Meaning, Scope,Importance

1. Entrepreneurship
Presented by
Dr.R.VIJAYALAKSHMI
Assistant Professor
Department of Commerce
SRM Institute of Science of Technology
Chennai.

2. Entrepreneurship Meaning
• Entrepreneurship involves an entrepreneur who takes action to make a change in
the world. Whether start-up entrepreneurs solve a problem that many struggle with
each day, bring people together in a way no one has before, or build something
revolutionary that advances society, they all have one thing in common action.
• The entrepreneur is defined as someone who has the ability and desire to establish,
administer and succeed in a start-up venture along with risk entitled to it, to make
profits. The best example of entrepreneurship is the starting of a new business
venture. The entrepreneurs are often known as a source of new ideas or innovators,
and bring new ideas in the market by replacing old with a new invention.

3. Importance of Entrepreneurship
• Creation of Employment- Entrepreneurship generates employment. It provides an
entry-level job, required for gaining experience and training for unskilled workers.
• Innovation- It is the hub of innovation that provides new product ventures, market,
technology and quality of goods, etc., and increase the standard of living of people.
• Impact on Society and Community Development- A society becomes greater if
the employment base is large and diversified. It brings about changes in society and
promotes facilities like higher expenditure on education, better sanitation, fewer
slums, a higher level of homeownership. Therefore, entrepreneurship assists the
organisation towards a more stable and high quality of community life.

4. Importance of Entrepreneurship (Cont…)
• Increase Standard of Living- Entrepreneurship helps to improve the standard of
living of a person by increasing the income. The standard of living means, increase
in the consumption of various goods and services by a household for a particular
period.
• Supports research and development- New products and services need to be
researched and tested before launching in the market. Therefore, an entrepreneur
also dispenses finance for research and development with research institutions and
universities. This promotes research, general construction, and development in the
economy.

5. Entrepreneurial Qualities
1. Disciplined- These individuals are focused on making their businesses work, and eliminate any
hindrances or distractions to their goals. They have overarching strategies and outline the
tactics to accomplish them. Successful entrepreneurs are disciplined enough to take steps
every day toward the achievement of their objectives.
2. Confidence- The entrepreneur does not ask questions about whether they can succeed or
whether they are worthy of success. They are confident with the knowledge that they will
make their businesses succeed. They exude that confidence in everything they do.
3.Open Minded- Entrepreneurs realize that every event and situation is a business opportunity.
Ideas are constantly being generated about workflows and efficiency, people skills and
potential new businesses. They have the ability to look at everything around them and focus it
toward their goals.

6. Entrepreneurial Qualities(Cont..)
4. Self Starter-Entrepreneurs know that if something needs to be done, they should start it
themselves. They set the parameters and make sure that projects follow that path. They are
proactive, not waiting for someone to give them permission.
5. Competitive-Many companies are formed because an entrepreneur knows that they can do a
job better than another. They need to win at the sports they play and need to win at the
businesses that they create. An entrepreneur will highlight their own company’s track record
of success.
6. Creativity-One facet of creativity is being able to make connections between seemingly
unrelated events or situations. Entrepreneurs often come up with solutions which are the
synthesis of other items. They will repurpose products to market them to new industries.

7. Entrepreneurial Qualities(Cont..)
7. Determination-Entrepreneurs are not thwarted by their defeats. They look at defeat as an
opportunity for success. They are determined to make all of their endeavours succeed, so will
try and try again until it does. Successful entrepreneurs do not believe that something cannot
be done.
8. Strong people skills-The entrepreneur has strong communication skills to sell the product and
motivate employees. Most successful entrepreneurs know how to motivate their employees so
the business grows overall. They are very good at highlighting the benefits of any situation
and coaching others to their success.
9. Strong work ethic-The successful entrepreneur will often be the first person to arrive at the
office and the last one to leave. They will come in on their days off to make sure that an
outcome meets their expectations. Their mind is constantly on their work, whether they are in
or out of the workplace.

8. Entrepreneurship Innovation
• Entrepreneurship refers to the process of developing new business ventures, or
growing existing ones. Central to this activity are entrepreneurs: innovative and
risk-taking individuals who seek to bring about change and new opportunities, both
for themselves and for the business communities in which they operate.
• Entrepreneurial start-ups galvanise the economy by identifying new opportunities
and redirecting resources to them. Established firms innovate in order to
outmanoeuvre or respond to their competition. And in the public sector, the need for
effective policies to deal with new challenges and for increasing service delivery
with declining budgets also places a premium on innovative thinking.

9. Risk Taking Entrepreneurship
1.Abandoning the steady pay check.
2. Sacrificing personal capital.
3. Relying on cash flow.
4. Estimating popular interest.
5. Trusting a key employee.
6. Betting on a crucial deadline.
7. Donating personal time (and health).

10. Innovation Need and Importance
1. Creative Development – Qualities of innovative nature are essential for new
businesses today. You can achieve growth by learning how to be creative. You need
to learn this business skill to help make things of value from your creativeness.
When you have this business skill you will find that it opens up all kinds of
opportunities and gives you the potential for a new market and helps you to keep up
with the current trends.
2. Continuous Improvement – Innovation gives organizational sustainability when
you are making continual improvements and repackaging and re-branding. Any
good manager will recognize the need to innovate and grows the business skills to
increase their creativity.

11. Innovation Need and Importance (Cont..)
3 .Reinforce Your Brand – Development branding is popular in organizational leadership. This
process reveals information to help leaders to learn other ways to be more innovative. It is
important because it is recognized as one of the main drivers for success. It gives
organizational sustainability such as brand maintenance.
4. Making the Most of What You Have Already – It is not all about creating a new product or
service which you can sell, but you also need to focus on your existing business procedures to
improve your efficiency, find some new customers, increase your profits and cut down on the
amount of your waste. When you are continually innovating and improving on the practices of
your business you will likely also attract better staff and keep more of your existing staff. This
is detrimental to the health and performance of your business in the long-term.

