Introduction to ed
- 1. INTRODUCTION TO ED UNIT - 1
- 3. ENTREPRENEUR • An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures. • Entrepreneurs who prove to be successful in taking on the risks of a startup are rewarded with profits, fame and continued growth opportunities. Those who fail, suffer losses and become less prevalent in the markets.
- 4. An entrepreneur is a person who starts an enterprise. He searches for change and responds to it. Entrepreneur is someone who perceives opportunity, organizes resources needed for exploiting that opportunity and exploits it.
- 5. • An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. • An entrepreneur combines capital, land, and labor to manufacture goods or provide services through the formation of a firm. • In a market full of uncertainty, it is the entrepreneur who can actually help clear up uncertainty, as he makes judgments or assumes the risk. • Entrepreneurship is high-risk, but also can be high-reward as it serves to generate economic wealth, growth, and innovation
- 6. • E: xamine needs, wants, and problems to see how they can improve the way needs and wants are met and problems overcome. • N: arrow the possible opportunities to one specific "best" opportunity. • T: hink of innovative ideas and narrow them to the "best" idea. • R: esearch the opportunity and idea thoroughly. • E: nlist the best sources of advice and assistance that they can find.
- 7. • P: lan their ventures and look for possible problems that might arise. • R: ank the risks and the possible rewards. • E: valuate the risks and possible rewards and make their decision to act or not to act. • N: ever hang on to an idea, no matter how much they may love it, if research shows it won't work. • E: mploy the resources necessary for the venture to succeed. • U: nderstand that they will have to work long and hard to make their venture succeed. • R: ealize a sense of accomplishment from their successful ventures and learn from their failures to help them achieve success in the future.
- 10. SOME FAMOUS ENTREPRENUER • RITESH AGGARWAL
- 11. KUNAL SHAH- POPULAR PLATFORM WHICH REVOLUTIONIZED THE ONLINE RECHARGE FRAMEWORK
- 14. NANDAN REDDY FOCUS TO THE FOODSERVICE INDUSTRY
- 15. PHANINDRA SAMA- MADE BOOKING BUS TICKETS WAY EASIER
- 16. CHARACTERISTICS OF ENTREPRENEUR • be passionate about achieving their goals • have a spirit of adventure • have a strong need to achieve and seek personal accomplishment • be self-confident and self-reliant • be goal-oriented • be innovative, creative, and versatile • be persistent • be hardworking and energetic • have a positive attitude • be willing to take initiative • have a strong sense of commitment
- 18. HISTORY Middle Ages. 1. The term entrepreneur was used to describe a person who managed large production projects. 2. This person did not take any risks, but managed the project with the resources provided. 3. A typical entrepreneur was the cleric who managed architectural projects.
- 19. 17th Century By the 17th century the entrepreneur was a person who entered into a contract with the government to perform a service. Richard Cantillon, a noted economist of the 1700s, developed early theories of the entrepreneur and is regarded as the founder of the term. He viewed the entrepreneur as a risk taker who “buys at certain price and sells at an uncertain price, therefore operating at a risk.”
- 20. 18th Century. In the 18th century the entrepreneur was distinguished from the capital provider. 19th and 20th Centuries. • The entrepreneur “contributes his own initiative, skill and perform the functions of planning, organizing and administering the enterprise assuming the chance of loss and gain.” In the middle of the 20th century, the entrepreneur was described as an innovator. Innovation, the act of introducing something new, is one of the most difficult tasks for the entrepreneur.
- 21. ENTREPRENEURSHIP • Entrepreneurship can be described as a process of action an entrepreneur undertakes to establish his enterprise. • Entrepreneurship is a creative activity. It is the act and art of being an entrepreneur to transform innovations into economic goods. • It is a purposeful activity of an individual or group of individual undertaken to initiate and maintain an enterprise by production and distribution of economics goods and services to generate profit.
- 22. CONCEPT OF ENTREPRENEURSHIP Entrepreneurship Entrepreneur Enterprise Person Process of Action Object
- 23. NATURE OF ENTREPRENEURSHIP • ECONOMIC ACTIVITY • CREATIVE RESPONSE TO ENVIRONMENT • PURPOSEFUL ACTIVITY • DYNAMIC ACTIVITY • RISK ELEMNT • CREATOR OF ORGANISATION • GAP FILLING FUNCTION • OPTIMUM USE OF RESOURCES
- 24. DIFFERENCE BETWEEN MANAGER & ENTREPRENUER
- 25. INTRAPRENEUR • Intrapreneurship is the entrepreneurship within the organization undertaken by the working people for making the organization competitive and sustainable in the present market and open economy Entrepreneurship • Intrapreneur refers to an employee of the organization who is in charge of undertaking innovations in product, service, process etc.
