Assignment # 01

1) What is meant by Entrepreneur? Mention some significant characteristics of a successful

entrepreneur.
An entrepreneur is an individual who starts and operates their own business, taking on financial
risks in order to pursue opportunities and create value. They generate new products and services,
improving existing ones, and fostering competition in the marketplace. They are characterized by
their initiative, innovation, and willingness to take on challenges and uncertainties associated with
starting and running a business.

There are some definitions given by scholars-

1. ‘Entrepreneur is a person who takes the risks necessary to organize and manage a
business and receives the financial profits and non-monetary rewards’- Skinner & Ivancevich.
2. ‘Entrepreneur as an agent who buys factors of production at certain prices in order to
combine them into a product with a view to selling it at uncertain prices in future’- Richard
Cantillon.
3. Entrepreneurs are a specialized group of persons who bear uncertainty’- F H Knight.

Some significant characteristics of a successful entrepreneur are-

1) Drive & energy: Entrepreneurs are characterized by their high levels of motivation,
determination, and enthusiasm to pursue their goals and overcome challenges.
2) Self-confidence: Successful entrepreneurs have a strong belief in their abilities and ideas,
allowing them to make decisions and take action with conviction.
3) Long-term involvement: Entrepreneurs are committed to their ventures for the long haul, often
investing significant time and effort into building and growing their businesses.
4) Money as a measure of performance: Entrepreneurs view financial success and profitability
as important indicators of their venture's performance and viability.
5) Persistent problem solving: Entrepreneurs exhibit a tenacious attitude towards solving
problems, persistently seeking solutions and adapting their approaches as needed.
6) Goal setter: Entrepreneurs set clear and specific goals for their ventures, providing a roadmap
and direction for their actions and strategies.
7) Moderate risk taker: Entrepreneurs carefully assess and manage risks, balancing calculated
risks with the potential rewards in order to make informed business decisions.
8) Dealing with failure: Entrepreneurs embrace failure as a learning opportunity, using setbacks
as motivation to improve and grow both personally and professionally.
9) Use of feedback: Entrepreneurs actively seek and value feedback from customers, mentors, and
stakeholders, using it to refine their products, services, and strategies.
10) Taking initiative and seeking personal responsibilities: Entrepreneurs proactively take
charge, showing initiative in identifying opportunities and taking personal responsibility for their
ventures' success.
11) Use of resources: Entrepreneurs efficiently utilize available resources, including human,
financial, and technological, to maximize productivity and achieve business objectives.
12) Competing against self-imposed standards: Entrepreneurs set high standards for themselves
and their businesses, constantly striving for self-improvement and surpassing their own
expectations.
13) Internal locus of control: Entrepreneurs believe they have control over their own destinies
and that their actions and decisions significantly influence the outcomes of their ventures.
14) Tolerance of ambiguity & uncertainty: Entrepreneurs are comfortable operating in uncertain
and ambiguous environments, and able to adapt and make decisions even when faced with limited
information.

In addition to these characteristics, some other notable traits that can be beneficial for
entrepreneurs include flexibility, sociability (communication ability), a desire for high
achievement (achievement-oriented), optimism, self-motivation, independence, foresight, good
organizational skills, innovation, technical and analytical knowledge, clear objectives, business
secrecy, and adherence to ethical principles.

2) Mention different types of entrepreneur. How does an entrepreneur differ from a manager?
 Types of entrepreneur

As per Clarence Danh As per Motive Nature Others

managing First generation and Social
1) Innovative entrepreneurs Established
Inheritance
2) Adoptive innovating
entrepreneurs Rural and Urban
Technologist
3) Fabian
Controlling
entrepreneurs Male and Female Forced
4) Drone
Opportunistic
Private and Public
Administrative
Small scale and
large-scale Acquisitive

Incubative

Individual

Institutional

An entrepreneur could be a manager but a manager cannot be an entrepreneur. An entrepreneur is

