Business Entrepreneurship Development powerpoint presentation on Barriers to Entrepreneurship.

1. WELCOME

2. Presented By- Poonam Siyag
B.Tech (CSE)

3. Overview
 What is an entrepreneur?
 Types of entrepreneurs
 Characteristics of an entrepreneur
 Planning to be an entrepreneur
 Need for Entrepreneurship
 Barriers to Entrepreneurship
 Overcoming Barriers

4. Who is a Entrepreneur............

5. ENTREPRENEURE
The term ‘entrepreneur’ is derived from the
French word ‘entrprendre’ which means ‘go
between’ or ‘to undertake’. Thus
an entrepreneur is any person
who undertakes the risk of
establishing and running of a new enterprise.
There are different types of entrepreneurs on
the modes or objectives or ventures. These
classifications are not mutually exclusive.

6. Types of Entrepreneurs…
 1. The skeptical entrepreneur
 This entrepreneur sees the success of others and
immediately starts to question it.
 2. The copycat entrepreneur
 This entrepreneur sees the success of others and tries to
copy them exactly.
 3. The research entrepreneur
 This entrepreneur loves to learn. They research every
possible scenario and outcome for strategies to start or
grow a business.

7. Types of Entrepreneurs…
 4. The determined entrepreneur
 This entrepreneur hasn’t “made it” but they will, no
matter what. They see the value in entrepreneurship,
they see that success is possible without copying, and
they do everything they can to start or grow their
business.
 5. The accomplished entrepreneur
 This entrepreneur has gone through all the stages of
entrepreneurship and building a business, and has
reached success. They are now focused on scaling their
business and leaving a legacy that extends beyond their
lifetime.

8. TYPES OF
ENTREPRENEURS
Entrepreneurship
People with
underused talent
High-growth
businesses
Unemployed
Self- employed

9. Entrepreneurial Characteristics
Being an entrepreneur requires specific characteristics
and skills that are often achieved through education,
hard work, and planning.
Risk Taker
Businesses face risk. Entrepreneurs minimize risk
through research, planning, and skill development.
Perceptive
Entrepreneurs view problems as opportunities and
challenges.
Curious
Entrepreneurs like to know how things work. They take
the time and initiative to pursue the unknown.

10. Entrepreneurial Characteristics
 Imaginative
Entrepreneurs are creative. They imagine solutions to
problems that encourage them to create new products and
generate ideas.
 Persistent
True entrepreneurs face bureaucracy, make mistakes,
receive criticism, and deal with money, family, or stress
problems. But they still stick to their dreams of seeing the
venture succeed.
 Goal-setting
Entrepreneurs are motivated by the excitement of staring a
new business. Once achieved, they seek out new goals or
ventures to try.
 Hardworking
Entrepreneurs need a great deal of energy to see a venture
start and succeed. Yet they are not deterred by the long
hours to achieve their goal.

11. Entrepreneurial Characteristics
Self-confident
Entrepreneurs believe in themselves. Their self-
confidence takes care of any doubts they may have.
Flexible
Entrepreneurs must be flexible in order to adapt to
changing trends, markets, technologies, rules, and
economic environments.
Independent
An entrepreneur’s desire for control and the ability to
make decisions often makes it difficult for them to work
in a controlled environment.

12. Characteristics of Entrepreneurs
Key Personal
Attributes
Strong Managerial
Competencies
Good Technical Skills
Successful
Entrepreneurs

13. Need for entrepreneurship
 Increases national production
 Balanced area development
 Dispersal of economic power
 Reinvestment of profit for the welfare of the area of profit
generation
 Development is a function of motivation and human resource
 Entrepreneurial awareness

14. Be Different

15. Entrepreneurship development

16. Entrepreneur & Small
Business Development
Wedding planning
Uniform Design
Pre Schooling

17. Get Idea
Think
Plan Set Goals
Success

18. Mistakes of Entrepreneurship:
Business entrepreneurship fail because:-
o Management Mistakes
o Lack of Experience
o Poor financial control
o Weak marketing efforts
o Failure to develop a strategic and effective plan
o Uncontrolled Growth
o Poor location
o Improper inventory control
o Incorrect or unsuitable pricing
o The inability of to move into entrepreneurial thinking
mindset

19. The Three-Legged Stool

20. Components
of Success
Networks,
Mentoring and
Coaching
Training &
Technical
Assistance
Youth
Entrepreneurship
Access to
Capital
Supportive
Environment
Successful Entrepreneurship

21. BARRIERS

22. Competitors
• The size of industry
• The number of
competitors/substitutes
• The competitive advantage for each
competitors
• What is your niche market?

