Entrepre Preneur

8/12/2019 Entrepre Preneur

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The Need for Entrepreneurship

Entrepreneurship is the act of being an entrepreneur, which is a French word meaning one

who undertakes an endeavor. Entrepreneurs assemble resources including innovations, finance

and business acumen in an effort to transform innovations into economic goods. The most

obvious form of entrepreneurshipis that of starting new businesses; however, in recent years,

the term has been extended to include social and political forms of entrepreneurial activity.

The concept of entrepreneurship has a wide range of meanings. On the one extreme

an entrepreneur is a person of very high aptitude who pioneers change, possessing

characteristics found in only a very small fraction of the population.

According to A.H. Cole, Entrepreneurshipis the purposeful activity of an individual or group

of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or

distribution of economic goods or services.

Entrepreneurship promotes small business in the society. Government has accepted the fact

that small firms have a crucial role to play in theeconomic developmentof the country. Most

economists today agree that entrepreneurship is a necessary ingredient for stimulatingeconomic

growthand employment opportunities in all societies. Small businesses are an essential part of

our future economic prosperity because of the following reasons;

Employment generation: entrepreneurial development is looked at as a vehicle for

employment generation through promotion of small business. India, being far more

developed and forward looking country than some of the third world countries, can provide

lead to entrepreneurial development activities. However, India can benefit from the well-

documented success experiences of developed countries like USA, Japan and UK in the field

of employment generation and small business promotion. Steady growth in consumer

spending, expanding retail sales, a strong housing market, continued expansion of the service

sector, low rates of inflation and of labor cost increases and failing interest rates contributed

to a healthy environment for small business. In India, the government policies, political and

economic environment greatly encourage the establishment of new and small enterprises.

Self- employment and small scale industry schemes have been further liberalized during the

last decade.
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Small business dynamism: great dynamism is one of the qualities of the small and medium

enterprises. This quality of dynamism originates in the inherent nature of the small business.

The structure of small and medium enterprises is less complex than that of large enterprises

and therefore facilitates quicker and smoother communication and decision- making. Thisallows for the greater flexibility and mobility of small business management. Also, small

enterprises, more often make it possible for owners, who have a stronger entrepreneurial

spirit than employed mangers, to undertake risk and challenges.

Balanced economic development: small business promotion needs relatively low

investment and therefore can be easily undertaken in rural and semi-urban areas. This in turn

creates additional employment in these areas and prevents migration of people from rural to

urban areas. Since majority of the people are living in the rural areas, therefore, more of our

development efforts should be directed towards this sector. Small enterprises use local

resources and are best suited to rural and underdeveloped sector. This in turn will also lead to

dispersal of industries, reduction in concentration of economic power and balanced regional

development.

Innovations in enterprises:business enterprises need to be innovative for survival and

better performance. It is believed that smaller firms have a relatively higher necessity and

capability to innovate. The smaller firms do not face the constraints imposed by large

investment in existing technology. Thus they are both free and compelled to innovate.Entrepreneurship development is accelerating the pace of small firms growth in India. An

increased number of small firms are expected to result in more innovations and make the

Indian industry compete in the international market.

entrepreneur.

Noun

1. A person who organizes and operates a business venture andassumes much of the associated risk.2. A person who organizes a risky activity of any kind and actssubstantially in the manner of a business entrepreneur.
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Related terms

efinition and terminology

An entrepreneur is someone who attempts to organize resources in new

and more valuable ways and accepts full responsibility for the outcome.

Etymology

The word "entrepreneur" is a loanword from French. In French the verb

"entreprendre" means "to undertake", with "entre" coming from the

Latin word meaning "between", and "prendre" meaning "to take". In

French a person who performs a verb, has the ending of the verb

changed to "eur", comparable to the "er" ending in English.

Enterprise is similar to and has roots in, the French word "entrepris",

which is the past participle of "entreprendre". Entrepreneuse is simplythe French feminine counterpart of "entrepreneur".

According to Miller, it is one who is able to begin, sustain, and when

necessary, effectively and efficiently dissolve a business entity.

Entrepreneur as a leader

Characteristics of an entrepreneur

There is no such thing as a typical entrepreneur.

Some entrepreneurs are quiet and hard-working, while others are more outgoing andflamboyant. The key to being a successful entrepreneur lies in the ability to take an ideaand then, through the process of innovation, develop it in such a way that it becomes amarketable product or service. Research indicates that there are a number ofcharacteristics that are quite likely to be present in high-achieving entrepreneurs:

The ability to learn from othersentrepreneurs tend to be good at networking. They benefitfrom being members of organisation like the IET where they can learn best practice ideas fromothers.


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Self confidencea belief in their own abilities and ideas. Being innovative/inventivebeing able to generate ideas, either for new products/services or

new ways of applying them. Self motivation and determinationthe drive to keep going and see things through. Showing initiativeit is necessary to have not only the ideas for the business, but also the

detailed plans to achieve objectives (both thinking and doing). Analytical abilitiescapable of researching and evaluating each aspect of the business, from

development, through finance, production, to marketing and sales. The ability to make decisions and to take (considered) risks. A focus on results that ensures products are sold for a profit.

Theyre goal-orientated

Entrepreneurs are all about setting goals and putting their all into achievingthem; theyre determined to make their business succeed and will remove anyencumbrances that may stand in their way. They also tend to be strategic in theirgame plans and always have a clear idea in mind of exactly whatthey want toachieve and howthey plan to achieve it.

Theyre committed to their businessEntrepreneurs are not easily defeated; they view failure as an opportunity forfuture success, and if they dont succeed the first time, theyll stay committed totheir business and will continue to try and try again until it does succeed. A trueentrepreneur doesnt take no for an answer.

Theyre hands-on

Entrepreneurs are inherently proactive, and know that if something really needsto get done, they should do it themselves. Theyre doers, not thinkers, and te ndto have very exacting standards. They view their business as an extension ofthemselves and like to be integral in its day-to-day operationseven when theydont have to be.

They thrive on uncertaintyNot only do they thrive on itthey also remain calm throughout it. Sometimesthings go wrong in business, but when youre at the helm of a company andmaking all the decisions, its essential to keep your cool in any given situation.True entrepreneurs know this and secretly flourish and grow in the wake of anychallenges.

They continuously look for opportunities to improve

Entrepreneurs realize that every event or situation is a business opportunity, andtheyre constantly generating new and innovative ideas.They have the ability tolook at everything around them and focus it toward their goals in an effort toimprove their business.

Theyre willing to take risksA true entrepreneur doesnt ask questions about whether or not theyll succeedthey truly believe they will. They exude this confidence in all aspects of life, andas a bi-product, theyre never afraid to take risks due to their unblinding faith thatultimately they wil l triumph.

Theyre willing to listen and learn

The most important part of learning is listeningand a good entrepreneur will dothis in abundance.


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They have great people skills

Entrepreneurs have strong communication skills, and its this strength thatenables them to effectively sell their product or service to clients and customers.Theyre also natural leaders with the ability to motivate, inspire and influencethose around them.

Theyre inherently creativeThis is one trait that, due to their very nature, entrepreneurial business peoplehave by the bucket load. Theyre able to not only come up with ingenious ideas,but also turn those ideas into profits.

