1. entrepreneurial perspective000
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Entrepreneurship Management
Subject Code : 4.3Total Marks : 100
External : 60 Marks
Internal : 40 MarksInclusion & Considerations
Attendance : Not less than 75%
Class Test : Better 2 out of 3
Case Study : Presentation
Discipline : Sincerity & Obedience
Participation : Effective
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Who is an entrepreneur ?Dictionary : One who recognizes and manages only enterprise specially
involving high risk.
Economist : One who brings resources, labour, raw materials and other
assets into combinations that increase their value from before
and also one who introduces changes, innovations and a new
order.
Psychologists : One who is typically driven by some forces, which create a
desire to obtain or attain something.
Sociologists : One whose actions would determine his social status and who
contributes to the development of society.
Management : One who has a vision and generates an action plan to achieve
it.
The word Entrepreneur has been derived from the French word Entrependre
which refers individuals who are undertakers (i.e. those who undertook the
risk of new enterprise.
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Entrepreneur Vs EntrepreneurshipEntrepreneur Entrepreneurship
Refers to a person Refers to a process
Visualizer Vision
Creator Creation
Organizer Organization
Innovator Innovation
Technician Technology
Initiator Initiative
Decision Maker Decision
Planner Planning
Leader Leadership
Motivator Motivation
Programmer Action
Risk Taker Risk Taking
Communicator Communication
Administrator Administration
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Entrepreneur Vs Manager
Parameter Entrepreneur Manager
Primary Motive Independence, Creativeopportunity & economic
Profit
Promotion and othertraditional corporate
rewards such as
increments, perks, power
and control over team
Activity Direct involvement in all
areas of management &business
Delegates & Supervises
rather gets directlyinvolved. Does not
consider aspects of the
business or management
that are outside his job
definition
Attitude towards Failure
and Mistakes
Takes full responsibility
and tries to correct
mistakes and overcome
failures
Tries to avoid mistakes
and failures. May be
cautious to the point of
inaction if the risk is too
high
Risk Taking Character Moderate to high risk taker.More risk More profit. Low risk taker.
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Entrepreneur Vs Manager
Parameter Entrepreneur Manager
Decision makingcapabilities
Takes all decision to followhis dream
Agrees with companyspolicies and those above in
the corporate hierarchy
Family Background Comes from a with a
history of entrepreneurs or
small business May even
come from farmingbackground.
Comes from a family
whose members generally
work for large corporations
or the government
Relationship with others Basis of relationship with
others is transactions and
deal making; To define his
own hierarchy.
Relates to others within the
existing hierarchy.
Relationship with each
other
Must have managerial
skills. Management is a
subset of entrepreneurship
Manager cannot be an
entrepreneur
Age In males it is generally 25
to 35 and among females it
is between 35 to 45.
Depends upon
qualification, experience
and performance.
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Entrepreneur Vs EntrepreneurshipEntrepreneur Entrepreneurship
Entrepreneurs are people with vision who
recognize and pursue opportunity, createand establish business or new ventures,
take into account the risk involved, have
control over the present and future and
have the flexibility to change and adapt
with the changing times.
Entrepreneurship is the pursuit of a
discontinuous opportunity involving thecreation of an organization (or sub-
organization) with the expectation of
value creation to the participants.
An entrepreneur is a person who
visualize a particular business venture
and then goes on to create it. Basically,
the person is the originator of a new
business venture and a new organization
for that venture.
Entrepreneurship is the means by which
new organizations are formed with their
resultant job and wealth creation. The
necessary condition that the organization
created, actually provides goods and/or
services to society, not merely to internal
consumption.
The entrepreneur is that individual (or
team) which identifies the opportunity,
gathers the necessary resources, creates
and is ultimately responsible for the
performance of the organization.
Entrepreneurship is the process of
creating value by bringing together a
unique package of resources to exploit an
opportunity.
