2. Entrepreneurship Management
Subject Code : 4.3
Total Marks : 100
External : 60 Marks
Internal : 40 Marks
Inclusion & Considerations
Attendance : Not less than 75%
Class Test : Better 2 out of 3
Case Study : Presentation
Discipline : Sincerity & Obedience
Participation : Effective
3. Who is an entrepreneur ?
Dictionary : One who recognizes and manages only enterprise specially
involving high risk.
Economist : One who brings resources, labour, raw materials and other
assets into combinations that increase their value from before
and also one who introduces changes, innovations and a new
order.
Psychologists : One who is typically driven by some forces, which create a
desire to obtain or attain something.
Sociologists : One whose actions would determine his social status and who
contributes to the development of society.
Management : One who has a vision and generates an action plan to achieve
it.
The word “Entrepreneur” has been derived from the French word ‘Entrependre’
which refers individuals who are ‘undertakers’ (i.e. those who ‘undertook’ the
4. Entrepreneur Vs Entrepreneurship
Entrepreneur Entrepreneurship
Refers to a person Refers to a process
Visualizer Vision
Creator Creation
Organizer Organization
Innovator Innovation
Technician Technology
Initiator Initiative
Decision Maker Decision
Planner Planning
Leader Leadership
Motivator Motivation
Programmer Action
Risk Taker Risk Taking
Communicator Communication
Administrator Administration
5. Entrepreneur Vs Manager
Parameter Entrepreneur Manager
Primary Motive Independence, Creative
opportunity & economic
Profit
Promotion and other
traditional corporate
rewards such as
increments, perks, power
and control over team
Activity Direct involvement in all
areas of management &
business
Delegates & Supervises
rather gets directly
involved. Does not
consider aspects of the
business or management
that are outside his job
definition
Attitude towards Failure
and Mistakes
Takes full responsibility
and tries to correct
mistakes and overcome
failures
Tries to avoid mistakes
and failures. May be
cautious to the point of
inaction if the risk is too
high
Risk Taking Character Moderate to high risk taker.
More risk More profit.
Low risk taker.
6. Entrepreneur Vs Manager
Parameter Entrepreneur Manager
Decision making
capabilities
Takes all decision to follow
his dream
Agrees with company’s
policies and those above in
the corporate hierarchy
Family Background Comes from a with a
history of entrepreneurs or
small business May even
come from farming
background.
Comes from a family
whose members generally
work for large corporations
or the government
Relationship with others Basis of relationship with
others is transactions and
deal making; To define his
own hierarchy.
Relates to others within the
existing hierarchy.
Relationship with each
other
Must have managerial
skills. Management is a
subset of entrepreneurship
Manager cannot be an
entrepreneur
Age In males it is generally 25
to 35 and among females it
is between 35 to 45.
Depends upon
qualification, experience
and performance.
7. Entrepreneur Vs Entrepreneurship
Entrepreneur Entrepreneurship
Entrepreneurs are people with vision who
recognize and pursue opportunity, create
and establish business or new ventures,
take into account the risk involved, have
control over the present and future and
have the flexibility to change and adapt
with the changing times.
Entrepreneurship is the pursuit of a
discontinuous opportunity involving the
creation of an organization (or sub-
organization) with the expectation of
value creation to the participants.
An entrepreneur is a person who
visualize a particular business venture
and then goes on to create it. Basically,
the person is the originator of a new
business venture and a new organization
for that venture.
Entrepreneurship is the means by which
new organizations are formed with their
resultant job and wealth creation. The
necessary condition that the organization
created, actually provides goods and/or
services to society, not merely to internal
consumption.
The entrepreneur is that individual (or
team) which identifies the opportunity,
gathers the necessary resources, creates
and is ultimately responsible for the
performance of the organization.
Entrepreneurship is the process of
creating value by bringing together a
unique package of resources to exploit an
opportunity.
8. Importance of Entrepreneurship
► It helps in overcoming the problems of population, unemployment,
underemployment and hidden unemployment.
► It is the key to economic development.
► It helps in harnessing youth vigour.
► It provides greater and varied employment opportunities.
► Entrepreneur is a business leader who plays a pivotal role in fostering
economic growth and development.
► The paves the way for industrial development.
► Entrepreneurship helps in solving the problems of monopoly and
balanced regional development.
► It helps in increasing the per capita income and hence the life style.
► It helps in higher individual savings and hence more purchasing power.
