Entrepreneurship - NSTP PDF

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Summary

Concept of EntrepreneurshipEntrepreneurship is the ability and readiness to develop, organize and run a business enterprise, along with any of its uncertainties in order to make a profit. The most prominent example of entrepreneurship is the starting of new businesses.In economics, entrepreneurship ...

Description

Concept of Entrepreneurship Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise, along with any of its uncertainties in order to make a profit. The most prominent example of entrepreneurship is the starting of new businesses. In economics, entrepreneurship connected with land, labor, natural resources and capital can generate a profit. The entrepreneurial vision is defined by discovery and risk-taking and is an indispensable part of a nation’s capacity to succeed in an ever -changing and more competitive global marketplace.

What do you mean by? •

Entrepreneur (oxford dictionary): Person who undertakes an enterprise with chances of profit or loss.

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Enterprise (oxford dictionary): Bold Undertaking.

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Entrepreneur (New Encyclopedia Britannica): An individual who bears the risk of operating business in the face of uncertainty about the future conditions. Common Meaning: one who starts his own, new and small business.

Entrepreneurship: -

It is a philosophy or process through which an entrepreneur seeks innovation and employment.

Entrepreneur Person Entre – enter

Entrepreneurship Process or Philosophy Pre – before

Enterprise Object Neur – Nerve Centre

Entrepreneurship can be described as a creative and innovative response to the environment.

Meaning of Entrepreneur The entrepreneur is defined as someone who has the ability and desire to establish, administer and succeed in a startup venture along with risk entitled to it, to make profits. The best example of entrepreneurship is the starting of a new business venture. The entrepreneurs are often known as a source of new ideas or innovators, and bring new ideas in the market by replacing old with a new invention. It can be classified into small or home business to multinational companies. In economics, the profits that an entrepreneur makes is with a combination of land, natural resources, labor and capital. In a nutshell, anyone who has the will and determination to start a new company and deals with all the risks that go with it can become an Entrepreneur.

Entrepreneurship Theories •

1600: French verb- Entreprendre – to undertake

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1700: Person bearing Risks of Profit in a fixed price contract (Risk)

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1725: Richard Cantillon – Person bearing risks is different from

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1803: J. B. Say – Shifts economic resources out of an area of lower into an area of higher productivity & greater yields (Value Addition)

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1934: Joseph Schumpeter – Innovator and develops untried technology (Productivity & Innovation)

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1961: David McClelland – highly motivated, energetic, moderate risk taker (Need for achievement)

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1964: Peter Drucker – Searches for change, responds to it & exploits as opportunity (Opportunity Focused)

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1980: Karl Vesper – Behaviour Perceptions- Economists, Psychologists, Businessmen, Politicians (Environment)

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1983: Gifford Pinchot - Intrapreneur

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1985: Robert Hisrich - Creating something different with value, devoting time & effort, assuming risks (FPS); results-rewards and satisfaction (Leadership & Vision)

Capital Supplier (Risk)

How do you define an entrepreneur in the 21st Century?

Entrepreneurship Is the process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, social risks and receiving the resulting rewards of monetary and personal satisfaction and independence?

The Nature and Development of Entrepreneurship Entrepreneur stems from French Verb “Entreprendre” means between – taker or go between. New Definition involves four aspects: •

The creation processes

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The devotion of time and efforts

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The assumption of risks

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Rewards of independence, satisfaction, money.

Advantages of Entrepreneurship -

To an Individual • Self-Employment • Employment for near & dear • Prolonged career for next generations • Freedom to use own ideas - Innovation and creativity • Unlimited income / higher retained income • Independence • Satisfaction

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To the Nation • Provides larger employment • Results in wider distribution of wealth • Mobilizes local resources, skills and savings • Accelerates the pace of economic development • Stimulates innovation & efficiency

Factors favoring Entrepreneurship •

Growth of education- science, technology & management

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Developed infrastructure facilities

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Financial assistance

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Training facilities

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Protective and promotional policies

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Globalization Think of numerous other factors?

What makes a Successful Entrepreneur? •

The urge for achievement

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Determination to win

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Win-Win Personality

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Willingness to take moderate risks

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Ability to identify & explore opportunities

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Analytical ability to take strategic decisions

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Perseverance

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Flexibility

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Capacity to plan and organize

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Preparedness to undergo physical and emotional stress

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Positive self-concept

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Future orientation: Vision

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Ethics and Values: Mission

Who can be an Entrepreneur? •

Who can take moderate risks?

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Who has ability to work hard?

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Who can capitalize on opportunities?

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Who has some financial strength?

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Who feels the need for achievement?

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Who has desire for responsibility?

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Who has perception of probability of success?

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Who gets stimulation by feedback?

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Who possess skills in organizing?

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Who can be male or female?

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Who may not have previous experience?

Characteristics of an Entrepreneur • Mental ability

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Motivator

• Clear objectives

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Self-confident

• Business secrecy

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Long term involvement

• H.R. ability

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High energy level

• Communication ability

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Problem solver

• Technical knowledge

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Initiator

• Achievement-oriented

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Goal setter

• Perseverance

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Risk taker

• Ethical

Key elements of entrepreneur • Innovation • Vision • Ethics & Values • Organizing Skills • Risk taking • Need for Achievement

Entrepreneur’s Background and Characteristics • Family environment • Education • Age • Physical attributes • Marital status • Working history • Professional contacts • Personal values • Lifestyle

Creativity -

Creativity is the act of channeling imagination into something concrete. It is the very first stage of design, where ideas start to actually take form, and a plan can be developed.

Examples of creativity: In the case of Uber, creativity was necessary in producing the concept of ride sharing and of making driving jobs accessible to any individual. Another example can be the Google Glass, which although were very creative at the time (new, different in the market), were not necessarily innovative (monetary return over investment made by the company).

Invention -

Invention is the physical creation of a new concept or idea. Also, from Nesta’s innovation policy took it, it is defined as The creation of an idea to do or make something without verification that it works, or is commercially valuable. Invention cannot occur without creativity, but just creativity is not enough to properly develop an idea.

Examples of Invention: • •

Product designs, business models, or working prototypes. Uber channeled invention in creating a solid and working business model, based upon the ideas they had formed in the creation stage.

Innovation -

Innovation ties everything together in business. According to British Standards, Innovation is the successful exploitation of new ideas. It involves turning an invention into a commercial success and encouraging its widespread use. This is the stage where bold ideas, once properly developed, are brought to the public eye. This is what Uber has achieved, now that its product is in use all over the world and benefits people everywhere.

Examples of Innovation: 1. Successful products and services like Care of, Amazon Scout, Impossible Food, Google’s self-driving taxis, … 2. Successful process innovations like Amazon predictive orders, or additive manufacturing processes. Once again, Innovation cannot happen without creativity or invention, and neither creativity nor invention is useful in business if not properly executed. As can be clearly seen in the example of Uber, all the three steps are crucial in order to create a profitable business. Uber achieved innovation through creative ideas, a profitable business plan, and widespread marketing, all of which allowed the product to completely change the car sharing industry. These three stages are steps that will allow you to create and commercialize your product, and make your business grow and succeed....