Entrepreneurship

1. ………………………………....

2. THE PEOPLE WHO GET ON THIS
WORLD ARE THE
PEOPLE WHO GET UP AND LOOK
FOR CIRCUMSTANCES
THEY WANT, AND IF THEY CAN’T
FIND THEM, THEY MAKE THEM
GEORGE BERNARD SHAW

3. WHY ENTREPREURSHIPWHY ENTREPREURSHIP
THE CORE QUESTION IN EVERY ONE’S MIND….
WHY ENTREPRENEURSHIP AFTER 1.5 YRS
▓ It is presumed that you are matured enough to understand nuances of
business and you may like to take entrepreneurship as a career
▓ Even though you may not opt entrepreneurship as career, study of
entrepreneurship gives you an insight how entrepreneurs think and act.
▓ As a manager, if you have to be successful, you need to think, act and work
like an entrepreneur.

4. People are afraid of the future, of the unknown.
If a man faces up to it, and takes the dare of the
future, he can have some control over his
destiny. That’s an exciting idea to me, better
than waiting with everybody else to see what’s
going to happen.
---John Glenn

5. CONCEPTSANDDEFINITIONS-ENTREPRENEUR,CONCEPTSANDDEFINITIONS-ENTREPRENEUR,
ENTREPRENEURSHIPENTREPRENEURSHIP,
CONCEPTSANDDEFINITIONS-ENTREPRENEUR,CONCEPTSANDDEFINITIONS-ENTREPRENEUR,
ENTREPRENEURSHIPENTREPRENEURSHIP,

6. ENTREPRENEUR
An entrepreneur is a person who starts an enterprise. He searches for change and
respondsto it.
The economists view him as a fourth factor of production along with land labour
and capital.
Thesociologistsfeel that certain communitiesand culturespromote
entrepreneurship
Still others feel that entrepreneurs are innovators who come up with new ideas for
products, marketsor techniques.
To put it very simply an entrepreneur is someone who perceives
opportunity, organizes resources needed for exploiting that opportunity
and exploits it.

7. Entrepreneurship has been understood to mean, among other things: ‘the ability to
create and build something from practically nothing’ (J.A. Timmons, “The
Entrepreneurial Mind”, 1989);
‘the creation of new economic opportunities’ (Wennekers and Thurik, “Linking
Entrepreneurship and Economic Growth”, 1999);
‘creating and managing vision and demonstrating leadership’ (Wickham, “Strategic
Entrepreneurship: A decision making approach to new venture creation and
management”, 1998, page34);
‘the ability to see and evaluate business opportunities’ (Meredith, “The Practice of
Entrepreneurship”, 1982, page3;
An ability to assemble or reassemble from what is available into a new kind of activity’
(Peter Marris, ‘The Social Barriers of African Entrepreneurship’, Journal of Developing
Societies, October, 1968, asquoted in ThomasA. Timberg,

8. Entrepreneur isa French word (Noun) which means:Contractor
Entrepreneur isaperson who starts/undertakesany ventureand Would liketo
‫۝‬Makethingshappen
‫۝‬Havehisown way of doing things
‫۝‬Pull together eventsand situationsthat may appear bizarreto Averageperson
EntrepreneurEntrepreneur

9. John Stuart Mill...describes an entrepreneur as a
business founder
“A Treatise on Political Economy”...describes
an entrepreneur as one who possessed certain
arts and skills of creating new economic
enterprises, yet a person who had exceptional
insight into society’s needs and was able to fulfill
them. Influences society and is influenced by it.
Entrepreneur

10. 1725: Richard Cantillon: An entrepreneur is a person who pays a certain price for a
product to resell it at an uncertain price, thereby making decisions about obtaining and
using theresourceswhileconsequently admitting therisk of enterprise.
1803: J.B. Say: An entrepreneur is an economic agent who unites all means of production-
land of one, the labour of another and the capital of yet another and thus produces a
product. By selling theproduct in themarket hepaysrent of land, wagesto labour, interest
on capital and what remains is his profit. He shifts economic resources out of an area of
lower and into an areaof higher productivity and greater yield.
1934: Schumpeter: According to him entrepreneurs are innovators who use a process of
shattering the status quo of the existing products and services, to set up new products, new
services.
1961: David McClleland: An entrepreneur is a person with a high need for achievement
[N-Ach]. Heisenergetic and amoderaterisk taker.

