Fundamental of Entrepreneurship

• Role of Entrepreneurship
• Emerging Trends in Entrepreneurship

by Amrit Bista
Role of Entrepreneurship in
Economic Development
Entrepreneurship plays a crucial role in driving economic growth. It's more than
just increasing per capita output and income.

Entrepreneurs initiate change in the structure of both business and society.

Promotes Capital Formation
1 Mobilising Idle Savings 2 Generating Wealth 3 Economic Growth
Entrepreneurs play a crucial role in Entrepreneurial ventures often This value creation and wealth
mobilising idle savings from the leverage both personal and generation is essential for driving
public, channeling these resources borrowed capital to establish their industrial and economic
into productive investments. enterprises, creating value addition development in any country.
and contributing to wealth creation.
Employment Opportunities
Nepal has a large youthful population, with over 63.7% of the population under 30 years old.

The unemployment rate for youth aged 15-29 is significantly higher at 19.2%, compared to the
overall unemployment rate of 2.7%.

Under 30 Over 30

Approximately 400,000 young people enter the workforce annually, putting a strain on the
job market and demanding innovative solutions for economic development.
Creates Large-Scale Employment
Opportunities
1 Immediate Employment
Entrepreneurship creates a significant number of jobs for unemployed
individuals, a common challenge in developing nations.

2 Direct & Indirect Employment

The establishment of new businesses, both large and small, generates
numerous job opportunities.

3 Growing Enterprises
As these enterprises expand, they create even more job opportunities, both
directly within the company and indirectly in related industries.
Promotes Balanced Regional Development

Entrepreneurs can reduce regional Industrial growth leads to public benefits Development in rural areas encourages
disparities by setting up industries in less like transportation, healthcare, education, balanced regional development.
developed areas. and entertainment.
Reduces Concentration of Economic Power
Economic Power Addressing the Problem

Economic power naturally emerges from industrial and business Monopolies can arise from the concentration of economic power.
activities.

Industrial development often concentrates economic power in the Entrepreneurship can help by fostering competition and
hands of a few individuals. distributing economic power more evenly.
Wealth Creation and Distribution

Economic Growth Multiplier Effect Equitable Distribution

Entrepreneurs invest capital in their Entrepreneurial activities generate a Entrepreneurship helps distribute wealth
businesses, creating new products and multiplier effect, creating new jobs, and income more equitably among different
services that meet market demands, stimulating demand for goods and services, socioeconomic groups and geographic
resulting in economic growth. and boosting economic activity in various areas, promoting economic inclusivity and
sectors. social development.
Increasing GNP and Per Capita
Income
Resource Mobilization New Markets
Entrepreneurs play a vital role in By introducing new products and
capital and skill resource services, entrepreneurs expand
allocation, which is essential for markets and create new avenues
economic growth. for economic activity.

Economic Growth
Entrepreneurial activities contribute to increased gross national product
(GNP) and per capita income, which are key indicators of economic
prosperity.
Improvement in the Standard of Living
Higher Standard of Living Access to Better Goods

A higher standard of living is a key indicator of economic Through innovation and efficiency, entrepreneurs can provide
development, reflecting the well-being of a nation's citizens. better quality goods and services at lower prices.

Entrepreneurs play a crucial role in improving the standard of living This increased affordability allows consumers to access a wider
by producing goods and services that enhance quality of life. range of products, leading to an improved standard of living.
Facilitates Overall Development
Entrepreneurial Catalyst
Entrepreneurs act as a catalyst for change, setting in motion a chain reaction of economic growth.

Industrialization
Once an enterprise is established, it sparks a process of industrialization, leading to further development.

Multiplier Effect
Entrepreneurs expand their activities, creating an environment of enthusiasm and driving overall development of the region.
Entrepreneursh
ip Landscape
Emerging Trends in
Entrepreneurship
The entrepreneurial landscape is constantly evolving, with new trends emerging
to shape the future of business.

These trends reflect changing societal values, technological advancements, and

economic shifts.

by Amrit Bista
Types of Emerging
Entrepreneurship
1 Diversity 2 Social Entrepreneurship
Entrepreneurship
Entrepreneurship is inclusive of Social enterprises address societal
individuals from various issues while generating revenue
backgrounds. It's not limited to and creating sustainable
specific demographics. solutions.

