CHAPTER THREE:

KNOWLEDGE OF ENTREPRENEUR
Definition of concept
 Entrepreneurs are people who create new business activity in the economy and bear
considerable business risk in the process. This is often done by starting new
companies. They can also create new business activity by introducing a new product
or creating a new market.
 Person who undertakes an enterprise with chances of profit or loss.
 An individual who bears the risk of operating business in the face of uncertainty about
the future conditions.
Skills Required for the Creation of Business
The ability to use one's knowledge effectively and readily in execution or performance.
There are two main categories of skills.
1. Hard skills
Hard skills are related to specific technical knowledge and training while soft skills are
personality traits such as leadership, communication or time management. Both types of
skills are necessary to successfully perform and advance in most jobs.
Examples of hard skills
Some of the most common include:
 A degree (or other academic qualification)
 An industry specific certification
 Foreign language skills
 Typing speed
 Bookkeeping
 Computer skills
 Technical skills
 Machine operation
 Microsoft office skills
2. Soft skills
Soft skills are a combination of people skills, social skills, communication skills, character or
personality traits, attitudes, talents, career attributes, social intelligence and emotional
intelligence quotients(percentage) soft skills are considered to be a complement to hard skills,
which refer to a person's knowledge

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Example of soft skills
1. Communication
This is single-handedly the most important quality for your professional and personal life.
You need to be able to converse with people from different cultures in person, writing and
over the phone. The ability to listen to others and display empathy when necessary is also a
fundamental part of communicating effectively.
2. Self-Confidence
Confidence is in everything you do and say – your appearance, behaviour, even the work you
submit and the simple ways in which you hold yourself. Employers want to work with people
who are sure about their professional skills and who can encourage others to follow suit.
3. Positive Attitude
Are you optimistic and generally have a good attitude? If you answered ‘yes’, stay like that!
Employers want positive team members that possess a “can-do attitude”. If you’re on the
grumpy side, learn how to pick yourself up and put a smile on your face – at least while
you’re at work, anyway.
4. Flexibility
Being narrow-minded will not get you far in your job. You should flexibly move from one
project to another and prioritise in order to take care of the most pressing matters first.
5. Organisation
Being an organised person is usually something that’s part of your DNA or a skill you
developed from your parents. It’s vital to possess this quality in the workplace – if you’re
super messy, how will you find that important document that your boss is pressing you for?
6. Emotional Awareness
The ability to control yourself, to show empathy and understand yourself and others is
crucial to carrying out your job effectively. Not only does this help you handle interpersonal
relationships and judge a situation successfully, it can also help increase your problem-solving
skills.
7. Initiative
Having the expertise to think of new ideas and follow through is a desirable skill that
millennials must have. You should be able to come up with interesting tasks and find
solutions to pressing issues within the workplace.
8. Time Management Managing your time efficiently is essential for the workplace. In
other words, you should know how to prioritise and allocate task, as well as be able to
delegate assignments to others when needed.

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 9. Negotiation
If you’re the king of haggling at markets, you’ve already got this skill in the bag. If not, you’ll
need to learn how to be persuasive and exert influence, while sensitively seeking a solution
that will benefit all parties involved.
Question
1. Tabulate the differences between soft skills and hard skills
Skills of Successful Entrepreneurs
 Basic management skills: Even if entrepreneurs hire others to deal with the day-to-
day tasks of the business, entrepreneurs need to know whether their company has the
correct resources.
 Ability to plan: Entrepreneurs must be able to develop business plans to meet goals in
a variety of areas, including finance, marketing, production, sales and personnel.
 Leadership skills: The ability to develop a vision for the company and to inspire
employees to pursue it is imperative for success. (Figurehead) They are responsible for
facilitating team performance.
 Ability to organise: the abilities that let you stay focused on different tasks, and use
your time, energy, strength, mental capacity, physical space, etc. effectively and
efficiently in order to achieve the desired outcome.
 Ability to control: Controlling is monitoring progress toward goal achievement and
then taking corrective action when progress isn’t being made. The basic control
process involves setting standards to achieve goals, comparing actual performance to
those standards, and then making changes to return performance to those standards.
 Communication skills: Entrepreneurs should be able to explain, discuss, sell and
market their goods or services.
 Marketing skills: Good marketing skills, which result in people wanting to buy goods
or services, are critical to entrepreneurial success.
 Interpersonal skills: The ability to establish and maintain positive relationships with
customers and clients, employees, financial lenders, investors, lawyers and
accountants, among others, is crucial to the success of the entrepreneur's business
venture.
 Finance skills: are hard and soft skills that are used by those who work in the finance
industry, including accountants, financial analysts, chief financial officers,

