ENTREPRENEURAL
COMPETENCE
UNIT I
Entrepreneurship Concept
Entrepreneur – Defn.
• An Entrepreneur is an Individual who creates
a new Business, bearing most of the Risks
and enjoying most of the Rewards. An
Entrepreneur is commonly seen as an
Innovator, a Source of new Ideas, Products,
Services, Business / Procedures.
Entrepreneurship - Defn
• Entrepreneurship refers to the concept of
Developing & managing a Business Venture in
order to gain Profit in the Corporate World.
• Simply put, Entrepreneurship is the
willingness to start a new Business.
Entrepreneurship as a Career
Factors Favouring Entrepreneurship as a Career Option
1) Greater Need for Independence :
• There are some Individuals who want Freedom while
selecting Job under what conditions to work. This Factor
motivates many Individuals to go for Entrepreneurship
as a career option.
2) Desire to Have High Financial Rewards :
• Generally, Individuals prefer to have high Financial
Reward for their Efforts in Work. It is not possible in a
Regular job, which is why Individuals are attracted
toward the Entrepreneurial career.
Factors Favouring Entrepreneurship as a
Career Option
3) Opportunity to Handle Different Aspects of a
Business
• Idea generation, Designing, Marketing and
handling Employees are the key aspects of a
particular Business. No other Job provide the
Exposure to these Aspects of the Business.
That is why, Individuals shift to
Entrepreneurial Career to have Experience of
all these Business Aspects.
Factors Favouring Entrepreneurship as a
Career Option
4) Desire to Implement new Ideas
• By becoming Entrepreneur, a Person can produce a Product from
his own Ideas. They have a Strong Motivation and Self-belief of
creating better Products or Services which is not offered by the
current Producers.
5). Government Policies :
• When Infrastructural Facilities and Financial assistance are
offered by the Government , it can provide the Individuals with
better Financial benefits as compared to Conventional jobs.
Factors Favouring Entrepreneurship as a
Career Option
6) Job Insecurity :
• Another Reason for choosing Entrepreneurial career
by individuals is that they feel Insecure about the
current Job in a particular Organisation.
7) Family Business :
• Individuals having Family Business may also shift to
Entrepreneurial career as they are already exposed
to Entrepreneurial Environment. After Completing
their Studies and having some Experience in the
Industry they may start their own Venture.
Factors Favouring Entrepreneurship as a
Career Option
8). Vision to Leave a Long Lasting Mark.
• Individuals are also attracted to the
Entrepreneurial career because it can make
them able to leave a Mark on the Society.
• By starting an Enterprise, they offer an
Employment opportunity to the Public and
improve their Living Standards of the Society.
Positive Aspects of Entrepreneurial Career
• The Entrepreneur enjoys the Decision-making Power.
He/she is the Boss of the Organisation and can take
any kind of Decision. No one is there to Order him/her.
• The Self-Satisfaction achieved by getting the Rewards
for Work done on Own is very different than in a Job.
• One can receive higher Monetary Advantages than
his/her Competence, Capabilities and Expectations.
• One becomes able to offer Jobs to Others, instead of
Working under someone.
Positive Aspects of Entrepreneurial Career
• One would earn lot of Respect and Honor from his
Friends and Family members, which can be seen as
an Intangible benefit.
• A number of Self-development opportunities are
there before the Entrepreneur - He can also play a
vital role in the Economic, Social and structural
Development of the Country and feel Proud about
it.
• By fulfilling the Career goals and proving the
Achievements, one can be a great Achiever
Negative Aspects of Entrepreneurial Career
• Despite being the Boss, an Entrepreneur is not a real
Boss of himself/herself as he/she has to Work as
per the desires of Financiers, Suppliers, Customers,
Labourers and so on.
• Sometimes due to limited Resources, Operational
activities will tend to be limited which will create a
sense of Frustration in the Entrepreneur.
• Entrepreneur has to spend Long hours in Office to
make his/her Enterprise sustainable which can
hamper his/her Family and Social life.
Negative Aspects of Entrepreneurial Career
• As it is not necessary that whatever
Entrepreneur plans happens in same manner
thus, Frustration and Depression arises
sometimes.
• Due to involved Risk in the entrepreneurial
venture, a kind of Stress is always there.
Characteristics of Successful Entrepreneur
1).Curiosity
• Curiosity helps in coming up with new Solutions
for the Problems at hand.
• Be ready to think Outside the Box, and apply
vast Network, Experiences, and Skills to take on
a Challenge.
