Chapter- 1

Chapter Name-Being an Entrepreneur

Presented By
Faculty Name-Prof. Jaydatta Bangar
Designation-Assistant Professor
Institute Name-S.P.Mandali’s Prin. N.G.Naralkar Institute of Career Development
and Research

1
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 Entrepreneur and Entrepreneurship
Entrepreneur
In early 16th century it was applied to those who were engaged in military expeditions.
In 17th century the word ‘entrepreneur’ was used for civil engineering activities such as
construction and fortification. It was applied to business for the first time in 18th
century, to designate a dealer who buys and sells goods at uncertain prices.
Entrepreneurship
Entrepreneurship started catching up in 1980s just as professionalism in management
caught up during 1970s. However, confusion still prevails as to what exactly we mean by
the term ‘entrepreneur’. An attempt, therefore, has been made here to define
entrepreneur.

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 Typologies of Business

Revolutionar
y

Speculative Niche

Hustle Propagators

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Personality Traits of Entrepreneur

Energetic

Imaginative Enthusiastic

Hardworking Focused

Friendly

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Personality Traits of Entrepreneur

Independent

Objective Passionate

Perceptive Patient

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Personality Traits of Entrepreneur

Disciplined Adaptable

Determined Competitive

Decisive Curious

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 Being an Entrepreneur

The entrepreneur:
An entrepreneur is an individual who creates a new business, bearing most of the risks
and enjoying most of the rewards. The process of setting up a business is known as
entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new
ideas, goods, services, and business/or procedures.
Henry Ford saw the need for making automobiles that were affordable for the general
public. He created the production line to reduce manufacturing costs and thus made th
e automobile affordable.

https://www.investopedia.com/terms/e/entrepreneur.as
p
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 Being an Entrepreneur

The entrepreneur:
Entrepreneurship is the pursuit of opportunity beyond resources controlled given by
Harvard Business School Professor Howard Stevenson.
Entrepreneur is noun (https://www.merriam-webster.com/dictionary/entrepreneur)
en·​tre·​pre·​neur | \ ˌän-trə-p(r)ə-ˈnər , -ˈn(y)u̇ r, ˌäⁿn- \
Definition of entrepreneur : one who organizes, manages, and assumes the risks of a
business or enterprise

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 Being an Entrepreneur

The entrepreneur: Entrepreneur’s competences

× Ability to make decisions
× Ability to manage
× Ability to organize
× Motivation and faith in the enterprise project
× Initiative and ability to adapt
× Creativity and innovation
× Ability to take risks
× Ability to create interpersonal relations
× Ability to bear uncertainty.

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 Three Phases of Entrepreneurship Development

(a) Initial Phase

Creation of awareness about the entrepreneurial opportunities based on survey.
(b) Development Phase
Implementation training programmes to develop motivation and managerial skill.
(c) Support Phase
Infrastructural support of counselling- assisting to establish a new enterprise and to
develop existing units.

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Typologies of Entrepreneurs

•Innovative
•Adoptive
•Fabian
•Drone

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 Typologies of Entrepreneurs

The Innovative Entrepreneur

The innovative entrepreneur is essentially the creation of Joseph Schumpeter. In his
opinion the most important function of an entrepreneur is innovation. The innovative
entrepreneur is a key figure in the process of development. He is highly motivated and
talented and is able to foresee potentially profitable opportunities. Innovations involve
problem solving and the entrepreneur is a problem solver.

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 Typologies of Entrepreneurs

Adoptive or Imitating Entrepreneurs

Imitative entrepreneurship is characterized by readiness to adopt successful innovation
inaugurated by innovating entrepreneurs. In other words, imitators follow the
innovators after carefully observing how the latter fare and to what extent their
innovation has caught the imagination of the society. These groups are also
revolutionary entrepreneurs with the difference that they do not innovate the changes
themselves. They just imitate techniques and technology initiated by others.

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 Typologies of Entrepreneurs

Fabian Entrepreneurs
Fabian entrepreneurship is characterized by great caution and skepticism in practicing
any change. Such entrepreneurs have neither the will to introduce new changes nor the
desire to adopt new methods. Such entrepreneurs are shy and lazy. Their dealings are
determined by customs, religion, tradition and past practices. They are not much
interested in taking risks and they try to follow the footsteps of their predecessors.

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 Typologies of Entrepreneurs

Drone entrepreneurs
Drone entrepreneur is one who follows the traditional methods of production. Under no
circumstances will a drone entrepreneur change the method of production he has
introduced. Such entrepreneurs may even suffer losses, but even then they refuse to
adopt and use new methods. They are laggards because they continue in their
traditional ways of operation. Very often their products lose their marketability and
their operation becomes uneconomical leading to their being pushed out of the market.

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 Profile analysis

Profile analysis
Define profiles of various start-ups and how they are creating value for the society.
e.g.
OLA Electric
Zomato
Space Tourism
Cred
Groww App
Infosys
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 Being an Entrepreneur- Entrepreneurial behavior

Entrepreneurial behavior represents the behavioral approach of management.

