Entrepreneurship

CLASSIFICATION OF
ENTREPRENEURS
MEANING

►Derived from the French Word

‘Entreprendre’ which means
‘to undertake’.
►A person who sets up business
or businesses, taking on
financial risk in the hope of
profit.
►An adventurous innovator who
acts on his own account, and
introduces changes that orders
 N S
I IO
T
F I N
DE BY R S
H O
U T
A
PETER F DRUCKER

An entrepreneur is one who

always searches for change ,
responds to it, and exploits it
as an opportunity. Innovation is
the specific tool of
entrepreneurs, the means by
which they exploit change as
an opportunity for a different
business or service.
F.H. KNIGHT

‘Entrepreneur is a person or
group of persons who bear risk
and uncertainty’.
INVENTOR & INNOVOTOR

►INVENTOR ►INNOVATO
- A person R
who creates -is a person
new thing who brings
something
new in
business
Classification of
Entrepreneurs
►Innovative Entrepreneurs:-
• One who introduces new goods
and better combination of an
enterprise.
• They can work only when they
have achieved a certain level
of development and the
customers look forward to
them for change and
improvement.
►Adoptive or imitating
Entrepreneurs:-
• They are adopting or imitating
the successful innovations
made by other entrepreneurs.
• Plays a vital role in developing
countries, where innovative
entrepreneurs are scarce.
• Mostly suited for developing
countries because such
countries can adopt
technology, knowledge and
skill already available in
►Fabian Entrepreneurs:-
• Characterized by great caution
in introducing any change.
• These entrepreneurs have
neither the will to introduce
new changes nor the desire to
adopt new methods.
• Fabian entrepreneurs are shy
and lazy.
• Dealings are determined by
customs, religion, tradition and
past practices.
►Drone entrepreneurs:-
• Follows traditional method of
production.
• He will not change the method
of production that he has
introduced. Sticks on to his
existing position even at the
cost of losses.
• Hesistant to deviate from the
traditional method of
functioning.
• The traditional industries of
Kerala are characterised by
drone entrepreneurs.
• Coir and Bamboo industries are
still in the hands of laggards
who refuse to be innovative.
Entrepreneurs have also been
classified on the basis of:
Type of Business
Use of Technology
Motivation
Growth
Stages of development
Scale of Operations
Type of Business

►Business Entrepreneur
►Trading Entrepreneur
►Industrial Entrepreneur
►Corporate Entrepreneur
►Agricultural Entrepreneur
►Retail Entrepreneur
►Service Entrepreneur
Use of Technology
►Technical entrepreneur
►Non-technical entrepreneur
►Professional entrepreneur
►High-tech entrepreneur
►Low-tech entrepreneur
Motivation
►Pure entrepreneur
►Induced entrepreneur
►Motivated entrepreneur
►Spontaneous entrepreneur
Growth
►Growth entrepreneur
►Super growth entrepreneur
Stages of
Development
►First generation
entrepreneur
►Modern entrepreneur
►Classical entrepreneur
Scale of Operations
►Small-scale entrepreneur
►Medium-scale entrepreneur
►Large-scale entrepreneur
INTRAPRENEURSHIP
►Term “Intra-corporate
entrepreneur” was
introduced by Gifford Pinchot
in 1973. it was later revised as
“Intrapreneur”.
►Definition:-
Intrapreneur is “a person
within a large corporation
who takes direct
responsibility for turning an
idea into a profitable
Meaning:-

►Employees of an organisation
who are motivated to use their
entrepreneurial talents and
initiative to do something on
their own, but who may not
want to start their own
business

►Improving the existing

products or by branding new
Essential Elements:-
►Employees should have an
atmosphere of freedom to
interact with each other and
share ideas, and promote their
spirit of innovation.