• Entrepreneurs usually have a lot of new Ideas and
act on them. Curiosity gives an Entrepreneur the
ability to devise new Products/ Services.
Characteristics of Successful Entrepreneur
2).Professionalism:
• Professionalism creates Self-discipline and
Reliability.
• Self-discipline enables an Entrepreneur to be
Organized, achieve Targets and set an Example for
Everyone.
• Self-Discipline results in Reliability (Trust)
• Good Mannerisms and Behavior is a quality which
all good entrepreneurs must possess.
Characteristics of Successful Entrepreneur
3). Passion
• Passion acts as a Driving force, with which, you
are Motivated to strive for Better.
• Your Work should be your Passion. So when
you work, you Enjoy what you’re doing and
stay highly Motivated.
• It also allows you the ability to put in Extra
hours in the office which can or make a
difference in Productivity.
Characteristics of Successful Entrepreneur
4). Product or Service knowledge
• Entrepreneurs are required to know what
Products or Services to Offer and who their
Target Audience is.
• Clearly identify the Features of your products
or services and be very clear about how they
are Beneficial to your Customers.
Characteristics of Successful Entrepreneur
5). Adaptability
• Entrepreneurship has many new Challenges
and Experiments present themselves at every
turn. It’s nearly Impossible to be prepared for
every Scenario, but Successful business
Leaders must be Adaptable.
• Entrepreneurs must remain Flexible, no
matter what unexpected Changes occur.
Characteristics of Successful Entrepreneur
6). Decision-making Ability
• Entrepreneurs often require to make important
Decisions and take Actions.
• To improve decision-making skills, always avoid reacting
Spontaneously to Situations and Circumstances.
• You can narrow your Options through a simple Pros and
Cons list.
• Assess the Impact of a Decision you intend to take.
(Positive or Negative)
Characteristics of Successful Entrepreneur
7). Taking Risks
• Experimenting with new Methods and new
Trends create Risks.
• Uncertain Problems.
• Entrepreneurs usually have a lot of Ideas and act
on them. Not necessarily every idea might be a
Success, but the experience obtained is Valuable.
• Risk-Taking gives an Entrepreneur the ability to
explore new Products/ Services.
Characteristics of Successful Entrepreneur
8). Persistence (after failure)
• Successful Entrepreneurs understand
that Failure isn’t the End of the World.
Instead, “Failure is a Rehearsal for Success”
• If you Fail, you learn Lessons to meet the next
Challenge
• Persistance increases your Confidence,
Corrective Action and Creativity .
THE ENTREPRENEURIAL PERSONALITY
1).The desire for Responsibility :
• Entrepreneurs feel a deep sense of Personal
Responsibility for the outcome of Ventures
they Start.
• They prefer to be in control of their
Resources, and they use those resources to
achieve self- determined Goals.
THE ENTREPRENEURIAL PERSONALITY
2). The Preference for moderate risk :
• Entrepreneurs are not Wild Risk-takers but are
instead Calculated Risk-takers.
• They usually spot Opportunities in Areas that
reflect their Knowledge, Backgrounds and
Experiences, which increases their Probability for
Success.
• Entrepreneurs reduce most risks by building a solid
Business plan for their Venture.
Business Proposal
A Business proposal usually aims to answer the
following Questions:
• Who you are and what your Company does
• The Problem your Buyer faces
• The Solution your company offers to alleviate the
Problem
• How your Company will implement this Solution
effectively.
• An estimate of Resources (Time, Money,
Equipments,etc.) required to implement the solution.
THE ENTREPRENEURIAL PERSONALITY
3). Confidence in their ability to Succeed.
• Entrepreneurs typically have an Abundance of
Confidence in their ability to succeed.
• They tend to be Optimistic about their chances for
success.
4). Desire for immediate Feedback:
Entrepreneurs enjoy the challenge of running a
Business and they like to know how they are Doing.
THE ENTREPRENEURIAL PERSONALITY
5). High Level of Energy :
• Entrepreneurs are more Energetic than the Average person.
• Long hours and Hard work are the norms they follow for
Success.
6). Skill at Organizing:
• Entrepreneurs know how to put the Right people Together to
accomplish a Task.
• Effectively combining People and Jobs enables entrepreneurs to
Transform their Visions into Reality.
THE ENTREPRENEURIAL PERSONALITY
7). Future Orientation:
• Entrepreneurs have a well-defined Search for
Opportunities.
