Entrepreneurial skills

1. The word ‘Entrepreneur’ is derived from the

French word entreprendre which means to
undertake.
2. Who is an Entrepreneur?
He/She is an individual who creates new
business, bearing most of the risks and
enjoying most of the rewards.
3. Joseph Alois Schumpeter is regarded as the
father of entrepreneurship.
4. Define Entrepreneurship.
It is defined as an economic process, where
an idea is generated or an opportunity is
created, refined, developed and
implemented.
5. The National Institute for Entrepreneurship
and small business Development is a premier
organization of the Ministry of skill
Development and Entrepreneurship, govt of
India, engaged in training, consultancy and
research to promote entrepreneurship and
skill development.
Characteristics of Entrepreneurship
1. It is an economic activity done to create,
develop and maintain a profit-oriented
organization.
2. It begins with identifying an opportunity as a
potential to sell and make profit in the
market.
3. It deals with optimization in utilization of
resources.
4. It is the ability of an enterprise and an
entrepreneur to take risks.
Qualities of an entrepreneur:
a. Hardwork:
✓ A successful entrepreneurs are found to
be working anywhere between 60 to 90
hours per week, which is much higher
than 40 hours per week.
✓ They use a lot of trial and error and
keep putting in work till they succeed.
b. Willingness to take risks: In order to set out
on this new adventure, you must be
 prepared to take risk and step outside your
comfort zone.
c. Motivation: Failure happens all the time,
and what’s important is drawing out the
lessons that will help you forge ahead. So,
motivation is what is required to be
successful in business.
d. Initiative: An entrepreneur should be able
to initiate action and take advantage of an
opportunity.
e. Optimism: Part of being optimistic is about
learning from mistakes and failures and
finding alternative ways to do things.
f. Energetic:
Drive and Energy is always high in successful
entrepreneur which makes them extremely
proactive.
g. Decision making Ability: They must be
capable of making suitable and timely
decisions.
h. Self-confident:
Belief in one’s own vision and abilities and
passion for the goal makes successful
entrepreneur confident.
i. Perseverant:
It means a way of thinking that helps to
accept failure, learn from mistakes, not give
up, continuously experiment is crucial for an
entrepreneur.
Types of Entrepreneurs:
Social Entrepreneur:
➢They focus on developing solutions that
benefit the society.
➢They are also called social innovator
➢They develop, fund and implement
solutions that direct towards society,
culture and environment.
Imitating Entrepreneur:
➢They are also called copy cats.
➢They simply observe an existing
successful system and replicate in a
 manner where all the deficiencies of
original business model are addressed
and all its efficiencies are retained.
Family business Entrepreneurs:
➢A family or an individual runs a
business successfully and passes it
onto the next generation.
➢They are also called Family Business
Entrepreneur.
➢The person, who is handed over the
business is not the first generation
entrepreneur.
First Generation Entrepreneur.
➢An individual who starts their own business at
the age of 50 years without any background
are called First Generation Entrepreneur.
➢They can be of different age groups and
backgrounds.
Fabian Entrepreneurs:
➢They are very careful in approaches and
cautious in adopting any changes.
➢They try to shy away from any
innovations.Eg. Bill Gates
Industrial Entrepreneur.(Ambani)
They identify the needs of customers and
creates products or services to serve them.
Agricultural Entrepreneur.
Innovation of new technology to maximize the
yield giving birth to agricultural
entrepreneurship.
Technical Entrepreneurs.(Ratan Tata)
They use their technical expertise to innovate,
create and offer machines, tools and methods.
Non-technical Entrepreneurs.(Amazon,
Netflix,Zomato)
They create the markets for technical
entrepreneurs.
Drone Entrepreneurs.
They don’t like any change. They are considered
‘old school’. They want to create business in
their own traditional or orthodox methods.
Such people attach pride and tradition to even
outdated methods of doing business.
Service Entrepreneurs: Eg.Uber
They spot an idea and convert it into a service,
which are not available in the market.
Business Entrepreneurs: Eg. Facebook, Apple,
Microsoft, Google,Instagram.
➢They undertake business and trading
activities and are not concerned with the
manufacturing work.
➢They identify the potential of a product in a
market.
➢They stimulate demand for the product.
Professional Entrepreneurs:
They starts a business, nurtures it and once
the project reaches the self-sustainance point,
they sells the business and starts a new one
and then follows the same cycle.
IT Entrepreneurs: Eg. BYJU
The IT Entrepreneurs are confined to
innovation in the field of information
technology
Women Entrepreneurs:
Many of the women Entrepreneurs are taking
initiative in starting entrepreneurial activities
and even made it to the top.
Roles and functions of an Entrepreneur
✓ They requires imagination, creativity and
innovativeness.
✓ They have to sense the opportunity and
act on it.
 ✓ They should be able to collect information
regarding ideas, products and practices to
meet the market demand.
✓ They should have the blueprint of all
activities which is generally called
‘business plan’ or ‘project report’.
✓ The person has to market each product
and service, after ensuring appropriate
returns (profits) of the investment.
✓ He should have a good leadership.
✓ He should acts as the mediator. He needs
to handle all conflicts and get the team to
focus constantly on the goal.
✓ He should constantly strives for achieving
excellence.
✓ They tend to take risks in ways that limit
their potential losses.

