The document discusses entrepreneurship, defining key terms like income generation, self-employment, and entrepreneurship. It identifies the four factors of enterprise as land, labor, capital, and entrepreneur. Entrepreneurship is described as taking risks to start a productive venture seeking profit. Internal driving forces within a business and external forces outside its control are discussed. The document also covers classifications of entrepreneurship, barriers to entrepreneurship, and the difference between entrepreneurs and managers.

1. Entrepreneurship
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2. In the context of employment generation....
Three terms .......
1. Income generation,
2. Self-employment
and
3. Entrepreneurship
are often used
interchangeably
-------INITIAL
-------MIDDLE
And
-------FINAL STAGE
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3. Enterprise
4 factors are:
• Land
• Labour
• Capital
• Entrepreneur
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4. Meaning
The capacity and willingness to undertake
conception, organization, and management of a
productive venture with all attendant risks, while
seeking profit as a reward.
In economics, entrepreneurship is regarded as a
factor of production together with land, labor,
natural resources, and capital. Entrepreneurial spirit
is characterized by innovation and risk-taking, and
an essential component of a nation's ability to
succeed in an ever changing and more competitive
global marketplace.
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5. Meaning
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.
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6. Internal and External Factor of
Entrepreneurship
There are two kinds of driving forces;
• Internal driving forces,
• External driving forces.
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7. Internal Driving Forces
Internal driving forces are those kinds of things,
situations, or events that occur inside the business,
and are generally under the control of the company.
Examples might be as follows.
· organization of machinery and equipment,
· technological capacity,
· organizational culture,
· management systems,
· financial management
· employee morale.
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8. External Driving Forces
External driving forces are those kinds of things,
situation, or events that occur outside of the company
and are by and large beyond the control of the
company. Examples of external driving forces might
be, the industry itself, the economy, demographics,
competition, political interference, etc.
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9. Functions of Entrepreneurs
According to Kilby in a developing country even the
imitator entrepreneurs are very important and the
entrepreneurial role encompasses the following:
i. Perception of market opportunities
ii. Gaining command over scarce resources
iii. Purchasing inputs
iv. Marketing the products
v. Dealing with bureaucrats
vi. Managing human relations within the firm
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10. Functions of Entrepreneurs
vii. Managing customer and supplier relations
viii. Managing finance
ix. Managing production
x. Acquiring and overseeing assembly of the factory
xi. Industrial engineering
xii. Upgrading process and product
xiii. Introducing new production techniques and
products
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11. Barriers to Entrepreneurship
• Lack of viable concept
• Lack of market Knowledge
• Lack of technical Skills
• Lack of seed capital
• Lack of business knowhow
• Complacency- lack of motivation
• Social Stigma
• Time presence and distractions
• Legal Constraints and regulations
• Inhibition due to patents
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12. Classification of Entrepreneurship
• According to the types of Business
• According to the use of technology
• According to the motivation
• According to the growth
• According to the stages of development
• According to area
• According to the organization
• According to gender and age
• Unclassified
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13. According to the types of Business
• Business Entrepreneurs
• Trading Entrepreneurs
• Industrial Entrepreneurs
• Corporate Entrepreneurs
• Agricultural Entrepreneurs
• Retail Entrepreneurs
• Service Entrepreneurs
• Re-engineering Entrepreneurs
• Health
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14. According to the use of technology
• Technical Entrepreneurs
• Non- Technical Entrepreneurs
• Professional Entrepreneurs
• Hi-tech Entrepreneurs
• BPO
• KPO
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15. According to the motivation
• Pure Entrepreneurs
• Induced Entrepreneurs
• Motivated Entrepreneurs
• Spontaneous Entrepreneurs
• Forced Entrepreneurs
• Accidental
• Successful Entrepreneurs
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16. According to the growth
• Aspiring Entrepreneurs
• Growth Entrepreneurs
• Lifestyle Entrepreneurs
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17. According to the stages of
development
• First Generation Entrepreneurs
• Modern Entrepreneurs
• Classical Entrepreneurs
• Generation- next Entrepreneurs
• Inherited Entrepreneurs
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18. Causes of Slow Growth
• Unfavorable family background
• Lack of education
• Dual role of women
• Lack of aptitudes and training
• Absence of individualistic spirit
• Influence of cast, sex, custom and family burden
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19. According to area
• Urban Entrepreneurs
• Rural Entrepreneurs
• Global Entrepreneurs
• Local Entrepreneurs
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20. According to Organization
• Individual Entrepreneurs
• Group Entrepreneurs
• Institutional Entrepreneurs
• Private Entrepreneurs
• Public Entrepreneurs
• Government Entrepreneurs
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21. According to Gender and Age
• Men Entrepreneurs
• Women Entrepreneurs
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22. Unclassified
• Professional Entrepreneurs
• Non- Professional Entrepreneurs
• Education Entrepreneurs
• Intrapreneurs
• Ultrapreneurs
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23. Concept of Entrepreneurship
Entrepreneurship is the propensity of mind to take
calculated risks with confidence to achieve a pre-determined
business or industrial objective.
Entrepreneur Entrepreneurship Enterprise
Person
Process of
Action
Object
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24. Phases of Entrepreneurship
Development
• Initial Phase
• Development Phase
• Support Phase
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25. ENTREPRENEUR vs. MANAGER
RELATIONSHIP
An entrepreneur starts a venture then a manager takes over to organize and co-ordinate
continuous production.
The main differences between the two are summed up below:
Entrepreneur Manager
An entrepreneur is involved with the start-up
process
A manager with running the business over a
long period of time
An entrepreneur assumes financial, material
and psychological risks
A manager does not have to bear risks
An entrepreneur is driven by perception
of opportunity
A manager by the resources he
currently possesses
An entrepreneur initiates change A manager follows rules & procedures
An entrepreneur is his own boss A manager is a hired employee
An entrepreneur gets uncertain rewards A manager gets fixed rewards and
salary
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26. SELF ASSESSMENT QUESTIONS
1. Distinguish between wage-employment, income-generation and
entrepreneurship.
2. Discuss the main functions of an entrepreneur.
3. Explain the role of entrepreneurship in economic development.
4. Distinguish between entrepreneurs and managers.
5. ‘Entrepreneurs are born not made.’ Comment.
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