Scope and Challenges of Entrepreneur

1. What is an Entrepreneur
An entrepreneur is defined as “person in effective
control of commercial undertaking; one who
undertakes a business or an enterprise”.

2. Entrepreneurship
• Entrepreneurship is the act of being an
entrepreneur, who starts any economic activity
for being self-employed.
• Entrepreneurship is the “process of the
entrepreneur”. It is an attempt to create value
through recognition of business opportunity. It is
basically communicative and management
functions to mobilize financial and material
resources.

3. Who is an Entrepreneur.......??

5. Entrepreneurial Characteristics
Being an entrepreneur requires specific characteristics
and skills that are often achieved through education, hard
work, and planning.
Risk Taker
Businesses face risk. Entrepreneurs minimize risk through
research, planning, and skill development.
Perceptive
Entrepreneurs view problems as opportunities and
challenges.
Curious
Entrepreneurs like to know how things work. They take
the time and initiative to pursue the unknown.

6. Scope and Challenges of Entrepreneur

7. Scope of Entrepreneurs
Small- scale business provides good scope for the
growth of entrepreneurial activities .An
entrepreneur has good opportunity and vast
scope in selling service rather than manufacturing
a product. The entrepreneur can achieve better
results if the size of the business is small. It is for
this reason that small firms have higher
productivity, greater efficiency and low labour
turnover.

8. Conti..
The scope for entrepreneurial activities in small
business sector can broadly be classified into:
• Industrial sector
• Agricultural and allied industrial sector
• Service sector

9. INDUSTRIAL SECTOR
• Small scale industries occupy an important place in the
industrial sector. They have contributed over 40% in the gross
industrial production in 1998.
• Small- scale industries: The basic objectives underlying the
development of small- scale are the increase in the supply of
manufactured goods, promotion of capital information the
development of indigenous entrepreneurial talents and skills
and the creation of broader employment opportunities. This
sector provides a wider scope for the potential entrepreneur
to develop his or her own industry. There is a good scope and
enormous potential to use technology based products in the
small- scale sector.

10. Conti..
• An entrepreneur can exploit a profitable venture in any of the
industries reserved for exclusive department under the small-
scale sector. There are as many at 384 items for exclusive
purchase from the small- scale industries.
• Small- scale industries play an important role in increasing the
national income, in meeting the shortage of consumer’s
goods, in promoting balanced regional development, in
reducing inequalities in the distribution of income and wealth
and in relieving the economic pressure on land and over
crowding in urban areas. Outdated technology, shortage of
finance, shortage of raw material and inadequate marketing
facilities are some of the problems faced by small
entrepreneurs.

11. AGRICULTURAL AND ALLIED
INDUSTRIAL SECTOR
• There is a vast cope for entrepreneurial activities in
the agricultural sector. By establishing a link
between agriculture and allied industries, the rural
entrepreneur can exploit opportunities in areas of
farming, agricultural processing and marketing. The
government has given priority to IRDP programme
and ensured adequate flow of credit to small and
marginal farmers through re-financing facilities and
by establishing national bank for agriculture and
small development.

12. Conti..
• Trade: Trading takes place in wholesaling and retailing.
It may be in domestic or overseas market. The retailer
entrepreneur makes the goods available at the time
and places the consumer wants them. He may decide
to start single line store, specialty shop, departmental
store etc. trade in overseas market is in wholesale. The
business environment directly influences the growth of
entrepreneurship in a particular line of trade. The trade
policy of India has been directed to promote export.
Hence incentives and facilities have been provided to
the entrepreneurs to motivate them to develop export.

13. SERVICE SECTOR
• The service sector has gained importance for the
entrepreneurs because of its rapid expansion. Service sector
includes all kinds of business and provides opportunities to
the entrepreneurs in business such as hotels, tourist services,
personal services such as dry cleaning, beauty shops,
photographic studies, auto repair, electric repair shops,
wielding repair etc.
• Transport: They provide time and place utilities in urban and
rural areas to both men and material. The different modes or
transport are of immense importance in the areas, which are
not served by roads and railways. There is a scope for
entrepreneur to design prototypes of new carts with the
application of indigenous technology so that they may have
better mobility and greater carrying capacity.

14. Conti...
• The rural economy has a good opportunity for an
entrepreneur to develop some business. They can
exploit possibilities for a venture in some shops or
services. Entrepreneurship flourishes in small business
sector for they have enormous opportunities in
manufacturing and non- manufacturing activities The
government is keen in encouraging the competitive
strength of the small scale producers and it has taken a
number of measures such as:-
• The establishment of a network of industrial estates
through ought the country where work sheds equipped
with the necessary facilities made available to
prospective entrepreneurs on subsidized rental basis.

15. Conti..
• The reservation of a number of products for the
exclusive production to small sector
• The introduction of ancillarization programmed under
which large and small industries are to be linked in a
harmonious productive relationship
• The supply of machines on hire purchase basis to the
small entrepreneurs on easy terms of payment
• Technical counseling to small units so as to improve
their efficiency and viability
• These are golden opportunities for the prospective
entrepreneurs to self employed independent
businessman. The future is very bright.

20. Challenges of Entrepreneur
Entrepreneurship comes with a host of
challenges. Rewarding challenges, but harsh
challenges nonetheless. Experienced
entrepreneurs have to deal with this no matter
how long they’ve been in business trying to
establish a brand, adjust to match or exceed the
competition and keep your business profitable is
a challenge no matter how many years you’ve
been in business. But for new and young
entrepreneurs, there are some unique challenges
that are especially difficult to overcome.

