Entrepreneurship Management

Entrepreneurship

Entrepreneurship Management

Who is an entrepreneur?
Entrepreneur is the person responsible for setting up a business or an enterprise. He takes the initiative, is innovative, and looks for high achievements. He is a change agent who puts up new projects that create wealth, open up employment opportunities and leads to the growth of the sector. ne who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitali!e on them.

Entrepreneurship Management

"efinitions
#he entrepreneur is an individual who introduces something new in the economy$ a new production method, a new product, a new source of raw material, a new market etc. $ %oseph &chumpeter. 'n entrepreneur is the one who always searches for change, responds to it and e(ploits it as an opportunity. )nnovation is a specific tool by which he e(ploits change as an opportunity, for a business or service. $ *eter "rucker ' true entrepreneur is the one who is endowed with more than average capacity in the task of organising and coordinating the various other factors of production. + ,rancis Walker

Entrepreneurship Management

"efinition of &chumpeter
)nnovation may occur in the following forms+ #he intoduction of the new product with which customers are not familiar with. + #he introduction of the new method of production + #he opening of a new market , that is a market into which the particular branch of the country in .uestion has not previously entered. + #he con.uest of a new source of supply of raw materials or semi finished goods + #he carrying out of the new organisation of any industry, like creation of monopoly.

Entrepreneurship Management

,eatures
&chumpeter made a distinction between innovator and inventor. He stressed the role of the entrepreneurial function in economic development. His concept is wide and narrow 'ccording to him in developing countries inventions and creativity is less He ignored the risk taking concept.

Entrepreneurship Management

*eter "rucker
'n entrepreneur is the one who always searches for change, responds to it and e(ploits it as an opportunity. )nnovation is a specific tool by which he e(ploits change as an opportunity, for a business or service. E(- /yrus 0c/ormick invented )nstallment 1uying E(- 0ichael "ell started selling computers directly to customers

,eatures Entrepreneurship not confined to big businesses Entrepreneurship behavior is more important than personality traits ,ocus should be on actions rather than the character traits

Entrepreneurship Management

Walker2s 3iew
' true entrepreneur is the one who is endowed with more than average capacity in the task of organising and coordinating the various other factors of production. ,eatures + Entrepreneurs are the pioneers in their fields + #he more competent an entrepreneur is the more superior rewards he will earn. E(- 4atan #ata "hiru 1hai 'mbani

Entrepreneurship Management

#he 5#ype E2 *ersonality

/ommon #raits of Entrepreneurs 'ggressively pursues goals6 pushes self and others &eeks autonomy, independence and freedom from boundaries &ends consistent messages6 very focused 'cts .uickly, often without deliberating 7eeps distance and maintains objectivity *ursues simple, practical solutions Willing to take risks6 comfortable with uncertainty E(hibits clear opinions and values6 has high e(pectations )mpatient6 8just do it9 mentality *ositive, upbeat, optimistic6 communicates confidence

Entrepreneurship Management

What is entrepreneurship?
)t is the propensity of mind to take calculated risks with confidence to achieve a pre determined business or industrial objective

Entrepreneur

Entrepreneurship

Enterprise

Person

Process of action

Object

Entrepreneurship Management

1arriers to entrepreneurship
:ack of a viable concept e( dule( burger, :ack of market knowledge e(:ack of technical skills e(- baby formulae by ;estle :ack of seed capital<resources :ack of business know how e( depent daipers. :ack of sufficient infrastructure 4estrictive effects of customs and traditions :egal constraints 0onopoly 4estrictions due to patents

Entrepreneurship Management

)ntrapreneur
He is the one who innovates and turns the idea into a profitable reality, within the framework of an organi!ation )t is necessary that an organi!ation has a conducive environment to encourage intrapreneurs

Characteristics of a conducive intrapreneurial environment are: Encouragement to innovation and e(perimentation ,reely available resources 0easurable rewards ,le(ibility to alter plans :ong time hori!on to measure success #op management support

Entrepreneurship Management

/omparison of #raditional 0anagers, Entrepreneurs and )ntrapreneurs

#raditional 0anagers *rimary motives *erks and promotion Entrepreneurs )ntrapreneurs

&elf$ employment, satisfaction and money &hort$term + business establishment6 :ong$term + growth of business

/reative freedom and recognition #end to follow the middle path

#ime rientation

&hort$term + meeting .uotas and budgets6 weekly, monthly, .uarterly and the annual planning hori!on

Entrepreneurship Management

#raditional 0anagers 'ctivity "elegates and supervises

Entrepreneurs

)ntrapreneurs

"irect involvement

"irect involvement , not merely delegation 0oderate risk taker ;il ;ot concerned about traditional status 'ttempts to hide risky projects from view until ready

4isk 0onetary 4isk &tatus

/areful ;il /oncerned about status #ries to avoid mistakes

0oderate risk taker High ;ot concerned about status "eals with mistakes and failures

,ailure and mistakes

Entrepreneurship Management

#raditional 0anagers "ecisions :ike to take their own but unable to disagree with superiors thers ,amily members worked for large organi!ations Hierarchy as basic relationship

Entrepreneurs

)ntrapreneurs

,ollows dream with decisions

'ble to get others to agree to help achieve their dreams &elf, customers, and sponsors Entrepreneurial small$business, professional

&erves who? ,amily history

&elf and customers Entrepreneurial small$business, professional

4elationship with others

#ransactions and #ransactions deal$making as within hierarchy basic relationship