Introduction to economically.

Either way in the concept of

entrepreneurship, it is a key factor.
Entrepreneurship
Four Key Elements of Risk-Taking
Entrepreneurship Entrepreneurship and risk-taking go hand in
Entrepreneurship is the oldest form of hand. One of the most important features of
business organization in the world. In fact, entrepreneurship is that the whole business
the concept of entrepreneurship is believed is run and managed by one person. So
to be born in the 1700’s! Over time it has there is no one to share the risks with.
evolved to keep up with the changes in our
world. Let us learn about the Four Key Not taking any risks can stagnate a
Elements of Entrepreneurship. business and excessive impulsive risk-
taking can cause losses. So a good
Concept of Entrepreneurship entrepreneur knows how to take and
Before proceeding further, let us first manage the risks of his business. But the
understand the concept of entrepreneurship willingness of an entrepreneur to take risks
and its importance to the economy. An gives them a competitive edge in the
entrepreneur is the sole owner and economy. It helps them exploit the
manager of his business. Actually, the word opportunities the economy provides.
translates to “the one who undertakes” in
French. Vision
Vision or foresight is one of the main driving
From an economics point of view, an forces behind any entrepreneur. It is the
entrepreneur is the one who bears all the energy that drives the business forward by
risk of a business. And in return, he gets to using the foresight of the entrepreneur. It is
enjoy all of the profits from the business as what gives the business an outline for the
well. While understanding the concept of future – the tasks to complete, the risks to
entrepreneurship we will also learn about take, the culture to establish, etc.
the importance of entrepreneurs in the
economy. They bring in new goods, All great entrepreneurs of the world that
services, technologies, etc. to the market. started with an entrepreneurship business
are known to have great vision. This helps
Four Key Elements of Entrepreneurship them set out short term and long term goals
After having studied the concept of for their business and also plan ways to
entrepreneurship, now let us look at some achieve these objectives.
key elements that are necessary for
entrepreneurship. We will be looking at four Organization
of the most important elements. In entrepreneurship, it is essentially a one-
man show. The entrepreneur bears all the
Innovation risks and enjoys all the rewards. And sure
An entrepreneur is the key source of he has the help of employees and middle-
innovation and variation in an economy. It is level management, yet he must be the one
actually one of the most important tools of in ultimate control. This requires a lot of
an entrepreneurs success. They use organization and impeccable organizational
innovation to exploit opportunities available skills.
in the market and overcome any threats.
An entrepreneur must be able to manage
So this innovation can be a new product, and organize his finances, his employees,
service, technology, production technique, his resources, etc. So his organizational
marketing strategy, etc. Or innovation can abilities are one of the most important
involve doing something better and more elements of entrepreneurship.
Solved Question on Concept of to be empowered to fully direct the
Entrepreneurship endeavor.
Q: Entrepreneurship is an Art.
Peter Drucker has famously said that Being an entrepreneur is not directly related
entrepreneurship is not an art or a science. to having an equity stake in a company, but
In fact, it is a knowledge-based practice that instead showcases the leadership-related
provides a means to an end. points. Why do we tend to associate
entrepreneurship with equity ownership (as
value), instead of understanding it as the
Who Is An Entrepreneur? one that has the highest stakes in an
Last week in one of our afkar.me, our endeavor, which sometimes gets translated
incubation/acceleration initiative for the into entrepreneurship?
MENA market, our youngest team member
made a quite interesting statement when we Entrepreneurship is more than financial
were discussing our value proposition for gains
"treps: "Well, you know that I'm not an We tend to associate entrepreneurship with
entrepreneur, so I can just try to think like direct financial benefits and risk, but not
one." only when the entrepreneur has equity in
the company, he or she is exposed to the
1. An entrepreneur is a starter. An financial upsides and downturns. Corporate
entrepreneur is an initiator, a ventures and corporate entrepreneurship
challenger and a driver. Someone allows "corporate entrepreneurs" to benefit
that creates something new, either of the upsides of their projects without
an initiative, a business or a having equity stakes.
company. He or she is the beginning
(and sometimes the end) of a Corporate entrepreneurship does exist
venture, project or activity. The Traditional corporate culture tends to
entrepreneur might not be the disregard the entrepreneurial approach.
ideator, but he or she is definitely the However, with the proliferation of new
one that decides to make that idea a startups and disruptive innovations,
reality. corporations have been forced to embrace
2. An entrepreneur is the driver. The the entrepreneurial approach towards
entrepreneur is the person in running and operating their business. An
charge, the leader and the person to entrepreneurial approach is not only more
look to for leadership. He or she is agile and dynamic, but also results in a
the one that pushes forward and more lean operation. By providing a strong
inspires a team to follow. The level of staff empowerment, you create a
entrepreneur is the one that sits in strong sense of ownership, which results in
the driver's seat, and has the ability better outcomes for any endeavor.
to change direction, accelerate, slow
down or even stop a venture. Passion is the real drive
3. An entrepreneur is accountable There is another element that really dwells
and responsible. The entrepreneur at the center of any entrepreneur: passion!
is the ultimate responsible for the An entrepreneur possesses an interior fuel
destiny of its venture, which can be and stamina that drives his or her actions;
a company, a project, or any other this superior energy helps to overtake and
endeavor. The entrepreneur is the surpass the different challenges and it
one that has the highest stakes at injects strength to continue pursuing goals
the venture, thus the one that needs when difficulties arise. Anyone can be an
entrepreneur and behave like one-
regardless of whether or not they happen to
be an equity holder. Ultimately, it's all about opportunity in the market and
the attitude when running the show. capitalizes on it.