11. 1964: Peter Drucker: An entrepreneur searches for change, responds to it and
exploits opportunities. Innovation is a specific tool of an entrepreneur hence an
effectiveentrepreneur convertsasourceinto aresource.
1971: Kilby: Emphasizes the role of an imitator entrepreneur who does not
innovate but imitates technologies innovated by others. Are very important in
developing economies.
1975: Albert Shapero: Entrepreneurs take initiative, accept risk of failure and
havean internal locusof control.
1983: G. Pinchot: Intrapreneur is an entrepreneur within an already established
organization.

12. An individual does not have to invent
something to be considered entrepreneur an
individual can pick up something that
already exists and make it different-By
his/her innovativeideas
Entrepreneur

13. EntrepreneurEntrepreneur
E: Examines Needs & wants of the society at large for which he/she feels
some solution can be found to satisfy these needs/wants
N:Narrows the possible opportunities down to specific opportunities
T: Thinks of Innovative Ideas
R: Researches the opportunities and ideas thoroughly
E: Enlists the best source of advice and assistance that can be found
P: Plans the venture and looks for the possible problems that may arise on
setting of the venture
R:Ranks the Risks and Possible Rewards
E:Evaluates the Risks/Possible rewards & makes Decision
N:Never hangs on an idea , if research shows it would not work
E:Employs Resources necessary for venture
U:Understands that any venture will take a great deal of long & hard work
R:Realizes a sense of accomplishment from successful ventures and
learns from failures.

14. ENTREPRENUERSHIPENTREPRENUERSHIP

15. EntrepreneurshipEntrepreneurship
Is a dynamic process of creating incremental
wealth. This wealth is created by individuals
who assume the major risks in terms of equity,
time and career commitment of providing value
for someproduct or service
The entrepreneur must somehow infuse value to
theproduct or service...

16. “Entrepreneurship is more of an 'art form' than a
lot of people give it credit for...I think that you
are a business producer...Just as Steven Speilberg
creates movies, I think that entrepreneurs create
businesses... it isjust adifferent canvas.”
Tim DeMello '81 ,Streamline.com
EntrepreneurshipEntrepreneurship

17. Entrepreneurship can be described as a process of action an entrepreneur
undertakes to establish hisenterprise. Entrepreneurship is acreativeactivity. It is
the ability to create and build something from practically nothing. It is a knack
of sensing opportunity where others see chaos, contradiction and confusion.
Entrepreneurship is the attitude of mind to seek opportunities, take calculated
risks and derive benefits by setting up a venture. It comprises of numerous
activitiesinvolved in conception, creation and running an enterprise.
According to Peter Drucker Entrepreneurship is defined as ‘a systematic
innovation, which consists in the purposeful and organized search for changes,
and it isthesystematic analysis of theopportunities such changesmight offer for
economic and social innovation.

18. EntrepreneurialCultureEntrepreneurialCulture

19. EntrepreneurialCultureEntrepreneurialCulture
Culture refers to set of values, Norms and traits that are prevalent in any society and
entrepreneurial Culture is set of values, norms and traits that are conducive for its growth
in a country. It is this culture, which focuses on the emergence of new opportunities, the
meansof capitalizing on them and creation of structureappropriate for pursuing them. The
differencebetween administrativeand entrepreneurial cultureisbetween what resourcesto
control and whereistheopportunity ?
When we say what resources to control, we talk about ADMINISTRATIVE CULTURE
and then we talk about opportunity, we are talking about ENTREPRENEURIAL
CULTURE

20. ROLE OF ENTREPRENEURSHIP IN ECONOMIC
DEVELOPMENT
The industrial health of a society depends on the level of entrepreneurship
existing in it.
A country might remain backward not because of lack of natural resources or
dearth of capital [as it is many times believed] but because of lack of
entrepreneurial talents or it inability to tap the latent entrepreneurial talents
existing in that society.
Entrepreneurs historically have altered the direction of
national economies, industry or markets. Japan, Singapore, Korea, Taiwan to
name a few.

