Everyone wants to be an entrepreneur.. Right? Beliefs about entrepreneurship: Entrepreneurs are INDEPENDENT Entrepreneurs are INDEPENDENT Entrepreneurs get RICH Entrepreneurs get RICH Entrepreneurs have FUN! Entrepreneurs have FUN! Entrepreneurs are fashionable people who make glamorous events. Entrepreneurs are fashionable people who make glamorous events.

Why be an entrepreneur ? The main reasons The main reasons Money Money Independence and freedom Independence and freedom Creativity and self-expression Creativity and self-expression Another important reason Another important reason Can’t hold a normal job! Can’t hold a normal job! Many successful entrepreneurs are crazy, weird people Many successful entrepreneurs are crazy, weird people

Being an entrepreneur is not basically motivated by economics Why? Being an entrepreneur is not basically motivated by economics Why? RISK! RISK! I'll repeat: I'll repeat: risk risk risk risk risk risk risk risk risk risk risk risk RISK RISK RISK RISK RISK RISK RISK RISK RISK RISK RISK RISK RISK RISK RISK! RISK RISK RISK RISK RISK! Starting a business is risky Starting a business is risky

Uncontrollable variables that affect your business Competition Technological change Competition Technological change Interest rates Government policy Interest rates Government policy Economic growth or contraction War and terrorism Economic growth or contraction War and terrorism Strikes in other parts of the world Your employees’ personal problems Strikes in other parts of the world Your employees’ personal problems Your investors’ personal problems Changing consumer preferences Your investors’ personal problems Changing consumer preferences

What’s the spirit of the entrepreneur? What’s the spirit of the entrepreneur? Creative Creative Excited about life and optimistic Excited about life and optimistic Independent Risk-taking Independent Risk-taking And needing self-expression And needing self-expression

Distinction between an entrepreneur and manager: Motive Motive Status Status Risk taking Risk taking Rewards Rewards Innovation Innovation Qualification Qualification

Skills that an entrepreneur might need Strategy and business analysis Accounting Personnel Management Negotiation Tax planning Inventory control Communications Planning Typing and computer skills Design Teaching Legal Crisis intervention! Firing people

Fantasies not facts! “Entrepreneurs are born not made” McClelland’s Kakinanda experiment……………………………….

Invention vs. Innovation Invention Creation of new things Results in new knowledge Results in new knowledge Innovation Transformation of ideas into useful application useful application Results in new products Results in new products

Classification of entrepreneurs Types of business Types of business Use of technology Use of technology Motivation Motivation Growth Growth Stages of development Stages of development Area Area Gender and age Gender and age

Classification of entrepreneurs Clarence Danhof –on the basis of economic development. Clarence Danhof –on the basis of economic development. Innovating entrepreneurs Innovating entrepreneurs Adoptive/Imitative entrepreneurs Adoptive/Imitative entrepreneurs Fabian entrepreneurs Fabian entrepreneurs Drone entrepreneurs Drone entrepreneurs

Role and importance of entrepreneur Entrepreneur is the cause its effect is the economy. Self employment Self employment Capital formation Capital formation Employment generation Employment generation Regional development Regional development Innovation Innovation Forward and backward linkages Forward and backward linkages Foreign exchange Foreign exchange

The best way to become an entrepreneur is to jump into the water and get your feet wet For the true entrepreneur, reality is the superior teacher; and school is an excuse to delay failure. For the true entrepreneur, reality is the superior teacher; and school is an excuse to delay failure. Jump in, take risks, challenge yourself, trust your instincts, and learn from both experience and the experienced. Jump in, take risks, challenge yourself, trust your instincts, and learn from both experience and the experienced.

Process of industrialization in developing economies: In the last century, countries have passed 3 phases (3C’s) Colonialism Colonialism Communism Communism Consumerism Consumerism

Entrepreneurial motivation Personal goals Personal goals Need for achievement Need for achievement Ambition Ambition Compulsion Compulsion Support Support Successful entrepreneurs Successful entrepreneurs Capital Capital Status Status

Establishing Entrepreneurial system Business ideas Business ideas Ideas processing Ideas processing Idea selection Idea selection Inputs Inputs Enterprise Enterprise

Business ideas Markets Markets Consumers Consumers Peers and friends Peers and friends Analyzing other nations Analyzing other nations Project profiles Project profiles Govt. organisations and NGOs Govt. organisations and NGOs Trade fairs and Exhibitions Trade fairs and Exhibitions