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Who is an entrepreneur?

‡ Entrepreneur is the person responsible for setting up a business or an

enterprise.

‡ He takes the initiative, is innovative, and looks for high achievements.

‡ He is a change agent who puts up new projects that create wealth, open
up employment opportunities and leads to the growth of the sector.

‡ One who creates a new business in the face of risk and uncertainty for the
purpose of achieving profit and growth by identifying opportunities and
assembling the necessary resources to capitalize on them.
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efinitions
‡ The entrepreneur is an individual who introduces something new in the
economy- a new production method, a new product, a new source of raw
material, a new market etc.
- Joseph Schumpeter.

‡ An entrepreneur is the one who always searches for change, responds to it

and exploits it as an opportunity. Innovation is a specific tool by which he
exploits change as an opportunity, for a business or service.
- Peter rucker

±
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ãharacteristics/Attributes of
Entrepreneurs
‡ esire for responsibility

‡ Preference for moderate risk

‡ ãonfidence in their ability to succeed

‡ esire for immediate feedback

‡ High level of energy

‡ Future orientation

‡ Skilled at organizing

‡ Value achievement over money

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The µType E¶ Personality

ãommon Traits of Entrepreneurs:

‡ Aggressively pursues goals; pushes self and others

‡ Seeks autonomy, independence and freedom from boundaries
‡ Sends consistent messages; very focused
‡ Acts quickly, often without deliberating
‡ Keeps distance and maintains objectivity
‡ Pursues simple, practical solutions
‡ Willing to take risks; comfortable with uncertainty
‡ Exhibits clear opinions and values; has high expectations
‡ Impatient; ³just do it´ mentality
‡ Positive, upbeat, optimistic; communicates confidence
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What is entrepreneurship?

‡ It is the propensity of mind to take calculated risks with confidence to

achieve a pre determined business or industrial objective

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Entrepreneurship and developing

countries
‡ The potential of economic development remains dormant because of
undeveloped or underdeveloped human resources.

‡ In fact, man is much more crucial to development than any other

economic factors. The sufficiency of other resources alone, does not lead
us anywhere.

‡ Resources to be developed may exist in plenty but if development-linked

human minds are absent, hardly any economic development will take
place.

‡ While human skills include manufacturing, technical, supervisory,

managerial, administrative and entrepreneurial competence, it is the
entrepreneurial quality, which is a key ingredient.

‡ It often sets the limit to the degree of industrial development and the
speed with which it can be achieved in a particular country or region.
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Ëarriers to entrepreneurship

‡ Lack of a viable concept

‡ Lack of market knowledge
‡ Lack of technical skills
‡ Lack of seed capital/resources
‡ Lack of business know how
‡ Lack of sufficient infrastructure
‡ ãomplacency
‡ Restrictive effects of customs and traditions
‡ Legal constraints
‡ Monopoly
‡ Restrictions due to patents
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Intrapreneur
‡ He is the one who innovates and turns the idea into a profitable reality,
within the framework of an organization

‡ It is necessary that an organization has a conducive environment to

encourage intrapreneurs



     
    


‡ Encouragement to innovation and experimentation

‡ Freely available resources
‡ Measurable rewards
‡ Flexibility to alter plans
‡ Long time horizon to measure success
‡ Top management support
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Advantages of Entrepreneurship
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To an Individual

‡ Self Employment

‡ Employment for near & dear ones

‡ Prolonged career for next generations

‡ Freedom to use own ideas - Innovation and creativity

‡ Unlimited income / higher retained income

‡ Independence

‡ Satisfaction
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To the Nation

‡ Provides larger employment

‡ Results in wider distribution of wealth

‡ Mobilizes local resources, skills and savings

‡ Accelerates the pace of economic development

‡ Stimulates innovation & efficiency

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Factors favouring Entrepreneurship

‡ Growth of education- science, technology & management

‡ eveloped infrastructure facilities

‡ Financial assistance

‡ Training facilities

‡ Protective and promotional policies

‡ Globalization
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Entrepreneurship and Economic

evelopment
‡ Entrepreneurs combine resources, put their time and efforts and
produce goods or services

‡ What they contribute ± productivity, output, value addition,

income and employment

‡ Entrepreneurship is a ³Low ãost Strategy´. Entrepreneurs perform

the crucial role themselves

‡ The spirit of Entrepreneurship ± rive, achieving higher goals,

creativity, innovative attitude.

‡ A dynamic society emerges and the spirit spreads like a chain

reaction.
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Entrepreneurship and Management

Students
‡ Enterprises in protected economy can be mismanaged

‡ Enterprises in competitive environment are essentially to be

managed

‡ A Management Graduate is a person trained to manage an

enterprise. Naturally, he will deliver the best results

‡ A Management Graduate should not be just a Job Seeker. He can

and should take the role of Job Provider

‡ Experience confirms that more Management Graduates take

Entrepreneurial Role (after some experience) and their income is
higher than their colleagues who are in job
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ãomparison of Traditional Managers,

Entrepreneurs and Intrapreneurs

Traditional Entrepreneurs Intrapreneurs

Managers

Primary Perks and Self- ãreative

motives promotion employment, freedom and
satisfaction and recognition
money
Time Short-term ± Short-term ± Tend to follow
Orientation meeting quotas business the middle path
and budgets; establishment;
weekly, monthly, Long-term ±
quarterly and the growth of
annual planning business
horizon
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Traditional Entrepreneurs Intrapreneurs

Managers

Activity elegates and irect irect

supervises involvement involvement ,
not merely
delegation
Risk ãareful Moderate risk Moderate risk
taker taker
Monetary Risk Nil High Nil

Status ãoncerned about Not concerned Not concerned

status about status about traditional
status
Failure and Tries to avoid eals with Attempts to hide
mistakes mistakes mistakes and risky projects
failures from view until
ready
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Traditional Entrepreneurs Intrapreneurs

Managers

ecisions Like to take their Follows dream Able to get

own but unable to with decisions others to agree
disagree with to help achieve
superiors their dreams

Serves who? Others Self and Self, customers,

customers and sponsors

Family history Family members Entrepreneurial Entrepreneurial

worked for large small-business, small-business,
organizations professional professional

Relationship Hierarchy as basic Transactions and Transactions

with others relationship deal-making as within hierarchy
basic relationship