1. Entrepreneurship
Who is an entrepreneur?
• Entrepreneur is the person responsible for setting up a business or an
enterprise.
• He takes the initiative, is innovative, and looks for high achievements.
• He is a change agent who puts up new projects that create wealth, open
up employment opportunities and leads to the growth of the sector.
• One who creates a new business in the face of risk and uncertainty for the
purpose of achieving profit and growth by identifying opportunities and
assembling the necessary resources to capitalize on them.

2. Workshop on Entrepreneurship
Prepared from the works of good hearted people who ventured to
document their experience and findings
Entrepreneurship

3. Definitions
• The entrepreneur is an individual who introduces something new in the
economy- a new production method, a new product, a new source of raw
material, a new market etc.
- Joseph Schumpeter.
• An entrepreneur is the one who always searches for change, responds to it
and exploits it as an opportunity. Innovation is a specific tool by which he
exploits change as an opportunity, for a business or service.
- Peter Drucker
• A true entrepreneur is the one who is endowed with more than average
capacity in the task of organising and coordinating the various other
factors of production.
– Francis Walker
Entrepreneurship

4. Entrepreneurship
Characteristics/Attributes of
Entrepreneurs
• Desire for responsibility
• Preference for moderate risk
• Confidence in their ability to succeed
• Desire for immediate feedback
• High level of energy
• Future orientation
• Skilled at organizing
• Value achievement over money

5. Entrepreneurship
The ‘Type E’ Personality
Common Traits of Entrepreneurs:
• Aggressively pursues goals; pushes self and others
• Seeks autonomy, independence and freedom from boundaries
• Sends consistent messages; very focused
• Acts quickly, often without deliberating
• Keeps distance and maintains objectivity
• Pursues simple, practical solutions
• Willing to take risks; comfortable with uncertainty
• Exhibits clear opinions and values; has high expectations
• Impatient; “just do it” mentality
• Positive, upbeat, optimistic; communicates confidence

6. Entrepreneurship
What is entrepreneurship?
• It is the propensity of mind to take calculated risks with confidence to
achieve a pre determined business or industrial objective
Entrepreneur Entrepreneurship
Person Object
Enterprise
Process of action

7. Entrepreneurship
Entrepreneurship and developing
countries like Sri Lanka
• The potential of economic development remains dormant because of
undeveloped or underdeveloped human resources.
• In fact, man is much more crucial to development than any other
economic factors. The sufficiency of other resources alone, does not lead
us anywhere.
• Resources to be developed may exist in plenty but if development-linked
human minds are absent, hardly any economic development will take
place.
• While human skills include manufacturing, technical, supervisory,
managerial, administrative and entrepreneurial competence, it is the
entrepreneurial quality, which is a key ingredient.
• It often sets the limit to the degree of industrial development and the
speed with which it can be achieved in a particular country or region.

8. Entrepreneurship
Barriers to entrepreneurship
• Lack of a viable concept
• Lack of market knowledge
• Lack of technical skills
• Lack of seed capital/resources
• Lack of business know how
• Lack of sufficient infrastructure
• Complacency
• Restrictive effects of customs and traditions
• Legal constraints
• Monopoly
• Restrictions due to patents

9. Entrepreneurship
Intrapreneur
• He is the one who innovates and turns the idea into a profitable reality,
within the framework of an organization
• It is necessary that an organization has a conducive environment to
encourage intrapreneurs
Characteristics of a conducive intrapreneurial environment are:
• Encouragement to innovation and experimentation
• Freely available resources
• Measurable rewards
• Flexibility to alter plans
• Long time horizon to measure success
• Top management support

10. Entrepreneurship
Advantages of Entrepreneurship

11. Entrepreneurship
To an Individual
• Self Employment
• Employment for near & dear ones
• Prolonged career for next generations
• Freedom to use own ideas - Innovation and creativity
• Unlimited income / higher retained income
• Independence
• Satisfaction

12. Entrepreneurship
To the Nation
• Provides larger employment
• Results in wider distribution of wealth
• Mobilizes local resources, skills and savings
• Accelerates the pace of economic development
• Reap the benefits of the peace
• Stimulates innovation & efficiency

13. Entreprenership
Factors favouring Entrepreneurship
• Growth of education- science, technology & management
• Developed infrastructure facilities
• Financial assistance
• Training facilities
• Protective and promotional policies
• Globalization

14. Entrepreneurship
Entrepreneurship and Economic
Development
• Entrepreneurs combine resources, put their time and efforts and
produce goods or services
• What they contribute – productivity, output, value addition,
income and employment
• Entrepreneurship is a “Low Cost Strategy”. Entrepreneurs perform
the crucial role themselves
• The spirit of Entrepreneurship – Drive, achieving higher goals,
creativity, innovative attitude.
• A dynamic society emerges and the spirit spreads like a chain
reaction.

