 The word entrepreneurship originates from

the French word entreprendre, which means

“to undertake”.
 Entrepreneurship is the key to innovation,
productivity and effective competition.
 When a person realizes his ability or capacity
and makes its practical use and establishes
new business unit this activity is known as
entrepreneurship.
Concept of Entrepreneurship :
Entrepreneurship is an innovative function. It is a
leadership rather than an ownership. The
process of innovation may be in the form of
 Introduction of a New Product
 Use of a New Method of production
 Opening of a New Market
The conquest of New Source of supplying
Raw Materials

-
Joseph A. Schumpeter.
 Traditional Modern
Concept
Concept
The ability to establish
Ability and aptitude to
new enterprise, and
bear various types of
carrying out various new
business related risk and
improvements in the
facing of uncertainties
enterprise.
 Risk refers to the variability of outcomes (or
returns).
 Entrepreneurs are “risk-taker”- people who
don’t fear anything in business.
 Entrepreneurship involve taking of risks and
making the necessary investments under
conditions of uncertainty.
 Entrepreneurship is ability to connect and
coordinate the productive resources to
organize a venture and enterprise.
 It is bringing together the factors of
production and to organize them.
 Entrepreneur makes decisions about resource
allocations.
 Entrepreneurship is the process of bringing
together creative and innovative ideas and
actions with the management & leadership
skills to mobilize the appropriate people,
money and operating resources to create
wealth in the process.
 Entrepreneurs can translate their ideas into
action with management and leadership
skills.
 Innovation is the specific function of
entrepreneurship.
 It is the means by which the entrepreneur
either create new wealth- producing
resources or endows existing resources with
enhanced potential for creating wealth.
 Joseph Schumpeter revived the concept of
entrepreneurship as an innovative function.
 The person who are motivated with the need
for high achievement have a high level of
entrepreneurial activities.
 They have a desire to be successful in
competitive situations.
 Entrepreneurship is actively searching for
opportunities to do new things or to do
existing things in new ways for a profitable
business.
 Potential entrepreneurs are always looking for
unique opportunities to fill needs and wants.
 Entrepreneurs are economic agents who
transform demand into supply and they
transform resources into useful goods &
services, that lead to creation of wealth and
industrial growth.
 This is a modern concept of
entrepreneurship.
 The entrepreneur becomes the change agent
who transforms the resources into useful
goods and services, often creating the
circumstances that lead to industrial growth.
 This is also a modern concept.
 Through entrepreneurship, new products,
services, transactions, approaches, resources,
technologies and market are created that
contribute some value to a community or
marketplace.
 Value can be created- When resources are
transformed into output such as products &
services.
 Entrepreneurship education is a fast growing
area in Colleges & Universities.
 Most universities in the countries did
research on entrepreneurship, followed by
training courses.
 Due to fully developed subject, many
entrepreneurial schools have been opened.
 The definition of entrepreneurship may be
classified i n -
 Establishment of new enterprises based
 Function based
 Combination based
 Decision making based
 Innovation based
 According to Prof. Musselman & Jackson,
“entrepreneurship is the inventing and risking of
time, money and effort to start a business.

 According to Prof. Udai Pareek And Manohar

Nadkarni, “Entrepreneurship refers to the general
trend of setting up new enterprises in a society.”

 These definitions not specified, which functions

and activities are to be performed for
establishing new enterprises for starting new
business and making them successful.
 According to Joseph A. Schumpeter,
“Entrepreneurship is an innovative function, it
is an leadership rather than an ownership.”

 It reveals various opportunities and abilities

like forecasting of economic opportunities
and ability to organize various sources and
techniques of production.
 Many scholars elaborate entrepreneurship as
the combination of functions and activities,
and organization.
 According to H. W. Johnson,
“Entrepreneurship is a composite of three
basic elements- inventions, innovation and
adaptions.
 According to Lamb, “ Entrepreneurship is that
form of social decision making performed by
economic innovations.”
 This definition focus on social responsibilities
and role of business.
 This definition does not lay emphasis on
doing innovations directly in the society.
 According to Prof. Rao and Mehta,
“Entrepreneurship can be described as creative and
innovative response to the environment.”
 Entrepreneurship is an activity of linking the
business with the society and environment.
 Components or Elements of Entrepreneurship