Theyre passionate and always full of positivity

Invention

Definition: An object , process or technique that displays an element ofnov elty . In c ertain circums tances, legal protect ion m ay be granted to an

invent ion by way of a patent .

Innovative new products are the fuel for the most powerful growth engine you can connect to. You

can grow without new products--AT&T sold essentially the same telephones for decades while

becoming the world's largest telecommunications concern--but most small companies will find it

difficult to grow at all, much less rapidly, without a constant stream of new products that meet

customer needs.

If you decide to develop new products as part of your growth plan, you're in good company. Small

companies contribute at least half of the major industrial innovations occurring in the United States,

according to the SBA. At the same time, approximately one-third of all new products are

unsuccessful, and in some industries, the percentage of failures is much higher. The way to increase

your chances of coming up with good ideas is to follow the tested track to new product development

success.

New product development can be described as a five-stage process, beginning with generating

ideas and progressing to marketing completed products. In between are processes where you

evaluate and screen product ideas, take steps to protect your ideas, and finalize design in an R&D

stage. Following are details on each stage:

1. Generating ideas.This stage consists of two parts: creating an idea and developing it for

commercial sale. There are many good techniques for idea creation, including brainstorming,

random association and even daydreaming. You may want to generate a long list of ideas and then

whittle them down to a very few that appear to have commercial appeal.


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2. Evaluating and screening product ideas.Everybody likes their own ideas, but that doesn't

mean others will. When you're evaluating ideas for their potential, it's important to get objective

opinions. For help with technical issues, many companies take their ideas to testing laboratories,

engineering consultants, product development firms, and university and college technical testing

services. When it comes to evaluating an idea's commercial potential, many entrepreneurs use thePreliminary Innovation Evaluation System (PIES) technique. This is a formal methodology for

assessing the commercial potential of inventions and innovations.

3. Protecting your ideas.If you think you've come up with a valuable idea for a new product, you

should take steps to protect it. Most people who want to protect ideas think first of patents. There are

good reasons for this. For one thing, you will find it difficult to license your idea to other companies,

should you wish to do so, without patent protection. However, getting a patent is a lengthy,

complicated process, and one you shouldn't embark on without professional help; this makes the

process expensive. If you wish to pursue a patent for your ideas, contact a registered patent attorney

or patent agent.

Many firms choose to protect ideas using trade secrecy. This is simply a matter of keeping

knowledge of your ideas, designs, processes, techniques or any other unique component of your

creation limited to yourself or a small group of people. Most trade secrets are in the areas of

chemical formulas, factory equipment, and machines and manufacturing processes. The formula for

Coca-Cola is one of the best-recognized and most successful trade secrets.

4. Research and development (R&D).Both tasks are necessary for refining most designs for new

products and services. If you're already the owner of a growing company, you're in a good position

when it comes to this stage--most independent inventors don't have the resources to pay for this

costly and often protracted stage of product introduction. But that's not to say if you don't have abusiness, you can't find the resources to undertake this task. There are plenty of ways to get the job

done cheaply.

R&D consists of producing prototypes, testing them for usability and other features, and refining the

design until you wind up with something you think you can make and sell for a profit. This may

involve test-marketing, beta testing, analysis of marketing plans and sales projections, cost studies

and more. As the last step before you commit to rolling your product out, R&D is perhaps the most

important step of all.

5. Promoting and marketing your product.Now that you have a ready-for-sale product, it's time to

promote, market and distribute it. Many of the rules that apply to existing products also apply to

promoting, marketing and distributing new products. However, new products have some additional

wrinkles. For instance, your promotion will probably consist of a larger amount of customer

education, since you will be offering them something they have never seen before. Your marketing

may have to be broader than the niche efforts you've used in the past because, odds are, you'll be a

little unsure about the actual market out there. Finally, you may need to test some completely new

distribution channels until you find the right place to sell your produc


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INVENTION VS. INNOVATION: THE DIFFERENCEIn its purest sense, inventioncanbe defined as the creation of a product or introduction of a process for

the first time. Innovation, on the other hand, occurs if someoneimproves onor makes a significant

contribution toan existing product, process or service.

Consider the microprocessor. Someone invented the microprocessor. But by itself, the microprocessor

was nothing more than another piece on the circuit board. Its what was donewith that piece thehundreds of thousands of products, processes and services that evolved from the invention of the

microprocessor thatrequired innovation.

STEVE JOBS: THE POSTER BOY OF INNOVATIONIf ever there were a poster child for innovation it would be former Apple CEO Steve Jobs. And when

people talk about innovation, Jobs iPod is cited as an example of innovation at its best.

But lets take a step back for a minute. The iPod wasnt the first portable music device (Sony popularized

the music anywhere, anytime concept 22 years earlier with the Walkman); the iPod wasnt the first

device that put hundreds of songs in your pocket (dozens of manufacturers had MP3 devices on themarket when the iPod was released in 2001); and Apple was actually lateto the party when it came to

providing an online music-sharing platform. (Napster, Grokster and Kazaa all preceded iTunes.)

So, given those sobering facts, is the iPods distinction as a defining example of innovation warranted?

Absolutely.

What made the iPod and the music ecosystem it engendered innovative wasnt that it was

the firstportable music device. It wasnt that it was thefirstMP3 player. And it wasnt that it was

the firstcompany to make thousands of songs immediately available to millions of users. What made

Apple innovative was that it combinedall of these elements design, ergonomics and ease of use in

a single device, and then tied it directly into a platform that effortlessly kept that device updated with

music.

Apple invented nothing.Its innovation was creating an easy-to-use ecosystemthat unified music

discovery, delivery and device. And, in the process, they revolutionized the music industry.

IBM: INNOVATIONSUGLY STEPCHILDAdmittedly, when it comes to corporate culture, Apple and IBM are worlds apart. ButApple andIBM arent

really as differentas innovations poster boy would have had us believe.

Truth is if it hadnt been for one ofIBMs greatest innovations the personal computer there would

have been no Apple. Jobs owes a lot to the introduction of the PC. And IBM was the company behind it.
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Ironically, the IBM PC didnt contain any new inventions per se (see iPod example above). Under

pressure to complete the project in less than 18 months, the team actually was under explicit

instructions notto invent anything new. The goal of the first PC, code-named Project Chess, was to take

off-the-shelf components and bring them together in a way that was user friendly, inexpensive, and

powerful.

And while the worlds first PC was an innovative product in the aggregate, the device they created a

portable device that put powerful computing in the hands of the people was no less impactful than

Henry Fords Model T, which reinvented the automobile industry by putting affordable transportation in the

hands of the masses.

INNOVATION ALONE IS NOT ENOUGHGiven the choice to invent or innovate, most entrepreneurs would take the latter. Lets face it, innovation

is just sexier. Perhaps there are a few engineers at M.I.T. who can name the members of Project Chess.

Virtually everyone on the planet knows who Steve Jobs is.

But innovation alone isnt enough. Too often, companies focus on a technology instead of the customers

problem.But in order to truly turn a great idea into a world-changing innovation, other factors must be

taken into account.

According to Venkatakrishnan Balasubramanian, a research analyst with Infosys Labs, the key to

ensuring that innovation is successful is aligning your idea with the strategic objectives and business

models of your organization.