He is the one who introduces new

Traits and Characteristics of an products and services in the market
trying to fulfil customer needs. The
Entrepreneur innovation can also be in a
Entrepreneurship is the oldest form of
production process, new marketing
business organization. It is in fact
strategy, innovative advertising etc.
entrepreneurs that bring innovation into our
economy with new products and services.
3. Risk Taker
They drive a nation’s economy towards
A risk is an integral part of any new
development and progress. Let us explore
business. But it is an especially
some of the traits and characteristics of an
important factor in entrepreneurship
entrepreneur.
because here the entrepreneur
bears the entire risk of the business.
As we look back in history we see the
So it is necessary that the
success stories of many accomplished and
entrepreneur has an adventurous
well-known entrepreneurs. If you read about
and risk-taking personality.
them, you will realize no two stories are the
same.
4. Leader
One of the other important qualities
Everybody has their own path to success.
of a successful entrepreneur is
However, there are a few common traits
leadership. All good entrepreneur
and characteristics that all successful
are good leaders.
entrepreneurs have in common. Let us take
a look at a few such traits.
They have the ability to motivate and
lead their employees to success.
1. Vision and Passion
They also have the tenacity,
An entrepreneur must have a very
knowledge, and skill to pull their
clear vision of his business. So he
businesses from a tight corner like
must have the ability to plan out his
good leaders.
long term and short term goals and
objectives. He has to be able to map
5. Persistent
out his future plans in an articulate
A good entrepreneur is always
and efficient manner.
persistent by nature. A business is
never an overnight success. It takes
Another very important trait
immense hard work and also a little
necessary in an entrepreneur is that
bit of luck.
he must be passionate about his
work. Entrepreneurship is hard work
But a persistent entrepreneur makes
and long hours, so he must be
his own luck. He can create
passionate about what he is doing.
opportunities if they are not
Such passion can translate into hard
presented to him. So a persistent
work and success.
entrepreneur that works tirelessly
always has a greater chance of
2. Innovative
success.
One of the main characteristics of
entrepreneurship is innovation. The
6. Ethical
entrepreneur looks for the
Ethics and integrity are the
cornerstones of any successful
 business in the long term. A
sustainable business cannot be run
by someone with compromised
morals.

So any credible business must have

at its head an ethical entrepreneur
who upholds the letter of the law and
the integrity of the business.

7. Competitive Spirit
The business world is a very cut-
throat space. Thousands of new
businesses born and die every day.
So the competition is always going
to be fierce and intense.

Such an environment is better suited

to someone who is already
competitive by nature and thrives in
such situations of pressure.

8. Resilient
And finally one of the most important
traits in a successful entrepreneur is
resilience. There is no smooth
straightforward path to success.

There will always be some failures

and roadblocks in the way. So the
entrepreneur has to be resilient and
steadfast in his pursuit of success.

Solved Question on Characteristics of an

Entrepreneur
Q: A good entrepreneur is always oriented
towards the future.
A good entrepreneur always focusses on
the future. He learns from his past to be
able to improve his future.
 Unit - 4 : Entrepreneur: Types and Functions
Structure of Unit:
4.0 Objectives
4.1 Introduction
4.2 Types of Entrepreneur
4.3 Functions of Entrepreneurs
4.4 Role of Entrepreneurs
4.5 Entrepreneur vs. Entrepreneurship
4.6 Entrepreneurial Failure
4.7 Summary
4.8 Self Assessment Questions
4.9 Reference Books

4.0 Objectives
After completing this unit, you will be able to:
 Classify different types of entrepreneurs on various bases.
 Look at the reasons for entrepreneurial failure.
 Describe the various functions of entrepreneurs.
 Understand the role and significance of entrepreneur in economic development
 Establish a relationship between entrepreneur and entrepreneurship.
 Come across the rewards and challenges of being an entrepreneur.

4.1 Introduction
The role of entrepreneurs in economic development varies from economy to economy, country to country,
depending upon its material resources, industrial climate and more importantly, the responsiveness of the
political system to the growth of entrepreneurs. Liberalization and the new economic policy have thrown
upon the doors for every entrepreneur to seek its own fortunes and thus contribute to the growth of the
economy. And entrepreneur is an important input of economic development. He is a catalyst of development.
Only the entrepreneurs create capital, wealth and resources in a country by their inventive and risk-taking
behaviour. They are the prime movers of industrial development in a country. Entrepreneurs are found in
every economic system and in every type of economic activity. Artisans, traders, importers, engineers,
exporters, bankers, industrialists, farmers, forest workers, tribal’s, professionals, politicians, and bureaucrats,
any one from these could be entrepreneur. The nature of entrepreneurs differs according to their functions.

4.2 Types of Entrepreneur

Researchers who have studied entrepreneurial behaviour suggest that there are different types of
entrepreneurs. Classifying entrepreneurs into various categories is a tricky issue. The taxonomy of
entrepreneurs can be carried out in various ways. Entrepreneurs can be classified on various basis. Clarence
Denhof Classifies entrepreneurs on the basis of stage of economic development: some others have classified
on the basis of their functions and characteristics. In the initial stages of economic development, entrepreneurs
tend to have less initiative and drive. As development proceeds, they become more innovating and
enthusiastic. The various types of entrepreneurs are classified on certain parameters. Some important
classifications are described below:

