Unit I

Entrepreneurship: Concepts and Definitions

The entrepreneurship is usually understood with reference to individual business. Entrepreneurship has rightly been identified with the individual, as success of enterprise depends upon imagination, vision, innovativeness and risk taking. The production is possible due to the cooperation of the various factors of production, popularly known as land, labor, capital, market, management and of course entrepreneurship. The entrepreneurship is a risk taking factor, which is responsible for the end result in the form of profit or loss.

According to A Schumpeter “The entrepreneurship is essentially a creative activity or it is an innovative function”.

According to Cantillon, “An entrepreneur is the agent who buys factors of production at certain prices in order to combine them into a product with a view to selling it at certain prices in future.”

According to J. B. Say, “An entrepreneur is the economic agent who unites all means of production – land of one, labor of another and the capital of yet another and thus produces a product. By selling the product in the market he pays rent of land, wages to labor, interest on capital and what remains is his profit.”

According to Joseph Schumpeter,

“An entrepreneur is an innovator who brings economic development through new combination of factors of production.”

To conclude: an Entrepreneur can be defined as an individual or a group of individuals who tries to create something new, who organizes production and undertakes risk involved in the establishment and operation of a business enterprise.

Entrepreneur

Innovates Bears RiskOrganises Factors of

Production

Some more definitions of Entrepreneur

1. Entrepreneurship is the act of being an entrepreneur, which is a French word meaning "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods.”

2. An entrepreneur is a person who has possession of a new enterprise, venture or idea and assumes significant accountability for the inherent risks and the outcome. The term is originally a loanword from French and was first defined by the Irish economist Richard Cantillon.

3. entrepreneur - someone who organizes a business venture and assumes the risk for it4. One special form of human capital that is important in an economic setting is entrepreneurship

(often thought of as the fourth factor of production).5. Entrepreneur - An innovator of business enterprise who recognizes opportunities to introduce a

new product, a new process or an improved organization, and who raises the necessary money, assembles the factors for production and organizes an operation to exploit the opportunity.

An entrepreneur is one of the important segments of economic growth. Basically, an entrepreneur is a person who is responsible for setting up a business or an enterprise. Infact, he is one who has the initiative, skill for innovation and who looks for high achievement. He is a catalytic agent of change and works for the good of people. He puts up new grain field projects that actually creates wealth, opens up employment opportunities and fosters other sectors in terms of economic and feasibility.

What is Entrepreneurship?

Entrepreneurship is more than simply “starting a business.”  The definition of entrepreneurship is a process through which individuals identify opportunities, allocate resources, and create value.  This creation of value is often through the identification of unmet needs or through the identification of opportunities for change.

Entrepreneurs see “problems” as “opportunities,” then take action to identify the solutions to those problems and the customers who will pay to have those problems solved.

Entrepreneurial success is simply a function of the ability of an entrepreneur to see these opportunities in the marketplace, initiate change (or take advantage of change) and create value through solutions.

Entrepreneurship is the propensity of mind to take calculated risks with confidence to achieve a pre-determined business or industrial objective. In substance, it is the risk taking ability of the individual, broadly coupled with the correct decision-making.

The capacity to take risk independently and individually, with a view to making profits and seizing an opportunity to make more earning in the market-oriented economy, is the dominant characteristic of modern entrepreneurship.

To conclude, entrepreneurship refers to a process of action an entrepreneur undertakes to establish his/her enterprise. It is a creative and innovative response to the environment. It refers to a cycle of actions to further the interests of the entrepreneur. Entrepreneurship is a composite skill, the resultant of a mix of many qualities and traits. These include imagination, readiness to take risks, ability to bring together and put to use other factors of production – land, labor and capital.

Distinction between Entrepreneur and Intrapreneur:

Entrepreneurship is the practice of embarking on a new business or reviving an existing

business by pooling together a bunch of resources, in order to exploit new found

opportunities.

What is Intrapreneurship: Intrapreneurship is the practice of entrepreneurship by

employees within an organization.

Both “preneurs” set themselves aside from employees in a number of ways but perhaps the most

significant is in their relationship with the business.  It’s a question of committment over

involvement. Employees are involved, “preneurs” are committed.

An entrepreneur takes substantial risk in being the owner and operator of a business with

expectations of financial profit and other rewards that the business may generate. On the

contrary, an intrapreneur is an individual employed by an organization for remuneration,

which is based on the financial success of the unit he is responsible for. Intrapreneurs share

the same traits as entrepreneurs such as conviction, zeal and insight. As the intrapreneur

continues to expresses his ideas vigorously, it will reveal the gap between the philosophy of

the organization and the employee. If the organization supports him in pursuing his ideas,

he succeeds. If not, he is likely to leave the organization and set up his own business.

Example of intrapreneurship: A classic case of intrapreneurs is that of the founders of

Adobe, John Warnock and Charles Geschke. They both were employees of Xerox. As

employees of Xerox, they were frustrated because their new product ideas were not

encouraged. They quit Xerox in the early 1980s to begin their own business. Currently,

Adobe has an annual turnover of over $3 billion.

Features of Intrapreneurship: Entrepreneurship involves innovation, the ability to take

risk and creativity. An entrepreneur will be able to look at things in novel ways. He will have

the capacity to take calculated risk and to accept failure as a learning point.

An intrapreneur thinks like an entrepreneur looking out for opportunities, which profit the

organization. Intrapreneurship is a novel way of making organizations more profitable where

Entrepreneurship EnterpriseEntrepreneur

Object / Entrepreneurial StuffProcess of action / qualityPerson

imaginative employees entertain entrepreneurial thoughts. It is in the interest of an

organization to encourage intrapreneurs. Intrapreneurship is a significant method for

companies to reinvent themselves and improve performance.

In a recent study, researchers compared the elements related to entrepreneurial and

intrapreneurial activity. The study found that among the 32,000 subjects who participated in

it, five percent were engaged in the initial stages of a business start-up, either on their own

or within an organization. The study also found that human capital such as education and

experience is connected more with entrepreneurship than with intrapreneurship. Another

observation was that intraptreneurial startups were inclined to concentrate more on

business-to-business products while entrepreneurial startups were inclined towards

consumer sales.

Another important factor that led to the choice between entrepreneurship and

intrapreneurship was age. The study found that people who launched their own companies

were in their 30s and 40s. People from older and younger age groups were risk averse or felt

they have no opportunities, which makes them the ideal candidates if an organization is on

the look out for employees with new ideas that can be pursued.

Entrepreneurship appeals to people who possess natural traits that find start ups arousing

their interest. Intrapreneurs appear to be those who generally would not like to get

entangled in start ups but are tempted to do so for a number of reasons. Managers would do

well to take employees who do not appear entrepreneurial but can turn out to be good

intrapreneurial choices.

Examples of Intrapreneurs:

A lot of companies are known for their efforts towards nurturing their in-house talents to

promote innovation. The prominent among them is “Skunk Works” group at Lockheed

Martin. This group formed in 1943 to build P-80 fighter jets. Kelly Johnson was the director

of the project, a person who gave “14 rules of intrapreneurship”.

At “3M” employees could spend their 15% time working on the projects they like for the

betterment of the company. On the initial success of the project, 3M even funds it for further

development.

Entrepreneur Intrapreneur

An Entrepreneur is someone who has the skills,

passion and financial backing to create wealth

from new business opportunities and is willing to

take full responsibility for its success or failure.

An Intrapreneur is someone who manages that

business with entrepreneurial flare in line with the

expectations of the shareholders.

The Entrepreneur is typically a visionary who

spots an opportunity in the marketplace and has

the passion, guile and contact base to set the

wheels in motion.

