Unit – 01
The students will be able to understand and apply the following concepts:
Entrepreneur Types of Entrepreneurs Difference between Entrepreneur and Intra-preneur Entrepreneurship in Economic Growth Factors Affecting Entrepreneurial Growth.
Unit – 1.1
Enterprise An unit of economic organization or activity;
Especially a business organization
Agriculture is the main economic enterprise among rural Indian people.
A systematic purposeful activity
Entrepreneurship It is the act of being an entrepreneur. Entrepreneur “One who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods”. 4
This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Startup Company) Recently, it include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as intrapreneurship and may include corporate venturing, when large entities spin-off organizations. 5
Concept of Entrepreneurship
2. 3. 4. 5.
It has assumed super importance for accelerating economic growth both in developed and developing countries. It promotes capital formation and creates wealth in country. It is hope and dreams of millions of individuals around the world. It reduces unemployment and poverty and its a pathway to prosper. It is the process of searching out opportunities in the market place and arranging resources required to exploit these opportunities for long term gains. 6
Concept of Entrepreneurship [contd.]
6. 7. 8.
It is the process of assuming, planning, organizing opportunities. Thus it is a risky business enterprise. It may be distinguished as an ability to take risk independently to make utmost earnings in the market. It is a creative and innovative skill and adapting response to environment of what is real.
Characteristics of Entrepreneurs
4. 5. 6. 7. 8. 9. 10. 11.
Creativity Innovation Dynamism Leadership Team Building Achievement Motivation Problem Solving Goal Orientation Risk Taking Decision Making Commitment 9
Core Competencies of Entrepreneurs
4. 5. 6. 7. 8. 9. 10. 11.
Initiate Perceiving opportunities Persistence Information gathering Concern for quality work Commitment to contractual obligation Efficiency oriented Planning Problem solving Self confidence Expertise 10
Core Competencies of Entrepreneurs [contd.]
16. 17. 18. 19. 20. 21. 22.
Self critical Persuasion Use of influence strategies Assertiveness Monitoring Credibility Concern for employee welfare Impersonal relationship Expansion of capital base Building product image. 11
Myths about Entrepreneurship
4. 5. 6. 7. 8.
Entrepreneurs are born not made. Entrepreneurs are academic & social misfits. Entrepreneurs fit an ideal profile. All you need is money to be an entrepreneur. All you need is luck to be an entrepreneur. A great idea is the only ingredient in a recipe for business. My best friend will be a great business partner. Having no boss is great fun. I can make lot of money. I will become definitely successful. 12 Life will be much simpler if I work for myself.
Classification of Entrepreneurship
Unit – 1.2
Types of Entrepreneurship
Based on Functional Characteristics:
1. 2. 3. 4.
Innovative entrepreneur Imitative / adoptive entrepreneur Fabian entrepreneur Drone entrepreneur
Based on the Developmental Angle:
2. 3. 4. 5.
Prime mover Manager Minor innovator Satellite Local trading
Types of Entrepreneurship...
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