56
1. On the Basis of Economic Development: Clarence Danhof classified entrepreneurs into four groups
on the basis of economic development.
A. Innovating Entrepreneurs: This type of entrepreneurship is characterized by aggressive
assemblage of information and the analysis of results deriving from novel combination of factors of
production. Entrepreneurs falling in this class are generally aggressive in experimentation and exhibited
shrewdness in putting attractive possibilities into practice.
They are the entrepreneurs who have creative and innovative ideas of starting a new business. An
innovating entrepreneur sees the opportunity for introducing a new technique or a new product or a
new market. He may raise money to launch an enterprise, assemble the various factors, and choose
top executives and the set the organization going. Schumpeter’s entrepreneur was of this type.
Innovative entrepreneurs thus, results in the creation of something new. They are the contributors to
the economic development of a country.
Innovating entrepreneurs are very commonly frond in undeveloped countries. There is dearth of
such entrepreneurs in developed countries. Innovating entrepreneurs played the key role in the rise
of modern capitalism, through their enterprising sprit, hope of moneymaking, ability to recognize
and exploit opportunities, etc.
B. Adoptive or Imitative Entrepreneur: There is a second group of entrepreneurs generally
referred as imitative entrepreneurs. The imitative entrepreneurs copy or adopt suitable innovations
made by the innovative entrepreneurs. They does not innovate the changes himself. They only
imitates technology innovated by others.
Such entrepreneurs are particularly important in developing courtiers because they contribute
significantly to the development of such economies. Imitative entrepreneurs are most suitable for the
developing regions because in such countries people prefer to imitate the technology, knowledge
and skill already available in more advanced countries. In highly backward countries there is shortage
of imitative entrepreneurs also. People who can imitate the technologies and products to the particular
conditions prevailing in these countries are needed.
Sometimes, there is a need to adjust and adopt the new technologies to their special conditions.
Imitative entrepreneurs help to transform the system with the limited resources available. However;
these entrepreneurs face lesser risks and uncertainty then innovative entrepreneurs. While innovative
entrepreneurs are creative, imitative entrepreneurs are adoptive.

C. Fabian Entrepreneur: The third type is Fabian entrepreneur. By nature these entrepreneurs
are shy and lazy. This type of entrepreneurs have neither will to introduce new changes nor desire to
adopt new methods of production innovated by the most entrepreneurs. They follow the set
procedures, customs, traditions and religions. They are not much interested in taking risk and they
try to follow the footsteps of their predecessors. Usually they are second generation entrepreneur in
a business family enterprise.

D. Drone Entrepreneur: The fourth type is Drone entrepreneurs who refuse to copy or use
opportunities that come on their way. They are conventional in their approach and stick to their set
practices products, production methods and ideas. They struggle to survive not to grow. They may
be termed as Laggards. In such cases the organization looses market, their operations become
uneconomical and they may be pushed out of the market.

57
2. On the Basis of Type of Business: Under this category we can classify entrepreneurs as described
below:
A. Business Entrepreneurs: They are the entrepreneurs who conceive an idea for a new product
or service and then create a business to materialize their idea into reality. They tap the entire factor
of production to develop a new business opportunity. They may set up a big enterprise or a small
scale business. When they establish small business units they are called small business entrepreneurs.
In a majority of cases, entrepreneurs are found in small trading and manufacturing business.

B. Trading Entrepreneur: There entrepreneurs undertake trading activities and are not concerned
with the manufacturing work. They identifies potentiality of their product in markets, stimulates
demand for their product line among buyers. They may go for both domestic and overseas trade.
These entrepreneurs demonstrated their ability in pushing many ideas ahead which promoted their
business.

C. Industrial Entrepreneur: Industrial entrepreneur is essentially a manufacturer who identifies

the needs of customers and creates products or services to serve them. He is product-oriented who
starts through an industrial unit to create a product like electronic industry, textile unit, machine
tools.

D. Corporate Entrepreneur: These entrepreneurs used his innovative skill in organizing and
managing a corporate undertaking. A corporate undertaking is a form of business organisation
which is registered under some statute or Act like a trust registered under the Trust Act, or a
company registered under the Companies Act. These corporate work as separate legal entity. He is
thus an individual who plans, develops and manages a corporate body.

E. Agricultural Entrepreneur: Agricultural entrepreneurs are those who undertake agricultural

activities as through mechanization, irrigation and application of technologies to produce the crop.
They cover a broad spectrum of the agricultural sector and include agriculture and allied occupations.

3. According to the Use of Technology: The application of new technology in various sectors of the
national economy is essential for the future growth of business. We may broadly classify these entrepreneurs
on the basis of the use of technology as follows:

A. Technical Entrepreneurs: With the decline of joint family business and the rise of scientific and
technical institutions, technically qualified persons have entered the field of business. These
entrepreneurs may enter business to commercially exploit their inventions and discoveries. Their
main asset is technical expertise. They raise the necessary capital and employ experts in financial,
legal- marketing and other areas of business. Their success depends upon how they start production
and on the acceptance of their products in the market.

B. Non-technical Entrepreneur: Non-technical entrepreneurs are those who are not concerned
with the technical aspects of the product or service in which they deal. They are concerned only
with developing alternative marketing and promotional strategies for their product or service.

C. Professional Entrepreneur: Professional entrepreneur is an entrepreneur who is interested in

establishing a business but does not have interest in managing it after establishment. A professional
entrepreneur sells out the existing business on good returns and starts another business with a
58
 new idea. Such an entrepreneur is dynamic and conceives new ideas to develop alternative projects.

4. According to Motivation: Motivation is the main force that promotes the efforts of the entrepreneur to
achieve his goals. An entrepreneur is motivated to achieve or prove his excellence in their performance.
According to motivation we can classify entrepreneur as:.

A. Pure Entrepreneur: A pure entrepreneur is the one who is motivated by psychological

economical, ethical considerations. He undertakes an entrepreneurial activity for his personal
satisfaction in work, ego or status.

B. Induced Entrepreneur: This type of entrepreneur is one who induced to take up an

entrepreneurial task due to the policy reforms of the government that provides assistance, incentives,
concessions and other facilities to start a venture. Most of the small scale entrepreneurs belong to
this category and enter business due to financial, technical and several other facilities provided to
them by the various agency of Govt. to promote entrepreneurship. Today, import restrictions and
allocation of production quotas to small units have induced many people to start a small scale unit.

C. Motivated Entrepreneur: New entrepreneurs are motivated by the desire for self-fulfillment.
They come into being because of the possibility of making and marketing some new products for
the use of consumers. They are motivated through reward like profit.

