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U N I T 1. Definition of Entrepreneur Internal & External Factors Functions Entrepreneurial Motivation & Barriers Classification Theories Concept Development of Entrepreneurship Culture Stages in entrepreneurial process.          . W h a t i s a n En t r e p r e n e u r ?.

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U N I T 1

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  1. UNIT1 DefinitionofEntrepreneurInternal&ExternalFactorsFunctions EntrepreneurialMotivation&BarriersClassification TheoriesConcept DevelopmentofEntrepreneurshipCulture Stagesinentrepreneurialprocess          

  2. WhatisanEntrepreneur? Onewhocreatesanewbusinessinthefaceofriskanduncertaintyforthepurposeofachievingprofitandgrowthbyidentifyingandassemblingthenecessaryresourcestocapitalizeonthem.

  3. CONCEPTOFENTERPRENEUR • RISKBEARER • ORGANISER • INNOVATOR

  4. Schumpter’sDefinitionof Entrepreneur Reformorrevolutionizethepatternofproductionbyexploitinganinventionormoregenerally,anuntriedtechnologicalpossibilityforproducinganewcommodity

  5. Drucker’sviewonEntrepreneur Innovationisaspecifictoolofentrepreneurs,thismeansbywhichtheyexploitchangesasanopportunityfordifferentbusinessoradifferentservice.

  6. CharacteristicsofEntrepreneurs • Desireforresponsibility • Preferenceformoderaterisk • Confidenceintheirabilitytosucceed • Desireforimmediatefeedback • Highlevelofenergy • Futureorientation • Skilledatorganizing • Valueachievementovermoney

  7. FunctionsofEntrepreneur • Innovation • RiskTaking • OrganizationBuilding • Absorbuncertainty • FrametheChallenge • BuildCommitment

  8. Entrepreneurs...Traits • Self-confidentandoptimistic • Abletotakecalculatedrisk • Respondpositivelytochanges • Flexibleandabletoadapt • Knowledgeableofmarkets • Abletogetalongwellwithothers • Independentminded

  9. Entrepreneurs...TraitsII • Energeticanddiligent • Creative,needtoachieve • DynamicLeader • Responsivetosuggestions • Takeinitiatives • Resourcefulandpersevering • Perceptivewithforesight

  10. Personaltraitsandcharacteristicsofentrepreneurs.

  11. EntrepreneurialMotivation Motivationisaninnerspiritthatactivatesanddirectourbehaviortowardsourgoal.

  12. Whatmotivatesanindividualtobehaveentrepreneuriallyisexplainedbythebehavioralscientists?Whatmotivatesanindividualtobehaveentrepreneuriallyisexplainedbythebehavioralscientists?

  13. Entrepreneurship:SourcesofSupply&Motivation Entrepreneurial Author PhenomenonIndividualStatusGroups Religious&SocialGroups SourceofEntrepreneurialSupplyExtraordinaryindividualsExtraordinaryindividuals Individualswithhighn-achievementcreative Individualsinthesoceitydrivenbyadutytoachieve MotiveForce InnateurgetoachievesucessReligiousbeliefs Schumpter Weber McCelland Childrearingpractices&climate Statuswithdrawal&relativesocialblockage Hagen SubordinatedGroups

  14. FACTORSRESPONSIBLEFORENTREPRENEURS

  15. INTERNALFACTORS • Desiretodosomethingnew • EducationalBackground • Experience

  16. EXTERNALFACORS • Govt.assistanceandsupport • Availabilityoflaborandrawmaterial • Encouragementfrombigbusinesshouses • Promisingdemandfortheproduct

  17. TYPESOFENTREPRENEUR • Accordingtothetypeofbusiness • Accordingtotheuseoftechnology • Accordingtothemotivation • Accordingtothegrowth • Accordingtothearea • Accordingtothegender&age • Accordingtothesaleofoperation

  18. TypeofBusiness BusinessEntrepreneur(individualswhoconceiveanideaforanewproductorservice&thencreateabusinesstomaterializetheiridea.) TradingEntrepreneur(Isonewhoundertakestradingactivities&isnotconcernedwiththemanufacturingwork) IndustrialEntrepreneur(amanufacturerwhoidentifiesthepotentialneedsofcustomers&tailorsaproducttomeetthemarketingneeds) CorporateEntrepreneur(Isapersonwhodemonstrateshisinnovativeskillinorganizing&managingcorporateundertaking) AgriculturalEntrepreneur(Isonewhoundertakeagriculturalactivitiesasraising&marketingofcrops,fertilizers&otherinput.)RetailEntrepreneur ServiceEntrepreneur       

  19. UseofTechnology • TechnicalEntrepreneur(hedemonstrateshisinnovativecapabilitiesinmatterofproductionofgoods&renderingservices) • Non-TechnicalEntrepreneur(concernedonlywithdevelopingalternativesmarketing&distributionstrategiestopromotetheirbusiness) • ProfessionalEntrepreneur(apersonwhoisinterestedinestablishingthebusinessbutdoesnothaveinterestinmanagingitonce)

  20. AccordingtoMotivation • PureEntrepreneur(anindividualwhoismotivatedbypsychological&economicrewards) • InducedEntrepreneur(isonewhoinducedtotakeupentrepreneurialtaskduetothepolicymeasuresoftheGovt.) • MotivatedEntrepreneur(theyaremotivatedbythedesireofselffulfillment) • SpontaneousEntrepreneur(thosewhostarttheirbusinesstheirbynaturaltalents(inbornabilities)