3 Strategic Entrepreneurship 4 Digital

Entrepreneurship
Combining innovation with
strategic management to achieve Creating and running businesses
long-term success and that operate primarily or entirely
competitive advantage. online, utilizing digital
technologies and platforms.
Types of Emerging
Entrepreneurship
5 Green Entrepreneurship 6 Intrapreneurship

Innovating within an existing organization,

Building businesses that address
using entrepreneurial skills to develop new
environmental challenges and
products, services, or business models
contribute to sustainability.
while being part of a larger company.
 01
Diversity
Entrepreneurship
Diversity Entrepreneurship

Diversity Importance

Diversity entrepreneurship refers to businesses founded by individuals who represent a Diversity entrepreneurship is crucial for driving innovation, fostering inclusivity, and
diverse range of backgrounds, including ethnicity, gender, sexual orientation, and addressing social and economic disparities. By supporting diverse entrepreneurs, we
socioeconomic status. create a more equitable and prosperous society.
Diversity Entrepreneurship

Key Characteristics:

- Encouraging entrepreneurship within marginalized

communities (e.g., women, people of color, LGBTQ+
individuals).
- Fostering a diverse workforce, leadership, and
inclusive company cultures.
- Addressing societal disparities through business
creation.

Diversity
Example: Diversity
Entrepreneurship

Diversity in entrepreneurship is essential for fostering

innovation, creating a more inclusive economy, and
addressing societal challenges. Diverse perspectives and
experiences bring new ideas, solutions, and approaches to
problems.
 02
Social
Entrepreneurship
Social Entrepreneurship
Focus: Solving social, environmental, or cultural
issues while creating a sustainable and profitable
business.

Key Characteristics:
The primary goal is creating social impact,
although profit generation is also important for
sustainability.
Often involves innovating in sectors like
healthcare, education, renewable energy, and
poverty alleviation.
Blending business strategies with a mission to
address systemic problems.
Social Entrepreneurship

Social Impact
Social entrepreneurship focuses on addressing social problems with innovative solutions.

Sustainable Business Model

Social entrepreneurs operate with a dual mission: generating social impact while creating a
sustainable business.

Social Change
They aim to create lasting positive change in communities and society.
Example: Social
Entrepreneurship
Programs and Initiatives of Sochai
Social Impact Bonds Incubators and Accelerators
Social impact bonds incentivize investors by providing These programs provide support and resources to social
financial returns based on the success of social programs. entrepreneurs during the early stages of their ventures.

Grants and Funding Opportunities Social Enterprise Networks

Government agencies, foundations, and corporations offer These networks connect social entrepreneurs, providing
grants and funding specifically targeted at social mentorship, networking opportunities, and knowledge
entrepreneurship. sharing.
 03
Strategic
Entrepreneurship
Strategic Entrepreneurship
Focus: Combining innovation with strategic
management to achieve long-term success and
competitive advantage.

Key Characteristics:
Involves the identification and exploitation of
opportunities while managing risks and
uncertainties.
Entrepreneurs must not only be innovative but
also able to craft and execute strategies that align
with long-term business goals.
Integrates both entrepreneurial thinking (creative,
opportunity-driven) and strategic management
(structured, goal-driven).
Strategic Entrepreneurship:
Tesla's Revolutionary
Approach
Strategic entrepreneurship represents the pinnacle of business innovation, combining forward-
thinking opportunity-seeking with astute resource management to drive competitive advantage
and sustainable growth. At the forefront of this concept stands Tesla, Inc., a company that has
redefined not just the automotive industry, but the entire landscape of sustainable energy and
transportation.

Under the visionary leadership of Elon Musk, Tesla has exemplified how strategic entrepreneurship
can transform markets, challenge established norms, and create entirely new paradigms of value.
This presentation will delve into Tesla's journey, exploring how the company has leveraged
innovative strategies, resource optimization, and calculated risk-taking to become a global leader in
electric vehicles and clean energy solutions.

by Amrit Bista
Innovative Opportunity-Seeking

Market Gap Identification Product Design Innovation

Tesla recognized the absence of high-performance, desirable The company revolutionized EV design, creating vehicles that not
electric vehicles in the market, challenging the perception that only matched but surpassed traditional cars in performance,
EVs were inferior to gasoline-powered cars. safety, and luxury features.

