Entrepreneurship (1) 1
Entrepreneurship (1) 1
Entrepreneurship (1) 1
8.1.1Introduction
The activity of setting up a business or businesses, taking on financial risks in the hope of profit
Robert K. Lamb (1952) defined “Entrepreneurship is that form of social decision making
performed by economic innovators.”
8.1.2 Entrepreneur
An entrepreneur is one who always searches for change, responds to it, and exploits it as an
opportunity. Innovation is the specific tool of entrepreneurs, the means by which they exploit
change as an opportunity for a different business or service
Simply, as we know that the time is totally changed, in the modern time people are advanced.
They want to save time as much as they can.
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1. Curiosity
Successful entrepreneurs have a sense of curiosity that allows them to continuously seek new
opportunities. Rather than settling for what they think they know; curious entrepreneurs ask
challenging questions and explore different avenues.
2. Structured Experimentation
Along with curiosity comes the need for structured experimentation. With each new
opportunity that arises, an entrepreneur must run tests to determine if it’s worthwhile to pursue.
For example, if you have an idea for a new product or service that fulfils an underserved
demand, you’ll have to ensure customers are willing to pay for it. To do so, you’ll need to
conduct thorough market research and run meaningful tests to validate your idea and determine
whether it has potential.
3. Adaptability
The nature of business is ever-changing. Entrepreneurship is an iterative process, and new
challenges and opportunities present themselves at every turn. It’s nearly impossible to be
prepared for every scenario. Entrepreneurs need to evaluate situations and adapt so their
business can keep moving forward when unexpected changes occur.
4. Decisiveness
To be successful, an entrepreneur has to make difficult decisions and stand by them. As a
leader, they’re responsible for guiding the trajectory of their business, including every aspect
from funding and strategy to resource allocation.
Being decisive doesn’t always mean having all the answers. If you want to be an entrepreneur,
it means having the confidence to make challenging decisions and see them through. If the
outcome turns out to be less than favourable, the decision to take corrective action is just as
important.
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5. Team Building
A great entrepreneur is aware of their strengths and weaknesses. Rather than letting
shortcomings hold them back, they build well-rounded teams that complement their abilities.
In many cases, it’s the entrepreneurial team, rather than an individual, that drives a venture
toward success. When starting your own business, it’s critical to surround yourself with
teammates who have complementary talents and contribute to a common goal.
6. Risk Tolerance
Entrepreneurship is often associated with risk. While it’s true that launching a venture requires
an entrepreneur to take risks, they also need to take steps to minimize it.
While many things can go wrong when launching a new venture, many things can go right.
The key, according to Entrepreneurship Essentials, is for entrepreneurs to actively manage the
relationship between risk and reward, and position their companies to “benefit from the
upside.” Successful entrepreneurs are comfortable with encountering some level of risk to reap
the rewards of their efforts; however, their risk tolerance is tightly related to their efforts to
mitigate it.
8. Persistence
While many successful entrepreneurs are comfortable with the possibility of failing, it doesn’t
mean they give up easily. Rather, they see failures as opportunities to learn and grow.
Throughout the entrepreneurial process, many hypotheses turn out to be wrong, and some
ventures fail altogether. Part of what makes an entrepreneur successful is their willingness to
learn from mistakes, continue to ask questions, and persist until they reach their goal.
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9. Innovation
Many ascribe to the idea that innovation goes hand-in-hand with entrepreneurship. This is often
true since some of the most successful startups have taken existing products or services and
drastically improved them to meet the changing needs of the market.
Innovation is a characteristic some, but not all, entrepreneurs possess. Fortunately, it’s a type
of strategic mindset that can be cultivated. By developing your strategic thinking skills, you
can be well-equipped to spot innovative opportunities and position your venture for success.
8.4.1 Economic
Capital
Access to capital is one factor that can facilitate and accelerate entrepreneurship, as capital is
often required for research and development, production or manufacturing, and marketing. This
is the reason venture capitalists, angel investors, entrepreneurial incubators, and accelerators
are around – to help connect the aspiring entrepreneurs in need of capital with the supportive
investors, who have the necessary capital and believe in the ideas they’re funding.
Labour
The availability and affordability of good labour is another factor that impacts
entrepreneurship, as it can be difficult to find qualified employees to work for a new start-up.
It has become much easier, faster, and cheaper to connect with highly skilled and qualified
potential employees from all over the world through these freelancer marketplaces, and no
matter where you are located, you can likely find the necessary labour to carry out your idea
for a reasonable price.
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Market
The one factor that applies as much now as it did decades ago is the market: it’s necessary to
find the ideal target market for your idea, service, or product if you have hopes of selling it and
making any money. However, while a market for an idea must still exist to ensure its success
and profitability, finding and accessing that market has become much easier in recent years, as
well.
With all of the social networks out there, digital publications, and online groups and forums,
finding and reaching a targeted market has never been easier or cheaper. So, while there must
be a large enough target market that is interested in your idea to ensure its profitability, if that
market is out there, reaching them should be much easier today than it would have ten years
ago.