Ina recent article that appeared in Innovation Management,he offered five considerations:

1. Competitive advantage:Your innovation should provide a unique competitive position for the

enterprise in the marketplace;

2. Business alignment:The differentiating factors of your innovation should be conceptualized around

the key strategic focus of the enterprise and its goals;

3. Customers:Knowing the customers who will benefit from your innovation is paramount;

4. Execution:Identifying resources, processes, risks, partners and suppliers and the ecosystem in the

market for succeeding in the innovation is equally important;

5. Business value:Assessing the value (monetary, market size, etc.) of the innovation and how the ideawill bring that value into the organization is a critical underlying factor in selecting which idea to pursue.

Said another way, smart innovators frame their ideas to stress the ways in which a new concept is

compatible with the existing market landscape, and their companys place in that marketplace.

This adherence to the status quo may sound completely antithetical to the concept of innovation. But an

idea that requires too much change in an organization, or too much disruption to the marketplace, may

never see the light of day.

A FINAL THOUGHTWhile they tend to be lumped together, invention and innovation are not the same thing. There are

distinctions between them, and those distinctions are important.

So how do you know if you are inventing or innovating? Consider this analogy:

If invention is a pebble tossed in the pond, innovation is the rippling effect that pebble causes. Someone

has to toss the pebble. Thats the inventor. Someone has to recognize the ripple will eventually become a

wave. Thats the entrepreneur.

Entrepreneurs dont stop at the waters edge. They watch the ripples and spot the next big wave beforeit

happens. And its the act of anticipating and riding that next big wave that drives the innovative nature in

every entrepreneur.
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Inventionis the "creation of a product or introduction of a process for the first time."

Thomas Edison was an inventor.

Innovationhappens when someone "improves on or makes a significant contribution" to

something that has already been invented.Steve Jobswas an innovator.

Theres a lot of confusion surrounding creativity and innovation. Creative types, in

particular, claim that creativity and innovation cant be measured. Performance, however,

demands measurement so you can identify what success looks like. In a world that changes

every two seconds, its imperative that companies figure out the difference between

creativity and innovation.

You better believe theyre different.

Creativity vs. Innovation

The main difference between creativity and innovation is the focus. Creativity is

about unleashing the potentialof the mind to conceive new ideas. Those concepts could

manifest themselves in any number of ways, but most often, they become something we

can see, hear, smell, touch, or taste. However, creative ideas can also be thought

experiments within one persons mind.

Creativity is subjective, making it hard to measure, as our creative friends assert.

Innovation, on the other hand, is completely measurable. Innovation is about introducing

change into relatively stable systems. Its also concerned with the work required to make an

idea viable. By identifying an unrecognized and unmet need, an organization can use

innovation to applyits creative resources to design an appropriate solution and reap a

return on its investment.

Organizations often chase creativity, but what they really need to pursue is innovation.

Theodore Levitt puts it best: What is often lacking is not creativity in the idea-creating

sense but innovation in the action-producing sense, i.e. putting ideas to work.

Managing Innovation

Because creativity and innovation are often confused, its long been assumed that you

cannot force innovation within an organization. Its either there, or it isnt. The introduction of

a common language for innovation design thinking enables organizations to bettermeasure milestones in their innovative efforts.

In order to employ design thinking, its necessary to understand it as a system of

overlapping spaces, rather than a set of process steps to move through. Those spaces

are: inspiration,during which the problem that motivates solution-finding is

identified; ideation,the process of generating and developing ideas;

and implementation,the activities that enable a creative idea to move from the drawing
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board to the marketplace. Any design thinking-based project may loop back to an earlier

space more than once as a team explores, develops, and implements its idea.

Design thinking provides a consistent approach to defining challenges. It helps

organizations identify problems before they even begin the brainstorming sessions most

associated with creativity. Now, organizations can actually seewhat they were missingwhen previous ideas didnt reach market sustainability.

Using design thinking, organizations can capitalize on creativity by paying attention to the

life of the idea after its initial development. To be of value, applied creativity must always

lead to innovation linking a great idea with an actual customer need (or, better yet, the

needs of a whole market!). The use of design thinking in this manner also demands the

guidance of engaged leadership.

Leaders are critical to the success of any groups long-term innovation strategy. Its their job

to ensure that innovation is consistently pursued and their employees dont settle into

business as usual. They set the tone for what is, and is not, possible in the business

through their attention and action.

Companies to Model

Organizations serious about fostering innovation have to wrestle with two main issues: risk-

taking and failure aversion. All innovation involves risk, and all risks include the possibility of

failure. Failure should never be seen as a black mark; it is a learning experience. Leaders

and their organizations cannot be afraid of failure or they will never incorporate the

innovation they need to truly meet customers needs. Design thinking offers a path to risk -

taking thats manageable, repeatable,and driven toward maximizing the effectiveness of

the new idea.

Of course, the very term innovation connotes something new and different. Still, paying

attention to companies that are consistently innovative in theirindustries is always a good

practice. Consider these companies that use the principles of design thinking to achieve

their strategic goals:

Proctor & Gamble embraced innovation under former CEO A.G. Lafley. During his

tenure, P&Gs value increased by more than $100 billion. In 2000, it had 10 billion-dollar

consumer brands; today, it has 22.

Kaiser Permanente is the largest not-for-profit health provider in the USA. Kaisers

National Facilities Services group has, for over five years, been working on the Total

Health Environment, a program applying design thinking to every aspect of Kaisers

operations, from medical records to color palettes. The results speak for themselves:

improved patient health, satisfaction, soundness of sleep, speed of healing, and cost

control.

Square is particularly associated with innovation since its plugin device helps millions of

mobile vendors and small business owners. No longer are they confined to cash


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payments or expensive credit card machines. Square noticed that the economy was

quickly becoming paperless and provided customers a way to keep up.

Creativity is important in todays business world, but its really only the beginning.

Organizations need to foster creativity. Driving business results by running ideas through an

innovation process puts those ideas to work for companies andtheir customers.Creativity is the price of admission, but its innovation that pays the bills.

Andrew (Drew) C. Marshall is the Principal of Primed Associates, an innovation

consultancy. He lives in central New Jersey and works with clients across the U.S. and

around the world. He is a co-host of weekly innovation-focused Twitter chat, #innochat;

founder, host, and producer of Ignite Princeton; and a contributor to the Innovation

Excellence blog. He is also providing support for the implementation of the Design Thinking

for Scholars model with the Network of Leadership Scholars (a networkwithin the Academyof Management).

The Four Forces of EntrepreneurialOpportunitiesWhere should one look for promising business ideas? Michael Porter famously argued

that industries sustain different levels of profitability for firms depending on the

supplier power, barriers to entry, buyer power, and threat of substitute1. This approach

has been criticized, however, on the basis that firms are generally too inert to be able to

establish their strategies purely based on the profitability of a particular industry. Such

criticism is far less true for entrepreneurs, who generally have considerable flexibilityat least at first about the general area in which they look for business ideas. Porters

Four Forces are not quite appropriate for new ventures, since entrepreneurs generally

start with a very ill-defined idea of their eventual business model and of the relative

power of their eventual suppliers, buyers, or competitors.

