Module-I Basic Concepts Entrepreneurship Development

The word entrepreneur is derived from the French word enterprendre. It means to undertake. The term entrepreneur was applied to business initially by the French economist, Cantillon, in the 18th century, to designate a dealer who purchases the means of production for combining them into marketable products.

MEANING
An individual who bears the risk of operating a business in the face of uncertainity about the future conditions. An entrepreneur is a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome. It is an ambitious leader who combines land, labor, and capital to often create and market new goods or services.

PETER DRUCKER
Entrepreneur as one who always searches for change, respond 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 services.

E.E. HAGGEN
An entrepreneur is an economic man who tries to maximise his profits by innovations. Innovations involve problem- solving and the entrepreneurs gets satisfaction from using his capabilities in attacking problems.

Financial Reasons To Start A Business

Loss of Job Or Change Of Employment

27% 39%

More Income For Necessities Second Income Bridge A Gap Till Retirement

13%

Forced Into Early Retirement Don't Know Or Not Stated

3% 6%

12%

Non-Financial Reasons To Start A Business

9% 7% 9% 41%

Do Something I Love More Flexibility Be Key Decision Maker Change Lifestyle Spend More Time With Family Don't Know or Not Stated

13% 21%

Some Latest Terms

Micropreneurs
Not every person who starts a business has the mission of making a lot of money and growing it to a worldclass business. Some just want a simple balanced lifestyle while doing the kind of work they enjoy doing. such business owners areMicropreneurs

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Intrapreneur
A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk taking and innovation.

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Intrapreneurship
Advantages of Intrapreneurship Intapreneuring is an excellent opportunity for creative employees with entrepreneurial spirit, management qualities, and a sense of belonging to their company. Employee dont have to leave his company to fulfill his entrepreneurial dream

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Technopreneur
Technopreneur is coined just a couple of years back refer to Technology Entrepreneur. A Technopreneur has two major characteristics: 1.He does things NOT for profits but he innovate something because he wants to innovate. 2.He is comfortable working with, or using, technology.
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Myths About Entrepreneurs

1. Entrepreneurs are born, not made : Entrepreneurs cannot be taught or learned, they are inbuilt traits with which a person must be born. 2. All you need is money to be an entrepreneur: A venture needs capital to survive & it is true that a large number of business failure occur because of lack of adequate financing. 3. All you need is luck to be an entrepreneur: Being in the right place at the right time is always an advantage but luck happens when preparation meets opportunity

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Skills of Successful Entrepreneurs

Coordination
The ability to manage many different types of jobs and responsibilities at the same time.

Evaluation
The ability to examine important facts about the business and to determine the least risky way to proceed

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Skills of Successful Entrepreneurs

Organization
The ability to organize all the resources of the business in order to make it run in the most efficient manner.

Research
The ability to obtain all the necessary information to insure that the best possible decisions are made.

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HOW PEOPLE BECOME AN ENTREPRENEUR?

By Necessity and Opportunity, Design and Default Triggered by Social Disruption or Interruption Entrepreneurs are created in good and bad economic times. Achievements and Financial Rewards for an Entrepreneur. Many begins but few make it.

ENTREPRENEURSHIP
It requires a willingness to take calculated risks both personal and financial, and then to do everything possible to reduce the chances of failure. It also includes the ability to build an entrepreneurial or venture team to complement your (the entrepreneur) own skills and talents.

ENTREPRENEUR Vs ENTREPRENEURSHIP Entrepreneurs People who create and grow enterprises Entrepreneurship Process through which entrepreneurs create and grow businesses. Opportunity idea translation creativity.

WHY ENTREPRENEURSHIP
To reduce backwardness of the people. Economic development of the region. Proper utilization of human potentiality. Special attention to take up new activities. To create self-employment and generation of employment opportunity. Eradication of regional imbalances. Better economic gain.

Characteristics of Successful Entrepreneur

Characteristics of Successful Entrepreneur

Risk taker
Determination & Persistence Vision, creativity and innovation

Motivation to succeed

Entrepreneur

Team building

Problem solver Dynamism

Spot and take advantage of opportunities

Famous Entrepreneurs

How to be a successful Entrepreneur?

To be a Successful Entrepreneur,
an Entrepreneur should have some basic qualities in his personality.

These are:

Entrepreneur should be:

Self-confident and optimistic Able to take calculated risk Respond positively to changes Flexible and able to adapt Knowledgeable of markets Able to get along well with others

Independent minded
Energetic and diligent Creative, need to achieve Dynamic Leader

Responsive to suggestions
Take initiatives Resourceful and persevering Perceptive with foresight

Kindsthe type of business of entrepreneurs According to

1 Business entrepreneur 2 Trading entrepreneur 3 Service entrepreneur According to the use of technology 1 Technical entrepreneur 2 Non-technical entrepreneur According to the area 1 Urban entrepreneur 2 Rural entrepreneur

Kinds of entrepreneurs
According to gender 1 Men entrepreneur 2 Woman entrepreneur According to the sales of operation 1 Small scale entrepreneur 2 large scale entrepreneur Others 1 Innovative entrepreneur 2 Imitating entrepreneur 3 Drone entrepreneur

TYPES OF ENTREPRENUERS

4.Fabian Entrepreneurs

INNOVATIVE ENTREPRENEURS
Launches new products, discovers new markets, establishes new methods of production and restructures the enterprise. Can work only when definite level of progress has been previously accomplished. They focus on revolutionalisation and development.

