INTRODUCTION TO ENTREPRENEURSHIP

• Originated from the French word "Entependre"

• It is dynamic process of creating wealth carried out by individuals who take major risks
in terms of investments, time and career commitment.
• In economics, it is regarded as a factor of production( land, labor, natural resources,
entrepreneurship)
• A society that has entrepreneurs is considered to be a successful society. This is because
entrepreneurs are individuals who are creative, dynamic and innovative. They are willing
to take risks and face unpredictable and uncertain challenges by using their creativity and
will power.

• Entrepreneurs would develop and penetrate new business areas in order to stay
competitive in the industry. Then, more products or services being offered to the society,
which would enhance the society's economic development.

• Entrepreneurs would develop and penetrate new business areas in order to stay
competitive in the industry. Then, more products or services being offered to the society,
which would enhance the society's economic development.
Introduction to Entrepreneurship

• Entrepreneurship is the process of creating something new of value by devoting

(giving) the necessary time and effort.
• By accepting and acknowledging the necessary financial, psychological, and social
risks, and Finally receiving the resulting rewards be it monetary and personal
satisfaction and freedom to do what you want.

-Robert D.Hisrich, M. Peters & D.A Shepherd

An individual's preparedness to grab opportunities without considering the
resources at hand.
-Stevenson, Roberts and Grousbeck
• Dollinger defined entrepreneurship as the establishment of an economical firm that
is innovative, profit oriented, willing to take risks, and face uncertainties in the
environment.
• As a conclusion, entrepreneurship benefits the entrepreneur, the economy and the
society. It is a process that creates and manages a business to achieve the
entrepreneur's desired goals.
Why do we need entrepreneurship?

• Life-line of a nation: No country can progress without the development of entrepreneurship.

Every country is trying to promote its trade so that it is able to share the benefits of development.
Therefore, entrepreneurship is the yardstick to measure the level of development of a country.

• Provides innovation: Entrepreneurship provides new ideas, imagination and vision to the
enterprise. An entrepreneur is an innovator as he tries to find new technology, products and
markets. He increases the productivity of various resources. The entrepreneur stands at the
center of the whole process of economic development. He conceives business ideas and puts
them into effect, to enhance the process of economic development.

• Change of growth: An enterprise operates in a changing environment. The entrepreneur

moulds the enterprise in such a changing environment. The latter moulds not only the enterprise,
but also alters the environment itself, to ensure the success of the enterprise. In order to meet
the challenge of automation and the complexities of advanced technology, there is a need for the
development of entrepreneurship
Increased profits: Profits can be increased in any enterprise, either by increasing the sales
revenue or reducing cost. To increase the sales revenue is beyond the control of an enterprise.
Entrepreneurship, by reducing costs, increases its profits and provides opportunities for future
growth and development.
• Employment opportunities: Entrepreneurship and its activities provide the
maximum employment potential. Large numbers of persons are employed in
entrepreneurial activities in the country. The growths in these activities bring
more and more employment opportunities.

• Social Benefits: It is not only beneficial to the business enterprise, but to

the society at large. It raises the standard of living by providing good quality
products and services at the lowest possible cost. It also makes the optimum
use of scarce resources and promotes peace and prosperity in the society.
2. ENTREPRENEUR

• An entrepreneur is an individual who, rather than working as an employee, founds

and runs a small business, assuming all the risks and rewards of the venture. The
entrepreneur is commonly seen as an innovator, a source of new ideas, goods,
services and business/or procedures.
• A person who organizes and manages any enterprise, especially a business, usually
with considerable initiative and risk.
• A common definition of an entrepreneur is someone who establishes a new entity
to offer a new or existing
product or service into a new or existing market, whether it is for a profitable or
non-profitable outcome.
• An entrepreneur is an individual who is able to perceive an opportunity for a
business and create an
organization to develop and manage that business successfully.
• An entrepreneur is an individual who organizes, manages and assumes the risks of
a business
 Intrapreneurs
•
• An intrapreneur is an inside entrepreneur, or an entrepreneur within a
large firm, who uses entrepreneurial skills without incurring the risks
associated with those activities.
•
• Intrapreneurs are usually employees within a company who are
assigned a special idea or project, and are
instructed to develop the project like an entrepreneur would.
•
• Intrapreneurs usually have the resources and capabilities of the firm
at their disposal.
•
• the interpreneur’s main job is to turn that special idea or project into
a profitable venture of the company.
Types of entrepreneurs

• Lifestyle entrepreneurs
• Side Businesses
• Startup Founders
• Social Entrepreneurs
Entrepreneurship innovation

Potato Chips Inventor: George Crum, a chef at the Carey Moon Lake House in Saratoga Springs
What they were trying to make: A plate of fried potato.

