Entrepreneur

1. Entrepreneur

2. Introduction of Entrepreneur • An entrepreneur is one who always searches for change, responds to it and exploits it as an opportunity.(Peter Drucker) • An entrepreneur in any given economy is an individual who introduces something new in the economy.(Joseph Schumpeter) • A vision-driven individual who assumes significant personal and financial risk to start or expand a business.

3. Entrepreneurship

4. Introduction of Entrepreneurship • The pursuit of opportunity through innovation, creativity and hard work without regard for the resources currently controlled. • Entrepreneurship is the process of creating something new and assuming the accompanying risks and rewards. • (Robert Hisrich)

5. Functions of an Entrepreneur

6. Classified into three categories. • Entrepreneur as an Innovator. • Entrepreneur as a Risk-taker. • Entrepreneur as an Organizer.

7. Entrepreneur as an Innovator. • Introduce a new product in the market. It could be a product totally unfamiliar to the customer or it could be a new variety of an old product. • Introduce a new method of production. • Opening of a new market into which the product has not previous entered. • The discovery of a new source of supply of raw materials. • New form of organization.

8. Entrepreneur as a Risk-taker. • Assume all the possible risk of business. • Goods and selling prices. • An entrepreneur has to bear uncertainty which can be neither be insured against nor be calculated. • An entrepreneur tries to reduce risk by combining experience, foresight and professional help. • An entrepreneur tries to reduce uncertainties by his initiative, skill and good judgment.

9. Entrepreneur as an Organizer. • An entrepreneur has to raise sufficient capital for the smooth running of the organization. • He has to plan, delegate and execute all facets of business. • He must have moral qualities. • He must manage and distribute his profits wisely.

10. Characteristics of an Entrepreneur

11. E = Effective Communicator. • N = Negotiating skills. • T = Total Commitment/Time management. • R = Risk-taking ability. • E = Emotional ability. • P = Problem solving • R = Relations-Human & Public. • E = Energetic. • N = Networking ability. • E = Excellence in economic • U = Understand how to administer and organize. • R = Real Innovator.

12. Types of Entrepreneurs

13. Types of Entrepreneurs • According to the stages of economic development. • According to the type of business. • According to the use of technology • According to the area • According to the gender and age.

14. According to the stages of economic development • Innovative entrepreneur • Imitative entrepreneur • Fabian entrepreneur • Drone entrepreneur

15. 1. Innovative Entrepreneur: • In the early phases of economic development, entrepreneurs have initiative to start new ventures and find innovative ways to start an enterprise. Thus, innovative entrepreneurs are those who introduces new products, new method of production techniques, or discovers a new market or a new service or reorganizes the enterprise. It is the innovative entrepreneurs who built the modern capitalism. They are commonly found in developed countries. They are aggressive in nature who exhibit cleverness in putting attractive possibilities into practice.

16. 2. Imitative Entrepreneur: • There is a second group of entrepreneurs generally referred as imitative entrepreneurs. They usually copy or adopt suitable innovations made by innovative entrepreneurs. They are adoptive and more flexible. They are organisers of factors of production rather than creator. The imitative entrepreneurs are also revolutionary and important. They' contribute to the development of underdeveloped economies.

17. 3. Fabian Entrepreneurs: The third type of entrepreneur is Fabian Entrepreneurs. Such type of entrepreneurs are very shy and lazy by nature. They are very cautious people. They do not venture to take risks. They are rigid and fundamental in their approach. Usually, they are second generation entrepreneurs in a family business enterprise. They follow the footsteps of their successors. They imitate only when they are very clear that failure to do so would result in a loss of the relative position in the enterprise.

18. 4. Drone Entrepreneurs: • The fourth type of entrepreneur is Drone entrepreneurs who refuse to copy or use opportunities that come on their way. They are conventional in their approach. They are not ready to make changes in their existing production methods even if they suffer losses. They resist changes. They may be termed as laggards.

