Entrepreneur 1

Definition of Entrepreneur
To an economist an Entrepreneur:- Is one who brings

resources, labour, materials, and other assets into
combinations that make their value greater than before, and
also one who introduces changes, innovations, and a new
order.
To Psychologist an Entrepreneur:- Is such a person

typically driven by certain forces – the need to obtain or attain
something, to experiment, to accomplish.
To Businessman, an Entrepreneur appears as a threat, an

aggressive competitor, whereas for another businessman the
same entrepreneur may be friend, a source of supply, a
customer, or someone who creates wealth for others, as well
as finds better ways to utilize resources, reduces, wastes and
produce jobs others are glad to get.
Definition of Entrepreneurship
The process of creating something new with value
by devoting the necessary time and effort,
assuming the accompanying financial, and
social risks and receiving the resulting rewards
of monetary and personal satisfaction and
independence
Four Basic aspects
• Creation Process
• Devotion of necessary time and effort
• Assuming the necessary risk
• Reward for being Entrepreneur
Entrepreneurial Decision
• Deciding to become an entrepreneur by

leaving present activity.
• The decision to leave a career and start new

business.
• The decision to start business in areas that

are familiar or new.
Types of Start- Ups
The Entrepreneurial Decision process
results in to the following type of start-ups
1. A life style firm
2. Foundation Company
3. The high Potential Venture.
A life style firm
• A small Venture that supports the owners
and usually achieves only modest growth
due to the nature of the business, the
objectives of the entrepreneur and the
limited money devoted to research and
development.
Foundation Company
• This type of company is created from
research and development and lays the
foundation for a new business area.This
type of firm can grow in 5 to 10 years
from 40-400 employees.
The High Potential Venture
• This type of start up is the one that
receives the greatest investment interest
and publicity. While company may start
out like foundation company, its growth is
far more rapid.
Role of Entrepreneur in Economic
Development
• The role of entrepreneur in economic development
involves more than just increasing per capita output and
income, it involves initiating and constituting change in the
structure and society.
• The change is accompanied by growth and increased
output, which allows more wealth to be divided by various
participants.
• Innovation is not only in developing new products for
market but also in stimulating investment interest in new
ventures being created, The new capital created expands
the capacity for growth and resultant new spending
utilizes the new capacity and output.
Skills required in Entrepreneurship
• Technical Skills
• Business Management Skills
• Personal Entrepreneurial Skills

• Technical Skills
writing
oral communication
monitoring environment
technical business management
technology
interpersonal
ability to organize
network building
being a team player
Business Management Skills
planning and goal setting

decision making
human relations
marketing
finance
accounting
management
control
negotiation
managing growth
Personal Entrepreneurial Skills
inner control/discipline
risk taker
innovative
change oriented
persistent/determined
visionary leader
ability to manage change
Characteristics of Entrepreneur
• Family Environment
• Education
• Personal Values
• Work History
• Motivation
• Role Models
• Moral- Support Network
• Professional Support Network
Sources of New Ideas
• Consumers
• Existing products and services
• Distribution Channels
• Government
• Research and development

Methods of Generating Ideas
• Focus Groups
• Brain Storming
• Problem Inventory Analysis
• Creative Problem Solving

Focus Groups:- A moderator leads a group of people
through an open, in depth discussion rather than simply
asking questions to solicit participant response
Brain Storming:- A group method foe obtaining new ideas
and solutions, when using brain storming four rules
should be followed:-
1. No negative comments
2. The wilder the idea , the better
3. The greater the number of idea, the greater the
likelihood of the emergence of useful ideas.
4. Combinations and improvements of ideas are
encouraged.
Problem Inventory Analysis:- A method for obtaining new
ideas and solutions by focusing on problems.
Creative problem solving :- Creativity tends to decline with

age, education, lack of use. It generally declines in
stages. This method helps in generating ideas focusing
on parameters.
Example- Place a mask, a bell and a moveable child’s Toy
on the table in clear view. Let your idea flow freely.

Entrepreneur 1

Uploaded by

Copyright:

Available Formats

Entrepreneur 1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Entrepreneur 1

Uploaded by

Copyright:

Available Formats

Definition of Entrepreneur

To an economist an Entrepreneur:- Is one who brings

To Psychologist an Entrepreneur:- Is such a person

To Businessman, an Entrepreneur appears as a threat, an

• Deciding to become an entrepreneur by

• The decision to leave a career and start new

• The decision to start business in areas that

• Business Management Skills

• Personal Entrepreneurial Skills

planning and goal setting

• Existing products and services

• Research and development

• Problem Inventory Analysis

• Creative Problem Solving

Creative problem solving :- Creativity tends to decline with

You might also like