Unit one

Entrepreneurship

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. An enterprise is created by an
entrepreneur.
The process of creation of enterprise by the entrepreneur is called
“entrepreneurship”.

Entrepreneurship is a process of actions of an entrepreneur who is a person

always in search of something new and exploits such ideas into gainful
opportunities by accepting the risk and uncertainty with the enterprise.
Kuratko and Hodgetts – “ Entrepreneurship is the process of
vision, change and creation. It requires an application of energy
and passion toward the creation and implementation of new
ideas and creative solutions.”

Peter Drucker – “ Entrepreneurship is gathering and using

resource to produce results. It is allocating resources to
opportunities rather than to problems.”

Hisrich and Peter - “ Entrepreneurship is the process of

creating something different with the value by devoting the
necessary time and effort, assuming the accompanying risks
and receiving the resulting rewards of monetary, personal
satisfaction and independence.”
Hence, Entrepreneurship is the process of exploiting
opportunities by creating new venture through resource
pulling, risk taking, innovating and managing rewards.
The term entrepreneurship includes four factors and they are:
1. New venture
2. Innovations
3. Risks
4. Profit or loss (rewards)
Features of entrepreneurship
1. Economic and dynamic activity
2. Based on innovation
3. Creation of new venture
4. Profit potential
5. Risk assumption
6. Involvement and achievement
7. Expectation of reward
8. Best use of opportunity
9. Create value
1. Economic and dynamic activity:
Entrepreneurship is an economic activity because it involves the
creation and operation of an enterprise with a view to creating
value or wealth by ensuring optimum utilization 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
3. Creation of new venture
Entrepreneurship is concerned with creation of new venture
with new ideas. It produces goods and services that can
satisfy the unmet needs and wants of the people. It involves
innovation of new things by continuous research, dynamic
environment and several opportunities.
4. 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
activity.
5. 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.
6. Involvement and achievement
Desire for involvement and achievement from inner part of heart and
mind of entrepreneurs is necessary for entrepreneurship development.
He/she must have willingness to involve in business as per the ability,
knowledge and skills.
7. Expectation of reward
The reward involves monetary and non- monetary. Monetary rewards
include profit, wealth maximization which is essential for survival,
expansion and diversification. Non –monetary reward include
independence, achievement, status, prestige, standard and value in
8. Best use of opportunity
The external factors( politics, economic, social and
technological) are dynamic and brings several opportunities
and threats to the entrepreneur. So, entrepreneur must identify
the opportunities in the environment and exploit them as per
the capacity to earn extreme profit.
9. Create value
It is another important feature which includes to create value
of the brand and product in the market. The entrepreneur
establishes the new venture through creativity and innovation.
S/he utilizes his/her ability to develop, organize and manage
the business along with risks. Entrepreneur introduce new
concept, ideas, knowledge in terms of products and services.
All these create value of an entrepreneur.
 Entrepreneur
The entrepreneur is derived from the French word
‘entreprendre’ which means ‘to undertake’ or a person who
undertake risks of a business with new ideas. An
entrepreneur is an person who initiate a new business
organization, organizes, operates and bears a risks of
the business.
An entrepreneur is one who perceives an idea and then
brings together human resources, material and arranges
required capital , essential for the business. He bears all
risks that may arise during business.
According to David Holt, “ an entrepreneur is a person who
starts a new venture, taking initiative and risk associated with
it, and does so by creating something new to provide value to
customers.”
According to Peter F Drucker, “ The entrepreneur always
searches for change, responds to it, and exploits it as an
opportunity.”
According to Encyclopedia Britannica, “entrepreneur is
defined as an individual who bears a risk of operating a
business in the face of uncertainty about the future condition.”
Hence, the entrepreneur is the person who bears the risk, unites
various factors of production and carries out various
innovations. An entrepreneur is one who sees opportunity,
figures out a way to acquire all necessary resources and acts to
turn the opportunity into a reward.
The knowledge /skills/qualities/competencies of an
Entrepreneur
1. Curiosity
2. Time management
3. Strategic thinking
4. Efficiency
5. Resilience
6. Communication
7. Networking
8. Finance
9. Branding
10. Sales
1. curiosity: An entrepreneur should have the task to discover
new problems, reveal potential niche opportunities, re- factor
the original process and innovate new ideas.
2. Time management: The right project management and
time allocation methodology is essential to perform the jobs
like planning, defining milestones, execution and iteration
etc..
3. Strategic thinking: The entrepreneur should be able in
figuring out creative solution and identifying the low hanging
fruits. He should be able to define the scope for an MVP and
testing concept with in limited tome and with low budget.
4. Efficiency: An entrepreneur need high performance when it
comes to solving a problem. Applying 80/20rules and other
techniques for yielding higher results in less time.
5. Resilience: The entrepreneur should have skill to handle
rejections, stress, burnouts, lack of focus, slow progress,
determination and eagerness to fight the same dragon.
6. Communication: Crisp and concise communication is
paramount for each and every interaction with client, partners,
peers, prospects etc
7. Networking: the growing network facilitates business
opportunities, partnership deals, finding subcontractors or future
employees. It expands the horizons of public relation and
conveying the right message on all fronts.
8. Finance : It is another solid quality for entrepreneur to handle
resources properly and carefully assessing investments compared
to return on investment.
9. Branding: Building a consistent personal and business brand
tailored to the right audience. Igniting brand awareness in new
verticals.
Functions of an entrepreneur
There are various function to be undertaken by the entrepreneur.
Those functions can be categories into two parts and they are:
1. Entrepreneurial functions
2. Managerial functions
3. Promotional functions
4. Commercial functions