What, then, are the forces generating entrepreneurial opportunities? This article

proposes a theoretical model explaining the variation in entrepreneurial opportunities

across industries. A subsequent article will show how this model can be used to predict

the emergence of new business opportunities.

1. Technological EvolutionA number of researchers have argued that the level of technological maturity greatly

impacts the number of entrepreneurial opportunities. For many years, MIT Sloan

Professor Jim Utterback has shown that young industries, in which needs are not well-

defined, present many more opportunities than more established markets2. Once a

dominant product design appears in a market, incumbents often develop economies of

scale, and improve their processes in a way that creates large entry barriers for potential


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newcomers. For instance, the car industry presented major entrepreneurial

opportunities at the end of the 19thcentury and at the beginning of the 20thcentury.

However, by the middle of the century, in most advanced economies, the bracket of

entrepreneurial opportunities in the car industry seems to have closed: not only did the

number of entrepreneurial ventures decrease dramatically, but many existingcompanies even went bankrupt. Other researchers have shown that technological areas

present more opportunities when they include a well-respected organization, but that

this advantage decreases as the level of competition grows3. For instance, the fact that

IBM entered the PC market increased the credibility of the technology and consequently

also increased the amount of entrepreneurial opportunities for potential hardware and

software developers.

2. Organizational EnvironmentA quite distinct stream of literature has shown that the characteristics of the population

of existing organizations in an industry impacts entry opportunities. A central theme inthis literature is that the number of opportunities in a particular industry depends on

how crowded the industry already is. Being the very first to offer a product (or service)

might be risky because consumers and investors might not yet perceive the need for

such product. On the other hand, a crowded market generally presents fewer

opportunities. In general, new business opportunities depend on the presence of

overlapping suppliers (competitors) and the presence of complementary organizations.

For instance, new daycare centers tend to be more successful when they complement

existing centers covering a different age range4. Similarly, the local development of an

industry can be an important source of entrepreneurial opportunities because itfacilitates the acquisition of tacit knowledge, relevant social relationships, and

opportunities to build self-confidence5.

3. Demand Characteristics

One core insight of the literature focusing on demand in general and fashions in

particular is that it generally involves two opposite forces: one pushing toward

conformity and the other toward distinction6. Demand is therefore not only unstable,

but also never quite homogeneous: customer preferences are generally diverse enough

that parts of the market are always underserved. This is especially the case when the

supply is composed of a few large generalists providing highly standardized products orservices7. Tastes also evolve over time in a predictable manner8. For instance, customers

might consider that technical performance is most important for some time, and

suddenly switch their value ordering (for instance toward design or cost rather than

performance) once they are technologically satisfied9.

4. Institutional Context


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Entrepreneurial opportunities also depend on the institutional context. For instance,

researchers have documented that changes in policy regime and changes in the law can

have a dramatic impact on entrepreneurial opportunities. In their famous study of

railroads in Massachusetts, Dobbin and Dowd showed that entrepreneurial activity

increased when the state actively encouraged it financially, that it also increased whenthe state allowed cartels (which decreased competitive pressure), and that

entrepreneurship in the sector decreased when the state imposed anti-trust laws (which

increase competition)10. In addition, intellectual property regulation can significantly

alter entrepreneurial opportunities: countries innovation patterns and entrepreneurial

activities are systematically influenced by what can or cannot be patented11,12. Some

researchers have gone as far as suggesting that entrepreneurs simply choose to allocate

their efforts toward productive ends (like innovation) or destructive ones (like organized

crime), depending on the relative pay-offs offered by the society13. Technological

evolution, organizational environment, demand characteristics, and institutionalcontext are four paramount drivers of entrepreneurial opportunities. Entrepreneurs and

investors might find the proposed framework useful in guiding them in their search for

their next successful business idea(s). After all, as Louis Pasteur famously said, Chance

favors the prepared mind.

An Entrepreneuris someone who has the skills, passion and financial backing to

create wealth from new business opportunities and is willing to take full responsibility

for its success or failure.

AnIntrapreneuris someone who manages that business with entrepreneurial flare in

line with the expectations of the shareholders.

In 1992, The American Heritage Dictionaryacknowledged the popular use of a new

word, intrapreneur, to mean "A person within a large corporation who takes direct

responsibility for turning an idea into a profitable finished product through assertive

risk-taking and innovation". Intrapreneurship is now known as the practice of a

corporate management style that integrates risk-taking and innovation approaches,

as well as the reward and motivational techniques, that are more traditionally

thought of as being the province ofentrepreneurship.

Intrapreneurship refers to employee initiatives in organizations to undertake

something new, without being asked to do so."[5]Hence, the intrapreneurfocuses on
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innovation and creativity, and transforms an idea into a profitable venture, while

operating within the organizational environment. Thus, intrapreneurs

are Insideentrepreneurswho follow the goal of the organization. Intrapreneurship is

an example of motivation through job design, either formally or informally. (See

alsoCorporate Social Entrepreneurship:intrapreneurship within the firm which is

driven to produce social capital in addition to economic capital.) Employees, such as

marketing executives[6]or perhaps those engaged in a special project within a larger

firm, are encouraged to behave as entrepreneurs, even though they have the

resources, capabilities and security of the larger firm to draw upon. Capturing a little

of the dynamic nature of entrepreneurial management (trying things until successful,

learning from failures, attempting to conserve resources, etc.) adds to the potential

of an otherwise static organization, without exposing those employees to the risks or

accountability normally associated with entrepreneurial failure.

DIFFERENCE BETWEEN ENTREPRENEUR-

INTRAPRENEUR-TRADITIONAL MANAGER

ENTREPRENEUR

People who have a talent for seeing opportunities and the abilities to develop those

opportunities into profit-making businesses.

INTR PRENEUR

The practice of using entrepreneurial skills without taking off the risks or accountability

associated with entrepreneurial activities. It is practiced by employees within anestablished organization using a systemized business model.
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DESTINY ambitious but maybe fearful of others

ability to do him or

her in,

optimistic about

their ability to

outwit it.

FOCUS OFTTENTION

Primarily on

technology and

marketplace,

Both inside and

outside; sells

insiders on needs of

venture and market

place but also

focuses on

customers.

Primarily on events

inside corporation,

TTITUDETOW RDS RISK

Likes moderate risk;

invests heavily but

expects to succeed,

Like moderate risks;

generally not afraid

of being fired, so sees

little personal risk,

Cautions,

USE OF M RKETRESE RCH

Creates needs;

creates products that

often cannot be

tested with market

research; potential

customers do not yet

understand them;talks to customers

and forms own

opinion,

Does own market

research and

initiative market

evaluation, like the

entrepreneur.

Has market studies

done to discover

needs and guide

product

conceptualization,

Posted byManali at03:30

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Intrapreneurs vs Entrepreneurs

Entrepreneurs provide the spark. Intrapreneurs keep the flame going.

Entrepreneurs are found anywhere their vision takes them. Intrapreneurs

work within the confines of an organization.

Entrepreneurs face many hurdles, and are sometimes ridiculed and

riddled with setbacks. Intrapreneurs may sometimes have to deal with

conflict within the organization.