5. According to Growth: The industrial units are identified as high growth, medium growth and low growth
industries and as such we have ‘Growth Entrepreneur’ and ‘Super Growth Entrepreneur.’

A. Growth Entrepreneur: He necessarily takes up a high growth industry and chooses an industry
which has sustained growth prospects. Growth entrepreneurs have both the desire and ability to
grow as fast as large as possible.

B. Super-Growth Entrepreneur: This category of entrepreneurs is those who have shown

enormous growth of performance in their venture. The growth performance is identified by the high
turnover of sales, liquidity of funds, and profitability.

6. According to Entrepreneurial Activity: Based on entrepreneurial activity, entrepreneurs are classified

as novice, serial, and portfolio entrepreneur.

A. Novice Entrepreneur: A novice is someone who has started his/her first entrepreneurial venture.
A novice entrepreneur is an individual who has no prior business ownership experience as a business
founder, inheritor of a business, or a purchaser of a business. It is not similar to early starter; a
novice can also be a 50 year old with over 25 years of experience in the industry.

B. A Serial Entrepreneur: A Serial Entrepreneur is someone who is devoted to one venture at a

time but ultimately starts many. It is the process of starting that excites the starter. Once the business
is established, the serial entrepreneur may lose interest and think of selling and moving on.

C. Portfolio Entrepreneur: A portfolio entrepreneur is an individual who retains an original business

and builds a portfolio of additional businesses through inheriting, establishing, or purchasing them. A
portfolio entrepreneur starts and runs a number of businesses. It may be a strategy of spreading risk
or it may be that the entrepreneur is simultaneously excited by a variety of opportunities. Also, the
entrepreneur may see some synergies between the ventures.

59
7. Other Entrepreneurs:
A. First-Generation Entrepreneurs: This category consists of those entrepreneurs whose parents
or family had not been into business and was into salaried service. The booming economy of India
has led to a multitude of business opportunities, and with deregulation, it has become easier to set
up businesses. Also, with a change in the mindset of the middle class, it is now more acceptable to
become an entrepreneur. A first-generation entrepreneur is one who starts an industrial unit by
means of an innovative skill. He is essentially an innovator, combining different technologies to
produce a marketable product or service.
B. Modern Entrepreneur: A modern entrepreneur is one who undertakes those businesses which
go well along with the changing scenario in the market and suits the current marketing needs.
C. Women Entrepreneurs: Women as entrepreneurs have been a recent phenomenon in India.
The social norms in India had made it difficult for women to have a professional life. Now this has
changed. Progressive laws and other incentives have also boosted the presence of women in
entrepreneurial activity in diverse fields. In 1988, for the first time, the definition of Women
Entrepreneurs’ enterprise was evolved that termed an SSI unit/industry-related service or business
enterprise, managed by one or more women entrepreneurs in proprietary concerns, or in which
she/they individually or jointly have a share capital of not less than 51 per cent as partners /
shareholders / directors of a private limited company / members of a cooperative society, as a
Woman Enterprise.
D. Nascent Entrepreneur: A nascent entrepreneur is an individual who is in the process of starting
a new business.
E. Habitual Entrepreneur: Ahabitual entrepreneur is an individual who has prior business ownership
experience. The nascent entrepreneur can either be a novice or a habitual entrepreneur.

F. Lifestyle Entrepreneurs: Lifestyle entrepreneurs have developed an enterprise that fits their
individual circumstances and style of life. Their basic intention is to ear an income for themselves
and their families.

G. Copreneurs: It is related to the married couples working together in a business. When a married
couple share ownership, commitment and responsibility for a’ business, they are called “copreneurs”.
As copreneurs, couples struggle in ventures to establish equality in. their relationships. Such couples
represent the dynamic interaction of the systems of love and work.
H. IT Entrepreneurs: IT entrepreneurs are creating a new business platform that takes them
straight to the top. They are confident, ambitious innovative and acquired creativity in the competitive
global environment and created a niche of their self. They are the brave new bunch of entrepreneurs
who are raring to take on the world of information technology.

I. Social Entrepreneur: Social entrepreneur is one who recognizes the part of society which is
stuck and provides new ways to get it unstuck. Be it dedicated efforts for child upliftment, fighting
for the conservation of Assam’s rainforests, working for the betterment of the blind or initiatives to
empower women, the entrepreneur’s passion is very strong. Freedom, wealth, exposure, social
mobility and greater individual confidence are driving this huge wave of social innovation and
entrepreneurship. After all are tired with the Inefficiency of governments and the indifference of
corporate, and want to make a change and this is the case everywhere.

60
 J. Forced Entrepreneurs: The money-lenders of yesterday, who are thrown out of their family
business because of govern­ment legislation, the neo­rich Indians returning from abroad and the
educated unemployed seeking self-employment form this class of entrepreneurs.

K. Individual and Institutional Entrepreneurs: In the small scale sector individual entrepreneurs
are dominant. Small enterprises outnumber the large ones in every country. Such entrepreneurs
have the advantage of flexibility, quick decision making. But a single individual can establish, operate
and control an organization up to a limit. Thereafter, it becomes necessary to institutionalize
entrepreneurship. The business will have to acquire a number of new entrepreneurial skills through
a corporate body. A group of entrepreneurs has to be developed to handle the increasingly complex
network of decision making. The central function of the entrepreneur remains the same but the basic
decisions like the line of business, the amount of capital employed, etc. are taken collectively by the
promoters at the helm of affairs. Thus, individual entrepreneur and institutional entrepreneur coexist
and support each other. Corporate sector the symbol of institutionalized entrepreneurship.

L. Entrepreneurs by Inheritance: At times, people become entrepreneurs when they inherit the
family business. In India, there are a large number of family controlled business houses. Firms in
these houses are passed from one generation to another.