5. Entrepreneurial functions
Under this function, the entrepreneur has to perform the
following functions:
a) Risk bearing
b) Organizing function
c) Innovation function

d) Risk bearing functions:

The entrepreneur has to bear insurable risks and non-insurable
risks. Insurable risks are those which can be minimized and
controlled by the entrepreneur through pre-cautions and
purchasing insurance policies. The insurable risks are health
insurance, accidental insurances, fire insurances, theft insurance
etc.. Non-insurable are those which can not be controlled and
minimized by the entrepreneur. They are natural calamities like
earthquake, flood, pandemic etc.
b) Organizing function:
An entrepreneur has to organize all the entrepreneurial activities
properly and systematically. The division of work and development
of hierarchy are the major tools for organizing activities in the
Hiring right person at the right job at right time and assigning
duties, responsibilities and authorities to the qualified, skillful
and experienced person is the major function of the
entrepreneur.
c) Innovation function
Innovation of new idea, concept and knowledge is an
important function of entrepreneur. Innovation refers to the
generation of new ideas for starting a new business for earning
profit and wealth.
1. Managerial functions
Management is the art and science of getting things done through other
people. It is the process of planning, organizing, staffing, directing and
controlling. The managerial functions of an entrepreneur are as follows:
a) Planning
b) Organizing
c) Staffing
d) Directing
e) Controlling

f) Planning
Planning is the prediction and predetermination of future course of
action for the achievement of desired goals. It involves deciding what,
where, how, when, who and how things are to be done. It describes
the possible obstacles, problems and risk those may arise in future
and the suggest the solution as well. It is the roadmap for the future.
b) Organizing
An entrepreneur has to organize all resources like finance,
human resource, capital, technologies etc systematically. It
is very important to implement the plans for organizing
resources.
c) Staffing
Staffing is the function of appointing the right person at right
job and at the right time. It involves acquisition,
development, maintenance and motivation of the human
resources. The entrepreneur has to well define reasons
behind needing an individuals who possess specific skills,
knowledge and abilities directly linked to specific job.
d) Directing
It deals directly with influencing, guiding, supervising,
motivating the employees in order to achieve desired goals.
It involves motivation, leading and communication.
e) Controlling
Controlling function involve establishment of standard
performance, measurement of actual performance,
comparison of actual performance with standard and
finding out deviation if any for corrective action.
2. Promotional functions
These functions are related in creating and developing basic
infrastructures required for an organization. They include:
a) Identification and selection of business idea
b) Preparation of business plan
c) Arrangements of capital