Entrepreneurs may find it difficult to get resources. Intrapreneurs have

their resources readily available to them.

Entrepreneurs may lose everything when they fail. Intrapreneurs still have

a paycheck to look forward to (at least for now) if they fail.

Entrepreneurs know the business on a macro scale. Intrapreneurs are

highly skilled and specialized.

What makes entrepreneurs and intrapreneur similar is the passion to see things

through to the end and the courage to face failure.

Corporate Entrepreneurs LLC is a professional services firm that is focused on helping

organizations develop corporate entrepreneurship (Intrapreneurship) as a core

competency to accelerate new business growth.

We work with individuals, innovation groups and the senior executive team to identify

and develop your organizations entrepreneurial competencies.

Activating Entrepreneurs. Corporate Entrepreneurs (intrapreneurs) are theengines of growth. We help you identify, develop and retain these individuals byenabling them to be more engaged, productive and innovative.

Developing Leaders. A lack of entrepreneurial leaders at the top of organizations

is stifling innovation and growth. We work with you to develop theentrepreneurial leadership competencies needed for growth.

Generating Growth. Increasing complexity and ambiguity make growth morechallenging. We show you how to accelerate new business growth by helping youbuild corporate entrepreneurship (Intrapreneurship) as a core competency.


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Entrepreneur Role and responsibilities

1. Part of the responsibilities an entrepreneur has when trying to successfully operate their

business is developing the traits and qualities of a good leader, qualities that inspire

confidence and trust from not only employees, but customers as well, and the

confidence they have that you know what your doing and trust that you will do what you

say you will do, in addition to other attributes any good leader must develop and use

before anyone willingly follows them.

2. To be a successful leader the entrepreneur must develop a clear and concise vision

needed to inspire people by giving them purpose and direction, and you will get the best

out of your team, since it is only natural for people to want to be part of a success story,

and it is the entrepreneurs task as a leader to show them how you can lead them there.

3. Developing a well thought out plan is critical to accomplish you vision, and the plan

doesnt have to be expansive and elaborate, but you need to clearly define the pathwhich you are going to lead the team on from point A to point B, in simple, clear concise

steps and be finally, the sure to assigned timelines with deadlines to each, step of the

process, and entrepreneur needs to make sure that everyone son board with the plan

and clearly understands not only their individual roles, but the, ole of the team as well,

to insure the teams and your success.

4. If you do not have the instinct, then you must develop the leadership attribute of

decisiveness, since no one wants-to follow someone who cant make up their own mind,

especially when it comes to what is, perceived as small decisions, and this doesnt

mean make acknowledgeable decisions, but first get as much wise input and counsel as

you can, and then make an educated decision you can live with and always be ready to

make new decisions based on additional information, and remember that informed

decisive decisions is a quality of a leader that others are willing to follow.

5. A successful entrepreneur is able to adapt and make adjustments in the ever changing

world of the marketplace, adaptation to new trends, technology, products, and

marketing strategies, always working with the plan in mind, and brainstorm with the

team ways you can best adapt to changes, implement the necessary changes with the

thought always in mind that the plan is a virtual living tool, not static doctrines that wouldactually be worthless if one could not adapt them to the ever changing marketplace.

6. Your role as an entrepreneur and leader is only as good as your word, and when it

comes to your word, keep it, as in if you tell someone working for you that you are going

to do something, then do it, and it is important to remember that it takes time to build the

integrity of ones word, and only a moment to undo all the work, as nothing destroys

trust and confidence like breaking your word, for which there is really no excuse.


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7. Genuine praise should be given whenever it is warranted, as it is important to keep high

morale for continued high performance, and avoid even the slightest temptation to give

false praise unless you want to lessen and diminish the work thats already been done.

8. Employees will always notice entrepreneurial leaders that are honest and fair-minded,

but they are even quicker to notice dishonest and biased behaviour, even the most

subtle displays, and great leaders avoid playing favourites and destroying the high

morale of the team, always working to build and maintain the successful team.

What is the Role of an Entrepreneur in EconomicDevelopment ?

The entrepreneur who is a business leader looks for ideas and puts them into effect in fosteringeconomic growth and development. Entrepreneurship is one of the most important input in the

economic development of a country. The entrepreneur acts as a trigger head to give spark to

economic activities by his entrepreneurial decisions. He plays a pivotal role not only in the

development of industrial sector of a country but also in the development of farm and service sector.

The major roles played by an entrepreneur in the economic development of an economy is discussed

in a systematic and orderly manner as follows.

(1) Promotes Capital Formation:

Entrepreneurs promote capital formation by mobilising the idle savings of public. They employ their

own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial

activities lead to value addition and creation of wealth, which is very essential for the industrial and

economic development of the country.

(2) Creates Large-Scale Employment Opportunities:

Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic

problem of underdeveloped nations. With the setting up.of more and more units by entrepreneurs,

both on small and large-scale numerous job opportunities are created for others. As time passes,

these enterprises grow, providing direct and indirect employment opportunities to many more. In

this way, entrepreneurs play an effective role in reducing the problem of unemployment in thecountry which in turn clears the path towards economic development of the nation.

(3) Promotes Balanced Regional Development:

Entrepreneurs help to remove regional disparities through setting up of industries in less developed

and backward areas. The growth of industries and business in these areas lead to a large number of

public benefits like road transport, health, education, entertainment, etc. Setting up of more


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industries lead to more development of backward regions and thereby promotes balanced regional

development.

(4) Reduces Concentration of Economic Power:

Economic power is the natural outcome of industrial and business activity. Industrial developmentnormally lead to concentration of economic power in the hands of a few individuals which results in

the growth of monopolies. In order to redress this problem a large number of entrepreneurs need to

be developed, which will help reduce the concentration of economic power amongst the population.

(5) Wealth Creation and Distribution:

It stimulates equitable redistribution of wealth and income in the interest of the country to more

people and geographic areas, thus giving benefit to larger sections of the society. Entrepreneurial

activities also generate more activities and give a multiplier effect in the economy.

(6) Increasing Gross National Product and Per Capita Income:

Entrepreneurs are always on the look out for opportunities. They explore and exploit opportunities,,

encourage effective resource mobilisation of capital and skill, bring in new products and services and

develops markets for growth of the economy. In this way, they help increasing gross national product

as well as per capita income of the people in a country. Increase in gross national product and per

capita income of the people in a country, is a sign of economic growth.

(6) Improvement in the Standard of Living:

Increase in the standard of living of the people is a characteristic feature of economic development of

the country. Entrepreneurs play a key role in increasing the standard of living of the people by

adopting latest innovations in the production of wide variety of goods and services in large scale that

too at a lower cost. This enables the people to avail better quality goods at lower prices which results

in the improvement of their standard of living.

(7) Promotes Country's Export Trade:

Entrepreneurs help in promoting a country's export-trade, which is an important ingredient of

economic development. They produce goods and services in large scale for the purpose earning huge

amount of foreign exchange from export in order to combat the import dues requirement. Hence

import substitution and export promotion ensure economic independence and development.

(8) Induces Backward and Forward Linkages:

Entrepreneurs like to work in an environment of change and try to maximise profits by innovation.