23. Why we need to know Barriers…
 An understanding of the inhibiting factors or barriers
will help prospective entrepreneurs to develop a
strategy to overcome them.
 A systematic study of the barriers will lead to a proper
understanding of the fields or areas in which they
occur.
 Once the barriers are clearly identified, the society,
government and other supporting agencies can
develop effective programs to tackle the issues to
create a conducive entrepreneurial climate.
 An insight into the barriers will lead to insight into the
entrepreneur’s personality that is so essential in the
process of entrepreneurship

24. Types of Barriers -
 Entry Barriers
 Environmental barriers
 Communication Barriers
 Personal barriers
 Social barriers
 Cultural barriers
 Political environment

25. Barriers to entry and exit
Block potential entrants from
making a profit
Protect the monopoly power of
existing firms
Maintain supernormal profits in
the long run
Barriers to entry make a market
less contestable

26. Barriers to entry and exit
 Statutory (legal) barriers
 Licences (e.g. professional qualifications, banking
licences, licences to sell alcohol, taxis, run a night club
or a casino)
 Patents (e.g. In the pharmaceutical industry and in
telecommunications)
 Copyrights and Trademarks
 Public franchises e.g. Rail franchises, national lottery
 Tariffs, quotas and other trade restrictions affecting
imports of goods and services

27. Environmental Barriers
The economic environment can create
barriers for an entrepreneur because of
the following reasons:
 The capital for setting up the new venture
is not accessible for the entrepreneur
 Non-availability of labour at reasonable
cost.
 If the labour market is unreliable and is
fraught with undisciplined and
selfishness, it will also become a barrier
for entrepreneurship.

28. Environmental Barriers
 Shortfall in the availability of raw materials in the
desired quality and quantity.
 Inadequate infrastructure to transport the raw
material to the factory.
 Non-availability of easy access to the market for the
finished goods.

29. Communication Barriers

30. Communication Barriers
 Lack of open, honest, and effective communication, both
from the top down and from the bottom up.
 Communication is not just talking, but also listening,
writing, body language, and “actions speak louder than
words.”
 Unclear frame of reference. Whenever you discuss any
start-up matter, the receivers will view it from their
particular frame of reference, including their values, their
priorities, and their background.
 Technical semantics and jargon. Jargon only has
meaning if the symbols are already understood. If an
abbreviation or phrase is not commonly used outside a
specific group, or experts, it becomes negative
communication

31. Types of Communication Barriers:

32. Personal Barriers
 The personal barriers to entrepreneurship can be
classified into two types:
 Motivational : Once the venture starts functioning, the
obstacles faced in the initial stages can make the
entrepreneurs to lose their commitment and consequently
their level of motivation dips. The entrepreneurs who lack
toughness and perseverance often quit.
 Perceptional : Certain perception barriers can hamper the
progress of the entrepreneur. Lack of a clear vision and
misunderstanding can result in faulty perception. If the
entrepreneur demands everything to be clear and well-
defined in order to develop a perception, it will lead to
disappointment. As entrepreneur’s world is basically
disorderly and ambiguous, the people who excessively depend
on order will find it a barrier to entrepreneurship.

33. Personal Barriers
Unwilling to invest money
Lack of confidence
Lack of motivation
Lack of patience
Inability to dream
Psychological Barriers
• Security
• Dignity
• Peace of mind etc.

34. Social Barriers
 The following are the examples of barriers
arising out of social environment:
 A society putting premium on safety and security in
matters of securing a livelihood, such a value can
become a strong social barrier to entrepreneurship.
 In some societies, the business is considered as a
profession of lower hierarchy. Business people are
considered inferior to office-goes, engineers, doctors etc.
Such a social response to entrepreneurs can be a big
hurdle in developing and nurturing entrepreneurs.
 A society denying access to self-esteem will be placing
hurdles in the path of an entrepreneur.