d) Identification and selection of business idea

Ideas are developed through previous experience, knowledge,
education, facing problems, interaction with experts etc..
Ideas should be creative and that can be turned into
innovation for grabbing opportunities. The entrepreneur
should develop a implementable and creative ideas.
b) Preparation of business plan
A business is the document in which all the course of actions
and the functions to be undertaken by the company are
described in detail. It involves the feasibility of prospective
business, sources required, product and services to be
produced, target market, risks and uncertainties under lied
and provide suggestion for the uncertainties.
c) Arrangement of capital
There are resources like labor, capital, technology, materials
etc.. All the resources required should be identified and
acquired them on time. So that all the functions can be
performed smoothly. The entrepreneurial has to develop
the capital structure for his entreprise.
4. Commercial functions
It is related to day-to-day functions of an entrepreneur. it
involves the following functions:
a) Manufacturing
b) Marketing
c) Accounting

d) Manufacturing function
This function involves the all activities necessary for production
of goods and services. The production functions include
decision of selection of factory site, plant, layout, setting of
production process, product design and research and
development, product planning and control, repairs and
b) Marketing
The commercial functions generally refers to marketing
functions. All the products and services are meant for marketing.
The marketing function begins with identifying the needs and
wants of the customers and ends with their feedback. Marketing
functions involves 7ps(product, price, packaging, promotion,
distribution, people and process) functions and others.
c) Accounting functions
Maintaining proper books of account is an important function of
an entrepreneur. accounting is the are of keeping recording,
classifying and summarizing all the monetary transactions. It
shows financial positions, profit and losses, income sources etc…
an entrepreneur has keep account so that he can understand past
and current business financial position and predict for future.
 Types of entrepreneurs
The entrepreneurs can be categories on the following basis:
1. Based on the types of business
2. Based on ownership
3. Based on size of enterprise
4. Based on innovation
5. Based on behavior
6. Based on focus
1. Based on types of business
a) Trading entrepreneurs
b) Manufacturing entrepreneurs
c) Service entrepreneurs

d) Trading entrepreneurs
Trading entrepreneurs are those who purchase and sell the
usable products and services to the final consumers. They do
not manufacture but purchase the goods from manufacturer
and sell them to final consumers. The trading manufacturer
can be dealer, whole seller, retailer etc..
b) Manufacturing entrepreneurs
Those entrepreneurs who produces consumable and valid
products and services to the customers are manufacturing
entrepreneurs. They identify the needs and wants of the people
and produces the products to fulfill those needs. The
innovations is very essential to manufacturing entrepreneurs
for success.
c) Service entrepreneurs
The entrepreneurs who involve in service business are known
as service entrepreneurs. They provide different types of
services to the society in return of money. The examples of
service entrepreneurs are: person involves in banking,
insurance, hospitals, educational institutions etc
2. Based on ownership
a) Private entrepreneurs
b) State entrepreneurs
c) Joint entrepreneurs

d) Private entrepreneurs
When an individual and group of individuals establishes a business
entity through investment of own capital, it is known as private
entrepreneurs. They follow the rules and regulations of government
but government do not interfere in the business matter. They establish
business organization for earning profit.
b) State entrepreneur
When any business enterprise is established by the government with
full investment without participation general public, it is known as
state entrepreneur. Government participate in public utility business
such as electricity, fuel supply, supply of essential food items etc..
c) Joint entrepreneurs
When any business enterprise is established through joint investment
of private and government, it is known as joint entrepreneurs. Both
government authorities and individual entrepreneurs involve in
business activities through joint management.
3. Based on size of entrepreneurs
a) Small-scale entrepreneurs
b) Medium scale entrepreneurs
c) Large scale entrepreneurs