When an enterprise is established in accordance with the changing technology, it induces backward

and forward linkages which stimulate the process of economic development in the country.


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(9) Facilitates Overall Development:

Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise is

established, the process of industrialisation is set in motion. This unit will generate demand for

various types of units required by it and there will be so many other units which require the output of

this unit. This leads to overall development of an area due to increase in demand and setting up of

more and more units. In this way, the entrepreneurs multiply their entrepreneurial activities, thus

creating an environment of enthusiasm and conveying an impetus for overall development of the

area.

Business Mindset Finance Management Sales & Marketing Social Media Moreo Technology

20 Reasons Why Entrepreneurs Fail

1. No Clear Cut Vision

The easiest way to fail as a business person is to set out to do business without a clear cut vision.

Your vision and mission helps you stay focused and on-track at all times.

2. Improper Management Of Finance

Entrepreneurs fail when they divert the money for their business to personal use. Adequate financial

knowledge is necessary to effectively manage and run your business. When you start out with little

or no knowledge in this regard, you are bound to fail.

3. Lack of Time Management Skills

If you do not manage your time well, you are sure headed for failure. Time management skill is

important if you want to be successful as an entrepreneur. Forming a habit around keeping

andmaximizing time is highly needful.

4. Allowing Family & Friends To Interfere

When you consistently allow family and friends to interfere in your business decision, it might likelyruin your business. As much as lies within your power, you must keep family and friends at bay.

5. Not Keeping Your Business Secret
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Every business owner must keep his business secret to himself and if possible with some few

selected trusted partners. When you make your business secret common place, other people may

likely copy it and in no time you will be thrown out of your industry.

6. Lack of Management Skills

Lack of managerial skills can ruin any business. Every entrepreneur must seek to always upgrade

and refresh their management skills if they indeed run their venture well.

7.Not Hiring The Right People

When you hire the wrong people for the job, it spells doom. There is a whole lot of calamity that

could befall yourbrand.Make it a point of duty to hire the best hands.

8. Disregard For Business Etiquette

When you disrespect business etiquette, you are heading for failure. You must obey the ethics of the

profession you belong to. There is no rob Peter to payPaulstyle when adhering strictly to business

ethics comes to play.

9. Not Focusing on Your Core Products

It is good to have an idea of a lot of things, but it pays to master a few things. One of the recipe for

failure as an entrepreneur is to be a Jack of all trades and Master of none. You have to takethe bull

by the horn, and carve a niche in your particular area of interest.

10. Wrong Business Decision

Wrong business decision is one of the major reasons why entrepreneurs fail. To be successful as anentrepreneur, you must master the art of making right decision promptly. If the decisions you make

constantly bring in positive results, then youre on the right track.

11. Wrong Financial Investment

It is very good to re-invest part of your profit to your business; but any wrong financial investment

can drain the capital of your business. Remember, your capital is the life-line of your business, guard

it with all youve got.

12. Not Paying Attention To Quality & Excellence

When you fail to pay attention to quality and excellence, you are planning to fail as an entrepreneur.

People will always seek quality and excellence; to remain in business, you must continue to give it to

them without abating.

13. Lack of Regard And Respect For Customers
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Having customers patronize you is the number one reason why you are in business as an

entrepreneur. If you are fond of treating your customers badly, then be rest assured youll be out of

business soon.

14. Not Paying Attention To Your Health

It is only those that are healthy and alive that would want to do business. If you dont work hard to

remain healthy, it means youll be out of business sooner than you expect. Your health is key to the

success of your brand.

15. Over Promising and Under Delivering

Some entrepreneurs think that over promising is what makes advertising sweet. When you

consistently over- promise and you dont have the capacity to always deliver, be sure that your

customers will become weary of you and they are likely to leave you soon.

16. Working With The Wrong Values

It is very important to work with the right set of values as an entrepreneur. When you work with

wrong values, you are sure headed for failure. Your values define how you do your business and its

very easy for your customers to notice your values from the way you do business with them.

17. Inconsistency and Lack of Honesty

People dont like doing business with anyone who is inconsistent and lacks honesty. You can hardly

survive in the business world if you are not consistent. Honesty builds trust, consistency encourages

value.

18. Being Over Ambitious

It is good to be ambitious, but when you become over-ambitious as a business person, you will be

tempted to want to cut corners and that will surely lead to your down fall.

19. Mixing Emotion With Business

When you are fond of mixing emotion with business, it will sure affect some of your key business

decisions and it can affect your business negatively. If youre having personal emotional issues,

solve them and dont mix them with business activities; theyll do more harm than good.

20. Doing Everything Yourself


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The fact that you are the owner of the business and you want to maximize profits doesnt mean you

can do everything yourself. Learn to delegate and outsource when necessary, if you truly wants to

avoid failure.

Nobody decides to fail at anything in life. It is the inability to follow through some principles that

causes failure. As an entrepreneur you must be ready at all time to make adjustments in areas

where you know you arent living up to expectation.

On the other hand, if you have tried to be your best, you can get better so that you will be counted

amongst the very best of brands.

MAINTAING COMPETITIVE ADVANTAGE

1Your target market is a specific group of consumers at which a company aims

its products and services (Entrepreneur).A target market is distinguished by

socioeconomic, demographic, and common characteristics or needs that make them the

best audience to focus on selling to. To uncover Find out which businesses are going

after your same target market. How do they differentiate themselves from other

companies in the industry? Where are they located? To find this information, business

directories can be used to search free company profiles. Information included in the

company profiles are company overview, contact information, location, key facts,employees, and company payment rating.

2Learn from your competition and your customers.Dont be afraid of your

competition, but rather use them as a learning tool and assess their business model.

Learn your competitors strengths and weaknesses imitate their strengths, and use

their weaknesses to your advantage. Use companies that specialize in business

information, such as Cortera, to construct and analyze a competitive landscape of the

target market. The business information you learn from your rivals will help you develop

the competitive edge you need to surpass them in your industry. Intimate customer

knowledge is equally important as competitor knowledge. Gaining in-depth insights

about your customer portfolio will allow you to maximize revenue potential, increase

customer retention, and boost prospective customers. You can use a mix of many tools

and methods to measure consumer insight and both your position in the market and the

positions of your competitors. Along with traditional company information resources,


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considersocial media analysistools that allow consumer insight mining on a large

scale.

3Create an Economic Moat.Take advantage of barriers to entry into the market,

using them to dissuade competitors from challenging your marketing share. In some

cases, an established companys ability to manipulate hurdles to enter and compete in

its market becomes an effective tool against new competition, further entrenching the

business and preserving its profit potential for the foreseeable future.

4Stay on the cutting edge.Once youve gained a competitive advantage, your work is

far from complete. To be successful, you will need to continuously maintain yourcompetitive advantage. After all, your competitors are not going to sit back and allow

you to steal their market share. You can maintain your competitive advantage by

predicting future trends in your industry, constantly researching and monitoring your

competitors, and adapting to your customers wants and needs. Sometimes you may

need to take chances to keep ahead of the pack and differentiate your business, but

with big risk often comes big rewardJust remember to do your research before diving

head first into new ideas.

