ENTREPRENEUR &

ENTREPRENEURSHIP
MODULE I
 Entrepreneur
• The word derived from a French word
Entrepreneur.
• It means to undertake
• They are performer and work hard to achieve
it.
• As per George Barnard:-
- those who makes things happen.
 Concept of Entrepreneur
• Early period – early example is of Marco polo. He use to sign contracts with
capitalist for trade to sell his goods. After the successful merchant adventure and
the sell of the product, the profit was shared by the capitalist and the merchant.

• Middle Ages –in the middle age the term entrepreneur was refers to a person
managing large project. For example clerics who are in charge of great
architectural work such as castle, public building, cathedrals etc.

• !7th century –a person who entered into the contractual agreement with the
government to perform a service or to supply some goods. This evolve risk as the
contract price was fixed.

• 18th century - as the result of industrialization , technical inventors did not have
money to turn their invention into product, hence capitalist provided finance to
them.
 Concept of Entrepreneur
• 19th century – entrepreneur organises, operates an
enterprise for personal gain. He takes risk, he plans,
organize, and lead his enterprise.
• 20th century – in 20th century, entrepreneur were
described as innovators. Entrepreneur develops untried
technology.

• 21th century – as per de bone in 21st century

entrepreneur is not innovation but value addition.
Adding incremental value to the current product or
service.
 Meaning and Definition
Everybody is an Entrepreneur

In term:-
• Self development
• Risk taking
• Self decision making.
 Difference between entrepreneur &
Manager
Entrepreneur Manager
• Start new venture • Render his service to the new
• He is the boss venture
• Manager is the employee
• Entrepreneur bares all risk.
• Manager neither shares risk or
• Receive profit, which can be bares
uncertain and irregular • Managers receive salary for
• Entrepreneur introduce service rendered.
innovation and new ideas • Manager execute the plan
• Responsibility is high. • Responsibility is low
• Self motivated. • Manager is motivated by
power
 Entrepreneurship

The process of creating an enterprise is called an

Entrepreneurship.
 Meaning and definition
• Entrepreneurship is the process of changing ideas into
commercial opportunities and creating value.
• It is the tendency of a person to organize the business
of his own run profitability.
• It is doing things in a better way and decision under
the condition of uncertainty.
• Is the process of identifying opportunities in the
market place arranging the resources required to
pursue these opportunities and investing the resource
to exploit the opportunity for long term gains.
 Nature & Characteristic of
Entrepreneurship
• Function of innovation
• Function of leadership
• Organization building function
• Functions of high achievements
• It is function of economic activity – as it involves creation and operation of a
enterprise.
• It involves risk
• It is unique combination of resource that make existing methods obsolete
• It is concerned with employing, managing, developing the factors of production.
• It is a positive orientation towards growth in sales, income, asset, and
employment.
• Edward De Bono projected that entrepreneurship is not innovation but value
addition.
• Dunamic process of creating incremental wealth.
 Creativity, Invention, Innovation
• Creativity- is the application of a person’s mental
ability and curiosity to discover something new.
Creativity is the fragrance of individual freedom.
• Invention – it means the Idea behind things. It
involves the discovery of new ideas, new
products, and new methods.
• Innovation- Creativity lead to innovation and
innovation simply means introducing something
new.
 Schumpter’s five kinds of Innovation
 The introduction of a new good
 The introduction of a new method of
production.
 The opening of new market
 The utilisation of some new sources of supply
for raw material
 The carrying out of some new organisational
form of the industry.
 Difference between innovation and
Invention
Invention Innovation
• It is the creation of a new • It is the introduction of new
product, service or process product service or process
• May not be commercialized into the market place
• Invention may be for • Results into
economic or non-economic commercialization
motive • Innovation is usually for
• May bring few changes in economic motive
organization • Brings organizational
change
 Risk involved in Entrepreneurship
We can observe rewards successes and
achievements of entrepreneur. However , there
is also a dark side of entrepreneurship.
Types of risks:-
• Financial Risk
• Personal risk
• Career risk
• Psychological Risk
 Barriers in Entrepreneurship
• Environmental Barrier – caused due to lack of
skill labour, good machinery, infrastructure,
fund, other environmental barrier.
• Personal Barrier- Unwillingness to invest
money, lack of confidence, lack of motivation,
lack of patience, inability to dream
• Social Barrier- Low caste, Customs and
tradition of people.
 Factor Affecting Entrepreneur Growth
• Psychological Factor
- Need for achieving the goal
- he should be a aimer not dreamer.
- Recognition helps to motivate
- Need of authority will inspire men at work

• Cultural Factor
- Values and human behaviour
- Religious believe shapes entrepreneurial culture
- Minority groups
- Profit motive character coupled with urge of money.
• Social Factor
- Legitimacy of entrepreneurship
- Social marginality
- Family back ground
- Caste system
- Occupation
- Educational and technical qualification
- Social status
- Social responsibility