d) Small-scale entrepreneurs
The individuals who establishes business entity by investing up to Rs.
50 million on fixed assets are known as small scale entrepreneurs. They
have limited investment and limited business areas.
b) Medium scale entrepreneur
The individuals who establish business entity by investing Rs.
50 million to Rs. 150 million on fixed assets are known as
medium scale entrepreneurs. They have more investment
amount and large business area and can introduce modern
technologies.
c) Large-scale entrepreneur
The individual who establish business entity by investing more
than Rs. 150 million on fixed assets are known as large scale
entrepreneurs. They have huge investments and large areas can
cover by adopting modern technologies.
4. Based on Innovation
The entrepreneurs can be various types on the basis of
innovation and they can be:
 Innovating
 Imitative
 Fabian
 Drone
 Forced
 Empire builder
i. Innovating entrepreneur
They introduce new products, employ new production methods,
open new markets and exploit new sources of materials. They
actually become entrepreneur after their own creation and
innovation.
ii. Imitative entrepreneur
They imitate the successful innovations made by innovating
entrepreneurs. They do not make the innovations themselves.
They simply adopt and imitate the techniques and technology
innovated by others. It happens in developing countries.
iii. Fabian entrepreneur
They become entrepreneur by inheritance and they follow footsteps
of predecessor. They imitate innovation only when their
survival is endangered. Their operation are determined by
custom, religion, tradition and past practices.
iv. Drone entrepreneur
They become entrepreneur by convention. They refuse to
innovate. They struggle to survive rather than to grow. They
do not make any changes in techniques even if their profits
declines. They stick to conventional ideas and products.
v. Forced entrepreneur
They are forced to become entrepreneurs to fashion their own
economic livelihood. They start a new venture to create
self-employment based on innovation.
vi. Empire Builder Entrepreneur
Such entrepreneur go on creating new ventures one after
another. They maintain ownership control over them. They
do not involve day- to- day activities but keep strategic
control. They imitate or innovate as well as imitate to build
2. Behavioral entrepreneur
Behavioral entrepreneurs can be the following types:
 Solo operators
 Active partners
 Inventors
 Challengers
 Buyers
 Life timers

