Module-I

Introduction
Class: TE IT

Prof. Sharique Ahmad

Content
● Concept, Meaning and definition of Entrepreneur and
Entrepreneurship.
● Evolution of Entrepreneurship,
● Role of Entrepreneurship in economic Development;
● Managerial vs entrepreneurial approach;
● Classification and types of Entrepreneurs.
● Characteristics and qualities of successful Entrepreneurs;
● Women Entrepreneurs;
● Corporate & Social entrepreneurship.
 Concept, Meaning and definition of Entrepreneur and Entrepreneurship.

Concept of Entrepreneurship
● Entrepreneurship is the ability and readiness to develop, organize and
run a business enterprise, along with any of its uncertainties in order
to make a profit.
● The most prominent example of entrepreneurship is the starting of
new businesses.
● In economics, entrepreneurship connected with land, labour, natural
resources and capital can generate a profit.
● The entrepreneurial vision is defined by discovery and risk-taking
and is an indispensable part of a nation’s capacity to succeed in an
ever-changing and more competitive global marketplace.
Meaning of Entrepreneur
● The entrepreneur is defined as someone who has the ability and desire to establish,
administer and succeed in a startup venture along with risk entitled to it, to make profits.
● The best example of entrepreneurship is the starting of a new business venture. The
entrepreneurs are often known as a source of new ideas or innovators, and bring new ideas
in the market by replacing old with a new invention.
● It can be classified into small or home business to multinational companies.
● In economics, the profits that an entrepreneur makes is with a combination of land, natural
resources, labour and capital.
● In a nutshell, anyone who has the will and determination to start a new company and deals
with all the risks that go with it can become an 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.
KEY TAKEAWAYS

● A person who undertakes the risk of starting a new business venture is called an
entrepreneur.
● An entrepreneur creates a firm to realize their idea, known as entrepreneurship,
which aggregates capital and labor in order to produce goods or services for profit.
● Entrepreneurship is highly risky but also can be highly rewarding, as it serves to
generate economic wealth, growth, and innovation.
● Ensuring funding is key for entrepreneurs: Financing resources include SBA loans
and crowd funding.
● The way entrepreneurs file and pay taxes will depend on how the business is set up
in terms of structure.
 Entrepreneurship is the act of creating a business or
businesses while building and scaling it to generate a profit.

● But as a basic entrepreneurship definition, that

one is a bit limiting.
● The more modern entrepreneurship definition
is also about transforming the world by solving
big problems.
● Like bringing about social change or creating
an innovative product that challenges the status
quo of how we live our lives on a daily basis.
What Is the Meaning of Entrepreneurship?
● The meaning of entrepreneurship involves an entrepreneur
who takes action to make a change in the world.
● Whether startup entrepreneurs solve a problem that many
struggle with each day, bring people together in a way no
one has before, or build something revolutionary that
advances society, they all have one thing in common: action.
● It’s not some idea that’s stuck in your head. Entrepreneurs
take the idea and execute it. Entrepreneurship is about
execution of ideas.
The Personal Keys to Entrepreneurship
 Evolution of Entrepreneurship
In the Earliest period, definition of entrepreneurship began as early as the
Marco Polo who comes to the Middle East for trade. Marco Polo has signed
an agreement with the capitalists to sell their products. In the contract
merchant adventurer took a loan at 22.5% rate including insurance. Capitalist
was the passive risk bearer and merchant adventurer took the active role in
trading, bearing all physical and emotional risks. When the merchant
adventurer successfully sold the goods and completed the trip, the profits
were divided with the capitalist taking most of them up to 75%, while the
merchant adventurer settled for the remaining 25%.
In middle ages, Entrepreneur is described as someone who is involved in the
care and control of a large production projects. It is possible to control the
project using the resources provided by the government. In this case, the
entrepreneur does not bear any risk. Entrepreneurs in this age, is a have
control and authority of construction works such as public buildings and
churches. A typical entrepreneur in the middle age was the priest.
In 17th century, the evolution of entrepreneurship can be related with the
relationship between risk and entrepreneurs. Entrepreneurship is the
person who signed the contract agreement with the government to provide
a service or supply products that have been determined. The contract price
is fixed. Then, the entrepreneurs are fully responsible for the gains and
losses of the business.
John law, a Frenchman was one of the entrepreneurs in that period. The
founder of the royal bank of France and the Mississippi Company, which
had an exclusive franchise to trade between France and the new world.
Monopoly on French trade eventually led to collapse of the company.
Richard Cantillion, an economist defines entrepreneurs earlier. In his
view, the entrepreneur is risk insurers. Merchants, farmers, craftsmen, and
so is an entrepreneurs. They buy things at a certain price and sell it at a
price that is uncertain, with the risks
In the 18th century, the person with capital was differentiated from the one
who needed capital. The entrepreneur was distinguished from the capital
provider. One reason for this differentiation was the industrialization
occurring throughout the world. Eli Whitney was an American inventor best
known for inventing the cotton gin. This was one of the key inventions of the
industrial Revolution. Thomas Edison, the inventor of many inventions. He
was developing new technologies and was unable to finance his inventions
himself. Edison was a capital user or an entrepreneur, not a provider or a
venture capitalist.
In 19th and 20th century, Entrepreneurs are not always associated with the
management. According to Merriam-Webster's online dictionary, an
entrepreneur is one who organizes, manages, and assumes the risk of a
business or an enterprise. The entrepreneur organizes and manages an
enterprise for personal gain. The materials consumed in the business, for
the use of the land, for the services he employs, and for the capital he
requires. Andrew Carnegie is one of the best examples of this definition.
Carnegie, who descended from a poor Scottish family, made the American
Steel Industry one of the wonders of the industrial world.
In the middle of the 20th Century, the function of the entrepreneurs is to recreate or revolutionize
the pattern of production by introducing an invention. Innovation, the act of introducing some
new ideas, is one of the most difficult tasks for the entrepreneur. For example, Edward
Harriman, who reorganized the railroad in the United States and John Morgan, who developed
his large banking house by reorganizing and financing the nation’s industries. Besides, the
Egyptian who designed and built great pyramids out of stone blocks weighing many tons each,
to laser beams, supersonic planes and space stations.

