ENTREPRENEUR
Meaning - An entrepreneur is an individual who creates a new business, bearing most of the risks
and enjoying most of the rewards. The process of setting up a business is known
as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas,
goods, services, and business/or procedures.
•A person who undertakes the risk of starting a new business venture is called an entrepreneur.
•An entrepreneur creates a firm to realize their idea, known as entrepreneurship, which
aggregates capital and labor in order to produce goods or services for profit.
•Entrepreneurship is highly risky but also can be highly rewarding, as it serves to generate
economic wealth, growth, and innovation.
•Ensuring funding is key for entrepreneurs: Financing resources include SBA loans and
crowdfunding.
•The way entrepreneurs file and pay taxes will depend on how the business is set up in terms of
structure.
EVOLUTION OF AN ENTREPRENEUR
IMPORTANCE OF ENTREPRENEURSHIP
. Entrepreneurship Accelerates Economic Growth
Entrepreneurs are important to market economies because they can act as the wheels
of the economic growth of the country.
By creating new products and services, they stimulate new employment, which
ultimately results in the acceleration of economic development. So public policy that
encourages and supports entrepreneurship should be considered important for
economic growth.
A large number of new jobs and opportunities are created by entrepreneurship.
Entrepreneurship creates a huge amount of entry-level jobs that are very much
important to turn unskilled jobholders into skilled ones. It also prepares and provides
experienced workers to large industries. The increase in the total employment of a
country largely depends on the rise of entrepreneurship. So the role of entrepreneurship
in creating new job opportunities is huge.
By bringing innovation to every aspect of businesses, entrepreneurial ventures enhance
production utilizing the existing resources in the most effective ways.
Entrepreneurs develop new markets by introducing new and improved products,
services, and technology. Thus, they help generate new wealth and add more to the
national income. So the government can offer the citizens more national benefits.
2. Entrepreneurship Promotes Innovation
Through the right practices of research and development, entrepreneurs
bring new innovation that opens the door of new ventures, markets,
products, and technology. Entrepreneurs have a role to play in solving
problems that existing products and technology have not yet
solved. So by producing new products and services or bringing innovation
to existing products and services, entrepreneurship has the potential to
improve people
3. Entrepreneurship Can Promote Social Changes
Entrepreneurs change or break the tradition or cultures of society and reduce the
dependency on obsolete methods, systems, and technologies. Basically,
entrepreneurs are the pioneer of bringing new technologies and systems that
ultimately bring changes to society. These changes are associated with improved
lifestyle, generous thinking, better morale, and higher economic choice. In this way,
social changes gradually impact national and global changes. So the importance of
social entrepreneurship must be appreciated.
At Duke, the Innovation and Entrepreneurship Initiative has a special program aimed
specifically at Social Innovation. The program is “building upon and extending the
strengths of the university to create a transformational learning
environment to inspire, prepare, and support entrepreneurial leaders and
scholars to turn knowledge into action in pursuing innovative solutions to
the world’s most pressing problems.”
For example, one of the most recent projects of the initiative is the
Duke-UNICEF Innovation Accelerator, which is focused on entrepreneurship for
menstrual health and hygiene for women and girls in vulnerable communities in three
African countries.
4. Entrepreneurship Promotes Research and Industrial Development
Along with producing new business ideas and thinking out of the box, entrepreneurs
also promote research and development. They cultivate their ideas, shape them into a
new form, and turn them into a successful business endeavor.
Entrepreneurs are a special kind of people, they are always working to discover new
ideas and improve existing ones. But their impact extends beyond their own
companies and ventures: when an entrepreneur develops a new product, service, or
idea, others often follow (and sometimes even further refine the ideas).
Innovation and industry is accelerated through the combined action of
entrepreneurs. They can motivate each other, share ideas and inspiration, and share
planning to establish new industries. The change of the existing industrial climate
opens the doors for others at the same time. Therefore, we see that the importance of
entrepreneurship to the economy is multi-functional.
5. Entrepreneurship Develops and Improves Existing Enterprises
We often think of entrepreneurs as inventing totally new products and ideas, but they
also impact existing business. Since entrepreneurs think differently, they can come up
with innovative ways to expand and develop the existing enterprises. For example,
modernizing production processes, implementing new technology in the overall
distribution and marketing processes, and helping the existing enterprises to utilize
existing resources in more efficient ways.
