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Entrepreneurship

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Entrepreneurship

“The entrepreneurship is essentially a

creative activity or it is an innovative

function”.- A Schumpeter

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Entrepreneurship

Entrepreneurial Culture 

Set of values , norms and traits that are

conducive to the growth of entrepreneurshipAdministrative Culture

Corporate culture which focuses on existing

opportunities , organisational structures andcontrol procedures

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Barriers to Entrepreneurship

• Regulatory barriers

• Economic and financial barriers

• Cultural and social barriers

• Personal Barriers

• Other

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Barriers to Entrepreneurship

Regulatory barriers

• Excessive, Complex, and Arbitrary Taxation

•Excessive Licensing and RegulatoryRequirements

 – Protectionism

 –

Patents – Red Tapism

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Barriers to Entrepreneurship

Economic and financial barriers

• Lack of seed capital

•Difficult access to finance

• Conservative mindset of financers

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Barriers to Entrepreneurship

Cultural and social barriers

• Social stigma

•Language barriers, discrimination, etc.

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Barriers to Entrepreneurship

Personal Barriers

• Lack of viable concept

•Lack of market knowledge

• Limited business, management and

marketing skills

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Barriers to Entrepreneurship

Other

• Education System

•Lack of appropriate role models inentrepreneurship

• External environment

 –

Unfavourable Market fluctuations – Change in Government Policies

 – Unreliable supply of inputs

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Support to Entrepreneurship

Government

• Increased and improved incentives for

entrepreneurs• Easy availability of capital.

• Encouraging the development of venture

capital companies.• Easing regulatory norms

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Support to Entrepreneurship

• Technical education & support

• Local business incubators

•

Tax subsidySociety

• Encourage entrepreneurial talent

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Features of Entrepreneurship

• Gap filling function-H. Liebenstein

• Function of status withdrawal-E.E. Hagen

•

Function of social, political and economicstructure-John H. Kunkel

• Function of religious beliefs-Max Weber

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• The Entrepreneurial Personality-person, skills,

styles and motives

• The Entrepreneurial Task-ability to recognise

and exploit opportunities

• The Entrepreneurial Environment-economic,

sociocultural, politico-legal factors

• The Organisation Context-organisation

structure, definition of work roles, culture, etc.

Model of Entrepreneurship

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Theories of Entrepreneurship

• The economist’s view :

 – Advocated by G.F. Papanek & J.R. Harris

 – Economic incentives are main drive for

entrepreneurship

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• The sociologist’s view: 

 – Propose by Cochran, Weber, Hoselitz, Stokes,

Hagen, etc.

 – Social sanctions ,cultural values, religious beliefs,

occupational requirements, and role

expectations are factors responsible for

entrepreneurial growth

Theories of Entrepreneurship

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• The psychologist’s view : 

 – Suggested by McClelland, Schumpeter, Hagen,

Kunkel, etc.

 – Depends on individual psychological make up

which in turn is based on factors like withdrawal

of status, child rearing practices, social

surroundings, etc.

Theories of Entrepreneurship

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Motivating Factors

Entrepreneurial Reasons

• Money

• Family business

• Independent living

• Fulfill desires

• Social prestige

• Others- education, creativity, provide

employment to others

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Motivating Factors

Compelling Reasons

• Unemployment

•

Dissatisfaction with job• Continue family business

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Questions?