ECOLE SUPERIEUR DE MANAGEMENT (ESM)

ESSAI IN ENGLISH

LICENCE 3 IN PROJECT MANAGEMENT

ENTREPRENEURSHIP AND
PROJECT MANAGEMENT

Product by : Florence M. CHABI

Academic year: 2022 - 2023

 CONTENS

S.NO. TOPIC
1 INTRODUCTION TO ENTREPRENEURSHIP
1.1 Meaning of Entrepreneur, Enterprise, Entrepreneurship
1.2 Characteristics, functions, importance, Entrepreneur Vs Manager
Types of Entrepreneurs, Entrepreneurial mindset ,Key attributes of an
1.3 entrepreneur,
Readiness of the entrepreneur: Right age, right time and right conditions,
Myths
1.4
and Realities of entrepreneurship
1.5 Entrepreneurship and Intrapreneurship: Similarities and variance
1.6 Developing Corporate Entrepreneurship.
 ENTREPRENEURSHIP AND PROJECT MANAGEMENT

1 Introduction
I- CONCEPT:

 THE ENTERPRISE is some business structure/object that usually carries out

some commercial activity, creates new job positions, gains some profits.

 ENTREPRENEURSHIP is the art of starting a business, basically a startup

company offering creative product, process or service. We can say that it is an
activity full of creativity. An entrepreneur perceives everything as a chance and displays
bias in taking decision to exploit the chance. An enterprise is created by an entrepreneur.
The process of creation is called “entrepreneurship

 AN ENTREPRENEUR The word “entrepreneur” is derived from the French verb

enterprendre, which means ‘to undertake’. This refers to those who “undertake” the risk of
new enterprises. is a creator or a designer who designs new ideas and business processes
according to the market requirements and his/her own p assion. To be a successful
entrepreneur, it is very important to have managerial skill and strong team building
abilities.
Leadership attributes are a sign of successful entrepreneurs.

ENTREPRENEURSHIP ENTREPRENURE
ENTERPRISE
(OBJECT) (PROCESS OF (PERSON)
ACTION)
An entrepreneur is a person who is action-oriented and highly motivated to take a risk and to
achieve such a goal dot brings about a change in the process of generating goods or services
or re-initiates progress in the advent of creating new organizations.

II- CHARACTERISTICS FOR THE ENTREPRENEUR :

1. Entrepreneur is an agent

An entrepreneur is perceived as an economic agent who assembles materials for producing

goods at a cost that ensures profits and re-accumulation of capital.

He is also understood as a change agent who brings about changes in the structure and
formation of the organization, market and the arena of goods and services.

2. Entrepreneur is a risk-taker

A risk-taking ability is essential for an entrepreneur. Without the will to explore the
unknown, one cannot discover something unique. And this uniqueness might make all the
difference. Entrepreneurs have a differentiated approach towards risks. Good entrepreneurs are
always ready to invest their time and money. But, they always have a backup for every risk they
take.

3. Entrepreneur is a profit
maker

An entrepreneur is an individual who establishes and manages the business for the principle
purpose of profit and growth.

4. Entrepreneur is an achievement
motivator

David C. McClelland has initiated this concept of the entrepreneur by calling him “as per
sun with a strong desire for achievement.” Later on, Meredith and others have expressed the
same concept while they termed “entrepreneurs are action-oriented, highly’ motivated
individuals.”Therefore, entrepreneurs have to have a deep-rooted need for achieving their goals.
5. Passion:

Your work should be your passion. So when you work, you enjoy what you’re doing and stay
highly motivated. Passion acts as a driving force, with which, you are motivated to strive for
better.

It also allows you the ability to put in those extra hours in the office which ca n or may make
a difference. At the beginning of every entrepreneurial venture or any venture, there are
hurdles but your passion ensures that you are able to overcome these roadblocks and forge
ahead towards your goal.

6. Creativity:

Creativity gives birth to something new. For without creativity, there is no innovation possible.
Entrepreneurs usually have the knack to pin down a lot of ideas and act on them. Not
necessarily every idea might be a hit. But the experience obtained
is gold. Creativity helps in coming up with new solutions for the problems at hand and
allows one to think of solutions that are out of the box. It also gives an entrepreneur the ability
to devise new products for similar markets to the ones he’s currently playing in.

7. Professionalism:

Professionalism is a quality which all good entrepreneurs must possess. An entrepreneurs

mannerisms and behavior with their employees and clientele goes a long way in developing the
culture of the organization.

Along with professionalism comes reliability and discipline. Self-discipline enables an

entrepreneur to achieve their targets, be organized and set an example for
everyone.

