Budge Budge Institute of Technology

Nishchintapur, Budge Budge, Kolkata, West Bengal 700137

Paper Name: Entrepreneurship and Start-ups Paper Code: 632/1N

Unit-1: Entrepreneurship – Introduction & Process
1.1 Concept, Competencies, Functions and Risks of entrepreneurship

1.2 Entrepreneurial Values& Attitudes and Skills.

1.3 Mindset of an employee/manager and an entrepreneur

1.4 Types of Ownership for Small Businesses

 Sole proprietorship
 Partnerships
 Joint Stock company- public limited and private limited companies

Difference between entrepreneur and Intrapreneur

Concepts: The term ―entrepreneur‖ likely comes from the French word "entreprendre," meaning to start something.
Richard Cantillon, an 18th-century Irish-French economist, is widely credited with defining entrepreneurship —
and entrepreneurs — as an economic force that drives development.

Entrepreneurship is when an individual who has an idea acts on that idea, usually to disrupt the current market with
a new product or service. Entrepreneurship usually starts as a small business but the long-term vision is much
greater, to seek high profits and capture market share with an innovative new idea.

Competencies: Personal competencies: creativity, determination, integrity, tenacity, emotional balance and self-
criticism. Interpersonal competencies: communication, engagement/charisma, delegation, respect. Business
competencies: business vision, resource management, networking, negotiating skills.

Key competencies of an entrepreneur: Risk-taking abilities, Out-of-the-box thinking and creativity, Problem-
solving abilities, Taking initiative, Persistence, Persuasion and social skills, Business management skills, Critical
thinking skills.

Functions:
Innovation: Entrepreneurs play a crucial role in introducing new combinations and ideas in various economic
activities. This innovation can take different forms, such as the introduction of new products, methods of
production, market expansion, sourcing new raw materials, or even creating new forms of industry organization.

Risk Taking: Entrepreneurs willingly take on the responsibility for potential losses that may arise due to
unforeseen circumstances in the future. They guarantee payments to creditors, wages to labor, and rent to
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Nishchintapur, Budge Budge, Kolkata, West Bengal 700137

landlords, even if it means there might be little or no profit left for them.

Organization Building: Entrepreneurs bring together different factors of production and efficiently organize
them to fulfill the decision-making and administrative functions of the enterprise. They are responsible for
determining the business’s direction, expansion, and growth, while also performing planning, coordination, and
control tasks.

Perceiving Market Opportunities: Entrepreneurs have a keen ability to identify and perceive market
opportunities. They spot potential gaps and demands in the market and capitalize on them to create commercially
viable and useful products.

Management: Entrepreneurs take on various management responsibilities, including purchasing inputs,

marketing products, dealing with bureaucratic processes, managing human relations within the firm, handling
customer and supplier relations, managing finances, overseeing production, and introducing new production
techniques and products. They play a multifaceted role in managing and overseeing various aspects of the
business.

Risks of entrepreneurship:
Entrepreneurs face multiple risks such as bankruptcy, financial risk, competitive risks, environmental risks,
reputational risks, and political and economic risks. Entrepreneurs must plan wisely in terms of budgeting and
show investors that they are considering risks by creating a realistic business plan.

1. Entrepreneurs face multiple risks such as bankruptcy, financial risk, competitive risks, environmental
risks, reputational risks, and political and economic risks.
 Budge Budge Institute of Technology
Nishchintapur, Budge Budge, Kolkata, West Bengal 700137

2. Entrepreneurs must plan wisely in terms of budgeting and show investors that they are considering risks
by creating a realistic business plan.
3. Entrepreneurs should also consider technology changes as a risk factor.
4. Market demand is unpredictable as consumer trends can change rapidly, creating problems for
entrepreneurs.

Entrepreneurial Values: Entrepreneurial values are prerequisites for entrepreneurial behavior. They
include creativity, risk-taking, innovation, achievement-oriented, ambition, and independence. Values in running
a business contain a consideration that develops one's personal or social ideas. The core values among
entrepreneurs are honesty, reliability, respect for all, innovation and creativity, outstanding performance and
independence

Entrepreneurial Attitudes: The adoption of a sustainable and innovation-oriented entrepreneurial attitude

encompasses the attainment of economic (micro), social (meso), and environmental (macro) development.
Entrepreneurial attitude is a function of various factors such as personality traits, education, experience, social
and economic conditions, and family background among other related indicators. This study, has tried to figure
out which factor better predicts students entrepreneurial attitude.

