Entrepreneurship Development

Introduction: Discover yourself-Find you Flow, Effectuation,Identify your

Entrepreneurial Style
Definitions
• Entrepreneurship is the process of designing, launching and running a new business offering a
product, process or service for sale or hire.
• The people who create these businesses are called Entrepreneurs.
• The project or undertaking that is especially difficult, complicated or risky is known as
Enterprises.

Entrepreneur Entrepreneurship Enterprise

• (The person/ The Actor) ( The process/The Act) ( The outcome)

• The word "entrepreneur" is derived from a French root
‘entreprendre’, meaning, "to undertake” and is commonly used to
describe an individual who organizes and operates a business or
businesses, taking on financial risk to do so.
• The term "entrepreneur" seems to have been introduced into
economic theory by Cantillon (1755)
 An entrepreneur is a person who starts an enterprise. He
searches for change and responds to it.
 Entrepreneur is someone who perceives opportunity, organizes
resources needed for exploiting that opportunity and exploits
it.
What is Entrepreneurship?
• Entrepreneurship is the process of setting up one’s own business as distinct
from pursuing any other economic activity, be it employment or practicing
some profession. The person who set-up his business is called an entrepreneur.
• Entrepreneurs not only search for new market demand, but also create
demand by studying the market
Example:
• Just opening a new restaurant is neither innovative nor entrepreneurial
• McDonald’s – while it did not invent anything, it is an entrepreneurship
• By applying mgmt concepts and mgmt techniques
• standardizing the “product”
• designing process and tools
• by training on the analysis of the work to be done and then setting the standards it
required
• McDonald’s both drastically upgraded the yield from resources, and created a
new market and a new customer
 E: xamine needs, wants, and problems to see how they can
improve the way needs and wants are met and problems
overcome.
 N: arrow the possible opportunities to one specific "best"
opportunity.
 T: hink of innovative ideas and narrow them to the "best" idea.
 R: esearch the opportunity and idea thoroughly.
 E: nlist the best sources of advice and assistance that they can
find.
 P: lan their ventures and look for possible problems that might arise.
 R: ank the risks and the possible rewards.
 E: valuate the risks and possible rewards and make their decision to act or
not to act.
 N: ever hang on to an idea, no matter how much they may love it, if research
shows it won't work.
 E: mploy the resources necessary for the venture to succeed.
 U: nderstand that they will have to work long and hard to make their venture
succeed.
 R: ealize a sense of accomplishment from their successful ventures and learn
from their failures to help them achieve success in the future.
Factors Affecting