Reliability results in trust and for most ventures, trust in the entrepreneur is what keeps
the people in the organization motivated and willing to put in their best. Professionalism is
one of the most important characteristics of an entrepreneur.
8. Knowledge:

Knowledge is the key to success. An entrepreneur should possess complete knowledge of his
niche or industry. For only with knowledge can a difficulty be solved or a crisis is
tackled.

It enables him to keep track of the developments and the constantly changing requirements of
the market that he is in. May it is a new trend in the market or advancement in technology or
even a new advertiser’s entry, an entrepreneur should keep himself abreast of it. Knowledge is
the guiding force when it comes leaving the competition behind. New bits and pieces of
information may just prove as useful as a newly devised strategy.

He should know what his strengths & weaknesses are so that they can be worked on and
can result in a healthier organization.

A good entrepreneur will always try to increase his knowledge, which is why he is always a
learner. The better an entrepreneur knows his playground, the easier he can play in it.

9. Open-mindedness towards learning, people, and even

failure:

An entrepreneur must be accepting. The true realization of which scenario or event can be
a useful opportunity is necessary. To recognize such openings, an open-minded attitude
is required.

An entrepreneur should be determined. He should face his losses with a positive attitude and his
wins, humbly. Any good businessman will know not to frown on a defeat. Try till you succeed
is the right mentality. Failure is a step or a way which didn’t work according to the plan. A
good entrepreneur takes the experience of this setback and works even hard with the next goal
in line.

10. Entrepreneur is a reward receiver

An entrepreneur is a person who creates something new of value by devoting time and
efforts and in turn receives monetary and personal rewards. Max Weber, Hartman, Hisrich and
Peters have recognized this distinct phenomenon of entrepreneurs.
11. Customer is everything:

A good entrepreneur will always know this; a business is all about the customer. How you grab
a
customer’s attention is the first step. This can be done through
various

mediums such as marketing and advertising. It is also important that you know the needs of
your customers. The product or service which is being created by your organization needs to
cater to the needs of your consumers. Personalising a business for consumers will also boost the
sales.

III- FUNCTIONS OF
ENTREPRENEURSHIP:

1. Economic and dynamic activity:

Economic activity because it involves the creation and operation of an enterprise with a view to
creating value or wealth by ensuring optimum utilisation of scarce resources. Since this value
creation activity is performed continuously in the midst of uncertain business
environment, therefore, entrepreneurship is regarded as a dynamic force.
2. Related to innovation:
Entrepreneurship involves a continuous search for new ideas. Entrepreneurship compels an
individual to continuously evaluate the existing modes of business operations so that
more efficient and effective systems can be evolved and adopted. In other words,
entrepreneurship is a continuous effort for synergy (optimization of performance) in
organizations.

3. Profit potential:
“Profit potential is the likely level of return or compensation to the entrepreneur for taking on
the risk of developing an idea into an actual business venture.” Without profit potential, the
efforts of entrepreneurs would remain only an abstract and a theoretical leisure activit y.

4. Risk bearing:
The essence of entrepreneurship is the ‘willingness to assume risk’ arising out of the creation
and implementation of new ideas. New ideas are always tentative and their results may
not be instantaneous and positive.
 5. Goal oriented activity:
Entrepreneur has to develop the business objectives in clear terms. So that he can carry on the
business in accordance with the objectives.

6. Value creation:
Entrepreneurship is a process of creating value for customers by exploiting untapped
opportunities. Through entrepreneurship, new products, services, technologies, resources,
markets are created that contribute value to community.
7. Creative and purposeful activity:
Entrepreneurship is a creative response to the changing environment. Introduction of something
new and creative is the main purpose of entrepreneurship.
8. Flexibility:
It means ability to move quickly in response to changing
market.

IV- IMPORTANCE OF
ENTREPRENEURSHIP
1. Development of managerial capabilities:
The biggest significance of entrepreneurship lies in the fact that it helps in identifying
and developing managerial capabilities of entrepreneurs. An entrepreneur studies a
problem, identifies its alternatives, compares the alternatives in terms of cost and benefits
implications, and finally chooses the best alternative.

This exercise helps in sharpening the decision making skills of an entrepreneur. Besides, these
managerial capabilities are used by entrepreneurs in creating new technologies and products in
place of older technologies and products resulting in higher performance.
2. Creation of organisations:
Entrepreneurship results into creation of organisations when entrepreneurs assemble and
coordinate physical, human and financial resources and direct them towards achievement
of objectives through managerial skills.

3. Improving standards of living:

By creating productive organisations, entrepreneurship helps in making a wide variety of goods
and services available to the society which results into higher standards of living for the people.