Entrepreneurial Skill: Entrepreneur skills include various skill sets such as leadership, business management,
time management, creative thinking and problem-solving. You can apply these skills in many job roles and
industries. These entrepreneur skills are vital for promoting innovation, business growth and competitiveness.
Listed skills are very important of an entrepreneur
1. Business Management Skills
2. Communication and Listening
3. Critical and Creative Thinking Skills
4. Strategic Thinking and Planning Skills
5. Branding, Marketing, and Networking Skills
6. Entrepreneurial Skills in the Workplace
7. Teamwork and Leadership Skills
8. Time Management and Organizational Skills
9. Sales Skills
10. Stress Management Skills
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Nishchintapur, Budge Budge, Kolkata, West Bengal 700137

Skill development process:

Define goals: Establish your business objectives, strengths, weaknesses, and what you want to achieve
Learn: Podcasts, books, and seminars can be great sources of information to enhance your skills
Take online courses: Online courses are an excellent way to boost the skills you want to develop
Look for a mentor: Mentorship can make a significant impact on your life and career; seek mentorship from
successful leaders to enhance your skills
Work hard: Develop a strong work ethic and be consistent in your efforts to grow
Be adaptable: Stay open to change and embrace new ideas and opportunities as they arise
Foster a growth mindset: Focus on continuous learning and seek out new opportunities to develop your skills

Few examples of entrepreneurial skills:

Mentorship, Reliability, Responsibility, Strategic thinking, Delegation, Risk-taking, Empathy, Networking,
Creativity, Innovation, Problem-solving, Flexibility, Conflict resolution, Financial skills, Customer service.

Mindset of an employee: An employee mindset believes that it's up to their boss or company to provide
opportunities for growth and development. They're more likely to wait around for someone else to tell them what to
do next. If you want to be successful in your career, it's important to develop a business mindset.

Mindset training helps employees establish a growth mindset to embrace learning experiences and tackle new
challenges. When you have team members who are more inclined to a 'fixed mindset', it can be harder for them to
push through difficulties, take on feedback, and step outside of their comfort zone.

Mindset of a manager: A managerial mindset refers to the way a manager deal with the work, employees, and
world around them. Mindset is the perspective a person takes or their way of thinking. In Harvard Business Review,
management professor Henry Mintzberg outlined the five types of managerial mindset that exist these are
Managing, they determined, involves five tasks, each with its own mind-set: managing the self (the reflective mind-
set); managing organizations (the analytic mind-set); managing context (the worldly mind-set); managing
relationships (the collaborative mind-set); and managing change (the action mind-set)

Mindset of an entrepreneur:
An entrepreneurial mindset is resilient, resourceful, and solutions-oriented — even when the conditions say
otherwise. People with these mindsets are lifelong knowledge-seekers who are curious and creative, and they are
critical thinkers, Barrett said.
KEEN takes a specific approach to defining the entrepreneurial mindset along three components: curiosity,
creating value, and connections (3Cs).
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Nishchintapur, Budge Budge, Kolkata, West Bengal 700137

Types of business ownership in India:

Sole Proprietorship
Partnership firm
Private Limited Company
Public Limited Company
One-person Company
Limited Liability Partnership

Sole Proprietorship: A sole proprietorship is a non-registered, unincorporated business run solely by one individual
proprietor with no distinction between the business and the owner. The owner of a sole proprietorship is entitled to
all profits but is also responsible for the business's debts, losses, and liabilities.

Example: If you are a freelance writer or photographer, for example, you are a sole proprietor or sole trader.
Depending on the industry, state, and local regulations, you may however have to obtain various permits or
licenses.

Partnership firm: A partnership firm is where two or more persons come together to establish a business and
divide its profits amongst themselves in the agreed ratio. The partnership business includes any kind of trade,
occupation and profession. The Indian Partnership Act, 1932 governs and regulates partnership firms in India.

Example: A partnership business, by definition, consists of two or more people who combine their resources to
form a business and agree to share risks, profits and losses. For example law firms, physician groups, real estate
investment firms and accounting groups.
Private Limited Company: A private limited company is a privately held business entity held by private
stakeholders. The liability arrangement, in this case, is that of a limited partnership, wherein the liability of a
shareholder extends only up to the number of shares held by them.
A Pvt. ltd company is a privately held business entity. It is privately held by the shareholders and the maximum
number of shareholders should not be more than 200.

Example: Any type of business can set up as a private limited company – for example, a plumber, hairdresser,
photographer, lawyer, dentist, accountant or driving instructor.

Public Limited Company: A public limited company is a joint stock company, that is not a private company, and
the shares of which are listed on a stock exchange. A private company is a closely held company that does not have
its shares listed on any stock exchange and cannot be openly traded.

Example: Rolls-Royce Holdings Plc. Royal Mail Plc. Tesco Plc. Vodafone Group Plc.