UNIT- II

INTRODUCTION TO ENTREPRENEURSHIP

ENTERPRISE
• Enterprise refers to a business or company engaged in commercial, industrial,
or professional activities with the aim of making a profit. It involves identifying
opportunities, taking risks, and using resources effectively to create and deliver
products or services to customers.
• In simple words, an enterprise is a venture or organization that operates for the
purpose of generating revenue and contributing to the economy.

ENTREPRENEUR
• An entrepreneur is someone who starts and runs their own business. They take
risks and make decisions about how the business operates, including its products
or services, marketing strategies, and finances.
• Entrepreneurs are often driven by a desire to create something new or solve a
problem, and they are willing to invest time, money, and effort into their venture
in order to make it successful.
 Successful entrepreneurs are typically innovative, adaptable, and persistent,
and they are able to identify and pursue opportunities that others may not see.

ENTREPRENEURSHIP
• Entrepreneurship refers to the process of starting, organizing, and managing a
new business venture with the goal of making a profit, It involves taking risks,
identifying opportunities in the market, and creating innovative products or
services to meet the needs of customers.
 Entrepreneurship is essential for economic growth and job creation, and it
plays a vital role in shaping our society.
BENEFITS OF ENTREPRENEURSHIP/ENTREPRENEUR
Entrepreneurship has numerous benefits, some of which
1. Independence and flexibility: Entrepreneurs have the freedom to work on
their own terms, set their own schedules and choose the projects they want to
work on.
2. Control over decision-making: Entrepreneurs have complete control over the
decision-making process for their businesses, allowing them to make quick and
effective decisions.
3. Opportunity for unlimited income: Entrepreneurs have the potential to earn
unlimited income, as their success is directly linked to the success of their
business.
4. Creative expression: Entrepreneurs can bring their own unique ideas and
vision to life through their businesses, allowing for creative expression and
innovation.
5. Job creation: Entrepreneurs have the ability to create jobs and contribute to
the growth and development of the economy.
6. Personal fulfilment: Entrepreneurship can provide a sense of personal
fulfilment and satisfaction, as individuals are able to pursue their passions and
make a positive impact on society.
7. Continuous learning: Entrepreneurs are constantly learning and adapting to
new challenges, allowing for personal and professional growth.

FEATURES AND CHARACTERISTICS OF ENTREPRENEURSHIP/

ENTREPRENEUR
The features and characteristics of entrepreneurship are as follows:
1. Innovation: Entrepreneurs are known for their ability to innovate and bring
new products or services to the market.
2. Risk-taking: Entrepreneurs are willing to take calculated risks to pursue their
business goals.
3. Passion: Entrepreneurs are passionate about their businesses and are willing
to work hard to make them successful.
4. Opportunity-driven: Entrepreneurs are always looking for new opportunities
to create value and grow their businesses.
5. Creativity: Entrepreneurs are creative and have the ability to think outside the
box to come up with new solutions to problems.
6. Independence: Entrepreneurs value their independence and are often driven
by a desire to be their own boss.
7. Leadership: Entrepreneurs possess qualities that enable them to inspire and
motivate their team to achieve their goals.
8. Self-motivation: Entrepreneurs are self-motivated and have a strong drive to
succeed.
9. Adaptability: Entrepreneurs are adaptable and can adjust to changing market
conditions and business environments.
10.Visionary: Entrepreneurs have a clear vision of where they want to take their
business and are committed to achieving their goals.
11.Customer-focused: Entrepreneurs have a strong focus on meeting the needs
of their customers and delivering value to them.