The Intrapreneur has passion and drive but also

has the operational skills of running the

“clockwork” of the business to enable a good idea

to be turned into commercial reality.  He is the

“inside entrepreneur”

Not every small business needs an Entrepreneur But every business needs an Intrapreneur.

the seed of a business idea needs an

Entrepreneur to shape and cultivate it

Entrepreneur needs the Intrapreneur to pluck

from his grasp those seeds of opportunity,

convert them in to a viable commercial plan and

then manage that plan to a profitable reality.

Without the intrapreneur, ideas entrepreneurs

and small business are doomed to fail.

Article

Effective leadership in small business: The IntrapreneurWritten by Steve Winduss on October 16, 2008 – 6:53 am - 

Your small business needs effective leadership.  Possibly your most important asset

besides your product is your intrapreneur.

You have decided that you areentrepreneur not intrapreneur.  Your business needs an intrapreneur –

the entrepreneur inside the business. But how can you identify such a key component of your team?

You can’t afford to get this one wrong.

To help, I have highlighted 30 ways to spot an intrapreneur, those key traits which mark him out

as the special one, the one that your business can’t do without.

An Intrapreneur ………

wholeheartedly embraces the entrepreneur’s vision for the company

earns respect, not demand it

energises and excites people

is prepared to admit when he is wrong

listens to others’ ideas and opinions and takes action on them

recognises the boundaries of his own capabilities

is consistent

exudes positivity from every pore

never brings domestic crises to work with him

is prepared to take risks

defaults to saying “we”, not “I”

exhibits positive attributes such as fairness, integrity, compassion, loyalty

understands the full spectrum of business activities

makes consistenly good business decisions

deflects praise onto his team

is a good time manager

is not afraid to ask for help

naturally attracts trust and loyalty

believes in the carrot, not the stick

makes sacrifices without hesitation

understands the numbers

preaches empowerment

understands that if you never fail, you’re not pushing the boundaries hard enough

communicates at all levels and in all directions

seeks never ending improvements, no matter how small

thrives on change and hates maintaining the status quo

takes humour seriously

is not prescriptive or controlling

loves his staff as much as his customers

constantly reviews his business planning process

Effective leadership in small business relies on  – the intrapreneurs.

Entrepreneur and Manager

Basis Entrepreneur Manager

Venture An entrepreneur sets up a new

enterprise or undertakes a venture

for his personal gratification.

A manager does not take a new

venture and renders services in

an existing enterprise.

Risk Bearing

An entrepreneur assumes risk of

economic uncertainty involved in

the enterprise.

A manager does not assume or

share any risk.

Reward The reward of an entrepreneur for

his risk bearing role is profits. Its

not only uncertain and irregular

but at time negative also.

The reward for a manger for

rendering his services is salary

which unlike profit is fixed and

regular.

Contintuity Entrepreneurial activities are

discontinuous appearing to initiate

changes in the production process

and then disappearing utile the

change is initiated.

Managerial activities are mainly

continuous involving an on-going

coordination of business

activities.

Innovation In order to maximize the profits,

the entrepreneur applies

innovation from time to time. An

entrepreneur is a change agent.

A manager keeps running the

enterprise on already established

lines on a routine basis.

Status-role An entrepreneur is his own boss

and enjoys an independent status

as the owner of the enterprise

A manager is a salaried person

serving the enterprise of some

one else i.e. entrepreneur.

Prerequisites

An entrepreneur needs

prerequisites like mission, creative

thinking and risk bearing etc.

A manager needs distinct

qualifications such as knowledge

of human behavior, management

theory etc.

Entrepreneurship involves mobilizing the resources and combining them to initiate change in

production. On the other hand, management involves combining and coordinating the

resources for production.

Traits / Qualities of an Entrepreneur or Entrepreneurial Competencies

Top 7 Personal Competencies of an Entrepreneur

An entrepreneur has to have certain cultivated and inherent qualities in him or her in order to make a success of his or her venture. Not any person can be a successful businessman or woman. Hard work and determination to win have made many successful business people to reach their aspired goals.

Personal competencies of a successful businessman or woman

Leadership qualities – A businessman or woman must be able to lead his or her staff members as well as other associates. He or she must be able to guide others in carrying out business and make a success of it.

Decisive – A successful businessman or woman has to be very decisive. He or she has to take many decisions sometimes on the spur of the moment. Any vacillation in decisions could affect their business. They have to be very firm in their decisions. Also, while taking decisions they must not get influenced by others. They should be able to take decisions independently.

Risk-taking – Business involves many risks, which a business person must not hesitate to take. Lot of financial involvement is there and obviously one has to be careful with investments. Yet risks have to be taken in money matters as well. Sometimes a businessman may lose out on his or her venture, but when he or she make a success of it then he or she has much to gain, both financially and from a personal satisfaction point of view.

Confident – Achieving success in business requires confidence. A businessman or businesswoman has to be sure of him or herself about reaching the set targets of success. Diffidence does not help. Self-image is enhanced, when one is confident.

Willingness – A businessman or woman must be willing to undertake any matters concerning their business venture. He or she must not hesitate for personal or other reasons. Willingness to extend a helping hand is very essential.

Enterprising – One has to be enterprising in order to achieve significant results in business. He or she has to have the zeal to do things. A laid- back approach will not help.

Innovative – New ideas help make a business venture successful. A successful businessman or woman must be innovative and always strive for something better. New concepts must be formulated and new ways of doing business must be thought of.

A businessman or woman has to very competent to achieve scale the ladder of success. Certain attributes are essential for him or her to establish their business on sound footing.

Competence refers to a person’s underlying characterestics leading to his / her superior performance. It is a good combination of various qualities and traits required to perform the job effectively. Some people believe that entrepreneurs are born not made. Business family background is essential to success for entrepreneurs. Other people believe that entrepreneurs are made not born. According to some people, persons with proper knowledge and skills acquired through education and experience can become successful entrepreneurs. In order to resolve the controversy on what makes successful entrepreneurs, the Entrepreneurship Development Institute of India (EDI) conducted a research and identified the following traits of an entrepreneur:

1. Initiation2. Watching for opportunities (vision and foresightedness)3. Persistence4. Information seeker5. Quality conscious6. Commitment to work7. Efficiency lover8. Proper planning9. Self confidence10. Assertiveness11. Persuation12. Effective monitoring13. Concern for employees

According to McClelland, three qualities are:

1. Endowed with an unusual creativeness.2. Enriched by high propensity3. Strong need for achievement.

Nature and Characterestics of Entrepreneurship

1. Economic Activity2. Creative activity3. Purposeful activity4. A function of risk bearing5. An organizing function6. Gap filling function7. Dynamic process8. Innovative function

“Peter Drucker defines an entrepreneur as one who always searches for change, responds to it and exploits it as an opportunity. Entrepreneurs innovate.”

Functions of Entrepreneur

1. Innovation

2. Risk Taking

3. Organisation Building

4. Perceiving Market Opportunities

5. Gaining Command over scarce resources

6. Purchasing inputs

7. Marketing products

8. Dealing with Bureaucrats

9. Managing HR within the firm

10. Managing customer and supplier relations

11. Managing finance

12. Acquiring and overseeing assembly of the factory

13. Upgrading process and product

14. Introducing new production techniques and products

FACTORS AFFECTING ENTREPRENEURIAL GROWTH

Entrepreneurship does not emerge and grow spontaneously. Rather, it is

dependent upon several economic, social, political and psychological factors.

These environmental factors may have both positive and negative influences

on the growth of entrepreneurship.