The various types of entrepreneur based on certain basis are also explained in the figure 4.1:

On the basis of Innovative

Imitative
Economics development Fabian
Drone

Business
Trading
On the basis of Industrial
type of business Corporate
Agriculture

Technical
According to Non-technical
use of technology Professional

Pure
According ot Induced
motivation Motivated

According Growth
to growth Super growth

According to Novice
entrepreneurial activity Serial
Portfolio

Fist generation
Modern
Other Women
Nascent
IT entrepreneur Habitual
Social entrepreneur Life style
Institutionalized Copreneurs
Forced entrepreneur By inheritance

Figure 4.1 : Types of Entrepreneurs

61
60 Reasons Why company-branded baseball hat daily.
He is the boss -- he can wear
Entrepreneurship Is Amazing whatever he wants.
Every entrepreneur has a different story
about why he or she decided to start a
6. You have the opportunity to
business. Some have known from day one
change lives. Have an idea for a
that they wanted to work for themselves and
product or service that has the
others come up with ideas while working for
potential to make a huge impact? Go
someone else and decide to take the
for it -- nothing is stopping you!
entrepreneurial leap.
7. You have full control over your
Most business owners will agree on one
workspace. Do you excel in a
thing -- being an entrepreneur is great.
creative environment? Want an
There are endless reasons for this, and
office with dry-erase paint so you
every entrepreneur will have his or her own
can draw on the walls and a full
personal reasons as well. Here are 60
espresso bar to keep you full of
reasons, in no particular order, why I think
caffeine? Make it happen!
entrepreneurship is amazing.
1. You have full control over your
8. It provides a rush that is hard to
destiny. You call the shots and
duplicate. There is no greater shot
make the decisions that ultimately
of adrenaline than the one you
determine the success or failure of
receive after reaching a goal and
your business. Nobody will get in the
knowing you worked extremely hard
way of your vision.
to get to that point.
2. Entrepreneurs are innovators.
9. You serve as a role model. As an
Think of all the new technology and
entrepreneur, people will look up to
ideas that have come to life over the
you. You have the ability to be a role
past few years. Those were all once
model for family, friends, employees
just an idea -- but amazing
and community members. Your
entrepreneurs brought those ideas
success serves as motivation and
to life.
inspiration.
3. You become part of a family. The
10. You will never be bored. There is
entrepreneurial culture is almost like
always something to do and you will
a big family -- and you won't find a
more than likely always have a mile
better group of people willing to offer
long to-do list. Every day presents
advice and help than fellow
new challenges and new
entrepreneurs.
opportunities to keep you on your
toes.
4. You control who represents your
brand. The team you surround
11. Freedom to travel. Modern
yourself with plays a major role in
technology, remote employees and
your success -- you can assemble a
the Internet allow you the freedom to
team of like-minded individuals that
travel while still running your
share your same drive and passion.
business. Being able to see the
world while creating an amazing
5. No dress code. CEO and Founder
company is a realistic possibility.
of Vivint, Todd Pedersen, was
recently on the TV show Undercover
12. There is no age barrier.
Boss and stated that he wears a
Entrepreneurs are starting at very
 young ages -- some straight out of something better or more efficient?
college, some while still in high Make it happen!
school and even children as young
as 9 years old that want to create 20. Spend more time with family.
healthy treats. Entrepreneurs with children have the
ability to adjust their schedules to
13. Your mind will always be utilized. attend school functions and
Every single decision that involves activities.
your business is your responsibility,
from the initial concept and branding 21. You get out what you put in. If you
to the growth and goal setting. are willing to work harder than
anyone else, you will be rewarded
14. The satisfaction of saying you're a accordingly. Want to experience
business owner. It is a great feeling more growth and opportunities?
to be able step back and say, "this is Simply work harder.
my company," while proudly holding
your head up. Being an entrepreneur 22. Provide opportunities for family
takes an incredible amount of work - members. Many will say that mixing
- those few words feel so good family and business partnerships is
coming out of your mouth. a bad idea (and I agree) -- but this is
less of an issue when talking about
15. Go cubicle free. Entrepreneurs have an employer/employee relationship.
total freedom to roam, create,
delegate and work. There are no 23. Opportunity to give back. Owning a
cubicles or desks to be tied to all business gives you the opportunity
day. to support local charity events, local
schools and nonprofit organization.
16. No blame game. As an Being able to make a difference in
entrepreneur, there is no finger- your community is a great feeling.
pointing when something goes
wrong. Knowing every decision that I 24. Become healthier. A flexible
make daily directly impacts my schedule allows you to create a
business is the best kind of fitness routine and stick to it. Hit the
motivation. gym early in the morning, at lunch or
in the evening -- whatever works for
17. You never feel undervalued. If you you.
have ideas to make the business
better you can implement them right 25. Enjoy your hobbies. As long as you
away -- you don't have to hope that "do the work" and give 100 percent
someone in a higher position will when in work mode, your free time
give you the time of day and listen to can be spent doing the things you
your suggestions. love. Attend more sporting events,
play more rounds of golf or fish
18. Creating something from nothing. more. Being an entrepreneur
Every business starts as an idea. provides you with the ability to enjoy
You get to create it from the ground your hobbies more.
up.
26. You contribute to society. You can
19. Opportunity to make a better directly impact society by introducing
mousetrap. Have an idea to make a service or product that people use.
27. No more frantically checking the 34. Turn your passion and beliefs into a
time. How many times does the 9-to- business. Are you passionate about
5 crowd check the clock daily? health and fitness? Become a
Often. As an entrepreneur your time nutritional consultant or open a gym.
management balance is key. Your You have the ability to create a
day ends when your tasks and business as well as impact people
responsibilities are taken care of. through your passions and beliefs.

