The Nascent Entrepreneur

Dr.Mukul Mishra
SELF ASSESSMENT TEST
 Entrepreneurial Self-Assessment Survey
Please answer each of the following questions as honestly as
possible.
Strongly Agree Somewhat Agree Strongly Disagree
5 4 3 2 1

_____1. I am willing to work 50 hours or more per week regularly.

_____2. My family will support my going into business.
_____3. I am willing to accept both financial and career risks when necessary.
_____4. I don't need all the fringe benefits provided by conventional employment.
_____5. I would like to take full responsibility for the successes and failures of my
business.
_____6. I would experience more financial success by operating my own business.
_____7. I feel a great deal of pride when I complete a project successfully.
_____8. I have a high energy level that can be maintained over a long time.
_____9. I enjoy controlling my own work assignments & making all decisions
affecting my work.
____10. I believe that I am primarily responsible for my own successes and failures.
____11. I have a strong desire to achieve positive results even when it
requires a great deal of additional effort.
____12. I have a good understanding of how to manage a business.
____13. I can function in ambiguous situations.
____14. One or both of my parents were entrepreneurs.
____15. I believe that my abilities and skills are greater than those of most of
my coworkers.
____16. People trust me and consider me honest and reliable.
____17. I always try to complete every project I start, regardless of obstacles
and difficulties.
____18. I am willing to do something even when other people laugh or
belittle me for doing it.
____19. I can make decisions quickly.
____20. I have a good network of friends, professionals, and business
acquaintances

TOTAL:_____
Total the numbers you placed before the statements and enter the total in
the space provided
Score Assessment
• 80 - 100 You have outstanding ability to be an
entrepreneur.
• 60 - 79 You have satisfactory ability to be an
entrepreneur.
• 40 - 59 Self-employment may not be an
appropriate career for you.
• 0 - 39 You should probably avoid
entrepreneurship
ENTREPRENEURSHIP
DEVELOPMENT
 Entrepreneur
• entrepreneur - French word ‘enterprendre’ -
“to undertake”

• Entrepreneur is an individual who takes risk

and starts something new.

• fulfill the needs of society/employment/rapid

economic development of their country
 Definition
• Richard Cantillon : “An entrepreneur is 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.”

• Joseph Schumpeter : “Entrepreneur is an individual who

carries out new combines of means of production by
which there occurs disequilibrium.”

• Peter Drucker : “Entrepreneur is one who always searches

for change, responds to it and exploits it as an
opportunity. Innovation is a specific instrument of
entrepreneurship. It is an act that endows resources with a
new capacity to create wealth; innovation indeed creates
a resource.”
• “Entrepreneurs are individuals who collect
means of production, organize an enterprise,
innovate, create new things and bear the risk
in the expectation of the reward in the form of
profit.”
Characteristics of an Entrepreneur
(1) An Individual or Group Individuals
(2) Need for achievement
(3) Independence or autonomy
(4) Risk Bearer
(5) Innovation
(6) Goal Oriented
(7)Decision-making
(8)Self-confidence
(9)Initiative
(10)Motivator
(11)Human Relations Capability
(12)Economic Planning
 Nature or characterstics of
Entrepreneurship
1. Risk-bearing capacity
2. “Entrepreneurship Trait
3. Creative Activity
4. Result of Changes
5. Creation of a Resource
6. Essential in all Businesses and Economies
7. Essential in Every Activity
8. Low Risk
9. Ability to Innovate
10. Knowledge-based
11. Result-Oriented Behaviour
12. Environment-Oriented Activity
13. Process of Identify Transformation
14. Business-Oriented Tendency
15. Professional Activity
16. management is the basis of Entrepreneurship
17. Based on Principles, not on Intuition
18. Entrepreneurial Skills
MOTIVATION TO START A BUSINESS
 Need for Motivation
Motivation is an important factor for an entrepreneur:
• Tough competition: An entrepreneur needs to face tough
competition, in order to sustain and make a mark in this
global market.

• Unfavorable environment: Nobody knows what the future

holds. One has to take care of the current economy and
should be prepared for the worst situations of
deteriorating economic conditions.

• To create public demand: Market runs by the people and

for the people. To run a business profitably, it is required to
create a consumer demand for your product or service. in
the market.
• To enhance creativity: Market always wants
something new and different. If every firm offers the
same product without any variation then there is no
point of preferring one brand in particular.

• To increase productivity: It is very important to take

care of the quality of the product as well as the
profit.

Thus motivation plays a unique role in establishing a

company by frequently boosting the entrepreneur to
do effective things efficiently.
Motivation to start a New Venture

• You will be your own boss and boss to other

people and make decisions that are crucial to the
business success or failure.