intensely dedicated to developing a business through constant innovation. He may employ a
manager in order to perform some of his functions such as setting objectives, policies, rules, etc.
A manager cannot replace performing the allotted duties because a manager has to work as per the
guidelines laid down by the entrepreneur.
Issues Entrepreneur Manager
1) Business The entrepreneur is involved with the A manager is involved with running
Involvement start- up process. the business over a long period of
time.
2) Risk An entrepreneur assumes financial, A manager does not have to bear risks
Involvement material and psychological risks
3) Driving An entrepreneur is driven by perception A manager possesses by the current
Force of opportunity resources.
4) Change An entrepreneur initiates to change A manager follows rules & procedures
involvement
5) Employment An entrepreneur is his own boss A manager is hired employee
6) Rewards An entrepreneur gets uncertain rewards A manager gets fixed rewards and salary
7) Works The entrepreneur does not live with The manager as an employee keeps
status quo. He works to change in running a business on established lines
accordance with his / her personal vision
8) Innovation An entrepreneur is more than an A manager is neither an inventor nor
innovator. He goes much further by innovator.
exploiting the
invention commercially or by the
invention.
9) Dealings He changes the factors combinations and He only deals with day-to-day affairs of
thereby increases productivity and profit a
i.e. he is a change agent. going concern. He is the product of
change.
10) Risk He calculates risk. He is not a gambler He is less tolerant of uncertainty. He
calculator but does
he faces uncertainty and assumes risk. not calculate and share in business risks.
11) Motivation He is motivated by profits but profits and He is motivated by externally imposed
gains are uncertain / irregular and can be goals and rewards.
negative. His salary is fixed / regular and can
never
be negative.
12) Skills He needs intuition, creative thinking and He depends more on human relations
innovative ability among skills. and conceptual abilities , mgt. theories
and
Practices
13) Continuity Entrepreneurship is not a continuous Management is an ongoing and
phenomenon. continuous
process
14) Managerial An entrepreneur requires inter-personal A manager requires some intra-
Action Qualification and may not require personal
managerial actions. qualification or coordinated actions.
15) Focus Point He focuses on starting and expanding the He focuses on daily smooth functioning
business ideas of business

16) Formalities Entrepreneur can be informal and causal Manager’s approach to every problem is
very formal
3) Define Intrapreneur. Differentiate an Entrepreneur from an Intrapreneur.
Intrapreneur: An entrepreneurial-minded employee within an organization who demonstrates
initiative, innovation, and risk-taking to drive positive change and create new opportunities.

Here are a few simplified definitions of intrapreneur from a scholar's perspective:

1. "An intrapreneur is someone who acts like an entrepreneur within a company, taking risks
and developing innovative ideas to drive growth and improve the organization." - D. S.
McClelland

2. "Intrapreneurs are individuals within an organization who exhibit entrepreneurial

characteristics, such as creativity, autonomy, and a willingness to take risks, to develop and
implement new ideas that benefit the company. -J. A. Hornsby et al.

3. "Intrapreneurs are employees who possess an entrepreneurial mindset and engage in

activities that involve innovation, opportunity recognition, and resource acquisition to foster
growth and change within their organization." C. L. Shalley et al.
Difference between Entrepreneur and Intrapreneur
Issues Entrepreneur Intrapreneur
1) Dependency An entrepreneur is independent in Intrapreneur is dependent on
his entrepreneur /
operation Owner/employer.
2) Raising An entrepreneur himself raises Funds are not raised by Intrapreneurs
funds funds
3) Risk Entrepreneur bears the risk fully Intrapreneur does not fully bear the
involved in the business risk.
4) Operation He operates the business from He operates the activities from within
outside the
organization itself
5)Idea They innovate new ideas and Top executives are encouraged to catch
conversion convert them into an organization hold of new ideas to convert them into
to produce products
6) Invention Entrepreneur exploits the invention Intrepreneur may stop their work after
commercially invention
7) Material An entrepreneur is independent and Intrepreneur has no strong desire for
success works material
for material success success
8) Work done Doing something new, large and Doing things right
attractive things
9) Thinking Free thinker Forced to think independently but
within
scope of business activities
4) Mention some pull factors and push factors which can influence in entrepreneurial
process. Can you relate these factors with entrepreneurship development?
Here are some examples of pull factors and push factors that can influence the entrepreneurial
process:
Pull Factors:
1. Independence and Autonomy: The desire to be one's own boss and have control over
decision-making.
2. Self-Fulfillment: The opportunity to pursue one's passions, interests, and personal goals
through entrepreneurship.
3. Wealth and Financial Rewards: The potential for higher income and financial success
through the success of the business.
4. Creativity and Innovation: The ability to express creativity and introduce new ideas or
solutions through the entrepreneurial venture.
5. Personal Growth and Development: The opportunity to learn and grow personally and
professionally through the challenges and experiences of entrepreneurship.

