Ed Unit 1

ENTREPRENEURSHIP
Big Wins Require Big Risks :Bill Gates

UNIT1
Slides By
Supreet Juneja Wahee
Learning Objectives
Describe the meaning of the term entrepreneur and discuss the
evolution and development of the concept
Highlight the characteristics of successful entrepreneur
Internal and External Factors
Describe the Functions performed by an entrepreneur
Entrepreneurial motivation and Barriers
Classification of Entrepreneurship
Theory of Entrepreneurship
Define Intrapreneur and distinguish between an Manger and
Intraprenuer
MBA IV :Entrepreneurship Development
Slide 2
Introduction to Entrepreneurship
What is Entrepreneurship?
Entrepreneurship is the process of creating something new of
value by devoting (giving) the necessary time and effort.
By accepting and acknowledging the necessary financial,
psychological, and social risks, and
Finally receiving the resulting rewards be it monetary and
personal satisfaction and freedom to do what you want.
Robert D.Hisrich, M. Peters & D.A Shepherd
Slide 3
Definitions by Authors:
J.B. Say: one who combines the land of one, labour of
another & capital of yet another & thus produces a
product. By selling product pays rent, wages and
interest.
Peter F Ducker: One who considers the changes that
take place in market as an opportunity to do business.
Innovation is his tool.
Joseph Schwnpeter: Individuals who introduce
something new in the market or economy.
Slide 4
Entrepreneurship
Entrepreneurship is the creation of new business
Opportunity recognition or creation (entrepreneurial
discovery is the intersection of a need and a solution)
Assembling resources to pursue the opportunity,
including capital (typically associated with a business
plan)
Managing activities that bring a new venture into
existence
Some ventures are complete start-ups
Other ventures occur within existing firms
Organizational entrepreneurship or intrapraneurshi p
Slide 5
Introduction to Entrepreneurship
Simple Definition
Process of creating something new and assuming the risks
and rewards.
Robert D.Hisrich, M.P.Peters &
D.A.Shepherd
Slide 6
Who is an Entrepreneur?
He
or she is an individual who actively form or lead their

own business and nurture them for growth and prosperity.
UiTM Entrepreneurship Study Group
person who creates and manages change by the

recognition of opportunities (needs, wants, opportunities,
problems, and challenges) and develops people and manages
resources to take advantage of the resources to take the
opportunity and creates a venture (profitable business).
Eston Kimani, MIT
Slide 7
Entrepreneur
The word entrepreneur is derived from the French word enterprendre it means
to undertake and literally translated means between-taker or go-between.
Entrepreneur is an individual who takes risk and starts something new.
Development of entrepreneurship
- Earliest period.
- Middle Ages.
- 17th Century.
- 18th Century.
- 19th and 20th centuries.
Slide 8
Entrepreneurs
Opportunists
Recognize and take advantage of

opportunities
Resourceful
Creative
Visionary
Hardworking
Optimistic
Independent Thinkers
Excellent Leaders
Dreamers
Slide 9
Why Be an Entrepreneur?
The biggest reward of becoming an entrepreneur is the
The biggest reward of becoming an entrepreneur is the
personal satisfaction that comes from having the freedom to
personal satisfaction that comes from having the freedom to
make your own business decisions and then act on them.
make your own business decisions and then act on them.
Making Your Own Rules. When you own a
business, you get to be your own boss.

Doing Work You Enjoy. Since the majority of
most peoples lives is spent working, why not
spend that time doing something you enjoy?
Creating Greater Wealth. Theres no limit to
what an entrepreneur can make.
Helping Your Community. Being an
entrepreneur lets you make your community and
world a better place.
Entrepreneurship:OwningYourFuture,11 ed.
MBA
IV :Entrepreneurship Development
th
SteveMariotti
2010PearsonHigherEducation,
UpperSaddleRiver,NJ07458.AllRightsReserved.
Slide
1010
Risks of Being an
Entrepreneur
Potential Business Failure. Being fully
Potential Business Failure. Being fully
responsible means the success or failure of your

