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Unit 1 - Lesson 1

The document introduces the concept of entrepreneurship, defining it as the process of creating and managing new enterprises while taking on associated risks. It discusses the traits of successful entrepreneurs, the differences between entrepreneurs and managers, and the role of intrapreneurs within organizations. Additionally, it covers factors affecting entrepreneurship, core competencies, types of entrepreneurs, career opportunities, and common myths surrounding entrepreneurship.

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Najiyyah Sumayan
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6 views28 pages

Unit 1 - Lesson 1

The document introduces the concept of entrepreneurship, defining it as the process of creating and managing new enterprises while taking on associated risks. It discusses the traits of successful entrepreneurs, the differences between entrepreneurs and managers, and the role of intrapreneurs within organizations. Additionally, it covers factors affecting entrepreneurship, core competencies, types of entrepreneurs, career opportunities, and common myths surrounding entrepreneurship.

Uploaded by

Najiyyah Sumayan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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INTRODUCTIO

N TO
ENTREPRENEURSHI
P
By Abhishek
Duttagupta
Learning Outcomes

 Discuss the relevance of the course;


 Explain the concepts of entrepreneurship
 Define Entrepreneurship
 Entrepreneurial Traits
 Entrepreneur vs. Manager
 Entrepreneur vs. Intrapreneur
 Factors affecting Entrepreneurship
 Functions and types of entrepreneurs
 Explain the core competencies in entrepreneurship; and
 Explore job opportunities for entrepreneurship as a career
 Some Myths about Entrepreneurship
What Is An
Entrepreneur ?
Concept of Entrepreneurship

• The word "entrepreneur" was derived


from the French verb enterprendre,
which means "to undertake." This
refers to those who "undertake" the
risk of new enterprises.
Concept of Entrepreneurship
• An enterprise is created by an entrepreneur and the process of its
creation is called entrepreneurship.
• An enterprise is an entrepreneurial activity, especially when
accompanied by initiative and resourcefulness.
• Entrepreneurship is a process of actions of an entrepreneur who
is always in search of something new to exploit new ideas into
gainful opportunities by accepting the risk and uncertainty of the
enterprise.
• Entrepreneurship is not so much a skill as a habitual state of mind.
7
Concept of Entrepreneurship
• Entrepreneurs are innovators, willing to take risks and
generate new ideas to create unique and potentially profitable
solutions to modern-day problems.

• When entrepreneurship describes activities within a firm or


large organization, it is referred to as intrapreneurship. This
may include corporate venturing, when large entities.

8
Concept of Entrepreneurship
- Entrepreneurship employs what Schumpeter called the "gale of
creative destruction" to replace wholly or partly inferior
innovations across markets and industries.
- Entrepreneurship ranges in scale from solo projects
(even involving the part-time entrepreneur) to major
undertakings that create many job opportunities.

9
Concept of Entrepreneurship

- Entrepreneurial activities can be incremental or


disruptive. Incremental innovations are a number of small
changes that transform process flows while disruptive
innovations are entirely new approaches.

10
Concept of Entrepreneurship
• Various views about an ‘Entrepreneur’:
• as a risk bearer
• as an organizer
• as an innovator

• Entrepreneurship is related to:


• coordination, innovation and performance of the
entrepreneur.
• a system of creating new business.
• referred to the various activities, done for the
establishment and operation of an enterprise.
Definition of Entrepreneurship
• “Entrepreneurship is the purposeful activity of an individual or a
group of associated individuals, undertaken to initiate, maintain
or aggrandize profit by production or distribution of economic
goods and services”
- A. H. Cole

• “Entrepreneurship is based on purposeful and systematic


innovation. It included not only the independent businessman
but also company directors and managers who actually
carry out innovative functions.”
- Joseph A. Schumpeter
Definition of Entrepreneurship
• “Entrepreneurs are people who have the abilities to see and
evaluate business opportunities , together with the
necessary resources to take advantage of them, and to ensure
appropriate action to ensure success.”
- International Labour Organization

• “An entrepreneur is a person who starts a new venture, taking the


initiative and risk associated with it and does so by
crating something new to provide value to customers.”
- David Holt
Other Definitions of Entrepreneurship
• “Entrepreneurship is the process by which individuals
pursue opportunities without regard to resources they currently
control.”
- Stevenson & Jarillo

• “Entrepreneurship is the art of turning an idea into a business.”