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 underwriters, finance managers and more. Finance skills are important to uphold
financial practices and maintain financial stability within a business
 Negotiating skills: Negotiation skills are qualities that allow two or more parties to
reach a compromise. These are often soft skills and include abilities such as
communication, persuasion, planning, strategizing and cooperating.
Functions of an Entrepreneur
Innovation: Innovation and creativity are at the heart of the functions of an entrepreneur.
According to Schumpeter (1934), the key ingredient of entrepreneurship is innovativeness of
the individual. Innovation implies doing new things or doing the same things in a new
manner. It may include the following: introduction of a new product or service, new methods
of production, discovering new markets or finding new source of material etc.
He manages, measures and takes Risk: Palmer (1971) suggested that the entrepreneurial
function primarily involves risk measurement and risk taking. The risks are not only in
relation to the uncertainty to the success of the new business venture, but also on the personal
and professional front like career opportunities foregone for the sake of starting the new
venture, family relation and psychic wellbeing. Though risk taking is unavoidable, yet
entrepreneurs prefer to take moderate risks in those situations, where they have some degree
of control. They do not prefer situations which involve either extremes of risk or certainty.
Analyze the Opportunities and Threats: An entrepreneur has to be seeker of opportunities.
The environment may present a number of opportunities before an entrepreneur. He needs to
analyze such opportunities from time to time and choose the most appealing one at the right
time for creating a new venture. He should possess the capability and skills to formulate
strategies for the new business venture, keeping in mind the threats being posed to the
venture.
Preparing a Business Plan: A business plan is a written document containing the details
about every aspect of the proposed business venture. It is a tedious task drafting a convincing
and viable business plan. Preparation of the business plan is necessary to convince the
potential investors and financial institutions about the viability of the venture so as to get it
funded and to provide a road map for the people internal to the organization.
Organizer of the Venture: The entrepreneur brings together various factors of production
like capital, manpower, machinery, land and building etc. to start a Venture (project). He
needs to have suitable skills to deploy suitable resources in the right activities at the right time
in order to avoid wastage and to optimally utilize these resources in starting up the new
venture.

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Development and Growth of the Venture: Many of the newly established ventures are not
able to survive for long. They require active involvement of the entrepreneur during the
development and growth stage as well. During the growth stage of a new venture, when it
starts growing in size, entrepreneur needs to delegate the routine activities to other
colleagues/subordinates in the organization while providing strategic vision and direction to
the firm as a leader.
Supervision and Control: When routine matters are delegated to the subordinates, it
becomes imperative to have suitable control mechanisms in place so that the entrepreneur
may track the overall wellbeing of the enterprise. Personal observation, reporting and more
sophisticated techniques of control may have to be employed.
Entrepreneurial portfolio
On the basis of Entrepreneurial Experience Classification, the entrepreneurs can be put into
two broad categories, Novice and Habitual Entrepreneurs.
Novice entrepreneurs are the individuals who do not have any business ownership
experience in past neither as a founder nor as inheritor but now do they own an independent
business.
Habitual Entrepreneurs are the ones who have the experience of owning at least two or
more organisations firms, one at a time (Serial Entrepreneurs) or simultaneously (Portfolio
entrepreneurs).
Drone Entrepreneurs: Drone entrepreneurs refers to the ones who refuse to adopt
opportunities and to make changes in the existing methods of economic operations, despite
the fact that they are earning extremely reduced returns compared to theirs competitors, who
have adopted new technology and advanced methods in doing things. Sometimes such
entrepreneurs may even suffer losses but they are not ready to make changes in their existing
production methods. They struggle to exist, not to grow. Thus they are dawdlers as they
choose to continue working in their conventional way and resist changes.
Fabian Entrepreneurs: Fabian entrepreneurs are those entrepreneurs who are very much
skeptical in their approach in adopting or innovating new technologies in their enterprise.
They are ones who lack the will to adopt to new methods of productions. They exhibit great
vigilance in experimenting any change in their enterprise. They imitate only when it becomes
perfectly clear that failure to do so would result in a loss of position of their enterprise. They
are sluggish and diffident in adopting even the successful innovations.
Types of Entrepreneurs

