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Chapter 1, ENTRE

The document discusses the concept of entrepreneurship including defining entrepreneurs, their characteristics and functions. It describes the importance of entrepreneurship and different types of start-up firms. It also outlines the process of new venture creation and entrepreneurship development in Nepal.

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Sujan Bhattarai
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31 views15 pages

Chapter 1, ENTRE

The document discusses the concept of entrepreneurship including defining entrepreneurs, their characteristics and functions. It describes the importance of entrepreneurship and different types of start-up firms. It also outlines the process of new venture creation and entrepreneurship development in Nepal.

Uploaded by

Sujan Bhattarai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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1

INTRODUCTION

KRISHNA BASNET
Learning Objectives

After comprehensive studying of this chapter, learners will be able to:


 Understand the concept and features of entrepreneurship,
 Know for becoming an entrepreneur,
 Describe the key elements of entrepreneurship,
 Explain the concept, characteristics/traits, and functions of entrepreneurs,
 Know the common myths about entrepreneurship,
 Understand the types of start-up firms,
 Explain the importance of entrepreneurship: entrepreneurial firms, society and larger firms,
 Describe the process of new venture creation(entrepreneurship),
 Know the entrepreneurship development in Nepal,
 Explain the emerging trends in entrepreneurship.
05/01/2024 2
Concept of Entrepreneurship

Entrepreneurship refers to all the activities of entrepreneurs for establishing and operating business ventures.
Entrepreneurship is concerned with starting one’s own business for earning profit and wealth.
The word “entrepreneur” is derived from the French verb ‘enterprendre’, which means ‘to undertake’ the risk
of establishing new enterprises.
It is the process of actions of an entrepreneur who is a person always in search of something new and uses such
ideas and knowledge to grab profitable opportunities by accepting the risk and uncertainty with the enterprise.
“Entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate,
maintain or organize a profit-oriented business unit for the production or distribution of economic goods and services”.
 A. H. Cole
“Entrepreneurship involves a wide range of area on which series of decisions are required which can be grouped into three
categories consisting of perception of an opportunity, organizing an industrial unit, and running the industrial unit as a
profitable, going and growing concern.”
 H.N Patak
“Entrepreneurship is based on purposeful and systematic innovation. It includes not only the independent businessman
but also company directors and managers who actually carry out innovative functions.”
 Joseph A. Schumpeter
Features of Entrepreneurship

1. Establishment of New Ventures


2. Related to Innovation
3. Dedication and Hard Work
4. Assumption of Risk
5. Involvement and Achievement
6. Expectation of Reward
7. Best use of Opportunity
8. Create Value
Becoming an Entrepreneur

1. Create own destiny


2. Pursue own boss
3. Achieve full potential
4. Pursue financial rewards
5. Pursue own ideas
6. Set own schedule
7. Change living standard
8. Business leader
9. Means of excitement
10. Contribute to society
Elements of Entrepreneurship
Concept of Entrepreneur

An entrepreneur is one who creates new business venture by bearing certain level of risk and uncertainty
for earning profit and wealth.
He perceives an idea and then brings together resources consisting of human resource, capital, material,
machines, and technology for establishing a business.
He creates something new that can provide value to the customers and other stakeholders. An
entrepreneur creates his own business, organizes, operates, shares the risk and gets return on successful
operation of business.
He creates new ideas, manages resources, grab opportunity, and initiates action to establish and operate
business.
“The entrepreneur always searches for change, responds to it, and exploits it as an opportunity”
 Peter Drucker
“An entrepreneur is a person who starts a new venture, taking the initiative and risk associated with it and does so
by creating something new to provide value to the customers.”
 David Holt
“An entrepreneur is one who creates a new business in the face of risk and uncertainty for the purpose of achieving
profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on
them.”
 Zimmerer and Scarborough
Characteristic/Traits of Successful Entrepreneur

1. Desire for Involvement

2. Moderate Risk Bearer

3. Confidence on Ability

4. High Level of Energy

5. Take Immediate Feedback

6. Future Orientation

7. Skill of Organizing

8. High Level of Commitment

9. Tolerance of Ambiguity

10. Flexible Attitude


Functions of Entrepreneur

Entrepreneurial Functions
a. Risk Bearing Function
b. Organizing Function
c. Innovation Function

Managerial Functions
d. Planning
e. Organizing
f. Staffing
g. Directing
h. Controlling
Contd…

Promotional Functions
a. Identification & Selection of Business Idea

b. Preparation of Business Plan

c. Arrangement of Capital

Commercial Functions
d. Manufacturing
e. Marketing
f. Accounting
Myths About Entrepreneurship

1. Entrepreneurs are Born, not Made


2. Entrepreneurs are Gamblers
3. Entrepreneurs are Motivated Primarily by Money
4. Entrepreneurs Should be Young and Energetic
5. Entrepreneurs Love the Spotlight
6. Starting a New Business Guarantees Freedom
7. Entrepreneurs Give Little Attention to Their Personal Life
8. Entrepreneurs are Loners and Introverts
Types of Start-Up Firms

1. Salary substitute firms


2. Lifestyles firms
3. Entrepreneurial firms
Importance of Entrepreneurship

1. Economic impact
i. Innovation
ii. Job creation
iii. Capital formation
iv. Resource mobilization
v. Raise living standard
vi. Add national income

2. Impact on society
3. Impact on larger firms
Process of New Venture Creation (Entrepreneurship)

1. Idea generation

2. Identifying opportunities

3. Developing a business plan

4. Management and control

5. Starting the business

6. Resourcing and evaluating


Entrepreneurship Development in Nepal

1. Pre-unification stage
2. Unification stage
3. Pre five years plan stage
4. Five year plan stage
5. Liberal economy stage

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