Entrepreneur
Pursuit of Opportunities
Innovation
Organisation Creation
Creating Values
Profit or Non-for- Profit
Growth
Uniqueness
Process
Characteristics of Entrepreneurship :
o Innovation
o Risk-Bearing Capacity
oCreative Decision
oCreating & Managing Resources
o Managerial Skills & Leadership
o Gap Filling Function
o Business Oriented Tendency
o Economic Activity
o Producing Results
oLife Style
 Concept of an Entrepreneur :
It refers to a Person
It refers to a Creator
It refers to a Organizer
It refers to a Decision Maker
It refers to a Initiator
It refers to a Leader
It refers to a Motivator
It refers to a Risk Taker
 Entrepreneurship
Wage Employment •
• Own Boss
Work for Others •
• Make own plans
Follow Instructions •
• Creative activity
Routine Job •
• Can be negative
Earning is fixed,
sometimes,
never negative •
• generally
Does not create
surplus
wealth • Creates Wealth,
• Can choose
contributes to
from-
GDP
• Government
• Can choose
service
from-
• Public Sector
• Industry
• Private Sector
• Trade or
• Service
Enterprise
 Who is
Entrepreneur
• An ?
entrepreneur is an individualwho starts a
business venture and is responsible for its
development.
• An individual who bears the risk of operating a
business in the face of uncertainty.
• One who organizes, manage and assumes the risk
of a business or enterprise.
 Mental Ability – Entrepreneur must have creative thinking and
must be able to analyze problems and situations. He should be
able to anticipate changes.

 Business Secrecy – He should guard his business secrets from his

competitors.

 Clear Objectives – He must have clear objectives as to the exact

nature of business or the nature of goods to be produced.

 Human Relations – He must maintain good relation with his

customers, employees, etc. To maintain good relationship he
should have emotional stability, personal relations, tactfulness
and consideration.

 Communication Ability – He should have good communication

skills means both the sender and the receiver should understand
each others message.

 Technical Knowledge – He should have sufficient technical

knowledge.
Importance of Entrepreneurship:

 Reduces Poverty Level

 Increases Employment

 Fulfills the Demand of people

 Helps to develop Economic Condition of a country

o Lack of visible concept
o Lack of market knowledge
o Lack of technical skill
o Lack of seed capital
o Lack of business knowledge
o Lack of motivation
o Time pressure & distractions
o Legal constraints &
regulations
o Monopoly & protectionism
ENTREPRENEU ENTREPRENEURSHIP
R

• PERSON • PROCES
S

• VISUALIZER • VISION

• CREATOR • CREATION

• ORGANIZER • ORGANISATION

• INNOVATOR • INNOVATION

• PLANNIN
• PLANNER
G

• LEADERSHI
• LEADER
P
TYPES of
ENTREPRENEURSHI
P
 • Innovating, Imitative
On the basis of
• Fabian, Drone
Nature

• Sole, workpower builder,

On the basis of product
innovating, Format, Unused
Activity resource user, take Capital
over, accumulating

• Private, Government, Joint

On the basis of sector, Co- operative
Ownership
 • Small Scale
On the basis of
size • Large Scale

• Exploitative
On social Basis • Ideal

• Sole, Group
On the basis of
• Copreneurs, Institutional
number
 Other-
Social
Women
Agripreneurship
Technopreneurship
Netpreneurship
Portfoliopreneurship
Intrapreneurship
 Pivot of Economic Development
 Basis of Business
 Organizer of Society’s Productive Resources
 Contribution in Production of New Products
 Development of New Production Techniques
 Helpful in Capital Formation
 Development of New Market
 Establishment of New Industrial Enterprises
 Contribution in Development & Expansion
of
Existing Enterprises
 Help in bringing changes in Social Framework
 Contribution in the formation of Industrial Climate
 Contribution to generate
Employment Opportunities
 Contribution to raise the Standard of Living
 Help in removing Regional Disparities
 Encouragement to Investigation & Research
 TIME
TO
THINK
HOW MANY ACTIVITY

DIFFERENT
BUSINESS
OWNERS DO YOU KNOW?

Let’s think..
Make a list of the names of all the
different local businesses you know
that are run by people from
different Nationalities…
EMPOWERMENT THROUGH
ENTERPRISE |