►Talents of the employees

should be recognized, their
skills should be trained, and
they should be motivated.
►Employees should be
encouraged to collaborate and
network naturally, since each
employee is interested in the
bright future of the
organization.
►Successful employees should
be suitably rewarded, while
they should not be penalised
for their mistakes.
►If there is a work culture of
sharing and trust, it will
Distinction b/w
Entrepreneur
and Intrapreneur
Basis of Entrepreneur Intrapreneur
Distinction
He is He is totally
independent in dependent on
Dependence every task he the organisation
undertakes n which he is
working.
He himself Funds are not
Finance raises the funds raised by him,
requires for the he uses the
enterprise. capital raised by
his company.
Risk He bears the He does not
entire risk fully bear the
involved in the risk involved in
business. the enterprise.
 He operates he operates
Operations from outside. from within the
organisation
itself

He is not He is an
capable of inspiration to
Inspiration inspiring others others as he
in the serves as a
organisation champion to
others in the
organisation
DIMENSIONS OF
ENTREPRENEURSHIP

►Strategic orientation
►Commitment to
Opportunity
►Commitment of Resources
►Resource Control
►Management Structure
►Reward Philosophy
Strategic Orientation
►First and foremost dimension
of entrepreneurship
►Describes the factors that
drive a company’s formulation
of strategy.
►An entrepreneur is a person
who probes, realizes and grabs
any opportunity creatively,
innovatively and favorably.
►Always promotes company’s
formulation of strategy and
Commitment to
Opportunity
►Always creates opportunity
and grabs it for business
purpose.
►An entrepreneurial orientation
places the emphasis on
opportunity.
►He has to act in a very short
frame and chase an
opportunity quickly.
►Along with creative and
innovative nature, an
Commitment of
Resources
►Means multi-staged
commitment of an
entrepreneur with a minimum
requirement of resources at
each crucial stage or any
decision point.
► when he attempts to create
maximum value with minimum
resources, he should be ready
to accept the risk in process.
Resource Control

►An entrepreneur should be

capable of utilizing the
resources effectively and
efficiently.
►Should be aware of the
resources needed and should
be capable of raising and
utilizing the resources of other
people properly.
Management Structure
►Decide the management
structure and management
hierarchy.
►Entrepreneur should have
direct contact with all the main
officers of the organization.
►He should have more formal
relations with executives.
Special rights and
responsibilities are assigned to
Reward Philosophy

►Every business follows the

philosophy to focus on creating
or gathering of values.
►Entrepreneurial companies are
different from administratively
managed companies in their
philosophy regarding
compensation and reward. `
TECHNOPRENEURSHIP

►Combination of two words

‘technology and
‘entrepreneurship’.
►It is a process of merging
technological and
entrepreneurial talents and
skills.
►It involves coming together of
people who are intelligent,
creative, technology savvy and
Meaning and Definition

►Technopreneurship is not a
product but a process of
synthesis in engineering the
future of a person, an
organization, a nation and the
world.
►Technology and
entrepreneurial skills are
leading many economies to
prosperity.
Technopreneur :-
►“A technopreneur is an
entrepreneur who is technology
savvy, creative, innovative and
dynamic, dare to be different
and takes the unexplored path
and very passionate about his
work”
►He has no fear of failure and
hence takes failure as a
learning experience, a
Significance
►It generates employment
►It makes the best use of local
resources
►It decentralizes and diversifies
business
►It promotes technology
►It forms capital
►It promotes an entrepreneurial
culture
Bill Gates (Microsoft)
Steve Jobs (Apple)
Mark Zuckerberg
(Facebook)
Sergey Brin and Larry
Page
Entrepreneur
and
Technopreneur
Entrepreneur Technopreneur
1. An entrepreneur A technopreneur likes
likes to compete to Innovative
2. An entrepreneur is a A technopreneur is part
Pioneer of a team
3. An entrepreneur is A technopreneur is
creative and has innovative and a
dreams and goals visionary.
4. An entrepreneur is A technopreneur
able to do many chooses to delgate
things at once. his work
5. An entrepreneur is A technopreneur is
motivated by a motivated by a
strong desire to strong vision and
achieve and attain the passionate to
An entrepreneur A technopreneur
likes to work for likes to be one to
him and be in control
control. innovation and
be part of an
evolution
An entrepreneur A technopreneur
focuses takes failure as a
attention on the learning
chances of experience and
success rate strides for next
than the challenge.
possibility of
failure
Cultural
Entrepreneurship
“Cultural Entrepreneurs are
cultural change agents and
visionaries who organize
cultural, financial, social and
human capital to generate
revenue from a cultural
activity.”
►Cultural entrepreneurs create ,
produce and market cultural
goods and services, generating
economic, cultural and social
opportunities for creators while
adding cultural values for
consumers.
►They range from micro, small
and medium enterprises to large
firms.
►Cultural enterprises operate in
traditional professions of artists,
writers, musicians, actors,
►Cultural entrepreneurs strive
to promote the preservation of
cultures while becoming
innovative.
►They aim at strengthening and
making the world growing
through self-determination and
self reliance. Thus they bring
value to creative economy.
INTERNATIONAL
ENTREPRENEURSHIP