i. Solo operators
An entrepreneurs who start new venture by a single person is solo
operators. He appoints some employees if needed. They carve
niche in the market place.
ii. Active partners
All partners actively participate in the operation of business as a
iii. Inventors
They have competence to invent new product and processes and
willing to be entrepreneur.
iv. Challengers
They start new business because of the challenge it presents.
They like challenges. After the meeting of one challenge,
they look for another one.
v. Buyers
They like to buy out an on-going business. They do not like the
risk of starting of new business.
vi. Life Timers
They take business as a part of their life style. Their business
depends on personal skills. Family enterprises fall into this
category. Their intention is to earn an income for themselves
3. Based on Focus group entrepreneurs
Focus group based entrepreneurs can be of the following
types:
 Women entrepreneur
 Minority entrepreneur
 Immigrant entrepreneur
 Part time entrepreneur
 Home-based entrepreneur
 Family business entrepreneur
 Corpreneurs
 intrapreneurs
i. Women entrepreneurs
They are women in independent business. Development of
consciousness and desire for independence makes them
entrepreneurs.
ii. Minority entrepreneurs
Discrimination of the society prompts them to stat new
business. Their growth is influenced by the level of
education, experience, training and access to capital and
credit. They are minor in society.
iii. Immigrant entrepreneurs
They are persons who go from one country to another to start
business. They generally belong to a “deviant class” which
has a good business sense.
iv. Part-time entrepreneurs
They work for a salary but also run independent business on
part-time basis. Entrepreneurship is aimed at making extra
money. They are also known as “Moonlight Entrepreneur”.
v. Home-based entrepreneurs
They run business from their home. E-commerce has led to the
growth of such entrepreneurs.
vi. Family business entrepreneurs
They are family members who operate and control business.
They are widespread all over the country.
vii. Corpreneurs
They are couple who work together as co-owners of business.
Both husband and wife work hard in their defined roles.
They small scale ventures.
viii. Intrapreneurs/corporate entrepreneurs
The person who is already engaged in a corporation and make
innovation for new product, services, techniques etc are
taken as intrapreneurs. Most of the large and far sighted
companies provide opportunities to their managers of
innovation and encourage them to undertake
entrepreneurship activities.
Entrepreneurship Motivation
The term motivation is derived from the Latin word ‘movere’
which means “to move”. It is derived from the word ‘motive’
which means to ‘will to work.’
Motivation is the psychological process which is important in
understanding individual behavior. It inner state within the
individual that energizes, directs and sustains behavior toward
goal achievement.
Entrepreneurial motivation refers to the involvement of
individuals in their own business based on availability of
knowledge, skills, experience and resources.
The major factors motivating to an individual to become an
entrepreneur are as follows:
1. Create own destiny
2. Pursue own boss
3. Achieve full potential
4. Pursue financial rewards
5. Pursue own ideas
6. Set own schedule
7. Business leader
8. Means of excitement
9. Contribute to society
1. Create own destiny
Entrepreneurship provides an opportunity to create one’s own
destiny. Entrepreneur get opportunity to achieve what is important
for them to start new business based on their skills and efficiency for
its success.
2. Pursue own Boss
Entrepreneur himself is his own boss. He pursue the business
venture based on opportunity and his skills and knowledge. He
manages and controls all the business operation of his own business.
3. Achieve full potentials
Entrepreneurship involves scope for showing potentially of
individuals. Entrepreneur can start and operate the business based
on their vision and foresight. It provides great opportunity to
entrepreneurs to show their creativity which will fulfill self
actualization need.
4. Pursue financial rewards
The another important motivational factor for the entrepreneurs
is to earn sufficient financial rewards through their
entrepreneurial operation. In business, along with certain level of
risk, there is more possibility of earning profit and wealth.
5. Pursue own ideas
Some people are naturally alert and when they have recognize
ideas for new products or services, they have a desire to see those
ideas realized. Individuals having creativity and new ideas want to
run own business.
6. Set own schedule
Entrepreneurs have independency to set their own schedule of
work based on their convenience. They are able to choose an
appropriate time so that they can allocate time for other activities
7. Change living standard
Entrepreneurship is means of creating self employment and
source of generating employment to others through
establishment of venture by utilizing local resources. Hence, it
is the source of income generation. Entrepreneurship is the
basis of national unity and integration. It reduces the regional
disparity and maintain balanced development in the nation.
All these will helpful to change living standard of the people.
8. Business leader
Entrepreneurs are the leaders of their enterprises. They involve
in various business activities like production, distribution and
promotion, leading, directing etc… They must have qualities to
influence employees, their behavior and activities in order to
achieve desired goals.
9. Means of excitement
Entrepreneurship is the source of enthusiasm and stimulation
to individuals. Most of the individuals are involved in business
based on their interest. They operate business with best of
their skills, competencies, efficiency and interest.
10. Contribute to society
Entrepreneur directly and indirectly contribute to the society.
They produce and supply goods and services with best quality
to satisfy their customers at reasonable price. They create
direct and indirect employment opportunities to the society.
They pay various taxes which will contribute to social welfare.
They organize several programs to uplift and protect social
culture, norms and values.
Individual entrepreneur
individual entrepreneur is a person who establishes and
operates a business in his own name for earning profit and
wealth.
Individual entrepreneur is generally self-employed, self-
motivated and ambitious and is willing to take chances to meet
his economic and social objectives. He creates new ideas,
manages resources, grab opportunity and initiates action to
establish and operate business. He enjoys profit and also bears
losses occurred during operation of entrepreneurship.