To sum up, supporting and promoting entrepreneurship can have a positive impact on
the country’s economy and even existing businesses, and social entrepreneurship
increases the likelihood of finding innovation solutions to social challenges faced by
communities around the world.
QUALITIES AND TRAITS
OF ENTREPRENEURSHIP
oard Characteristics Qualities or Traits
1.Confidence
2.Independence
1. Self Confidence
3.Individuality
4.Optimism
5.Need for achievement
6.Profit-oriented
7.Persistent
8.Perseverance
2. Task or Result Oriented 9.Hard work
10.Drive
11.Energy
12.Determination
13.Initiative
3. Risk Taker 14.Risk-taking ability
15.Like challenges
16.Leadership behavior
4. Leadership 17.Gets along well with others
18.Responsive to suggestions and criticism.
19.Innovative
20.Creative
21.Flexible
5. Originality
22.Resourceful
23.Versatile
24.Knowledge
6. Future-Oriented 25.Foresight
26.Perceptive
TYPES OF ENTRPRENEURSHIP
A. Small Business Entrepreneurship:
B. Scalable Startup Entrepreneurship:
C. Large Company Entrepreneurship:
D. Social Entrepreneurship:
INTRAPRENEURSHIP
Firstly, Gifford Pinchot first introduced us to the intra-corporate entrepreneur in 1973. It was later revised intrapreneur. In 1992, this term was officially
recognized. Additionally, the American Heritage Dictionary was given a definition. Accordingly, a person who belongs to a large corporation and takes direct
responsibility for profit maximization through assertive risk-taking and innovation is called intrapreneurship.
2. Technopreneurship:
Secondly, if we break the Tehnopreneurship term, we can find two separate words, one Technology, and another Entrepreneurship. It is a synthesis process
in engineering the future of a person, a group, an organization, an ethnicity, a nation, and the world. , an entrepreneur takes his all-action technology-based.
It is called technopreneurship.
. Transpreneurship:
Thirdly, when transgender and Hijra come up with some small businesses to shine their living life, it is called transpreneurship. It operates with the third
gender in which a person does not include beggars or sex workers.
Anam Prem of Mumbai in India is a well-known example of transpreneurship.
4. Netpreneurship:
Fourthly, Cyberpreneurship and E-Entrepreneurship are the alternative names for Netpreneurship. According to the Longman Dictionary of Contemporary
English, Netpreneur is an individual who delivers products and services after creating through online mode.
5. Agripreneurship:
Fifthly, Agriculture, and Entrepreneurship; these two words make together Agripreneurship. It is an agricultural-based concept that covers altering an idea or
vision into a new business.
Plant Clinics, Spin Farming, Herbal Processing Units, and Rantachook are also examples of agripreneurship.
6. Ecopreneurship:
Sixthly, Green Entrepreneurship and environmental entrepreneurship are other names of ecopreneurship. It is such ecopreneurship that interests positively from
an environmentally responsible perspective.
Place Perspective Categories of
Entrepreneurship:
. Domestic Entrepreneurship:
In the domestic entrepreneurship of entrepreneurship forms, the entrepreneur creates goods and delivers services within a specific nation or country. They
have to follow all existing rules and regulations of that government.
For example, Dog Walking, Freelancing, House Cleaning writing, etc.
2. State Entrepreneurship:
In the types of entrepreneurship, state entrepreneurship operates and manages the whole government of the state. Only state; not a single entrepreneur
undertakes all industrial ventures as well as trading.
International Entrepreneurship:
Of the varieties of entrepreneurship, international entrepreneurship is the most attractive one. When an entrepreneur’s conducting business activities across
national boundaries, it is called international entrepreneurship.
Besides these entrepreneurship types, we can categorize entrepreneurship in different ways—for
instance, demographic types, economic types, ethical types, etc. However, there are mentioned more
names of such entrepreneurship types. Such as:-
1.Public Entrepreneurship: Public entrepreneurship is the process by which new ideas are
generated and implemented in the public sector.
2.Private Entrepreneurship: The private entrepreneur is the simplest and lightest company form. As
a private entrepreneur, you can engage in business activities alone, with your spouse, or with your
children and grandchildren under the age of eighteen.