Entrepreneurship
Factors affecting
Entrepreneurship
 Individual factors
 Political Factors
 Economic Factors
 Social Factors
 Technological Factors
 Ecological Factors
 Legal factors
 Individual Factors
 Desire to do something
 Technical Background
 No. of years of experience
 Occupational background-
 Educational background-
 Parental background
 Sometimes children continue their family business and make
some changes in the existing business in the form of some
new technology, new process, new product etc. they are
called second generation entrepreneur.
 Political
Factors
The extent and process of government direct or indirect intervention and
influence on businesses in an economy.
Political factors include
 tax policy, labour law, environmental law, trade restrictions etc.
 Political factors may also include goods and services which the government
wants to provide or be provided (merit goods) and those that the
government does not want to be provided (demerit goods).
 Furthermore, governments have great influence on the health, education,
and infrastructure of a nation.
 Economic
Factors
Labour: Availability of quality rather than
quantity of
labour. Entrepreneurship is encouraged if there is a
mobile and flexible labour force.
Capital: Adequate sources of capital
Market: Understanding of latest market trends and market
techniques. The size and composition of market both
influence entrepreneurship
Raw material: Adequate supply of raw material
Social Factors
 Caste Factor : There are certain cultural practices and values in every
society which influence the’ actions of individuals. It has also defined
limits to the social mobility of individuals.
 Attitude of the Society: Certain societies encourage innovations and
appreciate entrepreneurs’ actions and rewards like profits.
 Certain others do not tolerate changes and in such circumstances,
entrepreneurship cannot take root and grow.
 Similarly, some societies have an inherent dislike for any money-making
activity
 Family background : This factor includes size
of family, type of family and economic
status of family.
 Technological
 Research and Development (R&D) activity, automation,
Factors
technology incentives and the rate of technological change.
 They can determine barriers to entry, minimum efficient
production level and influence outsourcing decisions.
 Technological shifts can affect costs, quality, and stimulate
further invention, innovation and competition.
 Technology is the art of converting the natural resources into
goods and services that are more beneficial to the society.
 Due to technological development new products, new
production process, new raw material ,new researches are
encouraged for modernization.
 Legal
 Factors
Included in this component are discrimination
law,
consumer law, antitrust law, employment law, and health
and safety law.
 These factors can affect how a company operates, its
costs, and the demand for its products.
 Ecological Factors
 These include environmental aspects such as weather, climate,
and climate change, which may affect industries like tourism,
farming, and insurance.
 Growing awareness of the potential impacts of climate change
is affecting how companies operate and the products they offer,
both creating new markets and diminishing or destroying
existing ones.
 Motivatio
n
 The word Motivation has been derived from the word
“Motive” .Motive may be defined as an inner state of our mind that
moves or activates or energise and directs our behaviour towards our
goal.
 Motivation is a drive to achieve a target.
 Motives are the expressions of a person’s goal or needs.
 They give direction to human behaviour to achieve goals or fulfil
needs.
 Motivating
Factors
Internal Factors
 Desire to do Something
 Educational Background
Experience External Factors
 Government Assistance and Support
 Availability of Raw material
 Encouragement from big business houses
 Promising demand for the product.
Other Factors Responsible for Emergence of
Entrepreneurship
Background Factors

 Education ,Training and Experience

 Family ,Role models and association with similar type of
individuals
 Financial Conditions
Economic Factors
 Supportive Government Policies
 Availability of financial assistance from various funding
bodies
 Ancillary Support: Support from Suppliers , Distributors ,
Retailers etc.
 Availability of Technical factors like premises , electricity,
Labour
Reward
 Recognisition
 Social Status
ENTREPRENEUR is a person who:
1. rather than becoming a part of the problem,
proactively tries to solve it
2. uses personal creativity and intellect to develop
innovative solutions
3. thinks beyond resources presently controlled in
exploiting the emerging opportunities or attending to
the impending problems
4. has the conviction to convince others of one’s ideas
and seek their commitment towards the project
5. has the courage of heart to withstand adversities,
persist despite setbacks and be generally optimistic
 Barriers to
Raw material
Entrepreneurial
ENVIORNMENTAL BARRIERS

 Labour
 Machinery
 Land and Building
 Infrastructure Requirements
 Financial Barriers
PERSONAL BARRIERS:These barriers are caused by emotional blocks of an individual.
 Lack of Confidence
 Lack of dependability on others
 Lack of Motivation
 Lack of patience
 Inability to Dream
 Sense of embarrassment
SOCIETAL BARRIERS
 Pressure from community
 Pressure from Family
 Pressure from peer group
Entrepreneurship Development
Types of Entrepreneurship
• Small business entrepreneurship
• Large company entrepreneurship
• Scalable start-up entrepreneurship
• International entrepreneurship
• Social entrepreneurship
• Environmental entrepreneurship
• Technopreneurship
• Hustler entrepreneurship
• Innovative entrepreneurship
• Imitative entrepreneurship
• Researcher entrepreneurship
• Cyberpreneurship
Varieties of Entrepreneurships
• Agricultural/Rural Entrepreneurship
• FarmsNFarmers.org – soil & climate conditions to farmers
• Barrix.in – pheromone based pest control
• Industrial entrepreneurship
• Technopreneurship
• E-bay, Amazon, Google
• Netpreneurship
• E-learning platforms
• Netflix
• Green/Environmental or Ecopreneurship
• Waste Ventures – nutrient-rich organic compost from waste
• Fourth Partner Energy – rooftop solar projects
• Intra-corporate/firm or Intrapreneurship
• Social entrepreneurship
• Charity: water – clean drinking water around the world
• Better World Books – reuse or recycle books to promote literacy
 Characteristics Of Entrepreneurship
1. Systematic Activity • systematic, step-by-step and purposeful
• temperamental, skill and other knowledge and competency requirements
• can be acquired, learnt and developed