Unique Positioning Continuous Innovation

Tesla positioned itself as a technology company rather than just The company consistently pushes boundaries, introducing
a car manufacturer, emphasizing energy efficiency, cutting-edge features like over-the-air updates and autonomous driving
technology, and software integration. capabilities, setting new industry standards.

Tesla's approach to innovation goes beyond mere product development. By reimagining the entire concept of what a car company could be,
Tesla has created a new paradigm in the automotive industry, one that prioritizes sustainability, technology integration, and user experience.
Strategic Resource Leveraging

1 Capital Investment
Tesla's ambitious vision attracted significant investment, combining private equity and government loans to fund extensive R&D and production scaling. This
financial backing was crucial in allowing Tesla to pursue its long-term goals without compromising on innovation or quality.

2 Strategic Partnerships
Collaborations with key industry players, such as Panasonic for battery production, allowed Tesla to leverage external expertise while maintaining its core
focus. These partnerships have been instrumental in Tesla's rapid technological advancements and market expansion.

3 Vertical Integration
Tesla's strategy of producing its own batteries, vehicle components, and software has given it unprecedented control over its supply chain and product
development. This approach has allowed for faster innovation cycles and better cost management.

4 Talent Acquisition
By positioning itself at the intersection of automotive and technology, Tesla has attracted top talent from both industries. This diverse pool of expertise has
been crucial in driving innovation across all aspects of the company's operations.
Market Niche Exploitation
Luxury Market Entry Brand Equity Building Mass Market Transition

Tesla's initial focus on the high-end luxury By targeting affluent early adopters, Tesla The success in the luxury segment
car market with the Roadster and Model S created a powerful brand association with provided Tesla with the financial and
was a strategic move to establish brand luxury, innovation, and environmental technological foundation to develop more
prestige and generate substantial profits. consciousness. This brand equity has affordable models like the Model 3 and
This approach allowed Tesla to build a been instrumental in Tesla's ability to Model Y. This strategic progression has
strong reputation for quality and command premium prices and maintain allowed Tesla to capture a significant
performance, crucial for its later customer loyalty even as it expands into share of the broader electric vehicle
expansion into more affordable more mainstream markets. market while maintaining its premium
segments. brand image.
Expanding Innovation Beyond Vehicles

Electric Vehicles Solar Energy Energy Storage Charging Network

Tesla's core business of The acquisition of SolarCity Tesla's Powerwall and The Supercharger network, a
designing and manufacturing allowed Tesla to offer Powerpack products provide proprietary charging
electric vehicles continues to integrated solar panel residential and commercial infrastructure, has been crucial
evolve, with new models and solutions, including the energy storage solutions, in addressing range anxiety and
features regularly introduced to innovative Solar Roof, complementing its solar promoting EV adoption
maintain market leadership. expanding its reach in the offerings and grid services. globally.
renewable energy sector.

Tesla's expansion beyond electric vehicles demonstrates its commitment to a holistic approach to sustainable energy. By offering a
complete ecosystem of products and services, Tesla is positioning itself as a one-stop solution for clean energy needs, from generation to
storage and consumption.
Vertical Integration Strategy

Battery Production Vehicle Manufacturing Software Development Sales and Service

Tesla's Gigafactories produce By controlling the entire vehicle Tesla's in-house software Direct-to-consumer sales model
batteries at scale, reducing costs production process, Tesla can development enables seamless and company-owned service
and ensuring supply chain rapidly iterate on designs and integration of vehicle systems and centers give Tesla full control over
control. This vertical integration implement innovations across its allows for continuous the customer experience, from
has been crucial in maintaining product line. This agility has improvement through over-the- purchase to after-sales support,
Tesla's competitive edge in EV allowed Tesla to stay ahead of air updates, enhancing the user fostering brand loyalty and
range and performance. competitors in terms of features experience and vehicle customer satisfaction.
and efficiency. capabilities over time.