responsible means the success or failure of your
business rests on you.
business rests on you.
Unexpected Obstacles. Problems can happen
Unexpected Obstacles. Problems can happen
that you dont expect.
that you dont expect.
Financial Insecurity. Many new businesses
Financial Insecurity. Many new businesses
dont make much money in the beginning, so
dont make much money in the beginning, so
you may not always be able to pay yourself.
you may not always be able to pay yourself.
Long Hours and Hard Work. Its not unusual
Long Hours and Hard Work. Its not unusual
for entrepreneurs to work a lot of extra hours to
for entrepreneurs to work a lot of extra hours to
make their businesses successful. This is
make their businesses successful. This is
especially true during the initial start-up
especially true during the initial start-up
process.
process.
MBA
th
SteveMariotti
Slide
1111
What are the different

outcomes of engaging in
entrepreneurship?
Innovation or newness product or service.
Organizing resources finance, people, physical
and
information resource.
Creating new product or service.
Generating wealth
Taking risk in a business venture.
Prepared to face uncertainty.
Create job opportunity
Increase the abundance of wealth generation for the nation.
Slide 12
Characteristics of Successful
Entrepreneurs
Self-assessmentevaluating your strengths and weaknesses
Self-assessmentevaluating your strengths and weaknesses
is an important part of becoming an entrepreneur.
is an important part of becoming an entrepreneur.
An aptitude is a natural ability to do a particular

type of work or activity well.
An attitude is a way of viewing or thinking about
something that affects how you feel about it.
Entrepreneurs tend to be people with positive
attitudes.
MBA
th
SteveMariotti
Slide
1313
Characteristics of Successful
Entrepreneurs
Personal Characterisitics
Personal Characterisitics
Courage
Courage
Creativity
Creativity
Curiosity
Curiosity
Determination
Determination
Discipline
Discipline
Empathy
Empathy
Enthusiasm
Enthusiasm
Flexibility
Flexibility
Honesty
Honesty
Patience
Patience
Responsibility
Responsibility
th

SteveMariotti
Skills
A skill is an ability thats
learned through training
and practice.
Business Skill
Communication Skill
Computer Skill
Decision-Making and
Problem-Solving Skills
Mathematical Skill
Organizational Skill
People Skills
Slide
1414
Why Study
Entrepreneurship?
There are two primary reasons why studying
There are two primary reasons why studying
entrepreneurship makes sense: you learn to think like
entrepreneurship makes sense: you learn to think like
an entrepreneur and you develop a vision for your life.
an entrepreneur and you develop a vision for your life.
MBA
th
SteveMariotti
Slide
1515
Myths of Entrepreneurship
They are doers not thinkers
They are born not made
They are always inventors
They are academic and social misfits
They are extreme risk takers
All entrepreneurs need is money
Entrepreneurs must fit theProfile
They need luck
Slide 16
Benefits of Entrepreneurship
Opportunity to create your own destiny

Opportunity to make a Difference
Opportunity to reach your full potential.
Opportunity to reap extraordinary (luar biasa) profits.
Societal Responsibility and Recognition.
Opportunity to engage in work of their choice
Slide 17
Main features of entrepreneurship

An economic activity
Slide 18
Entrepreneur and Entrepreneurship

Entrepreneur
Entrepreneurship
Person
Process
Visualizer
Vision
Organizer
Organization
Decision maker
Decision Making
Innovator
Innovation
Risk bearer
Risk bearing
Motivator
Motivation
Creator
Creation
Leader
Leadership
Manager
Management
Initiator
Initiation
Planner
Planning
Technician
Technology
Communicator
Communication
Administrator
Administration
Slide 19
Entrepreneurial Motivation Factor