2. Lawful and Social • Purpose of entrepreneurship is creation of value for personal profit and
social gain legally

3. Innovation • creation of value

• introduction of new products
• discovery of new markets and sources of supply of inputs
• technological breakthroughs
• newer forms for doing things better, cheaper, faster

4. Organiser / Leader • knowledge about availability and location of the resources

• the optimum way to combine them
• product development and development of the market for the product
Characteristics of entrepreneurship
Here are a few characteristics of entrepreneurship:
• Creativity and innovation: Entrepreneurship is about coming up with new and creative ideas
and implementing them to achieve substantial profits. For example, service innovation could
be coming up with technologies to reduce cost and increase productivity.
• Risk-taking ability: The willingness to bear risk is the essential characteristic of
entrepreneurship. Risk occurs when you implement a new idea and it fails. Entrepreneurs
take calculated risks because they enjoy the challenges that come up with implementing a
new idea.
• Profit-making: Except for social entrepreneurship, all other types of entrepreneurship work
with the sole aim of making a profit. It is the reward that entrepreneurs get for taking a risk
with a new idea.
• Economic activity: Entrepreneurship involves creating, managing and running an
organization. Moreover, it generates employment and ensures optimum utilization of
resources to earn the maximum profit.
 Characteristics of Entrepreneur
 be passionate about achieving their goal
 have a spirit of adventure
 have a strong need to achieve and seek personal accomplishment
 be passionate about achieving their goals
 be self-confident and self-reliant
 be goal-oriented
 be innovative, creative, and versatile
 be persistent
 be hardworking and energetic
 have a positive attitude
 be willing to take initiative
 have a strong sense of commitment
Entrepreneurship Development
A flow state of mind spontaneously arises when we become immersed in an
activity so completely that we lose track of time.
1. Music
2. Gaming
3. Learning
4. Hobbies
 Find Your Flow
When people find their fit, they experience a state of happiness and creativity called flow.