IMITATIVE ENTREPRENEURS Adopt victorious innovations launched by the innovative entrepreneurs. Duplicate the technology and techniques innovated by others. He is more an organizer of factor of production than a creator. Suitable for underdeveloped countries.

FABIAN ENTREPRENEURS
Exemplified by great caution and skepticism in experimenting any change in the organization. They imitate only in situations where it becomes necessary to do so. Such entrepreneurs are shy and lazy. Their dealings are determined by customs, religion, tradition and past practices.

DRONE ENTREPRENEURS

Drone Entrepreneurs suffer losses, as they refuse to make any modifications in the existing production methods. They are laggards because they continue in their traditional way.

Development of Industries in Rural areas Self-employment

Income generation

Employment for Others

Entrepreneurship

More goods & Services available Promotion of the Use of Modern Technology

Development of Entrepreneurial Qualities & Attitudes

Encourage more researches Studies

Women Entrepreneurs
Pandit Jawaharlal Nehru says.

When women move forward, the family moves, the village moves and the Nation moves

DEFINATION
AN ENTERPRISE OWNED AND CONTROLLED BY A WOMAN HAVING A MINIMUM FINANCIAL INTEREST OF 51 PER CENT OF THE CAPITAL AND GIVING AT LEAST 51 PER CENT OF THE EMPLOYMENT GENERATED BY THE ENTERPRISE TO WOMEN GOVT. OF INDIA

Some vital statistics on women

70 % of 1.4 billion of the world poor people are women. Of 30 million refugees 80 % are women and children Of 1 billion illiterates two thirds are women 150 million of kids not in school 2/3 are girls. In India women are 48 % of the population but their participation in economic activity is only 34 %.

Why they need to work

Push Factors
Death of bread winner Sudden fall in family income Permanent inadequacy in income of the family

Pull Factors
Womens desire to evaluate their talent To utilize their free time or education Need and perception of Womens Liberation, Equity etc. To gain recognition, importance and social status. To get economic independence

Factors influencing woman Entrepreneurs

Establishing their own creativity Establishing their own identity Achievement of excellence Building confidence Develop risk taking ability Motivation Equal Status in society Freedom & mobility

Types of woman Entrepreneurs

First Category
Established in big cities Having higher level technical & professional qualifications Sound financial positions with businesses like export houses, travel agencies, etc, they asptre to turnover of more than Rs. 5 crore.

Second Category
Established in cities and towns Having sufficient education Undertaking women services-kindergarten, crches, beauty parlors, health clinic etc.

 Third Category
Illiterate women Financially week Involved in family business such as Agriculture, Horticulture, Animal Husbandry, Dairy, Fisheries, Agro Forestry, Handloom, Power loom etc.

Fourth category
- Self help groups those who are well served and mentored by micro finance institutions

Women Entrepreneurship in India

Earlier there were 3 Ks
Kitchen Kids Knitting

Then came 3 Ps
Powder Pappad Pickles

At present there are 4 Es

Electricity Electronics Energy Engineering

Women Work Participation

Country India (1970-1971) India (1980-1981) India (1990-1991) India (2000-2001) USA UK Percentage 14.2 19.7 22.3 31.6 45 43

Indonesia Sri Lanka

Brazil

40 35
35

Some examples
Mahila Gram Udyog
7 ladies started in 1959: Lizzat Pappad

Lakme
Simon Tata

Herbal Heritage
Ms. Shahnaz Hussain

Balaji films
Ekta Kapoor

Main Problems for women entrepreneurship

Dual role to play at workplace & at home place Subordinate to men Just that her being women Non-awareness of facilities provided by government Competition with large scale units Problems related to marketing

Suggestions
Procedure of getting finance should be simple Effective propagation of programmes and yojna Linkages between product, services and market centers. Encouragement to technical and professional education. Effective use of IT Home based business

Role of Entrepreneur in Economic development

New product in market

Money circulation
New technology Creation of employment Discover new source of material Better Standard of living New ideas bring huge changes Develop new market Mobilize capital resources

Problems and Challenges faced by Entrepreneurs

Internal Problems of Entrepreneurs 1 Planning a. Technical feasibility b. Economic viability 2 Implementation 3 Production a. Production mgt b. Labour mgt c. Marketing mgt d. Financial mgt e. Administrative mgt

Problems and Challenges faced by Entrepreneurs

External Problems of Entrepreneurs Infrastructural( Location, power, water, communication) Financial (capital, long term funds, recovery, ) Marketing Taxation Raw material Industrial and financial regulations Inspections Technology Govt. policy Administrative hurdles Corruption Lack of direction Competitive and volatile environment

 Ten Deadly Mistakes of Entrepreneurship:

Business entrepreneurship fail because: Management Mistakes Lack of Experience Poor financial control Weak marketing efforts Failure to develop a strategic and effective plan Uncontrolled Growth Poor location Improper inventory control Incorrect or unsuitable pricing The inability of to move into entrepreneurial thinking mindset from the previous secured permanent managerial position held.

 How to avoid failure in a Entrepreneurial business.

Know your business in depth. Develop a good, effective and solid Business Plan. Manage your financial resources effectively. Have a thorough and complete financial statement. Learn hire and manage people effectively.