ENTREPRENEURSHIP

What is entrepreneurship ?
According to A Schumpeter(economist) The entrepreneurship is essentially a creative activity or it is an innovative function. Entrepreneurship(evolved thing) means different things to different people. Yet its very etymology derived from the French entreprendre which literally means, to undertake indicates the minimum characteristics of an entrepreneur

 Entrepreneurship is more than simply starting a business.

The definition of entrepreneurship is a process through which individuals identify opportunities allocate resources create value Therefore, an entrepreneur is "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods"

From the perspective of economic functions,

Three crucial characteristics of entrepreneurial activity are: risk taking, innovation and venturing into new business activities for prot.

What is entrepreneurship according to different people

the ability to create and build something from practically nothing (J.A. Timmons, The Entrepreneurial Mind, 1989)
the shifting of economic resources out of an area of lower productivity into one of higher productivity and yield (The Economist). the creation of new economic opportunities (Wennekers and Thurik, Linking Entrepreneurship and Economic Growth, 1999).

Drucker on entrepreneurship
Peter F. Drucker opined that an entrepreneur is one who always searches for change, responds to it and exploit it as an opportunity. He laid emphasis on two important factors-innovation and resource-that led to emergence of entrepreneurship. According to him innovation is the real hub of entrepreneurship which creates resource(a thing is regarded as resource when its economic value is recognized). Ex- mineral oil was considered useless until the discovery of its use.

According to Drucker, successful entrepreneurship involves the following things Value and satisfaction obtained from resource by the consumer are increased New values are created Material is converted into a resource or exiting resources are combined in a new or more productive configuration Entrepreneurship is the practice which has a knowledge base. Entrepreneurship is not confined to big businesses and economic institutions, it is equally important to small business and non-economic institutions Entrepreneurship behavior rather than personality trait is more important to enhance entrepreneurship The foundation of entrepreneurship lies in concept and theory rather than in intuition.

Entrepreneur an agent of change

A constantly innovating entrepreneur could generate the conditions for: increasing opportunities for employment additional wealth creation introduction and dissemination of new methods and technology overall economic growth

Terminology used in the study of entrepreneurship

Acquisition, Advertising, Angel Investors, Appraisal Barter, Business Incubator, Business Valuation Consumer Direct Marketing, Copyright, Corporation Downline, Due Diligence Entrepreneur General Partnership Home Based Business Independent Contractor, Intrapreneur Joint Venture Limited Liability Company (LLC) Limited Partnership Line of Credit Marketing, Merger, Multi-level Marketing (MLM) Network Marketing, Networking Outsourcing Partnership, Patent, Planning, Public Relations (PR) Sales, Score, Small Business Administration (SBA), Sole Proprietorship, Strategic Alliance Trademark Venture Capital (VC)

Entrepreneurship depends on constellation of factors

Individual level motivations, experiences, socio-cultural (including family) traditions, availability of relevant skills and attitudes.

Societal level ---- educational opportunities, supporting nancial institutions.

National level --- access to credit, existence of commercial trading centres, supporting infrastructure including trade routes with efcient transport and communication facilities, macro-economic environment and overall political stability.

Entrepreneurship pyramid in INDIA

Level 1: Agriculture and other activities: Crop production, Plantation, Forestry, Livestock, Fishing, Mining and Quarrying.

Level 2: Trading services: Wholesale and retail trade; Hotels and restaurants.
Level 3: Old economy or traditional sectors: Manufacturing, Electricity, Gas and Water supply. Level 4: Emerging sectors (including knowledge intensive sectors): IT, Finance, Insurance and Business services, Construction, Community, Social & Personal Services, Supply Chain, Transport-Storage-Communications etc.

Why entrepreneurship
To improve backwardness of the people Economic development of the region To analysis resource utilization Proper utilization of human potentiality Special attention to take up new activities To create self-employment and generation of employment opportunity Eradication of regional imbalances Better economic gain

Who is an entrepreneur
He is a person who develops and owns his own enterprise He is a moderate risk taker and works under uncertainty for achieving the goal He is innovative He peruses the deviant pursuits Reflects strong urge to be independent. Persistently tries to do something better. Dissatisfied with routine activities. Prepared to withstand the hard life. Determined but patient Exhibits sense of leadership Also exhibits sense of competitiveness Takes personal responsibility Oriented towards the future. Tends to persist in the face to adversity Convert a situation into opportunity

PROBLEMS FACED BY ENTREPRENEURS

Characteristics of unique entrepreneur

Need for achievement High need for power Independence Propensity to take risk Personal modernity Able to give support Estabilish Business enterprise Leadership

Theories related to Entrepreneurship

Sociological theories Economic theories

Cultural theories
Psychological theories

What is leadership according to Dr. A.P.J Abdul Kalam

1) Leader must have a mission. 2) Leader must be able to travel in an unexplored path. 3) Leader must know how to manage success but most importantly the failures. 4) Leader must have a courage to take a decision 5) Leader must have a mobility in management.( leader must lead with integrity and succeed with integrity).

Further study will cover

The Entrepreneurial Theories in detail. Leadership traits. Case studies related to leadership and entrepreneurship.

Thank you

THEORIES OF ENTREPRENEURSHIP AND ENTREPRENEURIAL MOTIVATION

Economic, sociological and psychological Entrepreneurship Innovation theory Theory of Achievement Motivation Motivation theory by McClelland (Acquired Needs theory)

The Kakinada Experiment

Motivating factors for entrepreneur- Internal and external

ECONOMIC THEORY
Entrepreneurship and economic growth take place when the economic conditions are favourable Economic incentives are the main motivators for entrepreneurial activities Economic incentives include taxation policy, industrial policy, sources of finance and raw material, infrastructure availability, investment and marketing opportunities, access to information about market conditions, technology etc.

SOCIOLOGICAL THEORIES
Entrepreneurship is likely to get a boost in a particular social culture. Societys values, religious beliefs, customs, taboos influence the behaviour of individuals in a society. The entrepreneur is a role performer according to the role expectations by the society.

PSYCHOLOGICAL THEORY
Entrepreneurship gets a boost when society has sufficient supply of individuals with necessary psychological characteristics. The psychological characteristics include need for high achievement, a vision or foresight, ability to face opposition.

These characteristics are formed during the individuals upbringing which stress on standards of excellence, self reliance and low father dominance.

ENTREPRENEURSHIP INNOVATION THEORY

Theory by Joseph Schumpeter who believes that entrepreneur helps the process of development in an economy. He says that an entrepreneur is the one who is innovative, creative and has a foresight. According to him, innovation occurs when the entrepreneur Introduces a new product Introduces a new production method Opens up a new market Finds out a new source of raw material supply Introduces new organisation in any industry

 The theory emphasises on innovation, ignoring the risk taking and organising abilities of an entrepreneur