In 21st century, Entrepreneurs are known as a hero for Free Enterprise market. Entrepreneur of
the century created many products and services and is willing to face a lot of risks in the
business. According to Kuratko & Hodgetts, most people say entrepreneurs are pioneers in
creating new businesses. In the year 2005 Hisrich, Peter and Shepherd regarded entrepreneur as
an organizer who controls, systematize, purchases raw materials, arranges infrastructure, throw
in his own inventiveness, expertise, plans and administers the venture.
 Role of
Entrepreneurship in
economic Development
1. Entrepreneurship promotes capital formation by mobilising the
idle saving of the public.
2. It provides immediate large-scale employment. Thus, it helps
reduce the unemployment problem in the country, i.e., the root of
all socio-economic problems.
3. It promotes balanced regional development.
4. It helps reduce the concentration of economic power.
5. It stimulates the equitable redistribution of wealth, income and
even political power in the interest of the country.
6. It encourages effective resource mobilisation of capital and skill
which might otherwise remain unutilized and idle.
7. It also induces backward and forward linkages which stimulate
the process of economic development in the country.
8. Last but no means the least, it also promotes country’s export
trade i.e., an important ingredient to economic development. Thus,
it is clear that entrepreneurship serves as a catalyst of economic
development.

On the whole, the role of entrepreneurship in economic

development of a country can best be put as “an economy is the
effect for which entrepreneurship is the cause”.
 Promote capital formation

● Entrepreneurs promote capital formation by mobilising the idle savings of

public.
● They employ their own as well as borrowed resources for setting up their
enterprises.
● Such type of entrepreneurial activities lead to value addition and creation of
wealth, which is very essential for the industrial and economic development
of the country.
 Creates large Scale Employment

● Entrepreneurs provide immediate large-scale employment to the unemployed

which is a chronic problem of underdeveloped nations.
● With the setting up. of more and more units by entrepreneurs, both on small and
large-scale numerous job opportunities are created for others.
● As time passes, these enterprises grow, providing direct and indirect employment
opportunities to many more.
● In this way, entrepreneurs play an effective role in reducing the problem of
unemployment in the country which in turn clears the path towards economic
development of the nation.
 Promotes Balanced Regional Development

● Entrepreneurs help to remove regional disparities through setting up of industries in

less developed and backward areas.
● The growth of industries and business in these areas lead to a large number of public
benefits like road transport, health, education, entertainment, etc.
● Setting up of more industries lead to more development of backward regions and
thereby promotes balanced regional development.
 Reduce Concentration of Economic Power

● Economic power is the natural outcome of industrial and business

activity.
● Industrial development normally lead to concentration of economic
power in the hands of a few individuals which results in the growth of
monopolies.
● In order to redress this problem a large number of entrepreneurs need to
be developed, which will help reduce the concentration of economic
power amongst the population.
 Wealth creation and distribution

● It stimulates equitable redistribution of wealth and income in

the interest of the country to more people and geographic areas,
thus giving benefit to larger sections of the society.
● Entrepreneurial activities also generate more activities and give
a multiplier effect in the economy.
 Social Advantage

