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Entrepreneurship Development
BBA Semester: VI
Entrepreneurship
Unit 1
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Who is an Entrepreneur............
The term 'Entrepreneur' -French word 'Entreprendre’
(meaning to undertake certain activities)
1) Produces a product
2) Sells & market the product
3) Bear overheads like :-
*Pays rent of Land and building
*wages to labor
*interest on capital
*later generate profit
The term Entrepreneur was first used by
Richard Cantillon
In His Essay on”the Nature of
Commerce”(1755).
According to Richard Cantillon an
Entrepreneur was one who buys factor
services at certain prices in order to
combine them to produce a product and
sell it at uncertain prices at the moment at
which he commits himself to his costs.
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According to Jean Baptiste Say,
Entrepreneur is an Economic agent
Who uses all means of production.
Land of One, Labour of Another and capital
of yet another and thus produce a product.
By selling the product, he pays rent of
land: Wages to labour, interest on capital
and
What remain is his profit.
Thus a capitalist provides finance whereas
entrepreneur is an organiser. He
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coordinates,
Management, organise
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According to Joseph. A. Schumpeter
An Entrepreneur is an Innovator
Who Innovates raises money,
Collect inputs organise talents,
Provideing Leadership and
Set the organisation in proper order.
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Working Definition
An entrepreneur is a person who combines various
factors of production, processes raw material,
converts the raw material into a finished product
and creates utility and sells the produce in the
market to earn profit.
An Enterpreneur is a person who searches for
change and responds to it by starting an
enterprise.
ENTREPRENEURS ARE MADE AND NOT BORN.
ENTERPRISE :
Enterprise refers to a for-profit business started and run
by an entrepreneur.
Enterprise serves as a framework within which decision
concerning what to produce, how much to produce ,
where to produce are taken by the entrepreneur.
ENTREPRENEURSHIP
i. Innovation.
ii. Risk-taking.
[Link].
iv. Organizing skill.
The capacity and willingness to develop,
organize and manage a business venture along
with any of its risks in order to make a profit. The
most obvious example of entrepreneurship is the
starting of new businesses.
Enrepreneurship is the process that involves all
actions an entrepreneur undertakes to establish
and enterprise to give reality to business
Entrepreneurship
Entrepreneurship is an innovative function.
It is a leadership rather than ownership.
The process of innovation may be in the
form of:
Introduction of a New Product,
Use of a New Method of Production
Opening of a New Market
The Conquest of New Source of supplying
Raw materials
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Traditiona Modern
l Concept Concept
Ability and The ability to
aptitude to bear establish new
various types of enterprise , and
Business related carrying out
risk and facing various new
of uncertainties
improvements
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in the
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Entrepreneurial Characteristics
Being an entrepreneur requires specific characteristics
and skills that are often achieved through education,
hard work, and planning.
Risk Taker
Businesses face risk. Entrepreneurs minimize risk
through research, planning, and skill development.
Perceptive
Entrepreneurs view problems as opportunities and
challenges.
Curious
Entrepreneurial Characteristics
Imaginative
Entrepreneurs are creative. They imagine
solutions to problems that encourage them to
create new products and generate ideas.
Persistent
True entrepreneurs face bureaucracy, make
mistakes, receive criticism, and deal with money,
family, or stress problems. But they still stick to
their dreams of seeing the venture succeed.
Goal-setting
Entrepreneurs are motivated by the excitement
of staring a new business. Once achieved, they
seek out new goals or ventures to try.
Entrepreneurial
Characteristics
Self-confident
Entrepreneurs believe in themselves. Their self-confidence
takes care of any doubts they may have.
Flexible
Entrepreneurs must be flexible in order to adapt to changing
trends, markets, technologies, rules, and economic
environments.
Independent
An entrepreneur’s desire for control and the ability to make
decisions often makes it difficult for them to work in a
controlled environment.