• How it was created: One day, a customer sent back his plate of potatoes many times and kept
asking for them
to be more fried and thinner.
• Crum lost his temper, sliced the potatoes insanely thin and fried them until they were hard as a
rock. To the chef's surprise, the customer loved them and wanted more! And this is how potato
chips came into existence.
The Pacemaker Inventor: John Hopps, an electrical engineer

• What he was trying to make: Hopps was conducting research on hypothermia and was trying to
use radio
frequency heating to restore body temperature.
• How it was created: During his experiment, he realized that if a heart stopped beating due to
cooling, it could be started again by artificial stimulation. This realization led to the pacemaker.

Microwave Ovens Inventor: Percy Spencer, an engineer (with the Raytheon Corporation)
• What he was trying to make: The engineer was conducting a radar-related research project with
a new vacuum tube.
How it was created: Spencer realized that the candy bar in his pocket began to melt during his
experiments. He then put popcorn into the machine, and when it started to pop, he knew he had
a revolutionary device on his hands.

Ink-Jet Printers Inventor: A Canon engineer.

• How it was created: After resting his hot iron on his pen by accident, ink was ejected from the
pens point a few moments later. This principle led to the creation of the inkjet printer.
• It is clear from these examples, that the various inventions people all over the world have tried,
failed and succeeded in sometimes by mistake. Utility for the invention will be developed later in
life, so immediate results for all one's actions should not be expected, but keep experimenting.
3. THE ENTREPRENEURIAL DECISION PROCESS

There are lots of controversy about the steps and characteristics of an entrepreneur. Some urges
that characteristics are the most important thing to be an entrepreneur. It is true, because in
order to be an entrepreneur, a person must possess some characteristics. But exploring these
characteristics and qualities to
become an entrepreneur, is not an easy task.

• Besides characteristics, there is a set of steps, a process by which a person can be an

entrepreneur. The steps are:

✓ Identification and evaluation of opportunities

✓Development of business plan
✓ Determination of resources required
✓Managing the enterprise
4.ROLE OF ENTREPRENEURS IN ECONOMIC DEVELOPMENT

WEALTH CREATION AND SHARING:

By establishing the business entity, entrepreneurs invest their own resources and
attract capital (in the form of debt, equity, etc.) from investors, lenders and the public.
This mobilizes public wealth and allows people to benefit from the success of
entrepreneurs and growing businesses. This kind of pooled capital that results in
wealth creation and distribution is one of the basic goals of economic development.

EMPLOYMENT:

Any business start-up requires human resources that could fulfill the demand of the
company thereby making earning for them self. Thus it's very much important for an
entrepreneur to seek a maximum number of employee to work that could help each
other in vice-versa manner. Hence it's proven that with each new startup by
entrepreneur more and more people will get employed.
BALANCED REGIONAL DEVELOPMENT:

Entrepreneurs setting up new businesses and industrial units help with regional
development by locating in less developed and backward areas. The growth of
industries and business in these areas leads to infrastructure improvements like better
roads and rail links, airports, stable electricity and water supply, schools, hospitals,
shopping malls and other public and private services that would not otherwise be
available.

STANDERD OF LIVING:

Entrepreneurs raise the standards of living of people by providing them new, better
and improved product. They supply goods having additional features at reasonable
prices. They also remove scarcity of essential commodities and introduce new
products which lead to variety in consumption
EXPORTS:

Any growing business will eventually want to get started with exports to expand their
business to foreign markets. This is an important ingredient of economic development
since it provides access to bigger markets, and leads to currency inflows and access to
the latest cutting-edge technologies and processes being used in more developed
foreign markets. Another key benefit is that this expansion that leads to more stable
business revenue during economic downturns in the local economy

COMMUNITY DEVELOPMENT:

Economic development doesn't always translate into community development.