1. ECONOMIC FACTORS

a)  Adequate overhead facilities: Profitable innovations require basic

facilities like transportation, communication power supply etc. They

reduce cost of production and increase profit.

b)  Capital: Inventions are capital oriented. In less developed countries

most capital equipment have to be imported which involves foreign

exchange which acts as a difficult problem.

c) Great risk: Risk is high in case of less developed countries as there is

lack of reliable

information, markets for goods and services is small etc.

d) Labor: Though there is abundant labor supply there is generally

scarcity of skills at

all levels.

e) Raw Material:

f) Market:

2. SOCIAL FACTORS

A society that is rational in decision making would be favorable for

decision making. Education, research and training is given less

importance in less developed countries therefore there is very little

vertical mobility of labor.

a) Legitimacy of Entrepreneurship

b) Social Mobility

c) Security

3. CULTURAL FACTORS

Religious, social and cultural factors also influence the individual taking upan

entrepreneurial career, in some countries there is religious and culturalbelief

that high profit is unethical. This type of belief inhibits growth of

entrepreneurship.

4. PERSONALITY FACTORS

In less developed countries the entrepreneur is looked upon with suspicion.

Public opinion in the less developed nations sees in the entrepreneur only a

profit maker and exploited.

5. MOTIVAT ION

Motivation is the act of stimulating someone or oneself to get a desired

course of action, to push the right button to get the desired results.

MOTIVATING FACTORS

1. Education background

2. Occupational experience

3. Family background

4. Desire to work independently in manufacturing line

5.Assistance from financial institution

6.Availability of technology

7. Other factor

6. Governmental Influence:

FACTORS INFLUENCING ENTERPRENURESHIP

The emergence of entrepreneurs in a society depends upon closely

interlinked social, religious, cultural, psychological, and political and

economic factors.

FAMILY TRADITION: Individuals who for some reason, initiate, establish

maintain and expand new enterprises generate entrepreneurship in society.

It is observed that entrepreneurs grow in the tradition of their families and

society and accept certain values and norms from these sources.

RELIGIOUS, SOCIAL AND CULTURAL FACTORS: Religious, social and

cultural factors also influence the individual taking up an entrepreneurial

career, in some countries there is religious and cultural belief that high profit

is unethical. This type of belief inhibits growth of entrepreneurship.

PSYCHOLOGICAL FACTORS: The psychological factors like high need for

achievement, determination of unique accomplishment, self confidence,

creativity, vision, leadership etc, promote entrepreneurship among

individuals. On the other hand psychological factors like security, conformity

and compliance, need for affiliation etc restrict promotion of

entrepreneurship.

POLITICAL FACTORS: The political and also the political stability of country

influence the growth of entrepreneurship. The political system, which

promotes free market, individual freedom and private enterprise, will

promote entrepreneurship.

ECONOMIC POLICIES: The economic policies of the government and other

financial institutions and the opportunities available in a society as a result of

such policies play a crucial role in exerting direct influence on

entrepreneurship.

In view of the haphazard development of economic zones, Government is encouraging the entrepreneurs to establish their business in backward and tribal areas. This is primarily to arrest the migration of people from the villages to cities and to create employment opportunities locally. Government is promoting such development by giving incentives like tax holidays (both sales and income), subsidized power tariff, raw materials, transportation cost etc.

CAUSES OF SLOW GROWTH OF ENTREPRENEURSHIP IN INDIA

Entrepreneurship developed only in the beginning of the 19th century and

though the base for industrialization had been laid a century ago. The

following be the main reasons, which could be responsible for lack of

initiative and entrepreneurial spirit among the Indians.

1. Caste System: - This decided occupation for members from each caste.

The altitudes were restrictive and therefore there were no changes of

accumulating wealth and promoting production.

2. Agriculture: - Agriculture was the main occupation. Farmers and

cultivators were always in the clutches of the money lenders. The zamindars,

nawabs and rajahs exploited the laborers. They spent money on enjoyment

and luxury and never risked money in industry. Banking and commercial

system was also absent so even if there were savings, they could not be

utilized for productive use.

3. Educational System: - Talented young men were prepared to take white

collared jobs or join government or professional services. Many were

attracted towards politics. The result was that very few young men got

attracted towards becoming efficient, industrialists, technicians,

managers etc.

4. Colonial Rules: - The British rulers adopted discriminatory policy Rich

Indian businessman had special connections with foreign rulers and both

satisfied their self interests. Even the few insurance and banking services

catered to the needs of some rich Indian businessman, Britishers in India did

also not encourage Industrialization.

5. Managing Agents: - There were just a handful of people who were

known to be having managerial skills. On common basis, these agents would

lend their skills to some top industries. Industrialists could not manage their

own units. They were always at the mercy of the managing agents who filled

their pockets with big chunks of the companies’ profits and took full

advantage of Indian industrialists till the managing agency system was

abolished in 1970.

6. Joint Family System: - Younger members of the family always depended

on the Head who never gave any kind of independence or encouraged units

other than family business ones. A number of young men were discouraged

from diversifying from family business and doing something new

and different.

7. Religious attitude: - Indians were very religious minded. They gave

more time to religion than to earning material wealth. Religion got priority

over business. Some religions even condemned excess earnings and

indulgence I in comforts. Industrial activity was, therefore, given secondary

consideration by the religious Indians.

8. Mindset: - The mindset of the average Indian was never entrepreneurial.

Our religious literature and epics told us to have patience and to keep on

working without expecting the fruits of labor. This also killed the drive and

desire to get into entrepreneurial activities.

9. Recognition by the society: - In earlier days, the heroes India were the

social reformers and the politicians. Now it is the era of sportsmen, models

and film stars. It is sad that successful or the struggling entrepreneurs have

never been recognized as heroes. Entrepreneurial activity did not get due

importance in the India society.

10. Family Background: - Empirical studies have shown that a good

number of entrepreneurs come from families with industrial backgrounds.

Unfortunately, only a few entrepreneurial communities in India made

entrepreneurial contribution. These communities could also not make

headway in the entrepreneurial field on account of the colonial rule, lack of

infrastructure and other facilities. Entrepreneurship development could only

take place after independence in India.

Entrepreneurship and Economic Development

Economic development means a process of upward change whereby the real

per capita income of a country increases over a period of time.

Entrepreneurs serve as the catalysts in the process of industrialization and

economic growth. Technical progress alone cannot lead to economic

development, unless technological breakthroughs are put to economic use

by entrepreneurs.

The entrepreneur is the key to the creation of new enterprises that energize

the economy and rejuvenate the established enterprises that make up the

economic structure. Entrepreneurs initiate and sustain the process of

economic development in the following ways:

1. Capital formation

2. Improvement in per capita income

3. Generation of employment

4. Balanced regional development

5. Improvement in living standards

6. Economic independence

7. Backward and forward linkages

Entrepreneurship Development Programmes

Entrepreneurship is regarded as one of the important determinants of the industrial growth of the country. The dearth of the entrepreneurial and managerial skill is one of the most common problems being faced by all under developed economies. Entrepreneurship is to promoted to help alleviate the unemployment problem, to overcome the problem of stagnation and to increase the competitiveness and growth of business and industries. Various attempts have been made to promote and develop entrepreneurship. By giving specific assistance to improve the competence of the entrepreneur and his enterprise so as to make him and his entrepreneurial so that more people become entrepreneurs.

In order to meet the global demand and the new challenges thrown to the Indian industry and also to generate employment, entrepreneurship development has to be given a priority. The entrepreneurs should possess required skills, ability to grasp opportunities which offer economic advantages, orientation towards applying knowledge to maximize gains, business skills, and leadership qualities and above all confidence that one can make things happen. In this context a trained entrepreneur has a number of advantages. In order to accelerate the growth of industries generate employment and utilities the national human potential there is a need to channelize the youth and women of the country for useful and productive purpose. There is also a need to motivate the guide the youth to enable them to take a step forward and take up a carrier of self employment and setup a small or micro enterprise as an entrepreneur.

