AN OVERVIEW OF ENTREPRENEURSHIP
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1.1 ENTREPRENEURSHIP AND
ENTREPRENEUR
 Entrepreneurship is a purposeful activity of an individual or
a group of associated individuals, undertaken to initiate,
maintain or enhance profit by production or distribution of
economic goods or services.
 Entrepreneurship is the process of identifying and starting a
new business venture, sourcing and organizing the required
resources, while taking both the risks and rewards
associated with the venture.
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ENTREPRENEURSHIP
 Entrepreneurship is the attempt to create value through
recognition of business opportunity, the management of risk
appropriate to opportunity and through the communicative
and management skills to mobilise human, financial and
material resources necessary to bring a project to completion
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ENTREPRENEURSHIP
• Strategic thinking and risk-taking behavior that
results in the creation of new opportunities for
individuals and/or organizations.
 The word entrepreneur derives from the French words entre,
meaning “between, "and prendre, meaning “to take.” The word was
originally used to describe people who “take on the risk” between
buyers and sellers or who “undertake” a task such as starting a
new venture.
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WHO IS AN
ENTREPRENEUR?
An entrepreneur is a person who takes risks of
setting up his/her own venture For perceived
rewards.
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WHO IS…
He/ she is a person who
initiates the idea,
formulates a plan, organizes resources and puts the
plan into action to achieve his/her Goal.
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1.2 ESSENTIAL QUALITIES FOR
SUCCESSFUL ENTREPRENEURS
1. Entrepreneurs have a strong desire
to be a
winner (need for achievement)
2. Entrepreneurs have a quality of stick- to it
(perseverance)
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ESSENTIAL QUALITIES….
3) Entrepreneurs prefer a middle of The road strategy
when they analyze A risky problem (moderate risk
taker)
4) Entrepreneurs are alert to opportunities. They seize
and convert them to their advantage (ability to
find and explore opportunity)
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ESSENTIAL QUALITIES….
5) Entrepreneurs are unaffected
likes and dislikes
while
problems (analytical ability)
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by personal
approaching
ESSENTIAL QUALITIES….
6) Entrepreneurs consider it
important to know
how are they doing, when they work on a goal
or a task (using feedback)
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ESSENTIAL QUALITIES….
7) Entrepreneurs welcome tackling an unfamiliar
but interesting situation ( facing uncertainty)
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ESSENTIAL QUALITIES….
8) Entrepreneurs
dislike working for others
(independence)
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ESSENTIAL QUALITIES…
9)
Entrepreneurs are flexible in their decisions
( flexibility)
10)
Entrepreneurs think ahead, plan for future and
then work to make it come true (planner)
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ESSENTIAL QUALITIES…
11)Entrepreneurs are comfortable
with people at all levels
(interpersonal skills)
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while
dealing
ESSENTIAL QUALITIES…
12)
Entrepreneurs can influence others (motivator)
13)
Entrepreneurs are capable of working for long hours And
tackling different problems at the same time (stress taker)
14)
Entrepreneurs are aware of themselves (positive self
concept).
15)
Entrepreneurs tend to think ahead (orientation to future)
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1.3:ENTREPRENEUR AND
ENTRAPRENEURS
 Entrepreneurs are people that notice opportunities and
take the initiative to mobilize resources to make new
goods and services.
 Entrapreneur is Someone in an existing organization
who turns new ideas into profitable realities
 Not every employee has the ability to become a
successful intrapreneur.
It takes well-developed
strategic action, teamwork and communication abilities
 Intrapreneurs often become entrepreneurs.
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1.4.Types of Entrepreneurs
1. ACCORDING TO THE TYPE OF BUSINESS
A. Business entrepreneurs:-who start business units
after developing ideas for new products/services.
B. Trading entrepreneurs:-who undertake buying &
selling of goods, but not engage in manufacturing.
C. Corporate entrepreneurs:-who establish and
manage corporate form of organization which have
separate legal existence.
D. Agricultural entrepreneurs: - who undertake
activities like raising and marketing of crops, fertilizers
and other allied activities
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1.4.Types of Entrepreneurs
2. ON THE BASIS OF STAGES OF DEVELOPMENT
First generation entrepreneurs:-who do not
possess any entrepreneurial background. They start
industry by their own innovative skills.
ii. Second generation entrepreneurs:-who inherit the
family business and pass to next generation.
iii. Classical entrepreneurs:-who aims to maximize his
economic returns at a level consistent with the survival
of the unit with or without an element of growth.
i.
