Entrepreneurship

Entrepreneurship
 It is a vital activity to bring about changes in the economy and
society not only in a country but also of those in the world.
 It causes initiation of all types of human activities in the society.
 It is the process of creating something new with value by
devoting the necessary time and effort, assuming the
accompanying financial, psychic and social risks and receiving the
resulting rewards of monetary and personal satisfaction and
independence.”
 Even though it is a risk hearing activity, It gives financial rewards
,freedom and personal satisfaction .

 It affects all aspects of political-legal, sociocultural, technological,
economic and demographical environment of life and society.
Entrepreneurship is the pioneering force that connects the world
societies with its activity of exchange from the early period of
our human history.
 It is a basic strength of the business organizations too. The
provocation of change toward future business prosperity is the
result of the entrepreneurial zeal of the people. Therefore
entrepreneurship is a basic discipline to learn for the student of
business.

How Entrepreneurship is an Innovation Process
 Entrepreneurship is an innovation process.
 It foresees the potentially profitable opportunity and tries to
exploit it in a new and better way.
 Wilken (1979) summaries a list of innovative activities
entrepreneurship does. They are;
Initial expansion- Original production of goods.
Subsequent expansion- Subsequent change in the number of
goods produced.

Factor innovation- Increase in supply or productivity of factors.
• Financial- Procurement of capital from a new source
• Labor- Procurement of labor from a new source
• Material- Procurement of old material from a new source
Production innovations- Changes in the production process.
• Technological- Use of new production technique
• Organizational- Change of form or structure
Market innovations- Changes in the size or composition of the
market a Product.
• Production of new goods
• Market- Discovery of a new marker.

Administrative Entrepreneurship
 It is centered around administrative techniques and functions.
 It gives a new option to handle prevailing or future situations in a
more effective way that provides advantages and competitive
edge.
 The old age pension scheme is such administrative
entrepreneurship of the government of Bangladesh.

Opportunistic entrepreneurship
 It is the best exhibit of the characteristic of this category of
entrepreneurship.
 Environmental changes always offer new opportunities. But everybody
is not equally capable of identifying and to utilize that opportunity on
time.
 The entrepreneurship that identifies, exploits and executes the
opportunity in the first hand regarded as opportunistic
entrepreneurship.

Acquisitive entrepreneurship
 The entrepreneurship that learns from other competencies is
acquisitive entrepreneurship.
 It acquires something new of value front, the competitive
environment or achieves the competitors’ technical
capacities.
 It keeps entrepreneurship sustainable in a competitive
environment.
 The failure never restraints them from acquisition but
motivates them further to discover such a thing with a new
visitor.

Incubative entrepreneurship
 It generates and nurses new ideas and ventures within the
organization.
 It executes them in a productive manner and ensures material
gain for the organization.
 They pursue and help to get differentiated technologies to
promote creations and innovations Microsoft, Nokia, etc. always
incubates new varieties types of product and creates product
differentiation in the market.

Imitative entrepreneurship
 It imitates a good or service operating in
the market under a franchise agreement.
 It is the medium that spread technology
over the world.
 It adopts an existing technology in
countries over the world.
 It also adopts an existing technology with
minor modification appropriate to the local
condition.

Private Entrepreneurship
 It is initiated under private sector is private entrepreneurship.
 The government gives various support services through private
and public concerns that encourage private initiative in taking
entrepreneurial ventures.
 A layer and mutual relationship between private and public
sectors would make economic development speedy and
balanced.

Public entrepreneurship
 It is undertaken by the government through its various
development agencies is public entrepreneurship.
 All countries, developed or underdeveloped, take a public
initiative in venture ideas to fulfill the initial deficiency of
private entrepreneurs.

Individual entrepreneurship
 It is undertaken by an individual or a family with personal
initiative is individual entrepreneurship.

Mass Entrepreneurship
 This type of entrepreneurship emerges in an economy where a
favorable climate of motivation and encouragement exist for
developing a wide range of entrepreneurship among general
mass is mass entrepreneurship.
 It increases small and medium enterprises in a country.

Type of risk for a entrepreneur
 Abandoning the steady pay check; Process of saying goodbye to
your current job, and in some cases, your career.
 Relying on cash flow; There will be struggle with the day-to-day
necessities if your revenue doesn’t match or exceed your costs in
a timely manner.
 Estimating popular interest; It is difficult to estimate popular
interest in your business with perfect accuracy.
 Trusting a key employee; They have to put an overwhelming
amount of trust in employees, especially if they have special
skills that are hard to find.

 Betting on a crucial deadline; They are forced to make multiple goals
contingent on a handful of deadlines, and those deadlines become
absolutely critical
 Sacrificing personal capital; Some entrepreneurs are able to start
their ventures relying solely on external funding like investor
contributions, government grants and loans, and results from crowd
funding campaigns.

Essential Entrepreneurial Traits
 Successful Risk Manager: Risk isn't always about money. Successful
entrepreneurs often devote 110 percent of their selves and their
resources, time and money included.
 Is Passionate and Motivated: Enthusiasm at the start of a project is
easy. Maintaining that momentum after the honeymoon phase is
crucial.
 Has Great Organizational Skills: From the original idea through to a
successful business, every aspect along the way is your responsibility
as an entrepreneur.
 Is Well-Connected: Your networking skills are top-notch, since success
always has who-you-know elements. If you don't know these key
players now, you will down the road.

 Is Able to Improvise: Every great plan runs into Murphy's Law, roadblocks and
unforeseen opportunities. The great entrepreneur rolls with these, with great
instincts about when to change lanes and when to stay the course.
 Is Confident: confidence is essential against your own self-doubt.
 Is Disciplined and Hard-Working: No one gets into entrepreneurship because of the
easy work and short hours.
 Is Knowledgeable: It's rare that a novice can succeed in a crowded playing field, so
unless your business is unique, you're competing against the best, and to succeed,
you need to be on their level.
 Is Self-Analytical: Being honest with yourself about your capabilities.
 Is Able to Refocus: Business failures are arguably higher in the entrepreneurial field
than anywhere. Successful entrepreneurs know when to stick with it and when to
redirect their efforts.

Thank you
For more…. Mail to aglaiaconnect2018@gmail.com

Entrepreneurship

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