• Entrepreneurs are less concerned with what they
did Yesterday. They Look-ahead for Tomorrow’s
Tasks/Activities as Potential for Success.
• Real Entrepreneurs stay Focused on the Future.
THE ENTREPRENEURIAL PERSONALITY
8). High Degree of Commitment
• ‘Launching a Company Successfully’ requires
Total Commitment from an Entrepreneur.
• Most Entrepreneurs have to overcome
‘Unexpected Barriers’ to launch a Company
and keep it growing. That requires a high
Degree of Commitment.
THE ENTREPRENEURIAL PERSONALITY
9). Tolerance for Ambiguity:
• Entrepreneurs tend to have a high tolerance for
Uncertain & Ever-changing Situations
• This ability to handle uncertainty is Critical because
these Business Builders constantly deal with
a).unfamiliar Sources
b).conflicting Information
c). new Decisions.
THE ENTREPRENEURIAL PERSONALITY
10). Tenacity:
Obstacles, unnecessary Interventions and Defeat
typically do not discourage Entrepreneurs from
Pursuing their Visions. They simply keep Trying.
Characteristics of Successful Entrepreneur
1).Curiosity
• Curiosity helps in coming up with new Solutions
for the Problems at hand.
• Be ready to think Outside the Box, and apply
vast Network, Experiences, and Skills to take on
a Challenge.
• Entrepreneurs usually have a lot of new Ideas and
act on them. Curiosity gives an Entrepreneur the
ability to devise new Products/ Services.
Characteristics of Successful Entrepreneur
2).Professionalism:
• Professionalism creates Self-discipline and
Reliability.
• Self-discipline enables an Entrepreneur to be
Organized, achieve Targets and set an Example for
Everyone.
• Self-Discipline results in Reliability (Trust)
• Good Mannerisms and Behavior is a quality which
all good entrepreneurs must possess.
Characteristics of Successful Entrepreneur
3). Passion
• Passion acts as a Driving force, with which, you
are Motivated to strive for Better.
• Your Work should be your Passion. So when
you work, you Enjoy what you’re doing and
stay highly Motivated.
• It also allows you the ability to put in Extra
hours in the office which can or make a
difference in Productivity.
Characteristics of Successful Entrepreneur
4). Product or Service knowledge
• Entrepreneurs are required to know what
Products or Services to Offer and who their
Target Audience is.
• Clearly identify the Features of your products
or services and be very clear about how they
are Beneficial to your Customers.
Characteristics of Successful Entrepreneur
5). Adaptability
• Entrepreneurship has many new Challenges
and Experiments present themselves at every
turn. It’s nearly Impossible to be prepared for
every Scenario, but Successful business
Leaders must be Adaptable.
• Entrepreneurs must remain Flexible, no
matter what unexpected Changes occur.
Characteristics of Successful Entrepreneur
6). Decision-making Ability
• Entrepreneurs often require to make important
Decisions and take Actions.
• To improve decision-making skills, always avoid reacting
Spontaneously to Situations and Circumstances.
• You can narrow your Options through a simple Pros and
Cons list.
• Assess the Impact of a Decision you intend to take.
(Positive or Negative)
Characteristics of Successful Entrepreneur
7). Taking Risks
• Experimenting with new Methods and new
Trends create Risks.
• Uncertain Problems.
• Entrepreneurs usually have a lot of Ideas and act
on them. Not necessarily every idea might be a
Success, but the experience obtained is Valuable.
• Risk-Taking gives an Entrepreneur the ability to
explore new Products/ Services.
Characteristics of Successful Entrepreneur
8). Persistence (after failure)
• Successful Entrepreneurs understand
that Failure isn’t the End of the World.
Instead, “Failure is a Rehearsal for Success”
• If you Fail, you learn Lessons to meet the next
Challenge
• Persistance increases your Confidence,
Corrective Action and Creativity .
Knowledge and Skills of Entrepreneur.
1). Business Knowledge
Knowledge that Exists in your Business include:
• the Skills and Experiences needed for your
Workforce.
• the Designs and Processes for your Goods and
Services
• Market Data you've gained from Research - Customer
Data and Information on Suppliers as well as
Stakeholders
• your Files or Documents (electronic or otherwise)
Knowledge and Skills of Entrepreneur.
2).Communication and Listening Skills
• Communication skills allow individuals to express
Thoughts, Ideas, and Feelings clearly through
Speaking and Writing.