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Educational background
Occupational Experience
Desire to work independently
Desire to branch out to manufacturing
Family background
Assistance from Government
Assistance from financial institution
Availability of technology/raw material
Profit margin
Desire for taking personal responsibility
Anticipation of future possibilities
Success stories of entrepreneurs
To gain social prestige
Heavy Demand
Technical knowledge
Slide 20
Functions of Entrepreneur
Entrepreneur is the person who takes the initiative of establishing a business
enterprise. He is also designated as the captain of the industry, business
organizer, and the business manager. An entrepreneur is responsible for the
performance areas of:
PRODUCTION
HUMAN RESOURCE
ENTERPRENEUR
TECHNOLOGY
FINANCE
SALES/MARKETING
Innovation.
- The unexpected success or failure or any unexpected outside event.
- Innovation based on process need.
- Changes in industry and market structure.
- Demographics changes.
- New knowledge.
Risk and uncertainty bearing.
Slide 22
Organization building.
- Perception of market opportunities.
- Gaining command over scarce resources.
- Purchasing inputs.
- Marketing the products.
- Dealing with bureaucrats.
- Managing human relations within the firm.
- Managing customer and supplier relations.
- Managing finance.
- Managing production.
- Acquiring and overseeing assembly of the factory.
- Upgrading process and product.
- Introducing new production techniques and products .
Slide 23
ENTREPRENEURIAL MOTIVATION:
INTERNAL FACTORS
Strong desire to do something new.
To be independent in Life.
Making the maximum use of technical/professional
knowledge.
Occupational experience/background.
Passionate about particular activity.
Dissatisfaction with present job.
To attain self-satisfaction.
Slide 24
EXTERNAL FACTORS:
Utilizing Government grants & subsidiaries.

To continue ancestor business.
Financial assistance from Institutions.
Availability of resources.
Encouragement from big business houses.
Availability of sick units/ easy financial terms.
Encouragement from family members.
Slide 25
Types of an entrepreneurs
Innovative Entrepreneur ( new
things)
Adoptive or Imitative (adopted
by others) Entrepreneur
Fabian
Entrepreneur(when
failure to do so result in heavy

loss)
Drone Entrepreneur (traditional
methods of production)
Slide 26
Type of Entrepreneur
Classification according to type of business.
Business Entrepreneurs.
Trading Entrepreneurs.
Industrial Entrepreneurs.
Corporate Entrepreneurs.
Agricultural Entrepreneurs.
Classification according to use of technology.
Technical entrepreneur.
Professional entrepreneur.
Non-technical entrepreneur.
High-tech entrepreneur.
Slide 27
TYPES OF ENTREPRENEURS
1)ACCORDING TO THE TYPE OF BUSINESS
i)Business entrepreneurs:-who start business units after
developing ideas for new products/services.
ii)Trading entrepreneurs :-who undertake buying & selling of
goods, but not engage in manufacturing.
iii)corporate entrepreneurs:-who establish and manage corporate
form of organization which have separate legal existence.
iv)Agricultural entrepreneurs:- who undertake activities like raising
and marketing of crops, fertilizers and other allied activities.
Slide 28
2)ON THE BASIS OF STAGES OF DEVELOPMENT
i)First generation entrepreneurs:-who do not

possess any entrepreneurial background. They
start industry by their own innovative skills.
ii)Second generation entrepreneurs:-who inherit
the family business and pass to next generation.
iii)Classical entrepreneurs:-who aims to
maximize his economic returns at a level
consistent with the survival of the unit with or
without an element of growth.
Slide 29
3)ON THE BASIS OF MOTIVATION
i)Pure entrepreneurs:-who are basically motivated to

become entrepreneurs for their personal satisfaction,
ego etc..
ii)Induced entrepreneurs:- who are induced to take up
entrepreneurial role by the assistance and policy of
government including incentives, subsidies etc.
Slide 30
4) ON THE BASIS OF TECHNOLOGY

i)Technical entrepreneurs:- who are task oriented and
craftsman type. They prefer doing to thinking.
ii)Non-technical entrepreneurs:- who are not
concerned with technical side, but rather with
marketing and promotion.
iii)Professional entrepreneurs:- who start a business
unit, but later sell the running business and start a new
unit later.
Slide 31
5)ON THE BASIS OF CAPITAL OWNERSHIP
i)Private entrepreneurs:- individual or group set up