  21. Accordingtoarea • UrbanEntrepreneur • RuralEntrepreneur

  22. Accordingtogender&age • MenEntrepreneur • WomenEntrepreneur

  23. Accordingtosaleofoperation • SmallscaleEntrepreneur • LargescaleEntrepreneur

  24. ClassificationofEntrepreneurs • InnovatingEntrepreneurs • ImitativeEntrepreneurs • FabianEntrepreneurs • DroneEntrepreneurs

  25. INNOVATINGENTERPRENEURS Isonewhointroducesanewgoods,inaugratesnewmethodofproduction,discoversnewmarket&reorganizestheenterprise

  26. IMITATIVEENTERPRENEURS Thesearecharacterizedbyreadinesstoadoptsuccessfulinnovationsinauguratedbyinnovatingentrepreneurs

  27. FABIANENTERPRENEURS Thesearecharacterizedbyagreatcaution&skepticisminexperimentinganychangesintheirenterprises

  28. DRONEENTERPRENEURS Thesearecharacterizedbyarefusaltoadoptopportunitiestomakechangesintheproductionformulaeevenatthecostofseverelyreducedreturnsrelativetotheotherlikeproducers.

  29. THEORIESOFENTREPRENEURSHIP • Economic • Psychological • Sociological

  30. ECONOMICTHEORY Economicincentivesarethemaindrivefortheentrepreneurialactivities.Thepersonsinnerdriveshavealwaysbeenassociatedwitheconomicgains.Thustheseincentivesareregardedassufficientconditionsfortheemergenceofindustrialentrepreneurship.

  31. SOCIOLOGICALTHEORY Sociologistsarguethatentrepreneurshipismostlikelytoemergeunderaspecificsocialculture.Socialvaluesarethemostimportantdeterminantoftheattitudes&roleexpectations.

  32. PSYCHOLOGICALTHEORY Thistheory, entrepreneurship ismost likelytoemergewhenasocietyhassufficientsupplyofindividualspossessingparticularcharacteristics.Schumpterbelievesthatentrepreneursareprimarilymotivatedbywillofconquer.McClellandassertsthatitishighneedforachievementthatmotivatespeopletowardsentrepreneurialactivities.

  33. BarrierstoEntrepreneurship • Lackofviableconcept • Lackofmarketknowledge • Lackoftechnicalskills • Lackofcapital • Lackofbusinessknowhow • Timepresencesanddistractions • Legalconstraintsandregulations

  34. Culture • Thesumtotalofsocialbehaviorthatincludesatleastthreeelementsnamely,knowledgeandbeliefs,idealsandpreferences. • Entrepreneurialcultureimpliesvision,values,normsandtraitsthatareconductiveforthedevelopmentoftheeconomy. • Theemergingmarketenvironmentandglobalizationischallengingeveryorganization&everypersonintheorganizationtoconsider,evaluateandbringoutthechangesinthinking,visionandaction.

  35. NatureofCulture • Basicbeliefsandassumptionsaboutthecompany • Emotionalaspect • Reflecthistory • Inherentlysymbolic • SubstanceandForm

  36. ComponentsofCulture • Values • RulesofConduct • Vocabulary • Methodology • Rituals • MythsandStores

  37. ElementsofanEntrepreneurialCulture • Peopleandempowermentfocused • Valuecreationthroughinnovationandchange • Attentiontothebasics • Hands-onmanagement • Doingtherightthing • Freedomtogrowandtofail • Commitmentandpersonalresponsibility • Emphasisonthefutureandasenseofurgency

  38. IndividualismvsCollectivism Individualism  Self-orientation Emphasisonself-efficiencyandcontrolPursuitofindividualgoals Valuesystemdrivenbyprideintheirownaccomplishments – – – – Collectivism  Group-orientation SubordinationofpersonalinterestsandgoalsEmphasisonsharing Concernforgroupwelfare – – – – EntrepreneurialIntensityisachievedbybalancebetweenindividualismandcollectivism 

  39. StepsintheEntrepreneurial Process Discovery ConceptDevelopment Resourcing Actualization Harvesting

  40. StepsintheEntrepreneurialProcess 1.Discovery:Thestageinwhichtheentrepreneurgeneratesideas,recognizesopportunities,andstudiesthemarket

  41. StepsintheEntrepreneurialProcess 2.ConceptDevelopment: Developabusinessplan:adetailedproposaldescribingthebusinessidea –

  42. ConceptDevelopment Choosebusinesslocation Willapatentortrademarkberequired? – –

  43. StepsintheEntrepreneurialProcess 3.Resourcing:Thestageinwhichtheentrepreneuridentifiesandacquiresthefinancial,human,andcapitalresourcesneededfortheventurestartup,etc

  44. StepsintheEntrepreneurialProcess 4.Actualization:Thestageinwhichtheentrepreneuroperatesthebusinessandutilizesresourcestoachieveitsgoals/objectives.

  45. StepsintheEntrepreneurialProcess 5.Harvesting:Thestageinwhichtheentrepreneurdecidesonventure’sfuturegrowth,development,ordemise.

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