15. Entrepreneurship Management
Entrepreneurship and Management
Students
• Enterprises in protected economy can be mismanaged
• Enterprises in competitive environment are essentially to be
managed
• A Management Graduate is a person trained to manage an
enterprise. Naturally, he will deliver the best results
• A Management Graduate should not be just a Job Seeker. He can
and should take the role of Job Provider
• Experience confirms that more Management Graduates take
Entrepreneurial Role (after some experience) and their income is
higher than their colleagues who are in job ( In Sri Lanka the
percentage of Management Graduates who venture into business is
dismally low. They prefer working for some one, but that trend is
changing now. It is good news???)

16. Entrepreneurship
Entrepreneurial Decision Process
• Pull Factors
– Perception of Advantages
– Spotting an Opportunity
– Government Policies
– Motivation from Biographies
or Success Stories
– Influenced by Culture,
Community, Family
Background, Teachers,
Peers, etc.
• Push Factors
– Job Dissatisfaction
– Relocation
– Lay-off
– Retirement
– Boredom

17. Entrepreneurship Management
Comparison of Traditional Managers,
Entrepreneurs and Intrapreneurs
Traditional
Managers
Entrepreneurs Intrapreneurs
Primary
motives
Perks and
promotion
Self-
employment,
satisfaction and
money
Creative
freedom and
recognition
Time
Orientation
Short-term –
meeting quotas
and budgets;
weekly, monthly,
quarterly and the
annual planning
horizon
Short-term –
business
establishment;
Long-term –
growth of
business
Tend to follow
the middle path

18. Entrepreneurship Management
Traditional
Managers
Entrepreneurs Intrapreneurs
Activity Delegates and
supervises
Direct
involvement
Direct
involvement ,
not merely
delegation
Risk Careful Moderate risk
taker
Moderate risk
taker
Monetary Risk Nil High Nil
Status Concerned about
status
Not concerned
about status
Not concerned
about traditional
status
Failure and
mistakes
Tries to avoid
mistakes
Deals with
mistakes and
failures
Attempts to hide
risky projects
from view until
ready

19. Entrepreneurship
Traditional
Managers
Entrepreneurs Intrapreneurs
Decisions Like to take their
own but unable to
disagree with
superiors
Follows dream
with decisions
Able to get
others to agree
to help achieve
their dreams
Serves who? Others Self and
customers
Self, customers,
and sponsors
Family history Family members
worked for large
organizations
Entrepreneurial
small-business,
professional
Entrepreneurial
small-business,
professional
Relationship
with others
Hierarchy as basic
relationship
Transactions and
deal-making as
basic relationship
Transactions
within hierarchy

20. If you want to be an entrepreneur
It is not too late . You can start .
Entrepreneurship

21. You have one more task !
• This is a presentation done by Maxwell
Ranasinghe to Students of the Final Year in the
Department of Marketing at the University of
Kelaniya.
• Please develop it further with your own insight,
knowledge and experience, share with your
friends and members of your staff. Send
comments to. I used a presentation made by a
person called Swarupa to develop and adjust
according to our requirements. So I claim no
copyright to this.
• The knowledge is universal, we need to share it
for the common benefit.

22. • So act now and send it to many friends as
possible AS A CHAIN LETTER.( you may
have been part of sending many
mythological, time wasting, illogical chain
letters but send this, it will at least help
another fellow Sri Lankan to be an
entrepreneur)
• We, Sri Lankans need a big change in this
attitudes more than any other thing.
• Good luck …………
Entrepreneurship Management

23. Entrepreneurship
Assignment for Students
Choose an entrepreneur as a case study.
Understand his qualities/characteristics
Factors that introduced him to entrepreneurship-push/pull
Environment conditions (political, social etc)- favorable/unfavourable
Process of starting a business venture; use of innovation and
creativity
Details of the enterprise, product/service provided
Path to success-overcoming failures, problems faced, major
milestones.
SWOT of the organization/business in general;
Recommendations if any for the future sustenance and growth