enterprise, arrange finance, share risk etc..
ii)State entrepreneurs:- means the trading or industrial
venture undertaken by the state or the government
itself.
iii)Joint entrepreneurs:- the combination of private and
government entrepreneurs.
Slide 32
OTHER CLASSIFICATIONS
6)ACCORDING TO GENDER AND AGE
i)Man entrepreneurs
ii)Women entrepreneurs
iii)Young entrepreneurs
iv)Old entrepreneurs
v)Middle-aged entrepreneurs
7)ACCORDING TO AREA
i)Urban entrepreneurs
ii)Rural entrepreneurs
Slide 33
8)ACCORDING TO SCALE
i)Large scale entrepreneurs
ii)Medium scale entrepreneurs
iii)Small scale entrepreneurs
iv)Tiny scale entrepreneurs
9)OTHERS
i)Spiritual Entrepreneur: is one who offers service relating to or affecting
the human spirit, body, mind and emotions a holistic approach to
happiness and overall wellness.
ii) Social entrepreneurs : a person who establishes an enterprise with the
aim of solving social problems or effecting social change
iii)Edupreneurs :can be defined as educational entrepreneurs who plan,
open and successfully operate educational services
Slide 34
Type of Entrepreneur
Classification according to motivation of entrepreneur.
Pure entrepreneur.
Induced entrepreneur.
Motivated entrepreneur.
Spontaneous entrepreneur.
Classification according to growth.
Growth entrepreneur.
Super growth entrepreneur.
Classification according to stages of development.
First generation entrepreneur.
Modern entrepreneur.
Classical entrepreneur.
Slide 35
Types of Entrepreneurs
Classification based on the Timing of Venture Creation
Early starters- starts with little or no full time work experience
like Suhas Gopinath at the age of 14.
Experienced- who spent a few years working in the family biz
or in some other large company. For eg. Narayan Murthy when
he was 35 years old.
Mature Who were very senior professionals, some at the level
of CEO. Qit their jobs & probably because they have very high
confidence in their abilities. For eg. Ashok Soota & Subroto
Bagchi who quit wipro to start Mindtree.
Slide 36
Based on Socio-Cultural Variable

First Generation Entrepreneurs No family biz & only fom
salaried family. For eg. Dhirubhai Ambani to Narayan Murthy
Entrepreneurs from Business Families Marwadi, Gujrati,
Parsee. So that TATAs, BIRLA, Singhanias are all from such
business communities.
Women Entrepreneurs recent phenomenon in India, For eg,
Kiaran Majumdar Shaw, Shahnaz Hussain.
Slide 37
Based on Entrepreneurial Activity

Novice who starts first venture but differ from early starter
as in this vovice can also be a 50 year old with over 25 years
of exp in the industry.. For eg. Vishamber Saran from Visa
Steel
Serial Entrepreneur who is devoted to one venture at a
time but ultimately starts many. Rakesh Mathur an alumus if
IIT B, has started a firm called Webaroo which enables easy
oofline surfing of the net. Some graet ventures like Armedia,
Purple Yogi & Junglee, sells off his ventures before moving
onto the next one. Junglee has been sold to Amazon.
Slide 38
THE ENTREPRENEURSHIP PROCESS

(Capturing opportunity without owning resources)
ACQUIRING
RESOURCES
SPOTTING
OPPORTUNITY
MANAGING
VENTURE
IDENTIFYING
RESOURCES
Slide 39
Stages of Entrepreneurial Process

Conducting Opportunity Analysis.
Developing the plan and setting up the company.
Acquiring financial partners and sources of funding.
Determining resources required and implementing
the plan.
Scaling and harvesting the venture.
Slide 40
Entrepreneurial Process
1. Identify and
evaluate the
opportunity
3. Determine and
attract resources
required
Opportunity
2. Develop Business
Plan
Entrepreneur
Resources
4. Lead and manage

resulting enterprise
Organisation
Slide 41
ENTREPRENEURSHIP
INTRAPRENEURSHIP
Entrepreneurship: is the tendency of a

person to organize his own business
and run it profitably, exploiting
qualities of leadership ,decisionmaking and managerial calibre.
According to John K. Howard Stevenson
Entrepreneurship is the attempt to
create value through recognition of
business opportunity, the management
of risk-taking appropriate to the
opportunity,
and
through
the
communicative and management skills
to mobilize human ,financial and
material resources.
Intrapreneurship is the practice
of entrepreneurship by employees
within an organization.
An intrapreneur is an individual
employed by an organization for
remuneration, which is based on
the financial success of the unit he
is responsible for.
Slide 42
Comparison of Traditional Managers, Entrepreneur