28. You report to nobody. There is no 35. You can make people happy. There
boss to report to and you don't have is a good chance you own an Apple
to get expense requests approved. If product -- an iPhone, MacBook,
you want to do something you iMac, iPod or iPad. These products
believe will help your business there bring a smile to faces of millions
is no red tape to navigate through. every single day. Sure, Apple is
making billions of dollars, but they
29. It'll be one of the biggest challenges are also making their customers
you will face. Leading a company happy.
and team members on a growth path
is a huge challenge. The obstacles 36. You will never hit a ceiling. Some
you face along the way will provide jobs have a growth cap and you can
you with an experience you won't only advance so far. When you are
find anywhere else. an entrepreneur, there is no growth
ceiling.
30. No career hamster wheel. Imagine
doing the same thing every day for 37. Earn a living doing what you love.
as long as you work. Thankfully, as Let's face it, money is important.
an entrepreneur you don't have to When you are able to make a
worry about this -- you wear multiple comfortable living doing what you
hats and play a variety of roles. love it's a win-win situation.

31. The ability to pivot. If your business 38. Feeling appreciated is great. It's a
model slows down, you have the great feeling when you receive an
freedom to pivot. Think of how many email or phone call from someone
businesses died because of the that took time out of his or her day to
Internet. The ones with good leaders let you know that your business
simply pivoted and made impacted them in a positive way.
adjustments to survive.
39. Build your own security. It doesn't
32. You get to work with brilliant minds. get any more secure than controlling
As an entrepreneur you will connect your own destiny. You will never
with extremely intelligent people stress about having the wrong
from all over the world. You person in charge of a business.
encounter brilliant minds on your
team and through business 40. You get to constantly learn. As an
relationships. entrepreneur you are always
learning lessons -- sometimes the
33. Create a legacy. Creating a hard way. It is a priceless education
successful brand to the point where that you can't get in a classroom.
it leaves a personal legacy behind is
appealing and serves as motivation 41. Eliminate downsizing or layoff fears.
for many entrepreneurs. Businesses make cuts and lay off
 employees daily. That can be your employees to work from home
extremely stressful. When you on Fridays? How about providing in-
become an entrepreneur this fear office daycare to allow your
doesn't exist. employees to bring their children to
work? You get to develop the
42. Bad days could always be worse. A corporate culture that you believe
bad day as an entrepreneur is better will provide the best environment for
than a bad day working for someone success and excellence.
else.
50. Experience personal growth. It is a
43. No degrees or pieces of paper stand great feeling when you look back
in your way. You don't have to have and see how much you have grown
a degree from an Ivy League school as an individual. The growth and
to start a business. In fact, some of success of a business is often
the most successful tech billionaires directly related to the personal
dropped out of college. growth of the entrepreneur behind it.

44. You get to push the envelope. There 51. You become an expert problem
are no boundaries -- create, invent solver. As a business owner you
and disrupt as you wish. This is how become very resourceful and over
brilliant ideas are born. time you will learn to overcome
anything and solve any problem
45. Satisfy your personal curiosity. Most placed in front of you.
entrepreneurs are curious -- will my
idea work? Can I grow this into a 52. It never feels like work. Some might
sustainable business? Can I be a disagree -- but that just means they
good leader? haven't found what they truly love to
do. Once you do find that you will
46. No more boring meetings. Gone are never refer to what you do as work.
the days of boring meetings -- now,
if you are in a boring meeting, you 53. Even learning disabilities can't stop
have nobody to blame but yourself. you. Johnny Earle, the creator of the
brand Johnny Cupcakes, is proof
47. Media and press acknowledgement. that not even a learning disability
When your company receives media can stop an entrepreneur from
coverage and validation it is succeeding. If you don't know
extremely satisfying. Recognition for Johnny's story watch this video for
the hard work you put in helps fuel some inspiration.
your inner fire.
54. Endless life experiences. You get to
48. You become a provider. As an travel to new places and interact
entrepreneur you will become a with different people all the time.
provider for many. Your employees What some might see as just a
will depend on your leadership and business conference, you see as an
decision-making, as it will directly opportunity to visit a new part of the
impact their livelihood and well- world and meet people you would
being. never have met otherwise.

49. Create your own corporate culture. 55. You develop an iron jaw. You are
You get to create a corporate culture going to get hit and knocked down.
based on your beliefs. Want to allow Learning to take the punches and
 continuing to get up turns you into a of earning returns and rewards, from that
stronger business owner and business. He is the most important person
individual. who envisions new opportunities, products,
techniques and business lines and
56. You get to walk on the wild side. coordinates all the activities to make them
When you put your own livelihood real.
and finances on the line because
you believe in something 100 On the contrary, an intrapreneur is an
percent, it becomes an extreme employee of the organization who is paid
rush. remuneration according to the success of
the business unit, for which he/she is hired
57. You conduct your own performance or responsible.
review. Sales, company morale,
growth and customer feedback can The primary difference between an
all be used to judge your entrepreneur and intrapreneur is that the
performance -- not some person with former refers to a person who starts his own
a clipboard and a generic Q&A business with a new idea or concept, the
review test. latter represents an employee who
promotes innovation within the limits of the
58. You can get competitive with organization. In this article excerpt, we are
yourself. Entrepreneurs are providing you with some other important
competitive by nature. The goal is to points of distinction between the two.
constantly improve and grow, so turn
it into a personal competition. Can BASIS FOR ENTREPRENEUR INTRAPRENEUR
you make more business contacts COMPARISON
today than you did yesterday? Can Meaning Entrepreneur Intrapreneur
you motivate your sales team to refers to a refers to an
crush the numbers from yesterday? person who employee of
set up his own the
59. It enables you to dream big. No idea business with organization
is too crazy and no goal is too big a new idea or who is in
when you are an entrepreneur -- you concept. charge of
can dream as big as you want! undertaking
innovations in
60. You don't have to be lucky. Luck has product,
nothing to do with being successful. service,
Thinking it does is just an excuse process etc.
that prevents you from achieving
success. Approach Intuitive Restorative

Resources Uses own Use resources

Difference Between resources. provided by
Entrepreneur and Intrapreneur the company.
As both entrepreneur and intrapreneur
share similar qualities like conviction, Capital Raised by him. Financed by
creativity, zeal and insight, the two are used the company.
interchangeably. However, the two are
different, as an entrepreneur is a person Enterprise Newly An existing
who takes a considerable amount of risk to established one
own and operate the business, with an aim
 Dependency Independent Dependent objective of transforming them into a
successful venture of the enterprise.
Risk Borne by the Taken by the
entrepreneur company. The intrapreneurs believe in change and do
himself. not fear failure, they discover new ideas,
looks for such opportunities that can benefit
Works for Creating a Change and the whole organisation takes risks,
leading renew the promotes innovation to improve the
position in the existing performance and profitability, resources are
market. organizational provided by the organisation. The job of an
system and intrapreneur is extremely challenging; hence
culture. they are appreciated and rewarded by the
organisation accordingly.