● Entrepreneurs help in the development of the society by providing

employment to people and paves for independent living They
encourage democracy and self-governance.
● They are adept in distributing national income in more efficient and
equitable manner among the various participants of the society.
 Improvement in Standard of Living

● Increase in the standard of living of the people is a characteristic feature of

economic development of the country.
● Entrepreneurs play a key role in increasing the standard of living of the people by
adopting latest innovations in the production of wide variety of goods and services
in large scale that too at a lower cost.
● This enables the people to avail better quality goods at lower prices which results in
the improvement of their standard of living.
 Increase per capita income
Entrepreneurs help to increase the per capita income of the country in various ways and
facilitate development of backward areas and weaker sections of the society

Growth of capital market

Entrepreneurs raises money for running their business through shares and debentures. Trading of shares and
debentures by the public with the help of financial services sector leads to capital market growth.

Growth of infrastructure
The infrastructure development of any country determines the economic development of a country, Entrepreneurs
by establishing their enterprises in rural and backward areas influence the government to develop the infrastructure
of those areas.
 Development of Trader
Entrepreneurs play an important role in the promotion of domestic trade and foreign trade.
They avail assistance from various financial institutions in the form of cash credit, trade
credit, overdraft, short term loans, secured loans and unsecured loans and lead to the
development of the trade in the country.
Economic Integration
Entrepreneur reduces the concentration of power in a few hands by creating employment
opportunities and through equitable distribution of income. Entrepreneurs promote
economic integration in the country by adopting certain economic policies and laws
framed by the government. They help in removing the disparity between the rich and the
poor by adopting the rules and regulation framed by the government for the effective
functioning of business in the country.
Managerial vs entrepreneurial
approach
Classification
and
types of
Entrepreneurs
Characteristics and qualities of successful Entrepreneurs
 10 CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS
1. Curiosity
Successful entrepreneurs have a distinct personality trait that sets them apart from other
organizational leaders: a sense of curiosity.
An entrepreneur's ability to remain curious allows them to continuously seek new
opportunities. Rather than settling for what they think they know, entrepreneurs ask
challenging questions and explore different avenues.

2. Structured Experimentation
Along with curiosity, entrepreneurs require an understanding of structured
experimentation. With each new opportunity, an entrepreneur must run tests to determine
if it’s worthwhile to pursue.
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, but successful business leaders must be
adaptable. This is especially true for entrepreneurs who need to evaluate situations and
remain flexible to ensure their business keeps moving forward, no matter what
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.
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.

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.
7. Comfortable with Failure
In addition to managing risk and making calculated decisions, entrepreneurship requires
a certain level of comfort with failure.

8. Persistence
While many successful entrepreneurs are comfortable with the possibility of failing, it
doesn’t mean they give up easily. Rather, they see failure as an opportunity to learn and
grow.
9. Innovation
Many ascribe to the idea that innovation goes hand-in-hand with entrepreneurship. This
notion is often true. Some of the most successful startups have taken existing products or
services and drastically improved them to meet the changing needs of the market.

10. Long-Term Focus

Finally, most people think of entrepreneurship as the process of starting a business. While
the early stages of launching a venture are critical to its success, the process doesn’t end
once the business is operational.
 Entrepreneurship is a long-term endeavor,

and entrepreneurs must focus on the process

from beginning to end to ensure long-term success.

 Women
Entrepreneu
rs
Entrepreneurship inside of established organizations
is called Corporate Entrepreneurship or
Intrapreneurship.

All companies want organic growth, but few organizations have

a process in place to support and sustain growth over time.

An innovation process alone is not enough.

Organizations need to build a framework to support innovation

and new business growth.
Corporate Entrepreneurship (Intrapreneurship) is a process used to
develop new businesses, products, services or processes inside of an
existing organization to create value and generate new revenue growth
through entrepreneurial thought and action.
Systems View of Corporate Entrepreneurship:
Corporate entrepreneurship sets the context for innovation and growth.
It provides a systems view of the resources, processes and environment
that are needed to support, motivate and engage the organization in
entrepreneurial thinking and action.
Benefits:

● Organizations with strong entrepreneurial orientations statistically

perform better. They achieve higher levels of productivity,
innovation, growth, employee engagement and financial returns.
● Although business growth is the overall end game, corporate
entrepreneurship is difficult to achieve. It challenges traditional
organizational practices.
● Many of the things needed to support the core business are just the
opposite of what you need to do to build a new business.
Goal:

● The goal of corporate entrepreneurship is to build capabilities that

enable organizations to accelerate new business growth.
Implementation:

There is no perfect way to implement corporate entrepreneurship.

