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 business.

• In economics, entrepreneurship is connected with land, labor and

natural resources and capital can generate a profit. The
entrepreneurial vision is defined by discovery and risk-taking and is
an indispensable part of nation’s capacity to succeed in an ever-
changing and more competitive global marketplace.
ENTREPRENEURSHIP

• It is a philosophy or process through which an entrepreneur seeks innovation

and employment.

Entrepreneur Entrepreneurship Enterprise

Person ------ Process of Philosophy --- Object
Entre – enter Pre – before Neur – Nerve Centre

Entrepreneurship can be described as a creative and innovative response to

the environment.
ENTREPRENEUR

• Is defined as someone who has the ability and desire to establish,

administer and succeed in a startup venture along with the risk
entitled to it, to make profits. The best example of
entrepreneurship is the starting of new business venture. The
entrepreneurs are often known as a source of new ideas or
innovators, and bring 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, labor 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 entrepreneur.
ENTREPRENEURSHIP IN THE 21ST CENTURY

• Is the process of creating something different

with value by devoting the necessary time and
effort, assuming the accompanying financial,
psychic, social risks and receiving the resulting
rewards of monetary and personal satisfaction
and independence.
NATURE AND DEVELOPMENT OF
ENTREPRENEURSHIP
• Stems from french verb “Entreprendre” means in between-taker
or go between.

NEW DEFINITION INVOLVES FOUR ASPECTS:

1. The creation process
2. The devotion of time and efforts
3. The assumption of risks
4. Rewards of independence, satisfaction and money
ADVANTAGES OF ENTREPRENEURSHIP

TO AN INDIVIDUAL

 Self-Employment
 Employment for near and dear
 Prolonged career for next generations
 Freedom to use own ideas – Innovation and creativy
 Unlimited income/ higher retained income
 Independence
 Satisfaction
ADVANTAGES OF ENTREPRENEURSHIP

TO THE NATION

 Provides larger employment

 Results in wider distribution of wealth
 Mobilizes local resources, skills and savings
 Accelerates the pace of economic development
 Stimulates innovation and efficiency
FACTORS FAVORING ENTREPRENEURSHIP

• Growth of education – science, technology & management

• Developed infrastructure facilities
• Financial assistance
• Training facilities
• Protective and promotional policies
• Globalization
WHAT MAKES A SUCCESSFUL ENTREPRENEUR?

• The urge for achievement • Flexibility

• Determination to win • Capacity to plan and organized
• Win-Win Personality • Preparedness to undergo physical and
• Willingness to take moderate risks emotional stress
• Ability to identify and explore • Positive self-concept
opportunities • Future orientation: Vision
• Analytical ability to take strategic • Ethics and Values: Mission
decisions
• Perseverance
WHO CAN BE ENTREPRENEUR?

• Who can take moderate risks? of success?

• Who has ability to work hard? • Who gets stimulation by feedback?
• Who can capitalize on • Who possess skills in organizing
opportunities? • Who can be male or female
• Who has some financial strength? • Who may not have previous
• Who feels the need for experience?
achievement?
• Who has desire for responsibility?
• Who has perception of probability
THREE STAGES THAT WILL ALLOW YOU TO CREATE AND
COMMERCIALIZE YOUR PRODUCT AND MAKE YOU BUSINESS GROW AND
SUCCEED

1. Creativity
– is the act of channeling imagination into something concrete. It is the
very first stage of design, where ideas start to actually take form, and a
plan can be developed.

Examples of Creativity:
In the case of Uber, creativity was necessary in producing the concept of
ride sharing and of making driving jobs accessible to any individual.
Another example can be the Google Glass, innovative (monetary return
over investment made by the company).
THREE STAGES THAT WILL ALLOW YOU TO CREATE AND
COMMERCIALIZE YOUR PRODUCT AND MAKE YOU BUSINESS GROW AND
SUCCEED

2. Invention
- is the physical creation of a new concept and idea. Also, from Nesta’s
innovation policy took it, it is defined as The creation of an idea to do or
make something without verification that it works, or is commercially
valuable. Invention cannot occur without creativity, but just creativity is
not enough to properly develop an idea.