Hardworking
Entrepreneurs need a great deal of energy to see a venture
start and succeed. Yet they are not deterred by the long
Need of Entrepreneurship
• Increases national production
• Balanced area development
• Dispersal of economic power
• Reinvestment of profit for the welfare of the area of profit
generation
• Development is a function of motivation and human
resource
• Entrepreneurial awareness
Every Big Enterprises Starts with a
small Dream
So Keep Dreaming ……………………
TYPES OF
ENTREPRENEURS
Based on the Business Type
Trading Entrepreneur
A trading entrepreneur refers to a person who undertakes business-related
activities. These types of entrepreneurs usually buy finished products in bulk
from manufacturers at some discount. They then sell these products directly or
with the help of retailers or vendors with profits. A business entrepreneur
usually acts as a middleman between manufacturers and customers. This may
include wholesalers, retailers, dealers, etc.
Binny Bansal and Sachin Bansal
Manufacturing Entrepreneur
The founder of a business to manufacture products is known as a
manufacturing entrepreneur. Manufacturing entrepreneurs analyze market
needs or customer needs and manufacture products to meet such needs using
various resources or technologies. In simple words, manufacturing
entrepreneurs transform raw materials into finished products according to the
customer's needs. Ratan Tata (Tata Group)
Agricultural Entrepreneur
Agricultural entrepreneurs refer to the types of entrepreneurs who primarily do
agricultural work. They participate in a wide range of agricultural activities such
as farming, irrigation, agricultural produce, mechanization, technology, etc.
Verghese Kurien, Sanjiv Rangrass (E Choupal
Based on the Technology
Technical Entrepreneur:Such
entrepreneurs are called technology
entrepreneurs who use to start and continue
industries primarily based on science and
technology. These entrepreneurs develop new
ideas and turn those ideas into technology-
based innovations and inventions.
Non-Technical Entrepreneur:entrepreneurs
who do not set up and run enterprises based
on science and technology are known as non-
technical entrepreneurs. In short, non-tech
entrepreneurs are those who work for
innovations using traditional methods.
Based on Ownership
Private Entrepreneur
When an entrepreneur starts something personal of his or her own,
such as setting up an enterprise, he/she is called a private
entrepreneur. A private entrepreneur is the only person who plays the
sole proprietor role for a business venture and bears the risk associated
with it.
State Entrepreneur
When a state or government does a business or industrial undertaking,
it is referred to as a 'state entrepreneur'. In this case, the government is
the sole owner of the enterprise and will bear all the profits and losses
involved with it.
Joint Entrepreneurs
When a business or industrial undertaking is established and operated
jointly by the private entrepreneur and the government, it is called joint
entrepreneurship. The parties involved are called joint entrepreneurs. In
this case, risk and profits are shared by both parties.
Based on Gender
Men Entrepreneurs
When any business venture is formed,
managed and operated by men, these men are
referred to as men entrepreneurs.
Women Entrepreneurs
When any business venture is formed,
managed and operated by women, these
women are referred to as women
entrepreneurs. Besides, if women have a
minimum 51 percent share of the capital, they
can also be known as women entrepreneurs.
Based on the Enterprise size
Small-Scale Entrepreneur
If an entrepreneur has invested up to a maximum of 1 crore
in starting an enterprise, including plant and machinery,
such entrepreneur is called Small Scale Entrepreneur.
Medium-Scale Entrepreneur
If an entrepreneur has invested a minimum of 1 crore to a
maximum of 5 crores in starting an enterprise, including
plant and machinery, then such entrepreneur is called
Medium Scale Entrepreneur.
Large-Scale Entrepreneur
If an entrepreneur has invested more than 5 crores in
starting an enterprise, including plant and machinery, such
an entrepreneur is called a large-scale entrepreneur. This
includes any investment above 5 crores.