DIFFERENCE BETWEEN ENTREPRENEURSHIP & WAGE

EMPLOYMENT
S. Entrepreneurship Wage employment
No.
1 Own boss Work for others
2 Make own plans Follow instructions.
3 Responsible decision of his company Not responsible for each decision
of the company.
4 Creative activity Routine job
5 Earning can be negative surplus Earning is fixed, never negative.
6 Create wealth, contributes to GDP Do not create wealth
7 Do not have an exact age limit to exit Have a specific retirement age
their career limit
FUNCTIONS/ROLES OF AN ENTREPRENEUR
Some of the common functions/roles of an entrepreneur include:
1. Identifying opportunities: Entrepreneurs are skilled at recognizing market
gaps and identifying opportunities to create new products or services to meet the
needs of customers.
2. Innovation: Entrepreneurs are typically innovators who are constantly looking
for new and better ways to create value for their customers.
3. Risk-taking: Entrepreneurs are willing to take calculated risks to achieve their
goals, whether it's investing in a new venture, entering a new market, or launching
a new product.
4. Planning and strategizing: Entrepreneurs need to be able to develop and
execute effective business plans and strategies that enable them to achieve their
goals.
5. Resource management: Entrepreneurs must be skilled at managing resources
effectively, including financial, human, and physical resources, to ensure the
success of their business.
6. Marketing and sales: Entrepreneurs need to be able to effectively market and
sell their products or services to their target customers.
7. Networking and relationship buildings:
Entrepreneurs must develop and maintain strong relationships with suppliers,
customers, investors, and other stakeholders to build a successful business.
8. Financial management: Entrepreneurs must be able to manage their finances
effectively, including creating and managing budgets, forecasting revenue and
expenses, and securing funding as needed.
9. Leadership and management: Entrepreneurs must be able to lead and
manage teams effectively, including hiring and training employees, delegating
tasks, and providing feedback and support.
ENTREPRENEUR VS MANAGER
S.No. ENTREPRENEUR MANAGER
1. Persons who establish a company Individuals responsible for
or enterprise and takes a financial administering & controlling a group
risk to get profits. of people in the company or
enterprise.
2. They are the owners of the They are the employees of the
company. company.
3. They bear all financial and other They do not bear any risks.
risks.
4. They focus on starting the They focus on the daily smooth
business and expanding the functioning of the company.
company.
5. Their key motivation is the Their motivation comes from the
achievements of the company. power that comes with the position.
6. Their reward is the profit they Their reward is the salary they draw
earn from the company. from the company.
7. They can be casual in their role Their approach to every problem is
and have an informal approach. formal, and they take a scientific
approach.
8. The decisions tend to be intuitive. The decisions are calculative.
9. They do not need to be They are trained perform tasks and
specialized in any particular are specialists in their domain.
trade.

ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT

Entrepreneurship plays a significant role in the economic development of a
country in several ways:
1. Job creation: Entrepreneurs are job creators who establish new businesses,
thus increasing employment opportunities and reducing
2. Innovation: Entrepreneurs are known for their innovative ideas that lead to the
development of new products, services, and technologies, which can drive
economic growth.
3. Economic growth: Entrepreneurs can stimulate economic growth by
establishing new businesses and expanding existing ones, thereby creating wealth
and generating revenue.
4. International trade: Entrepreneurs can help develop international trade by
establishing export-oriented businesses and promoting the export of goods and
services.
5. Wealth creation: Entrepreneurs create wealth not only for themselves but also
for their employees, investors, and the economy as a whole.
6. Investment: Entrepreneurs can attract investment to a region or country by
establishing successful businesses, which can attract foreign direct investment
and promote economic development.
7. Infrastructure development: Entrepreneurs can play a vital role in the
development of infrastructure by investing in transportation, communication, and
other vital infrastructure projects.
8. Increased competition: Entrepreneurship leads to increased competition,
which can help to lower prices and improve the quality of goods and services,
ultimately benefiting consumers.
9. Tax revenue: Entrepreneurs can contribute to the tax revenue of a country
through their businesses, which can lead to increased government spending on
public goods and services.
10.Regional development: Entrepreneurs can promote regional development by
establishing businesses in underdeveloped regions and promoting the growth of
local industries. unemployment rates.

BARRIERS/CHALLENGES TO ENTREPRENEURSHIP
Barriers to entrepreneurship are the obstacles or challenges that make it difficult
for individuals to start, operate or grow their own businesses. Some common
barriers to entrepreneurship include:
1. Lack of access to finance: One of the biggest barriers to entrepreneurship is
the inability to secure funding. Many entrepreneurs struggle to obtain the
necessary capital to start or grow their businesses, which can limit their ability to
succeed.
2. Regulatory and legal barriers: Entrepreneurs may face various regulatory
and legal barriers such as complex business registration processes, high taxes,
and cumbersome licensing requirements.
3. Lack of infrastructure: Lack of infrastructure such as electricity, water, and
transportation to set up and run their businesses can limit their ability to operate
efficiently.
4. Limited access to information: Lack of market information, industry trends,
and customer insights can limit their ability to develop products or services that
meet customer needs.
5. Cultural and social barriers: Some cultures or societies may view
entrepreneurship as a risky or unattractive career path, leading to social stigma
and disapproval.
6. Lack of skills and education: Entrepreneurs require specific skills and
knowledge to successfully start and run their businesses. Lack of these skills or
education can limit their ability to compete effectively.
7. Fear of failure: Entrepreneurs must take risks to succeed, and the fear of
failure can prevent some from even attempting to start a business.
8. Limited access to markets: Access to markets is critical for entrepreneurship.
However, many entrepreneurs face challenges in accessing markets due to factors
such as location, competition, and limited networks.
9. Market competition: Entrepreneurs may face significant competition in their
industries, making it challenging to establish and grow their businesses. This can
be especially true for small businesses that lack the resources of larger
competitors.
10.Lack of mentorship and support: Starting a business can be a lonely and
challenging journey, and many entrepreneurs lack the mentorship and support
they need to succeed. This can include access to networks, mentorship from
experienced entrepreneurs, and business coaching.