INTRODUCTION TO ENTREPRENEURSHIP The word entrepreneur is derived

INTRODUCTION TO ENTREPRENEURSHIP The word ‘entrepreneur’ is derived from the French word ‘entreprendre’ which means ‘ to undertake’ Entrepreneur is a person who translating a profitable idea into a productive activity During the 17 th century the architects and contractors of public works were called as entrepreneur Meaning and Definition of an Entrepreneur In simple words , the term entrepreneur refers to a person who creates an enterprise An entrepreneur is a person responsible for setting up a business or an enterprise According to Peter F Drucker, “ Entrepreneur is a person who searches for change, responds to it and exploits opportunities. Innovation is the specific tool of an Entrepreneur

Characteristics of an Entrepreneur • • • Willingness to work hard Desire for high achievements Work independent Highly optimistic Good foresight Good organizer Innovative character Risk taking Secrecy maintenance Communication skill Opportunity explorer Motivator

Role or Importance of an Entrepreneur in Economic Development • • • Co-ordinating Role Agents Role of Innovation Risk Assumption Role Imitating Role Capital Formation Role Employment Generation Role Export Promotion Role as a Competitor Role in equal distribution of wealth

Types of Entrepreneurs 1. Innovative Entrepreneurs 2. Adoptive or Imitating Entrepreneurs 3. Fabian Entrepreneurs 4. Drone Entrepreneurs Other types of classification of Entrepreneurs v According to the types of business handled • Business Entrepreneurs • Trading Entrepreneurs • Industrial entrepreneurs • Corporate Entrepreneurs • Agricultural Entrepreneurs v According to the use of Technology • Technical Entrepreneurs • Non Technical Entrepreneurs • Professional Entrepreneurs

v According to Growth • Growth Entrepreneurs • Super Growth Entrepreneur v According to the stages of development • First generation Entrepreneurs • Modern Entrepreneurs • Classical Entrepreneurs v Other types • Innovative Entrepreneurs • Institutional Entrepreneurs • Inheritance Entrepreneurs • Technological Entrepreneurs • Forced Entrepreneurs • Solo Entrepreneurs

Entrepreneurship Definition According to A H Cole “Entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain profit by production or distribution of economic goods & services. ” Meaning It refers to the functions performed by an entrepreneur in establishing an enterprise It is the process of involving various actions to be taken to establish an enterprise to achieve predetermined goals

Factors Influencing Entrepreneurship 1. Economic Factors • Capital • Labour • Market • Transport 2. Geographical Factors • Availability of raw materials • Power Resources • Climatic Conditions 3. Political Factors 4. Social Factors • Religion • Family System • Social Mobility • Security 5. Cultural Factors

Difference between Entrepreneur & Entrepreneurship Person Function Visualizer Vision Creator Creation Organizer Organization Innovator Innovation Technician Technology Initiator Initiation Decision maker Decision Planner Planning Leadership Motivator Motivation Programmer Action Risk taker Process of risk taking Communicator Communication

Difference between Professional Manager & Entrepreneur POINTS PROFESSIONAL MANAGER ENTREPRENEUR Motive Render the services in an enterprise already started by others Start venture by setting up an enterprise. He starts the enterprise for his personal gain & satisfaction Status He is the servant in an enterprise He is the owner of the enterprise owned by some other entrepreneur maintained by him Risk bearing He do not undertake to bear the risk since he is a mere servant He undertake to bear the risk of loss of all kinds, because he is the owner of an enterprise Rewards He gets salary as a reward of his service He receive the profit as his consideration Commitment He should be loyal to the organization He is committed in the organisation

Women Entrepreneurs An enterprise owned and controlled by a women having a minimum financial interest of 51% of the capital & giving at list 51% of employment generated in the enterprise to women Features of Women Entrepreneur • Imaginative • Attribute to work hard • Profit earning capacity • Most women with small income are likely to become entrepreneurs

Why Women become Entrepreneurs • • To become economically independent To establish their own enterprise To establish their identity in the society To achieve excellency in their endeavor To build confidence to themselves To develop risk assuming ability To claim equal status in the society To secure greater freedom & mobility successful women Entrepreneurs in India § § Kiran mazumdar shaw Shahnaz Hussain Ekta Kapport Kathi Ben

Problems of Women Entrepreneurs • Problems of finance • Lack of family support • Lack of education • Lack of awareness • Low risk bearing ability • Limited mobility • Humiliating attitude • Competition • Lack of marketing skills • Lack of managerial skills • Lack of self confidence • Lack of access of technology • Other problems lack of practical knowledge lack of positive attitude male dominated society lack of storage facilities

Remedial measures • Creating awareness • Offering concessions • Simple legal formalities • Co-operation from agencies • Financial assistance • Training & development programmes • Women’s cell • Single window approach • Women entrepreneurs’ associations • Women co-operatives

Rural Entrepreneur who have established their business enterprises in rural areas are called rural entrepreneur Challenges faced by Rural Entrepreneur • Financial challenges • Marketing challenges • Managerial challenges • Technological challenges • Policy challenges • Human resource challenges • Other challenges • Family problems • Poor infrastructural facilities at the rural areas • Poor distribution • Competition from malls & super markets

Agricultural Entrepreneur who have taken agriculture as their main profession for their livelihood and source of income are called agricultural entrepreneurs Challenges of Agricultural Entrepreneur • Environmental challenges • Policy challenges • Marketing challenges • Infrastructural challenges • Financial challenges • Managerial and labour challenge • Poor farming techniques • Lack of branded output • Low productivity resulting in low revenue • Weak implementation of agricultural laws • Limited public agricultural institutions

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