And Intrapreneur
Primary motive
Risk
Activity
Skills
Attitude towards risk
.Decision
Operations
Attitude towards courage and destiny
Slide 43

And Intrapreneur
TRADITIONAL MANAGER
ENTRAPRENEUR
INTRAPRENEUR
1.Primary motive
Wants promotion and other traditional

corporate rewards power motivated,
Wants promotion and other

traditional corporate rewards
power motivated,
Wants freedom and access to

corporate resources, goal oriented
and self motivated, but also
responds to corporate rewards and
recognition.
2.Risk
Careful, completely avoid risk activities such Moderate risk taker

as risk projects
3.Activity
Delegates and supervises more than direct

involvement
Professional management ; often business
school trained; uses abstract analytical tools,
people-management and political skills
Direct involvement
,Cautions,
Likes moderate risk;

invests heavily but
expects to succeed
4. Skills
5. Attitude towards
risk
Knows business intimately;

more business acumen then
managerial or political skills;
often technically trained if in
technical business; may have
had profit and loss
responsibility in the company,
Not fully risk taker, he tends to

hide risky projects until there are
on lower level of risk
Direct involvement more than
delegation
Professional management ; often
business school trained; uses
abstract analytical tools, peoplemanagement and political skills
along with business acumen
Like moderate risks;

generally not afraid of
being fired, so sees little
personal risk
Slide 44

And Intrapreneur
TRADITIONAL MANAGER
ENTRAPRENEUR
6.Decision
Usually agrees with those in upper Follow dreams with

management
decisions
7.Operation
Involves in functional operations
Operates from inside

or outside depending
on firms size
8. Attitude Sees others being in
Self confident,
towards
charge of his or her
optimistic and
courage
destiny; can be forceful and courageous,
and destiny ambitious but may be
fearful of others ability to
do him or her in,
INTRAPRENEUR
Follow dream but able to

get others to agree to help
in achieving the dream
Operation from within the
organization
Self confident and
courageous; many
are cynical about the
system but
optimistic about their
ability to outwit it.
Slide 45
Theories Of Entrepreneurship
Slide 46
Slide 47
Slide 48
Austrian economist Joseph Schumpeter 's definition of

entrepreneurship placed an emphasis on innovation, such as:
new products
new production methods
new markets
new forms of organization
Wealth is created when such innovation results in new
demand. From this viewpoint, one can define the function of
the entrepreneur as one of combining various input factors in
an innovative manner to generate value to the customer with
the hope that this value will exceed the cost of the input
factors, thus generating superior returns that result in the
creation of wealth.
Slide 49
Slide 50
Slide 51
Barriers to Entrepreneurship
Barriers
Economic
to Entrepreneurship
Personal
Economic Barriers
Capital: It helps mobilize other resources like
men, materials and machines.
Labour: quality matters rather than quantity.
Raw material: In Its absence no enterprise can
be established
Slide 53
Environmental Non economic

barrier
Cultural block
Practical values: should initiate innovation and
creativity.
Respect for entrepreneurs
Social status
Traditionalism: Binding tradition represent a
substantial block to change and progress
Emotional block: Fear of failure or fear of
making mistakes
Slide 54
Personal barriers to
Entrepreneurship
Lack of sustained motivation
Difficulty with ambiguity: To be able to
tolerate chaos and deal with
uncertainties
Inability to dream
Impatience in solving problems
Lack of clear perception: Failure to sees
an opportunity
Slide 55
Thank You
Slide 56
ADDITIONAL READING
Slide 57
Entrepreneurship and Economic Development