Startups?
✓ A startup is “a temporary organization
designed to look for a business model that
is repeatable and scalable.
✓ It look for an attractive business model,
while companies already have such a
business model and are focused on
successfully executing it.
✓ A startup is a young company found by
one or more entrepreneurs to develop a
unique product or service and bring it to
market.
✓ They can be in the fields of technology,
health care, food, virtual reality, etc.
✓ Startups can be started with minimum
investment and rely on capital that
comes from Venture capital firm.
✓ Startup policies have been formulated
by the states. Under this scheme, new
startupsmin India can avail regulatory
and tax benefits and capital gain
exemptions.
✓ Eg for startups: Zomato,
Paytm,Meesho,Paytm etc.
 Barriers(Hurdles) to becoming an
Entrepreneur:
✓ Non Availability of Required Finance
✓ Lack of Risk Taking capacity
✓ Market Entry Regulations-Taxations,
government rules, Environmental
regulations, lending needs.
✓ Environmental barriers:
• Lack of adequate resources or
raw material
• Non-availability of skilled labour.
• Lack of machinery and other infra
structure.
• Unavailability of monetary
resources(assests in the form of
money) on time.
✓ Lack of Good Business plan.
Personal barriers.
Getting discouragement when something
goes wrong in a business.
 As an entrepreneur, one must find people,
who think and feel like the rest of the team.

Entrepreneurial attitudes:
An attitude is a way of thinking or feeling about
something. It can be positive or negative, good or
bad.
Attitude provides..
✓ The necessary motivation
✓ The drive, initiative
✓ A sense of perseverance
✓ Commitment
✓ Confidence
✓ Decisiveness
✓ Organisational skills
✓ Interpersonal skills(Team work, Motivating
others, Managing conflicts)
• All these attitudes help a person in facing
problems and decision-making.
• They can stay optimistic under tough
conditions.
Entrepreneurial competencies:
Competencies- The ability to do something well.
Entrepreneurial competencies play a key role in
success of an entrepreneur and in achievement of
entrepreneurial goals.
Decisiveness- being able to make decisions firmly
and relatively quickly rather than changing your
mind later.
Decisions should be based on policies, rules and
solving emerging problems.
Initiative: He should be ahead of others, do things
before being asked or compelled by the situation.
Interpersonal skills:
✓ It refers to an employee’s ability to work well
with others.
✓ It includes good communication skills,
interaction with others, active listening skills,
teamwork, body language, responsibility,
leadership, patience and attitude.
Perseverance:
✓ It is the ability to continue to do something
even when it is difficult.
✓ You should be committed to your goal.
✓ It enhances the goal’s value for you and
intensifies your motivation level.
Organisational skills:
It refers to the ability of making optimal use of
one’s own time, energy and resources to
achieve one’s goal. It includes….
Time management-A process of planning and
conscious control and use of one’s one time
spent on specific activities.
Goal: It gives us direction, make us work harder
and motivate us to complete what we saw and
achieve the target.
Managing quality: Setting and maintaining a
standard of excellence for products or services
being provided to customers.
Negotiation skills.
Its an important skill where an entrepreneur
should have with suppliers, customer sales,
employee hiring, etc.
Risk taking: They take enough risk but it is a
calculated risk.
They should assess the loss and return of the risk.
Team building:
Where a group of individuals together and
motivates them to work cooperatively as a team.