21. Entrepreneurship is basically concerned with creating wealth through production of
goods and services. This results in a process of upward change whereby the real per
capita income of a country rises or in other words economic development takes place.
Thus entrepreneurial development is the key to economic development. In fact it is
one of the most critical inputs in the economic development of a country.
It speeds up the process of activating factors of production leading to a higher rate of
economic growth, dispersal of economic activities and development of backward
regions.

22. Entrepreneurship injects entrepreneurship by starting a chain reaction when
the entrepreneur continuously tries to improve the quality of existing goods
and services and add new ones.
For Example: when computers came into the market there was continuous
improvement in the models, their functions etc. like first generation computers,
personal computers, laptops, palmtops etc.
Not only had this fostered the development of the software industry, computer
education institutes, computer maintenance and stationery units etc. but also
other industries like banking, railways, education, travel, films, medical and
legal transcriptions, business process outsourcing [BPOs] etc.
By harnessing the entrepreneurial talent a society comes out of traditional
lethargy to modern industrial culture.

23. Some Specific areas
•Creating/Generating employment
•Innovation
•Development of the areas/Regions in which
industry is setup
•Developing culture of entrepreneurship
•Wealth generation……………………
etc

24. DIFFERENCE BETWEEN
ENTREPRENEUR AND
ENTREPRENEURSHIP

25. The term entrepreneur is used to describe men and women who establish and
manage their own business. The process involved is called entrepreneurship.
Entrepreneurship is an abstraction whereas entrepreneurs are tangible people.
Entrepreneurship is a process and an entrepreneur is a person. Entrepreneurship is the
outcome of complex socio-economic, psychological and otherfactors.
Entrepreneur is the key individual central to entrepreneurship
who makes things happen. Entrepreneur is the actor, entrepreneurship is the act.
Entrepreneurship is the most effective way of bridging the gap between
science and the market place by creating new enterprises. An entrepreneur is the
catalyst who bringsabout thischange.

26. FUNCTIONS OFAN ENTREPRENEUR

27. An entrepreneur frequently has to wear many hats. He has to perceive opportunity,
plan, organize resources, and oversee production, marketing, and liaison with
officials. Most importantly he has to innovate and bear risk. The main functions of
an entrepreneur areasfollows:
Innovation: Innovation is one of the most important functions of an entrepreneur
according to Schumpeter. An entrepreneur uses information, knowledge and intuition to
come up with new products, new methods of reducing costs of a product, improvement
in design or function of a product, discovering new markets or new ways of
organization of industry. Through innovation, an entrepreneur converts a material into a
resource or combinesexisting resourcesinto new and more productiveconfigurations. It
is the creativity of an entrepreneur that results in invention [creation of new knowledge]
and innovation [application of knowledge to create new products,services or processes.]
Systematic innovation meansmonitoring thefollowing for innovativeopportunity:

28. 2. Risk and uncertainty bearing: According to Hozelist an entrepreneur
performs the function of risk and uncertainty bearing. Every decision pertaining
to development of new products, adapting new technologies, opening up new
markets involves risk. Decision-making in an environment of uncertainty
requires anticipation of risk. Profit is said to be the reward for anticipating and
taking such risks. However it is pertinent to mention that the entrepreneur is not
a gambler, he only takes calculated risks. An entrepreneur develops the art of
decision-making under conditionsof uncertainty asa
matter of survival.
3. Organization building: An entrepreneur has to organize men, material and
other resources. He has to perform the functions of planning, co-ordination and
control. He has to use his leadership qualities to build a team, generate
resources and solve problems. With his organizational skills an entrepreneur
buildsan enterprisefrom scratch, nurturesit and makes it grow. Hisvision sows
the seeds for a sound and vibrant organization and synergies are built in the
enterprise.