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1.4.Types of Entrepreneurs
3. ON THE BASIS OF MOTIVATION
Pure entrepreneurs:-who are basically motivated
to become entrepreneurs for their personal
satisfaction, ego etc.
ii. Induced entrepreneurs: - who are induced to
take up entrepreneurial role by the assistance and
policy of government including incentives, subsidies
etc.
i.
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1.4.Types of Entrepreneurs
4. ON THE BASIS OF TECHNOLOGY
Technical entrepreneurs: - who are task oriented
and ‘craftsman type’.They prefer doing to thinking.
ii. Non-technical entrepreneurs: - who are not
concerned with technical side, but rather with
marketing and promotion.
iii. Professional entrepreneurs: - who start a business
unit, but later sell the running business and start a new
unit later.
i.
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1.4.Types of Entrepreneurs
5. ON THE BASIS OF CAPITAL OWNERSHIP
Private entrepreneurs: - individual or group set
up enterprise, arrange finance, share risk etc.
ii. State entrepreneurs: - means the trading or
industrial venture undertaken by the state or the
government itself.
iii. Joint entrepreneurs: - the combination of private
and government entrepreneurs.
i.
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1.4.Types of Entrepreneurs
6. ON THE BASIS OF GENDER AND AGE
i.
ii.
iii.
iv.
v.
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Man entrepreneurs
Women entrepreneurs
Young entrepreneurs
Old entrepreneurs
Middle-aged entrepreneurs
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1.4.Types of Entrepreneurs
7. ON THE BASIS OF AREA
Urban entrepreneurs
ii. Rural entrepreneurs
i.
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1.4.Types of Entrepreneurs
8. ON THE BASIS OF SCALE
viii. Large scale entrepreneurs
ix. Medium scale entrepreneurs
x. Small scale entrepreneurs
xi. Tiny scale entrepreneurs
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1.4.Types of Entrepreneurs
9. OTHER CLASSIFICATIONS
Spiritual Entrepreneur
ii. Social entrepreneurs
iii. Edupreneurs
i.
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1.5:Entrepreneurial skills
Skills needed by successful entrepreneurs are:
 Communication skills (possessing the ability to read, write and
speaking in an understandable, accurate and professional manner)
 Human relations skills (the ability to build and maintain positive
relationships, working well with others)
 Math skills (knowledge of basic arithmetic and business math skills
such as calculating profit)
 Problem-solving and Decision-making skills (the ability to
assess situation and make good decisions )
 Technical skills (knowledge of computers and how to use them
productively)
 Basic business skills (knowledge and understanding of the
economy and business functions such as marketing and
management)
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1.6 Common Myths About
Entrepreneurs
 There
are many misconceptions about who
entrepreneurs are and what motivates them to launch
firms to develop their ideas. Let's look at the most
common myths and the realities about entrepreneurs:
1. Entrepreneurs are born, not made: This myth is
based on the mistaken belief that some people are
genetically predisposed to be entrepreneurs. The
consensus of many studies is that no one is “born” to
be an entrepreneur; everyone has the potential to
become one.
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1.6 Common Myths…
Entrepreneurs are gamblers: A second myth about
entrepreneurs is that they are gamblers and take big
risks. The truth is, entrepreneurs are usually moderate
risk takers, as are most people.
3) Myth 3: Entrepreneurs are motivated primarily
by money. It is naïve to think that entrepreneurs don’t
seek financial rewards. however, money is rarely the
primary reason entrepreneurs start new firms and
persevere.
 In fact, some entrepreneurs warn that the pursuit of
money can be distracting.
2)
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Common Myths..
4) Myth 4: Entrepreneurs should be young and
energetic. Entrepreneurial activity is fairly evenly
spread out over age ranges.
5) Myth 5: Entrepreneurs love the spotlight.
Indeed, some entrepreneurs are flamboyant;
however, the vast majority of them do not attract
public attention.
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1.7 ROLE OF ENTREPRENEUR IN
ECONOMIC DEVELPOMENT
Entrepreneurship is the dynamic need of a developing nation
and sustains the process of economic development in the
following ways:
Employment generation
National income
Dispersal of Economic power
Balanced Regional development
Reducing unrest and social tension amongst youth
Innovations in enterprises
Improvement in living standards
Economic independence
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END OF CHAPTER ONE
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