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There are a number of ways through which entrepreneurs can be classify. They can be
classified on the basis of the type of business, use of technology, gender, motivation,
organization and many more.
Inventors
Inventors are the types of entrepreneurs who come up with completely new ideas and turn
them into feasible businesses.
In most cases, these entrepreneurs change the way people think about and do things. Such
entrepreneurs tend to be extremely passionate and obsessive, deriving their motivation from
the unique nature of their business idea.
Innovative entrepreneurs also find new ways to market their products by choosing product
differentiation strategies that make their company stand out from the crowd. And sometimes it
is not just standing out from the crowd but actually creating a new crowd.
To say that innovators like Steve Jobs, Larry Page of Google and Microsoft founder Bill
Gates were obsessed with their business would be an understatement.
Advantages of Being An inventor:
 Get all the glory for the success of the business (and take all the arrows)
 Create the rules
 Face minimal competition during the initial days
Disadvantages of being an inventor entrepreneur:
 You will need a lot of capital to bring a new idea to life
 Often face resistance from shareholders
 The timeframe for success is longer
The ability of an innovative entrepreneur to envision a new way of thinking makes them stand
out from the crowd and wildly successful in many cases however it takes significant capital,
patience and commitment to bring true innovation to life.
2. The Hustler Entrepreneur
Unlike innovators whose vision is the gas in their engine, hustlers just work harder and are
willing to get their hands dirty. Hustlers often start small and think about effort as opposed to
raising capital to grow their businesses. These types of entrepreneurs focus on starting small
with the goal of becoming bigger in the future.
Hustlers are motivated by their dreams and will work extremely hard to achieve them. They
tend to be much focused and will get rid of all forms of distractions, favoring risks over short-
term comfort.

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A perfect example of a hustler is Mark Cuban. He started in business very young selling trash
bags, newspapers and even postage stamps and this hustle later created a goldmine which was
acquired by internet giant Yahoo!
Advantages of being a Hustler
 They will outwork most
 Tend to have thick skin – they don’t give up easily
 See disappointment and rejection as just a step in the process
Disadvantages of being a Hustler
 Usually prone to burn out
 Wear out their team members who don’t have the same work ethic
 Often don’t see the value of raising capital as opposed to just working harder
Even though many hustlers never give up, a lot of them are willing to try anything to succeed
which unfortunately means that they have a lot of hits and misses. Achieving their dreams
takes a lot longer than most other types of entrepreneurs.
3. Imitators
Imitators are the types of entrepreneurs who copy certain business ideas and improve upon
them. They are always looking for ways to make a particular product better so as to gain an
upper hand in the market.
Imitators are part innovators and part hustlers who don’t stick to the terms set by other people
and have a lot of self-confidence.
Advantages of Imitators
 Refining a business idea is easier and less stressful
 You can easily benchmark your performance with the original idea
 Can learn and avoid mistakes that were made by the originator
Disadvantages of Imitators
 Their ideas are always compared to the original idea
 Always have to play catch-up
Taking an existing idea and refining and improving it can be a great way to develop a
business. It certainly does not have as much risk as the innovator but it might just not be as
sexy.
4. Researcher