Entrepreneurs are not necessarily born they can be developed through education, training and experience. Development of entrepreneurs means inculcating entrepreneurial skills required for setting up and operating business units.

Entrepreneurial development is an organized and on going process. Its basic purpose is to motivate persons for entrepreneurial career and to make them capable of perceiving and exploiting business opportunities.

An EDP consists of the following phases:

1. Pre-Training Phase: involves

i. Selection of persons with the required potential in terms of knowledge, attitudes and motivation.

ii. Creation of infrastructure for trainingiii. Preparing contents of the training programmeiv. Designing techniques for trainingv. Selection and training of the trainers

vi. Survey of environment

2. Development Phase: training programme is launched in order to carry out the necessary changes in the skills, attitudes and behavior of the participants.

3. Post- Training Phase: this phase involves assessing the effectiveness of the training. Monitoring and follow up will reveal shortcomings in the programme.

Institutions for EDP

1. NIESBUD2. Entrepreneurship Development Institute of India, Ahmedabad3. National Alliance of Young Entrepreneurs (NAYE)4. Indian Investment Centre (IIC)5. Technical Consultancy Organisations (TCOs)6. Commercial Banks

The 9 Personality Types of Entrepreneurs

Starting and growing your own business requires many skills to be successful. Take a look at the business personality types and find out what you need to succeed. Are you Bill Gates, a Visionary, or an Improver like Body Shop founder, Anita Roddick?

Your business personality types are the traits and characteristics of your personality that blend with the needs of the business. If you better understand your business personality, then you can give your company the best part of you. Find others to help your business in areas you aren't prepared to fulfill.

There are 9 key types of personality and understanding each will help you enjoy your business more and provide your company with what it needs to grow. This entrepreneur personality profile is based on the 9-point circle of the Enneagram.

Begin identifying your dominant personality theme and understand how you operate in your business.

The 9 Personality Types of Entrepreneurs

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. Your overarching motto is: morally correct companies will be rewarded working on a noble cause. Improvers have an unwavering ability to run their business with high integrity and ethics.

Personality Alert: Be aware of your tendency to be a perfectionist and over-critical of employees and customers.

Entrepreneur example: Anita Roddick, Founder of The Body Shop.

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.

Personality Alert: Advisors can become totally focused on the needs of their business and customers that they may ignore their own needs and ultimately burn out.

Entrepreneur example: John W. Nordstrom, Founder Nordstrom.

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.

Personality Alert: Can be too competitive and workaholics.

Entrepreneur example: Donald Trump, CEO of Trump Hotels & Casino Resorts.

4. The Artist: This business personality is the reserved but highly creative type. Often found in businesses demanding creativity such as web design and ad agencies. As an artist type you’ll tend to build your business around the unique talents and creativities you have.

Personality Alert: You may be overly sensitive to your customer’s responses even if the feedback is constructive. Let go the negative self-image.

Entrepreneur example: Scott Adams, Creator of Dilbert.

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 to understand the world around you and will set-up plans to avoid the landmines.

Personality Alert: Visionaries can be too focused on the dream with little focus on reality. Action must proceed vision.

Entrepreneurial example: Bill Gates, Founder of MicroSoft Inc.

6. The Analyst: If you run a business as an Analyst, your company is focus on fixing problems in a systematic way. Often the basis for science, engineering or computer firms, Analyst companies excel at problem solving.

Personality Alert: Be aware of analysis paralysis. Work on trusting others.

Entrepreneurial example: Intel Founder, Gordon Moore.

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 the company has a get it done attitude in a fun playful manner.

Personality Alert: You may over commit your teams and act to impulsively. Balance your impulsiveness with business planning.

Entrepreneurial example: Malcolm Forbes, Publisher, Forbes Magazine.

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.

Personality Alert: Over promising and using force full tactics to get your way will not work long term. To be successful, trust your leadership skills to help others find their way.

Entrepreneurial example: Jack Welch, CEO GE.

9. The Healer: If you are a Healer, you provide nurturing and harmony to your business. You have an uncanny ability to survive and persist with an inner calm.

Personality Alert: Because of your caring, healing attitude toward your business, you may avoid outside realities and use wishful thinking. Use scenario planning to prepare for turmoil.

Entrepreneurial example: Ben Cohen, Co-Founder Of Ben & Jerry’s Ice Cream.

Each business personality type can succeed in the business environment if you stay true to your character. Knowing firmly what your strong traits are can act as a compass for your small business. If you are building a team, this insight is invaluable. For the solo business owners, understand that you may need outside help to balance your business personality.

Types of Entrepreneurs

Classification on the basis of:• Type of business• Use of Technology•Motivation•Growth

• Stages in Development•Others

1. Type of business

Business entrepreneur: Convert ideas into reality; deal with bothmanufacturing and trading aspect of business (Small trading andmanufacturing business)

Trading entrepreneur: Undertakes trading activities; concerned with

marketing (Domestic and international level)

Industrial entrepreneur: Undertakes manufacturing activities only; new

product development etc (textile, electronics, etc)

Corporate entrepreneur: Interested in management part of organisation;

exceptional organising, coordinating skills to manage a corporate

undertaking (Ambani, Tata families)

Agricultural entrepreneur: Production and marketing of agricultural inputs

and outputs (Dairy, horticulture, forestry)

2. Use of Technology

Technical entrepreneur: Production oriented, possesses innovative skills in

manufacturing, quality control etc.

Non technical entrepreneur: Develops marketing, distribution facilities

and strategies Professional entrepreneur: Uses the proceeds from sale of one business to

start another one. Brimming with ideas to start new ventures

3. Motivation

Pure entrepreneur: Psychological and economic rewards motivate him

Induced entrepreneur: Incentives, concessions, benefits offered by

government for entrepreneurs motivates him

Motivated entrepreneur: Sense of achievement and fulfillment motivate

him

Spontaneous entrepreneur: Born entrepreneurs with inborn traits of

confidence, vision, initiative

4. Growth

Growth entrepreneur: One who enters a sector with a high growth rate; is

a positive thinker

Super growth entrepreneur: One who enters a business and shows a

quick, steep and upward growth curve

5. Stages in Development

First generation entrepreneur: Innovator, risk taker, among the firsts in

family to enter business

Modern entrepreneur: Who considers feasibility of business, which can

adapt to change and dynamic market

Classical entrepreneur: One who gives more importance to consistent returns than to growth; concerned about customer and marketing needs

6. Others Area- Rural and Urban entrepreneur Gender/Age- Men and Women entrepreneur Scale- Small and Large scale entrepreneur

Also refer to ppt of types of entrepreneurs,

Women Entrepreneur

Till the turn of the century, man has enjoyed a dominant position. But change in position technological innovation and modern way of thinking can reduce the disparity between man and women, and bring about equality and equity between them, the need of the hour in women empowerment both through provision of employment and enterprise creation. Typologically, the former leader to endogenous empowerment and the latter give rise to exogenous empowerment.

Women entreprenurer's have been making a significant impact in all segments of the economy in Canada, Great Britain, Germany Australia and US.

The areas choosen by women are retail trade, restaurants, hotels, education, cultural,  cleaning insurance and manufacturing.

It is the group of women or single women running an enterprise or company in order to earn profit. Now days because of   women empowerment women are stepping-stone into the industries and are taking the place of men. Now a day's women's are running several business like beauty parlours, switching shops, boutiques, etc.

Women entrepreneurs may be defined as a woman or a group of women who initiate, organize and run a business enterprise. In terms of Schunpeterian concept of innovative entrepreneurs, women who innovate, initiate or adopt a business activity are called business entrepreneur.

The Government of India has defined women entrepreneurs based on women participation in equity and employment of a business enterprise. Accordingly, a woman entrepreneur is defined as an enterprise owned and controlled by a woman having a minimum financial interest of 51% of the capital and giving at least 51% of the employment generated in the enterprise to a woman.

