Module-I Introduction Class: TE IT

● Concept, Meaning and definition of Entrepreneur and Entrepreneurship.

● Evolution of Entrepreneurship,
● Role of Entrepreneurship in economic Development;
● Managerial vs entrepreneurial approach;
● Classification and types of Entrepreneurs.
● Characteristics and qualities of successful Entrepreneurs;
● Women Entrepreneurs;
● Corporate & Social entrepreneurship.

Concept, Meaning and definition of Entrepreneur and Entrepreneurship.

Concept of Entrepreneurship
 Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise, along with
any of its uncertainties in order to make a profit.
 The most prominent example of entrepreneurship is the starting of new businesses.
 In economics, entrepreneurship connected with land, labour, natural resources and capital can generate a
profit.
 The entrepreneurial vision is defined by discovery and risk-taking and is an indispensable part of a nation’s
capacity to succeed in an ever-changing and more competitive global marketplace.

Meaning of Entrepreneur
● The entrepreneur is defined as someone who has the ability and desire to establish, administer and succeed in
a startup venture along with risk entitled to it, to make profits.
● The best example of entrepreneurship is the starting of a new business venture. The entrepreneurs are often
known as a source of new ideas or innovators, and bring new ideas in the market by replacing old with a new
invention.
● It can be classified into small or home business to multinational companies.
● In economics, the profits that an entrepreneur makes is with a combination of land, natural resources, labour
and capital.
● In a nutshell, anyone who has the will and determination to start a new company and deals with all the risks
that go with it can become an Entrepreneur.

An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the
rewards. The process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen
as an innovator, a source of new ideas, goods, services, and business/or procedures.

KEY TAKEAWAYS
● A person who undertakes the risk of starting a new business venture is called an entrepreneur.
● An entrepreneur creates a firm to realize their idea, known as entrepreneurship, which aggregates capital and
labor in order to produce goods or services for profit.
● Entrepreneurship is highly risky but also can be highly rewarding, as it serves to generate economic wealth,
growth, and innovation.
● Ensuring funding is key for entrepreneurs: Financing resources include SBA loans and crowd funding.
● The way entrepreneurs file and pay taxes will depend on how the business is set up in terms of structure.
● But as a basic entrepreneurship definition, that one is a bit limiting.
● The more modern entrepreneurship definition is also about transforming the world by solving big problems.
● Like bringing about social change or creating an innovative product that challenges the status quo of how we
live our lives on a daily basis.
Entrepreneurship is the act of creating a business or businesses while building and scaling it to generate a profit.
● But as a basic entrepreneurship definition, that one is a bit limiting.
● The more modern entrepreneurship definition is also about transforming the world by solving big problems.
● Like bringing about social change or creating an innovative product that challenges the status quo of how we live our
lives on a daily basis.

What Is the Meaning of Entrepreneurship?

● The meaning of entrepreneurship involves an entrepreneur who takes action to make a change in the world.
● Whether startup entrepreneurs solve a problem that many struggle with each day, bring people together in a
way no one has before, or build something revolutionary that advances society, they all have one thing in common:
action.
● It’s not some idea that’s stuck in your head. Entrepreneurs take the idea and execute it. Entrepreneurship is
about execution of ideas.