Examples of Invention:
Product designs, business models, or working prototypes.
Uber channeled invention in creating a solid and working business model,
based upon the ideas they had formed in the creation stage.
THREE STAGES THAT WILL ALLOW YOU TO CREATE AND
COMMERCIALIZE YOUR PRODUCT AND MAKE YOU BUSINESS GROW AND
SUCCEED
3. Innovation
- ties everything together in business. According to British Standards, innovation
is the successful exploitation of new ideas. It involves turning an invention into
a commercial success and encouraging its widespread use. This is the stage
where bold ideas, once properly developed, are brought to the public eye. This
is what Uber has achieved, now that its product is in use all over the world and
benefits people everywhere.

Examples of Innovation
Successful products and services like care of Amazon scout, impossible food,
google’s self-driving taxis and Etc.
Successful process innovations like Amazon predictive orders, or additive
manufacturing process.
CHARACTERISTICS OF ENTREPRENEUR

Not all entrepreneurs are successful; There are definite

characteristics that make entrepreneurship successful. A few of
them are mentioned below:

1. Ability to take a risk – starting any new venture involves a

considerable amount of failure risk. Therefore, an entrepreneur
needs to be courageous and able to evaluate and take risks, which is
an essential part of being an entrepreneur.
CHARACTERISTICS OF ENTREPRENEUR

2. Innovation – it should be highly innovative to generate new ideas,

start a company and earn profits out of it. Change can be the
launching of a product that is new to the market or a process that
does the same thing but in a more efficient and economical way.

3. Visionary and Leadership quality – to be successful, the

entrepreneur should have a clear vision of his new venture. However
to turn the idea into reality, a lot of resources and employees are
required. Here, leadership quality is a paramount because leaders
impart and guide their employees towards the right path of success.
CHARACTERISTICS OF ENTREPRENEUR

4. Open-Minded – in a business, every circumstance can be an

opportunity and used for the benefit of a company. For example,
Paytm recognized the gravity of demonetization and acknowledge
the need for online transactions would be more, so it utilized the
situation and expanded massively during this time.

5. Flexible – an entrepreneur should be flexible and open to change

according to the situation. To be on top, a business person should be
equipped to embrace change in a product and service, as and when
needed.
CHARACTERISTICS OF ENTREPRENEUR

6. Know your Product – a company owner should know the product

offerings and also be aware of the latest trend in the market. It is
essential to know if the available product or service meets the
demands of the current market, whether it is time to tweak it a
little. Being able to be accountable and then alter as needed is a
vital part of entrepreneurship.
FOUR TYPES OF ENTREPRENEURSHIP

1. Small Business Entrepreneurship

• This businesses are hairdresser, grocery store, travel agent,
consultant, carpenter, plumber, electrician, etc. These people run
or own their own business and hire family members or local
employee. For them, the profit would be able to feed their family
and not making 100 million business or taking over an industry.
They fund their business by taking small business loans or loans
from friends and family.
FOUR TYPES OF ENTREPRENEURSHIP

2. Scalable Startup Entrepreneurship

• This start-up entrepreneur starts a business knowing that their
vision can change the world. They attract investors who think and
encourage people who think out of the box. The research focuses
on scalable business and experimental models, so, they hire the
best and the brightest employees. They require more venture
capital to fuel and back their project or business.
FOUR TYPES OF ENTREPRENEURSHIP

3. Large Company Entrepreneurship

• This huge companies have defined life-cycle. Most of these
companies grow and sustain by offering new and innovative
products that revolve around their main products. The change in
technology, costumer preferences, new competition, etc., build
pressure for the large companies to create an innovative product
and sell it to the new set of costumers to the new market. To cope
with the rapid technological changes, the existing organizations
either buy innovation enterprises or attempt to construct the
product internally.
FOUR TYPES OF ENTREPRENEURSHIP

4. Social Entrepreneurship
• This type of entrepreneurship focuses on producing product and
services that resolve social needs and problems. Their only motto
and goal is to work for society and not make any profits.
IMPORTANCE OF ENTREPRENEURSHIP

