CHAPTER 7

ENTREPRENEURS
HIP

Introduction
Entrepreneur is derived from a
French word that refers to leaders of
military expeditions.
Joseph Schumpeter, considers an
entrepreneur as an innovator who
carries out new combinations to
initiate and accelerate the process of
economic development.

Introduction
He undertakes a venture, organizes it,
raises capital to finance it and assumes all
or a major portion of the risk.
He comes out with a P/S that fulfills a need.
He is the originator of a new business
venture or an improvement maker in the
existing enterprise.
Thus, an entrepreneur is a risk taker, a
resource assembler, an innovator and an
organization builder all combined into one.

Intrapreneur
Serves as the head of a semi autonomous
product division.
Starts a new business venture within the
existing company.
Distinction 1. Entrepreneur an
independent
businessman,
while
an
intrapreneur works within a given company.
2. Entrep. raises the capital himself and
takes full risk of the venture, while an intrap.
may not be required to raise the capital or
bear risk all by himself.

Concept of Entrepreneurship
Entrepreneurship
is
the
process
of
identifying opportunities in the market
place, marshalling the resources required to
pursue these opportunities and investing
the resources to exploit the opportunities of
long term gain.
It involves creating wealth by bringing
together resources in new ways to start an
enterprise that benefits the customers and
the founder both.

Nature of Entrepreneurship
1. Economic Activity creation of value or
wealth.
2. Creative Activity an entrepreneur
recognizes the need for change and
initiates it. He does things in new & better
ways.
3. Dynamic Process an entrepreneur
thrives on the changing environment.
4. Purposeful Activity
5. Risk Element

Nature of Entrepreneurship
6. Organization Building
assembles & co- ordinates other
factors of production.
7. Gap Filling Function

Factors Influencing
Entrepreneurship
1. Personal Characteristics high n(ach),
highly persistent, strong internal locus of
control.
2.
Life
Path
Circumstances

unsatisfactory job experience, ideas not

given any value, disruption in a family life.
3. Environmental Factors adequate
finance, technical skills, availability of
cheap land, accessibility to new markets,
availability of support services, etc.

Qualities of a Successful
Entrepreneur
1. Capacity to assume risk
2. Technical knowledge & willingness
to change
3. Ability to marshall resources
4. Ability of organization and
administration

Entrepreneur Vs Manager
Basis for
Distinction

Entrepreneur

Manager

Innovation

Introduces new ideas

Runs business on
established lines

Venture Creation

Sets up a new venture

Runs an existing venture

Risk Bearing

Faces economic
uncertainties

No risk pay certain

Reward

Earns profits which

fluctuates from time to time

Reward is the salary,

which is fixed and regular

Status

His own boss and thus,

enjoys independent status

Manager is an employee
and dependent on the
owner

Education

Not so important

Formal education very

important

Continuity

Discontinuous phenomena

Ongoing coordination of

Types of Entrepreneur
1 Innovative Entrepreneur developed countries
2. Imitating Entrepreneur - developing countries
which cant afford expensive research.
3. Fabian Entrepreneur shy and lazy
V cautious & skeptical in adopting &
implementing change
Lack the will to adopt new methods
Imitate change only when it is do or die
situation.

Types of Entrepreneur
4. Drone Entrepreneur resist change
and continue to use past methods.
Struggle to exist and not to grow
Too conservative and inert

THANK YOU!