Possession of luxury cars, computers, mobile phones, rapid growth of shopping malls, etc. are
pointers to the rising living standards of people, and all this is due to the efforts of
entrepreneurs.

4. Means of economic development:

Entrepreneurship involves creation and use of innovative ideas, maximisation of output from
given resources, development of managerial skills, etc., and all these factors are so essential for
the economic development of a country.

V- ENTREPRENEUR VS MANAGER
V- KEY DIFFERENCES BETWEEN ENTREPRENEUR AND MANAGER

The difference between entrepreneur and manager can be drawn clearly on the following
grounds:

1. A person, who creates an enterprise, by taking a financial risk in order to get profit, is
called an entrepreneur. An individual who takes the responsibility of controlling and
administering the organisation is known as a manager.

2. An entrepreneur focuses on business startup whereas the main focus of a manager is

to manage ongoing operations.

3. Achievements work as a motivation for entrepreneurs. On the other hand, the primary
motivation is the power.

4. The manager’s approach to the task is formal which is just opposite of an entrepreneur.

5. An entrepreneur is the owner of the enterprise while a manager is just an employee of

the company.

6. A manager gets salary as remuneration for the work performed by him. Conversely, profit
is the reward for the entrepreneur.

7. An entrepreneur’s decisions are driven by inductive logic, courage, and determination; that
is why the decision making is intuitive. On the contrary, the decision making of a manager
is calculative, as they are driven by deductive logic, the collection of information and
advice.

8. The major driving force of an entrepreneur is creativity and innovation. As against this,
a manager maintains the existing state of affairs.

9. While entrepreneur is a risk taker, the manager is risk averse.

VI- ENTREPRENEURS ARE CLASSIFIED INTO DIFFERENT TYPES BASED ON
DIFFERENT CLASSIFICATIONS AS MENTIONED BELOW: (TYPES)

 BASED ON THE TYPE OF BUSINESS:

1. Trading Entrepreneur:
As the name itself suggests, the trading entrepreneur undertake the trading activities.
They procure the finished products from the manufacturers and sell these to the customers
directly or through a retailer. These serve as the middlemen as wholesalers, dealers, and
retailers between the manufacturers and customers.

2. Manufacturing
Entrepreneur:
The manufacturing entrepreneurs manufacture products. They identify the needs of the
customers and, then, explore the resources and technology to be used to manufacture
the products to satisfy the customers’ needs. In other words, the manufacturing
entrepreneurs convert raw materials into finished products.

3. Agricultural
Entrepreneur:
The entrepreneurs who undertake agricultural pursuits are called agricultural entrepreneurs.
They cover a wide spectrum of agricultural activities like cultivation, marketing of
agricultural produce, irrigation, mechanization, and technology.

 BASED ON THE USE OF TECHNOLOGY:

1. Technical Entrepreneur:
The entrepreneurs who establish and run science and technology-based industries are
called
‘technical entrepreneurs.’ Speaking alternatively, these are the entrepreneurs who make use of
science and technology in their enterprises. Expectedly, they use new and innovative methods
of production in their enterprises.

2. Non-Technical Entrepreneur:
Based on the use of technology, the entrepreneurs who are not technical entrepreneurs are non-
technical entrepreneurs. The forte of their enterprises is not science and technology. They
are
concerned with the use of alternative and imitative methods of marketing and
distribution strategies to make their business survive and thrive in the competitive market.

 BASED ON OWNERSHIP:
1. Private
Entrepreneur:
A private entrepreneur is one who as an individual sets up a business enterprise. He / she it’s
the
sole owner of the enterprise and bears the entire risk involved in
it.

2. State Entrepreneur:
When the trading or industrial venture is undertaken by the State or the Government, it is
called
‘state entrepreneur.’

3. Joint Entrepreneurs:
When a private entrepreneur and the Government jointly run a business enterprise, it is
called
‘joint entrepreneurs.’

 BASED ON GENDER:
1. Men Entrepreneurs:
When business enterprises are owned, managed, and controlled by men, these are called
‘men entrepreneurs.’

2. Women Entrepreneurs:
Women entrepreneurs are defined as the enterprises owned and controlled by a woman
or women having a minimum financial interest of 51 per cent of the capital and giving at
least 51 per cent of employment generated in the enterprises to women.

 BASED ON THE SIZE OF ENTERPRISE:

1. Small-Scale Entrepreneur:
An entrepreneur who has made investment in plant and machinery up to Rs 1.00 crore is
called
‘small-scale entrepreneur.’
2. Medium-Scale
Entrepreneur:
The entrepreneur who has made investment in plant and machinery above Rs.1crore but below
5 crore is called medium scale enterprise.

