Unit-1

Entrepreneurship

Dr. Purvi Pujari

 Syllabus- Entrepreneurship Management

 Unit 1 : Entrepreneurial Perspective : •

Concept of entrepreneur, Entrepreneurship
and enterprise, advantages of
entrepreneurship • Nature and development
of entrepreneur and Entrepreneurship
 Unit 2 Opportunity –based entrepreneurship
• social entrepreneurship •
entrepreneurship by Dalits •
Technopreneurship
 Unit 3 : Gender bias and women
entrepreneurs

Dr. Purvi Pujari

 Unit 4 : Entrepreneurs, managers
and intrapreneurs : similarities and
differences
 Unit 5 : Innovation, creativity and
entrepreneurship
 Unit 6 : The Entrepreneurial
Environment: • Analysis of business
opportunities in both the domestic
and global economies, including the
analysis of PEST factors
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 7 • Quick-start routes to establish a business (franchising,
ancillarising and aquisitioning) • Support organisations for an
entrepreneur and their role

 8 • Legal framework for starting a business in India

• The Make in India Campaign, the Digital India Campaign
and the opportunities for start ups in India
 9 The Enterprise Launching : • Product / Project identification
• Preparing a Business Plan
 10 • Business financing, including venture capital finance and
private equity of new ventures and start ups.
 11 • Managing early growth of business • New venture
expansion – strategies and issues
 12 • International variations in entrepreneurship ( including
cultural and political differences) • Indian Family Business:
genesis, features, issues and challenges
Dr. Purvi Pujari
 Unit 1 :
Entrepreneurship
 Entrepreneurial Perspective : • Concept
of entrepreneur, entrepreneurship and
enterprise, advantages of
entrepreneurship • Nature and
development of entrepreneur and
entrepreneurship

Dr. Purvi Pujari

What is an Entrepreneur?

“An entrepreneur is someone who creates a new

business in the face of risk and uncertainty for the

purpose of achieving profit and growth by identifying

opportunities and assembling the necessary resources

to capitalize on them”.

(Zimmer and Scarborough)

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 Meaning and Definition of
entrepreneur


The word entrepreneur has come from the France
word “entreprendra” which means to undertake,
to pursue opportunities to fulfill needs and wants
through innovation to undertake business.

In the year 1725 the word entrepreneur was first

brought into economics by a social scientist
named Richard Cantilion. The expert who
invented the theory of entrepreneurship was
David mc Cellion in 1961.

Dr. Purvi Pujari

 According to encyclopedia
Britannica

“Entrepreneur as the individual who

bears the risk of operating a business
in the face of uncertainty about future
condition and who is rewarded
accordingly by his profit or losses”.

Dr. Purvi Pujari

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

Entrepreneur is an innovative person

who maximizes his profits by following
new strategies or venturing into new
products or services.

Dr. Purvi Pujari

 What is Entrepreneurship?

 Organizing a business venture and assuming the

risk for it.

 “An entrepreneur is a person who is willing and

able to convert a new idea into a successful
venture.”
 Entrepreneurship is a process of converting a
new idea into a successful venture
Dr. Purvi Pujari
 Who is an entrepreneur ?

 He who has a vision

 Has the hunger to make something from nothing

 Is Never Finished

 The Risk Factor

 He is having fun!!!

Dr. Purvi Pujari

 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.

The entrepreneurial activity is governed by varying

combination of socio-economic, psychological,
cultural and other factors: Caste/religion, Family
background, Level of education, Level of
perception, Occupational background, Migratory
character, Entry into entrepreneurship, Nature of
enterprise, Investment capacity and
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 What is Entrepreneurship?
 Capacity to take risks
 Ability to own and organize
 Desire and capability to innovate and
diversify (Stepanek,
1962)

Dr. Purvi Pujari

 What is Entrepreneurship?
 Practice of starting new organizations or revitalizing

mature organizations

 Particularly new businesses in response to identified

opportunities.

 Entrepreneurial activities has a vast range

 It ranges in scale from solo projects to major undertakings

creating many job opportunities.

 Entrepreneur is one who organizes, manages and assumes

the risk of a business Dr.

enterprise.
Purvi Pujari
 Why entrepreneurship?
 Process of creating something
different, with value, by devoting
necessary time and effort, by assuming
the accompanying financial,
psychological, and social risks, and
receiving the resulting rewards of
monetary and personal
satisfaction (Bowen and Hisrich,
1986).
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 Role of the Entrepreneur
 An innovator who combines technical
innovations and financial finesses.
 Important role in producing competitive
products, processes, and services.
 Generation of new employment
 Local and regional economic development
 Improved allocation of resources and
transfer of technologies

Dr. Purvi Pujari

Who are entrepreneurs?