5Use Business Information Resources.The information revolution is heretakeadvantage of it! It creates a competitive advantage by providing companies with new

ways to outperform their rivals. Knowledge is power, and business information

companies provide just that. Reliable business information companies include Cortera,

Hoovers, Manta, Portfolio.com, and Goliath.

What Is Entrepreneurial Culture?Answer

An entrepreneurial culture refers to a system of shared values, beliefs and norms of members ofan organization, including valuing creativity and tolerance of creative people, believing that

innovating and seizing market opportunities are appropriate behaviours to deal with problems

of survival and prosperity, environmental uncertainty, competitors, threats and expecting

organizational members to behave accordingly.
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ENTREPRENEURSHIP AND ENTREPRENEURIAL CULTURE

Entrepreneurial culture can be made to enable democratisation of the capacity to create and manage

(business) towards wealth creation, thereby eradicating poverty.

When people are empowered to create and manage their own businesses,

wealth creation is possible;

jobs are created;

individual and collective well being becomes a reality; and

it becomes easier for the State to better redistribute wealth to those who cannot work

(disabilities for instance) when all those who can work are empowered to do so.

Earlier definitions of entrepreneurship have referred to creation and running of innovative businesses

by people sharing a number of characteristics. Broadly speaking, entrepreneurship also includes

innovative positive social interventions (to be dealt with under Social Entrepreneurship in a later Unit).

Culture refers to attitudes and values which in the case of entrepreneurship may be linked with

autonomy, creativity and sense of responsibility (soft skills) and so on. It also refers to entrepreneurial

knowledge and skills and management competencies which have to be acquired (hard skills).

The hard aspects of culture apply to entrepreneurship because without them, an entrepreneurial

culture would not develop into a tangible act.

According to David Mc Clelland (1961), an entrepreneur is a dynamic person who takes calculated

risks. This definition has a behaviourist orientation.

Fillion (1990) defines the entrepreneur as someone who imagines, develops and realises a vision. Ineconomic terms, one may define an entrepreneur as someone who combines resources in such a way

as to add value.

A psychologists point of view may be that: an entrepreneur is someone who feels the need to

accomplish something, to realise his/her potential or to become his own boss.

Across all above definitions, there is a recurrence of underlying notions like: vision, value creation,

innovation, risk-taking and self-accomplishment.

Having reviewed the characteristics of entrepreneurs, one is tempted to conclude that an entrepreneur

is a product of his/her particular environment. Several authors have shown that entrepreneurs reflectthe characteristics of the time and place where they have evolved (Toulouse, 1990). The cultures, the

needs and the habits of a particular country or region shape the behaviour of entrepreneurs.

Obviously enough, with the falling of frontiers (both geographical and psychological) entrepreneurs

exert an influence that goes far beyond their own countries and/or regions.

Entrepreneurial Culture


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Culture can be defined as the mix of norms, values and beliefs that are shared by a particular

community [be it a business community, a cultural (or ethnic) community, a country, or a

geographical region].

Cultural Values

Linton (1975) describes values as a predisposition to act in a certain way.

Values of entrepreneurs:

According to Sexton & Bowman (1986), entrepreneurship is a value in itself for Americans. Different

authors suggest different values for entrepreneurs:

Kets de Vries (1984): reputation, power, status and recognition

Gordon Survey of values (1976): independence, efficacy and a negative reaction to affiliation.

There is a general presumption that a society may have potential entrepreneurs, but only becomes

entrepreneurial if it has a culture that supports innovation and initiative.

Cultural Attitudes

According to J. M. Toulouse (1990), entrepreneurial culture is favoured by the following set of

attitudes:

1. Business activities are valued.

2. Individual and collective initiatives are highly rated.

3. Determination and perseverance are desirable qualities.

4. An equilibrium between security and risk is accepted.

5. The tension between stability and change is resolved.

Therefore, in a society favouring entrepreneurship, entrepreneurs are role models who are not only

acceptable, but desirable.

Learning Activity 1

In such societies, challenges are regarded as opportunities (and not threats). In societies where

entrepreneurship is absent, business challenges are left to be taken care of by foreign investors. On

the other hand, within entrepreneurial cultures, people will find inspiration in challenges. These will

enable them to act and find ways to exploit existing opportunities. An example of lack of

entrepreneurial culture in a given country is where the business community believes that government

is going to take charge of all their problems.

An entrepreneurial culture is supported by people who have a strong belief in their projects, who will

invest their physical, psychological and other resources (also including those of others!) in their

venture with a view to succeed.
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Decision is taken out of reasonable certainty and out of a positive balance of probabilities based on

available information. A community favouring experimentation, R & D and innovation, has a culture

associated with risk taking. Entrepreneurship reconciles risk and security.

Starting a small business entails risks, but is also a source of gratification for the successful

entrepreneurs.

Entrepreneurship has the potential to bring positive changes, both to the individual or collective

entrepreneur and to society as a whole. Entrepreneurs are change agents who can alter a given

situation and give society a product or service that can transform their behaviours and ways of living.

Hence, a society that favours status-quo and offers resistance to change does not display a culture

conducive to entrepreneurship.

Similarly, a business organisation that resists change will ultimately have to face its own

obsolescence.

According to Fortin (2003), entrepreneurial culture can be rooted in a society through four main

avenues:

- the family;

- education;

- existing business organisations; and

- local and national authorities and leaders.

Promoting an Entrepreneurial Culture within the Community

The conditions required for establishing an Entrepreneurial Culture are:

Identification and promotion of Role Models: Women entrepreneurs, for example the ladies who

lost their jobs in the textile sector and created Charmin Sud, a rural women entrepreneur

partnership. They came on television to explain how being laid off from an ailing textile industry was

for them a blessing in disguise. It allowed them to unveil their entrepreneurial potential and leadership

abilities.

Role of media: For instance, in the promotion of Entrepreneurship as a business model. Until

recently, the local TV ran a weekly documentary: Portrait dElle, in which a local women entrepreneur

was portrayed as to her new place in society as an economic (and social) agent. Similarly, a few

newspapers reserve a page regularly to promote entrepreneurial initiatives.

The Education system: Entrepreneurship modules in the curriculum at different levels.

Entrepreneurship education is now beginning to be anchored in tertiary education curricula. We have

now moved past the old paradigm whereby entrepreneurship was to be taught only in Business

faculties. The present Super GEM is a living example of the new paradigm whereby the subject is

available to all undergraduates from all fields. An IT student, a Fashion & Design student and all the

others in fact, need to know the basic business and entrepreneurship skills that are required to start a

business or to act entrepreneurially, to lead and innovate in their employer organisations.


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Period of Incubation: Entrepreneurship development programmes spread over a period of time (and

not one off initiatives). Initiatives like La semaine de lEntrepreneuriat are beneficial for general

awareness, but the enthusiasm soon dies away after the caravan has left. What is truly beneficial for

culture change is a planned process that uses all the avenues mentioned in this section over a longer

period with set objectives and performance targets. In Finland, entrepreneurship and entrepreneurial

culture developed as a result of a planned Entrepreneurship decade, that is, ten years of culturalchange. This can take the form of entrepreneurship education starting at primary or secondary

education level, targeting rural women with a Microcredit scheme and so on.