21. If you’re just getting into the game, or you’re thinking about becoming an
entrepreneur, be prepared for these eight significant hurdles.
1. Abandoning another career
If you’re going to dedicate yourself to starting and nurturing a business to
success, it’s going to be nearly impossible to simultaneously manage
another career. You might be able to manage the infancy of your business
on the side, during weeknights and weekends, but if you want a chance of
growing significantly, invariably you’ll have to quit your day job. Walking
away from a promising, steady long-term opportunity for something
unpredictable is scary -- especially if you’ve never run a business before.
Unfortunately, there’s no easy way to address this. Just think through your
decision logically, and don’t ignore your instincts.
2. Financing
Experienced entrepreneurs don’t have it easy when it comes to funding a
new business, but they do have a few advantages over newcomers. They
might have a pool of capital from a business they previously sold or a
steady stream of revenue they can use to fund a new business’s cash flow.
Even if their first business went under, they’ve likely made investment
contacts and client connections necessary to give them a leg up in a new
enterprise.

22. 3. Teambuilding
This is especially hard if you’ve never run or managed a team before, but
even if you have management experience, picking the right team for a
startup is stressful and difficult. It’s not enough to find candidates who fill
certain roles you also need to consider their cost to the business, their
culture fit and how they’ll work as part of your overall team. Such
considerations are exceptionally hard when you’re under the pressure of
filling those positions as soon as possible.
4. Being the visionary
As the founder of your startup, you’ll be expected to come up with the
ideas. When a competitor emerges, it will be your responsibility to come
up with a response plan. When your team hits an impenetrable obstacle,
your job will be to come up with an alternative plan to move forward. This
demands on-the-spot creative thinking -- which should be an oxymoron,
but entrepreneurs rarely have the luxury of time. The less experience you
have, the more pressure you’ll feel from this, and the harder time you’ll
have coming up with acceptable plans.

23. 5. Dealing with the unknown
How long will your business exist? How profitable will your business be?
Will customers like your product? Will you be able to give yourself a
steady paycheck? None of these questions has a solid, reliable answer,
even in startups based on great ideas with all the resources they’d
theoretically need. That unknown factor means your job stability is going
to plummet, and many of your long-term plans will remain in flux as new
developments emerge. Dealing with this volatility is one of the hardest
parts of emerging as a new entrepreneur.
6. Loneliness
It’s a rarely mentioned problem of entrepreneurship, and many new
business owners aren’t prepared for it until it happens. Being an
entrepreneur is lonely. It’s a singular position, so you won’t have
teammates to rely on (completely). You’ll be working lots of hours, so you
won’t see your family as often. And your employees will be forced to
remain at a bit of a distance.

24. 7. Rule-making
It’s fun to be the boss until you have to enforce something. Sooner or
later, you’ll have to come up with the rules your business follows, from
how many vacation days your workers get to what the proper protocol is
when filing a complaint about a coworker. These details aren’t fun to
create, and they aren’t fun to think about, but they are necessary for
every business.
8. Decision-making
Believe it or not, this is probably the most stressful challenge on this list.
New entrepreneurs are forced to make hundreds of decisions a day, from
big, company-impacting decisions, to tiny, hour-affecting ones. Decision
fatigue is a real phenomenon, and most new entrepreneurs will
experience it if they aren’t prepared for the new level of stress. If you can
work your way past these major obstacles, you’ll be well on your way to
establishing yourself as an entrepreneur. That isn’t to say they won’t
continue to nag at you as the years go on, or that new and varied
challenges won’t arise to take their place, but you’ll be prepared to handle
yourself in those most volatile and impactful first few months -- and that
puts you far ahead of the competition.

28. Conclusion
• B-Schools have a significant role to play in the growth of India as a
nation because they are the breeding grounds for future
entrepreneurs. They have the potential to develop not only
winning personal qualities but also provide an opportunity to
create employment for self and for others. Entrepreneurship, self
employment and enterprise creation provide a solution to the
crises of both unemployment and under-employment. The B-
Schools help in increasing knowledge base, by identifying
opportunities, and by pointing out ways to overcome barriers
imposed by ones environment. They have a definite role in
enhancing entrepreneurship by enlarging the pool of
entrepreneurs in society. Therefore, the Indian government should
take appropriate measures to promote and develop
entrepreneurial education in India.

29. Thank you !!

30. Any queries ??

32. References
1.Finkle, T.A. (2012). Trends in the market for entrepreneurship faculty from
1989-2010., Vol. 15, pp. 1042-1055.
2. Gupta, A. (1992). The informal education of the Indian entrepreneur. , 9 (4).
3. Harrison, R. T., and Leitch, C. M. (1994). Entrepreneurship and Leadership:
The Implications for Education and Development. ,6(2), pp. 111-125.
4. Hitt, M. A. and Reed, T.S. (2000). Entrepreneurship in the new competitive
landscape. In
(eds.) Meyer, G.D. and Heppard, K.A. Thousand Oaks: Sage Publications.
5. Hostager, T.J. and R.L. Decker. (1999). The effects of an entrepreneurship
program on achievement motivation: A preliminary study. , San Francisco,
CA: Small Business Institute Director's Association,
http://www.sbaer.uca.edu/Research/1999/SBIDA/sbi28.htm.
6. Ivancevich, J. M. (1991). A Traditional Faculty Member's Perspective on
Entrepreneurship, 6(1), pp. 1-7. International Journal of Academic
Research ISSN: 2348-7666 Vol.2, Issue-2(7), April-June, 2015