The Personal Keys to Entrepreneurship

 Ideas
 Collaboration
 Development
 Support, Financing
 Goal

Evolution of Entrepreneurship
In the Earliest period, definition of entrepreneurship began as early as the Marco Polo who comes to the Middle
East for trade. Marco Polo has signed an agreement with the capitalists to sell their products. In the contract
merchant adventurer took a loan at 22.5% rate including insurance. Capitalist was the passive risk bearer and
merchant adventurer took the active role in trading, bearing all physical and emotional risks. When the merchant
adventurer successfully sold the goods and completed the trip, the profits were divided with the capitalist taking
most of them up to 75%, while the merchant adventurer settled for the remaining 25%.
In middle ages, Entrepreneur is described as someone who is involved in the care and control of a large production
projects. It is possible to control the project using the resources provided by the government. In this case, the
entrepreneur does not bear any risk. Entrepreneurs in this age, is a have control and authority of construction
works such as public buildings and churches. A typical entrepreneur in the middle age was the priest.
In 17th century, the evolution of entrepreneurship can be related with the relationship between risk and
entrepreneurs. Entrepreneurship is the person who signed the contract agreement with the government to provide
a service or supply products that have been determined. The contract price is fixed. Then, the entrepreneurs are
fully responsible for the gains and losses of the business. John law, a Frenchman was one of the entrepreneurs in
that period. The founder of the royal bank of France and the Mississippi Company, which had an exclusive
franchise to trade between France and the new world. Monopoly on French trade eventually led to collapse of the
company. Richard Cantillion, an economist defines entrepreneurs earlier. In his view, the entrepreneur is risk
insurers. Merchants, farmers, craftsmen, and so is an entrepreneurs. They buy things at a certain price and sell it
at a price that is uncertain, with the risks
In the 18th century, the person with capital was differentiated from the one who needed capital. The entrepreneur
was distinguished from the capital provider. One reason for this differentiation was the industrialization occurring
throughout the world. Eli Whitney was an American inventor best known for inventing the cotton gin. This was
one of the key inventions of the industrial Revolution. Thomas Edison, the inventor of many inventions. He was
developing new technologies and was unable to finance his inventions himself. Edison was a capital user or an
entrepreneur, not a provider or a venture capitalist.
In 19th and 20th century, Entrepreneurs are not always associated with the management. According to Merriam-
Webster's online dictionary, an entrepreneur is one who organizes, manages, and assumes the risk of a business
or an enterprise. The entrepreneur organizes and manages an enterprise for personal gain. The materials consumed
in the business, for the use of the land, for the services he employs, and for the capital he requires. Andrew
Carnegie is one of the best examples of this definition. Carnegie, who descended from a poor Scottish family,
made the American Steel Industry one of the wonders of the industrial world.
In the middle of the 20th Century, the function of the entrepreneurs is to recreate or revolutionize the pattern of
production by introducing an invention. Innovation, the act of introducing some new ideas, is one of the most
difficult tasks for the entrepreneur. For example, Edward Harriman, who reorganized the railroad in the United
States and John Morgan, who developed his large banking house by reorganizing and financing the nation’s
industries. Besides, the Egyptian who designed and built great pyramids out of stone blocks weighing many tons
each, to laser beams, supersonic planes and space stations.
In 21st century, Entrepreneurs are known as a hero for Free Enterprise market. Entrepreneur of the century created
many products and services and is willing to face a lot of risks in the business. According to Kuratko & Hodgetts,
most people say entrepreneurs are pioneers in creating new businesses. In the year 2005 Hisrich, Peter and
Shepherd regarded entrepreneur as an organizer who controls, systematize, purchases raw materials, arranges
infrastructure, throw in his own inventiveness, expertise, plans and administers the venture.

Role of Entrepreneurship in economic Development

1. Entrepreneurship promotes capital formation by mobilising the idle saving of the public.
2. It provides immediate large-scale employment. Thus, it helps reduce the unemployment problem in the country,
i.e., the root of all socio-economic problems.
3. It promotes balanced regional development. 4. It helps reduce the concentration of economic power. 5. It
stimulates the equitable redistribution of wealth, income and even political power in the interest of the country.
6. It encourages effective resource mobilisation of capital and skill which might otherwise remain unutilized and
idle.
7. It also induces backward and forward linkages which stimulate the process of economic development in the
country.
8. Last but no means the least, it also promotes country’s export trade i.e., an important ingredient to economic
development. Thus, it is clear that entrepreneurship serves as a catalyst of economic development.
On the whole, the role of entrepreneurship in economic development of a country can best be put as “an economy
is the effect for which entrepreneurship is the cause”.

Promote capital formation

● Entrepreneurs promote capital formation by mobilising the idle savings of public.
● They employ their own as well as borrowed resources for setting up their enterprises.
● Such type of entrepreneurial activities lead to value addition and creation of wealth, which is very essential for
the industrial and economic development of the country.

Creates large Scale Employment

● Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic problem of
underdeveloped nations.
● With the setting up. of more and more units by entrepreneurs, both on small and large-scale numerous job
opportunities are created for others.
● As time passes, these enterprises grow, providing direct and indirect employment opportunities to many more.
● In this way, entrepreneurs play an effective role in reducing the problem of unemployment in the country which
in turn clears the path towards economic development of the nation.
Promotes Balanced Regional Development
● Entrepreneurs help to remove regional disparities through setting up of industries in less developed and
backward areas.
● The growth of industries and business in these areas lead to a large number of public benefits like road transport,
health, education, entertainment, etc.
● Setting up of more industries lead to more development of backward regions and thereby promotes balanced
regional development.

Reduce Concentration of Economic Power

● Economic power is the natural outcome of industrial and business activity.
● Industrial development normally lead to concentration of economic power in the hands of a few individuals
which results in the growth of monopolies.
● In order to redress this problem a large number of entrepreneurs need to be developed, which will help reduce
the concentration of economic power amongst the population.

