Entrepreneurship

Objectives for a course in Entrepreneurship:

• Understand the concepts of Entrepreneur
and Entrepreneurship
• Understand the role of entrepreneur in India
• Starting of Entrepreneurial venture –
Business planning process
• Financing and managing the new venture –
Mktg, HR, Legal, Financial aspects
• Case studies
 Evolution of the Concept of
Entrepreneur
Dates back to the age of man himself – Innovate new products like
steel, fire etc.,
Learn to sell and earn by barter trade
Earliest period : Marco-Polo – Merchant adventurer. Capitalist
provided goods and money to sell the product, merchant sells and
takes profit as 75% - 25%
Middle Ages : A person who managed large production projects like
huge buildings, architecture, cathedrals etc.,
17th Century: Risk-taking , success and failure was associated to
Entrepreneurship
18th Century: The person with capital (Venture capitalists) was
differentiated from one who required capital (Entrepreneur)
19th and 20th Century: Innovation, creativity, newness are associated
with Entrepreneurship
 Product Evolution Process
• Recognition of a social need
• Inititation of technological innovation
• Iterative synthesis leading to innovation
Innovation types:
a) Ordinary innovation : New products with little technological
change
b) Technological innovation – Significant change
c) Breakthrough innovation – some technological change
d) Technology transfer – Commercialise technology of parent
company, or laboratory tested technology
• Development phase
• Industrial Phase
 Entrepreneurship Concepts
Qualities of an entrepreneur :
 Entrepreneur Vs
Entrepreneurship
Entrepreneur : Individual who bears the risk of
operating a business on the face of uncertainity.
Entrepreneurship: The process of bearing the risk
of running an enterprise .
The Entrepreneurial process:
1)Identification and Evaluation of the opportunity
2)Development of the business plan
3)Determination of the required resources
4)Management of the resulting enterprise
 Type of Startups
• Lifestyle firm – Supporting owners, does not
grow
• Foundation company – Company formed from
R&D does not go public
• High potential venture – Receives greater
investor interests. High growth potential.
• Gazelles – Very high growth potential.
 Entrepreneur Vs Intrapreneur
Entrepreneur Intrapreneur
To start a new venture as a new To start a new venture within the
organisation existing organisation
Finance and other support from Finance and other support from the
external sources like venture management of the existing
capitalists, banks etc., organisation.
An entrepreneur can take risks but at Intrapreneur takes risk but with the
his own cost consent of the organisation
They develop their own organisation The culture of the organisation is to
and culture foster and develop creative talent to
take up innovative projects
He is independent to take his own He needs to convince the
decision management to approve of his new
ideas
He also enjoys the profits of his He is a regular employee of the
business organisation but rewarded for his
benefits.
 Entrepreneur Vs Manager
Concepts Manager Entrepreneur
Primary motive Promotion, increment, Independence, opportunity
reward, power and position for innovation, own
venture, financial success
Time Orientation Short term – meeting Achieving 5-10 years
targets, weekly, monthly, growth in business / Longer
quarterly and annual term success
planning
Activities Delegate and supervise Direct involvement
Risk Carful Moderate risk taker
Status Concerned Not concerned
Failure and mistakes Tries to avoid Deals with
Decisions Concensus Independent
 Entrepreneur Vs Business Person
Entrepreneurs Business Persons
All entrepreneurs are business persons Not all business persons are
entrepreneurs

Qualties involve innovation, creativitity, Qualities are the same as Entrepreneur

risk-taking, leadership, new venture, but lacks creativity and innovation
independence etc.,

Looks for opportunities to improve and Runs the existing business

grow . Start a new business venture

Egs: Entrepreneur – Pizza Hut Franchisee outlets of Pizza Hut were

started in 2001
Franc and Dan Corney
open the first P.H in Kansas
Success Stories of Entrepreneurs
 QUALITIES OF A SUCCESSFUL
•
ENTREPRENEUR
Successful entrepreneurs have an unwaivering, total belief in themselves and
never allow anyone or anything to dispel that belief. 
• Entrepreneurs are self-motivated; they don't need anyone or anything other
than their goals to motivate them. 
• Successful entrepreneurs are not people who never fail but all successful
entrepreneurs have the capacity to bounce back after failure. Most will talk
about their failures as part of their learning curve. 
• Entrepreneurs are driven by a manic need to succeed. This can take the form
of money, recognition, fame or power. 
• Successful entrepreneurs are the world's worst losers. They have to win at all
costs. 
• Entrepreneurs are decisive, they take risks, they act impulsively on gut feelings. 
• The most successful entrepreneurs know their limitations and surround themselves
with people who have the skills they lack. 
• Entrepreneurs are driven and focused on their sales targets at all times. 
• Successful entrepreneurs are prepared to make personal sacrifices in order to
succeed. 
• Entrepreneurs are intuitive, recognising niche markets and business opportunities
that others fail to see. 
• Entrepreneurs are organised, not necessarily on paper but in their heads and able to
maintain information and monitor progress at all times. 
• Entrepreneurs make things happen, they do not spend their time dreaming about
success. They get an idea and act swiftly. 
• Entrepreneurs do not recognise limits of boundaries, they set high
targets, achieve them and set further goals. They are never satisfied
no matter their level of success. 
• Successful entrepreneurs are determined to succeed no matter
what it takes. 
• Entrepreneurs are persistent and able to endure rejection and set
backs. 
• The most successful entrepreneurs do their research to ensure they
have the answers before problems arise. 
• Entrepreneurs are open minded and prepared to listen and learn
from everyone. 
• Successful entrepreneurs are professional in their approach to
business at all times. 
• The most successful entrepreneurs never stop thinking about business,
ideas and business opportunities. Few survive on more than a few hours
of sleep a night and most will carry a pen and paper by their bed.
• Becoming a successful entrepreneur requires personal sacrifice and
commitment. Whilst having a good business idea or product is an
essential element, it is the person that turns failure into success is the
most successful entrepreneur.
• Common Sense : Studies show that most successful businessmen
consider common sense as the foundation of their
success.Common sense is defined as an ability to make sound
judgments on the issues, which you encounter in everyday
situations.
• Specialised knowledge of the field: Around 45 percent of all start-ups fail
to survive more than two years. One of the main reasons is many
entrepreneurs do not accumulate needed industry knowledge before
jumping into business world.
• Self confidence is a key entrepreneurial skill for success. It is easy to
become demoralized, frustrated and resentful if you lack 
self-confidence.
• Ability to get things done: Creativity is the ability to use your
insights and come up with new solutions to old problems, get
things done in a different way or find a totally different approach
for conventional things to work together.
•  Ability to lead : Successful entrepreneurs are capable of
leading people and get work done by them. They use a
combination of various methods - effective motivation,
planning, coaching and evaluation – to lead people.