Social factors can have a significant impact on a person’s likelihood to pursue entrepreneurship
or to do so successfully, but they aren’t guaranteed to steer a person in one direction or another.
That said, social factors in terms of the family background of entrepreneurship or
encouragement from family towards an entrepreneurial path can play a great role in guiding a
teen towards an entrepreneurial future.
Family background
A family background in entrepreneurship is one of the best and most direct ways to immerse a
child in the entrepreneurial mindset and to exemplify the benefits of starting and running one’s
own business. For those who have a positive experience with their own family business, they
may be more likely to pursue their own ventures in the future, and they may see the
entrepreneurial route as more customary and less unconventional or risky.
However, the family background in entrepreneurship isn’t the only way to influence a child
towards pursuing their own ventures; education and encouragement is another option. Families
who do not have first-hand entrepreneurial experience, but who do introduce their children to
entrepreneurship through educational entrepreneurship programs like Beta Bowl can similarly
influence their children towards an entrepreneurial path and equip them with the necessary
skills to succeed.
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Education
Education can play a large role in leading a student down an entrepreneurial or more traditional
corporate path. As entrepreneurship has become a more popular topic of discussion, it’s also
become a greater emphasis of study in business schools and colleges. More universities have
included entrepreneurship majors, minors, and entire departments. Nonetheless, if you’re
hoping to equip your child for an entrepreneurial future, you would be better served by seeking
out an entrepreneurial program that is specifically designed to give them those skills,
experience, and resources.
Cultural Value
Though it may seem to have a less direct impact on our kids, the cultural views and value of
entrepreneurship do impact the prevalence of an entrepreneurial focus among the youth. This
increase in the popularity of entrepreneurship has also contributed to its increased focus at
universities, and it has become more accepted, applauded, and revered in our society. For this
reason, our culture has placed a great value on entrepreneurship, and this is a wonderful factor
that can encourage young kids and teens to become future entrepreneurs.
Perhaps the most direct factors impacting a person’s likelihood to become an entrepreneur or
at least a successful one, are in fact psychological and may be inherent or instinctual in certain
people. While a person’s upbringing can influence their psychological factors like creativity,
risk tolerance, drive, and leadership, these can also be personality traits that are deeply rooted
in who a person is, regardless of outside factors.
Risk Tolerance
Entrepreneurship is often inherently risky, to some degree, and it takes a person with at least a
minimal level of risk tolerance to truly stick it out and weather the storm. In order to prepare
your child for an entrepreneurial future, you should help them develop their risk tolerance.
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Let's start with the simplest and most straightforward reason any business fails: lack of money.
Whether they self-finance, get a bank loan or take the "Shark Tank" approach and get partners
and investors, many businesses fail before really getting started because they are not prepared
with the capital it takes to operate a new business.
Who are your clients? Who is your competition? What is your target market willing to pay for
your product or service? Entrepreneurs must be able to answer these and many more questions
about their market in order to run a successful business. If you do not fully understand who
your customers are, what they want and where else they can get it, you will be doomed to fail.
3. Lack of Vision
The mark of a good leader is not only having a vision but imparting that vision to others in a
way that makes them want to come with you on the journey. Businesses without well-thought-
out, long-term and short-term goals will fail because they don't have clear success benchmarks
along the way.
Speaking of goals, they say "Rome wasn't built in a day," and neither was Amazon or Google
or GE. If a newly formed startup's idea is to rush to be a Fortune 500 household name in one
year or even five from opening, it could be setting itself up for failure.
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Many new businesses are quick to chase money or a sale by adding products or services that
they do not truly specialize in. Companies that know what they do well (and what they don't)
and stick to that last longer than businesses that try to become a jack-of-all-trades yet master
of none.
You can have the best product or service in the world, but if nobody knows about it, you won't
succeed. You need to get your name out there and let people know about the benefits of your
business. If you cannot reach your audience, you cannot find success.
One of the most effective forms of marketing is word-of-mouth marketing. It's a form of
advertising that comes directly from satisfied customers. Why does it work so well? Most
consumers will believe a recommendation from a good friend or family member much faster
than any ad or marketing strategy.
7. Poor Planning
We have all heard the saying, "If you fail to plan, you plan to fail." The absence of proper
planning leads to subpar execution. A good business plan need not be overly complicated. It is
as simple as knowing and developing a strategy around your company, your product and your
competition.
Let criticism serve as an opportunity to do it better. Too often, entrepreneurs get offended by
critiques because they are too emotional when it comes to their business. There is no such thing
as success without failure and mistakes. As an entrepreneur, you must find the lesson and learn
from criticism.
9. Not Delegating
Some old sayings are delegation killers for entrepreneurs. "If it's going to be, it's up to me,"
"Entrepreneurs are self-made," and "If you want things done right, do it yourself," to name a
few. Many entrepreneurs start as a "one-person show," and some can succeed in the beginning
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that way. However, as a business grows, you need a good team that can help bring the
company's vision to fruition.
