PRESENTATION REPORT ON ENTREPRENEURSHIP

SUBMITTED TO:

SUBMITTED BY: Amandeep kaur Vanisha MBA (3rd Sem)

INTRODUCTION: Entrepreneurship plays a dominant role in the growth and development of the economy. Entrepreneurship can solve the problems like unemployment, concentration of economic power in few hands, imbalanced regional development, increasing wastage of youth power in destructive activities. Entrepreneurship is the ability to start a new enterprise to earn profits by producing or marketing of goods & services to meet the needs and requirements of customers. it is the ability & quality of entrepreneur to identify an investment opportunity & to organize an enterprise in order to contribute for the real economic growth. ENTREPRENEURSHIP: Entrepreneurship is the investing and risking of time, money, & effort to start a business & make it successful. Entrepreneurship is essentially a creative activity or it is a n innovation function. The process of innovation may be in form of: Introduction of a new product. Use of a new method of production. Opening of a new market. The consequent of new source of supplying raw material. A new form of organization. Acc to Jagroop Singh, Entrepreneurship is what an entrepreneur does- innovation, risk-taking, decision making, organization building, leadership, gap filling, exploiting an economic opportunity. CHARACTERISTICS OF ENTREPRENEURSHIP: 1. Economic Activity:- Entrepreneurship is basically an economic activity because it involves creation & operation of a new enterprise. it is primarily concerned with satisfying the need of customer with the help of production & distribution of goods & services & to earn a profit.

2. Innovation:- Entrepreneurship is an innovative & a creative activity. It involves doing things in a new & better way. As an innovator , entrepreneurs has to: Introduce new things or goods with which the customer is not yet familiar; Introduce new methods of production which is not yet to apply in the particular brand of manufacturing; Find out a new source of raw material; Find a new market or customers which are not yet familiar with the product.

3. Decision making:- DSecision making activity of entrepreneur is one of the important features of entrepreneurship. Entrepreneur takes decision regarding activities of the enterprise. He decides about the types of business to be done & the ways of doing it. An entrepreneur has to make decisions to take actions with unknown & unpredictable results.

4. Functions of high achievement:- Entrepreneurship is a function of high achievement. People having high need for achievement are more likely to succeed as entrepreneurs. 5. Organization building:- Entrepreneurship implies the skill to build an organization. Organization building is the most critical ability for entrepreneurial development. This skill means that one can build an unit effectively by delegating responsibility to others. Entrepreneurs need to be good leaders & excellent administrators to be a successful organization builder. 6. Managerial skill:- Entrepreneurship requires tactful handling of various situations involving risk & uncertainties. The entrepreneur must have the ability & skill to lead & mange the affairs of enterprise. 7. Risk bearing capacity:- Risk is the part of entrepreneurship. It is always risky for an entrepreneur to start a new enterprise & doing something new & differently. The function of entrepreneurship are greatly influenced by various risky situation & factors like increase in competition , change in customer needs & taste , shortage of raw material, change in government policy, change in technology.

OBJECTIVES

Objectives of Entrepreneurship

Economic

Social

National

Availability of

Human
Profit earning Welfare of Employees

Goods.

Organic
Helping national efforts

Supply of quality good Growth

Production of goods

Satisfaction Of consumers

Creation of employment

Survival

Creative marketing

Technological Improvement

EXAMPLES OF ENTREPRENEURS:

Henry Ford

Ford did not invent the automobile, but he made it affordable to the middle class that he helped create.

His manufacturing process created the modern car industry, and with it, the car culture of the 20th century

Bill Gates

By linking his Microsoft software to IBM's first PCs, he dominated the industry.

He developed a two-prong strategy of expanding the market while maintaining a strong hold on competitors.

Steve Jobs
Steven Paul "Steve" Jobs was an American entrepreneur.

He is best known as the co-founder, chairman, and chief executive officer of Apple Inc.

ADVANTAGES OF ENTREPRENEURSHIP: 1. Achievement of Entrepreneurial goal: - It is the entrepreneurship which makes the entrepreneurs realize the objectives of the enterprise & directs their efforts towards the achievements of these objectives. It brings human and material resources together to mobilize the people for the achievement of the goals of the enterprise.

2. Optimum use of resources: - No entrepreneurial activity is undertaken without the factors of production i.e. land, labor, capital and entrepreneurship. The three factor may prove ineffective in the absence of fourth factor i.e. entrepreneurship.

3. Minimization of cost :- In the present days of increasing competition only those enterprises can survive which can produce quality goods at lowest of costs .through better planning sound org and effective control entrepreneurs enables an enterprise to reduce costs and enables an enterprise to face cut threats competition.

