CONCEPTS AND
PERSPECTIVE OF
ENTREPRENEURSHIP
UNIT 1
ENEC
ENTREPRENEURSHIP AND NEW
ENTERPRISE CREATION
Definition of entrepreneur
“ An entrepreneur is an Innovator who carries out new
combinations to initiate the process economic development
through introduction of new products, new markets,
conquests of new sources of raw materials and
establishment of new organisation of industry.”
- J. A. Schumpeter
Definition of Entrepreneurship
“ Entrepreneurship is the process of creating something
different with value by devoting the necessary time and effort
assuming the accompanying financial, psychological and
social risks and receiving the resulting rewards of monetary
and personal satisfaction.”
- Robert Hisnch
Entrepreneur V/S Entrepreneurship
Entrepreneur Entrepreneurship
Person Function/process
Organiser Organisation
Innovator Innovation
Motivator Motivation
Leader Leadership
Creator Creation
Risk taker Risk bearing
Initiator Initiative
Visualizer Vision
Administrator Administration
Types of Entrepreneurs
I. Based on Timing of creation a. Early Starters
b. Experienced Entrepreneurs
c. Mature Entrepreneurs
II. Based on Socio- Cultural a. First generation Entrepreneur
Variables b. Minority Entrepreneurs
c. Women Entrepreneurs
III. Based on Entrepreneurial a. Serial Entrepreneurs
Activity b. Portfolio Entrepreneurs
IV. Other Types a. Social Entrepreneurship
b. Family Business
c. Young Entrepreneurs
d. Corporate Entrepreneurship
I. Based On Timing Of Creation
a. Early Starters
Starts the venture with little or no work experience
May belong from business family
Seizes the opportunity Ex: Ritesh Agarwal OYO
b. Experienced Entrepreneur
Has spent time in a business
Venture in a similar field
Get together with like- minded people
c. Mature Entrepreneur
Senior professionals quite their jobs to start ventures
High in confidence and ability
II. Based on Socio- Cultural Variables
a. First Generation Entrepreneurs
Entrepreneurs from business families/ communities
Example- Families such as Marwadi, Gujarati and Sindhi
etc.
b. Minority Entrepreneurs
Small ethnic groups who traditionally, have not ventured into
business
Distinctly low levels of entrepreneurial activity
c. Women Entrepreneur
Example: Kiran Majumdar Shaw
III. Based on Entrepreneurial Activity
a. Serial Entrepreneur
Is devoted to one venture at a time but ultimately starts many
b. Portfolio Entrepreneur
Starts and runs a number of businesses
c. Novice Entrepreneur
IV. Other Types
a. Social entrepreneurship: Aims for value in form of transformation that will
benefit at large
b. Family business
c. Young Entrepreneur
d. Corporate entrepreneurship
Exhibit their skills and intelligence by promoting corporation
Registered under statute/ Act
Women Entrepreneurs
A woman or group of women who initiate , organise and operate
a business enterprise.
Factors influencing women entrepreneurs
Economic independence
Establishing own creativity and identity
Building confidence and motivation
Developing risk-taking ability
Remedial Measures To Encourage Women
Entrepreneurship
Overcome resistance from family clutches
Shoulder dual responsibility
Set up home based business
Acquire skill, education and confidence to work
independently
Establish credibility in terms of quality and competitiveness
Effective use of technology
Get financial assistance
Organise workshop and seminar to strengthen relations
Associations Promoting Women Entrepreneur
1. Self Help Groups
Association of small groups self-employed rural or urban women
join together for group welfare
Voluntary association
Funds will be provided by members as well as supporting
institutions as NGOs
2. Federation of Indian Women Entrepreneurs(FIWE)
Facilitates interaction with various women associations through a
network
Provides facilities to member associations in the area of marketing,
quality control, export management and standardisation
Facilities the member associations to participate in national and
international conference, fairs, exhibitions to provide greater
exposure to women.
3. Women’s India Trust (WTI)
Established in 1968 to market the products of WTI members
by selling the products door to door
Started educational programme in “nursing” and
kindergarten training
Launched computer training for women
4. SIDO (Small Industries Development Organisation)
Cater to the needs of potential women entrepreneurs who
may not have adequate educational background and skills
Introduction to process/product oriented EDPs in areas like
TV repair, leather goods, etc.
Provide co-ordination and assistance for setting up training
and income generating activities
5. SIDBI (Small Industries Development Bank Of
India)
It was established at national level to provide facilities to
small scale industries
It has two special schemes
(a)Mahila Udyam Nidhi (b) Mahila Vikas Nidhi
It has set up an informal channel for credit needs on self
terms giving special emphasis to women
6. Consortium of Women Entrepreneurs Of India
Established in 2001 with the objective of providing
technology upgradation facilities to women entrepreneurs
7. NABARD (National Bank For Agriculture & Rural
Development
Apex development financial institution
Facilitates policy planning and operations in the field of
credit to agriculturists of country
8 central and state government schemes
9. AWAKE (Association of Women Entrepreneurs of
Karnataka )
Devoted to promote and develop entrepreneurship among
women.
Provides training to women to start their own business and
thereby empower them to join economic mainstream
Reasons for Growth of Entrepreneurship
1. Industry structure 8. Increasing flow on
information
2. New Technologies 9. Easier access to resources
3. Deregulation and 10. Entrepreneurial education
Privatization
4. Formation of new business 11. Entrepreneur as hero
communities
5. Increasing demand for 12. Rising dissatisfaction at job
variety
6. Services sector 13. High regards for self
employment
7. Government incentives and
subsidies
Importance And Relevance Of Entrepreneurs
1. As an innovator in economic growth
2. In generation of employment opportunities
3. In economic growth
a) Employment generation
b) Capital formulation
c) Increase in per capita income
Problems faced by entrepreneurs
Internal problems External problems
a) Planning a) Infrastructural
b) Implementation b) Financial
c) Production c) Marketing
d) Taxation
e) Technology
Characteristics /Traits/Qualities Of Successful
Entrepreneurs
1. Recognise and take advantage of opportunities
2. Resourceful
3. Creative
4. Visionary
5. Independent thinker
6. Hard Worker
7. Optimistic
8. Innovator
9. Risk taker
10. Leader
11. Tolerance
12. Locus of control
Intrapreneurship
A system which allows an employee to act like an
entrepreneur within an organization.
Intrapreneurs are self-motivated, proactive, and action-
oriented people who have leadership skills and think outside
the box.
Intrapreneurship is one step toward entrepreneurship—
intrepreneurs can use what they've learned as part of a team to
develop their own businesses.
Capacity building for entrepreneurship
1. Create the right environment for success
2. Ensure that entrepreneurs have access to right skills
3. Ensure that entrepreneurs have access to smart capital
4. Enable networking and exchange
MYTHS OF ENTREPRENEURSHIP
MYTH I Entrepreneurs are doers, not thinkers
MYTH II Entrepreneurs are born, not made
MYTH III Entrepreneurs are always inventors
MYTH IV Entrepreneurs are academic and social
misfits
MYTH V Entrepreneurs must fit the ‘Profile’
MYTH VI All Entrepreneurs need is Money
MYTH VII All Entrepreneur need is Luck
MYTH VIII Ignorance is bliss for Entrepreneur
MYTH IX Entrepreneurs seek success, but
experience high failure rates