29. ENTREPRENEUR vs. MANAGERENTREPRENEUR vs. MANAGER
RELATIONSHIPRELATIONSHIP

30. Entrepreneur Manager
An entrepreneur is involved with the
start-up process
A manager with running thebusiness
over along period of time
An entrepreneur assumesfinancial,
material and psychological risks
A manager doesnot haveto bear risks
An entrepreneur is driven by perception
of opportunity
A manager by theresourceshe
currently possesses
An entrepreneur initiateschange A manager followsrules& procedures
An entrepreneur ishisown boss A manager isahired employee
An entrepreneur getsuncertain rewards A manager getsfixed rewardsand
salary

31. The Idea Realizing the
opportunity
Engaging
the idea &
opportunity
Exploiting the
opportunity
to build
something of
value
The Inventor
The Opportunity Spotter The Project Champion

32. Entrepreneurs...TraitsEntrepreneurs...Traits

33. Entrepreneurs...Traits
Self-confident and optimistic
Able to take calculated risk
Respond positively to changes
Flexible and able to adapt
Knowledgeable of markets
Able to get along well with others
Independent minded

34. Entrepreneurs...Traits II
Energetic and diligent
Creative, need to achieve
Dynamic Leader
Responsive to suggestions
Take initiatives
Resourceful and persevering
Perceptive with foresight
Responsive to criticism

35. ENTREPRENEURS BEHAVE DIFFERENTLY BECAUSE
THEY...
•Risk their own money
•Must find customers to survive
•Organize their own work
•Are vulnerable to economic change
•Have income that varies with market success
•Make all the final decisions
•Need a wide range of management skills
•Handle diverse activities at the same time
•Depend on their own ability to market and sell
•Work longer hours...at least at first
•Are open to change as a necessity of existence

36. ENTREPRENEURIAL COMPETENCIESENTREPRENEURIAL COMPETENCIES

37. Competency
A Competency is an underlying characteristic of a person which enables
him /her to deliver superior performance in a given job, role or a
situation.
They consist of clusters of knowledge, attitudes and skills that affect an
individual’s ability to perform.

38. COMPETENCIESCOMPETENCIES
Initiative- acting out of choice rather than compulsion, taking the lead rather
than waiting for others to start.
Sees and Acts on Opportunities- A mindset where one is trained to look for
business opportunities from everyday experiences.
Persistence- A ‘never say die’ attitude, not giving up easily, striving
Information seeking continuously until success is achieved.
Knowing- Knowing who knows, consulting experts, reading relevant material
and an overall openness to ideas and information.
Concern for High Quality of Work- Attention to details and observance of
established standards and norms.
Commitment to Work Contract- Taking personal pains to complete a task as
scheduled.
Use of Influence Strategies- Providing leadership.
Monitoring- Ensuring the progress of the venture as planned.

39. Problem solving-Observing the symptoms, diagnosing and curing.
Self-confidence- Not being afraid of the risks associated with business and relying
on one’s capabilities to successfully manage these.
Assertiveness- Conveying emphatically one’s vision and convincing others of its
value.
Persuasion- Eliciting support of others in the venture.
Efficiency Orientation- Concern for conservation of time, money and effort.
Systematic Planning- Breaking up the complex whole into parts, close
examination of the parts and inferring about the whole; e.g. simultaneously
attending to production, marketing and financial aspects (parts) of the overall
business strategy (the whole).

40. Types of Entrepreneurs

41. There are probably as many different types of entrepreneurs
as there are people, since one of the great joys of being an
entrepreneur is the freedom to invent and re-invent yourself
and your business to meet your requirements and the needs
of the market in which you operate. That’s why agility,
flexibility and future focus are clear advantages to successful
entrepreneurs and most would resist being placed in any kind
of box, and often defy description in the breadth and diversity
of their activities.
Steve Blank talks about “The Four Types of
Entrepreneurship” Who is an entrepreneur really? It turns out
that there are four distinct types of entrepreneurial
organizations; small businesses, scalable startups, large
companies and social entrepreneurs. They all engage in
entrepreneurship. Yet entrepreneurs in one class think that
the others aren’t the “real” entrepreneurs

42. There are a number of general categories by which entrepreneurs
can be loosely described,
Social Entrepreneurs
A rapidly growing and vibrant sector, social entrepreneurs play an
important role in providing products and services with the overall intention
of creating social good, operating from a triple bottom line perspective of
people, planet, profit. Profit is often reinvested into the enterprise rather
than being distributed to shareholders.
Serial Entrepreneurs
Serial entrepreneurs set up businesses, and bring them to a stage of
development where they can move on either by selling according to a pre-
determined exit strategy, or place the enterprise in the hands of a successor or
group of successors whilst retaining some degree of investment and/or strategic
input, whilst they start their next venture, with a view to repeating the process
again.