Based on Clarence Danhof Study
Innovating Entrepreneurs
Innovative entrepreneurs, also known as innovators, are
the type of entrepreneurs who usually come to the market
with new ideas or innovations. In particular, they create new
products, find new production methods, create new
markets and restructure the business. Such entrepreneurs always
try to innovate and invest their time and money in research and
development.
Steve Jobs and Bill Gates
Imitative Entrepreneurs
Imitative entrepreneurs or imitating entrepreneurs are
often called 'copy cats'. This is because these
entrepreneurs mainly follow and adopt the innovative
entrepreneurs' existing successful enterprise system. They do
nothing new of their own. Imitative entrepreneurs apply strategy
from other enterprises in a manner where all core
fundamentals of the original business model are replicated, and
all efficiencies are retained. These entrepreneurs help
Based on Clarence Danhof Study
Fabian Entrepreneurs
Fabian entrepreneurs are defined as those types of entrepreneurs
who generally do not seek to implement changes in their enterprise
techniques. They are very careful in applying any approach and
cautious in exercising any change. These entrepreneurs are known
for not making sudden decisions. They imitate the change in their
strategy only when it is completely clear that failing to do so will not
harm.
Drone Entrepreneurs
Drone entrepreneurs are defined as entrepreneurs who do not
like to adopt any changes in their enterprise techniques. They
strictly follow their traditional strategies or methods for development,
production or marketing. These entrepreneurs feel or experience
pride and tradition in the old ways of doing business. This is why drone
entrepreneurs sometimes suffer losses, yet they do not adopt changes
in their current methods.
Typewriter Businesses , HMT Watches
Basis Entrepreneur Intrapreneur
Intrapreneur is an
An entrepreneur is an
individual having
individual having a new
entrepreneurial skills
Meaning and exclusive idea to
who works at a
establish something
previously established
new.
company.
An intrapreneur’s
An entrepreneur’s
motive is to grow the
Motive motive is to bring
business and make it
change to the world.
better.
Intrapreneurs are
Entrepreneurs are
Nature innovative in nature but
innovative in nature.
less than entrepreneurs.
Intrapreneurs are willing
Entrepreneurs are
Risk Factor to take risks but less
willing to take risks.
than entrepreneurs.
Intrapreneur’s goals are
©Goals
Entrepreneurs focus on
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to get appraisals,
long-term
Management, D-29, Institutional Area, Ja profits. appreciation, and
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Basis Entrepreneur Intrapreneur
Entrepreneurs are Intrapreneurs are
Position founders of a employees of a
company. company.
Entrepreneurs
Intrapreneurs use
Approach to operate activities
entrepreneurial
Operate using innovative
skills.
methods.
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Particulars Entrepreneur Manager
They are individuals
It refers to persons who
responsible for
establish a company or
administering and
Meaning enterprise and takes a
controlling a group of
financial risk to get
people in the company or
profits.
enterprise.
They are visionaries
who convert an idea
Position in the They are the employees
company
into a business. They
of the company.
are the owners of the
company.
They focus on business They focus on ongoing
Focus
startups. operations.
They bear all financial They do not bear any
Risk
and other risks. risks.
They focus on starting
© Institute of Information Technology and They focus on the daily
the business and
Focus Management, D-29, Institutional Area, Ja smooth functioning of the
expanding
nakpuri, New Delhi-110058 the
Their key motivation Their motivation comes
Motivation is the achievements from the power that comes
of the company. with the position.
Their reward is
Their reward is the
the profit they
Reward salary they draw from
earn from the
the company.
company.
They are risk-
They are risk-averse.
takers. They take
Nature of Their job is to maintain
calculated risks to
decisions the status quo of the
drive the
company.
company.
The decisions
Decision The decisions are
tend to be
making© Institute of Information Technology and calculative.