Definition of Entrepreneur From last few years, it has become a trend

An entrepreneur is an individual who that large corporations appoint intrapreneur
conceives the idea of starting a new within the organisation, to bring operational
venture, take all types of risks, not only to excellence and gain competitive advantage.
put the product or service into reality but
also to make it an extremely demanding Key Differences Between Entrepreneur
one. He is someone who: and Intrapreneur
• Initiates and innovates a new The important distinguishing points between
concept, entrepreneur and intrapreneur, are given in
• Recognises and utilises opportunity, the following points:
• Arranges and coordinates resources 1. An entrepreneur is defined as a
such as man, material, machine and person who establishes a new
capital, business with an innovative idea or
• Take suitable actions, concept. An employee of the
• Faces risks and uncertainties, organisation who is authorised to
• Establishes a startup company, undertake innovations in product,
• Adds value to the product or service, service, process, system, etc. is
known as Intrapreneur.
• Takes decisions to make the product
2. An entrepreneur is intuitive in nature,
or service a profitable one,
whereas an intrapreneur is
• Is responsible for the profits or
restorative in nature.
losses of the company.
3. An entrepreneur uses his own
Entrepreneurs are always the market leader
resources, i.e. man, machine,
regardless of the number of competitors
money, etc. while in the case of an
because they bring a relatively new concept
intrapreneur the resources are
in the market and introduce change.
readily available, as they are
provided to him by the company.
Definition of Intrapreneur
4. An entrepreneur raises capital
An intrapreneur is nothing but an
himself. Conversely, an intrapreneur
entrepreneur within the boundaries of the
does not need to raise funds himself;
organisation. An intrapreneur is an
rather it is provided by the company.
employee of a large organisation, who has
5. An entrepreneur works in a newly
the authority of initiating creativity and
established company. On the other
innovation in the company’s products,
hand, an intrapreneur is a part of an
services and projects, redesigning the
existing organisation.
processes, workflows and system with the
6. An entrepreneur is his own boss, so
he is independent to take decisions.
 As opposed to intrapreneur, who from scratch. Eventually, you will need to
works for the organisation, he save enough money to put into business.
cannot take independent decisions. Then you have to build connections like
7. This is one of the salient features of crazy and think through all possible funding
an entrepreneur; he is capable of options before you drown in debt.
bearing risks and uncertainties of the
business. Unlike intrapreneur, in LACK OF EXPERIENCE
which the company bears all the A lot of young entrepreneurs have given up
risks. the process because of lack of experience.
8. The entrepreneur works hard to This deficiency fosters self-doubt, stress,
enter the market successfully and and anxiety making you afraid.
create a place subsequently. In Unfortunately, the only way to overcome
contrast to Intrapreneur, who works this is to change yourself. Join some
for organization-wide change to training and educate yourself. You need to
bring innovation, creativity and fill yourself with inspiration by reading books
productivity. from popular financial authors like Warren
Buffet.
Conclusion
Since, last few decades, it has been noticed SELF LIMITATION
that people give more value to innovations, You are own limitation. As a young
which lead to the rise in the number of entrepreneur, you will have a lot of things on
startup companies year on year. This is mind – self-doubt, criticisms, fear, and
because the world is changing rapidly with misjudgements. As you limit yourself, it will
the advancement in technology. It has also be harder for your business to get off the
resulted in the competition among ground. At this point, you need
companies. Now, if the enterprise wants to determination, focus, and education. Don’t
stand in competition with other enterprises, let yourself limit what you can do. You can
it should bring something new in their read books, listen to audios, watch videos,
products. Entrepreneur and Intrapreneur and join free training to improve your
play a major role here, to enter into new entrepreneurial knowledge.
business and even markets.
LACK OF KNOWLEDGE
Lack of knowledge is more of an obstacle
THE TOP CHALLENGES OF than a challenge. Even so, lack of
knowledge can cultivate incompetence
BECOMING AN which will hinder you of becoming an
ENTREPRENEUR established business. Becoming an
Entrepreneurship is a long journey. It entrepreneur is exciting but you will need
comes with a host of challenges, which are knowledge to develop visions and ideas. As
hard yet rewarding. As young a young entrepreneur obsess yourself with
entrepreneurs, you must be prepared for acquiring knowledge. There are a lot of fun
these ten significant hurdles. ways to learn that are absolutely free.
Watch podcasts, read books, and go to
INSUFFICIENT CAPITAL seminars. When you have enough
Not all beginners have a steady stream of knowledge you will learn how to hire, how to
income they can use to fund a new build a team, and how to get into business
business. All experienced entrepreneurs, with great people.
except those that came from highly
influential families, start from humble FEAR OF THE INEVITABLE
beginnings. As a young entrepreneur with Bad things can happen. A plane could crash
no sufficient income, you will literally start into your house and blow it up. Your
business may catch fire and burn. You may having you to put up a new capital.
lose everything in one snap. However, the However, the wrong people will eventually
entire world is a full manifestation of how drag your business down. So building a
you think and see. If you foster your fear, community is like a win-win situation. If you
you will never get to your destination, which have the right people to rally around you
is to become a successful entrepreneur. If then you’re in good hands. You can start by
you want to build an empire you need to being of service to everyone you meet but
take advantage of every bad situation and also selecting the people you choose to be
turn it into your favor. Accept responsibility part of your community, making sure that
for everything. Do your best to modify, they’re right for your space.
change, and improve yourself as you go
forward. Then you will see that the things FAILURE
around you will also get better. No one has reached the final destination
without encountering a certain number of
CUSHY JOB TRAP challenges and outright failures. Everyone’s