• Creation of employment
- Entrepreneurship generates employment. It provides an entry-
level job, required for gaining experience and training for
unskilled workers.
• Innovation
- It is the hub of innovation that provides new product ventures,
market, technology and quality of goods, etc., and increase the
standard of living of people.
IMPORTANCE OF ENTREPRENEURSHIP
• Impact on Society and Community Development
- A society becomes greater if the employment base is large and diversified.
It brings about changes in the society and promotes facilities like higher
expenditure on education, better sanitation, fewer slums, a higher level of
homeownership. Therefore, entrepreneurship assists the organization
towards a more stable and high quality of community life.
• Increase standard of living
- Entrepreneurship helps to improve the standard of living of a person by
increasing the income. The standard of living means, increase in the
consumption of various goods and services by a household for a particular
period.
IMPORTANCE OF ENTREPRENEURSHIP

• Supports research and development

- New products and services need to be researched and tested
before launching in the market. Therefore, an entrepreneur also
dispenses finance for research and development with research
institutions and universities. This promotes research, general
construction, and development in the economy.
Entrepreneurs Spur Economic Growth
New products and services created by entrepreneurs can produce a cascading effect,
where it stimulates related businesses or sectors that need to support the new venture,
furthering economic development.
For example, a few information technology companies made up the IT industry in
India during the 1990’s. The industry quickly expanded and many other sectors benefited
from it. Businesses in associated industries such as call center operations, network
maintenance companies, and hardware providers flourished.
Education and training institutes nurtured a new class of IT workers who were offered
better, high paying jobs. Infrastructure development organizations and even real estate
companies capitalized on this growth as workers migrated to cities where employment
was growing.
Similarly, future development efforts in underdeveloped countries require robust
logistics support, capital investments and a qualified workforce. From the highly
qualified programmer to the construction worker, entrepreneurship benefits a large part
of the economy.
Entrepreneurs Add to National Income
Entrepreneurial ventures help generate new wealth. Existing
businesses may remain confined to existing markets and may hit the
glass ceiling in terms of income. New and improved products, services
or technology from entrepreneurs enable new markets to be developed
and new wealth to be created.
Additionally, increased employment and higher earnings contribute
to better national income in the form of higher tax revenue and higher
government spending. This revenue can be used by the government to
invest in other, struggling sectors and human capital. Although it may
make a new few existing players redundant, the government can
soften the blow by redirecting surplus wealth to retrain workers.
Entrepreneurs Create Social Change

Through offering unique goods and services, entrepreneurs break away

from tradition and reduce dependence on obsolete systems and
technologies. This results in an improved quality of life, improved morale,
and greater economic freedom.
For example, the water supply in a water-scarce region will, at times,
force people to stop working to collect water. This will impact their
business, productivity and income. Imagine an innovative and automatic
pump that can fill people’s water containers automatically. This type of
innovation ensures people are able to focus on their jobs without worrying
about a basic necessity like water. More time to devote to work translates
to economic growth.
 For a more contemporary example, smart phones and apps have
revolutionized work and play across the globe. Smartphones are not
exclusive to wealthy countries or people. As the growth of the
smartphone market continues, technological entrepreneurship can
have a profound, long lasting impact in the world.
Moreover, the globalization of technology means entrepreneurs
in a lesser-developed countries have access to the same tools as
their counterparts in richer countries. They also have the advantage
of a lower cost of living, so a young entrepreneur from an
underdeveloped country can compete with a multi-million-dollar
existing product from a developed country.
Community Development

Entrepreneurs regularly nurture ventures by other like-minded

individuals. They also invest in community projects and provide
financial support to local charities. This enables further
development beyond their own ventures.
Some famous entrepreneurs, such as Bill Gates, have used their
money to finances good causes, from education to public health.
The qualities that make one an entrepreneur are the same qualities
that motivate entrepreneurs to pay it forward.
 This are some entrepreneurs who help community development
by building community charities:

Mark Zuckerberg Warren Buffett Bill Gates