- 26. ENTREPRENUER VS. INTRAPRENUER ENTREPRENUER INTRAPRENUER Owner of business Works as an employee of the business Raises requisite capital himself Does not Raises any capital Works independently Works Semi independently Bears full Risks of his business Does not Bears full Risks of his business Guarantees payment to suppliers of inputs NO such guarantee is required to be given by intrapreneur Master of his own show show Bound by organizational norms
- 27. IMPORTANCE OF ENTREPRENEURSHIP • 1. Development of managerial capabilities • The biggest significance of entrepreneurship lies in the fact that it helps in identifying and developing managerial capabilities of entrepreneurs. An entrepreneur studies a problem, identifies its alternatives, compares the alternatives in terms of cost and benefits implications, and finally chooses the best alternative. This exercise helps in sharpening the decision-making skills of an entrepreneur. Besides, these managerial capabilities are used by entrepreneurs in creating new technologies and products in place of older technologies and products resulting in higher performance.
- 28. • 2. Creation of organizations • Entrepreneurship results into creation of organizations when entrepreneurs assemble and coordinate physical, human and financial resources and direct them towards achievement of objectives through managerial skills. • 3. Improving standards of living • By creating productive organizations, entrepreneurship helps in making a wide variety of goods and services available to the society, which results into higher standards of living for the people.Possession of luxury cars, computers, mobile phones, rapid growth of shopping malls, etc. are pointers to the rising living standards of people, and all this is due to the efforts of entrepreneurs.
- 29. • 4. Means of economic development • Entrepreneurship involves creation and use of innovative ideas, maximization of output from given resources, development of managerial skills, etc., and all these factors are so essential for the economic development of a country. • 5. Job Creation • We know that job creation is vital to the overall long-term economic health of communities, regions, ad nations. Entrepreneurial ventures play very important role in it. Small business create more jobs than large business do. During economic recession, when large companies are on their way to retrenchment of their work force, individuals whose jobs are eliminated find employment with small business. The creation of jobs by small businesses is expected to continue into the future as new firms start small and grow.
- 30. • 6. Innovation • Innovating is a process of creating, changing, experimenting, transforming and revolutionizing. Innovation is one of the key distinguishing characteristics of entrepreneurial activity. The passionate drive and intense hunger of entrepreneurs to forge new directions products and processes and to take risks set in motion a series of decisions that lead to the innovations that are important for economic vitality. Without these new ideas, economic, technological, and social progress would be slow indeed. The “creative destruction” process of innovating leads to technological changes and employment growth. Entrepreneurial firms act as these “agents of change” by providing an essential source of new and unique ideas that might otherwise go.
- 31. • 7. It results in exploitation of economy’s resources, such as labour, capital and technology to the fullest extent.
- 32. BENEFITS OF ENTREPRENEURSHIP • SELF CONTROL • CREATE A DIFFERENCE IN SOCIETY • MAKE A HIGH PROFITS • WORK TO ONE’S SELF INTEREST • PERSUE ONE’S SELF INTEREST • MOTIVATION
- 33. • ENTERING NEW MARKETS • FINANCIAL SATISFACTION • FLEXIBILTY • DECISION MAKING • EXCITEMENT
- 34. LIMITATIONS OF ENTREPRENUERSHIP • NO REGULAR INCOME • LONG WORKING HOURS • STRESSFULL WORK • RISK
- 35. MISTAKES OF ENTREPRENUERSHIP • NOT THINKING TO EXPAND • SEEKING ADVICE FROM A LARGE NUMBER OF PEOPLE • IMBALANNCE BETWEEN FOCUS ON PRODUCT DEVELOPMENT & SALES • TARGETING A SMALL MARKET SHARE • NOT MANAGING THE DISTRIBUTION CHANNELS • COST OF MARKETING • RAISING INSUFFICIENT CAPITAL • RAISING EXCESS CAPITAL • NOT HAVING A SOUND BUSINESS PLAN
- 36. TYPES OF ENTREPRENEURS • 1) Innovative entrepreneurs: An innovative entrepreneur in one, who introduces new goods, inaugurates new method of production, discovers new market and recognizes the enterprise. • It is important to note that such entrepreneurs can work only when a certain level of development is already achieved and people look forward to change and improvement.
- 37. • 2) Imitative entrepreneurs: These types of entrepreneurs creatively imitate the innovative technical achievement made by another firm. Imitative entrepreneurs are suitable for underdeveloped countries as it is hard for them to bear the high cost of innovation.
- 38. • 3) Fabian entrepreneurs: Fabian entrepreneurs are characterized by very great caution and skepticism to experiment any change in their enterprises. They usually do not take any new challenge. They imitate only when it becomes perfectly clear that failure to do not so would result in a loss of the relative position in the enterprise. • 4) Drone entrepreneurs: They are characterized by a refusal to adopt any change even at cost of severely reduction of profit.
- 39. FACTORS LEADING TO INCREASE IN ENTREPRENEURSHIP • 1. Encouraging schemes by the government authorities • Government of India is also encouraging the interest in entrepreneurship. It has launched a ‘start-up India’ campaign that provides support to entrepreneurial initiatives. Schemes have been floated to promote world-class innovation hubs and self- employment opportunities for the youngsters. The focus is especially high in technology driven areas. The government of India realises the potential that entrepreneurship holds in giving boost to the economy and uplifting the financial status of the people of the country. Such faith in entrepreneurship from the highest body in India leads to development of interest in this field among the youth of the country.