-
• Economic Factor
- Legitimacy of entrepreneurship
- Social marginality
- Family back ground
- Caste system
- Occupation
- Educational and technical qualification
- Social status
- Social responsibility
• Personality factor
- Personality
- Independence
- Compulsion
 Successful Entrepreneur
“Qualities & Traits”
• Passion for Business
• Creativity
• Willingness to make sacrifice and assume risk
• Hard work
• Desire for high achievement
• Optimism
• Foresight
• Self confidence
• Innovative ability
• Communication Skill
• Technical knowledge and willingness to change
• Determination
• Leadership
• Team spirit
 Characteristic of a Intrepreneur
• Own talents, responsibility, individual
expression, own idea
• Vision to realize
• ability to plan their own idea
• High need for achievement
• Introduce new product, ideas & service within
the framework of a company.
• They are too dedicated to their work.
 Difference between Entrepreneur &
Intrepreneur
Entrepreneur Intrapreneur
• He is independent • He
• Takes the profit of the • He is semi independent
• He does not take the profit of the
business
business.
• He is the real owner of the • He does not bear all risk of the
business business
• He operates from outside • He is not the real owner of the
an organization business rather works for the
business
• He undertakes the responsibility
of creating innovation and
applies his ideas
 Functions of an Entrepreneur
• Planning The project
• Organizing
• Risk taking and uncertainty bearing
• Management
• Decision making
• Search for market
• Distribution of income
• Innovation
• Liaison with government
• Other function
 Role of Entrepreneur in Economic
Development
• Providing leadership in the industrial
development
• Introducing innovation and changes
• Improvement in Per Capita Income
• Generation of Employment
• Balanced Regional Development
• Improvement in Living Standards
• Economic Independence
• Backward and Forward Linkages
 Concept of Women Entrepreneurship
• An enterprise owned and controlled by
women having minimum financial interest of
51% of the capital and giving at least 51% of
the employment generated in the enterprise
to women.
Women entrepreneurship in Kerala
• Kerala government define women industrial
units as - owned/ organized by women and
engaged in small scale cottage industries with
not less than 80% of the total workers as
women.
 Reason for the slow growth of the Women
Entrepreneurship
• Unfavorable family back ground
• Lack of business education
• Dual role of women
• Lack of training
• Absence of individual spirit
• Lack of freedom
• Family burden
• Lack of security
• Corruption in administration
 Challenges of Women Entrepreneur
• Shortage of finance – they don’t have properties on their name. owing lack
of confidence male member of the family don’t rick their capital on the
women entrepreneur. While banks also have negative attitude while leading
loan to women entrepreneur.

• Shortage of raw material – it become difficult to procure the raw material

from various remote area.

• Inadequate marketing facility – most of the time women entrepreneur are

exploited while marketing their product. Now thanks to Social media ,
women got the platform to market their product without any hassle.

• Keen competition – sometime face tough competition from male

entrepreneurs,. They lack spending in advertisement.
 Challenges of Women Entrepreneur
• High cost production- high material cost and low
productivity cost is the biggest challenge for women
entrepreneur.
• Family responsibility
• Low mobility - inability to travel from on place to another
for business purpose. Single women asking room will be
looked upon with suspicion.

• low capacity to bare risk

• Social Attitude
• Low need for achievement
 Measures taken for the development of
women entrepreneur
• Women constitute half the world population, but
women perform 11 trillion worth of unpaid or
invisible economic activity world wide.
• As per the report of 1995 no women in any single
country enjoy equality with men.
• A country march forward to development if women
development id assured.
• Indian government had ensured various measured
for the development of women entrepreneurs.
 Some of the important measures are
outlined
TRYSEM (training of rural youth for self employment)To provide rural youth (18-35 years)
from families below the poverty line with training and technical skills to enable them to
take up self-employment in agriculture, industry, services and business activities.
• Training is perceived not only in terms of provision of physical skills. But also change in
attitude, enhancement of motivation and skills in human relations etc., are also ought to
be imparted.
• Self-employment is defined as gainful employment on a full time basis which results in
income which is sufficient for the family of the youth cross the poverty line. Situation of
employment in which the means of production are owned, hired or taken on lease are
taken to be self-employment situations.
• Members of the poorest family first
• Priority should be given to members of SC's and ST’s.
• At least 1/ 3 of candidates should be women.
• Preference should be given to persons who have completed the 12 month course
under the national Adult Education program.
• BANK
• NABARD (National Bank for Agriculture and Rural Development)- NABARD is a
Development Bank with a mandate for providing and regulating credit for the
development of agriculture, small-scale industries, cottage and village industries,
handicrafts and other allied economic activities in rural areas to promote
prosperity of rural areas.

• INDUSTRIAL POLICY- The new industrial policy government (1991)has specially

highlighted the need for conducting special entrepreneurship programme for
women.

• INSTITUTION & Voluntary association - several voluntary agencies like FICCI ladies
organisation (FLO), national alliance of young entrepreneur(NAYE)

• National policy for the empowerment of women, 2001.