3.Individual Entrepreneurship: In individual entrepreneurship, a business is conducted by one
person who has ownership over his property and the proper rights to use and dispose of it in order to
start a business.
4.Mass Entrepreneurship: Mass entrepreneurship refers to the millions of small businesses that
exist in every community, meeting local needs with local resources.
5.Acquisitive Entrepreneurship: Entrepreneurship involves acquiring wealth or reaching your
competitors’ level of competence. This characteristic helps entrepreneurs succeed in a highly
competitive environment.
6.Joint Entrepreneurship: The collaboration of a group of people who jointly take on the risks and
responsibilities of ownership and management of a business is called joint entrepreneurship.
7.Trading Entrepreneurship: A trading entrepreneur provides a service by searching for new
markets, stimulating demand for his product line, and creating a desire and interest among buyers to
go in for that product. He trades both domestically and overseas.
8.Commercial Entrepreneurship: Commercial entrepreneurship is where an entrepreneur uses
private capital to engage in market-based exchanges, with the intention of making money.
ROLE OF ENTREPRENEURSHIP
1 Wealth Creation and Sharing: By establishing the
business entity, entrepreneurs invest their own resources and
attract capital (in the form of debt, equity, etc.) from
investors, lenders and the public. This mobilizes public wealth
and allows people to benefit from the success of
entrepreneurs and growing businesses. This kind of pooled
capital that results in wealth creation and distribution is one of
the basic imperatives and goals of economic.
2 Create Jobs: Entrepreneurs are by nature and definition
job creators, as opposed to job seekers. The simple translation
is that when you become an entrepreneur, there is one less
job seeker in the economy, and then you provide employment
for multiple other job seekers. This kind of job creation by new
and existing businesses is again is one of the basic goals of
economic development. This is why the Govt. of India has
launched initiatives such as StartupIndia to promote and
support new startups, and also others like the Make in
India initiative to attract foreign companies and their FDI into
the Indian economy. All this in turn creates a lot of job
opportunities, and is helping in augmenting our standards to a
3. Balanced Regional Development: Entrepreneurs setting up new
businesses and industrial units help with regional development by
locating in less developed and backward areas. The growth of industries
and business in these areas leads to infrastructure improvements like
better roads and rail links, airports, stable electricity and water supply,
schools, hospitals, shopping malls and other public and private services
that would not otherwise be available.
Every new business that locates in a less developed area will create
both direct and indirect jobs, helping lift regional economies in many
different ways. The combined spending by all the new employees of the
new businesses and the supporting jobs in other businesses adds to the
local and regional economic output. Both central and state governments
promote this kind of regional development by providing registered
MSME businesses various benefits and concessions.
4. GDP and Per Capita Income: India’s MSME sector, comprised of 36
million units that provide employment for more than 80 million people,
now accounts for over 37% of the country’s GDP. Each new addition to
these 36 million units makes use of even more resources like land, labor
and capital to develop products and services that add to the national
income, national product and per capita income of the country. This
growth in GDP and per capita income is again one of the essential goals
of economic development.
5. Standard of Living: Increase in the standard of living of people in a community is
yet another key goal of economic development. Entrepreneurs again play a key role in
increasing the standard of living in a community. They do this not just by creating jobs,
but also by developing and adopting innovations that lead to improvements in the
quality of life of their employees, customers, and other stakeholders in the community.
For example, automation that reduces production costs and enables faster production
will make a business unit more productive, while also providing its customers with the
same goods at lower prices.
6. Exports: Any growing business will eventually want to get started with exports to
expand their business to foreign markets. This is an important ingredient of economic
development since it provides access to bigger markets, and leads to currency inflows
and access to the latest cutting-edge technologies and processes being used in more
developed foreign markets. Another key benefit is that this expansion that leads to more
stable business revenue during economic downturns in the local economy.
7. Community Development: Economic development doesn’t always translate into
community development. Community development requires infrastructure for education
and training, healthcare, and other public services. For example, you need highly
educated and skilled workers in a community to attract new businesses. If there are
educational institutions, technical training schools and internship opportunities, that will
help build the pool of educated and skilled workers.