►International entrepreneurship
is the process of an
entrepreneur conducting
business activities across the
national boundaries.
►It includes exporting, licensing
or opening sales office in
another country.
►Main purpose – To satisfy the
needs and wants of target
►It is beneficial when the sales
of products of a company in
the domestic market, is
declining and the demand
arises for the products from
international market.
►Entrepreneur can sell his
products it have reached the
maturity stage of their life
cycle in domestic markets, in
foreign market and earn profit
by their sales.
Definition:-

“Development of International
new ventures or startups that
from their inception engage in
International Business, thus
viewing their operation domain
as international from the initial
stages of international
operations”
Importance :-

►Low Manufacturing Cost

►Increased sales and profit
►Cultivating the habit of
Customer Relation
Management
►Utilization of talent and
managerial competence
►Opportunity for Growth
►Advantages of Cheap Labour
►Expansion of Domestic Market
►Globalization of Customers
►Globalization of Competitors
►Improves the image of the
Company
ECOPRENEURSHIP

►Also known as “Green

Entrepreneurship”.
►Referred to as the
development of enterprise
through entrepreneurship,
while incorporating an
environmentally responsible
perspective into the operations
and goals of the entrepreneur.
►Also referred to as
Meaning and Definition
“Ecopreneurship also known as
environmental
entrepreneurship and
ecocapitalism, is becoming
more widespread as a new
market – based approach to
identifying opportunities for
improving environmental
quality and capitalizing upon
them the private sector for
profit”
“Ecopreneurs are entrepreneurs
whose business efforts are not
only driven by profit, but also
by a concern for the
environment.”
-
Schuyler
Ecopreneurs

Ecopreneurs are
entrepreneurs whose
business efforts are not
only driven by profit, but
also by a concern for the
environment.
Importance of
Ecopreneurship
►The entrepreneurial activities in
case of ecopreneurship give less
focus on management systems
or technical procedures.
►It gives more focus on the
personal initiative and skills of
the entrepreneurial person or
team to realize market success
with environmental innovations.
►It adopts highly environmentally
responsible business practices
and values.
►It emphasizes a social
perspective while considering
an innovative solution through
the commitment of ecopreneurs
►It replaces the conventional
production methods, products,
market structures and
consumption patterns with
superior environmental products
and services.
►It is characterized by a high
degree of creativity,
collaboration and social
WOMEN
ENTREPRENEURSHIP
►Women Entrepreneurship
refers to business or
organisation started by a
woman or group of women.
► Women Entrepreneurship is
the process in which women
initiate a business, gather all
resources, undertake risks,
face challenges, provides
employment to others and
►There has been a change in
role of women due to growth in
education, urbanization,
industrialization and awareness
of democratic values.
►Approximately 1/3rd of the
entrepreneurs in the world are
women Entrepreneurs.
Women Entrepreneurs
• Women Entrepreneurs are
those women who innovate,
initiate or adopt a business
activity
-
Schumpeter
• A women Entrepreneur is
defined as an enterprise owned
and controlled by a woman
having a minimum financial
interest of 51% of the capital
Indra Nooyi
Chanda Kochhar
Beena Kannan
Industries promoted by
Women Entrepreneurs
►Agarbatti Making
►Papad Making
►Embroidery
►Handicrafts
►Catering Services
►Running restaurants, Snacks
bars
►Beauty Parlors
►Pickle Manufacturing etc.
Outstanding Leadership
Qualities of Women
Entrepreneurs
►Willingness to face challenges
►Effort to achieve the objectives
►Aspiration to reach high levels
►Intelligence
►Patience
►Skills in learning new things
►Desire to acquire new
knowledge and to apply it.
►Power to withstand uncertainty
►Desire to guide and lead others
►Powers to resist criticism.
►Optimism
5 Categories: of women