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Advantages of being an
Entrepreneur
Independence and Control
Unlimited Earning Potential
Personal and Professional Growth
Flexibility
Creative Freedom
Job Creation
Legacy Building
Social Contribution
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Disadvantages of being an
Entrepreneur
Financial Risk
Uncertainty
Long Working Hours
Stress and Pressure
Limited Initial Income
Responsibility Overload
Lack of Benefits
Market Competition
Social Isolation
Regulatory Challenges
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Myths about Entrepreneurship
Entrepreneurs Are Born, Not Made
Entrepreneurs Are Always Inventors
Entrepreneurs Work 24/7
Entrepreneurs Take Extreme Risks
Entrepreneurs Need a Lot of Money to Start
Entrepreneurs Need a Unique or Innovative
Idea
Success Happens Overnight
Entrepreneurs Always Work Alone
Entrepreneurs Must Have a Business Degree
Entrepreneurship Is All About the Money
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Agencies Supporting
Entrepreneurship
National and Governmental Agencies
National Small Industries Corporation (NSIC): Supports
small-scale industries through financial assistance, marketing
support, and technology upgrades.
Micro, Small, and Medium Enterprises Development
Institute (MSME-DI): Provides training, financial assistance,
and policy support for small and medium enterprises.
Small Industries Development Bank of India (SIDBI):
Offers financial and developmental support to micro, small, and
medium enterprises.
Startup India Initiative: Promotes innovation and
entrepreneurship through financial assistance, tax exemptions,
and incubation support.
Khadi and Village Industries Commission (KVIC): Focuses
on promoting rural entrepreneurship through financial
assistance and skill development.
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2. Educational and Training
Institutions
Entrepreneurship Development
Institute of India (EDI): Offers
entrepreneurship training programs,
research, and consultancy.
National Institute for
Entrepreneurship and Small Business
Development (NIESBUD): Provides
training and support to budding
entrepreneurs and trainers.
Rural
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Institutes
nakpuri, New Delhi-110058(RSETI): Conducts free, skill-
3. Financial Institutions
Banks and NBFCs (Non-Banking
Financial Companies): Provide loans and
financial support for startups and
entrepreneurs.
Venture Capital Firms: Invest in high-
potential startups in exchange for equity.
Angel Investors: Individual investors who
provide seed funding to early-stage
startups.
Crowdfunding Platforms: Allow
entrepreneurs
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4. Incubators and Accelerators
Technology Business Incubators (TBIs):
Offer workspace, mentoring, and technical
resources to technology-based startups.
Atal Incubation Centers (AICs): Promote
and nurture innovative startups through
incubation facilities.
Accelerators (e.g., Y Combinator,
Techstars): Provide mentorship, funding,
and networking opportunities to scale
businesses quickly.
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5. Research and Development Agencies
Council of Scientific and Industrial Research (CSIR):
Provides technical expertise and innovations to
entrepreneurs.
Defence Research and Development Organisation
(DRDO): Supports defense-based startups through
technology transfer and R&D.
6. Industry-Specific Agencies
Agricultural and Processed Food Products Export
Development Authority (APEDA): Supports
agribusiness entrepreneurs in marketing and exports.
Biotechnology Industry Research Assistance
Council (BIRAC): Promotes biotech startups through
funding and mentoring.
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7. International Organizations
United Nations Industrial Development Organization
(UNIDO): Supports sustainable industrial development and
entrepreneurship.
World Bank and International Finance Corporation (IFC):
Provide financial and technical assistance to entrepreneurs in
developing countries.
Global Entrepreneurship Network (GEN): Connects
entrepreneurs and promotes innovation globally.
8. Trade and Industry Associations
Confederation of Indian Industry (CII): Promotes
entrepreneurship through policy advocacy, networking, and
training.
Federation of Indian Chambers of Commerce and Industry
(FICCI): Encourages business growth and entrepreneurial
activities.
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9. Non-Governmental Organizations
(NGOs)
NGOs focused on entrepreneurship, such as
SELCO Foundation and BYST (Bharatiya
Yuva Shakti Trust), offer support to
underserved communities and young
entrepreneurs.
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