19. According to the the type of business • Business entrepreneur • Trading entrepreneur • Industrial entrepreneur • Corporate entrepreneur • Agricultural entrepreneur • Retail entrepreneur • Service entrepreneur

20. According to the use of technology • Technical entrepreneur • Non-Technical entrepreneur • Professional entrepreneur • High-Tech entrepreneur • Low-Tech entrepreneur

21. According to the area • Urban entrepreneur • Rural entrepreneur

22. According to the gender and age • Men entrepreneur • Women entrepreneur

23. Entrepreneur v/s Intrapreneur

24. Entrepreneur v/s Intrapreneur • An entrepreneur is an independent business man. • He bears full risk of the business he develops and operates. • He him self raises the necessary capital from various source and guarantees its return to the suppliers • An intrapreneur is an semi-independent business man. • He does not fully bear the risk of the business he operates. • He nighters raises the capital himself nor guarantees any return to the suppliers.

25. He operates from outside the organization. • An entrepreneur might find it difficult to totally withdraw from his business. • He operates from within the organization. • An Intrapreneur finds it relatively easier to totally withdraw from his business.

26. Barriers To Entrepreneurship

27. The barriers to entrepreneurship can be classified as : • Environmental Barriers. • Financial Barriers. • Personal Barriers. • Societal Barriers.

28. Environmental Barriers. • Raw Materials : • Non availability of raw materials for production • Labour : • Human resource is the most important resources in any organization. • Lack of availability can affect entrepreneurs. • Machinery : • Up gradation and maintenance. • Land, Building and Infrastructure.

29. Financial Barriers • Finance is the life-blood of any organization. • Finance is the strength to scale-up their operations. • government advice services or financial schemes or paying rent without a secure income.

30. Personal Barriers. • Lack of self-confidence. • Lack of motivation. • Lack of Patience. • Innovate.

31. Social Barriers • Religious and conservative attitudes of the society can inhibit entrepreneurs. • Added to this the communistic feelings in certain state of India.

32. Development of Entrepreneurship

33. Stages in entrepreneurial Process Stage 1: Identification and evaluation of the business opportunity. Stage 2 : Development of the business plan. Stage 3 : Determination of the what resources required. Stage 4 : Creation and actual management of the enterprise.

34. Stage 1: Identification and evaluation of the business opportunity. • An entrepreneur has to be alert to the opportunities and possibilities that arise in the market from time to time. • Opportunities knock the door of every entrepreneur only a few seize them and convert them. • Opportunities have to be not only identified but also analyzed with respect to the following. • Real and perceived values of opportunity. • Risk and return of opportunity.

35. Certain questions that are generally asked during the assessment of opportunities are ? • What market need it fulfills ? • Why does this market need exists ? • What is the size of the local and international market of this market need ? • What patents might be available to fulfill this need ?

36. Stage 2 : Development of the business plan. • A business plan is nothing but a description of the future direction of the business. • A business plan describes the business as well as the industry in which the business exists. • It formulates all the plans with respect to marketing, finance, production and expected results. • A good business has to be developed.

37. Stage 3 : Determination of the what resources required. • An entrepreneur should have a good idea of the various resources required with respect to quality, price and sources. This will considerably improve his operational capability.

38. Stage 4 : Creation and actual management of the enterprise. • An entrepreneur has to be aware of the legal and practical hurdles that he has to face in the process of physically creating his business. • He also has to anticipate potential problems and possible solutions. • He has to spell out the key variables for the successes.

39. Manager vs Entrepreneur

40. Manager vs Entrepreneur

41. Manager vs Entrepreneur

42. Role of Enterpreneurs in Economic Development

43. Role of Entrepreneurs in Economic Development • Entrepreneurs help create business organizations by mobilizing the savings of public. • They provide large-scale employment which reduces the unemployment problem in the country. • They promote industrialization in rural areas and reduce regional imbalances. • They cause equitable distribution of wealth and income in many cases. • They help reduce over-dependences on agriculture by rural people. • They help reduce concentration of wealth in few hands.

44. Role of Entrepreneurs in Economic Development • They encourage learning and usage of skills which might otherwise remain unutilized. • They increase Forex reserves of the country by exporting their goods and services. • They can initiate and bring vast changes in the structure of the business and society. • Successful entrepreneurs become icons and can inspire a whole new breed of entrepreneurs.