Tesla's vertical integration strategy has allowed it to maintain quality control, reduce costs, and accelerate innovation across its entire value chain. This
approach, while capital-intensive, has been instrumental in Tesla's ability to bring groundbreaking products to market rapidly and maintain its technological
lead.
Risk Management and Adaptation
Risk Area Tesla's Strategy Outcome

Battery Technology Heavy investment in R&D and Gigafactory concept Industry-leading range and cost efficiencies

Production Challenges Adaptive manufacturing processes, continuous Increased production capacity and efficiency
improvement

Market Demand Shifts Diverse product range, from luxury to mass-market Broader market appeal and resilience

Regulatory Changes Proactive engagement with policymakers, adaptable Favorable positioning in evolving regulatory
strategies landscapes

Tesla's approach to risk management has been characterized by bold investments in key technologies and a willingness to adapt quickly to changing market conditions. By
taking calculated risks in areas like battery technology and production methods, Tesla has positioned itself at the forefront of the electric vehicle revolution.

The company's ability to pivot strategies in response to challenges, such as production bottlenecks or shifts in consumer demand, demonstrates a level of agility uncommon in
the automotive industry. This adaptability, combined with Elon Musk's visionary leadership, has allowed Tesla to navigate the complex and rapidly evolving landscape of
sustainable transportation and energy.
The Future of Strategic Entrepreneurship at Tesla

1 Autonomous Driving Revolution 2 Energy Ecosystem Expansion

Tesla is poised to lead the transition to fully autonomous vehicles, Tesla's vision extends beyond individual products to creating integrated
potentially reshaping urban transportation and logistics. The company's energy ecosystems. Future initiatives may include smart grid
vast dataset from its existing fleet provides a significant advantage in technologies, virtual power plants, and advanced energy management
developing and refining self-driving technologies. systems that optimize the interplay between generation, storage, and
consumption.

3 New Market Penetration 4 Technological Breakthroughs

As Tesla continues to scale, expect expansion into new vehicle segments Tesla's commitment to innovation suggests future breakthroughs in
(e.g., compact cars, trucks) and geographical markets. This growth will areas such as battery technology, materials science, and artificial
likely be supported by localized manufacturing and tailored product intelligence. These advancements could further solidify Tesla's
offerings to meet diverse global needs. leadership in sustainable technology and open new business
opportunities.

As Tesla continues to evolve, its approach to strategic entrepreneurship will likely set new benchmarks for innovation and sustainable business practices. The
company's future success will depend on its ability to maintain its innovative edge while scaling operations and navigating an increasingly competitive landscape in
the electric vehicle and renewable energy sectors.
 Competitive Advantage

Differentiation Innovation Niche Targeting

Developing unique products or Continuously improving and Focusing on underserved market

services to stand out in the market. adapting to changing customer segments to gain a competitive
needs. edge.
 Innovation
Strategies

Leverage Emerging Develop Disruptive

Identify Unmet Needs Technologies Business Models
Analyze market trends to discover Integrate innovative technologies to Challenge industry norms with novel
untapped opportunities. create unique solutions. approaches.
 Growth Hacking

Iterative Product Innovative Marketing

Rapid User Acquisition Development Strategies

Leverage data-driven tactics to Continuously optimize product Employ unconventional marketing

rapidly grow user base. features based on user feedback. methods to stand out.
 04
E-entrepreneurship
E-Entrepreneurship: The Digital Frontier
of Business
E-entrepreneurship represents the cutting edge of modern business practices, where innovative individuals harness the power of digital
technologies to create, develop, and manage enterprises in the virtual realm. This dynamic field encompasses a wide array of business
models, from e-commerce platforms to mobile applications, all leveraging the vast potential of the internet and digital tools. As traditional
business boundaries blur, e-entrepreneurs are at the forefront of transforming industries, reaching global audiences, and pioneering new
ways of delivering products and services.