3. Large scale enterprise:

The entrepreneur who has made investment in plant and machinery more than 5 crore is
known as large scale enterprise.

VII- ENTREPRENEURIAL MINDSET: 5 CHARACTERISTICS

OF ENTREPRENEURSHIP

1. Decisiveness

To succeed as an entrepreneur, you must gain the ability to look at a problem or situation,
digest all available data (at that point in time), and make a confident decision to move forward.
Your ability as a decision-maker will make or break your future successes. In fact, at the
opposite end, indecision is one of the greatest causes of business failure.

When you can’t decide what to do, you delay taking action. In other words, you do
nothing. Think about how many dreams (and businesses) failing to take action has killed.

Like many other skills an entrepreneur needs, being decisive is a skill that can (and should) be
practiced and strengthened in your day to day life — starting with the tiniest decisions.

The entrepreneurial mindset in action: Sandwich or

salad?

For example, the next time you are out for lunch at a restaurant, scan the menu once and
decide what to order. And do it confidently. This can seem trivial or unnecessary, but it
absolutely isn’t. Being decisive takes practice to master and it begins with small decisions in
the business of daily life. From here you can build on your decisiveness and begin to use it
in bigger and bigger ways.
2. Confidence

There are many skills you will need to learn to accomplish everything you want in life. But
how do you act confidently when you don’t know what you are doing? You learn to act
with confidence, the second characteristic of the entrepreneurial mindset. And one the of the
most important qualities of an entrepreneur. It is essential that you get used to the
uncomfortable feeling of knowing that you don't know what you’re doing. Whether it's
gett ing on stage to speak, launching your product, or learning how to start a blog and
publishing your ideas to the world, we tend to see others doing it and incorrectly assume
they've always been good at it. They weren't born knowing how to speak confidently, launch
successful products, or write excellent books. They also weren't born knowing how to become
entrepreneurs. They learned and we can, too. The difference between appearing good or bad at
something is often a matter of acting confidently.

3. Accountability

The entrepreneurial mindset comes from taking responsibility for your actions and

outcomes. You need to internalize and accept that:

 Everything that happens at work – YOU are responsible for.

 Everything that happens to your business – YOU are responsible for.
 Whether you succeed or fail, it is YOUR responsibility.

From this moment forward, you must accept responsibility for everything in your life and hold
yourself accountable to it. Sorry to tell you, but nobody cares how little time, money,
or external support you have to accomplish your goals. Your circumstances may not be your
fault, but they are your responsibility. All that matters is what you are doing RIGHT NOW to
find your success. There are no more excuses. Accountability is required of entrepreneurs
as well as successful employees. Stop passing the buck and blaming others. Hold yourself
accountable – even when you aren’t to blame – and take action to fix the problem. The
entrepreneurial mindset requires you to take complete control and hold yourself accountable
to your outcomes – both
good and bad. As James Altucher said on the podcast, life is a sentence of failures
punctuated with brief successes.

4. Resilience

As an entrepreneur, you will need to learn to deal with making mistakes and failing. They are
inevitable and a part of your growth. If every misstep plummets you into self-doubt, you have
to change the way you look at being wrong. This mindset shift takes resilience and is
foundational to the entrepreneurial mindset. Success rarely happens in a straight line. Taking
wrong turns and making mistakes is something that happens to everyone.

“The only people who don’t make mistakes are the ones who don’t do anything.”
Resilience isn’t only helpful when dealing with catastrophic mistakes. It’s a way to handle the
small, simple decisions you’ve made that didn’t turn out right.

Resilience enables you to think, act, and move iteratively — making small, incremental
corrections along the way.

The entrepreneurial mindset in action: The wind-blown

pilot

For example, imagine you are the pilot of a plane taking off from Miami and heading north
to Boston. With the Atlantic Ocean on the right, there’s bound to be a strong wind pushing
it westward (or to the left). As the pilot, you set a trajectory north to Boston upon departure.
Yet with the wind blowing, you are beginning to get slightly off course.

Do you keep plowing ahead as planned and end up in Chicago instead? Or do you continually
and incrementally correct your course against the wind and turbulence? The answer
is obvious. You need to constantly correct against external forces, or you will never reach
your destination. You need to be resilient to change and keep pushing ahead no matter what
may try and knock you off course. There is no straight line to where you are going.
5. Humility

Humility is freedom from pride or arrogance, and it ties all of the characteristics of
entrepreneurship. From decisiveness to confidence, humility will keep you focused and
centered. From accountability to resilience, you will continue to move forward through failure,
mistakes, and upsets. This is accomplished with humility.