There are however three components that enable corporate
entrepreneurship; people, process and place.
● People – leaders that possess a core set of action oriented
competencies and behaviors
● Process – systems and processes that support entrepreneurial
thinking and action
● Place – an environment conducive to entrepreneurship, learning
and growth
 Social
entrepreneurship
Social entrepreneurship is a process that provides viable solutions
to problems with the purpose to improve access to social services,
health education and local labor exploitation, aims to reduce all
forms of discrimination by providing jobs to people in need
(Borza et al, 2009)
Social entrepreneurship is a process that provides viable solutions to
problems with the purpose to improve access to social services, health
education and local labor exploitation, aims to reduce all forms of
discrimination by providing jobs to people in need
– (Borza et al, 2009)

Social entrepreneurs focus on systemic social change that disregards

institutional and organizational norms and boundaries. The social
entrepreneur seeks to achieve social goals by developing new combinations
of goods, services and methods,incorporating a high degree of innovation
–(Hatten, 2009).
● Social entrepreneurship is the activity of establishing new business
ventures to achieve social change.
● The business utilises creativity and innovation to bring social, financial,
service, educational or other community benefits.
● Social enterprises are not charities or welfare agencies.
● They are private businesses established by entrepreneurs with an
emphasis on human values rather than just profit.
● These businesses focus on working with and enhancing the social
capital within the community by encouraging participation, inclusion
and utilising a bottom-up approach to achieve social change
Characteristics of Social Entrepreneurship
Social Mission:
The sole objective of social entrepreneurship is to provide a solution to
the existing social issue or problem such as poverty, illiteracy,
unemployment, women safety, health care, sanitation, environmental
destruction, corruption, etc., for which the venture has been formed.
Innovative and sustainable solutions:

Social entrepreneurs believe that the main cause of the existence of the
social problems is that the existing solutions are not at all effective and
long-lasting, that can completely eradicate them.

So, their approach to resolving the issue will be unique, they also find an
innovative and interesting way to devise a solution which is not just
insightful but effective too.
Entrepreneurial Strategies:

Social Entrepreneurs use entrepreneurial strategies, skills and

principles in order to identify the main cause of the problem and finding
out unique solution and implement them so as to eradicate the social
problems.
Therefore, social entrepreneurship covers four main elements:

● Focus on a specific social need.

● Oriented towards the creation of social value. Social value implies
the fundamental long-standing need of society.
● Stresses on a social change
● Admits that the means to achieve the mission can include
completely altruistic, hybrid or market-oriented mechanism.
Who is a Social Entrepreneur?
● Social Entrepreneur is an individual who identifies social issues, use
his/her entrepreneurial skills to come up with innovative solutions
and implement the same in order to benefit humanity. Their main
focus is on the marginalized section of society.
● A social entrepreneur is ready to bear all the risks and put their
efforts so as to bring positive improvements in the condition of
society. They create new products and services, systems and
solutions to initiate change. Hence, they act as a change agent who
fosters innovation and inclusiveness.
 Characteristics of a Social Entrepreneur
● Not bound by norms or traditions
● Not confined by barriers that stand in the way of their goals
● Develop new models and pioneer new approaches to enable them to
overcome obstacles
● Take innovative approaches to solve social issues
● Transform communities through strategic partnerships
❏ One of the core characteristics of a social enterprise which separates it
from other business models is its capacity to earn revenue coupled with
the social mission.
❏ A vital dimension intersecting the discussion of social entrepreneurship
is a social enterprise’s involvement with financial aspects.
❏ Many scholars argue whether a social enterprise should be non-profit
or for-profit entity.
❏ In fact, the for-profit entity of the social enterprises have been victim of
more argument and controversy as a contrasting element to social value
creation.
 Corporate
Social
entrepreneurshi
p
Question Bank:

1. Give the definition and meaning of entrepreneurship?

2. Explain classification of entrepreneurship?
3. Explain types of entrepreneurship given by Danhof?
4. What are the Characteristics of entrepreneur?
5. Give brief description on evolution of entrepreneurship?
6. Explain role of entrepreneurship in economic development?
7. Explain Corporate Entrepreneurship in details?
8. Explain Social entrepreneurship in details?
9. Explain Women entrepreneurship in details?
10. What are problems and Challenges for Women Entrepreneurs?
11. Differentiate entrepreneurial vs managerial approach?
12. Explain Corporate social responsibility in details?
13. What are the qualities of women entrepreneurs?
14. What are the critical steps for conceptualizing corporate entrepreneurship strategy?
15. Explain characteristics of social entrepreneurship?
16. Explain Corporate Social Entrepreneurship in details?