43. Lifestyle Entrepreneurs
Lifestyle entrepreneurs choose businesses that reflect their passions and
they are more focused on doing something they love than on the pure
profit motive for starting a business. This includes making deliberate
choices to fit a business around a way of living, for example preserving
time with children and family, for a hobby or interest, a sport, or some
other element of their life which they wish to retain a place of importance.
Solopreneurs
The ‘one man band’ – An individual who operates alone in an
enterprise and manages all aspects of the business
themselves. Increasingly possible and prevalent with the
advent of the internet, email, VOIP, etc and the consequent
ability to perform multiple tasks, coupled with the ease of
outsourcing to other freelancers through the ready supply
available through websites.

44. WHAT MOTIVATES ENTREPRENEURS

45. Why Entrepreneurial Motivation
An Entrepreneur is essentially an individual, who has specialCompetencies which
transform him from an ORDINARY INDIVIDUAL to AN ENTREPRENEUR
An Entrepreneur is always under sustained pressure because of the nature of his job,
hence sustained Motivation is required to accomplish his job

46. what motivates an entrepreneurwhat motivates an entrepreneur.
Different TheoriesDifferent Theories
•Need Hierarchy Theory propounded by Maslow
•Two-Factor Theory given by Herzberg and
.

47. McClelland who is regarded as the father of the study of
entrepreneurial motivation has given
Three main Motivation factors for their motivation:
•Need for Achievement (N-Ach.),
•Need for Power (N-Pow)
•Need for Affiliation (N-Aff.).
However, it is the N-Ach. That finds the pride of its place in
entrepreneurship literature, so much so that achievement
motivation is considered synonymous to entrepreneurial
motivation.

48. Need for Achievement
Entrepreneurial behavior is so much singularly attributed to
this need that one may just stop short of taking
entrepreneurial motivation and achievement motivation as
synonymous. N-ach. Concerns issues of excellence,
competition, challenging goals and overcoming difficulties.
A complete achievement sequence would comprise, “…
defining the problem, wanting to solve it, thinking of
means to solving it, thinking of difficulties that get in the
way of solving it (either in one’s self or in the
environment), thinking of people who might help in
solving it, and anticipating what would happen if one
succeeded or failed.”

49. •They are determined to finish a project once undertaken Even
under difficult conditions
•They are able to examine themselves and their ideas Impartially,
never slipping into complacency
•They don’t blame others or make excuses for their own
Failures/Errors
•Their aspirations and expectations are always rising
•They have good grasp of general economic concepts
•They have the ability to make the very best use of resources at
hand

51. Million dollar company built on a failure
He started his first Internet Company, Radio FM, a streaming
online radio portal, when he was a mere 17 year old.
His father was not happy that his teenaged son was wasting
most of his time online, rather than preparing for his exams.
His stand was vindicated when his son's maiden venture failed
to produce any profits.
Vishal Sampat, CEO of Convonix.com wasn't about to give
up. He maintained his faith in the Internet, and transformed
Radio FM into Khopcha.com which, in turn, became the
genesis for Convonix.com, a search engine optimization
company.
Convonix is a one million dollar company and by 2008-2009,
Vishal is confident of doubling his company's turnover.
Vishal Sampat

52. Million dollar company built on a failure-Contd
Started his first online radio streaming business in 1999-2000
The reason he started the venture was that he believed there was a huge audience
abroad who would be interested in Indian music and, for that matter, in knowing
what's happening back in their own country?
A cousin of his who was into radio got for him some audio capsules which he could
play in between the 20-30 minute programme. They used to have songs as well as
the RJ (Radio jockey) capsules in the middle

53. Basically, none of the people who were with him knew what they
were doing and Vishal had no money. So what they did was they
got free space from various free web hosting companies that
operated at that time, like Geocities. They managed to get the load
balanced with these servers and got their online music channel
going.
He invested Rs 3,000-4,000, with his father footing the Internet
bills , which at that time was very expensive. His father wasn't
very happy about that.
He did not make any profit. He did succeed in getting around six
and a half million visitors, but it was too expensive to carry out
this business online. Being in college and having no sense of
economy helped them make no profits. Finally, this website
transitioned into another website named khopcha.com, a portal
for teenagers.