Entrepreneurship helps in the process of economic development in the
following ways :
Employment Generation :
Growing unemployment particularly educated unemployment is the
problem of the nation.
The available employment opportunities can cater only 5 to 10 % of
the unemployed.
Entrepreneurs generate employment both directly
and indirectly.
Directly, self employment as an entrepreneur and
indirectly by starting many industrial units they offer jobs to
millions.
Thus entrepreneurship is the best way to fight the evil of
unemployment.
Slide 58
National Income :
National Income consist of the goods and services produced in the
country and imported.
The goods and services produced are for consumption within the
country as well as to meet the demand of exports.
The domestic demand increases with increase in population and
increase in standard of living.
The export demand also increases to meet the needs of growing
imports due to various reasons.
An increasing number of entrepreneurism are required to meet this
increasing demand for goods and services.
Thus entrepreneurship increases the national income.
Slide 59
Balanced Regional Development :

The growth of Industry and business leads to a lot of Public benefits like
transport facilities, health, education, entertainment etc.
When the industries are concentrated in selected cities, development

gets limited to these cities. A rapid development .
When the new entrepreneurers grow at a faster rate, in view of

increasing competition in and around cities, they are forced to set up
their enterprises in the smaller towns away from big cities.
This helps in the development of backward regions.
Slide 60
Dispersal of economic power :

Industrial development normally may lead to concentration of economic powers in a few
hands.
This concentration of power in a few hands has its own evils in the form of monopolies.
Developing a large number of entrepreneurers helps in dispersing the economic power
amongst the population.
Thus it helps in weakening the harmful effects of monopoly.
Entrepreneurers play a vital role in achieving a higher rate of economic growth.
Entrepreneurers are able to produce goods at lower cost and supply quality goods at lower
price to the community according to their requirements.
When the price of the commodities decreases the consumers get the power to buy more
goods for their satisfaction. In this way they can increase the standard of living of the
people.
Slide 61
Creating innovation :
An entrepreneur is a person who always look for changes. apart from combining the
factors of production, he also introduces new ideas and new combination of factors.
He always try to introduce newer and newer technique of production of goods and
services.
An entrepreneur brings economic development through innovation.
Entrepreneurship also helps in increasing productivity and capital formation of a nation.
In short, the development of the entrepreneurship is inevitable in the economic
development of the country.
The Role played by the entrepreneurship development can be expressed in the following
words :
" Economic development is the effect for which
entrepreneurship is a cause "
Slide 62
Entrepreneurship vs. Small Business

Many people use the terms "entrepreneur" and "small business owner" synonymously. While they may
have much in common, there are significant differences between the entrepreneurial venture and
the small business. Entrepreneurial ventures differ from small businesses in these ways:
Amount of wealth creation - rather than simply generating an income stream that replaces
traditional employment, a successful entrepreneurial venture creates substantial wealth, typically in
excess of several million dollars of profit.
Speed of wealth creation - while a successful small business can generate several million dollars of
profit over a lifetime, entrepreneurial wealth creation often is rapid; for example, within 5 years.
Risk - the risk of an entrepreneurial venture must be high; otherwise, with the incentive of sure
profits many entrepreneurs would be pursuing the idea and the opportunity no longer would exist.
Innovation - entrepreneurship often involves substantial innovation beyond what a small business
might exhibit. This innovation gives the venture the competitive advantage that results in wealth
creation. The innovation may be in the product or service itself, or in the business processes used
to deliver it.
Slide 63
QUALITIES OF ENTREPRENUERS:
Need for high achievementEntrepreneurs are driven to succeed and expand their business. They
see the bigger picture and are often very ambitious. Entrepreneurs set
massive goals for themselves and stay committed to achieving them
regardless of the obstacles that get in the way.
Highly Optimistic:
Successful entrepreneurs have a healthy opinion of themselves and
often have a strong and assertive personality. They are focused and
determined to achieve their goals and believe completely in their ability
to achieve them.
Search for New Ideas and Innovation