They have made their marks in business because of the following reasons:

They want to improve their mettle in innovation and competitive jobs. They want the change to control the balance between their families and

responsibility and their business levels. They want new challenges and opportunities for self fulfillment.

Role of women as an Entrepreneur's:

1) Imaginative: It refers to the imaginative approach or original ideas with competitive market. Well-planned approach is needed to examine the existing situation and to identify the entrepreneurial opportunities. It further implies that women entrepreneur's have association with knowledgeable people and contracting the right organization offering support and services.

2) Attribute to work hard: Enterprising women have further ability to work hard. The imaginative ideas have to come to a fair play. Hard work is needed to build up an enterprise..

3) Persistence: Women entrepreneurs must have an intention to fulfill their dreams. They have to make a dream transferred into an idea enterprise; Studies show that successful women work hard.

4) Ability and desire to take risk the desire refers to the willingness to take risk and ability to the proficiency in planning making forecast estimates and calculations.

5) Profit earning capacity:  she should have a capacity to get maximum return out of invested capital.

A Woman entrepreneur has also to perform all the functions involved in establishing an enterprise.These include idea generation, and screening, determination of objectives, project preparation, product analysis, determination of forms of business organization, completion of formal activities,  raising funds,  procuring men machine materials and operations of business.

Fredrick Harbiscon, has enumerated the following five functions of a women entrepreneur's :

Exploration of the prospects of starting a new business enterprise. Undertaking a risk and handling of economic uncertainties involved in business. Introduction of innovations, imitations of innovations. Co ordination, administration and control. Supervision and leadership.

In nutshell, women entrepreneur are those women who think of a business enterprise,  initiate it organize and combine the factors of production, operate the enterprise,  undertake risk  and handle economic uncertainties involved in running a business enterprise.

Problems faced by Women

• Lack of need achievement, economic independence and autonomy.• Absence of risk-bearing capacity• Lack of education skills• Male dominating society• Lack of business information and experience• Heavily involved in family problems• Social stigma attached to certain vocations

Entrepreneurship Development Programmes

Entrepreneurship is regarded as one of the important determinants of the industrial growth of the country. The dearth of the entrepreneurial and managerial skill is one of the most common problems being faced by all under developed economies. Entrepreneurship is to promoted to help alleviate the unemployment problem, to overcome the problem of stagnation and to increase the competitiveness and growth of business and  industries. Various attempts have been made to promote and develop entrepreneurship. By giving specific assistance to improve the competence of the entrepreneur and his enterprise so as to make him and his entrepreneurial so that more people become entrepreneurs.

In order to meet the global demand and the new challenges thrown to the Indian industry and also to generate employment, entrepreneurship development has to be given a priority. The entrepreneurs should possess required skills, ability to grasp opportunities which offer economic advantages, orientation towards applying knowledge to maximize gains, business skills, and leadership qualities and above all confidence that one can make things happen. In this context a trained entrepreneur has a number of advantages. In order to accelerate the growth of industries generate employment and utilities the national human potential there is a need to channelise the youth and women of the country for useful and productive purpose. There is also a need to motivate the guide the youth to enable them to take a step forward and take up a carrier of self employment and setup a small or micro enterprise as an entrepreneur.

Traits / Qualities of an Entrepreneur or Entrepreneurial Competencies

An entrepreneur has to have certain cultivated and inherent qualities in him or her in order to make a success of his or her venture. Not any person can be a successful businessman or woman. Hard work and determination to win have made many successful business people to reach their aspired goals.

Personal competencies of a successful businessman or woman

Leadership qualities – A businessman or woman must be able to lead his or her staff members as well as other associates. He or she must be able to guide others in carrying out business and make a success of it.

Decisive – A successful businessman or woman has to be very decisive. He or she has to take many decisions sometimes on the spur of the moment. Any vacillation in decisions could affect their business.

They have to be very firm in their decisions. Also, while taking decisions they must not get influenced by others. They should be able to take decisions independently.

Risk-taking – Business involves many risks, which a business person must not hesitate to take. Lot of financial involvement is there and obviously one has to be careful with investments. Yet risks have to be taken in money matters as well. Sometimes a businessman may lose out on his or her venture, but when he or she make a success of it then he or she has much to gain, both financially and from a personal satisfaction point of view.

Confident – Achieving success in business requires confidence. A businessman or businesswoman has to be sure of him or herself about reaching the set targets of success. Diffidence does not help. Self-image is enhanced, when one is confident.

Willingness – A businessman or woman must be willing to undertake any matters concerning their business venture. He or she must not hesitate for personal or other reasons. Willingness to extend a helping hand is very essential.

Enterprising – One has to be enterprising in order to achieve significant results in business. He or she has to have the zeal to do things. A laid- back approach will not help.

Innovative – New ideas help make a business venture successful. A successful businessman or woman must be innovative and always strive for something better. New concepts must be formulated and new ways of doing business must be thought of.

A businessman or woman has to very competent to achieve scale the ladder of success. Certain attributes are essential for him or her to establish their business on sound footing.

Competence refers to a person’s underlying characterestics leading to his / her superior performance. It is a good combination of various qualities and traits required to perform the job effectively. Some people believe that entrepreneurs are born not made. Business family background is essential to success for entrepreneurs. Other people believe that entrepreneurs are made not born. According to some people, persons with proper knowledge and skills acquired through education and experience can become successful entrepreneurs. In order to resolve the controversy on what makes successful entrepreneurs, the Entrepreneurship Development Institute of India (EDI) conducted a research and identified the following traits of an entrepreneur:

14. Initiation15. Watching for opportunities (vision and foresightedness)

16. Persistence17. Information seeker18. Quality conscious19. Commitment to work20. Efficiency lover21. Proper planning22. Self confidence23. Assertiveness24. Persuation25. Effective monitoring26. Concern for employees

According to McClelland, three qualities are:

4. Endowed with an unusual creativeness.5. Enriched by high propensity6. Strong need for achievement.

Nature and Characterestics of Entrepreneurship

9. Economic Activity10. Creative activity11. Purposeful activity12. A function of risk bearing13. An organizing function14. Gap filling function15. Dynamic process16. Innovative function

“Peter Drucker defines an entrepreneur as one who always searches for change, responds to it and exploits it as an opportunity. Entrepreneurs innovate.”

Functions of Entrepreneur

15. Innovation

16. Risk Taking

17. Organisation Building

18. Perceiving Market Opportunities

19. Gaining Command over scarce resources

20. Purchasing inputs

21. Marketing products

22. Dealing with Bureaucrats

23. Managing HR within the firm

24. Managing customer and supplier relations

25. Managing finance

26. Acquiring and overseeing assembly of the factory

27. Upgrading process and product

28. Introducing new production techniques and products

FACTORS AFFECTING ENTREPRENEURIAL GROWTH

Entrepreneurship does not emerge and grow spontaneously. Rather, it is

dependent upon several economic, social, political and psychological factors.

These environmental factors may have both positive and negative influences

on the growth of entrepreneurship.

3. ECONOMIC FACTORS

a)  Adequate overhead facilities: Profitable innovations require basic

facilities like transportation, communication power supply etc. They

reduce cost of production and increase profit.

b)  Capital: Inventions are capital oriented. In less developed countries

most capital equipment have to be imported which involves foreign

exchange which acts as a difficult problem.

c) Great risk: Risk is high in case of less developed countries as there is

lack of reliable

information, markets for goods and services is small etc.

d) Labor: Though there is abundant labor supply there is generally

scarcity of skills at

all levels.

g) Raw Material:

h) Market:

4. SOCIAL FACTORS

A society that is rational in decision making would be favorable for

decision making. Education, research and training is given less

importance in less developed countries therefore there is very little

vertical mobility of labor.

d) Legitimacy of Entrepreneurship

e) Social Mobility

f) Security

3. CULTURAL FACTORS

Religious, social and cultural factors also influence the individual taking upan

entrepreneurial career, in some countries there is religious and culturalbelief

that high profit is unethical. This type of belief inhibits growth of

entrepreneurship.

