INTRODUCTION TO

ENTREPRENEURSHIP

Brought to you by Group 1

* What is Entrepreneurship?
 Entrepreneurship is the process of designing, launching and
running a new business, which is often initially a small
business. The people who create these businesses are called
entrepreneurs.
 A person who organizes and operates a business or businesses,
taking on greater than normal financial risks in order to do so.
 Originates from the french word “Entrependre” which means
is to “Under Take” in business context, Which means is to
create a business.
*Joseph Schumpeter on Entrepreneurship

 Austrian economist Joseph Schumpeter’s

definition of entrepreneurship placed an
emphasis on innovation, such as :

 New Products
 New Production Methods
 New Markets
 New Form of Organizations
* Wealth Creation
 Wealth is created when such innovation results in new
demand.
 Defining the function of Entrepreneur as one combining
various input factors in an innovative manner to generate
value to the customer.
 The factors of Demand products.
 Thus generating superior returns that result in creation of
wealth.
* Entrepreneurship and Small Businesses

While they may have much in commons, There are a significant

difference between the two :
 Amount of Wealth Creation – rather than simply generating an
income stream. A successful entrepreneur is substantially
creating an amount of wealth, typically in excess of several
million dollars.

 Speed of Wealth Creation : While a successful business can

generate a lot of money. It is determine by the wealth gain
over time. Typically a Successful Entrepreneur will earn
several million
dollar in just 5 years whilst a small business can generate the
wealth too. But will took it a long period of time.
* Entrepreneurship and Small Businesses

 Risk - must be high. Otherwise with the incentive of sure profits

many entrepreneurs would be pursuing the idea and the
opportunity will no longer exist.
 Innovation - Gives the venture competitive advantage that
results in wealth creation. The innovation may be in the product
or service itself, or in the business processed used to deliver it.
 Image – Involves innovation, risk taking, and decision making.
Entrepreneurs are the people who make new enterprises and
are linked to a success of an enterprise depends on the
entrepreneur.
* The French Economist
 Jean-Baptiste Say was a French economist and businessman
who had classically liberal views and argued in favor of
competition, free trade and lifting restraints on business.
 According to him, An entrepreneur is a person
who shifts economic resources out of an area
of lower productivity into an area of higher
productivity and greater yield.
 Say’s Law - In classical economics, Say's law, or
the law of markets, states that aggregate
production necessarily precedes an equal
quantity of aggregate demand. Say's Law
is often incorrectly said to state that
production inherently creates consumption.
* Intrapreneurship
 This is a development within a large co-operation of internal
markets and relatively small autonomous business units
producing products, services, or technologies that employ the
firms and resources in a unique way.
 Intrapreneur – a manager within a company who promotes
innovative product development and marketing.
 Gives the manager of the co-operation the freedom to take
initiatives and try new ideas.
 Entrepreneur and Intrapreneur are significantly different.
* Entrepreneurial Contribution to
Economic Development
 Utilization of local resources.
 Promotion of Technology
 Capital Formation
 Creation of Employment Opportunities
 Export Promotion
 Favorable Balance of Payment
 Improved Marketing of Locally Produced Products
 Improved Infrastructure
 Promotion of Talent and Hobbies
 Improved Gross Domestic Products
 Self Reliance