- 40. • 2. The Rise of Technology • Technology has led to India becoming a software power. It has the second highest number of internet users in the world. In addition to this, the uncertainty regarding jobs is fuelling people’s interest in having their own business. Industries are in constant need for innovation to move forward and start-ups are coming up in fields like artificial intelligence and machine learning to help businesses solve their inherent issues or to bring in more efficiency.
- 41. • 3. The Female Entrepreneurs • The entrepreneurial wave is also being driven by women entrepreneurs who are carving a niche for themselves. Start-ups like Zivame, Kaaryah, YourStory and POPxo have become successful ventures. Led by women founders, they are answering the market needs in their respective segments.
- 42. CHALLENGES FOR INDIAN ENTREPRENEURS • Raising Funds for the Business • The challenge for any start-up lies in raising funds for the business. To do so, they need to have a dependable business plan and a strategy on how they want to enter the market. Start-ups get funds from venture capitalists once they have convinced them about the venture’s potential for success.
- 43. • 2. Knowledge on How to Run a Business • As simple as it may seem, any venture needs to have a good plan to begin with. Various business schools have started entrepreneurship courses to answer the requirements of interested students who seek to become an entrepreneur. These courses help the students get their expectations right and prepare themselves for a career in entrepreneurship.
- 44. • Keeping Up with Technology • This point is important for start-ups in the technology sector. It is important for them to keep track of the latest technology and stay ahead of the curve. These days, technological innovations are happening every day leading to technology getting obsolete quickly. They need to keep on improving their products and give new and innovative products to their customers. The innovations need to be useful for the customers. They need to have good research backing their product launches. If the product does not answer any need gap in the market, then it will not be successful in the market even if there is cutting edge technology behind it.
- 45. • Quality of Human Resources • Any business’ success is dependent on the people who work for it. It is critical to have the right mix of people. These people should be trained for their job profiles. For example, a marketing manager should understand the industry and its customers and accordingly plan marketing campaigns. They should also have practical experience for performing their jobs properly. Additionally, they should have the right attitude and keen interest in doing their work to the best of their abilities.
- 46. FACTORS AFFECTING ENTREPRENEURSHIP • Individual factors • Political Factors • Economic Factors • Social Factors • Technological Factors • Ecological Factors • Legal factors
- 47. INDIVIDUAL FACTORS • Desire to do something • Technical Background • No. of years of experience • Occupational background- • Educational background- • Parental background • Sometimes children continue their family business and make some changes in the existing business in the form of some new technology, new process, new product etc. they are called second generation entrepreneur.
- 48. POLITICAL FACTORS The extent and process of government direct or indirect intervention and influence on businesses in an economy. Political factors include • tax policy, labour law, environmental law, trade restrictions etc. • Furthermore, governments have great influence on the health, education, and infrastructure of a nation.
- 49. ECONOMIC FACTORS Labour: Availability of quality rather than quantity of labour. Entrepreneurship is encouraged if there is a mobile and flexible labour force. Capital: Adequate sources of capital Market: Understanding of latest market trends and market techniques. The size and composition of market both influence entrepreneurship Raw material: Adequate supply of raw material
- 50. SOCIAL FACTORS • Caste Factor : There are certain cultural practices and values in every society which influence the’ actions of individuals. It has also defined limits to the social mobility of individuals. • Attitude of the Society: Certain societies encourage innovations and appreciate entrepreneurs’ actions and rewards like profits. • Certain others do not tolerate changes and in such circumstances, entrepreneurship cannot take root and grow. • Similarly, some societies have an inherent dislike for any money-making activity • Family background : This factor includes size of family, type of family and economic status of family.
- 51. TECHNOLOGICAL FACTORS • Research and Development (R&D) activity, automation, technology incentives and the rate of technological change. • They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. • Technological shifts can affect costs, quality, and stimulate further invention, innovation and competition. • Technology is the art of converting the natural resources into goods and services that are more beneficial to the society. • Due to technological development new products, new production process, new raw material ,new researches are encouraged for modernization.
- 52. LEGAL FACTORS • Included in this component are discrimination law, consumer law, antitrust law, employment law, and health and safety law. • These factors can affect how a company operates, its costs, and the demand for its products.
- 53. ECOLOGICAL FACTORS • These include environmental aspects such as weather, climate, and climate change, which may affect industries like tourism, farming, and insurance. • Growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.
- 54. MOTIVATION • The word Motivation has been derived from the word “Motive” .Motive may be defined as an inner state of our mind that moves or activates or energise and directs our behaviour towards our goal. • Motivation is a drive to achieve a target. • Motives are the expressions of a person’s goal or needs. • They give direction to human behaviour to achieve goals or fulfil needs.
- 55. MOTIVATING FACTORS Internal Factors • Desire to do Something • Educational Background • Experience External Factors • Government Assistance and Support • Availability of Raw material • Encouragement from big business houses • Promising demand for the product.