Entrepreneurship Notes PDF

# Entrepreneurship "Entrepreneurship means identifying opportunities & creating new organizations to pursue them by producing new product & services while facing uncertainties." - *William D. Bygrave* "This can be also known as the bridge between capital & labor." - *Joseph Schumpeter, Richard Can...

# Entrepreneurship "Entrepreneurship means identifying opportunities & creating new organizations to pursue them by producing new product & services while facing uncertainties." - *William D. Bygrave* "This can be also known as the bridge between capital & labor." - *Joseph Schumpeter, Richard Cantillon, Oxford dictionary* ## Importance of Entrepreneurship - To create a sustainable development - To provide new employment opportunities by carrying out businesses - To increase the standards of lives of people by creating new innovations. - To survive in the competitive business environment - The need for new innovations in the dynamic environment. ## Relationship between entrepreneurship & businesses The process of producing innovations & managing risks to satisfy human needs & wants is known as entrepreneurship. While production, distribution & selling of goods and services in order to satisfy human needs and wants is known as a business. Even though both of these things engage in production, distribution & Sales of goods & Services only entrepreneurs are engaged in identifying opportunities, facing risks & innovation. Therefore we can say that all enterprises are businesses whereas all businesses are not enterprises. The end result of an entrepreneurship is known as a business. ## Benefits of Entrepreneurship ### Individual - Ability to make use of one's own abilities - Ability to gain a higher profit by putting in a higher commitment - Ability to increase the standard of living - Ability to create new markets & regional resources, - Ability to increase social status - Ability to make independent decisions. ### Social & Economic - To provide employment - To increase standard of living - To increase GDP - To make the use of resources fair - To reduce poverty & increase acceptance and distribution of income ### Entrepreneurship & Economic Development - new employment opportunities - Increase in income level - Increase in production - Increase in competition - Increase in demand for goods and services - Increase in purchasing power ## Trends in Entrepreneurship ### Global Entrepreneurship - Engaging in trading activities globally - Importance to maintain a good relationship with other countries through communication - Identify the differences among cultures, countries and nations ### Social Entrepreneurship - Engage in innovation activities to solve social problems - Aim in making the world a better place - Expectations: Moral satisfaction, acceptance, praise and mutual help ### Green Entrepreneurship - Core concept: Environmental protection - Positively impact the natural environment through social activities (Sensitive about environmental & social problems) ### Intra Entrepreneurship - People who work in different posts of the organization make changes in product and production methods or ideas - Implements them. This type of entrepreneurship is known as intra-entrepreneurship. ## Reasons for Women Entrepreneurship - Increase in educational levels - Increase in social acceptance & household work - Changes in attitudes of people - Women engage in labour force, need to increase family income - Increase in business activities where women's contribution is much needed. ## Challenges faced by them - More time has to be spent on household work - Laws, rules, and regulations - Financial institutions providing fewer facilities to women - Government providing less support to women - Negative attitudes ## Entrepreneurship Process ### 1. Discovery * Identify opportunities and generate ideas by studying the dynamic business environment & the market place ### 2. Concept development & Preparing the business plan. * Preparing the business plan - a detailed program which clarifies the business idea ### 3. Resourcing * Identifying the human & physical & financial resources needed for the business & trying to ... acquire them ### 4. Actualization * Carrying out the business operations by using the acquired resources. ### 5. Harvesting * Make decisions about the future growth & development of the business ## Entrepreneur "An entrepreneur is a person who identify opportunities in a dynamic environment & make innovations creatively while facing risks. He creates new organizations." - *Wespeter* ## Entrepreneur Vs Businessman | Entrepreneur | Businessman | |-----------------------------------------------|-----------------------------------------------------| | Start up a business with his own ideas/concepts | Start up a business with an existing ideal concept | | Is an innovator | Is a traditionist | | Faces risk | Engage in business activities protectively | | Works courageously when faced with problems | Get discouraged when facing problem | | He the opponent of himself | Have other competitors | ## Entrepreneur Vs Manager | Entrepreneur | Manager | |-----------------------------------------------|-------------------------------------------------------| | Start up a business | Conducts on existing business | | Owns the business | Is an employee of the business | | Faces risk & enjoy P&L | Try to manage the business properly & get salaries & other benefits | | Identify business opportunities | Identify the problems of the business | | Concern about BSR & other benefits | Concern about business benefits | ## Functions of an Entrepreneur - Identify opportunities and use them - Combine Production factors t produce products - Combine inventions and innovations - Decide different alternate production methods & the amount of production **Every manager is not an entrepreneur...** Entrepreneurs are the people who does the inventions & innovation. They earn profit by bearing a risk. They perform management tasks of the business (planning organizing leading and controlling) & make all the decisions of the organization. But all managers do not involve in innovation and invention. All managers are not entrepreneurs. ## Characteristics of an Entrepreneur - Willingness to beartake risks - Eco-Friendliness - Leadership - Social concern - Visionary - Flexibility - Self confident - Self reliant - Motivated - Creativity - Consistency ## Entrepreneurial Skills - Leadership Skills: Leading & motivating subordinates formally. - Interpersonal Skills: Maintain a good relationship between internal & external parties - Communication Skills: Maintain a proper co-ordination - Basic management skills: Planning, organizing, leading & controlling. ## Ways of developing entrepreneurial skills - Self-evaluation - Training - Education - Profiting from experience ## Essential factors for the success of an entrepreneurship - Having an opportunities - Having a good understanding about one's self - Having a vision (things that you plan on achieving) - Having resources.