Entrepreneurs-
►Affluent Entrepreneurs
►Pull factors
►Push factors
►Rural Entrepreneurs
►Self employed
Entrepreneurs
Reasons for Growth of
Women
Entrepreneurship
►Growth in Literacy Level
►Industrial and Economic
growth
►Awareness of democratic
values
►Organizations promoting
Women entrepreneurship
►Financial assistance and
consultancy services provided
Problems of Women
Entrepreneurs
►Financial Constraints
►Over Dependence on
intermediaries
►Stiff Competition
►Scarcity of raw materials
►High cost of Production
►Limited Mobility
►Family Ties
►Lack of Education
►Social Attitudes
Solutions to the
problems of
Women
Entrepreneurs
►Separate Finance Divisions
►Supply of raw materials
►Co-operative Women’s
Marketing Societies
►Education and social change
►Training
►Family Background
►Support from the society
►Support From the Government.
 SOCIAL
ENTRERENEURSHIP
►Social Entrepreneurship is any
creative and innovative
solution applied to solve social
problems.
►It stands for recognizing a
social problem and using
entrepreneurial principles,
processes and operations for
effecting a social change.
►Social Entrepreneurship
mobilizes the ideas, capacities,
►Social Entrepreneurs have
innovative solutions to the
most pressing social problems
►Social entrepreneurship is a
catalyst for social change. They
are pioneers of innovations
that benefit humanity at large.
►They are ambitious and
persistent, and experts in
tackling major social issues
and offering new ideas for
large scale change.
Prof. Muhammed Yunus
Vinoda Bhave
 Importance of Social
Entrepreneurship
►Social Entrepreneurship focuses on
social problems, environmental or
cultural issues.
►It plays the role of an agent for
change in the society by adopting a
mission to create and sustain social
values.
►It is a process of continuous
innovation, adaptation and
learning.
►It means acting boldly without
being limited by resource hand.
 Difference between Business
Entrepreneurship and Social
Entrepreneurship
Business Social
Entrepreneurship Entrepreneurship
Its motive is Profit Its motive is social
impact
It changes the face of It acts as an agent of
Business change by creating
sustainable solutions
for social problems.
It creates entirely a It offers new solution
new industry to social problems and
implements them for
the benefit of humanity
at large.
Its success is Its success is
measured in terms of measured in terms of
AGRIPRENEURSHIP
►It plays a formidable role in the
sustainable growth and
development of Indian Economy
►Developing entrepreneurship in
agriculture sector is known as
Agripreneurship
►Agripreneurship or agribusiness
includes all operations involved
in the manufacture and
distribution of farm supplies
►It comprises of activities
relating to production,
propagation and distribution of
products and services relating
to agriculture, floriculture,
horticulture, sericulture,
aquiculture, animal husbandry
and biotechnology.
Importance of
Agripreneurship
►It employs entrepreneurial skills,
models and innovative ideas to
economically solve problems in
agriculture sector.
►It increases the profitability of
the farming business
►It solves the challenges related
to information dissemination,
farm management, capital
availability, mechanization of
farm and the agriculture supply
chain.
►It provides an innovative solution
to some of the critical agricultural
issues like crop productivity and
input cost for agriculture.
►It solves the problem of wastage
of crops caused by lack of storage
facilities and improper
management of supply chain.
►Use of digital technologies such as
Remote sensing, Geographic
Information System (GIS), Internet
of Things (IoT), coupled with data
driven decision making and
analysis can improve farm
►Digital technologies together
with data analytics in every
stage of the agri-production life
cycle make farm activity more
insight driven, potentially more
productive and efficient.
►It helps to achieve progress
regarding food security,
accessibility and affordability.
►It generates employment
opportunities and enables the
use of local resources.
ENTREPRENEURSHIP IN
SERVICE SECTORS
►Most attractive arena for
aspiring entrepreneurs.
