ENTREPRENEURSHIP

CHP1: INTRODUCTION TO ENTREPRENEURSHIP.

I. Definition of entrepreneur: An individual who organizes and operates a business or businesses, taking on financial risk to do so is known as an entrepreneur. Over time, scholars have defined the term in different ways:

Jean-Baptiste Say: An entrepreneur is an economic agent who unites all means of

production- land of one, the labor of another and the capital of yet another and thus produces a product. By selling the product in the market he pays rent of land, wages to labor, interest on capital and what remains is his profit.

David McClelland: An entrepreneur is a person with a high need for achievement

[N-Ach]. He is energetic and a moderate risk taker.

Albert Shapero: Entrepreneurs take initiative, accept risk of failure and have an
internal locus of control.

II.

ENTREPRENEURSHIP TRAITS: There are certain traits every entrepreneur must possess if he wants to move around the inner workings of economics and commerce of a business. Not all might be useful at once but they can be of help at various stages. Here are a few:

Take your work seriously: u want success, well time to get tough. Business sense: Few crash courses on business and your set with sense. Inspiration: Be an inspiration and come up with products that are amazing and
people like.

Daring: Wanna play safe, join ballet. Running a business requires taking risks so
better live with it.

Charisma: While running a business money isnt gonna drop from the sky, one
will require funds (obviously). But with that sleepy face you wont get any. You want money turn on that charm big time.

Get to know your costumers: costumers are your gods. Please them and ull excel.
Dont and ull fall. Personalized attention can make any costumer happy.

Leadership qualities: You have the ability to effect change, wisdom to make
people listen, then be sure you can be a leader.

Self motivation: I CAN DO IT is a mantra that never cheated any person who
followed it.

III.

CLASSIFICATION OF ENTREPRENEURS: Entrepreneurs can be classified based on many types: A. Based on functional characteristics: 1. Innovative entrepreneur: Such entrepreneurs introduce new goods or new methods of production or discover new markets or reorganize the enterprise. 2. Imitative or adoptive entrepreneur: Such entrepreneurs dont innovate ,they copy technology or technique of others. 3. Fabian entrepreneur: Such entrepreneur change only when there is a serious threat to the very existence of the enterprise. In other words, change is something they dont easily accept. 4. Drone entrepreneurs: Such entrepreneurs are characterised by a diehard conservatism i.e. they rather have losses than change the existing hierarchies. B. Based on development angle: 1. Prime mover: This entrepreneur sets in motion a powerful sequence of development expansion and diversification of business. 2. Manager: such an entrepreneur doesnt initiate expansion and its content in just staying in business. 3. Minor innovator: This entrepreneur contributes to economic progress by finding better use for existing resources. 4. Satellite: This entrepreneur assumes a suppliers role and slowly move towards a productive enterprise. 5. Local trading: such entrepreneur limits his enterprise to the local market. C. Based on business: 1. Manufacturing 2. Wholesaling 3. Retailing 4. Service. D. Based on personality trades: 1. The improver: They have unwavering to run these businesses with high integrity and ethics. 2. The advisor: Customer is right and we must do everything to please him because company is built by advisors and advisors become customer focused. 3. The superstar: All depends upon the charisma and on the high energy of the superstar CEO. 4. The artists: Are highly creative type, very conscious about business. If feedback is constructive i.e. positive than also lets go with negative self-image. 5. The visionary: Too focused on dreams with little focused on reality. 6. The analyst: More focused on fixing problems in a systematic way.

7. The fireball: A business owned and operated by a fireball is full of life, energy and optimism. They have A get it done attitude in a playful manner. 8. The hero: Have an incredible will and ability to lead the world and your business through challenges. 9. The healer: They provide nurturing harmony to their business, they have uncanny abilities to survive and persists inner calm. 10. The Opportunistic: take advantage of opportunities as they occur.

IV.

CREATING AND STARTING A NEW VENTURE: A. Sources of new ideas: 1. Consumers: A potential consumer must be seen as a good asset for new ideas before starting a venture. A knowledgeable costumer can give ideas in the form of feedback and suggestions which will help the entrepreneur kick start his new venture from keel plates up. 2. Existing companies: With the help of established formal methods potential entrepreneurs can evaluate competitive products & services on the market which may result in new and more market appealing products and services. 3. Distribution channels: Members of the distribution channels are familiar with the needs of the market and hence can prove to be excellent sources of new ideas. 4. Government: it can be a source of new product ideas in two ways firstly, the patent office files contain numerous product possibilities that can assist entrepreneurs in obtaining specific product information, and secondly, response to government regulations can come in the form of new product ideas. 5. Research and development wing: Entrepreneurs own R&D is the largest source of new idea. A formal and well-equipped research and development department enables the entrepreneur to conceive and develop successful new product ideas.

B. Methods of generating ideas: 1. Focus Groups these are the groups of individuals providing information in a structural format. A moderator leads a group of people through an open, indepthdiscussion rather than simply asking questions to solicit participant response. Such groups form comments in open-end in-depth discussions for a new product area that can result in market success. 2. Brainstorming: In this method ideas and solutions are obtained by a group of people. The creativity within the group is stimulated by meeting up with more

experienced and knowledgeable people in the field in the form of workshops and seminars. 3. Problem inventory analysis it is a method for obtaining new ideas and solutions by focusing on problems. Instead of generating new ideas, the consumers are provided with list of problems and then asked to have discussion over it and it ultimately results in an entirely new product idea.

Chp2: Financing a new venture

I. E-COMMERCE: Electronic commerce, commonly known as e-commerce, is a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks. Invention of online shopping in 1979 BY MICHEAL ALDRIECH gave birth to a whole new concept of financing and commerce called E-COMMERCE. Within a span of only a few decades e-commerce has spread across many industries and has several business applications. A. Some common applications related to electronic commerce are the following: Document automation in supply chain and logistics Domestic and international payment systems Enterprise content management Group buying Automated online assistants Instant messaging Newsgroups Online shopping and order tracking Online banking Online office suites Shopping cart software Teleconferencing Electronic tickets Round the clock Saves loads of time Global exposure

B. Advantages: