Entrepreneur Definition,Function,Characteristics,Role of entrepreneurship in economic development,Features and Advantages of small business & setup small business

1. TITLE:ENTREPRENEURSHIP DEVELOPMENT AND
PROJECT MANAGEMENT
Name:Ashwin Anand
Designation:Assistant Professor
CBS, Kanjikode Palakkad.

2. Entrepreneur Definition
• Entrepreneur is an individual or group of individuals who
identify the business opportunity then try to reach the business
goal or create business value through providing an innovative
solution for business difficulties and also realize and accept the
risks involved in the business. Entrepreneur came from small
business, now a days small business have changed the market
significantly and plays an important role in the economic
development.
• The entrepreneur is defined as a person who creates and
innovates a recognized value of something around the
perceived opportunities.

3. Entrepreneur Definition
An entrepreneur can be defined according to six characters
i. Focus
ii. Advantage
iii. Creativity
iv. Ego-inner and outer
v. Team
vi. Social.

4. Entrepreneur Definition
• Focus covers target focus, time focus and action focus which
provides an evidence of urgency by an entrepreneur to get on
with things
• Advantage differentiates between the value created and added
• Creativity involves ideas and opportunities.
• Ego has six components split into inner and outer ego the
inner ego includes motivation, self-assurance and dedication.
The outer ego includes responsibility, accountability and an
ability to deal with set backs.

5. • Team is a distinct feature that manipulate the characteristics of
focus, advantage and creativity.
• Social influence the nature of the business whether it is a
profit or non profit business and it also effects the culture and
style of an organization in which way the employees are
treated.
Entrepreneur Definition

6. Functions of an Entrepreneur
The main function of an entrepreneur is
i. Recognize the business opportunity
ii. Start of their own business
iii. Gathering funds for the start of business
iv. Advertising the business in the market
v. Analyzing the risk
vi. Providing leadership.

7. Characteristics of an
Entrepreneur
1. Innovativeness: Innovation is one of the important
character of an entrepreneur which includes creating of
new products or new quality, creating new methods of
production to get into the market or to create a new
organization or structure in business. A successful
innovation demands a will which is, it demands the
leader of the innovation. Innovativeness is a behavior of
a person which characterizes the difference between
entrepreneurship and entrepreneurial orientation.
Innovation is a systematic search for opportunities in
new market, products or ideas.

8. Characteristics of an Entrepreneur
2. Need for achievement: The theory of McClelland
on the need for achievement is one of the most
applied theories on entrepreneurship which suggest
that, the need for achievement forces the person to
struggle for the success. A person who as a strong
need for achievement can solve problems
themselves, set targets and achieve the targets by
their own efforts and they also deliver high
performance in achieving the tasks and innovative in
doing things.

9. Characteristics of an Entrepreneur
3. Locus of control: Locus of control is also an
important character which is related to a individual
as whether he or she can handle the events in life.
An individual with external locus of control believe
beyond the circumstances like luck and fate, where
as individual with internal locus of control believes
in personal control events and effects in lives. For an
individual to become a entrepreneur he should have
a internal locus of control.

10. Characteristics of an Entrepreneur
4. Risk taking tendency: Risk taking tendency refers to
an individual who can handle or avoid the risks in a
situations when needed. An entrepreneur is associated
with risk, the main factor of differentiating entrepreneurs
from a employed workers was a doubt and risk involved
by the former. The difference between the manager and
the entrepreneur in a business activities are entrepreneur
personally takes all the risks an profits involved in the
business how every an individual who is in uncertain
environment causes risks related to financial well-
being,career opportunities, family relations and
emotional state.

11. Characteristics of an Entrepreneur
5. Tolerance for ambiguity: Uncertainty occurs
when there is an insufficient data. An individual
should respond positively to ambiguous situations.
People with low level of tolerance for ambiguity
find uncertain and unstructured situation more
complicated. Entrepreneurial managers are believed
to tolerate ambiguity better than the conservative
mangers in the organizations because entrepreneurial
managers face a less structured, more uncertain set
of possibilities and bear the whole responsibilities
for decision making.

12. Characteristics of an Entrepreneur
6. Self confidence: An individual should have a self
confidence because they work on complete demanding
tasks. Self confidence is an outcome of an
entrepreneurship an entrepreneur demonstrates a higher
degree of self confidence when compared to others.
7. Positive motions: The feelings and activeness of
personality are motive forces for all human creations.
The positive motions affect the variables called feelings
and emotions which is a link between them and they are
analyzed in different environments. The positive motion
indicates the positive feeling which promotes creativity.

13. Characteristics of an Entrepreneur
8. Creativity: Creativity performs a link between positive
motion and innovation and also performs a link between
creativity and starting up a new venture. Creativity is
considered as one of the most important factors for
creation of new venture which is created by individuals
and called as entrepreneurs. It includes the outcomes
generated by creativity. Many business ideas are
generated by creativity but the creation should be in such
a way that they are commercially feasible to implement
the ideas into real world. There are few factors
influencing the creation of new ventures.

14. Characteristics of an Entrepreneur
9. Understanding the opportunity: Entrepreneur is
one who explores for changes, responds to it and
searches for an opportunity. The opportunity
describes the area of need or challenge on which the
problems should be focused. And problems should
generate answers to bring the key information and
feelings etc.