In this digital age, e-entrepreneurship offers unprecedented opportunities for aspiring business owners to turn their ideas into reality with
relatively low barriers to entry. By embracing technology-driven solutions and agile methodologies, these digital pioneers are reshaping the
entrepreneurial landscape, creating value in ways that were unimaginable just a few decades ago.

by Amrit Bista
 E-Entrepreneurship
Focus: Creating and running businesses that operate primarily or entirely
online, utilizing digital technologies and platforms.

Key Characteristics:

• Businesses are often based on digital platforms, including e-commerce,

SaaS, digital marketing, or content creation.
• Low initial investment due to the digital nature of the business (e.g., no
physical storefront).
• Leverages social media, online marketing, and data analytics to grow the
business.
Digital Platform Utilization in E-Entrepreneurship

E-commerce Websites Social Media & Marketplaces Mobile Apps

Platforms like Amazon, Etsy, and Shopify Instagram, Facebook, and eBay serve as Entrepreneurs develop innovative mobile
empower entrepreneurs to create virtual powerful tools for marketing, sales, and applications to address specific needs or
storefronts, reaching customers globally customer engagement, allowing for direct provide unique services, tapping into the
without the need for physical retail spaces. interaction and targeted advertising. growing smartphone user base.

Digital platforms form the backbone of e-entrepreneurship, offering diverse avenues for business creation and growth. These platforms not
only provide the infrastructure for conducting business but also offer built-in audiences and sophisticated tools for reaching and engaging
customers. As technology evolves, e-entrepreneurs must stay abreast of emerging platforms and adapt their strategies to maximize their
digital presence and effectiveness.
Global Reach: Expanding Horizons
International Customer Base Digital Marketing Strategies Cross-Border E-Commerce

The internet eliminates geographical E-entrepreneurs employ a wide array of With advancements in logistics and payment
boundaries, allowing e-entrepreneurs to digital marketing tools to reach and engage systems, e-entrepreneurs can facilitate
access a global customer base. This customers worldwide. Search Engine seamless cross-border transactions. This
expanded reach enables businesses to scale Optimization (SEO) and Search Engine opens up opportunities for niche products
rapidly, tapping into diverse markets and Marketing (SEM) enhance online visibility, to find global markets, and for businesses to
cultural preferences. E-entrepreneurs can while social media marketing and influencer diversify their revenue streams across
tailor their offerings to different regions, partnerships create brand awareness and multiple countries.
leveraging localization strategies to resonate foster community engagement across
with international audiences. borders.

The global reach afforded by e-entrepreneurship presents both opportunities and challenges. While it allows for unprecedented market
expansion, e-entrepreneurs must navigate complex international regulations, cultural nuances, and logistical hurdles. Successful global e-
entrepreneurs develop strategies to overcome these challenges, creating truly borderless businesses.
Automation and Scalability in E-Entrepreneurship

1 Automated Systems Implementation

E-entrepreneurs integrate automated systems for inventory management, order processing, and customer service, streamlining operations and reducing manual intervention.

2 Data Analysis and Optimization

Utilizing AI and machine learning, e-entrepreneurs analyze vast amounts of data to optimize business processes, personalize customer experiences, and make data-driven
decisions.

3 Scalable Infrastructure
Cloud computing and software-as-a-service (SaaS) solutions enable e-entrepreneurs to scale their digital infrastructure on-demand, accommodating growth without significant
upfront investments.

4 Continuous Improvement
E-entrepreneurs leverage automation to continuously refine their business models, implementing A/B testing and iterative improvements to enhance efficiency and customer
satisfaction.

Automation and scalability are key advantages of e-entrepreneurship, allowing businesses to grow rapidly without a proportional increase in operational complexity. By leveraging these
technologies, e-entrepreneurs can focus on strategic initiatives and innovation, while automated systems handle routine tasks and scale to meet increasing demand.
The Future of E-Entrepreneurship
AI and Machine Learning Integration Blockchain and Decentralized Finance
E-entrepreneurs will increasingly leverage AI to personalize user The adoption of blockchain technology will revolutionize e-commerce
experiences, automate decision-making processes, and predict market transactions, smart contracts, and supply chain management, offering
trends with unprecedented accuracy. new opportunities for innovative business models.