Community development requires infrastructure for education and training,
healthcare, and other public services. For example, you need highly educated and
skilled workers in a community to attract new businesses. If there are educational
institutions, technical training schools and internship opportunities, that will help build
the pool of educated and skilled workers.
6. ETHICS AND SOCIAL RESPONSIBILITY OF ENTREPRENEURSHIP

SOCIAL RESPONSIBILITIES OF ENTREPRENEURSHIP

According to Earnest Dale, "the manager sees himself as an arbiter among the many
interests of 'public' affected by the business, the stockholders, the employees, the
suppliers, the local community and the customers. It is his duty to divide the returns
from the business equitably by providing a 'fair' return to the shareholders, 'fair'
working conditions and pay for the employees or 'fair' prices to the suppliers and
customers and to make the business, in general, an asset to the local community and
the nation." The most important social obligation of an entrepreneur is to reconcile
and balance the various conflicting interests in the best possible manner.

The various stakeholders are:

Employees: Employees need security of job, higher wages, full employment, better
conditions of work and opportunities for self-development and promotion. They also
desire their work itself to be rewarding and to contribute something good to the
society in general.Management, as a part of its social responsibilities, is expected to
provide for their social security, welfare, grievances settlement machinery and sharing
of excess profits.

Shareholders: An entrepreneur must provide safe, fair adequate and stable long-run
rate of return and steady capital appreciation to the shareholders for their
investments. It must also provide regular, accurate and adequate information about
the working of the company

Suppliers: Dealings with the suppliers should be based on integrity, impartiality and
courtesy. Terms and conditions regarding delivery of goods and payment of prices
must be reasonably fair. Producers may make available to the suppliers the benefits of
their information and research so as to promote indigenous growth or for the
improvement of the quality of their products.
 Customers:
In the words of Henry Ford, an entrepreneur must provide, "those goods and services
which the society needs at a price which the society can afford to pay." Entrepreneurial
ventures must meet the requirements of the customers of different classes, tastes and
with different purchasing power at the right time, place, and price and in right quality.
An entrepreneur should act as a friend Employees Government Trade Association
Customers Communities Suppliers Stockholders Organization 84 and guide to the
customer. He must try to protect consumers' interest at all costs. He must guard against
adulteration, poor quality, lack of service and courtesy to the consumer, misleading and
dishonest advertisement, underweighting, supply of stale goods, etc. He must handle
the complaints of the customers carefully and efficiently and cooperate to the maximum
extent with the consumers associations. A customer must also be protected against the
ill effects of monopolistic and restrictive business practices.

Government
:- Entrepreneurs must abide by the laws of the country in their true spirit. The must
conduct their affairs as may cause the minimum possible social damage such as air or
water pollution. They must help in the proper implementation of all social improvement
promptly. meat paucies, adopted by the Government. Government. They must pay taxes
 Trade Associations and Competitors:
An entrepreneur should develop healthy inter-business relationships with fellow-
entrepreneurs. He must adopt fair trade practices regarding prices, quality, terms and
conditions of sale and after-sales service. The policy of under-cutting or restricted
trade practices should be avoided. An entrepreneur must patronize business
associations to ensure development of healthy business practices.

Community:
The entrepreneurs should manage their business with such competence and skill that
it inspires confidence and pride in the mind of the people. They must encourage
democratic institutions and assist national integration. Enterprise, on the whole,
should act on the ideas of social justice without discrimination of any kind. Business
must set high standards of morality and put in all efforts to minimize social damage. It
must help in bringing about a cultural, social and economic revolution in the society
and lead to the economic growth of the backward regions of the world.
 Business Ethics

• Ethics refers to the "study of whatever is right and good for

humans, business ethics concerns itself with the
investigation of business practices in light of human values.
Ethics is the broad field of study exploring the general
nature of morals and the specific moral choices to be made
by the individual in his relationship with others.
• Ethics involves the rules and principles that define right and
wrong decisions and behaviors. In other words, as we live
our lives - attend school, go to work, engage in hobbies, go
out with friends, and so forth - certain decisions are
ethically "right" and others are ethically "wrong".
 ETHICS
• Considering the varied interpretations of right and wrong, you can see
how ethics is a complex topic to address. However, ethical considerations
do play a role in the decisions you make and the actions you take with
your entrepreneurial venture. You need to be aware of the ethical
consequences of these.
• The example you set, especially if you have other employees, can be
significant in influencing behavior. A manager's attitude concerning
corporate responsibility is related to the organizational climate perceived
to be supportive of laws and professional codes of ethics.
• On the other hand, entrepreneurs with a relatively new company who
have few role models usually develop an internal ethical code.
Entrepreneurs tend to depend on their own personal value systems much
more than other managers when determining ethically appropriate
courses of action. Ethics is not only a general topic for conversation but a
deep concern of business people.