Participation of leaders (political, business, opinion): Political and religious leaders to promote

entrepreneurship as a solution to current economic problems. As mentioned earlier under leadership,

a strong, charismatic leadership is required to transform a community. To change the mentality from

qualifying to get a government job to taking charge of oneself by being self employed requires

psychological push that can be facilitated by people who can influence the community. The first

people to come to our mind are the political, social and religious leaders.

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Lecture 3

CLASSIFICATION OF ENTREPRENEURS

I. According to the Type of BusinessEntrepreneurs are found in various types of business coronations of varying size. We maybroadly classify them as follows:

Business Entrepreneur:Business entrepreneurs are individuals who conceive an idea for a new product or service

and-then creates a business to materialize their idea into reality. They tap both production and

marketing resources in their search to develop a new business opportunity. They may set up a.big establishment or a small business unit. They are called small business entrepreneurs when

found in small business units such as printing press, textile processing house, advertisingagency; readymade garments, or confectionery. In a majority of cases, entrepreneurs are found insmall trading and manufacturing business and entrepreneurship flourishes when the size of the

business is small.

Trading Entrepreneur:Trading entrepreneur is one who undertakes trading activities and is not concerned withthe manufacturing work. He identifies potential markets, stimulates demand for his product line

and creates a desire and interest among buyers to go in for his product. He is engaged in both

domestic and overseas trade. Britain, due to geographical limitations, has developed tradethrough trading entrepreneurs. These entrepreneurs demonstrate their ability in pushing many

ideas ahead to promote their business.

Industrial Entrepreneur:Industrial entrepreneur is essentially a manufacturer, who identifies the potential needsof customers and tailors a product or service to meet the marketing needs. He is a product-oriented man who starts in an industrial unit because of the possibility of making some new

product. The entrepreneur has the ability to convert economic resources and technology into a

considerably profitable venture. He is found in industrial units as the electronic industry, textileunits, machine tools or videocassette tape factory and the like.

Corporate Entrepreneur:


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Corporate entrepreneur is a person .who demonstrates his innovative skill in organizingand managing corporate undertaking. A corporate undertaking is a form of business

organization, which is registered under some statute or Act, which gives it a separate legal entity.

A trust registered under the Trust Act, or companies registered under the Companies Act areexample of corporate undertakings. A corporate entrepreneur is thus an individual who plans,develops and manages a corporate body.

Agricultural Entrepreneur:Agricultural entrepreneurs are those entrepreneurs who undertake agricultural activitiesas raising and marketing of crops, fertilisers and other inputs of agriculture. They are motivated

to raise agriculture through mechanization, irrigation and application of technologies for dry land

agriculture products. They cover a broad spectrum of the agricultural sector and include its allied

occupations.

II. According to the Technology useThe application of new technology in various succors of the national economy is essential

for the future growth of business. We may broadly classify these. entrepreneurs on the basis ofthe use of technology as follows:

Technical Entrepreneur:A technical entrepreneur is essentially compared to a craftsman. He develops improved

quality of goods because of his craftsmanship. He concentrates more on production thanmarketing. On not much sales generation by and does not do various sales promotional

techniques. He demonstrates his innovative capabilities in matter of production of goods and

rendering of services. The greatest strength, which the technical entrepreneur has, is his skill in

production techniques.

Non-technical Entrepreneur:Non-technical entrepreneurs are those who are not concerned with the technical aspects

of the product in which they deal. They are concerned only with developing alternativemarketing and distribution strategies to promote their business.

Professional Entrepreneur:Professional entrepreneur is a person who is interested in establishing a business, but

does not have interest in managing or operating it once it is established. A professional

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entrepreneur sells out the running business and starts another venture with the sales proceeds.Such an entrepreneur is dynamic and he conceives new ideas to develop alternative projects.

III. According to the Entrepreneur and MotivationMotivation is the force that influences the efforts of the entrepreneur to achieve his

objectives. An entrepreneur is motivated to achieve or prove his excellence in job performance.He is also motivated to influence others by demonstrating his business acumen.

Pure EntrepreneurA pure entrepreneur is an individual who is motivated by psychological and economic

rewards. He undertakes an entrepreneurial activity for his personal satisfaction in work, ego orstatus.

Induced EntrepreneurInduced entrepreneur is one who is induced to take up an entrepreneurial task due to the


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policy measures of the government that provides assistance, Incentives, concessions and

necessary overhead, facilities to start a venture. Most of the induced entrepreneurs enter business

due to financial, technical and several other facilities provided to them by the state agencies topromote entrepreneurship. A person with a sound project is provided package assistance to his

project. Today, import restriction and allocation to production quotas to mall units have induced

many people to start a small-scale industry.Motivated EntrepreneurNew entrepreneurs are motivated by the desire for self-fulfillment. They come into being

because of the possibility of making and marketing some new product for the use of consumers.

If the product is developed to a saleable stage, the entrepreneur is further motivated by reward interms of profit.

Spontaneous EntrepreneurThese entrepreneurs start their business their by Entrepreneur. They are persons with

initiative, boldness and confidence in their_- ability, which activate, them, underageentrepreneurial activity. Such entrepreneurs have a strong conviction and confidence in their

inborn ability.

IV. According to the Growth and EntrepreneursThe development of a new venture has a greater chance of success. The entrepreneurs anew and open field of business. The customers approval to the new product gives them

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psychological satisfaction and enormous profit. The industrial units are identified as units of high

growth, medium growth and low growth industries and as such we have Growth Entrepreneur

and Super-Growth Entrepreneur.

Growth Entrepreneur:Growth entrepreneurs are those who necessarily take up a high growth industry, whichhas substantial growth prospects.

Super-Growth Entrepreneur:Super-growth entrepreneurs are those who have shown enormous growth of performancein their venture. The growth performance is identified by the liquidity of funds, profitability and

gearing.

V. According to the Entrepreneur and Stages of DevelopmentEntrepreneurs may also be classified as the first generation entrepreneur, modern

entrepreneur and classical entrepreneur depending upon the stage of development.

They are explained below:

First-Generation Entrepreneur:A first-generation entrepreneur is one who starts an. industrial unit by innovative skill.

He is essentially an innovator, combining different technologies to produce a marketable product

or service. .Modern Entrepreneur:A modern entrepreneur is one who undertakes those ventures, which go well along with

the changing demand in the market. They undertake those ventures, which suit the current

marketing needs.

Classical Entrepreneur:

A classical entrepreneur is one who is concerned with the customers and marketing needs

through the development of a self-supporting venture. He is a stereotype entrepreneur whose aim


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is to maximise his economic returns at a level consistent with the survival of the firm with or

without an element of growth.

VI. OthersInnovating entrepreneurship is characterized by aggressive assemblage in information

and analysis of results, deriving from a novel combination of factors. Men / women in this group

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are generally aggressive in experimentation who exhibit cleverness in putting attractive

possibilities into practice. One need not invent but convert even old established products or

services by changing their utility, their value, and their economic characteristics into somethingnew, attractive and utilitarian. Therein lies the key to their phenomenal success. Such an

entrepreneur is one who sees the opportunity for introducing a new technique of production

process or a new commodity or a new market or a new service or even the reorganization of an

existing enterprise

Entrepre Preneur

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