12. Innovation Need and Importance (Cont..)
5. Responding to Competition and Trends – Innovation can help you to see what exists now in
opportunities or which ones will likely pop up in the near future. Businesses which are successful
don’t only respond to the current needs of their customers, but usually predict the future trends and
come up with an idea, service or product that can meet the future demand quickly and effectively. In
this way you can stay ahead of your competition as trends, technology or markets shift.
6. Having a Unique Selling Point – Generally, consumers will see innovation as something which adds
value to products or a company. When this is used the right way, it can give you an advantage
commercially, especially in a market that is saturated or shifting rapidly. It can get your more
positive exposure in the media and your customers will be more willing to pay the extra money for
something that is well-designed and new, rather than picking the less exciting and cheaper rival.

13. Innovation Need and Importance (Cont..)
7. The Use of Social Media – Including the use of social media in your innovation
campaign is great for managing, motivating and getting focused in your business.
When you use it in your business, you are drawing ideas from a wide range of
people on the social networks, giving you a successful outlet to find new ideas for
your business. You can also use social networks to see what customers are saying
about your services, products or company.

14. Creativity and Innovation
• Creativity is the capability or act of conceiving something original or
unusual. Creativity has traditionally been left to those ‘wacky’ companies that are
deliberately trying to do things differently, with the majority of businesses tending
to favour a traditional and monotone approach to running their
organisations. However, the changing business landscape means that companies are
beginning to consider a more creative approach to working. Innovation is the
implementation of something new. Invention is the creation of something that has
never been made before and is recognized as the product of some unique insight.

15. Creativity vs. Innovation
BASIS FOR
COMPARISON
CREATIVITY INNOVATION
Meaning Creativity is an act of
creating new ideas,
imaginations and
possibilities.
Innovation is the
introduction of something
new and effective into the
market.
Process Imaginative Productive
Quantifiable No Yes
Related to Thinking something new Introducing something new
Money Consumption No Yes
Risk No Yes

16. Research and Development
• The term R&D is widely linked to innovation both in the corporate and government
world or the public and private sectors. R&D allows a company to stay ahead of its
competition. Without an R&D program, a company may not survive on its own and
may have to rely on other ways to innovate such as engaging in mergers and
acquisitions (M&A) or partnerships. Through R&D, companies can design new
products and improve their existing offerings.
• R&D represents the activities companies undertake to innovate and introduce new
products and services or to improve their existing offerings.
• R&D allows a company to stay ahead of its competition.
• Companies in different sectors and industries conduct R&D; pharmaceuticals,
semiconductors, and technology companies generally spend the most.

17. Invention vs. Innovation
BASIS FOR
COMPARISON
INVENTION INNOVATION
Meaning Invention refers to the occurrence
of an idea for a product or process
that has never been made before.
Innovation implies the
implementation of idea for product
or process for the very first time.
What is it? Creation of a new product. Adding value to something already
existing.
Concept An original idea and its working in
theory.
Practical implementation of new
idea.
Skills required Scientific skills Set of marketing, technical and
strategic skills.
Occurs when New idea strikes a scientist. A need is felt for a product or
improvement in existing product.
Concerned Single product or process. Combination of various products
and process.

18. Intra-preneurship
• Intrapreneurship refers to a system that allows an employee to act like
an entrepreneur within a company or other organization. Intra-preneurs are self-
motivated, proactive, and action-oriented people who take the initiative to pursue an
innovative product or service. An intra-preneur knows failure does not have a
personal cost as it does for an entrepreneur since the organization absorbs losses
that arise from failure.

19. Types of entrepreneurs
• Small business entrepreneurship.
• Large company entrepreneurship.
• Scalable start-up entrepreneurship.
• Social entrepreneurship.
• Innovative entrepreneurship.
• Hustler entrepreneurship.
• Imitator entrepreneurship.
• Researcher entrepreneurship.

20. Micro, Small, Medium entrepreneurs:
• The Micro- Small and Medium Enterprises (MSMEs) are small sized
entities, defined in terms of their size of investment. They are contributing
significantly to output, employment export etc. in the economy. They
perform a critical role in the economy by providing employment to a large
number of unskilled and semi-skilled people, contributing to exports,
raising manufacturing sector production and extending support to bigger
industries by supplying raw material, basic goods, finished parts and
components, etc.

21. Traits of Successful Entrepreneurs
• Motivation
• Creativity
• Persuasiveness
• Vision
• Versatility
• Risk tolerance
• Flexibility
• Decisiveness

22. Entrepreneur vs. Businessman
Parameter of
Comparison
Entrepreneur Businessman
Definition A creative person who
introduces new ideas to
run businesses.
A person who follows the
already existing ideas.
Nature Innovative Traditional
Goal Customer oriented Profit oriented
Risk margin High low
Market position Market leader Market player
Orientation Opportunity oriented Resource oriented

23. Entrepreneur vs. Manager
BASIS FOR COMPARISON ENTREPRENEUR MANAGER
Meaning Entrepreneur refers to a
person who creates an
enterprise, by taking
financial risk in order to get
profit.
Manager is an individual
who takes the responsibility
of controlling and
administering the
organization.
Focus Business startup Ongoing operations
Primary motivation Achievement Power
Approach to task Informal Formal
Status Owner Employee
Reward Profit Salary
Decision making Intuitive Calculative