Soft skills are the missing piece to the success puzzle for many entrepreneurs. Soft skills are
the sometimes intangible and non-technical talents entrepreneurs need to lead effectively. They
include attitude, communication, empathy, motivation, teamwork, networking, leadership,
decision making, problem-solving and conflict resolution.
11. Burnout
Related to not delegating, entrepreneurs can quickly burn out and lose their drive and passion
if they do not get the right support. Starting a business is a 24/7 job in most cases, and if you
are not able to ease that burden as you grow, you will never be able to sustain that long term.
As Lori Greiner of Shark Tank said, "Entrepreneurs are the only people who will work 80 hours
a week to avoid working 40 hours a week."
8.6Entrepreneurship development
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Schumpeter – “Women entrepreneurs are those women who innovate, initiate or adopt a
business activity”.
Frederick Harbison – “Any women or group of women which innovates, initiates or adopts
an economic activity may be called women entrepreneurship”.
In short, women entrepreneurs are those women who think of a business enterprise, initiate it,
organise and combine factors of production, operate the enterprise and undertake risks and
handle economic uncertainty involved in running it.
2. Facilitating factors
Motivational Needs:
1 Economic Necessity:
In business, the entry of women is relatively a new phenomenon. Because of the break-up of
the joint family system and the need for additional income for maintaining the living standards
in the face of inflation or rising prices, women have started entering the most competitive world
of business.
Another motive force compelling women to enter business world is their strong desire for high
achievement in their life. In modern days, though women are educated, they are not able to find
jobs in the market place or they may not be able to go out of their homes for working
somewhere else because of family problems.
Therefore, a woman is tempted strongly by a desire to achieve something high and valuable
and prove herself as an asset and not a liability to the family. This is the strongest motivating
force for a woman to become an entrepreneur.
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3 Independence:
Another strong motive force compelling a woman to become an entrepreneur is to lead an
independent life with self-confidence and self-respect. The ownership and control of a
successful business provides a woman entrepreneur a prestigious status, personal reputation
and a sense of independence in the society.
4 Government Encouragement:
The Government and non-government bodies have started giving increasing attention and
encouragement to women’s economic conditions through self- employment and business
ventures. They have formulated various policies and programmes and introduced various
incentive schemes to promote women entrepreneurs in the country. Such encouragement and
incentive schemes have induced women to undertake business mentors.
5 Education:
Women have been taking up various kinds of technical, vocational, industrial, commercial and
specialised education so as to qualify themselves to be self-employed in some kind of trade,
occupation, vocation or business.
6Role model:
Women, like men, are also desirous of contributing their might to the economic development
of their country. They have already entered other fields like politics, education, social field,
administration, etc. Now they have started entering the business field where they can also show
their importance as in other fields.
7 Family Occupation:
Family occupation is an important factor motivating a woman member to participate in the
family business, along with her husband and other members of the family. There is a great need
for women to undertake economic activity or business of the family and support their families
in family occupation or family business so as to reduce the expenses of the family business and
increase its income.
8 Employment Generation:
Another influencing factor that motivates women to become entrepreneurs is the creation of
employment opportunities. Women entrepreneurs generally take up labour intensive small
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scale and village industries or handicrafts and they have high potential in employment
generation.
10 Growing Awareness:
With the spread of education and the growing awareness among women, the women
entrepreneurs have been increasing, not only in the kitchen extension activities i.e. the 3 Ps viz.
pickles, powder (masala) and papad or the traditional cottage industries, such as toy-making,
basket-making etc. as they require less technical know-how, but they are entering also into
engineering, electronics and many other industries which require high level technical skill.
Thus, women entrepreneurs are found in such technical industries as T.V. capacitor, electronic
ancillaries, and small foundries.
Facilitating Needs:
Facilitating needs are the needs for providing various facilities for the successful working of
the women enterprises.
Several financial schemes like Mahila Udyam Nidhi, Marketing Development Fund etc., have
been set up only for women entrepreneurs. In addition, banks and development finance
institutions also provide financial assistance to women entrepreneurs. Women will be tempted
to start their own business ventures when such facilities are easily available to them.
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2 Innovative Thinking:
Innovative thinking in women motivate them to become entrepreneurs. Women who have
entrepreneurial talent and who have innovative thinking are naturally induced to take up small
business or industry to convert their innovating and talent into a position of entrepreneurship
instead of employment.
5 Development Programmes:
The Central and State Governments have started several development and training programmes
particularly for women so as to enable them to become entrepreneurs. Such training and
development programmes provide all types of facilities to women to start their business
independently. There are vast numbers of industries under small business sector where women
are playing a major role.
2. Home based industries-such as handicrafts, Candle making, bidi industry, hosiery, and
textile, doll making, jewellery pottery, designing
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