All entrepreneurs have a passionate desire to do things better and to
Slide 64
improve
their products or service. They
are constantly looking for ways
H.R. ability: maintain good relations with other people (employee, vendors,
customers, bankers).
. Openness to Change:
If something is not working for them they simply change. Entrepreneurs
know the importance of keeping on top of their industry and the only way to
being number one is to evolve and change with the times. They're up to date
with the latest technology or service techniques and are always ready to
change if they see a new opportunity arise.
They are also good managers, pro-active, realistic, have comprehensive
awareness & conceptual ability.
Slide 65
OTHER PERSONAL TRAITS:

Mental ability: Intelligent person.
Organising ability: Good organisation.
Hard work: Ready to work for long hours.
Discipline: highly disciplined- everything to be in order for them.
Clear objectives: Regarding nature of business & products to be
produced.
Risk taking : They like challenges.
Adaptability: highly flexible- adapt themselves for any conditions.
Emotional stability: have considerable amount of self-control- business
pressure can be handled.
Positive attitude: always think positively, they do not leave hopes even
under difficult conditions
Slide 66
Skills of an effective entrepreneur:

Strategic skills:
An entrepreneur must have a vision for the future. He/she must be able to
see the bigger picture and know where he/she is going with everything.
Setting clear objectives and effective strategies are essential for running a
business successfully.
Management skills:
Planning
Organizing
Leading (activating)
Control
Slide 67
Human relations skills:

The entrepreneur needs to have the ability
to manage people as well. He/she has to build
good relationships with all workers and needs
to know who to employ in his/her business.
Financial skills:
The success of a business is measured by the profit it
makes. It is essential that the entrepreneur has knowledge
about managing income and costs. The long-term future
success of the business is also determined by the type of
investments the business makes and how successful the
entrepreneur manages those investments .
Marketing skills:
The challenge in marketing is that the entrepreneur must
know how to promote and advertise his/her business and
products. It is essential for him/her to have good knowledge
about the market and what things the customers want and
prefer.
MBA IV :Entrepreneurship
Development
Slide 68
ENTREPRENEURSHIP IN INDIA
Slide 69
The Builder of Indian Industry &

Entrepreneurship
J R D
TATA
(founder of TATA group of company)
Slide 70
N.R.Narayana Murthy
An Indian IT chief who's really made it big without dropping his

ethical precepts by the wayside is Nagawara Ramarao Narayana
Murthy, Chairman of Infosys.
The Infosys legend began in 1981 when Narayana Murthy dreamt
of forming his own company, along with six friends. There was a
minor hitch, though-he didn't have any seed money. Luckly, like
many Indian women who save secretly without their husband's
knowledge, his wife Sudha-then an engineer with Tatas-had saved
Rs 10,000. This was Murthy's first big break.The decade until 1991
was a tough period when the couple lived in a one-room house.
The second break came in 1991 when Indian doors to liberalization
Slide 71
were
flung open Murthy grabbed
the opportunity with both
Dhirubhai Ambani alias

Dhirajlal Hirachand
Ambani
Mukesh and Anil Ambani
Dhirubhai Ambani started his entrepreneurial career in India in 1958 with Rs 50,000
By setting up a textile trading company. Thereof Assisted by his two sons, Mukesh and
Anil, Dhiru Bhai Ambani built India's largest private sector company, Reliance India
Limited, from a scratch. Over time his business has diversified into a core
specialization in petrochemicals with additional interests in telecommunications,
information technology, energy, power, retail, textiles, infrastructure services,
capital
markets, and logistics .
Slide 72
Role of entrepreneurship in India:
India as an underdeveloped country aims at

decentralization of industrial sector to mitigate the regional
imbalance in order to contribute growth prospects in
economic development, With context to role of
entrepreneurship in India, it plays following role:
It promotes capital formation by mobilizing the idle
savings of public.
It provide large scale employment, Thus it helps in reducing
the unemployment problem in the country i.e root of all
socio-economic problem.
It helps reducing the concentration of economic power.
It stimulates the equitable redistribution of wealth , income
& even political power in interest of the country.
Slide 73
It encourages effective resource mobilization of capital & skill which