4. PERSONALITY FACTORS

In less developed countries the entrepreneur is looked upon with suspicion.

Public opinion in the less developed nations sees in the entrepreneur only a

profit maker and exploited.

5. MOTIVAT ION

Motivation is the act of stimulating someone or oneself to get a desired

course of action, to push the right button to get the desired results.

MOTIVATING FACTORS

1. Education background

2. Occupational experience

3. Family background

4. Desire to work independently in manufacturing line

5.Assistance from financial institution

6.Availability of technology

7. Other factor

6. Governmental Influence:

FACTORS INFLUENCING ENTERPRENURESHIP

The emergence of entrepreneurs in a society depends upon closely

interlinked social, religious, cultural, psychological, and political and

economic factors.

FAMILY TRADITION: Individuals who for some reason, initiate, establish

maintain and expand new enterprises generate entrepreneurship in society.

It is observed that entrepreneurs grow in the tradition of their families and

society and accept certain values and norms from these sources.

RELIGIOUS, SOCIAL AND CULTURAL FACTORS: Religious, social and cultural

factors also influence the individual taking up an entrepreneurial career, in

some countries there is religious and cultural belief that high profit is

unethical. This type of belief inhibits growth of entrepreneurship.

PSYCHOLOGICAL FACTORS: The psychological factors like high need for

achievement, determination of unique accomplishment, self confidence,

creativity, vision, leadership etc, promote entrepreneurship among

individuals. On the other hand psychological factors like security, conformity

and compliance, need for affiliation etc restrict promotion of

entrepreneurship.

POLITICAL FACTORS: The political and also the political stability of country

influence the growth of entrepreneurship. The political system, which

promotes free market, individual freedom and private enterprise, will

promote entrepreneurship.

ECONOMIC POLICIES: The economic policies of the government and other

financial institutions and the opportunities available in a society as a result of

such policies play a crucial role in exerting direct influence on

entrepreneurship.

In view of the haphazard development of economic zones, Government is encouraging the entrepreneurs to establish their business in backward and tribal areas. This is primarily to arrest the migration of people from the villages to cities and to create employment opportunities locally. Government is promoting such development by giving incentives like tax holidays (both sales and income), subsidized power tariff, raw materials, transportation cost etc.

CAUSES OF SLOW GROWTH OF ENTREPRENEURSHIP IN INDIA

Entrepreneurship developed only in the beginning of the 19th century and

though the base for industrialization had been laid a century ago. The

following be the main reasons, which could be responsible for lack of

initiative and entrepreneurial spirit among the Indians.

1. Caste System: - This decided occupation for members from each caste.

The altitudes were restrictive and therefore there were no changes of

accumulating wealth and promoting production.

2. Agriculture: - Agriculture was the main occupation. Farmers and

cultivators were always in the clutches of the money lenders. The zamindars,

nawabs and rajahs exploited the laborers. They spent money on enjoyment

and luxury and never risked money in industry. Banking and commercial

system was also absent so even if there were savings, they could not be

utilized for productive use.

3. Educational System: - Talented young men were prepared to take white

collared jobs or join government or professional services. Many were

attracted towards politics. The result was that very few young men got

attracted towards becoming efficient, industrialists, technicians,

managers etc.

4. Colonial Rules: - The British rulers adopted discriminatory policy Rich

Indian businessman had special connections with foreign rulers and both

satisfied their self interests. Even the few insurance and banking services

catered to the needs of some rich Indian businessman, Britishers in India did

also not encourage Industrialization.

5. Managing Agents: - There were just a handful of people who were

known to be having managerial skills. On common basis, these agents would

lend their skills to some top industries. Industrialists could not manage their

own units. They were always at the mercy of the managing agents who filled

their pockets with big chunks of the companies’ profits and took full

advantage of Indian industrialists till the managing agency system was

abolished in 1970.

6. Joint Family System: - Younger members of the family always depended

on the Head who never gave any kind of independence or encouraged units

other than family business ones. A number of young men were discouraged

from diversifying from family business and doing something new

and different.

7. Religious attitude: - Indians were very religious minded. They gave

more time to religion than to earning material wealth. Religion got priority

over business. Some religions even condemned excess earnings and

indulgence I in comforts. Industrial activity was, therefore, given secondary

consideration by the religious Indians.

8. Mindset: - The mindset of the average Indian was never entrepreneurial.

Our religious literature and epics told us to have patience and to keep on

working without expecting the fruits of labor. This also killed the drive and

desire to get into entrepreneurial activities.

9. Recognition by the society: - In earlier days, the heroes India were the

social reformers and the politicians. Now it is the era of sportsmen, models

and film stars. It is sad that successful or the struggling entrepreneurs have

never been recognized as heroes. Entrepreneurial activity did not get due

importance in the India society.

10. Family Background: - Empirical studies have shown that a good

number of entrepreneurs come from families with industrial backgrounds.

Unfortunately, only a few entrepreneurial communities in India made

entrepreneurial contribution. These communities could also not make

headway in the entrepreneurial field on account of the colonial rule, lack of

infrastructure and other facilities. Entrepreneurship development could only

take place after independence in India.

Entrepreneurship and Economic Development

Economic development means a process of upward change whereby the real

per capita income of a country increases over a period of time.

Entrepreneurs serve as the catalysts in the process of industrialization and

economic growth. Technical progress alone cannot lead to economic

development, unless technological breakthroughs are put to economic use

by entrepreneurs.

The entrepreneur is the key to the creation of new enterprises that energize

the economy and rejuvenate the established enterprises that make up the

economic structure. Entrepreneurs initiate and sustain the process of

economic development in the following ways:

8. Capital formation

9. Improvement in per capita income

10.Generation of employment

11.Balanced regional development

12.Improvement in living standards

13.Economic independence

14.Backward and forward linkages

10 Qualities of a Successful EntrepreneurSuccessful businesspeople have many traits in common with one another. They are confident and optimistic. They are disciplined self starters. They are open to any new ideas which cross their path. Here are ten traits of the successful entrepreneur.

1. Disciplined

These individuals are focused on making their businesses work, and eliminate any hindrances or distractions to their goals. They have overarching strategies and outline the tactics to accomplish them. Successful entrepreneurs are disciplined enough to take steps every day toward the achievement of their objectives.

2. Confidence

The entrepreneur does not ask questions about whether they can succeed or whether they are worthy of success. They are confident with the knowledge that they will make their businesses succeed. They exude that confidence in everything they do.

3. Open Minded

Entrepreneurs realize that every event and situation is a business opportunity. Ideas are constantly being generated about workflows and efficiency, people skills and potential new

businesses. They have the ability to look at everything around them and focus it toward their goals.

4. Self Starter

Entrepreneurs know that if something needs to be done, they should start it themselves. They set the parameters and make sure that projects follow that path. They are proactive, not waiting for someone to give them permission.

5. Competitive

Many companies are formed because an entrepreneur knows that they can do a job better than another. They need to win at the sports they play and need to win at the businesses that they create. An entrepreneur will highlight their own company’s track record of success.

6. Creativity

One facet of creativity is being able to make connections between seemingly unrelated events or situations. Entrepreneurs often come up with solutions which are the synthesis of other items. They will repurpose products to market them to new industries.

