Introduction Of Entrepreneur

And Entrepreneurship
Presenter name :
Darshan H R
 Agenda
Topic one : Evolution of concept entrepreneur
Topic two : Entrepreneurial functions

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Topic one
Evolution of concept
entrepreneur
It was generally recognized that
entrepreneurs serve as agents of change,
provide creative, innovative ideas for
business enterprises and help businesses
grow and become profitable. Whatever the
specific activity they engage in,
entrepreneurs in the twenty-first century are
considered the heroes of free enterprise

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Evolution of concept
• (i) Entrepreneur involves decision making, innovation, implementation, forecasting of the future,
independency, and success.

• (ii) Entrepreneur is a discipline with a knowledge base theory and is an outcome of complex socio-
economic, psychological, technological, legal and other factors

• (iii) It is a dynamic and risky process.

• (iv) It involves a fusion of capital, technology and human talent.

• (v) Entrepreneur is equally applicable tobig and small businesses, to economic and non-economic
activities.

• (vi) Different entrepreneurs might have some common traits but all of them will have some different and
unique qualities.

• (vii) Entrepreneur is a process. It is not a combination of some stray incidents

• (viii) It is the purposeful and organized search for change, conducted after systematic 4
Topic Two
Entrepreneurial functions
• A successful entrepreneur recognises the commercial potential of a product a service, design operating
policies in marketing, production, product development and the organisational structure. He carries out
the whole set of activities of the busine He has a high capacity for taking calculated risks and has faith in
his own capabil

• According to some economists, the functions of an entrepreneur incorporate co ordination of the business
management of the enterprise, risk-taking, controlling enterprise, innovation for change, motivation and
other related activities. In reality, entrepreneur has to carry out a combination of these in keeping with
time and environment. Truly, he has to consider new ideas, demands and exploit opportunities, and
thereby contribute to technical progress. He is thus a nucleus of high growth of the enterprise. expected to
perform the following functions

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1.Assumption of Risk: The entrepreneur assumes all possible risks of business which emerges due to the
possibility of changes in the tastes of consumers, techniques of production and new inventions. Such risks are not
insurable. If they materialize, entrepreneur has to bear the loss himself. Thus, risk-bearing or uncertainty-bearing
remains the most important function of an entrepreneur which he tries to reduce by his initiative, skill and good
judgment.
2. Business Decisions: The entrepreneur has to decide the nature and type of goods to be produced. He enters
the particular industry which offers him the bet prospects and produces whatever commodities he thinks will pay
him the most and employs those methods of production which seem to him the most profitable. He effects suitable
changes in the size of the business, its location, techniques of production and does everything that is needed for the
development of his business
3. Managerial Functions: The entrepreneur performs the managerial function. Though they are different from
entrepreneurial functions. He formulates production plans, sees to the finance, deals with purchase of raw materials,
provides production facilities, organizes sales including management. In a large establishment, the management
functions are delegated to the paid managerial personnel.

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Creativity and Innovation

Presented By:-
Amulya
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 Creativity
• Creativity is act of channelling imagination into something
concrete. It is the very first stage of design ,where actually take
from, and a plan can be developed.

Example: In the case of Uber, creativity was necessary

in producing the concept of ride sharing and making
driving jobs accessible to any individual.
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 Role of Creativity

• Creativity eliminates the limits to the mind set and skill set of an investor .

Entrepreneurship and creativity from a perfect combination. It no longer

takes number-crunching skills and practicality to run a successful business

1.SUCCESS HIGH OVERALL

Entrepreneurs are beginning to realize the importance of bringing

creative people on board. Creative workers can be a game changer in your
company if you harness and shape their skills adequately.
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 2.Increase productivity
Entrepreneurs are providing the necessary technological resources such as
visual collaboration, which is often confused with video conferencing to help their
workers discover innovative solutions and ideas.

3.Exploit employee potential

Tapping all these opportunities can result in improved financial strategies ,
increased profitability, and quick decision making. Creativity also enables an
enterprise to stay ahead of the curve.

4. Transcend boundaries
Creativity enables entrepreneurs to find some of the path-breaking
discoveries . It is a easier for an entrepreneur to get new perspectives towards solving a
financial or operational problems . 10
 5.Encourage critical thinking
Creativity slowly turning out to we one of the best ways to alleviate
problems plaguing today’s enterprise.

6. Foster innovation
Manufacturers create unique products to not only meet customer expectations
but exceed them as well .

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 INNOVATION

Innovation is upgrading or creating something new better than what we have right now.

Innovation is the process of turning a new concept into commercial success or

widespread use.

Example: Uber channelled invention in creating a solid and working business model,
based upon the ideas they had formed in creation stage.
 INNOVATION PROCESS

Understand problem
Finding new ideas
Collect information,
clearly and identify Thinking about Action and Implement
the problem solution and finding Take action and
some new ideas. implementation the
solution.
Presented by
Mohammed Ismail
 STEPS IN THE
ENTREPRENEURIAL PROCESS
DISCOVERY

The stage in which the entrepreneur generates ideas, recognizes

opportunities, and studies market.

Idea
Innovation

Opportunity
CONCEPT DEVELOPMENT
Develop a business plan : a detailed
Personal describing the business idea.

