Compiled and Prepared by: SANCHITA DHINGRA ASSISTANT PROFESSOR SRI GURU TEGH BAHADUR KHALSA COLLEGE UNIVERSITY

OF DELHI

 Evolution

of the concept of Entrepreneur Entrepreneurship Intrapreneurship Entrepreneur Vs. Intrapreneur Entrepreneur Vs. Entrepreneurship Entrepreneur Vs. Manager Attributes and Characteristics of a successful Entrepreneur

An Entrepreneur

takes on the risk of starting their own enterprise or investing in other start-ups.

Entrepreneur Origin of the term

ENTREPRENDRE (19TH C. FRENCH WORD):
means somebody who undertakes.

 An

entrepreneur is someone who sets up a business or businesses, taking on financial risks in the hope of profit. (Oxford Dictionaries definition) Entrepreneurs are people that notice opportunities and take the initiative to mobilize resources to make new goods and services An individual who undertakes the risk associated with creating, organizing, and owning a business

1725: Richard Cantillon

An entrepreneur is a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise.

1803: J.B. Say

An entrepreneur is an economic agent who unites all means of production- land of one, the labour of another and the capital of yet another and thus produces a product. By selling the product in the market he pays rent of land, wages to labour, interest on capital and what remains is his profit. He shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.

1934: Schumpeter

According to him entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services.

1961: David McClleland

An entrepreneur is a person with a high need for achievement [N-Ach]. He is energetic and a moderate risk taker An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource.

1964: Peter Drucker

1971: Kilby

Emphasizes the role of an imitator entrepreneur who does not innovate but imitates technologies innovated by others. Are very important in developing economies

1975: Albert Shapero

Entrepreneurs take initiative, accept risk of failure and have an internal locus of control

 Entrepreneurship

can be described as a process of action an entrepreneur undertakes to establish his enterprise. According to Peter Drucker: Entrepreneurship is defined as a systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation.

 Scott

Shane (Case Western) Entrepreneurship is an activity that involves the discovery, evaluation and exploitation of opportunities to introduce new goods and services, ways of organizing, markets, processes, and new materials through organizing efforts that previously had not existed.

Howard

Stevenson (Harvard) .. The pursuit of opportunity without regard to resources currently controlled.

 Intrapreneurship

is Entrepreneurship practiced by people within established organisations and developing an opportunity from within an organisation to create value through innovation disregarding the resources currently controlled. Churchill, 1992

Spotting

 Gifford

and Elizabeth Pinchot coined the term Intrapreneur A person within a large corporation... .Taking direct personal responsibility for turning an idea into a

Profitable Finished product

Through

Assertive risk taking and Innovation

At Lockheed Martin, intrapreneurs developed a number of famous aircraft designs and at 3M, they came up with PostIt Notes and at Google, they came up with Google News, AdSense and Gmail

At LinkedIn, employees can come up with a new idea once each quarter, put a team together and pitch their idea to the executive team. If their idea is approved, they are able to spend up to three months time dedicated to turning the idea into something that benefits the company.

At DreamWorks, they take this a step further by actually teaching their employees how to formulate their pitch and then allowing them to practice in front of executives

An entrepreneur is an independent person who starts his venture and bears full risk of his failure and enjoys the fruit of his success whereas intrapreneur is partially independent and is sponsored by the corporation in which he is working. He is also not liable to bear the losses in case of his failure.

An entrepreneur raises the finance from various sources and also guarantees their return whereas an intrapreneur does not own responsibility to raise the capital or to return it.

An entrepreneur has no relation with any organisation whereas an intrapreneur operates within the organisation where he is working.

The term entrepreneur is used to describe men and women who establish and manage their own business, and the process involved is called entrepreneurship Entrepreneurship is an abstraction whereas entrepreneurs are tangible people Entrepreneurship is the outcome of complex socio economic, psychological and other factors whereas Entrepreneur is the key individual central to entrepreneurship who makes things happen Thus, Entrepreneur is the actor while entrepreneurship is the act. Entrepreneurship is the most effective way of bridging the gap between science and the market place by creating new enterprises. An entrepreneur is the catalyst who brings about this change

An entrepreneur is involved with the start-up process while a manager with running the business over a long period of time An entrepreneur assumes financial, material and psychological risks whereas a manager does not have to bear risks An entrepreneur is driven by perception of opportunity whereas a manager by the resources he currently possesses An entrepreneur initiates change whereas a manager follows rules & procedures An entrepreneur is his own boss whereas a manager is a hired employee An entrepreneur gets uncertain rewards whereas a manager gets fixed rewards and salary

 Personal

characteristics of successful entrepreneurs:

Creative Goal-oriented Independent Inquisitive Persistent Responsible Risk taker Self-confident

 Passion

for the Business

The number one characteristic shared by successful entrepreneurs is a passion for the business. This passion typically stems from the entrepreneurs belief that the business will positively influence peoples lives.

Product/Customer

Focus

A second defining characteristic of successful entrepreneurs is a product/customer focus. An entrepreneurs keen focus on products and customers typically stems from the fact that most entrepreneurs are, at heart, craftspeople.

 Tenacity

Despite Failure

Because entrepreneurs are typically trying something new, the failure rate is naturally high. A defining characteristic for successful entrepreneurs is their ability to persevere through setbacks and failures.

Execution

Intelligence

The ability to fashion a solid business idea into a viable business is a key characteristic of successful entrepreneurs. The ability to translate thought, creativity, and imagination into action and measurable results is the essence of execution intelligence.

High Need for Achievement

A persons 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

Desire for Independence

Entrepreneurs often seek independence from others As a result, they generally arent motivated to perform well in large, bureaucratic organizations Entrepreneurs have internal drive, are confident in their own abilities, and possess a great deal of selfrespect

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 selfconfidence and self-esteem Self-confidence enables that person to be optimistic in representing the firm to employees and customers alike

Self-Sacrifice
Essential Nothing worth having is free Success has a high price, and entrepreneurs have to be willing to sacrifice certain things