7. Determination

Entrepreneurs are not thwarted by their defeats. They look at defeat as an opportunity for success. They are determined to make all of their endeavors succeed, so will try and try again until it does. Successful entrepreneurs do not believe that something cannot be done.

8. Strong people skills

The entrepreneur has strong communication skills to sell the product and motivate employees. Most successful entrepreneurs know how to motivate their employees so the business grows overall. They are very good at highlighting the benefits of any situation and coaching others to their success.

9. Strong work ethic

The successful entrepreneur will often be the first person to arrive at the office and the last one to leave. They will come in on their days off to make sure that an outcome meets their expectations. Their mind is constantly on their work, whether they are in or out of the workplace.

10. Passion

Passion is the most important trait of the successful entrepreneur. They genuinely love their work. They are willing to put in those extra hours to make the business succeed because there is a joy their business gives which goes beyond the money. The successful entrepreneur will always be reading and researching ways to make the business better.

Successful entrepreneurs want to see what the view is like at the top of the business mountain. Once they see it, they want to go further. They know how to talk to their employees, and their businesses soar as a result.

Do you have what it takes to be a good entrepreneur? Is it something that you could learn or rather something that is innate?

Personally I think it is both. There are many people nowadays that like to call themselves entrepreneurs today but are they really one. Indeed there are various characteristics that define an entrepreneur and in this article we will have a look at 5 qualities of a good entrepreneur. Note that this is not given into any particular order.

Perseverance

Whatever business you might be setting up, there are times where you will face problems. It is moment like this that you will need to hold on and persevere. You will have to believe in yourself and your products and services in order to succeed.

Interpersonal Skills

Business is all about dealing with people and you will need to be good at communicating if you want to succeed. Whether it is with your customers, suppliers or employees it is important that you learn how to communicate in an effective way to make sure that your business is run as smoothly as possible.

Willingness to Take Calculated Risks

A good entrepreneur should be ready to take calculated risk if he or she wants to succeed. Sometimes in business you will need to trust your gut feelings and walk on water. However you will need to distinguish between foolishness and calculated risk. Make sure that you do your homework and ensure that your business plan is feasible before getting started. This may prevent you from having some unpleasant surprise in the future.

Motivation

It is important that an entrepreneur remain motivated at all time. This is indeed more important when you are pioneering a business or activity as you will have no one else with you. You should not let yourself down and make sure that you keep going forward.

Time Management

This is another important quality that you will need to have as a good entrepreneur. Time management will allow you to organize yourself and make sure that you get all your work done effectively. It is very easy to give in to procrastination when working alone and you will have to find ways to deal with this. May be you can create a to-do list to help you manage your workload.

Functions of an Entrepreneur In Process of Production

Entrepreneur is a central point to process of production and all other factors like capital, land, labour cluster around him. He performs following functions.

1. Entrepreneur initiates the business activity

He has to start the business activity by preparing a proper plan. The plan should deal with the type of goods or service to be produced, sources of raw material and credit, type of technology to be used, the markets where the products can be sold, etc. The plan should be detailed one covering all the aspects of the business.

2. Entrepreneur organises the factors of production

The entrepreneur has to collect all the other factors of production and combine them in the right proportion.

3. Entrepreneur is a decision maker

Business involves variety of decisions to be taken. The entrepreneur has to decide about the nature of product, technology, price policy, advertisement strategy, employment of labour, etc. A proper strategy has to be adopted by him to take the right decision.

4. Entrepreneur co-ordinate things effectively

A business firm consists of a number of departments. He has to co-ordinate various units effectively by having proper communication channels and supervision.

5. Entrepreneur tries to introduce innovations

According to Prof. Schumpeter, the true function of an entrepreneur is introducing innovations. Innovations imply introduction of a new product, discovering a new product, introduction of a new technology or new method of production etc. Innovation involves risk. The entrepreneur may get profit or may incur loss. Hence, few entrepreneurs try to introduce innovations. By innovating, they contribute to technological process of the economy and accelerate the growth and development.

6. Entrepreneur handles budget of his business

The entire budgeting process is the responsibility of the entrepreneur. He has to mobilize resources for the implementation of the business plan. All other factors have to be paid contractual payments. He gets the residual income, he has to make provision for future

investments for expansion and diversification. He has to maintain a balance between income and expenditure.

7. Entrepreneur bears risk and uncertainty

This function distinguishes the entrepreneur from other functions while other factors need not bother about risk and uncertainties, entrepreneur has to bear risks and uncertainties while risks are insurable, uncertainties cannot be insured. E.g. risk like fire, theft, etc. can be insured. Uncertainties like changes in tastes, fashions, cannot be insured. While facing these uncertainties entrepreneur may get profit or may incur loss. Thus, risk and uncertainty bearing is one of the unique function of an entrepreneur.

Thus the entrepreneur is the pivot around which all the activities of the firm revolve around. He is the one who gives direction to the business firms & ensures its effective operation.

What are the Features of Entrepreneurship

Features of Entrepreneurship

The entrepreneur as an organizer of the process of production is the fore-runner of economic development of a country.

1. Scare human resource

Entrepreneurship is a very scarce human factor as it involves specific talent, organizational capacity, innovative sprit and boldness to bear risk which is not found in every person. In developing countries like India lack of entrepreneurship is a major impediment to development.

2. Heterogeneous factor

Entrepreneurship is a heterogeneous factor of production because efficiency, talents, organizing skills, ability to bear risk, foresights and innovating capacities, etc. vary from entrepreneur to entrepreneur. The nature of enterprise varies with various forms of business organizations like sole trading, partnership, co-operatives, Joint Stock Company and public undertakings. In a small business, the same person may work as an entrepreneur, manager and capitalist.

3. Indispensable factor

In modern business entrepreneur is a very important factor of production as he organizes production of goods & services by coordinating the other factors in an optimum way. He is an organiser & owner of the firm. Production is impossible in his absence.

4. Intangible factor

Entrepreneurship is an abstract phenomenon. It is intangible. Entrepreneurial efforts cannot be measured in quantitative terms while we can measure in terms of hours of work and number of days. We can calculate the number of individual workers and their contribution to the firm but it is not possible to measure entrepreneurship as the firm itself is the enterprise.

5. Highly mobile

Of all factors entrepreneur possess a higher degree of mobility as he can easily move from one industry to another or from one region to another. An entrepreneur's ability to move from one industry to another depends upon his knowledge, experience and specialization.

6. Cannot be Bought & Sold

Land labour and capital can be bought and sold in factor markets but it is not possible to deal with entrepreneurs in a factor market. Since enterprise is an intangible factor, it cannot be bought and sold. Hence, like land, labour and capital market there is no entrepreneurial market where entrepreneurship can be bought and sold. Transaction is not possible in case of enterprise.

We cannot derive the demand and supply curves in case of entrepreneur. Hence, the Demand and Supply Theory of value cannot be applied to the factor enterprise or organization to determine its price.

7. Residual reward

Entrepreneurship is a reward in terms of profit which is a residual reward, i.e. an income which is left after meeting all business expenses from the total sales revenue.

The 9 Personality Types of Entrepreneurs

Starting and growing your own business requires many skills to be successful. Take a look at the business personality types and find out what you need to succeed. Are you Bill Gates, a Visionary, or an Improver like Body Shop founder, Anita Roddick?

Your business personality types are the traits and characteristics of your personality that blend with the needs of the business. If you better understand your business personality, then you can give your company the best part of you. Find others to help your business in areas you aren't prepared to fulfill.

There are 9 key types of personality and understanding each will help you enjoy your business more and provide your company with what it needs to grow. This entrepreneur personality profile is based on the 9-point circle of the Enneagram.

Begin identifying your dominant personality theme and understand how you operate in your business.