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Importance of Entrepreneurship
It helps in overcoming the problems of population, unemployment,
underemployment and hidden unemployment. It is the key to economic development.
It helps in harnessing youth vigour.
It provides greater and varied employment opportunities.
Entrepreneur is a business leader who plays a pivotal role in fostering
economic growth and development. The paves the way for industrial development.
Entrepreneurship helps in solving the problems of monopoly andbalanced regional development.
It helps in increasing the per capita income and hence the life style.
It helps in higher individual savings and hence more purchasing power.
It provides more revenue for the government in the form of income tax,sales tax, export duties, import duties etc.
It guides the direction for national economics, industries and markets.
It introduces quantum leaps in technology and more productive use ofresources.
It guides innovations, creativity and wealth creation.
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Advantages / Benefits of an Entrepreneur
Your own boss and boss to others.Your decision will guide the success or failure of the enterprise
You will have the chance to put your ideas into practice.
You will make money for yourself rather than for somebody else
You have to participate in every aspect of the enterprise thus tolearn and gain practical experience in varied business discipline
You will work in the area of your choice and thus enjoy your job
You will get personal satisfaction of running a business andto develop self confidence.
You will contribute in providing job for others.
You develop your own action plan for execution.
You will work directly with your customers and do projections.
You will contribute in raising the life style and radical change
in the socio economic structure.
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Disadvantages / Risk of an Entrepreneur
Alone performer Solitary decision maker
All may be a loser at the end.
Work may not be satisfying.
Not able to change job frequently.
Long working hours.
Lack of success will hamper enthusiasm. To remain in business will be difficult.
May disturb family and social life.
Risk of career, finance and more uncertainty.
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Characteristics / Personality of an
Entrepreneur Always takes initiative Translates opportunity into reality
Determined to face the situation / Optimistic
Information seeking from all corners /
Realistic
Demand for quality and efficiency / Value Product
Risk taking Financial, Social, Psychological
Goal setting
Commitment to work / Long working hours
Systematic planning and monitoring / Organized
Self belief, Persuasion and networking
Independent & self confidence but not over confident
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Respect for work
Always innovative
Perception of economic opportunity Imagination and creativity
Believe in changing the business environment
Enjoy freedom of expression and action
Gain satisfaction from completion of work
More motive to achieve than mere competitiveness
Readily takes feedback
Invite constructive criticism
Reports a good relationship with father
Makes the economy more competitive
Does not particularly stand out in crowd
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Role in Economic Development Generation of more employment
Economic reforms Delicensing of industries
Lowering of interest rates
Formulation of outsourcing culture In balancing regional development
Optimum utilization of natural resources
In capturing market opportunities
In overall economic development
Lowering the load of job market
Providing options for job seekers
Further encouraging intrapreneurs
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Entrepreneurs Vs Intrapreneurs
Entrepreneurs Intrapreneurs
Owner / Operator An Employee
Implements own or others ideas Shares own ideas, seeks approval
Expects always financial profits Remuneration / Recognition / Reward
Takes extreme risks Calculated risk
Profit goes to the entrepreneur Profit for the organization
Needs to encourage intrapreneur Way to improve company performance
Education and experience less concern More concern or a must
Inclined more towards consumer sales More inclined towards B 2 B products
Generally at age between 30 40 Most often after 40
Involvement in all business areas Major areas and the delegated areas
Full responsible of failure / success Tries not to take failure
Correct mistakes and tries to overcome Avoids risky projects as much possibleGenerally from entrepreneur or
business family or background
Mostly salaried and rarely entrepreneur
Generally defines his own hierarchy Depends on the existing hierarchy
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Environment for an Intrapreneur To operate on the frontiers of technology
To encourages new ideas To encourage trial and error
To allow failures
Not to try to place any parameters & opportunities To make resources available to all
To have a multidisciplinary team based approach
To have a long time horizon for product development
To have an appropriate reward system
To provide sponsorship and mentorship
The top management needs to support the efforts of
an intrapreneur