►Services can be defined as
activities, benefits, or
satisfactions which are offered
for sale or are provided in
connection with the sale of
goods.
►Service business are
enterprises that are
Types of Service
Sectors
►Professional services -
Physicians, pharmacists,
dentists, architects, nurses,
civil engineers, attorneys.
►Business services –
Advertising, financial planning,
mailing services, computer and
data processing, consulting,
training, recruiting.
►Counseling services –
►Transportation services –
trucking, busing, taxicab
services, car rental.
►Personal services – pet
grooming, health clubs,
catering, beauticians, tailors,
photography, home nursing,
wedding planning
 Importance of
Entrepreneurship in
service
 Many sectorscan be
service enterprise
launched with far less money than
the amount of capital needed to
open a manufacturing, wholesale
or retail business.
 Many new service operators are
able to begin at home, thus
avoiding the expenses of renting,
buying or constructing business
premises.
 End of year earnings in the service
sector compare favorably with the
►Customer convenience, next to
quality of service rendered is
the most important factor in
securing and retaining new
customers in service sector
entrepreneurship.
►They do not have to make the
same level of investment in
raw materials, finished goods,
operations or production
management as firms engaged
in business.
 AVENUES: DEALERSHIP,
NETWORKING &
FRANCHISING
►Dealership:-
 Dealers are usually retailers who
sell directly to the public, whereas
distributors are wholesalers who
sell to dealers
 Dealership is a business established
or operated under an authorization
to sell or distribute a company’s
goods or services in a particular
area.
 In distribution process, dealer plays
the role of middlemen. He is the
Definition
“An individual or a business
concern, who is involved in the
activities of buying goods for
their account and then selling
it off from their stock is known
as dealer”
Importance of
Dealership
►Tends to be local and requires less
start up capital
►They focus his efforts on the
management and success of one
location
►Dealer works closely with a
distributor and has to nurture that
relationship
►While a well run distributor selects
an excellent dealer, he in turn,
commands strong locations and
provides service to consumers and
there by contributes to brand’s
►There are risks like fall in prices,
change in business trends, change
in the relationship with original
manufacturer etc
►The dealership of a branded
product enables the dealer to enjoy
national advertising support,
receive training and to take
advantage of incentive progammes.
►Dealership acts as a feedback
mechanism for the manufacturer,
conveying insights gained from the
direct dealing without the
customers.
Networking
►Networking is a powerful
communication tool. It helps to
develop contacts to support
personal growth and
entrepreneurial venture.
►It provides opportunities for
entrepreneurs to form business
relationships, to act upon, to share
information and to seek partners for
business
►Entrepreneurial networks are social
organisations that offer various
Definition
“Entrepreneurial networks are
organised systems of
relationships with customers,
suppliers and other
entrepreneurs , with relatives,
external consultants and other
agents or potential partners.”
- Lambrecht
Importance of
Networking
►Networking ensures proper
communication and helps to build
strong relationships with highly
skilled entrepreneurs of different
age groups, nationality and field of
interest.
►Most of the reputed business
owners join networking groups and
participate in networking activities,
it will generate referrals, and there
by build a strong client base.
►It assists the entrepreneur to
identify new opportunities for
►It is significant to keep up with target
market conditions and overall trends in
business.
►Entrepreneur can often give solutions to
his own business problems through
networking.
►It helps in expanding the frontier of
knowledge of entrepreneur
►In early phases of new business, regular
association with entrepreneurs who are
positive and optimistic will boost the