Settling for a day job is the number one afraid to fail – that’s a fact. But if you didn’t
enemy entrepreneurial success. A lot of experience failure in your journey then I
young entrepreneurs did not reach their would be very impressed by how you
destinations because they became too performed. If you did fail, don’t give up just
comfortable with the job they have. yet. It’s a constant challenge. Stand up.
Oftentimes, you will say that your job pays Learn from it. Make up for your loss.
well anyway and you procrastinate in your Sometimes your worst experience can be
dream of becoming an entrepreneur. But turned into great business ideas. You can
when are you really going to start your use them to survive the next wave of
business? Time goes by and the only thing challenges, promote vigilance in business,
that’s constant is change. If you keep create a business strategy, and sustain
delaying your dream, you will never reach business growth.
your destination.
GETTING LOST
BUILDING A SOLID TEAM At some point, you will feel like it is sloppy
Young entrepreneurs find it hard to build a and out of control. You will go through a lot
solid team. The process of identifying, of uncertainties and you will catch yourself
recruiting, and training the right talent can nearly hopeless. There will be a lot of self-
be very frustrating and challenging. You will questioning after a lot of failures. Am I on
face a lot of criticism throughout the the right track? Have I made the right
process. People will judge your business, decision to invest in business? Am I still
crush your ego, and question your myself? Eventually, you will get lost. But this
leadership. Eventually, you will need to build is normal. The uncertainty is just something
a great company with a culture that attracts that you have to live with because if
people with the right combination of skills everything is perfect then there is no more
and ability. You need to have perseverance room for you to grow. Most experienced
and willpower to lead and influence your entrepreneurs did not have it figured right
team. You are your own boss. But as a away. But if you just push yourself a little
leader, you need to set a good example that more, learn a little more, and climb a little
your followers can emulate. higher you will see that everything was
actually worth the try.
BUILDING A COMMUNITY
In order to build an empire, you need a
whole bunch of people who support you.
The right people can draw in new
individuals to experience your value without
THE NATURE AND hand in some countries making money is
not as valued and failure may be a disgrace.
IMPORTANCE OF The rate of business formation in these
ENTREPRENEURSHIP countries is not as high. Many subcultures
LEARNING OBJECTIVES that shape value systems operate within a
1. To introduce the concept of cultural framework. Studies indicate that a
entrepreneurship and its historical high percentage of founders of companies
development. had fathers and/or mothers who valued
2. To explain the entrepreneurial independence. Encouragement to form a
decision process. company is also gained from teachers, who
can significantly influence individuals. An
THE ENTREPRENEURIAL DECISION area having a strong educational base is
PROCESS (Deciding to become an also a requirement for entrepreneurial
entrepreneur by leaving present activity) activity. Peers are important, also, as is an
Many individuals have difficulty bringing area with an entrepreneurial pool and peer-
their ideas to the market and creating new meeting place.
venture. Yet entrepreneurship and the
actual entrepreneurial decisions have Possibility of New Venture Formation
resulted in several million new businesses (Factors making it possible to create a
being started throughout the world. new venture)
Although no one knows the exact number in Although the desire of new venture
the United States. Indeed, millions of formation derived from the individual's
ventures are formed despite recession, culture, subculture, family, teachers and
inflation, high interest rates, and lack of peers needs to be present before any action
infrastructure, economic uncertainty and the is taken, the second feature necessary
high probability of failure. The centers around this question "What makes it
entrepreneurial decision process entails a possible to form a new company?” Formal
movement from something to something-- a education and previous business
movement from a present life style to experience give a potential entrepreneur the
forming a new enterprise. To leave a skills needed to form and manage a new
present live-style to create something new enterprise. Although educational systems
comes from a negative force--disruption. are important in providing the needed
Many companies are formed by people who business knowledge, individual will tend to
have retired, moved, or been fired. Another be more successful in forming in fields in
cause of disruption is completing an which they have worked. The government
educational degree. The decision to start a also contributes by providing the
new company occurs when an individual infrastructure to help a new venture.
perceives that forming a new enterprise is
both desirable and possible. The market must be large enough and the
entrepreneur must have the marketing
Desirability of New Venture Formation know-how to put together the entire
(Aspects of a situation that make it package. Finally, financial resources must
desirable to start a new company) be readily available. Although most start-up
The perception that starting a new company money comes from personal savings, credit,
is desirable results from an individual's and friends, but there is often a need for
culture, subculture, family, teachers and additional capital. Risk-capital availability
peers. American culture places a high value plays an essential role in the development
on being your own boss, being a success and growth of entrepreneurial activity.
and making money therefore, it is not
surprising to find a high rate of company KEY TERMS
formation in the United States. On the other Foundation companies
- A type of company formed from
research and development that
usually does not go public.
Gazelles
- Very high growth ventures.
Government as an innovator
- A government active in
commercializing technology
High-potential ventures
- A venture that has high growth
potential and therefore receives
great investor interest
Entrepreneurship
- Entrepreneurship within an existing
business structure
Iterative synthesis
- The intersection of knowledge and
social need that starts the product
development process
Lifestyle firm
- A small venture that supports the
owners and usually does not grow
Ordinary innovation
- Z new product with little
technological change
Possibility of new venture formation
- Factors making it possible to create
a new venture