- Fred Wilson
Entrepreneurial Traits
• Innovation
-does something new and different, seeking to
do something different and unique, try to meet the
changing requirements of customers.

• Risk – Bearing
-must be able to assume the risk involved in the
enterprise, needs to be a risk taker not an avoider, should
have ability of risk bearing .
Entrepreneurial Traits
• Passion for the Business
-This passion typically stems from the entrepreneur’s
belief that the business will positively influence people’s lives.

• Product/Customer Focus
-An entrepreneur’s keen focus on products and
customers typically stems from the fact that most
entrepreneurs are, at heart, craftspeople.

• Execution Intelligence
-The ability to fashion a solid business idea into a
viable business is a key characteristic of successful
entrepreneurs.
Entrepreneurial
Traits
• Lengthy attention span • Achievement motivated
• Optimistic disposition • Alert to opportunities
• Persuasive • Creative
• Responsive to criticism • Decisive
• Self-confident & Self-starter • Energetic
• Tenacious • Has a strong work ethic
• Tolerant of ambiguity • Is a networker
• Visionary
• Initiative Taker
Entrepreneurs v/s Managers
• Entrepreneur refers to a person who creates an enterprise,
by taking financial risk in order to get profit.

• Manager is an individual who takes the responsibility of controlling


and administering the organization.
BASIS FOR COMPARISON ENTREPRENEUR MANAGER
Focus Business startup Ongoing operations
Primary motivation Achievement Power
Approach to task Informal Formal
Status Owner Employee
Reward Profit Salary
Decision making Intuitive Calculative
Driving force Creativity and Innovation Preserving status quo
Risk orientation Risk taker Risk averse
Intrapreneurs
• An Intrapreneur is someone within a company that takes risks in an
effort to solve a given problem and is usually is in charge of undertaking
innovations in product, service, process etc.

• Organizations want to form:

• Product Champions: people who take ownership of a product from


concept to market.
• Skunkworks: a group of intrapreneurs kept separate from the rest of
the organization.
• New Venture Division: allows a division to act as its own
smaller company.
• Rewards for Innovation: link innovation by workers to
valued rewards.
Factors Affecting Entrepreneurship
• Initiative
• Proactive
• Perseverance
• Problem-solver
1. Personality • Persuasion
Factors • Self-confidence
• Self-critical
• A Planner 20

• Risk-taker
Factors Affecting Entrepreneurship
• Political
• Climate
• Legal System
• Economic
2. Environmental • Social Conditions
Factors • Market Situations

21
Core Competencies in Entrepreneurship

Economic and
dynamic Innovation
activity

Profit Risk
Potential Bearing

22
Functions of an Entrepreneur
1. Innovation
2. Assumption of Risk
3. Research
4. Development of managerial skills
5. Overcoming resistance to change
6. Catalyst of Economic development

23
Types of Entrepreneurs
1. Innovative entrepreneurs
2. Imitating
3. Fabian
4. Drone
5. Social

24
Career Opportunities
1. Mid-level management
2. Business Consultant
3. Sales
4. Research and development
5. Not-for-profit fundraiser
6. Teacher
7. Recruiter
8. Business reporter
25
Some Myths about Entrepreneurship
1. Entrepreneurs, like leaders, are born, not made.
2. Entrepreneurs are academic and social misfits.
3. To be an entrepreneur, one needs money only.
4. To be an entrepreneur, a great idea is the only
ingredient.
5. One wants to be an entrepreneur as having no boss
is great fun.

26
QUIZ 1
DISCUSSION
1. Define entrepreneurship 2. Joseph Schumpeter's concept of
and describe the role of the "Gale of Creative Destruction"
describes how innovation and
entrepreneurs in business technological advancements
development. What are the continuously disrupt existing
industries, leading to the rise of new
key traits of a successful businesses and the decline of
entrepreneur, and what outdated ones. Explain this concept
factors influence in the context of modern
entrepreneurship. How does
entrepreneurial success? creative destruction drive economic
Support your answer with progress, and what challenges does
examples. it pose for businesses and society?

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