confidence and morale of new venturers.
ENTREPRENEURSHIP IN
MSME
►MSME - Micro, Small and
Medium enterprises
►They provides huge
employment opportunities to
both rural and urban people.
►In India, resources are scarce
and population is large. It
requires only less capital.
►MSME have been broadly classified
into two categories:
Manufacturing Enterprises and
Service Enterprise.
►Manufacturing Enterprises:
Enterprises which are engaged in
manufacture/ production of goods
pertaining to any industry. Divided
into three :
 Micro Manufacturing Enterprises –
does not exceed Rs 25 Lakhs
 Small Manufacturing Enterprises –
more than Rs 25 Lakhs but does not
exceed Rs 5 Crores
 Medium Manufacturing Enterprises
►Service Enterprise: Enterprises
engaged in providing/ rendering of
services. Divided into three :
►Micro Service Enterprises – does not
exceed Rs 10 lakhs
►Small Service Enterprises – more
than Rs 10 lakhs but does not
exceed Rs 2 Crores
►Medium Service Enterprises – more
than Rs 2 Crores but does not
exceed Rs 5 Crores.
New Classification
► The Government has given a new
turnover based classification of MSME
in February 2018
► On basis of turnover criteria, which
have been applied for all type of
MSME including those operating in the
service sector
 A Micro Enterprise :- a unit where
annual turnover do not exceed Rs 5
crore.
 A small Enterprise :- a unit where
annual turnover is more than Rs 5
crore bus does not exceed Rs 75
crores
Table of Classification of
MSME’s
Classification New Previous
of MSME classification Classification
(Annual (Investment
turnover) in Plant &
Machinery)
 Micro Not exceeding Below Rs 25
Rs 5 Crore lakhs
 Small Between Rs5 Between Rs 25
crore to Rs75 lakhs to 5
crore crores
 Medium Between Rs75 Between Rs 5
Crores to Rs crores to 10
250 crores crores.
 MSME DEVELOPMENT
(MSMED)ACT, 2006
►The Government of India
introduced Micro, Small and
Medium Enterprises Development
Act, in 2006.
►First legislation in India, covering
Micro, small and Medium
enterprises.
►Introduced for the purpose of
promoting, developing and
enhancing the competitiveness of
micro, small and medium
Importance
►Plays a vital role in the overall
growth of Nation’s Economy.
►Give employment to a large
number of un-skilled and semi-
skilled people.
►Also support bigger industries
by supplying raw material,
base goods, finished parts and
components etc.
Objectives
►To promote develop and enhance
competitiveness of micro, small and
medium enterprises.
►To institute a statutory consultative
mechanism at the national level
with wide representation of these
enterprises
►To establish specific funds for the
promotion, development and
enhancing competitiveness of the
enterprises
►To introduce progressive credit
policies and practices and give
preference in government
procurements to their products
and services.
►To implement effective
mechanism for mitigating the
problems of delayed payments to
these enterprises
►To simplify the process of closure
of business
Features/Advantages
►Capital investment
►Labour intensive
►Short period
►Economic stability
►Use of local resources
►Reduction of unemployment
►Saving foreign currencies
►Base for large units
►Essential linkage
►Equitable distribution
►Self-employment opportunities
►Mobilisation of resources
Role of Micro, Small
and
Medium Enterprises
►Nursery of Entrepreneurship
►Mobilisation of local resources
►Generation of employment
►Self employment
►Contribution to GDP
►Low cost of production
►Lesser capital requirement
►Equitable distribution of Income
►Variety of Products
►Balanced Regional Development
►Quick Return on Investment
Problems of MSME’s
►Lack of adequate finance
►Scarcity of raw materials
►Problem of marketing
►Absence of skilled manpower
►Absence of managerial skill
►Absence of proper machinery
and equipment
►Absence of technical know-how
►Poor project planning
►Inadequate infrastructure
Steps in setting up
MSME
►Selecting the activity or service
►Selection of the product
►Conducting market survey
►Selection of the form of
ownership
►Selection of location
►Selection of technology
►Ascertainment of inputs required
►Preparation of project report
►Arrangement of finance