4. Increased profits:- Profits can be increased in any enterprise either by increasing sales revenue or reducing costs. To increase the sales revenue is beyond the control of an enterprise. Entrepreneurship by reducing costs increases its profits & provides opportunities for future growth and development.

5. Smooth running of Enterprise: - Entrepreneurship ensures efficient and smooth running of enterprise through better planning, sound organization, effective control, and various tools of entrepreneurship.

6. Employment opportunities: - Entrepreneurship and its activities provide maximum employment potential. Large numbers of persons are employed in an entrepreneurial activity in the country. The growth of entrepreneurial activities brings more & more employment opportunities.

7. Social benefits:- Entrepreneurship is beneficial not only to the business enterprises. But to the society as a whole. It raises the standard of living of the people by providing good quality products & services at the lowest possible cost.

BARRIERS TO ENTERPRENURSHIP: 1. lack of support:- The potential entrepreneurs do not able to receive the required support to start the new venture from various government and now govt agencies.

2. Incompetent management:- The entrepreneurial programmers fail due to incompetent and poor management. The biggest problem in entrepreneurship is that new entrepreneurs are not in a position to handle the enterprise successfully and efficiently due to lack of poor management.

3. Low level of commitment:- New entrepreneurs lack the spirit of commitment, hard work & dedication in the production , marketing & distribution activities.

4. Shortage of resources:- In any types of entrepreneurship activity there is a need of various resources such as raw material , labor, land, coal, oil, & power. No business run successfully and efficiently without the assistance of these required inputs & resources. Entrepreneurs especially in rural & remote areas suffer the problems of inferior quality raw material, unskilled labor & marketing activities.

5. Shortage of infrastructural facilities:- Shortage of various facilities like problem of location, layout, finance, communication, insurance, banking ,transportation,

warehousing etc.

6. Inferior communication network:- Communication networks plays a very significant role in the growth & development of an enterprise. But the small entrepreneurs especially in rural & backward areas have no communication facilities to get the order etc.

7. Lack of entrepreneurial attitude:- Entrepreneurial attitude is the basic & fundamental requirement for the growth & development of new enterprise. There is a lack of

motivation among the prospective entrepreneur in India. Entrepreneurial attitude leads to innovation, creativity in methods of production, products & marketing activities.

8. High degree of risk:- In starting a new venture there is always a high degree of risk on account of decline in product demand, change in government policies, price fluctuation, change in customer tastes and preferences etc. in these days there is a high risk due to competition , change in technology & political instability.

9. Marketing problems:- The inefficiency of entrepreneurs in marketing their problems also creates a biggest hurdles in a way of entrepreneurship . The entrepreneurs especially from rural, remote & backward areas have to depend upon the middlemen for marketing their products.

10. Lack of information:- The small entrepreneurs have not required and latest information relating to the present position & situation of business trends. They are not able to properly analyze the change in markets, trends, customers needs and requirements, government policies, technological changes.

ROLE OF ENTREPRENEURSHIP IN ECONOMIUC DEVLOPMENT: 1. Large scale production:- The demands of the people are unlimited. The satisfaction of one will lead to the desire for another. The demand will be satisfied only if the goods are produced by entrepreneurship on large scale. The consumers all over the world are able to get quality goods at comparatively cheap rates. The large scale production is possible at cheap rates due to economies in production & distribution. The country is greatly benefited by large scale production of goods by entrepreneurs.

2. Improvement in standard of living:- The growth of entrepreneurship has enabled an improvement in standard of living of people. The increased production of goods means more consumption & better standard of living. Increased entrepreneurial active\ties also lead to more employment & ultimately to more purchasing power with the people. Better income & purchasing power will help people in having a better life.

3. Mechanization & Standardization:- The development of entrepreneurship has led to mechanization & standardization of goods. Mechanization leads to better & improved method of work. There will be a need of well skilled workers. The workers will be given training to run new machines. There will be an qualitative improvements in working methods & working conditions. The mechanization will lead to standardization of products. The quality of goods will also improve.

4. Infra-structural facilities:- The development of entrepreneurship requires the creation of infra-structural facilities. The government helps on providing facilities such as roads, railways, & other means of transport, general & technical education, power etc.

5. Increase in government income:- The development of entrepreneurship brings more tax revenues to the government. The government is able to spend more money on the welfare of society. Entrepreneurship, thus indirectly helps in increasing the welfare activities & improving the standard of living of the people. 6. Creating employment opportunities:Entrepreneurship is an important source of

employment . Entrepreneurs not only get self employment but also create employment opportunities for others. The services sectors such as transport, insurance, banking etc. get a boost in their work with the increased entrepreneurial activities. The higher the rate of growth of entrepreneurship, the higher will be the employment opportunities.