The common features of an individual entrepreneur are as
follows:
Individual entrepreneur has sole ownership in the business.
He has sole managerial and control authority over his
business.
He has unlimited liability of business
He has to take sole risk of loss of business and payment of
liability
Business established by individual entrepreneur does not
have separate legal entity.
The entrepreneur can maintain secrecy of all the internal
matter of the business.
He has sole ownership in the profit of the business
He is independent for taking any kind of decision of the
concern
Entrepreneurial feelings
In different work situations, entrepreneurs may feel different
ways which is known as entrepreneurial feelings. The common
dimensions of entrepreneurial feelings are as follows
1. Passion and excitement
2. Independent and curious
3. Loneliness and fear
4. Difficult and stress
5. Kindness and trust
6. Success and accomplishment
7. Recognition and value
1. Passion and excitement
Entrepreneurs are creative and innovative in nature. They are
curious and initiatives. Therefore, they feel passion and
excitement for the business success. They can anticipate the
expected outcome from the business and work with the best of
their skills, efficiency and knowledge. The successful
entrepreneur do not consider about quick success but about long
run business success.
2. Independent and curious
Entrepreneur actively involve in establishment and operation of
enterprise. They invest capital, mental skill, time and effort for
their business success. Hence, they are independent in doing
their job and should not depend on other to perform and take
decisions and curious to generate new ideas, concept and
3. Loneliness and fear
Entrepreneurs are also an human beings. They do have feelings
which unstable too. Loneliness and fear is another feelings
which they feel during entrepreneurial activities. They have
devoted their time and effort for doing jobs and do not get any
supports from others, at this time they feel loneliness. They
also feel fear of loss in their business if it is not operated in
accordance with plan.
4. Difficult and stress
Entrepreneur may face different types of problems, issues and
complexities that may occur either form internal or from
external sources. They create obstruction on smooth
functioning of business. At this time they feel difficult and
stress.
5. Kindness and Trust
Entrepreneur, As the head of the entity they feel kindness and justice to
all the employees. They also feel trust on the behavior and activities of
the subordinates. All the employees are considered to be important
member of the business.
6. Success and Accomplishment
Entrepreneur devote time and effort of the effective functioning of the
enterprise, they take total risk of loss and contribute everything for the
success of the business. With the achievement of objectives, they feel
success and accomplishment about what they have dreamed of.
7. Recognition and value
Entrepreneurs feel the entrepreneurship is the basis for their
recognition and value in the society. They create employment
opportunities and pay taxes to the government for their business. They
utilizes the resources of the society and contribute for the betterment of
Entrepreneurial Process/ process of
New Venture Creation
Entrepreneurial process is the fulfillment of distinct steps in
order to establish a new enterprise for the purpose of business.
The following are the common steps to be considered for
entrepreneurial development:
1. Idea generation
2. Identifying opportunities
3. Developing a business plan
4. Resourcing and evaluation
5. Starting the business
6. Management and control
1. Idea generation
The entrepreneurship process starts with the generation of new
ideas. An entrepreneur identifies and evaluates the business
various opportunities generated through close observation and
interaction of the environment. The changes in external factors
of environment(PESTEL) creates various business ideas.
2. Identifying opportunities
After generation of new idea, the another step of
entrepreneurship development is to identify business
opportunity for new ideas. It is essential to evaluate new idea by
considering ground reality and if required the feasibility of the
product or service must be examined through pilot study. If
pilot study seems to be fruitful then it should be considered for
further process otherwise it is essential to search for new
3. Developing a business plan
A business plan is the formal written expression of the
entrepreneurial vision. It includes the following subject
matters:
 Goals, strategy and operations of the proposed business
venture.
 The process and technology to be used.
 Target market
 Determines product, price, distribution and promotion
 Sources of finance
 The critical risks, milestones and schedules for
implementation
4. Resourcing and evaluation
Resourcing process is identifying the financial and human
resource to the business ideas. The financial sources included
internal and external. The internal sources of finance are
private property, savings, borrowing from friends and relatives
etc… similarly the external sources of finance are equity capital
and loan from financial institutions. He also considers about
sources of growth capital.
Human resource is another important part. For the
entrepreneurial function it may requires skilled, semi-skilled
and unskilled manpower. The entrepreneur has to identify the
quantity and quality of human resources.
5. Starting the business
In this stage, entrepreneurs decide to establish new venture. They
determine the legal aspect of the venture such as
proprietorship/sole trading, partnership, company, cooperative
etc... They select the site and scope for the venture. The scope of
the venture can be service, manufacturing, communication,
construction, infrastructural activities .
6. Management and control
Management and control function plays vital role on success and
failure of the business. It last but not least part of entrepreneurial
process. The management team and their functions are clearly
mentioned here. Managerial functions like planning, organizing,
directing, staffing and controlling are perfectly and systematically
defined. Marketing functions like products decisions, promotion
function, placement process, pricing policies are clearly mentioned.
Entrepreneurs and Managers
Point of entrepreneur manager
difference
1. Meaning A person who takes risks by An employee who serves as
starting new business on his existing business to fix salary
own risk. or rewards.
2. Motive Independent and Motive for leadership and
achievement are the key power. S/he provides service
motives of an entrepreneur. in the business established by
S/he initiates business for an entrepreneur.
self-satisfaction.