Wealth creation and distribution

● It stimulates equitable redistribution of wealth and income in the interest of the country to more people and
geographic areas, thus giving benefit to larger sections of the society.
● Entrepreneurial activities also generate more activities and give a multiplier effect in the economy.

Social Advantage
● Entrepreneurs help in the development of the society by providing employment to people and paves for
independent living They encourage democracy and self-governance.
● They are adept in distributing national income in more efficient and equitable manner among the various
participants of the society.

Improvement in Standard of Living

● Increase in the standard of living of the people is a characteristic feature of economic development of the
country.
● Entrepreneurs play a key role in increasing the standard of living of the people by adopting latest innovations
in the production of wide variety of goods and services in large scale that too at a lower cost.
● This enables the people to avail better quality goods at lower prices which results in the improvement of their
standard of living.

Increase per capita income

 Entrepreneurs help to increase the per capita income of the country in various ways and facilitate
development of backward areas and weaker sections of the society

Growth of capital market

 Entrepreneurs raises money for running their business through shares and debentures. Trading of shares
and debentures by the public with the help of financial services sector leads to capital market growth

Growth of infrastructure
 The infrastructure development of any country determines the economic development of a country,
Entrepreneurs by establishing their enterprises in rural and backward areas influence the government to
develop the infrastructure of those areas.
Development of Trader
 Entrepreneurs play an important role in the promotion of domestic trade and foreign trade. They avail
assistance from various financial institutions in the form of cash credit, trade credit, overdraft, short term
loans, secured loans and unsecured loans and lead to the development of the trade in the country.

Economic Integration
Entrepreneur reduces the concentration of power in a few hands by creating employment opportunities and
through equitable distribution of income. Entrepreneurs promote economic integration in the country by adopting
certain economic policies and laws framed by the government. They help in removing the disparity between the
rich and the poor by adopting the rules and regulation framed by the government for the effective functioning of
business in the country.

Managerial vs entrepreneurial approach

Classification and types of Entrepreneurs
Characteristics and qualities of successful Entrepreneurs
10 CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS
1. Curiosity
Successful entrepreneurs have a distinct personality trait that sets them apart from other organizational leaders: a
sense of curiosity.
An entrepreneur's ability to remain curious allows them to continuously seek new opportunities. Rather than
settling for what they think they know, entrepreneurs ask challenging questions and explore different avenues.

2. Structured Experimentation
Along with curiosity, entrepreneurs require an understanding of structured experimentation. With each new
opportunity, an entrepreneur must run tests to determine if it’s worthwhile to pursue.

3. Adaptability
The nature of business is ever-changing. Entrepreneurship is an iterative process, and new challenges and
opportunities present themselves at every turn. It’s nearly impossible to be prepared for every scenario, but
successful business leaders must be adaptable. This is especially true for entrepreneurs who need to evaluate
situations and remain flexible to ensure their business keeps moving forward, no matter what unexpected changes
occur.
4. Decisiveness
To be successful, an entrepreneur has to make difficult decisions and stand by them. As a leader, they’re
responsible for guiding the trajectory of their business, including every aspect from funding and strategy to
resource allocation.

5. Team Building
A great entrepreneur is aware of their strengths and weaknesses. Rather than letting shortcomings hold them back,
they build well-rounded teams that complement their abilities.

6. Risk Tolerance
Entrepreneurship is often associated with risk. While it’s true that launching a venture requires an entrepreneur
to take risks, they also need to take steps to minimize it.

7. Comfortable with Failure

In addition to managing risk and making calculated decisions, entrepreneurship requires a certain level of comfort
with failure.
8. Persistence
While many successful entrepreneurs are comfortable with the possibility of failing, it doesn’t mean they give up
easily. Rather, they see failure as an opportunity to learn and grow.

9. Innovation
Many ascribe to the idea that innovation goes hand-in-hand with entrepreneurship. This notion is often true. Some
of the most successful startups have taken existing products or services and drastically improved them to meet
the changing needs of the market.

10. Long-Term Focus

Finally, most people think of entrepreneurship as the process of starting a business. While the early stages of
launching a venture are critical to its success, the process doesn’t end once the business is operational.
Entrepreneurship is a long-term endeavor, and entrepreneurs must focus on the process from beginning to end to
ensure long-term success.

Women Entrepreneurs
Quality of Women Entrepreneurs: Categories of women entrepreneurs
Corporate Entrepreneurship
 Entrepreneurship inside of established organizations is called Corporate Entrepreneurship or
Intrapreneurship.
 All companies want organic growth, but few organizations have a process in place to support and sustain
growth over time.
 An innovation process alone is not enough.
 Organizations need to build a framework to support innovation and new business growth.
Corporate Entrepreneurship (Intrapreneurship) is a process used to develop new businesses, products, services or
processes inside of an existing organization to create value and generate new revenue growth through
entrepreneurial thought and action.

