Lecture - 1
*** Entrepreneur :
Who has the will and determination to start a new company and deals with all the risks
that go with it can become an Entrepreneur.
*** Characteristics of an entrepreneur :
1. Creativity.
2. Professionalism.
3. Risk-taking.
4. Passion
5. Planning
6. Knowledge
7. Social Skills
8. Open-mindedness towards learning, people, and even failure
9. Empathy
10. Customer is Everything
*** Entrepreneurship :
Entrepreneurship is the act of setting out on your own and starting a business.
*** Entrepreneur – Entrepreneurship :
Refers to a person – Refers to a process
Visualizer – Vision
Creator – Creation
Organizer – Organization
Innovator – Innovation
Technician – Technology
Initiator – Initiative
Decision-maker – Decision
Planner – Planning
Leader – Leadership
Motivator – Motivation
Programmer – Action
Risk-taker – Risk-taking
Communicator – Communication
Administrator – Administration
*** Types of Entrepreneurship
** Based on Risk
1. Innovative Entrepreneurship : Involves creating new ideas and marketing strategies.
2. Imitative Entrepreneurship : Focuses on improving existing business ideas.
3. Fabian Entrepreneurship : Characterized by a reluctance to take risks and a
preference for stability.
4. Drone Entrepreneurship : Owners are satisfied with the current business model and
show no desire for change.
** Based on Type of Business
1. Agricultural Entrepreneurship : Involves activities related to agriculture.
2. Manufacturing Entrepreneurship : Focuses on converting raw materials into finished
products.
3. Trading Entrepreneurship : Involves selling finished products to customers.
** Based on Use of Technology
1. Technical Entrepreneurship : Relies on innovative production methods.
2. Non-Technical Entrepreneurship : Uses alternative marketing strategies.
** Based on Ownership
1. Corporate Entrepreneurship : Managed by individuals within a corporate structure.
2. Private Entrepreneurship : Sole ownership of a business.
3. State Entrepreneurship : Government-run ventures.
4. Joint Entrepreneurship : Collaboration between private entrepreneurs and the
government.
** Based on Size of Enterprise
1. Micro Enterprises : Turnover up to Rupees five crore.
2. Small-Scale Entrepreneurship : Annual turnover between five crore and 75 crore.
3. Medium-Scale Entrepreneurship : Turnover between 75 crore and 250 crore.
4. Large-Scale Entrepreneurship : Turnover over 250 crore.
** Based on Social Problems
1. Social Entrepreneurship : Focuses on addressing social and environmental issues.
2. Women Entrepreneurship : Defined as businesses owned and managed by women.
***Motivations for Entrepreneurship
Entrepreneurs are motivated by change, challenge, creativity, control, curiosity, and the
pursuit of cash.
*** Characteristics of a successful Entrepreneur:
1. Capacity to take risk
2. Capacity to work hand
3. Above average intelligence and wide knowledge
4. Self-Motivation
5. Vision and foresight
6. Willingness to defer consumption
7. Imagination initiative and emulation
8. Incentive ability and sound judgment
9. Flexibility and sociability
10. Desire to take personal responsibility.
11. Desire to seek and use feedback
12. Persistence in the face of adversity
13. Innovativeness and future orientation
14. Mobility and drive
15. Creative Thinking.
16. Strong need for achievement
17. Ability to Marshall resources
18. High degree of ambition
19. Will to conquer & impulse to fight.
20. Will to prove superior to others.
*** Entrepreneurial Process :
1. Discovery
2. Developing a business plan
3. Resourcing
4. Managing the company
5. Harvesting.
***Nature of Entrepreneurship
1. Creating an enterprise
2. Organizing functions
3. Risk-bearing
4. Innovative ideas
5. Managerial functions
6. Filling market gaps.
*** Functions of Entrepreneurs :
** Entrepreneurial Functions
1. Innovations : Introducing new ideas and products.
2. Risk-Taking : Making decisions with uncertain outcomes.
3. Organization Building : Managing teams and structures.
** Promotional Functions
1. Investigation of Ideas : Evaluating business ideas for feasibility.
2. Detailed Investigation : Analyzing market conditions.
3. Assembling Requirements : Gathering necessary resources.
4. Financing the Proposition : Securing funding for ventures.
** Managerial Functions
1. Planning : Setting goals and strategies.
2. Organizing : Structuring resources and tasks.
3. Staffing : Recruiting and building a skilled workforce.
4. Directing : Providing leadership and guidance.
** Commercial Functions
1. Production : Managing the conversion of inputs into goods.
2. Finance : Handling financial management and capital raising.
3. Marketing :Promoting products and services.
4. Personnel : Managing human resources.
5. Accounting : Overseeing financial records and compliance.
***Differences Between Entrepreneurship and Employment :
*** Importance of Entrepreneurship
1. Managerial development
2. Organization creation
3. Improved living standards
4. Economic development
