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Unit- 1

Entrepreneurship involves designing, launching, and managing a new business, typically a small one, with the aim of making a profit while assuming risks. Entrepreneurs play various roles including initiators, innovators, coordinators, leaders, development agents, and social workers, and they exhibit characteristics such as creativity, risk-bearing, and a focus on profit. The entrepreneurial process includes stages like idea discovery, business planning, resourcing, managing, and harvesting, distinguishing between the individual entrepreneur and the broader concept of entrepreneurship.

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19 views

Unit- 1

Entrepreneurship involves designing, launching, and managing a new business, typically a small one, with the aim of making a profit while assuming risks. Entrepreneurs play various roles including initiators, innovators, coordinators, leaders, development agents, and social workers, and they exhibit characteristics such as creativity, risk-bearing, and a focus on profit. The entrepreneurial process includes stages like idea discovery, business planning, resourcing, managing, and harvesting, distinguishing between the individual entrepreneur and the broader concept of entrepreneurship.

Uploaded by

DEVIL BOY
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Entrepreneurship

Unit- 1
Introduction of Entrepreneurship
• Entrepreneurship is the process of designing, launching and
running a new business, which is often initially a small business.

• It is also defined as "capacity and willingness to develop,


organize and manage a business venture along with any of its
risks to make a profit”.

• The people who create these businesses are called


Entrepreneurs.

• Entrepreneur: An entrepreneur is someone who develops a


business model, acquires the necessary physical and human
capital to start a new venture, and operationalizes it and is
responsible for its success or failure.
Role of an Entrepreneur
1) Initiator: Key man who envisages new opportunities, new lines of production, new
products & co-ordinates all other activities.

2) Innovator: Brings in overall change through innovation for maximum social good.
Human values remain scared & inspire him to serve society. He is headed with
innovation & creativity.

3) Coordinator: He has firm belief in social betterment & carries out this
responsibility with conviction. In this process, he accelerates personal, economic
as well as human development.

4) Leader: He is a visionary & an integrated man with outstanding leadership


qualities. With a desire to excel, he gives top priority to research and Development.

5) Development Agent: He contributes in development of country by way of


providing employment & building up nation’s economy. Results in raising standard
of living of people.

6) Social Worker: He always works for the well-being of the society.


Characteristics of Entrepreneurship
• Economic Activity: Entrepreneurship is an economic activity, as it involves
designing, launching and running a new business enterprises in order to earn
the profit, by ensuring best possible use of resources.

• Creativity and innovation: It involves discovering new ideas and


implementing it in business. The entrepreneur continuously evaluates current
modes of running a business and identifies new methods and techniques for
operating the business more efficiently and effectively.

• Profit: The activity of entrepreneurship is undertaken with the sole objective


of making the profit. It is also the reward of the efforts made and risk taken by
the entrepreneur.

• Risk Bearing: “Willingness to assume the risk” is the essence of


entrepreneurship without which he/she cannot succeed. It occurs due to the
creation and implementation of new ideas. Such ideas are often uncertain,
and so the result may or may not be positive and instant.
Classification
• Social Entrepreneurs: Social entrepreneurs are individuals
with innovative solutions to society’s most pressing social
problems. They are persistent and ambitious, tackle major
social issues and offer new ideas for a wide-scale change.

• Solopreneurs: Solopreneurs are individuals who start up


their own enterprise alone, take care of the daily activities,
and are known to manage the tasks related to the entire
business themselves. This type is possible due to the advent
of Internet, email, etc. They have the ability to perform several
tasks with ease, they also have the option of outsourcing any
particular department in their business to freelancers.

• Serial Entrepreneur: A serial entrepreneur is an individual


that starts many new businesses in a short period of time. It is
a business person that tends to pursue new ideas constantly
and work on them simultaneously.
• Home-based Entrepreneur: They are
usually self-employed, either they are
working alone, or it's a group of few
employees working together. So it's a
close sort of entrepreneurship, they don't
require a separate office. They operate via
their home or maybe a home office.
For ex. Photographers, Graphic designer.
Entrepreneurial Process

The Entrepreneurship
Process can be expressed as
a set of procedures and
methodologies that are
followed by entrepreneurs for
establishing a new business
or venture. All the phases in
the entrepreneurship process
have certain meaning and
functionality; which one has to
trail and pursue for setting up
a venture.
Entrepreneurial Process Contd.
• Discovery: An entrepreneurial process begins with the idea
generation, wherein the entrepreneur identifies and evaluates the
business opportunities.

• Developing a Business Plan: This step involves developing a


successful business plan to exploit the identified opportunity.
Developing a business plan involves setting goals, standards,
methods, and techniques of achieving those set goals.
A well drafted business plan serves as a road map to the
entrepreneur to guide and monitor his/her activities towards the set
goals.

• Resourcing: In this step, the entrepreneur identifies the sources


from where the finance and the human resource can be arranged.
The entrepreneur also finds the investors for its new venture and the
personnel to carry out the business activities.
Entrepreneurial Process Contd.
• Managing the company: After resourcing the funds and
employees, an entrepreneur must decide the management
structure or the hierarchy that is required to solve the
operational problems when they arise.

• Harvesting: The final step in the entrepreneurial process


is harvesting wherein, an entrepreneur decides on the
future prospects of the business, i.e. its growth and
development. Here, the actual growth is compared against
the planned growth and then the decision regarding the
stability or the expansion of business operations is
undertaken accordingly, by an entrepreneur.
Differences between Entrepreneur &
Entrepreneurship
Entrepreneur Entrepreneurship

• Entrepreneur is a person. • Entrepreneurship is a


• Entrepreneur is an process.
organizer. • Entrepreneurship is an
• Entrepreneur is an organization.
innovator. • Entrepreneurship is an
innovation.
• Entrepreneur is a risk
bearer. • Entrepreneur is a risk
bearing.
• Entrepreneur is a motivator.
• Entrepreneur is a motivation.
• Entrepreneur is a creator.
• Entrepreneur is a creation.

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