15. Types of entrepreneurs
The entrepreneurs can be classified in the following
ways
• Innovative entrepreneur
• Adoptive or imitative entrepreneur
• Fabian entrepreneur
• Drone entrepreneur

16. Types of entrepreneurs
1. Innovative: Innovative entrepreneur is one who assembles and
synthesis information and introduces new combinations of
factors of production. They are characterized by the smell of
innovativeness.
2. Imitative/ Adoptive: Imitative entrepreneur is also known as
adoptive entrepreneur. He simply adopts successful innovation
introduced by other innovators. These entrepreneurs imitate the
existing entrepreneurs and setup their enterprise in the same
manner. Instead of innovating, they just imitate the technology
and methods innovated by others. These entrepreneurs are very
helpful in less developed countries as they contribute
significantly in the growth of enterprise and entrepreneurial
culture in these countries. Further by adopting the technology,
which is already tested, they generate ample employment
avenues for the youth and therefore they are treated as agent of
economic development.

17. Types of entrepreneurs
3. Fabian: The Fabian entrepreneur is timid and cautious. He
imitates other innovations only if he is certain that failure to
do so may damage his business. They are very much skeptical
in their approach in adopting or innovating new technology in
their enterprise. They are not adaptable to the changing
environment. They love to remain in the existing business
with the age –old techniques of production. They only adopt
the new technology when they realize that failure to adopt
will lead to loss or collapse of the enterprise.

18. Types of entrepreneurs
4. Drone: These entrepreneurs are conservative or orthodox in
outlook. They never like to get rid of their traditional
business and traditional machinery or systems of the
business. They always feel comfortable with their old
fashioned technology of production even though the
environment as well as the society have undergo ne
considerable changes. Thus, drone entrepreneurs refuse to
adopt the changes. They are laggards as they continue to
operate in their traditional way and resist changes. His
entrepreneurial activity may be restricted to just one or two
innovations. They refuse to adopt changes in production even
at the risk of reduced returns.

19. Role of Entrepreneurship in
economic development
1. Innovation
2. Risk Bearing
3. Economic Organization
4. Vision
5. Organizing Skills

20. Features of small business
1. Competition:
Small industry can out-compete large industry in certain circumstances and in
selected products. Some of these industries are bricks and tiles, fresh baked
goods, condiments and preserved fruits, goods requiring small engineering
skill, items requiring artistry and craftsmanship.
2. Supplementary:
Small industry can “fill the cracks” between the big volume and standardized
outputs of large factory. Staley mentions a Madras case where a small tricycle
factory flourished alongside a large cycle factory.
3. Components:
A small industry can produce components for a large industry. This is the most
common example of the small manufacturing sector and many of them
function under the protection of big industries. Very often they also derive
the advantage of a protected market with assured supply of their output to
one or more selected large manufactories.

21. Features of small business
4. Initiation:
Small industry can initiate new products and subsequently grow large with
the growth of the product. Staley mentions that many of the automobile
factories started this way in USA. In India, the electronics industry looks like
taking to this pattern of development.
5. Servicing:
Small industry can install service, and repair the products of large industry. In
India these industries are growing in respect of major industries like
refrigerators, radio and TV sets, watches, and clocks, cycles and motor cycles
and motor vehicles in respect of repair, servicing and maintenance.

22. Advantages of small business
1. Flexibility
2. Expertise
3. Uniqueness
4. Satisfaction
5. Personal Service
6. Focus
7. A Great Boss

23. Advantages of small business
• Flexibility: You can react quickly to opportunities.
• Expertise: Your customers appreciate your in-depth knowledge.
• Uniqueness: What you make is distinctive and desirable.
• Satisfaction: You get the buzz of knowing you’ve done a great job.
• Personal Service: You have a much closer relationship with customers.
• Focus: You can hone in on what’s really hot in your sector, and you know
where your opportunities are likely to be.
• A Great Boss: You don’t have to ask all sorts of layers of management
before you make a decision.

24. Setup Small Business
1.Conduct market research
Market research will tell you if there’s an opportunity to turn your idea into a
successful business. It’s a way to gather information about potential
customers and businesses already operating in your area. Use that
information to find a competitive advantage for your business.
2.Write your business plan
Your business plan is the foundation of your business. It’s a roadmap for how
to structure, run, and grow your new business. You’ll use it to convince people
that working with you — or investing in your company — is a smart choice.
3.Fund your business
Your business plan will help you figure out how much money you’ll need to
start your business. If you don’t have that amount on hand, you’ll need to
either raise or borrow the capital.

25. Setup Small Business
4.Pick your business location
Your business location is one of the most important decisions you’ll make.
Whether you’re setting up a brick-and-mortar business or launching an online
store, the choices you make could affect your taxes, legal requirements, and
revenue.
5.Choose a business structure
The legal structure you choose for your business will impact your business
registration requirements, how much you pay in taxes, and your personal
liability.
6.Choose your business name
• It’s not easy to pick the perfect name. You’ll want one that reflects your
brand and captures your spirit. You’ll also want to make sure your business
name isn’t already being used by someone else.

26. Setup Small Business
7.Register your business
Once you’ve picked the perfect business name, it’s time to make it legal and
protect your brand. If you’re doing business under a name different than your
own, you’ll need to register with the federal government, and maybe your
state government, too.
8.Get federal and state tax IDs
You’ll use your employer identification number (EIN) for important steps to
start and grow your business, like opening a bank account and paying taxes.
It’s like a social security number for your business. Some — but not all —
states require you to get a tax ID as well.
9.Apply for licenses and permits
Keep your business running smoothly by staying legally compliant. The
licenses and permits you need for your business will vary by industry, state,
location, and other factors.

27. Setup Small Business
10.Open a business bank account
A small business checking account can help you handle legal, tax, and day-to-
day issues. The good news is it’s easy to set one up if you have the right
registrations and paperwork ready.