1. Overview of entrepreneurship
Unit 1

2. What is Entrepreneurship?
Origin of the Word “Entrepreneur”
The word was originally used to describe people who “take on the risk” between buyers and sellers or “undertake” a task such as starting a new venture.
The “undertake” interpretation of the word has been central to its usage in English.
Difference Between an Inventor and an Entrepreneur
An inventor creates something new.
An entrepreneur puts together all the resources needed—the money, the people, the strategy, and the risk-bearing ability to transform the invention into a viable business.

3. What is Entrepreneurship
Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort; assuming the accompanying financial, psychic, and social risks and uncertainties; and receiving the resulting rewards of monetary and personal satisfaction.
The definition stresses four basic aspects:
First, entrepreneurship involves a creation process
Second, entrepreneurship requires the devotion of the necessary time and effort by entrepreneur
Third, it involves the rewards of being an entrepreneur
Fourth, it assumes the necessary risks and uncertainties

4. What is Entrepreneurship?
Entrepreneurship is the process of identifying opportunities in the market place, arranging the resources required to pursue these opportunities and using the resources to exploit the opportunities for better gains.
It is concerned with starting one’s own business.

5. Entrepreneur
Entrepreneur is an individual who takes initiative to bundle resources in innovative ways and is willing to bear the risk and uncertainty to act.
Entrepreneurs are individuals who actively form or lead their own business and nurture them for growth and prosperity.

6. Why Become an Entrepreneur?
There are three primary reasons that people become entrepreneurs and start their own firms
Desire to be their own boss
Desire to pursue their
own ideas
Financial rewards

7. Characteristics of Successful Entrepreneurs
Four Primary Characteristics of Successful Entrepreneurs

8. Characteristics of Successful Entrepreneurs
Passion for the Business
The number one characteristic shared by successful entrepreneurs is a passion for the business.
This passion typically stems from the entrepreneur’s belief that the business will positively influence people’s lives.
Product/Customer Focus
A second defining characteristic of successful entrepreneurs is a product/customer focus.
An entrepreneur’s keen focus on products and customers typically stems from the fact that most entrepreneurs are, at heart, craftspeople.

9. Characteristics of Successful Entrepreneurs
Tenacity Despite Failure
Because entrepreneurs are typically trying something new, the failure rate is naturally high.
A defining characteristic for successful entrepreneurs is their ability to persevere through setbacks and failures.
Execution Intelligence
The ability to fashion a solid business idea into a viable business is a key characteristic of successful entrepreneurs.
The ability to translate thought, creativity, and imagination into action and measurable results is the essence of execution intelligence.

10. What Entrepreneurs Contribute
provide venture capital
turn demand into supply
What Entrepreneurs Contribute
create
more wants
provide
jobs
promote
changes in society 10

11. Types of Entrepreneurs
On the basis of innovation:
Innovative entrepreneurs: Aggressive assemblage of information for trying out a novel combination of factors
Imitating entrepreneurs: They do not innovate themselves, but imitate techniques technology innovated by others
Fabian entrepreneurs: Who display great caution and doubt in experimenting with any change
Drone entrepreneurs: Characterized by a refusal to adopt opportunities to make changes in production formulae even at the cost of severely reduced returns
Forced entrepreneurs: Forced to become entrepreneurs to fashion their own economic livelihood; victims of circumstances
Empire builder entrepreneurs: They go on creating new ventures one after another; do not get involved in day-to-day activities, but keep strategic control

12. B. On the basis of behavior
Solo-entrepreneurs
Active and sleeping entrepreneurs
Inventor entrepreneurs
Challenger entrepreneurs: When one challenge seems to be met, they begin to look for new challenges
Buyer entrepreneurs
Life timer entrepreneurs

13. C. On the basis of focus group
Women entrepreneurs
Minority entrepreneurs
Immigrant entrepreneurs
Part-time entrepreneurs
Home-based entrepreneurs
Family business entrepreneurs
Entrepreneurial couples
Intrapreneurs/corporate entrepreneurs

14. Entrepreneurial decision process
Identify and evaluate the opportunity
Identify a specific opportunity
Estimate the length of opportunity (market size)
Assess the real and perceived value of opportunity
Evaluate the risks and returns of opportunity
Assess the opportunity against personal skills and goals
Assess the competitive environment

15. Develop business plan with proper contents
Determine the resources required
Determine resources needed
Determine existing resources
Identify resource gaps and available suppliers
Develop access to needed resources
Manage the enterprise
Develop management style
Understand key variables for success
Identify problems and potential problems
Implement control systems
Develop growth strategy

16. Role of entrepreneurship in economic development
Capital formation
Employment creation
National integration
Utilization of resources
Revenue generation
Better international relation
Earning of foreign currency
Equitable distribution of wealth

17. Becoming an Entrepreneur on the Job
Intrapreneurship
Becoming an Entrepreneur on the Job

18. What keeps most people away from becoming entrepreneurs?
Funding
Manpower
Strong backing
Branding/Marketing
Fear
Funding – becoming an entrepreneur often requires not only funding to get your project started, but money to pay your living expenses while you are working on your project.
Manpower – projects often requires a wide range of skill sets. Everything from design and production to marketing. Entrepreneurs usually have to do it all themselves or hiring someone to do the tasks they are unable or unqualified to do.
Strong backing -

19. Intrapreneur
A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk taking and innovation.
Intrapreneurs have entrepreneurial skills blended with managerial skills but operate within the confines of an organization.

20. Positive differences between entrepreneur vs intrapreneur
Funding
company/organization often has capital to fund the project
Manpower
intrapreneurs do not have to worry about finding the talent to get tasks performed
Branding
intrapreneurs can use the branding of the company/organization to get their ideas to take root

21. Characteristics Results driven Ambitious Creative Original
Self Confident
Risk Tolerant
Persistent
Influencing
High Energy
Action oriented
Interpersonal
Innovative

22. Defined as…
Intrapreneurs are “dreamers who do”, those who take hands-on responsibility for creating innovation of any kind within an organization. Gifford Pinchot
The intrapreneur is an essential ingredient in every innovation. Dr. William Souder

23. Why should organizations embrace intrapreneurs?

24. Innovation
To create and bring into use profitable new products, processes, services, and ways of doing business.
Creation of new or alternative products
Opening of a new market
Capture of new sources of supply

25. Intrapreneurial Activity
Spotting ways to improve service
Save time, money, or make life easier
Visualizing variations of current products / services
Realizing new communication avenues with customers
Enhancing the quality
New ways to get the job done quicker or smarter

26. How does Business benefit?
Firms create competitive advantages by discovering new and better ways to compete in an industry and bringing them to market
An enterprise that does not daily innovate inevitably ages and declines
Even in a successful business the disease of bureaucracy and complacency is dangerous

27. How do Intrapreneurs benefit?
Flexibility
Less restrictions but supportive environment
Recognition
Their ideas are vehicles towards advancement
Increased value to organization - increased PAYCHECK

28. Implementing the Intrapreneurship Culture
Encourage employees to be creative and to look for new ways to improve your current way of doing business
Grant intrapreneurs something akin to ownership rights in the internal intraprises they create
Encourage company wide involvement by insisting on truth and honesty in marketing and marketplace feedback

29. Implementing the Intrapreneurship Culture
Treat intrapreneurial teams as profit centers rather than as cost centers
Allow team members a variety of options in jobs, in innovation efforts, alliances, and exchanges
Encourage employees to develop through training programs