Entrepreneurship Development UNITI Entrepreneurship Entrepreneur The term entrepreneur

Entrepreneurship Development UNIT-I Entrepreneurship

Entrepreneur • The term entrepreneur is an individual who organizes and operates a business or businesses, taking on financial risk to do so.

Entrepreneurship • Entrepreneurship means 'To undertake, ' is the act and art of being an entrepreneur or one who undertakes innovations or introducing new things, finance and business acumen in an effort to transform innovations into economic goods.

Types of Entrepreneur 1. 2. 3. 4. Innovative Entrepreneurs Imitative Entrepreneurs FABIAN ENTREPRENEUR Drone Entrepreneur

Innovative Entrepreneurs Adventurous entrepreneurs who attempt to put attractive possibilities in to practice are included under this type. They utilize a chance to introduce a new technique or a new product. They mobilize sufficient capital to start an enterprise befitting to this possibility. This type of Entrepreneurs introduces new product and new production techniques and find out the new markets for their product

Imitative Entrepreneurs This type of Entrepreneurs attempts to imitate innovative entrepreneur. They imitate the techniques and activities of others The Entrepreneur of the developing countries belong to this type.

FABIAN ENTREPRENURE Entrepreneur who attributes preference to Customs, religion tradition and past habit come in these categories. Being shy and lazy this type of entrepreneur are very cautious to accept changes and they view changes with suspicion. Being Reluctant to face risk, they continuously follow the footsteps of their predecessors.

Drone Entrepreneur is unwilling to make any change in the production system, even if the system causes losses repeatedly. They never try to rise in accordance with the opportunities or to accept the warning given by times. Even if their products have lost marketability and the activities of the enterprise have been proved to be uneconomical and the enterprise has been thrown out of the market.

Difference between Entrepreneur and Intrapreneur 1. Entrepreneurs provide the spark. Intrapreneurs keep the flame going 2. Entrepreneurs are found anywhere their vision takes them. Intrapreneurs work within the confines of an organization 3. Entrepreneurs face many hurdles, and are sometimes ridiculed and riddled with setbacks. Intrapreneurs may sometimes have to deal with conflict within the organization 4. Entrepreneurs may find it difficult to get resources. Intrapreneurs have their resources readily available to them 5. Entrepreneurs may lose everything when they fail. Intrapreneurs still have a paycheck to look forward to (at least for now) if they fail 6. Entrepreneur raises the finance from various sources and also guarantees their return. Intrapreneur does not own responsibility to raise the capital or to return it 7. Entrepreneur has no relation with any organisation. Intrapreneur operates within the organisation

Entrepreneurship in Economic Growth 1. 2. 3. 4. 5. 6. Promotes Capital Formation Creates Large-Scale Employment Opportunities Promotes Balanced Regional Development Reduces Concentration of Economic Power Wealth Creation and Distribution Increasing Gross National Product and Per Capita Income 7. Improvement in the Standard of Living 8. Promotes Country's Export Trade 9. Induces Backward and Forward Linkages 10. Facilitates Overall Development

Characters of an Entrepreneur 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Disciplined Confidence Open Minded Self Starter Competitive Creativity Determination Strong people skills Strong work ethic Passion Feels a Sense of Ownership Able to Communicate

Factors affecting Entrepreneurship 1. Economic Environment i) Capital ii) Labour iii) Raw Material iv) Market 2. Social Environment i) Family Background ii) Friends, Relatives and Social Status iii) Social Mobility iv) Social marginability 3. Compelling Factor 4. Cultural factor 5. Facilitating Factor 6. Psychological Factors 7. Attitude of Government 8. Education and Technical know how 9. Financial Assistance form Institutional sources 10. Accommodation in Industrial Estate 11. Encourage from Large Industries 12. Machinery on Hire purchase