Industrialization
• Opportunities for entrepreneur

19. Negative aspects
• Risk of failure
• Lack of professional management
• Changing government policies
• Low mobility
• Emotional stress

20. Class Discussion

21. Problems of entrepreneurship in Nepal