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Even after having an idea, researchers will take their time to gather all the relevant
information about it. To them, failure is not an option because they have analyzed the idea
from all angles.
Researcher entrepreneurs usually believe in starting a business that has high chances of
succeeding because they have put in detailed work to understand all aspects.
As a result, these types of entrepreneurs usually take a lot of time to launch products to make
decisions because they need the foundation of deep understanding. These entrepreneurs rely
much more on data and facts than instincts and intuition.
For a researcher, there should be no room for making mistakes.
Advantages of being a researcher Entrepreneur
 Plan for as many contingencies as possible
 Write detailed, well-thought-out business and financial plans
 Focus on data and information rather than gut feeling
 Won’t start unless they feel like they know the market
 Will minimize the chances of failing in the business
Disadvantages of being a researcher Entrepreneur
 Typically moves slow
 Doesn’t like risk and that can hamper progress in a new venture
Even though these types of entrepreneurs spend a lot of time researching and digging into the
data to ensure the success of their business, they can fall into the habit of obsessing over the
numbers and focusing less on the running of the business.
5. Buyers
One thing that defines buyers is their wealth. These types of entrepreneurs have the money
and specialize in buying promising businesses.
Buyer entrepreneurs will identify a business and assess its viability, proceed to acquire it and
find the most suitable person to run and grow it.
Advantages of being a Buyer
 Buying an already established venture is less risky
 Doesn’t have to worry so much about innovation
 Can focus on building on something that has already gone through building a
foundation
 Already has a market for your products
Disadvantages of being a Buyer

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  Usually pays a high price for good businesses
 Will face the risk of buying businesses that have problems that you think you can turn
around
INTRAPRENEUR
The Intrapreneur (Corporate Entrepreneur)
An Intrapreneur may be defined as “a person within a large organization who takes direct
responsibility for turning idea into a profitable finished product through confident risk taking
and innovation”.
Intrapreneurs possess entrepreneurial skills blended with managerial skills but operate within
the boundaries of an organization. Unlike the entrepreneur who creates a new organization, an
intrapreneur acts as an industrialist within an existing organization, also referred to as
corporate entrepreneur.
Differences between entrepreneur and Intrapreneur
1. Definition
An entrepreneur is an individual who designs, launches, and manages a new business, which
almost always starts out as a small business whereas an intrapreneur is an individual who uses
their entrepreneurial skills to create and develop a new project in the company that they
already work at, which eliminates many of the risks that come with running a business as an
entrepreneur.
2. Personal Traits
An entrepreneur has the freedom to do the work and try various things at the same point in
time. No imagination barrier is here and the person can think beyond the limits. Intrapreneur
having their boundaries and face many problems in approval before the implementation of
some ideas.
3. Motivation
Though a lot of obstacles are there that de-motivates the person, four factors contribute to
motivates the entrepreneur to stay connected with the path of success such as: Risk-taking,
Accomplishment, Control and Creativity
The factors that influence the motivation of the Intrapreneur are entrepreneurship,
professionalism as well as leadership also. Besides this, the regular increment in the salary
year by year encourages the employees to improve their performance for the success of the
business.
4. Dependency

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The dependency of the Entrepreneur lies in the operations of the business enterprise. The
entrepreneur is fully independent given that he is the only boss but the intrapreneur is
dependent on the entrepreneur or owner of the organization as he works for the corporation
under the defined rules and codes of conduct related to the business.
5. Aim
An entrepreneur aims to innovate all the products, services and projects which are of social as
well as economic value. On the other side, to improve the competitive strength is the main
goal of the Intrapreneur. Moreover, maintain the sustainability of the market of the business
enterprise.
6. Investment
It is wholly and solely the responsibility of the Entrepreneur to generate the funds for the
business and raise capital from time to time for new business industries. Intrapreneur has no
issues with the management of investment required for production.
7. Risk-taker
Although both are risk-takers, the bigger one is the Entrepreneur. Moreover, they recruit
manpower according to the talent and maintain the position of the business. The whole risk
involved in the business is only for the Entrepreneur and 100 per cent of loss incurred must be
managed by the owner. On the other hand, less risk is attached to the Intrapreneur as he risks
with the money of the Entrepreneur. They don’t have the same level of authority and freedom
as Entrepreneur like choose the team and the type of leadership they want. Due to the level of
freedom, it has proven that they do not tackle the same level of risk.
8. Primary Motives
Being independent, satisfaction of their own and gain some monetary rewards is the primary
motive of an Entrepreneur and the Intrapreneur get a fixed reward by advancement and
promotion.
9. Time frame
As we know the Entrepreneur is free to do anything, so there is no time-bound for that person.
He or she can do anything to earn profit and interact with anyone, anytime.
However, the Intrapreneur is an employee of the organization and bound by the timetable of
the business enterprise according to the day and night shift.

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