 Common traits  Common traits

› Original thinkers › Self employed parents
› Risk takers › Firstborns
› Take responsibility › Between 30-50 years
for own actions old
› Well educated – 80%
› Feel competent
have college degree
and capable and 1/3 have a
› Set high goals and graduate level degree
enjoy working
toward them

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 Need for entrepreneurship

 Increases national production

 Balanced area development

 Dispersal of economic power

 Reinvestment of profit for the welfare of the area of profit

generation

 Development is a function of motivation and human resource

 Entrepreneurial awareness

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 Characteristics of Entrepreneurs

Key Personal
Attributes

Strong Managerial Successful

Competencies Entrepreneurs

Good Technical Skills

Dr. Purvi Pujari

 Entrepreneurship
development
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.
Dr. Purvi Pujari
 Entrepreneurial Characteristics

Imaginative
Entrepreneurs are creative. They imagine solutions to
problems that encourage them to create new products
and generate ideas.
Persistent
True entrepreneurs face bureaucracy, make mistakes,
receive criticism, and deal with money, family, or stress
problems. But they still stick to their dreams of seeing the
venture succeed.
Goal-setting
Entrepreneurs are motivated by the excitement of staring
a new business. Once achieved, they seek out new
goals or ventures to try.
Hardworking
Entrepreneurs need a great deal of energy to see a
venture start and succeed. Yet they are not deterred by
the long hours to achieve
Dr. Purvitheir
Pujari goal.
 Entrepreneurial
Characteristics

Self-confident
Entrepreneurs believe in themselves. Their self-confidence takes
care of any doubts they may have.

Flexible
Entrepreneurs must be flexible in order to adapt to changing
trends, markets, technologies, rules, and economic environments.

Independent
An entrepreneur’s desire for control and the ability to make
decisions often makes it difficult for them to work in a controlled
environment.

Dr. Purvi Pujari

 Key Personal Attributes
 Entrepreneurs are Made, Not Born!
› Many of these key attributes are developed
early in life, with the family environment
playing an important role
› Entrepreneurs tend to have had self employed
parents who tend to support and encourage
independence, achievement, and
responsibility
› Firstborns tend to have more entrepreneurial
attributes because they receive more
attention, have to forge their own way, thus
creating higher self-confidence

Dr. Purvi Pujari

 Key Personal Attributes
(cont.)
 Entrepreneurial Careers
› The idea that entrepreneurial success leads to
more entrepreneurial activity may explain why
many entrepreneurs start multiple companies
over the course of their career
› Corridor Principle- Using one business to start
or acquire others and then repeating the
process
› Serial Entrepreneurs- A person who founds
and operates multiple companies during one
career
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 Key Personal Attributes
(cont.)
 Need for Achievement
› A person’s desire either for excellence or to
succeed in competitive situations
› High achievers take responsibility for attaining
their goals, set moderately difficult goals, and
want immediate feedback on their
performance
› Success is measured in terms of what those
efforts have accomplished
› McClelland’s research

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 Key Personal Attributes
(cont.)
 Desire for Independence
› Entrepreneurs often seek independence from
others
› As a result, they generally aren’t motivated to
perform well in large, bureaucratic
organizations
› Entrepreneurs have internal drive, are
confident in their own abilities, and possess a
great deal of self-respect

Dr. Purvi Pujari

 Key Personal Attributes
(cont.)
 Self-Confidence
› Because of the high risks involved in running
an entrepreneurial organization, having an
“upbeat” and self-confident attitude is
essential
› A successful track record leads to improved
self-confidence and self-esteem
› Self-confidence enables that person to be
optimistic in representing the firm to
employees and customers alike

Dr. Purvi Pujari

 Key Personal Attributes
(cont.)
 Self-Sacrifice
› Essential
› Nothing worth having is free
› Success has a high price, and entrepreneurs
have to be willing to sacrifice certain things

Dr. Purvi Pujari

 Technical Proficiency
 Many entrepreneurs demonstrate strong
technical skills, typically bringing some related
experience to their business ventures
 For example, successful car dealers usually have
lots of technical knowledge about selling and
servicing automobiles before opening their
dealerships
 Especially important in the computer industry
 NOT ALWAYS NECESSARY

Dr. Purvi Pujari

Entrepreneurial
Competencies
 Initiative  Systematic Planning
 Sees and Acts on  Problem solving
Opportunities  Self-confidence
 Persistence  Assertiveness
 Knowing/Information  Persuasion
 Concern for High  Use of Influence
Quality of Work Strategies
 Commitment to Work  Monitoring
Contract  Concern for Employee
 Efficiency Orientation Welfare

Dr. Purvi Pujari

Dr. Purvi Pujari