54. What inspired him to start the streaming online music portal then?
It was something that just struck to them. It was huge market that
was waiting to be tapped. The late 1990s and the early 2000s was
an era of the dot com boom and everybody wanted to be online
then. This venture was something that they thought they might try
and make a lot of money out of, which actually didn't happen.
What did He learn or gain from this failure?
He does not call it a failure as such.? It was lot of fun. When Radio
FM and khopcha were both online, he did not have money to market
the product and services they offered online. This was the genesis
of his current venture
He used search engines to market both the services; He used
online portals; He learned about banner exchanges; all kinds of
online marketing tools. This experience helped him a lot in offering
various products under the Convonix .

55. Convonix's business model
Main business of Convonix is, search engine optimization or SEO
Suppose a bank wants to sell credit cards. When people search for
such services online, they get a list of links on which they click to avail
the service. What Convonix do is they consult the banks that want to
do business online and get maximum traffic directed to their portal.
The org identifies who is searching for their products and services,
estimate the number of searches, what are the key words they are
using for their search and where they are looking out for their
requirements
Other Business is :paid advertising business.

56. The company has around 50 employees spread
across our two offices in Mumbai. In 2007, the
company purchased a new 10,000 sq ft office in
Navi Mumbai that will help them to triple the
headcount

57. Interesting journey from an online radio streaming business to a one
million dollar company Convonix?…in his own words:
It was indeed an exciting and interesting journey to begin with. Every day we
learn something new, and adapt it to improve our businesses. Initially, when I
started Radio FM, people didn't know what I was doing. To add to it I wasn't
making any money from the business. And I was wasting a lot of time online,
according to my dad, instead of studying . That was difficult, but from 2002-2003
when I started explaining to people about my first business the germ of
Convonix started taking roots.
It was me and,two of my colleagues from my engineering college, Pallav Jain
and Sarfraz Khimani - the former passed out from IIM-A and the latter will pass
out from IIM-K in March 2008. I had pulled these guys midway from their
engineering courses, and they were firm on completing their academics. We are
still very close friends; we used to work out of my bedroom. That's when the
revenues started flowing, and that's when my parents started believing in my
business. After that everyone started supporting me.
The reason why I am here today is because I got the best team that I could have
ever got and great support from my family and friends. ????????????

58. THEORIES OF ENTREPRENEURSHIP
The Economist’s View 
According to the economist entrepreneurship and economic growth will
take place in those situation where particular economic conditions are
most favorable.
 According to J.B.Say rationally combining the forces of production into
a new producing organization is the function of an entrepreneur.
According to Cantillon an entrepreneur is an uncertainty bearer buying at
a fixed price and selling at an uncertain price.
Entrepreneur connects different markets, he is capable of gap-filling, he
is input completer and he creates or expands things.
Small industry is a natural habitat of the entrepreneur where his role is
like that of a striker who keeps the fire burning.
The entrepreneurship development in a particular country largely
depends upon the economic policy, programme and economic
environment of that country.

59. The Sociologist’s View
It emerges under a specific social culture.
According to sociologist’s social sanctions, cultural values and role
expectations are responsible for the emergence of entrepreneurship. 
Society values are most important determinants of attitudes and role
expectation.
Sociologist’s consider the entrepreneur as a role performer
corresponding to the role expected by the society.
According to Flavia, the function of an entrepreneur is to co-ordinate at
every stage i.e. beginning, maintenance and expansion.
Every entrepreneur needs two qualities they are Optimistic outlook and
Dynamism

60. The Psychologist’s view
It is most likely to emerge when a society has sufficient supply of
individuals possessing particular psychological characteristics.
It’s the high need for achievement which drives people towards
entrepreneurial activities .
Individual with high achievement motive tend to take keen interest in
situation of high risk ,desire for responsibility and desire for task
performance
Entrepreneur possesses three things i.e. an institutional capacity to see
things in a way which later proves to be true, a kind of effort of will and
mind to overcome fixed habits of thinking, lastly the capacity to overcome
social opposition against doing something new.
Frank Young describes an entrepreneur as a change agent 
T.V. Rao describes entrepreneurship as a creative and innovative response
to environment.