1. Choose business location.

2. Will a patent or trademarks
Be required ?

Objective

Mission statement
Executive summary
RESOURCING
The stage in which the entrepreneur identifies and acquire the
financial, human ,and capital resources needed for the venture
startup ,etc.

Start-up resources
ACTUALIZATION
The stage in which the entrepreneur operates the business and
utilizes resources to achieve its goals and objectives.

$$ Grand Opening $$
Day –to – day operation
HARVESTING
The stage in which the entrepreneur decided on business future
growth or development, or demise

What is year 5- year or 10 year plan?

Consider adding locations or providing
different products/ services. Will you go public?
DEVELOPING BUSINESS
MODEL

Presented by
Kumaraswamy
MEANING OF ENTREPRENEUR
• An entrepreneur is an individual who creates a new business, bearing most of
the risks and enjoying most of the rewards.

• Entrepreneur is one who organizes, manages, assumes, and takes risks to

build a business or enterprise.

• An entrepreneur mindset is a “set of skills that enable people to identify and

make the most of opportunities, overcome and learn from setbacks, and
succeed in a variety of settings”.
Definition of entrepreneur
“Entrepreneur are those people who have the ability to see and evaluate business
opportunities, together with the necessary resources to take advantages of them and
to initiate appropriate action to ensure success”.

-Acc to labour organization (ILO).

“An entrepreneur is someone who exercises some control over the means of
production and produces more than what he can consume in order to sell (or
exchange) it for individual (or household) income”.

-Acc to McClelland.
 meaning and definition Business model

• Business model is a framework for how a company will create value.

Ultimately, it distills the potential of a business down to its essence. A business
model answers fundamental questions about the problem you are going to
solve, and the growth opportunity within with in a given market.

• “A business model is a national or symbolic representation of a characteristic

of a firm’s strategy. It summarizes the necessary specifications required by a
firm to successfully furnish value to the customers”.

- Magretta.
Importance of business model

1. It is very useful for a new ventures so look at itself in a it.

2. It will help to construct effective business.

3. It will give close elements of a firm’s business.

4. Serves as an ongoing extinction of feasibility analysis.

5. Articulates a company’s care logic to all stakeholders.

6. Describes why the network of participants needed to make a business idea

visible are willing to work together.
Building of business model
Core
values

Compe service
titors

Busines
s model
Marketing
Cost and
and target
revenue
customer

manage
ment
Complications related to the firm’s
There are various complications related to the firm’s products markets and external
environment is understood by few or no individuals Technical specialists understand their field
of activity and the business experts understand their work. A business model helps to associate
these two fields as shown in below;

Technical input Business model Economic outputs

Starting small scale industry

• It is quite different for a new entrepreneur to promote a venture as it involves

series of different steps. A potential entrepreneur has to follow a step-by-step
approach to start a new venture.

• Small scale industries are those which manufacturing, providing services,

production are done on a small scale or micro scale…these industries do a one
time investment in machinery, plant, and etc.
Properties of small scale industries
ownership

flexibility gestation

Small
scale
industries

Area of
resources
operation

technology
Enterprises launching formalities
• Product selection

• Decide the constitution

• Registration

• Clearances from specific department

• Location

• Machinery and equipment selection

• Project report preparation

• Project appraisal

• Finance

• Implement the project and obtain final clearance

 Case study
Bhavik and ratul were two students studying hotel management course in a city college. They hailed from
Kolkata a metropolitan city and pune respectively. They became good friends during the course of their
education. Bhavik hailed from an upper class family with his parents in influential government jobs. Ratul
hailed from a lower middle class family with his single parents which means his mother depend on farming for
their livelihood. They both shared a long ambition to become successful in their life working independently.

They both were intelligent and were creative compared to others and both were intent on starting a restaurant in
one of their respective places by the name Khanna Khazana. Bhavik was against the idea of ratul starting her
clinic in a pune. He felt that people of pune already have so many options of restaurants that they won’t explore
new one. Bhavik had a strong view that people of Pune are more into fast food as majority of the population of
pune are out-station students and the concept which they have for their restaurant which is homemade food
won’t be accepted by the population of pune. But ratul was strong in his view that because he crowd is youth
and most are away from home so they will love to have homemade food.
Questions:

Q1. What are the characteristics of a good entrepreneur Bhavik and ratul are missing because of which it is
taking time for them to come to conclusion about the venture?

Ans the characteristics which both are missing are as follow:

characteristics of entrepreneur, facilitating character, self-confidence, work with vision and mission, high
degree of endurance

trouble shooting nature , initiative and enterprising personality, goal setter , calculated risk-taking ability

Q2. This business is example of which type of entrepreneurs?

Ans the case study is a classic example of business entrepreneurs. Business entrepreneurs are individuals who
conceive an idea for a new product or service and then create a business to materialize their idea into reality.
They tap both production and marketing resources in their search to develop a new business opportunity.
They may set up a big establishment or a small business unit. Trading entrepreneur is one who undertakes
trading activities and is not concerned with the manufacturing work. He identifies potential markets,
stimulates demand for his product line and creates a desire and interest among buyers to go in for his product.
He is engaged in both domestic and overseas trade.