Push Factors:
1. Job Dissatisfaction: Unhappiness or dissatisfaction with current employment, including
issues such as lack of fulfillment, limited growth opportunities, or poor work-life balance.
2. Lack of Employment Opportunities: Difficulty finding suitable employment or facing
unemployment in the mainstream job market.
3. Insufficient Salary or Benefits: Low wages, inadequate compensation packages, or lack of
benefits in current employment.
4. Workplace Challenges: Facing discrimination, harassment, or a toxic work environment in
the current job.
5. Limited Career Advancement: Feeling stagnant in the current job with limited opportunities
for career growth and advancement.

These factors can indeed influence entrepreneurship development. Pull factors act as
motivators and incentives for individuals to embark on entrepreneurial ventures. They create a
positive environment where individuals are inspired to take risks, innovate, and pursue their
entrepreneurial aspirations. Pull factors contribute to the growth and development of
entrepreneurship by attracting individuals with the necessary drive and enthusiasm to start and
sustain businesses.

On the other hand, push factors can also play a significant role in entrepreneurship
development. Negative experiences or circumstances in traditional employment can push
individuals to seek alternatives, such as starting their own businesses. Push factors create a
sense of urgency and necessity for individuals to take control of their professional lives, leading
them to explore entrepreneurship as a viable option. Overall, both pull factors and push factors
shape the entrepreneurial landscape by influencing the motivations and decisions of individuals
to engage in entrepreneurial activities.
5) Is there any relationship between the level of economic development and level of
entrepreneurship? How?
Yes, there is a relationship between the level of economic development and the level of
entrepreneurship.
Entrepreneurship stimulates capital formation, improves per capita income, promotes balanced
regional development, enhances living standards, contributes to economic independence, and
fosters technological advancements. Here are some ways in which entrepreneurship contributes
to economic development:

1. Capital Formation: Entrepreneurs mobilize savings and attract investments, contributing to

economic growth and development.

2. Increased Per Capita Income: Entrepreneurship leads to the growth of industries, businesses,
and national income, improving individual economic well-being.

3. Job Creation: Entrepreneurs drive employment opportunities, reducing unemployment and

promoting socio-economic stability.

4. Balanced Regional Development: Entrepreneurs establish industries in underserved areas,

promoting balanced regional growth and leveraging government incentives.

5. Improved Living Standards: Entrepreneurs offer affordable goods, increase consumption

variety, and enhance the overall quality of life.

6. Economic Independence: Entrepreneurship fosters self-reliance and innovation, reducing

dependence on external factors and strengthening the economy.

7. Technological Advancement: Entrepreneurs drive innovation, and introduce new

technologies, products, and services, leading to productivity gains and economic growth.

Overall, entrepreneurship acts as a catalyst for economic development by promoting

investment, job creation, regional development, and the introduction of new technologies. It
contributes to higher productivity, improved living standards, and the overall progress of a
nation's economy.
6) Briefly discuss different types of entrepreneurs.

Types of entrepreneur

As per Clarence Danh As per Motive Nature Others

managing First generation (new) Social

1) Innovative entrepreneurs and Established

Rural and Urban Inheritance

2) Adoptive innovating
entrepreneurs
Technologist
Male and Female
3) Fabian
Controlling
entrepreneurs Forced
Private and Public
4) Drone
Opportunistic
Small scale and large-
scale
Administrative

Acquisitive

Incubative

Individual

Institutional

As per Clarence Danh ( American Agricultural Study)

1. Innovative Entrepreneurs: These entrepreneurs are focused on introducing new projects
or innovations in existing ventures. They constantly observe their environment, gather
information, and contribute something new to their business. They are known for their ability
to generate innovative ideas and contribute to economic development.
2. Adoptive or Imitative Entrepreneurs: These entrepreneurs imitate or adopt the ideas,
technologies, and strategies developed by innovative entrepreneurs. They lack creative or
innovative ideas of their own and instead replicate what has already been successful. They
contribute to economic development by utilizing existing innovations.
3. Fabian Entrepreneurs: Fabian entrepreneurs are cautious and conservative individuals who
do not actively seek out new ideas or innovations. They wait for external developments to
motivate them to make changes. They are slow to adapt and prefer to follow traditional
practices and customs.
4. Drone Entrepreneurs: Drone entrepreneurs are resistant to change and satisfied with the
existing way of doing business. They are conservative and reluctant to adopt new opportunities
or innovations. They continue operating in traditional ways and may suffer losses as a result.
As per Motive
1. Managing Entrepreneurs: Their primary goal is to attain security and stability in their
business endeavors.
2. Innovating Entrepreneurs: They are driven by a desire for excitement and are constantly
seeking new ideas and innovations.
3. Controlling Entrepreneurs: Their main focus is on gaining power and influence within
their businesses and industry.