A good example of how this kind of community development can be promoted is Azim
Hashim Premji, Chairman of Wipro Limited, who donated Rs. 27,514 crores for promoting
education through the Azim Premji Foundation. This foundation works with more
ENTREPRENEURSHIP ENVIRONMENT
•Entrepreneurship environment refers to the various facets within which
enterprises- big, medium, small and other have to operate. The environment
therefore, influences the enterprise. By and large, an environment created
by political, social, economic, national, legal forces, etc influences
entrepreneurship.
•Entrepreneurial environment is broadly classified into six important
segments, namely, (1) Political environment, (2) Economic environment, (3)
Social environment, (4) Technological environment, (5) Legal environment,
and (6) Cultural environment
Environment
•Political-Political Atmosphere, Quality of Leadership
•Economic-Economic Policies, Labour, Trade, Tariffs, Incentives, Subsidies
•Social-Consumer, Labour, Attitudes, Opinions, Motives
•Technological-Competition And Risk, Efficiency, Productivity, Profitability
•Legal-Rules, Regulations
•Cultural-Structure, Aspirations And Values
STAGES IN
ENTREPRENEURIAL
PROCESS
DIGITAL ENTREPRENEURSHIP –
Digital entrepreneurship is a term that describes how
entrepreneurship will change, as business and society continue
to be transformed by digital technology. Digital entrepreneurship
highlights changes in entrepreneurial practice, theory, and
education.
Digital entrepreneurship includes everything that is new and
different about entrepreneurship in a digital world, including:
•New ways of finding customers for entrepreneurial ventures.
•New ways of designing and offering products, and services.
•New ways of generating revenue, and reducing cost.
•New opportunities to collaborate with platforms and partners.
•New sources of opportunity, risk, and competitive advantage.
Characteristics of digital entrepreneurship
Ventures in digital entrepreneurship have a few defining characteristics. They're typically sole proprietorships or businesses
with small teams. They usually operate entirely online, but some may also offer their services locally via digital hubs and
internet distribution. These businesses may have lower average overhead costs, which can help them to be more resilient to
changes in markets.
4 benefits of being a digital entrepreneur
Here are four key benefits of being a digital entrepreneur that you can consider:
1. Scalability
Most digital entrepreneurs start by fulfilling a niche market or inventing a product or service, then scaling the business to a
wider audience once it's achieved some measure of success. Working with digital markets can allow an entrepreneur to scale a
company in a way that's both productive and cost-effective.
This potential for growth without having to expand a business physically or rent additional space may encourage digital
entrepreneurs to take more opportunities to scale the business, since the level of risk may be lower than with a traditional
business.
2. Adaptability
Digital entrepreneurship also allows businesses to pivot their services, branding and pricing without adding significant
turnaround time. For example, a venture of this sort may adjust its pricing by altering online marketing information rather
than investing in changing physical advertisements. It could also rebrand by focusing on changing aspects of its website,
marketing materials and products rather than adjusting the layout or design of a physical location.
3. Accessibility
While location can be a primary factor in determining the success of a physical store, online shops and businesses are typically
accessible from customers' homes. This means that the potential customer base for an entrepreneurial endeavor is initially
much larger, though it may rely more on advertising to get website traffic. This factor can help smaller size operations
compete with larger companies for customers without the necessity of growing to the same size as their competition.
4. Profitability
Starting a business on the internet can allow a company to scale its earnings, such as by earning revenue from advertisements
online by receiving a percentage of profit each time a user clicks, views or interacts with the advertisement. A digital
company can also market to potential customers by creating content, such as videos detailing products or services. With a
website, it may also be easier to implement subscription payment methods for services or renewable products, which can help
secure a consistent customer base.
Entrepreneur v/s intrapreneur
BASIS FOR COMPARISON ENTREPRENEUR INTRAPRENEUR
Meaning Entrepreneur refers to a person who set up his own business with a Intrapreneur refers to an employee of the organization who is in
new idea or concept. charge of undertaking innovations in product, service, process etc.
Approach Intuitive Restorative
Resources Uses own resources. Use resources provided by the company.
Capital Raised by him. Financed by the company.
Enterprise Newly established An existing one
Dependency Independent Dependent
Risk Borne by the entrepreneur himself. Taken by the company.