• You will make money for yourself rather than for

someone else.

• You may participate in every aspect of running a

business and learn and gain experience in a
variety of disciplines.
• You will have the chance to work directly with
your customers.

• You will have the personal satisfaction of

creating and running a successful business.

• You will be able to work in a field of area that

you really enjoy.

• You will have the chance to build retirement

value.
 Entrepreneurial Personality
Nine common types of entrepreneur
personalities are described below :

1. The Improver
• If you operate your business predominately in
the improver mode, you are focused on using
your company as a means to improve the world.
Improvers have an unwavering ability to run their
business with high integrity and ethics.
2. The Advisor
• This business personality type will provide an
extremely high level of assistance and advice to
customers. The advisor's motto is: the customer
is right and we must do everything to please
them. Companies built by advisors become
customer focused.

3. The Superstar
• Here the business is centered around the
charisma and high energy of the Superstar
CEO.This personality often will cause you to build
your business around your own personal brand.
4. The Artist
• This business personality is the reserved but a highly
creative type, and is often found in businesses
demanding creativity such as web design and
creative agencies.As an artist type, you’ll tend to
build your business around your unique talents and
creativities.

5. The Visionary
• A business built by a Visionary will often be based
on the future vision and thoughts of the founder.
You will have a high degree of curiosity for
understanding the world around you.
6. The Analyst
• If you run a business as an Analyst, your
company is focused on fixing problems in a
systematic way. Often the basis for science,
engineering or computer firms, Analyst
companies excel at problem solving.

7. The Fireball
• A business owned and operated by a Fireball is
full of life, energy and optimism. Your company
is life-energizing and makes customers feel that
the company can get it done in a fun playful
manner.
8. The Hero
• You have an incredible will and ability to lead the
world and your business through any challenge.
You are the essence of entrepreneurship and can
assemble great companies.

9. The Healer
• If you are a Healer, you provide nurturing and
harmony in your business. You have an uncanny
ability to survive and persist with an inner calm.
FUNCTIONS OF AN ENTREPRENEUR
Main functions of the entrepreneurs are :
1)Idea generation
• vision, insight, observation, experience, education,
training and exposure of the entrepreneur.

• implies product selection and project identification.

• Ideas can be generated through environmental

scanning and market survey.

• entrepreneurs - generate as many ideas as he can -

selecting the best business opportunities -
commercially-viable business venture.
2)Determination of objectives

• determine and lay down the objectives of the

business –
(i) The nature of business
(ii) The type of business

• Enterprise -manufacturing concern/service -

oriented unit/trading business
3)Raising of funds:
• most important function.

• All activities of a business depend upon the

finance and its proper management.

• Raise funds internally as well as externally.

• awareness of the different sources of funds and

the formalities to raise funds.

• Knowledge of different government schemes

such as PMRY, SGSY, REGP, etc. -seed capital, fixed
and working capital for business.
4)Procurement of raw materials:
• Important function-procure raw materials.

• Identify the cheap and regular sources of

supply of raw materials-reduce the cost of
production and face the competition.
5) Procurement of machinery:
• Procure the machineries and equipments for
establishment of the venture.
• Specify the following details:
– The details of technology.
– Installed capacity of the machines.
– Names of the manufacturers and suppliers.
– Whether the machines are indigenously made or
foreign made.
– After-sales service facilities.
– Warranty period of the machineries.
6)Market research:
• Market research & and product analysis.
• Market research -systematic collection of data
regarding the product which the entrepreneur
wants to manufacture.
• Entrepreneur has to undertake market
research persistently in order to know the
details of the intending product,
– i.e. the demand for the product,
– the supply of the product,
– the price of the product,
– the size of the customers segment, etc. while
starting an enterprise.
7) Determination of form of enterprise:
• Form of enterprise is also important-nature of the
product, volume of investment, nature of
activities, types of product, quality of product,
quality of human resources, etc.

• The chief forms of ownership organizations are

sole proprietorship, partnership, Joint Stock
Company and cooperative society.

• Determination of ownership right is essential on

the part of the entrepreneur to acquire legal title
to assets.
8)Recruitment of manpower:
• Entrepreneur has to perform the following
activities while undertaking this function:

– Estimating manpower need of the organization.

– Laying down of selection procedure.
– Devising scheme of compensation.
– Laying down the rules of training and
development.
9)Implementation of the project:
• Implementation schedule -action plan of the
project-Time-bound manner.

• From the conception stage-commissioning stage are

to be accomplished -implementation schedule to
avoid cost and time overrun and competition.

• All these functions of the entrepreneur canbe put

into the following categories:
– Innovation.
– Risk bearing.
– Organization.
– Management.