Virtual and Augmented Reality Sustainability and Ethical E-Commerce

E-entrepreneurs will create immersive shopping experiences and virtual Future e-entrepreneurs will prioritize sustainable practices and ethical
services, blurring the lines between physical and digital realms in retail business models, responding to growing consumer demand for
and beyond. responsible consumption.

The future of e-entrepreneurship promises even greater integration of advanced technologies, shifting consumer behaviors, and evolving global markets. As
digital infrastructure continues to improve worldwide, we can expect to see a surge in innovative business models that leverage emerging technologies to
solve complex problems and create new value propositions. E-entrepreneurs of the future will need to be increasingly adaptable, tech-savvy, and socially
responsible to thrive in this rapidly evolving digital ecosystem.
Digital Transformation
Leveraging technology Evolving customer expectations Innovative business models

Utilizing digital tools to enhance Adapting to changing consumer Exploring new revenue streams
business operations. behavior and preferences. through digital platforms.
 Online Business Models
• Ecommerce
• Selling products or services through an online platform.

• Subscription-based
• Providing recurring digital content or services.

• Marketplace
• Connecting buyers and sellers in a virtual environment.
E- entrepreneurship
 05
Green
entrepreneurship
 Green Entrepreneurship
• Focus: Building businesses that address environmental challenges and contribute to
sustainability.

• Key Characteristics:

• Aims to reduce the environmental footprint of business activities, often through innovation
in green technologies, energy efficiency, or waste management.

• Focuses on creating products or services that promote sustainability, such as renewable

energy, recycling, or sustainable agriculture.

• Often overlaps with social entrepreneurship when businesses aim to solve environmental
issues while generating social benefits.
 Sustainable Products

Eco-friendly materials Circular economy Energy-efficient operations

Utilizing renewable and Implementing closed-loop Optimizing energy usage and

biodegradable resources in product manufacturing processes to adopting renewable energy sources.
design. minimize waste.
Example - EcoSathi

01
Innovative Green Solutions
eco-friendly products toothbrushes, hairbrushes,
combs made from bamboo, water bottles, bags

02
Eco-Friendly Business Models
Leveraging eco-friendly products to create
profitable green enterprises.

03
Eco-friendly startup
Started by dentist Muna Karki in 2019, Eco Sathi
Nepal promotes a zero-waste lifestyle.
 Nhu Designs

01 02 03

Sustainable business models Green product innovation Community engagement

Upcycling Innovative designs from used Collaborating with local

jeans stakeholders on sustainability.
 06
Intrapreneurship
 Intrapreneurship
• Focus: Innovating within an existing organization, using entrepreneurial skills to develop
new products, services, or business models while being part of a larger company.

Key Characteristics:

• Intrapreneurs are employees who think and act like entrepreneurs but operate within the
context of a larger company.

• They are often given the freedom and resources to develop new ideas and innovations.

• Intrapreneurship involves creating new business units, products, or services that drive
growth for the organization.
Corporate Innovation
Leveraging Internal Resources
Utilizing company assets and expertise to drive new initiatives.

Empowering Employees
Encouraging employee-led innovation within the organization.

Adapting to Market Shifts

Responding to evolving customer needs through internal innovation.
 Entrepreneurial Mindset

Innovative Thinking Risk-Taking Approach Proactive Mindset

Cultivating a mindset that embraces Willingness to take calculated risks Identifying opportunities and taking
creativity and problem-solving. and learn from failures. initiative to drive change.
 Intrapreneur Programs
• Fostering Innovation
• Intrapreneur programs cultivate entrepreneurial mindsets within organizations.

• Empowering Employees
• Employees are empowered to identify and pursue new opportunities.

• Driving Organizational Growth

• Intrapreneurship programs can lead to new revenue streams and products.
Notable Companies Encouraging Intrapreneurship

Empowerment and Autonomy Focus on Innovation Intrapreneur Ken Kutaragi

invented the PlayStation
Learning & Development Employee Empowernment
PlayStation has two-thirds of
Recognition & Rewards Strategic Partnership with ZTE
the Console Operating System
Strategic Partnership with Market Share Worldwide
Empower Women by
Networking
Thank
You