• Listening skills provide the ability to understand &
retain Information and Respond appropriately.
• Both Communication and Listening are
essential Entrepreneurship skills that to maintain
Relationships, resolve Conflicts and make Informed
Decisions.
Knowledge and Skills of Entrepreneur.
3). Leadership and Teamwork Skills
• Leadership and Teamwork are highly
critical Entrepreneurship skills that leads to
improved Performance and increased
Employee satisfaction.
• These Qualities enable Entrepreneurs to
effectively Inspire, Motivate and lead the
Company toward Success.
Knowledge and Skills of Entrepreneur.
4). Time Management and Organizing Skills
• Effective Time Management and Organizing skills
enables to Delegate, prioritize Tasks, manage Time and
Resources.
Time management and Organizational skills include:
• Prioritizing
• Goal setting
• Multi-tasking
• Decision making
• Collaboration
Knowledge and Skills of Entrepreneur.
5). Customer Service skills
• Excellent Customer Service skills are essential
for Business success.
• Customer Service skills include Connecting
with Potential Customers, conducting
Periodical Discussions, getting Constructive
Feedbacks.
• Quality Customer service increases Loyalty.
Knowledge and Skills of Entrepreneur.
6). Stress Management Skills
• Entrepreneur’s need to cope with Stress for
themselves, their Employees, and their Business.
• Stress management skills allow Entrepreneurs to
maintain good Physical & Mental Health,
enhance Personal & Professional relationships
and improve the overall Quality of Life.
• Stress management skills include Positive
Thinking, Meditation, Sleep Hygiene, Exercise etc.
Types of Entrepreneurship
I). Based on Enterprise Size
a). Small Scale Entrepreneur
If an Entrepreneur has invested up to a maximum of 1 crore in starting an
Enterprise, including Plant and Machinery, such Entrepreneur is called
Small Scale Entrepreneur.
b).Medium Scale Entrepreneur
If an Entrepreneur has invested a minimum of 1 crore to a maximum of 5
crores in starting an Enterprise, including Plant and Machinery, then such
Entrepreneur is called Medium Scale Entrepreneur.
c). Large Scale Entrepreneur
If an Entrepreneur has invested more than 5 crores in starting an
Enterprise, including Plant and Machinery, such an Entrepreneur is called
a Large-scale entrepreneur.
Types of Entrepreneurship
II). Based on Gender
a).Women Entrepreneurs
When any Business venture is formed, managed and
operated by Women, it is referred to as Women
Entrepreneurs. Besides, if Women have a minimum 51
percent share of the Capital, they can also be known as
Women Entrepreneurs.
b).Men Entrepreneurs
When any Business venture is formed, managed and
operated by Men, it is referred to as Men Entrepreneurs.
Types of Entrepreneurship
III). Based on Ownership
a).Private Entrepreneur
A Private Entrepreneur is the only Person who plays
the Sole Proprietor role for a Business venture and
bears the Risk associated with it.
b).State Entrepreneur
When a State or Government does a Business , it is
referred to as a ‘State Entrepreneur'. In this case, the
Government is the Sole Owner of the Enterprise and
will bear all the profits and losses involved with it.
Types of Entrepreneurship
IV).Innovative Entrepreneurs
• Innovative Entrepreneurs create new
Products, find new Production methods,
create new Markets
• Such Entrepreneurs always try to Innovate
and invest their time and money in Research
and Development.
Types of Entrepreneurship
V). Imitative Entrepreneurs
• These Entrepreneurs follow and adopt the
Innovative Entrepreneurs existing Successful
Enterprise system.
• These Entrepreneurs support Improving any
Product, Production process or improved
Technology
Types of Entrepreneurship
VI). Social entrepreneurs
• They care a lot about Society, People and
Earth and serve them back.
• The main Goal will be not only to earn a
Million Dollar Business but also to give back
Social Welfare.
Eg : Health Foundations, Charitable
Organizations, Human Rights Association.
Types of Entrepreneurship
VII). Based on Technology
a). Technical Entrepreneur
• Entrepreneurs who start Industries primarily based on Science and
Technology.
• These Entrepreneurs develop new Ideas into Technology-based
Innovations and Inventions.
a). Non-Technical Entrepreneur
• Non-tech Entrepreneurs are those who work for Innovations using
Traditional methods.
• They meet Customer needs and create better Relationships
Eg : Manufacturing Entrepreneur, Agricultural Entrepreneur, Trading
Entrepreneurs
