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Entrepreneurship

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Entrepreneurship

  1. 1. Entrepreneurship 1
  2. 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 2
  3. 3. Enterprise 4 factors are: • Land • Labour • Capital • Entrepreneur 3
  4. 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. 4
  5. 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. 5
  6. 6. Internal and External Factor of Entrepreneurship There are two kinds of driving forces; • Internal driving forces, • External driving forces. 6
  7. 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. 7
  8. 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. 8
  9. 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 9
  10. 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 10
  11. 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 11
  12. 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 12
  13. 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 13
  14. 14. According to the use of technology • Technical Entrepreneurs • Non- Technical Entrepreneurs • Professional Entrepreneurs • Hi-tech Entrepreneurs • BPO • KPO 14
  15. 15. According to the motivation • Pure Entrepreneurs • Induced Entrepreneurs • Motivated Entrepreneurs • Spontaneous Entrepreneurs • Forced Entrepreneurs • Accidental • Successful Entrepreneurs 15
  16. 16. According to the growth • Aspiring Entrepreneurs • Growth Entrepreneurs • Lifestyle Entrepreneurs 16
  17. 17. According to the stages of development • First Generation Entrepreneurs • Modern Entrepreneurs • Classical Entrepreneurs • Generation- next Entrepreneurs • Inherited Entrepreneurs 17
  18. 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 18
  19. 19. According to area • Urban Entrepreneurs • Rural Entrepreneurs • Global Entrepreneurs • Local Entrepreneurs 19
  20. 20. According to Organization • Individual Entrepreneurs • Group Entrepreneurs • Institutional Entrepreneurs • Private Entrepreneurs • Public Entrepreneurs • Government Entrepreneurs 20
  21. 21. According to Gender and Age • Men Entrepreneurs • Women Entrepreneurs 21
  22. 22. Unclassified • Professional Entrepreneurs • Non- Professional Entrepreneurs • Education Entrepreneurs • Intrapreneurs • Ultrapreneurs 22
  23. 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 23
  24. 24. Phases of Entrepreneurship Development • Initial Phase • Development Phase • Support Phase 24
  25. 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 25
  26. 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. 26

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