might otherwise remain unutilized & idle.
It further promotes countrys export trade i.e. an important ingredient to
economic development.
We can conclude that entrepreneurship serves as a catalyst. On the
whole the role of entrepreneurship in economic development of a country
can best be put as
An economy is the effect for

which entrepreneurship Is the
cause.
Slide 74
Suggestions:
Promoting Entrepreneurship :
In India, where over 30 crores people are living
below the poverty line, it is simply impossible for
any government to provide means of livelihood
to everyone. Such situations surely demand for
a continuous effort from the society, where the
people are encouraged to come up with their
entrepreneurial initiative.
Slide 75
Why Entrepreneurship?
1. Develop financial independence.
2.
3.
4.
5.
6.
7.
Set your own schedule.

Bring your ideas to life.
Have creative freedom.
Release the fear of being fired.
Finally be challenged in a good way.
Build something that will last a lifetime;
create a legacy.
8. Work from home, your own commercial
office space or anywhere in the world.
Slide 76
Why Entrepreneurship?
9. Gain personal fulfillment by pursuing your passion.
10. Impact the lives of many through social entrepreneurship.
11. Hire employees and contribute to economic growth.
12. Call the shots and become a leader.
13. Become involved in all aspects of a companys operations.
14. Put a personal touch back into doing business.
15. Improve upon old ideas.
16. Celebrate massive accomplishment.
17. Provide a better quality of life for you and those you care about.
18. Build a business as an investment for yourself and future.
19. Design the lifestyle that best suits you.
Slide 77
Related Major Skills
Managing the business on a day-to-day basis

Advertising, selling, and distributing the product or
service (marketing)
Accounting or keeping financial records for the
business
Hiring personnel to assist with the business
Production of finished goods or services
Be non-conformist
Motivated by achievement
Have a preference for innovation
Possess high uncertainty tolerance
Slide 78
Characteristics of an Entrepreneur
The basic characteristics of an entrepreneur are:
Desire for responsibility
Preference for moderate risk
Confidence in their ability to succeed
High level of energy
Desire for immediate feedback
Future orientation
Skill at organizing
Value of achievement over money
Flexibility
High degree of commitment
Slide 79
Qualities of an entrepreneur
Leadership
Risk bearer
Motivator
Rational Decision-maker
Planner
Self confidence
Self driven
Professionalism
Commitment
Slide 80
Economic Theory
Identified by mark casson.
Demand for entrepreneurship stems from need to adjust to
Change.
But supply of entrepreneurship is limited.
Scarcity of requisite qualities.
If available identifying them becomes difficult.
Leibensteins X-efficiency Theory
Has been applied to analyze role of entrepreneur.
X-efficiency is degree of inefficiency in use of resources.
Theory identifies 2 main roles of entrepreneur
Improve flow of information.
Gap filling.
Slide 81
DYNAMIC ENTREPRENEURSHIP THEORY
Advocated by schumpeter.
Considers entrepreneurship as catalyst that disrupts the
Stationary circular flow of the economy.
Initiates and sustains process of development i.e. New Combination.
HARVARD SCHOOL THEORY
States entrepreneurship as any purposeful activity.
It initiates, maintains or develops a profit oriented business.
Can be achieved by balancing internal factors with external
Factors
THEORY OF PERSONAL RESOURCEFULNESS
Personal resourcefulness means
Belief in ones own capability
Initiating process ,self regulation
Mediated internal feelings and emotions, advocated by
Kanungo.
Slide 82

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ENTREPRENEURSHIP

Big Wins Require Big Risks :Bill Gates

Supreet Juneja Wahee

MBA IV :Entrepreneurship Development

Supreet Juneja Wahee

MBA IV :Entrepreneurship Development

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Supreet Juneja Wahee

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Supreet Juneja Wahee

or she is an individual who actively form or lead their

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Recognize and take advantage of

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An aptitude is a natural ability to do a particular

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Opportunity to create your own destiny

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Utilizing Government grants & subsidiaries.

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