1.It emerged as a distinct field of study because of the importance of human behavior in
enterprise.
2. Cause and effect relationship: Human behavior is generally taken in terms of cause
and effect relationship. It provides generalization that entrepreneurs can use to
anticipate the effect of certain activities on human behaviour.
3. A branch of social sciences: Entrepreneurial behavior is greatly influenced by other
social sciences viz., psychology, sociology and anthropology.
Article: https://www.coursera.org/lecture/wharton-entrepreneurship-opportunity/1-2-
profile-of-the-entrepreneur-SeI7n
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 Being an Entrepreneur- Entrepreneurial Motivation

Entrepreneurial Motivation: Why to become an entrepreneur

The simplest definition of motivation boils down to wanting (Baumeister, 2016). We
want a change in behavior, thoughts, feelings, self-concept, environment, and
relationships.

Internal Factors: External Factors:

Educational Background . Assistance from Government.
Occupational Experience . Assistance from financial institutions.
Desire to do work independently . Availability of technology.
Desire to branch out to manufacturing. Availability of raw material.
Family Background Demand of the particular product.
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 Lean Start –up

Lean Start –up

• The lean start-up which operates on LEAN philosophy

• Cut the extra and focus on value addition.

• E.g- LinkedIn and WhatsApp

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Entrepreneur Ecosystem

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 The entrepreneurial ecosystem

The entrepreneurial ecosystem

• Ecosystem evolves around the products/services offered by the start-ups.

Sustainability of Entrepreneurship: Dilemmas of an entrepreneur for success

• The average age of Indian start-ups is less than 10 years.

Some of the common reasons are-

• Lack of promotional measures • Faulty distribution policy • Higher price • Poor timing
• Inherent defect • Poor product quality • Extent of competition

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 Strategic Decision Making for Survival and Growth

Strategic Decisions Regarding

• Revenue
• Customer Targeting
• Market to be Covered
• Funding
• Profit goals
• Market share
• Competitive advantage
• Technology Strategy

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Entrepreneurs and strategic decisions

https://www.umassd.edu/fycm/decision-making/process/
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Start Up Failure Reasons

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 Being an Entrepreneur

Lean Start –up

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 Company types-Legal

Legal Fundamentals - When, how and where to incorporate.

https://www.startupindia.gov.in/content/sih/en/international/go-to-market-guide/business-in-India.html
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Forms of Legal Entities-Classification

Legal Fundamentals - When, how and where to incorporate.

https://www.startupindia.gov.in/content/sih/en/international/go-to-market-guide/business-in-India.html
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Forms of Legal Entities-Classifications

https://www.slideshare.net/ArunVerma97/kinds-of-companies-68826139
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 Text Books

1. New Venture Management: The Entrepreneur's Roadmap (Entrepreneurship Series),

Donald F. Kuratko and Jeffrey S. Hornsby, Pearson
2. The Manual for Indian Start-ups: Tools to Start and Scale-up Your New Venture, Vijaya
Kumar Ivaturi, Meena Ganesh, Penguin Random House India.
3. Managing New Ventures, Anjan Raichoudhuri, Prentice-Hall of India Pvt.Ltd
4. Develop Your Idea!: Get Off to a Flying Start With Your Startup. Guided Exercises,
Templates & Resources for Exploring New Business Ventures, K. N. Kukoyi
5. Managing Small Business by Longenecker, Moore, Petty and Palich, Cengage Learning,
India Edition.
6. Entrepreneurship: New Venture Creation by David H. Holt
7. The Dynamics of Entrepreneurial Development & Management by Desai, Vasant ,
Himalaya Publishing House,Delhi
8. Entrepreneurship and Small Business Management by Siropolis
9. Lead like an Entrepreneur by Neal Thornberry
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 Reference Books

1. Fundamentals of Entrepreneurship, Nandan H, PHI

2. Cases in Entrepreneurship by Morse and Mitchell, Sage South Asia Edition.
3. Entrepreneurship – Indian Cases on Change Agents by K Ramchandran, TMGH.
4. Entrepreneurship – The engine of growth, edited by Mark Rice and Timothy Habbershon,
Published by Praeger Perspectives.
5. Entrepreneurship: Theory, Process and Practice by Kuratko, D.F. & Hodgetts, R.M.
Thomson Press.
6. Entrepreneurship Development: Small Business Enterprises by Charantimath, P. , Pearson.
7. A Guide to Entrepreneurship by David, Otes , Jaico Books Publishing House, Delhi.
8. Indian Entrepreneurial Culture by A Gupta , New Age International.
9. Make The Move: Demystifying Entrepreneurship by Ishan Gupta, Rajat Khare

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 Reference for SNVM and Entrepreneurship- Websites

http://annadacollege.com/documents/EDP-MQP.pdf
https://www.dynamictutorialsandservices.org/2020/11/entrepreneurship-development-
mcqs.html
https://www.eguardian.co.in/mcq-questions-for-entrepreneurship-development/
http://jdm.du.ac.in/question-bank/B-com-hons/B-com-hons-
II/SEC_ENTREPRENEURSHIP.pdf
http://umeschandracollege.ac.in/pdf/study-material/management/MCQ-sne.pdf
https://www.sarpublisher.com/entrepreneurial-development-mcq-questions-and-answers-
part-1/
https://thecodingshef.com/all-unit-mcqs-question-of-entrepreneurship-development/
http://www.ngmc.org/wp-content/uploads/2019/06/BBA_18UBM513-
ENTREPRENEURSHIP-AND-PROJECT-MANAGEMENT.pdf
http://mgt602-mbilal.blogspot.com/2010/04/solved-mcqs-of-entrepreneurship-with.html
https://www.youtube.com/watch?v=fzHcDGQsZk8
https://www.wipo.int/patents/en/
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