• Be honest about your strengths and weaknesses

• Don’t let yourself get too comfortable
• Learn to take risks
Entrepreneurial styles
• 1.Visionary Entrepreneur:
• Example: Elon Musk, the founder of SpaceX and Tesla, is known for his visionary approach to space
exploration and sustainable energy.
• 2. Serial Entrepreneur:
• Example: Richard Branson, the founder of the Virgin Group, has started numerous businesses in various
industries, including music, airlines, telecommunications
• 3. Lifestyle Entrepreneur:
• Example: Tim Ferriss, known for his book "The 4-Hour Workweek," promotes a lifestyle that combines
entrepreneurship with personal freedom and travel.
• 4. Social Entrepreneur:
• Example: Blake Mycoskie, the founder of TOMS Shoes, built a business model around the
concept of "One for One," where for every pair of shoes sold, a pair is donated to a child in need.
5.Opportunistic Entrepreneur:
• Example: Nick D'Aloisio created Summly, a news summarization app, when he was just 15
years old after recognizing the need for concise news summaries on mobile devices. Yahoo
later acquired his company.
6.Innovator/Inventor:
• Example: Steve Jobs, co-founder of Apple Inc., was known for his innovative products such
as the iPhone, iPad, and Macintosh computer.
7.Franchise Entrepreneur:
• Example: Ray Kroc, who turned McDonald's into a global fast-food franchise, is a classic
example of a franchise entrepreneur.
8.Solo Entrepreneur/Solopreneur:
• Example: Pat Flynn, the creator of Smart Passive Income, runs a successful online business
independently, focusing on passive income strategies.
9.Growth-Oriented Entrepreneur:
• Example: Jeff Bezos, the founder of Amazon, is a growth-oriented entrepreneur who aggressively
expanded his company from an online bookstore into a global e-commerce and technology giant.
10.Niche Specialist:
• Example: Brian Dean, founder of Backlinko, specializes in search engine optimization (SEO) and
provides in-depth content and resources to a niche audience within the digital marketing space.
11.Tech Entrepreneur:
• Example: Mark Zuckerberg, co-founder of Facebook (now Meta Platforms, Inc.), started a social
media platform that has transformed the way people connect and share information online.
12.Collaborative Entrepreneur:
• Example: Larry Page and Sergey Brin co-founded Google, which has formed numerous
partnerships and collaborations with other technology companies and organizations over the years.
Entrepreneurial style
• CREATOR “Create a better product” Bill Gates, Steve Jobs, Richard
• SUPPORTER “Leading the Team” Jack Welch, Meg Whitman
• DEAL MAKER “Bringing People Together” Donald Trump, Rupert
Murdoch
• TRADER “Buying Low, Selling High” George Soros, John
Templeton
• ACCUMULATOR “Collecting Appreciating Assets” Warren Buffet
• LORD “Controlling Cash Generating Assets” Andrew Carnegie
• MECHANIC “Creating a Better System” Henry Ford, Ingvar Kamprad
(IKEA),
The Principles of Effectuation

Effectuation is a way of thinking and decision-making that is based on

the idea that entrepreneurs create their future by taking action and
making things happen.
Bird In Hand Principle
Affordable Loss Principle
Crazy Quilt Principle
Lemonade Principle
Pilot in the Plane Principle
Effectual Cycle
Bird In Hand Principle

• When expert entrepreneurs seek to build a new venture, they start

with their means. These means can be grouped into three categories:
• Who I am—my traits, tastes, and abilities
• What I know—my education, training, expertise, and experience
• Who I know—my social and professional networks.
• Using a combination of these means, the entrepreneur begins to
imagine possibilities and take action.
Affordable Loss Principle

In much of the business world, the manager in charge of launching a

new product analyses the market and chooses segments with the
highest expected value. It is a natural reflex that is the result of years of
training around a single mantra: maximize returns by selecting the
optimal strategy for your target. Expert entrepreneurs turn this logic on
its head—they think in terms of affordable loss rather than expected
returns.
Crazy Quilt Principle

The crazy quilt principle of effectual reasoning is the focus on building

partnerships rather than beating competitors. Since entrepreneurs tend
to start the process without assuming the existence of a predetermined
market for their idea, they don’t know who their competitors will be, so
detailed competitive analyses have little value. Instead, entrepreneurs
generally take the product to the nearest potential customer.
Lemonade Principle

If you come across lemons, make lemonade! The third principle of

effectual reasoning is at the heart of entrepreneurial expertise—the
ability to turn the unexpected into the profitable. Expert entrepreneurs
learn not only to work with surprises but also to take advantage of
them.
Pilot in the Plane Principle

The struggle for personal control is as old as humankind itself—

primitive and innate. There is abundant evidence that most people
desire control of the events in their lives, indeed over their lives, and
that such strivings for control span history and cultures.
Focus on today, not next year.
Effectual Cycle

The entrepreneur’s means provide the starting point. The action begins
in earnest when the entrepreneur begins interacting with people.
Sometimes the starting point of that interaction is an idea, a provisional
goal the entrepreneur uses to initiate the interaction and complete the
cycle.
Business Activities
• Startup Accelerator Chamber of Commerce

• Business Model Canvas

• Entrepreneurship Development