Works for Creating a leading position in the market. Change and renew the existing organizational system and culture.
Key Differences Between Entrepreneur and Intrapreneur
The important distinguishing points between entrepreneur and intrapreneur, are given in the
following points:
1.An entrepreneur is defined as a person who establishes a new business with an innovative idea
or concept. An employee of the organisation who is authorised to undertake innovations in
product, service, process, system, etc. is known as Intrapreneur.
2.An entrepreneur is intuitive in nature, whereas an intrapreneur is restorative in nature.
3.An entrepreneur uses his own resources, i.e. man, machine, money, etc. while in the case of an
intrapreneur the resources are readily available, as they are provided to him by the company.
4.An entrepreneur raises capital himself. Conversely, an intrapreneur does not need to raise funds
himself; rather it is provided by the company.
5.An entrepreneur works in a newly established company. On the other hand, an intrapreneur is a
part of an existing organisation.
6.An entrepreneur is his own boss, so he is independent to take decisions. As opposed to
intrapreneur, who works for the organisation, he cannot take independent decisions.
7.This is one of the salient features of an entrepreneur; he is capable of bearing risks and
uncertainties of the business. Unlike intrapreneur, in which the company bears all the risks.
8.The entrepreneur works hard to enter the market successfully and create a place subsequently.
In contrast to Intrapreneur, who works for organization-wide change to bring innovation, creativity
Difference between entrepreneur and entrepreneurship
BASIS FOR COMPARISON ENTREPRENEUR ENTREPRENEURSHIP
Meaning An entrepreneur is an individual or a team thereof, having an Entrepreneurship is a risky activity of commencing a business usually
innovative idea, and takes every step to turn the idea into reality, a start up company, offering distinct products and services to the
while bearing the risks. target customers, which may or may not get success.
What is it? Person who has an idea and gives shape to it. Process which gives shape to the idea.
Represents An innovator, who chased the dream, till it becomes true. A procedure through which an innovation is done.
Business Venture He/She is the one who sets up the business venture, to turn a It is the activity, which an entrepreneur undertakes to set up the
concept into reality. business venture.
Key Differences Between Entrepreneur and Entrepreneurship
The difference between entrepreneur and entrepreneurship are discussed in the points
given below:
1.An entrepreneur is a person, or a team of individuals, having a vision, which not just
generates money, but can also ease the way in which things are done, by providing
such products and services that has value to the customer, while taking all the risks,
which comes in the way. Conversely, entrepreneurship is an art of turning an idea
into reality, which is not only about arranging the resources to give shape to the idea
but constantly making efforts in that direction, to earn profit in future and bearing all
the risks or rewards.
2.An entrepreneur is just a person having a unique and practical idea in his/her mind.
As against, entrepreneurship is the process of starting and running a business of
providing creative products and services.
3.An entrepreneur is an innovator, as he/she conceives an innovative idea, which is
not yet introduced by anyone else in the market. On the contrary, entrepreneurship is
the way through which one can make innovations.
4.An entrepreneur establishes the business venture, in order to convert the idea, into a
product or service, which can help many by easing the way work is performed
previously. In contrast, entrepreneurship is all about undertaking the business and
bearing all the risks that come in the way, to give a proper shape to the entrepreneur’s
Difference between Entrepreneur and Manager
•The key difference between an entrepreneur and a manager is their standing in
the company. An entrepreneur is a visionary that converts an idea into a business. He is
the owner of the business, so he bears all the financial and other risks. A manager, on
the other hand, is an employee, he works for a salary. So he does not have to bear any
risks.
•The focus of an entrepreneur lies in starting the business and later expanding the
business. A manager will focus on the daily smooth functioning of the business.
•For an entrepreneur the key motivation is achievements. But for the managers, the
motivation comes from the power that comes with their position.
•The reward for all the efforts of an entrepreneur is the profit he earns from the
enterprise. The manager is an employee, so his remuneration is the salary he draws from
the company.
•The entrepreneur can be informal and casual in his role. However, a manager’s approach
to every problem is very formal.
•The entrepreneur by nature is a risk taker. His has to take calculated risks to drive the
company further. A manager, on the other hand, is risk-averse. His job is to maintain the
status quo of the company. So he cannot afford risks.