The 9 Personality Types of Entrepreneurs

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. Your overarching motto is: morally correct companies will be rewarded working on a noble cause. Improvers have an unwavering ability to run their business with high integrity and ethics.

Personality Alert: Be aware of your tendency to be a perfectionist and over-critical of employees and customers.

Entrepreneur example: Anita Roddick, Founder of The Body Shop.

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.

Personality Alert: Advisors can become totally focused on the needs of their business and customers that they may ignore their own needs and ultimately burn out.

Entrepreneur example: John W. Nordstrom, Founder Nordstrom.

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.

Personality Alert: Can be too competitive and workaholics.

Entrepreneur example: Donald Trump, CEO of Trump Hotels & Casino Resorts.

4. The Artist: This business personality is the reserved but highly creative type. Often found in businesses demanding creativity such as web design and ad agencies. As an artist type you’ll tend to build your business around the unique talents and creativities you have.

Personality Alert: You may be overly sensitive to your customer’s responses even if the feedback is constructive. Let go the negative self-image.

Entrepreneur example: Scott Adams, Creator of Dilbert.

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 to understand the world around you and will set-up plans to avoid the landmines.

Personality Alert: Visionaries can be too focused on the dream with little focus on reality. Action must proceed vision.

Entrepreneurial example: Bill Gates, Founder of MicroSoft Inc.

6. The Analyst: If you run a business as an Analyst, your company is focus on fixing problems in a systematic way. Often the basis for science, engineering or computer firms, Analyst companies excel at problem solving.

Personality Alert: Be aware of analysis paralysis. Work on trusting others.

Entrepreneurial example: Intel Founder, Gordon Moore.

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 the company has a get it done attitude in a fun playful manner.

Personality Alert: You may over commit your teams and act to impulsively. Balance your impulsiveness with business planning.

Entrepreneurial example: Malcolm Forbes, Publisher, Forbes Magazine.

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.

Personality Alert: Over promising and using force full tactics to get your way will not work long term. To be successful, trust your leadership skills to help others find their way.

Entrepreneurial example: Jack Welch, CEO GE.

9. The Healer: If you are a Healer, you provide nurturing and harmony to your business. You have an uncanny ability to survive and persist with an inner calm.

Personality Alert: Because of your caring, healing attitude toward your business, you may avoid outside realities and use wishful thinking. Use scenario planning to prepare for turmoil.

Entrepreneurial example: Ben Cohen, Co-Founder Of Ben & Jerry’s Ice Cream.

Each business personality type can succeed in the business environment if you stay true to your character. Knowing firmly what your strong traits are can act as a compass for your small business. If you are building a team, this insight is invaluable. For the solo business owners, understand that you may need outside help to balance your business personality.

Types of Entrepreneurs

Classification on the basis of:• Type of business• Use of Technology

•Motivation•Growth• Stages in Development•Others

7. Type of business

Business entrepreneur: Convert ideas into reality; deal with bothmanufacturing and trading aspect of business (Small trading andmanufacturing business)

Trading entrepreneur: Undertakes trading activities; concerned with

marketing (Domestic and international level)

Industrial entrepreneur: Undertakes manufacturing activities only; new

product development etc (textile, electronics, etc)

Corporate entrepreneur: Interested in management part of organisation;

exceptional organising, coordinating skills to manage a corporate

undertaking (Ambani, Tata families)

Agricultural entrepreneur: Production and marketing of agricultural inputs

and outputs (Dairy, horticulture, forestry)

8. Use of Technology

Technical entrepreneur: Production oriented, possesses innovative skills in

manufacturing, quality control etc.

Non technical entrepreneur: Develops marketing, distribution facilities

and strategies Professional entrepreneur: Uses the proceeds from sale of one business to

start another one. Brimming with ideas to start new ventures

9. Motivation

Pure entrepreneur: Psychological and economic rewards motivate him

Induced entrepreneur: Incentives, concessions, benefits offered by

government for entrepreneurs motivates him

Motivated entrepreneur: Sense of achievement and fulfillment motivate

him

Spontaneous entrepreneur: Born entrepreneurs with inborn traits of

confidence, vision, initiative

10.Growth

Growth entrepreneur: One who enters a sector with a high growth rate; is

a positive thinker

Super growth entrepreneur: One who enters a business and shows a

quick, steep and upward growth curve

11.Stages in Development

First generation entrepreneur: Innovator, risk taker, among the firsts in

family to enter business

Modern entrepreneur: Who considers feasibility of business, which can

adapt to change and dynamic market

Classical entrepreneur: One who gives more importance to consistent returns than to growth; concerned about customer and marketing needs

12.Others Area- Rural and Urban entrepreneur Gender/Age- Men and Women entrepreneur Scale- Small and Large scale entrepreneur

Also refer to ppt of types of entrepreneurs,

Women Entrepreneur

Till the turn of the century, man has enjoyed a dominant position. But change in position technological innovation and modern way of thinking can reduce the disparity between man and women, and bring about equality and equity between them, the need of the hour in women empowerment both through provision of employment and enterprise creation. Typologically, the former leader to endogenous empowerment and the latter give rise to exogenous empowerment.

Women entreprenurer's have been making a significant impact in all segments of the economy in Canada, Great Britain, Germany Australia and US.

The areas choosen by women are retail trade,  restaurants, hotels, education, cultural,  cleaning insurance and manufacturing.

It is the group of women or single women running an enterprise or company in order to earn profit. Now days because of   women empowerment women are stepping-stone into the industries and are taking the place of men. Now a day's women's are running several business like beauty parlours, switching shops, boutiques, etc.

Women entrepreneurs may be defined as a woman or a group of women who initiate, organize and run a business enterprise. In terms of Schunpeterian concept of innovative entrepreneurs, women who innovate, initiate or adopt a business activity are called business entrepreneur.

The Government of India has defined women entrepreneurs based on women participation in equity and employment of a business enterprise. Accordingly, a woman entrepreneur is defined as an enterprise owned and controlled by a woman having a minimum financial interest of 51% of the capital and giving at least 51% of the employment generated in the enterprise to a woman.

They have made there marks in business because of the following reasons:

They want to improve their mettle in innovation and competitive jobs. They want the change to control the balance between their families and

responsibility and their business levels. They want new challenges and opportunities for self fulfillment.

Role of women as an Entrepreneur's:

1) Imaginative: It refers to the imaginative approach or original ideas with competitive market. Well-planned approach is needed to examine the existing situation and to identify the entrepreneurial opportunities. It further implies that women entrepreneur's have association with knowledgeable people and contracting the right organization offering support and services.

2) Attribute to work hard: Enterprising women have further ability to work hard. The imaginative ideas have to come to a fair play. Hard work is needed to build up an enterprise..

3) Persistence: Women entrepreneurs must have an intention to fulfill their dreams. They have to make a dream transferred into an idea enterprise; Studies show that successful

women work hard.

4) Ability and desire to take risk the desire refers to the willingness to take risk and ability to the proficiency in planning making forecast estimates and calculations.

5) Profit earning capacity:  she should have a capacity to get maximum return out of invested capital.

A Woman entrepreneur has also to perform all the functions involved in establishing an enterprise.These include idea generation, and screening, determination of objectives, project preparation, product analysis, determination of forms of business organization, completion of formal activities,  raising funds,  procuring men machine materials and operations of business.

Fredrick Harbiscon, has enumerated the following five functions  of a women entrepreneur's :

Exploration of the prospects of starting a new business enterprise. Undertaking a risk and handling of economic uncertainties involved in business. Introduction of innovations, imitations of innovations. Co ordination, administration and control. Supervision and leadership.

In nutshell, women entrepreneur are those women who think of a business enterprise,  initiate it organize and combine the factors of production, operate the enterprise,  undertake risk  and handle economic uncertainties involved in running a business enterprise.