Chapter 01

Entrepreneurship and the

entrepreneurial mind set

What is
entrepreneurship?
The word derived from French word
entreprendre, means the individuals
who were undertakers

Practical
history

TAX ENTREPRENDRE (14TH

CENTRY)

What is entrepreneurship?
NAME

YEA
DEFINITION
R
Richard
175 Buy at a certain price and sell at an
Cantillon
5
uncertain price, therefore assuming
risk.
Adam
177 Individual who undertook the
Smith
6
formation of an organization for
commercial purpose
John
184 Entrepreneur is a business founder
Stuart Mill 8
Carl
187 The change agent who transforms
Menger
1
resources into useful goods and
services for making industrial growth
Ronstadt
198 Entrepreneurship is the dynamic
4
process of creating incremental

The nature of entrepreneurship

Opportuni
ty

Doub
t

Knowledg
e

Actio
n

Motivatio
n

How entrepreneurs think?

1.Think structurally
2.Engage in bricolage
3.Effectuation
4.Cognitive adaptability

Successful
entrepreneur

Unsuccessful
entrepreneur

Accept a project only if it is

intrinsically viable and enjoys
ones confidence

Accept a project if it enjoys the

support of external agencies

Minimize initial investment

Invest as per experts

recommendation

Minimize borrowed funds

Borrow as much funds are

available

Learn the technology involved

in the business

Manage the technology

through paid workers

Accept partners if they are

comfortable to work with

Accept partners if they can

contribute a share of capital

Test market before

commercialization

Produce and sell without

market testing

Start small and grow steadily

Start relatively big by using

external resources

Entrepreneurial heuristics
orientation
Intrinsic orientation
Organic growth orientation (no blue
print)
Entity orientation (no property
orientation)
People orientation (no self
orientation)
Vision orientation

Entrepreneurial intentions
Means motivation (consistency) to
the entrepreneurial outcome
Depends on Entrepreneurial self efficacy- confidence
to be successful.
Perceived desirability- favorable
evaluation to the successful outcome.

Entrepreneurial background and

characteristics
Education
Age
Work history

Role models and support systems

Moral support system
Professional support system