3. Rewards Receives profit and other Gets fixed rewards and salary
monetary rewards, which are which are certain.
uncertain.
4. Objectives To maximize the profit To get high salary and other
facilities.
5. Status Owner of the business and is Servant or employee of the
his or her own boss. business
Point of difference Entrepreneur Manager

6. Risk Assumes financial, material Does not bear any risks.

and psychological and other
kinds risks.
7. Innovation and change Acts as innovator/ change Follows rules and
agent. S/he thinks over what procedures. S/he translates
and how to produce goods to innovative ideas into practice
meet the changing needs of and maintain status quo.
the customers.

8. Emphasis Give more emphasis on Gives more emphasis on

external environment. internal environment of
business.
9. Authority Centralizes authority with Delegates and supervises the
him . authority.
Involves directly in decision Exercises the authority given
making regarding business. by the entrepreneur.

10. Qualifications Needs to posses qualities and Needs to posses distinct

qualifications like high qualification in terms of
achievement motive, sound knowledge in
originality in thinking, management theory and
foresight, technical practice.
knowledge, experience, risk
etc
Entrepreneur, entrepreneurship and owner
manager
Distinctive Entrepreneu Entrepreneursh Owner
relation rs ip manager
1. concept Entrepreneurs Entrepreneurship Owner
are individuals refers to start one’s managers are
who creates own business for individuals who
new business earning profit and invest capital
venture for wealth. and manage a
earning profit particular
and wealth. business
venture.

2. Investment Invests mental Involve business Invest capital

creativity along units established only in a
with capital and and operated by particular
operation of the entrepreneurs business unit of
business. entrepreneursh
ip.
3. recognition He is an It is a business He is the owner
organizer along unit established and manager of a
with owner of by entrepreneur particular unit
various business
unit.
4. Risk taking Risk seeker and all level of risks Takes risks of his
bearer. are taken by or her own area
entrepreneurs of business unit.

5. Motivation Motivated by Motivated by its Motivated by

success, revenue, profit incentives of
achievement and and wealth. profession and
earning profit earning profit.

6. Idea Involves in Outcome of idea Involves in

generation generation of generated by the generation of
new ideas. entrepreneurs. new ideas for
solution of
operational
Dimensions of entrepreneurship
The various dimensions for entrepreneurship are as follows:
1. Intraprenuership
2. Technopreneurship
3. Netpreneurship
4. Ecopreneurship
5. Social entrepreneurship

6. Intraprenuership
Intrapreneur is a person that operates with in an organization and
embraces innovation to pursue business opportunity. Intrapreneurial
leadership is ability to create new concept, ideas and knowledge to grab
the business opportunity created by changing environment.
Intrapreneurship is the entrepreneurship within an existing
organization. When creative, initiative and dynamic individual involved
in the organization as an employee it is known as intrapreneurship.
2. Technopreneurship
The term technopreneurship is the combination of word
technology and entrepreneurship which means
establishment and operation of entrepreneurship based on
new technology. It involves creative and innovative individuals
who have positive attitude and skills on taking calculated risks
with generating unique business ideas.
This concept is originated in 1990s to define entrepreneurs who
establish, operates and manage their own technology - based
business. They are innovative and concentrate on upgrading an
existing technological level or develop new products or
services. The examples of technopreneurs are Bill Gates, Steve
jobs, Elon Musk etc
3. Netpreneurship
The Netpreneurship is the combination of two terms net and
entrepreneurship which means to perform business through
online, without any physical set-up of office. It refers to starting
a venture for doing business transactions through use of
internet.
The concept and the practices of Netpreneurship has emerged
after the development of internet networking system. It helps
the individuals to operate their own business based on their
knowledge without investment of huge capital, sufficient
infrastructure and requirement of large inventory.
The requirement of Netpreneurship include computers
connected with network, stable and fast internet connection.
The examples of this are Jeff Bezos(amazon), Poul Allen (micro
4. Ecopreneurship
Ecopreneurship is environmental entrepreneurship and eco-
capitalism. It is a term used to represent the process of principles of
entrepreneurship being applied to create business that solve
environmental problems and operate sustainably. It emphasizes on
sustainable development of business activities of entrepreneur but
by maintaining environmental balance. The concept of
Ecopreneurship is based on three major concept consisting of
innovation, caring for the environment and long-term
sustainability of business.
5. Social entrepreneurship
Social entrepreneurship is an organization which uses the business
methods to address a social or environmental problem in an
innovative way. It is all about recognizing the social problems and
achievement a social change by employing entrepreneurial
Social entrepreneurship mainly focuses on creating social
capital without measuring the performance in terms of profit
or return. The entrepreneurs in this field are associated with
non-profit sectors and organizations.

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