As per Nature
1. First Generation vs. Established Entrepreneurs: First-generation entrepreneurs are those
who start a business from scratch, while established entrepreneurs have already successfully
established and run businesses.
2. Rural vs. Urban Entrepreneurs: Rural entrepreneurs operate businesses in rural areas,
while urban entrepreneurs are based in urban or city settings.
3. Male vs. Female Entrepreneurs: This classification is based on the gender of
entrepreneurs, with male entrepreneurs being men and female entrepreneurs being women.
4. Small-scale vs. Large-scale Entrepreneurs: Small-scale entrepreneurs run small
businesses with limited resources and operations, whereas large-scale entrepreneurs manage
businesses on a larger scale with significant resources and operations.

Other categories of entrepreneurs mentioned in the text include:

1. Social Entrepreneurs: These entrepreneurs drive social innovation and transformation in
areas such as education, healthcare, and environmental sustainability.
2. Entrepreneurs by Inheritance: Individuals who become entrepreneurs by inheriting family
businesses.
3. Technologist Entrepreneurs: Technically qualified individuals who enter the business field
and utilize their expertise in various aspects of business.
4. Forced Entrepreneurs: Individuals who become entrepreneurs due to circumstances, such
as returning NRBs (Non-Resident Bangladeshis) or educated unemployed individuals seeking
self-employment.
5. Opportunistic Entrepreneurs: Entrepreneurs with institutional education and work
experience who aim to explore managerial roles rather than technical positions. They are
socially cautious and skilled in public relations.
6. Administrative Entrepreneurs: Entrepreneurs focused on innovative administrative
techniques and functions to enhance organizational management.
7. Acquisitive Entrepreneurs: Entrepreneurs who acquire valuable resources or opportunities
from the competitive environment.
8. Incubative Entrepreneurs: Entrepreneurs who generate and nurture new ideas within an
organization.
9. Individual Entrepreneurs: Dominant in the small-scale sector, these entrepreneurs operate
and control organizations individually, enjoying flexibility and quick decision-making.
10. Institutional/Corporate Entrepreneurs: A group of entrepreneurs with diverse skills
working collectively through a corporate body to handle complex decision-making networks.
7) What is meant by ‘Ethical Dilemma’? How the ethical dilemmas can be resolved?
An ethical dilemma is a situation a person faces in which a decision must be made about the
appropriate behavior.
“An ethical dilemma occurs when individuals are faced with a situation in which they must
choose between two or more morally justifiable but mutually exclusive courses of action." –
Des Jardins

Six Step Approach to resolve ethical dilemmas-

1) Obtain facts: Gather relevant information about the situation.
2) Identify ethical issues: Recognize the moral dilemmas or conflicts at hand.
3) Determine affected parties: Understand who will be impacted and how.
4) Identify alternatives: Consider different possible courses of action.
5) Assess consequences: Evaluate the potential outcomes for each alternative.
6) Decide on action: Make a decision based on ethical considerations and the analysis
conducted.
8) Write short notes on:
a) Moderate Risk Taker;
b) Technologist Entrepreneur;
c) Innovative Entrepreneurs;
d) Opportunistic Entrepreneurs;
e) Ethics and Social Responsibility of Entrepreneurs
a) Moderate Risk Taker:
Moderate risk-takers are entrepreneurs who carefully weigh the risks and rewards before
making decisions. They find a balance between being cautious and taking advantage of
opportunities.
b) Technologist Entrepreneur:
Technologist entrepreneurs are experts in technology who use their knowledge to create new
and innovative products or services. They use technology to identify gaps in the market and
make advancements.
c) Innovative Entrepreneurs:
Innovative entrepreneurs are creative individuals who introduce new ideas, methods, products,
or services to the market. They think differently, solve problems, and offer unique solutions.
d) Opportunistic Entrepreneurs:
Opportunistic entrepreneurs are quick to spot and take advantage of favorable business
opportunities. They adapt to changing trends and identify gaps in the market to create
successful ventures.

e) Ethics and Social Responsibility of Entrepreneurs:

Ethics and social responsibility are important principles for entrepreneurs. It means conducting
business in a fair, honest, and responsible way, while considering the impact on society.

Example: An entrepreneur who starts a company that focuses on eco-friendly products and
practices, treats employees well, and gives back to the community.