Systems View of Corporate Entrepreneurship:

Corporate entrepreneurship sets the context for innovation and growth. It provides a systems view of the
resources, processes and environment that are needed to support, motivate and engage the organization in
entrepreneurial thinking and action.

Benefits:
● Organizations with strong entrepreneurial orientations statistically perform better. They achieve higher levels
of productivity, innovation, growth, employee engagement and financial returns.
● Although business growth is the overall end game, corporate entrepreneurship is difficult to achieve. It
challenges traditional organizational practices.
● Many of the things needed to support the core business are just the opposite of what you need to do to build a
new business.

Goal:
● The goal of corporate entrepreneurship is to build capabilities that enable organizations to accelerate new
business growth.

Implementation:
There is no perfect way to implement corporate entrepreneurship. There are however three components that enable
corporate entrepreneurship; people, process and place.
● People – leaders that possess a core set of action oriented competencies and behaviors
● Process – systems and processes that support entrepreneurial thinking and action
● Place – an environment conducive to entrepreneurship, learning and growth

Social entrepreneurship
Social entrepreneurship is a process that provides viable solutions to problems with the purpose to improve access
to social services, health education and local labor exploitation, aims to reduce all forms of discrimination by
providing jobs to people in need (Borza et al, 2009)
Social entrepreneurship is a process that provides viable solutions to problems with the purpose to improve access
to social services, health education and local labor exploitation, aims to reduce all forms of discriminationby
providingjobs to people in need– (Borza et al, 2009)

Social entrepreneurs focus on systemic social change that disregards institutional and organizational norms and
boundaries. The social entrepreneur seeks to achieve social goals by developing new combinations of
goods,servicesand methods,incorporating a high degree ofinnovation –(Hatten, 2009).

● Social entrepreneurship is the activity of establishing new business venturesto achieve social change.
● The business utilises creativity and innovation to bring social, financial, service,educational or other community
benefits.
● Social enterprisesare not charities or welfare agencies.
● They are private businesses established by entrepreneurs with an emphasis on human values rather than just
profit.
● These businesses focus on working with and enhancing the social capital within the community by encouraging
participation, inclusion and utilising a bottom-upapproach to achieve social change

Characteristics of Social Entrepreneurship

Social Mission:
The sole objective of social entrepreneurship is to provide a solution to the existing social issue or problem such
as poverty, illiteracy, unemployment, women safety, health care, sanitation, environmental destruction,
corruption, etc., for which the venture has beenformed.

Innovative and sustainable solutions:

Social entrepreneurs believe that the main cause of the existence of the social problems is that the existing
solutions are not at all effective and long-lasting, that can completely eradicate them.
So, their approach to resolving the issue will be unique, they also find an innovative and interesting way to devise
a solution which is not just insightful but effective too.

Entrepreneurial Strategies:
Social Entrepreneurs use entrepreneurial strategies, skills and principles in order to identify the main cause of the
problem and finding out unique solution and implement them so as to eradicate the social problems.
Therefore, social entrepreneurship covers four main elements:

● Focus on a specific social need.

● Oriented towards the creation of social value. Social value implies the fundamental long-standing need of
society.
● Stresses on a social change
● Admits that the means to achieve the mission can include completely altruistic, hybrid or market-oriented
mechanism.

Who is a Social Entrepreneur?

● Social Entrepreneur is an individual who identifies social issues, use his/her entrepreneurial skills to come up
with innovative solutions and implement the same in order to benefit humanity. Their main focus is on the
marginalized section of society.
● A social entrepreneur is ready to bear all the risks and put their efforts so as to bring positive improvements in
the condition of society. They create new products and services, systems and solutions to initiate change. Hence,
they act as a change agent who fosters innovation and inclusiveness.

Characteristics of a Social Entrepreneur

● Not bound by normsor traditions
● Not confined by barriers that stand in the way of their goals
● Develop new models and pioneer new approaches to enable them to overcomeobstacles
● Take innovativeapproaches to solve social issues
● Transform communitiesthrough strategic partnerships

 One of the core characteristics of a social enterprise which separates it from other business models is its
capacity to earn revenue coupled with the social mission.
 A vital dimension intersecting the discussion of social entrepreneurship is a social enterprise’s
involvement with financial aspects.
 Many scholars argue whether a social enterprise should be non-profit or for-profit entity.
  In fact, the for-profit entity of the social enterprises have been victim of more argument and controversy
as a contrasting element to social value creation.

Corporate Social entrepreneurship

Objectives

Introduction