35. Social Barriers
 Social factors such as
insistence on conformity
an excessive protective attitude among
children during their formative years
discouragement to mobility
 will all thwart the following essential
values of entrepreneurship.
creativity
innovative spirit
sense of adventure.

36. Cultural Barriers
 Cultural barriers to entrepreneurship in our
society are due to the fact that the cultural values
in our society are bound by:
conventionalism
status-quo
rituals
strong cultural taboos etc.
 All these cultural hindrances to entrepreneurship
may curb the entrepreneurial spirit.

37. Cultural Barriers
 For instance, in the past, some societies in
India discouraged people from going abroad
believing that crossing the sea was a cultural
taboo. Similarly certain field of work were
considered unsuitable for people of certain
culture.
 One other example is that in certain cultures,
where in taking loans for interest is forbidden,
becomes a major barrier if the major sources of
loans are interest charging banks.
 Such strong cultural dictates (Order) can act as
barriers to entrepreneurship.

38. Various Aspects of Culture:-

39. Political Environment
The political environment can work
against the interest of entrepreneurs in
the following ways:
 A political environment that is
characterised by instability and insecurity
will discourage entrepreneurs.
 Political policies can retard the growth of
entrepreneurial ventures in a country.
 Excessive interference in the form of
controls, delays etc. from the government
can discourage prospective entrepreneurs.

40. Overcoming Entrepreneurial
Barriers
How do some start-ups find a way to
get through problems that cause
others to throw in the towel? They
figure out how to recover after a
failed product launch, speed up
cash flow during tough times,
withstand the threats from new
competition, hire the right
employees and find new customers.

43. 1)On the basis of Economy
Economics:
In a domestic business strategy, the entire
country is organized under a single economic
system and has the same currency.
The variation and availability of technology are
often surprising.
Identify opportunities for domestic and
international expansion.
Going Global can increase one’s interest and
Helps in foreign exchange.

44.  Internal Factors:
 Desire to do something
 Education Background
 Experience
 External Factors:
 Government assistance and Support
 Availability of raw material and labour
 Encouragement from big business
houses
 Promising demand for the product
2)ON THE BASIS OF MOTIVATION

45. 3) ON THE BASIS OF TECHNOLOGY
 Staying on top of frequent, large-scale changes for
Social Status and Reputation in the Society.
 Using new machinery for better look and feel.
 Entrepreneurs can use technology to:
 Focus on strategy
 Improve efficiency
 Mitigate compliance risk
 Increase employee satisfaction and engagement
 Tech can form the foundation you need to step back
and think big, developing the right strategy to power
your growth.

46. OTHER CLASSIFICATIONS
4)ACCORDING TO GENDER AND AGE
 There shouldn’t be gender
 or age differences
 Promoting women entrepreneurship
 Women entrepreneurs bring particular sets of skills
that not only set them apart from their male
counterparts, but also lend themselves to being
successful entrepreneurs.

47. BARRIERS TO INTERNATIONAL TRADE
General Agreement on Tariffs and
Trade (GATT)
Established in 1947 under U.S.
leadership; includes over 100 nations.
Objective - To liberalize trade by
eliminating or reducing tariffs,
subsidies, and import quotas.

48. BARRIERS TO INTERNATIONAL TRADE
Entrepreneur’s Strategy and Trade Barriers
Trade barriers increase entrepreneurs’ costs of exporting
products or semi finished products to a country.
Voluntary export restraints may limit entrepreneurs’
ability to sell products in a country from production
facilities outside the country.
Entrepreneurs may have to locate assembly or production
facilities in a country to conform to local content
regulations.

49. Things to do…
Take Risk Do Some Research
Use Technology and
Network

50. CONCLUSION
It is often said that “economy is the effect for
which entrepreneurship is the cause". The
development of economy is usually
associated with its industrial development.
An entrepreneur is a person who organises
the factors of productions-land, labour and
capital, and establish a business venture and
carries out the operations in the business in
a profitable manner.