ENTREPRENEURSHIP AND SMALL BUSINESS ENTERPRISES

ENTERPRISE NAME : PRISM ENTERPRISES PVT. LTD.

UNIT – I: ENTREPRENEURIAL PERSPECTIVES

Presented by

MD. AFROOZ PASHA (17B65A0320)

P.HARISH (17B65A0322)
MALTHUMKAR MAHESH (17B65A0317)
R.GANESH (17B65A0323)
 The Evolution of Entrepreneurship

• Entrepreneur is derived from the French entreprendre, meaning “to

undertake.”
• The entrepreneur is one who undertakes to organize, manage, and
assume the risks of a business.
• Although no single definition of entrepreneur exists and no one profile
can represent today’s entrepreneur, research is providing an
increasingly sharper focus on the subject.
 Concept of Entrepreneurship
Entrepreneurship is the tendency of person to organize the
business of his own and to run it profitably , using all the
qualities of leadership , decisions making and managerial
caliber etc.
Entrepreneurship involves not only the process that leads to the
setting up of a business entity but also the expansion and
development of an on going concern. The study of
entrepreneurship is concerned with the entrepreneurial behavior,
the dynamics of business set up and expansion and
development. The term “entrepreneur” is often used
interchangeably with “entrepreneurship” . But conceptually they
are different.
Types of Entrepreneurs
i. Innovative entrepreneur: Innovative entrepreneurs
are generally aggressive and possess the art of cleverly
putting the attractive possibilities into practice.
ii. Imitative entrepreneurs: Imitative entrepreneurs are
characterized by readiness to adopt successful
innovations inaugurated by successful innovating
entrepreneurs.
iii.Fabian entrepreneur: Fabian entrepreneurs are
cautions and skeptical in experimenting change in their
enterprises. Such entrepreneurs are shy, lazy and
lethargic.
iv. Drone entrepreneur: Drone entrepreneurs are
characterized by a refusal to adopt opportunities to make
changes in production formulae even at the cost of
severely reduced returns.
 Entrepreneurial Competencies
• Initiative: Acting out of choice rather than compulsion, taking the lead rather than waiting
for others to start.
• Risk Mitigation: the taking of actions that reduce the probability of a risk occurring or
reduce the potential impact if the risk were to occur.
• Sees and Acts on Opportunities: A mindset where one is trained to look for business
opportunities from everyday experiences. Recall ‘oranges’ example.
• Resilience: the ability to cope with stresses and disturbances such that one remains well,
recovers or even thrives in the face of adversity
• Persistence: A ‘never say die’ attitude, not giving up easily, striving continuously until
success is achieved.
• Opportunity Recognition: the capacity to perceive changed conditions or overlooked
possibilities in the environment that represent potential sources of profit or return to a
venture
• Information seeking: Knowing and knowing who knows, consulting experts, reading
relevant material and an overall openness to ideas and information.
• Concern for High Quality of Work: Attention to details and observance of
established standards and norms.
• Commitment to Work Contract: Taking personal pains to complete a task as
scheduled.
• Efficiency Orientation: Concern for conservation of time, money and effort.
• Systematic Planning: Breaking up the complex whole into parts, close
examination of the parts and inferring about the whole; e.g. simultaneously
attending to production, marketing and financial aspects (parts) of the overall
business strategy (the whole).
• Problem-solving: Observing the symptoms, diagnosing and curing.
• Self-confidence: Not being afraid of the risks associated with business and
relying on one’s capabilities to successfully manage these.
• Assertiveness: Conveying emphatically one’s vision and convincing others of its
value.
 Capacity Building for Entrepreneurs.
• Positive attitude – Success is 90% attitude and 10% aptitude. A positive
attitude is bound to lead to success.
• Learn to handle money intelligently – For success as an entrepreneur, it is
absolutely necessary to become an efficient money manager.
• Expect “no”- Realize that no’s are not personal. Every “no” gets you closer
to a “yes”. Put your best foot forward and you will get a “yes”.
• Be involved – Be a part of what is going on and network with others in your
field.
• Remember the magic word – In business the magic word is “Ask”. Never
expect the business to come to you. You create your business by asking for it.
• Be a goal setter – Set your goal, write it down, set a target for
achieving the goal and mobilize all your energies and resources to
accomplish the same each day, each week, and each month. Little can
ever be accomplished without definite goals.
• Be organized – Each evening, list all the things you want to get done
the following day. That gives you an organized approach to each day.
As each task is finished, mark it off your list.
• Be enthusiastic: Enthusiasm is the “fuel” that entrepreneurs run on.
Enthusiasm generates its own energy. Energy and good health are
synonymous with busy, happy people and people who are achievers.
Entrepreneurial Training Methods
 Entrepreneurial Motivations
• Need for Achievement (nAch)
• An independent motive of an individual to gain
excellence, beat competition, achieve personal
goals, and overcome problems.
• Need for Power (N-Pow)
• The motivation of an authority oriented individual.
• Need for Affiliation (N-Aff)
• The interpersonal need of an individual.
 Models for Entrepreneurial Development
• Psychological Model
• This model signifies that psychological factors are responsible for the
development of entrepreneurial behavior in individuals.
• Major contributors are McClelland and D. G. Winter.
• Sociological Model
• This model considers societal factors responsible for the development of
entrepreneurial behavior in individuals.
• Major contributor is Frank W. Young.
• Population-Ecology Model
• This model analyzes the determinants of entrepreneurship development.
• Major Contributors are Hannan and Freeman.
The process of Entrepreneurial Development
1
• Deciding to become an entrepreneur

2
• Identifying and evaluating the opportunity

3
• Developing a business plan

4
• Determining the required resources

5
• Converting the idea to an enterprise
• Identify, select, train, counsel and support potential
entrepreneurs for creating new enterprises
• Facilitate growth of existing entrepreneurs and groom
successors
• Contribute towards developing entrepreneurial culture
• Facilitate creation of a conducive environment for
emergence and growth of enterprises
• Intervene for developing enterprises- technology and
management (market, quality, finance, human resources)