► It provides more revenue for the government in the form of income tax,
sales tax, export duties, import duties etc.
► It guides the direction for national economics, industries and markets.
► It introduces quantum leaps in technology and more productive use of
resources.
► It guides innovations, creativity and wealth creation.
9. Advantages / Benefits of an Entrepreneur
☻Your own boss and boss to others.
☻Your decision will guide the success or failure of the enterprise
☻You will have the chance to put your ideas into practice.
☻You will make money for yourself rather than for somebody else
☻ You have to participate in every aspect of the enterprise thus to
learn and gain practical experience in varied business discipline
☻You will work in the area of your choice and thus enjoy your job
☻You will get personal satisfaction of running a business and
to develop self confidence.
☻You will contribute in providing job for others.
☻You develop your own action plan for execution.
☻You will work directly with your customers and do projections.
☻ You will contribute in raising the life style and radical change
10. Disadvantages / Risk of an Entrepreneur
► Alone performer
► Solitary decision maker
► All may be a loser at the end.
► Work may not be satisfying.
► Not able to change job frequently.
► Long working hours.
► Lack of success will hamper enthusiasm.
► To remain in business will be difficult.
► May disturb family and social life.
► Risk of career, finance and more uncertainty.
11. Reason for growth of Entrepreneurship
■ Industrial Structure
■ New Technologies
■ Deregulation & Privatization
■ Formation of Business Communities
■ Increasing demand for variety / Changing choice
■ Growth and need of the service sector
■ Government Subsidies and Incentives
■ Increasing flow of Information
■ Easy access to resources
■ Entrepreneurial education
■ Return on Innovation
■ Entrepreneur regarded as a hero
■ High regard for self employment
■ Rising dissatisfaction at job
■ Acceptance of ex-entrepreneur in job market
12. Characteristics / Personality of an
Entrepreneur
☻ Always takes initiative
☻ Translates opportunity into reality
☻ Determined to face the situation / Optimistic
☻ Information seeking from all corners / Realistic
☻ Demand for quality and efficiency / Value Product
☻ Risk taking – Financial, Social, Psychological
☻ Goal setting
☻ Commitment to work / Long working hours
☻ Systematic planning and monitoring / Organized
☻ Self belief, Persuasion and networking
☻ Independent & self confidence but not over confident
13. ☻ Respect for work
☻ Always innovative
☻ Perception of economic opportunity
☻ Imagination and creativity
☻ Believe in changing the business environment
☻ Enjoy freedom of expression and action
☻ Gain satisfaction from completion of work
☻ More motive to achieve than mere competitiveness
☻ Readily takes feedback
☻ Invite constructive criticism
☻ Reports a good relationship with father
☻ Makes the economy more competitive
☻ Does not particularly stand out in crowd
14. Role in Economic Development
• Generation of more employment
• Economic reforms
• Delicensing of industries
• Lowering of interest rates
• Formulation of outsourcing culture
• In balancing regional development
• Optimum utilization of natural resources
• In capturing market opportunities
• In overall economic development
• Lowering the load of job market
• Providing options for job seekers
• Further encouraging intrapreneurs
15. Entrepreneurs Vs Intrapreneurs
Entrepreneurs Intrapreneurs
Owner / Operator An Employee
Implements own or other’s ideas Shares own ideas, seeks approval
Expects always financial profits Remuneration / Recognition / Reward
Takes extreme risks Calculated risk
Profit goes to the entrepreneur Profit for the organization
Needs to encourage intrapreneur Way to improve company performance
Education and experience less concern More concern or a must
Inclined more towards consumer sales More inclined towards B 2 B products
Generally at age between 30 – 40 Most often after 40
Involvement in all business areas Major areas and the delegated areas
Full responsible of failure / success Tries not to take failure
Correct mistakes and tries to overcome Avoids risky projects as much possible
Generally from entrepreneur or
business family or background
Mostly salaried and rarely entrepreneur
Generally defines his own hierarchy Depends on the existing hierarchy
16. Environment for an Intrapreneur
• To operate on the frontiers of technology
• To encourages new ideas
• To encourage trial and error
• To allow failures
• Not to try to place any parameters & opportunities
• To make resources available to all
• To have a multidisciplinary team based approach
• To have a long time horizon for product development
• To have an appropriate reward system
• To provide sponsorship and mentorship
• The top management needs to support the efforts of
an intrapreneur
