S4 EDP -module 1-1
- 3. Entrepreneur Person who organises & operates a business concern for the purpose of making profit Any person who starts & operate business
- 5. Entrepreneur Definition :- “an entrepreneur is an economic agent who unites all means of production, the labour force of the one & the capital or land of the others & who finds in the value of the products which result from their employment, the reconstitution of the entire capital that he utilizes & the value of the wages, the interest & the rent which he pays as well as profit belonging to himself”
- 7. Entrepreneurship Refers to functions performed by entrepreneurs in establishing an enterprise Means creating something new, organising, coordinating & undertaking risk, & handling economic uncertainty
- 10. Elements of Entrepreneurship Organising Risk bearing Vision innovating
- 11. Characteristics of Entrepreneurship Doing things in a new & better way Decision –making in condition of uncertainty Economic activity Innovative activity Creative & purposeful activity Organizing activity Risk-bearing activity
- 12. . Entrepreneur Entrepreneur ship Person Visualiser Creator Organiser Innovator Risk bearer Leader Administrator Motivator Imitator Communicator initiator Process Vision Creation Organization Innovation Risk bearing Leadership Administration Motivation Imitation Communication initiative
- 13. . Entrepreneur Manager Motive is to start a venture by setting up an enterprise Owner of enterprise Assumes all risk & uncertainties Reward is profit Act as innovator Possess qualities & qualifications like foresight, risk bearing capacity etc. Involve different types of personal skills Motive is to render services in an enterprise He is an employee Does not bear risk & uncertainties Reward is salary Translate the entrepreneur’s ideas in practice Distinct qualification in terms of sound knowledge in mgt theory & practice Human relation & conceptual abilities
- 14. Characteristics of entrepreneur hard work Desire for high achievement Optimism Independence Foresight Organising ability
- 15. Characteristics of entrepreneur Cont….. Innovative skill Mental ability Ability to guard business secrets Decision making Ability to maintain human relations Initiative & risk bearing
- 16. . Entrepreneur enterprise Usually a person He is a risk bearer He mobilizes raw materials & other resources for production. He is a decision maker Business or service units Is an undertaking that involved uncertainty & risk Utilises raw materials & other resources for production. Implement the decision taken by the entrepreneur.
- 17. Entrepreneurial Functions Innovation Risk bearing organization Other functions Exploring market opportunities Mobilisation of production resources Managing finance Managing production process Dealing in governmental matters Maintaing management- employee relations
- 18. .
- 19. Entrepreneurial Traits Knowledge Skill Motive Mental ability Clear objectives Guarding of business secrets Capacity to interact with people Effective communication
- 20. Entrepreneurial Traits Cont… Organisational & administration capacities Looking for opportunities Persistence Self confidence Efficient supervision Motivation Employees’ well-wisher Hard working mentality
- 21. Entrepreneurial Traits Cont… Efficient strategist Imagination & initiative Ability to organization & administration Willingness to change Ability to mobilize resources Technical knowledge Risk-bearing capacity
- 23. Motivation Something that urges a person to move or behave. Definition :- “motivation refers to the way in which urges, drives, desires, strivings, aspirations or needs direct, control or explain the behavior of human beings"
- 25. Theories of Motivation Self- actualisation Needs Esteem Needs Social Needs Safety Needs Physiologic al Needs
- 26. Theory :-Maslow’s Needs Hierarchy Theory Physiological Needs Food, water, shelter, clothing, water etc. Safety or Security Needs Social or affiliation Needs Interact with his fellow entrepreneurs, employees & others Esteem Needs Recognition, status, self esteem & self-respect Self-actualisation Needs Growth, achievement & advancement
- 27. Theory :-Mc Clelland’s Acquired Needs Theory Need for affiliation Desire to establish & maintain friendly & warm relationships with others Need for power Desire to influence & control other people, & hold authority Need of achievement Desire to do difficult or complex tasks, to do something more efficiently & to solve problems.
- 28. Motivating factors Internal factors External factors Desire to do something new Educational background Occupational background Govt. support Labour & raw-material availability Encouragement from big business concerns Product demand
- 29. Achievement motivation Inner feelings that activates an entrepreneur to strive for success. Desire to do well
- 30. Role of entrepreneurs in economic development Capital formation Generating employment opportunities Balanced regional development Reduces the concentration of economic power
- 31. Role of entrepreneurs in economic development Cont…. Encourages the effective utilization of capital & natural resources Promotes export trade Promote equitable distribution of wealth, national income & political power Stimulates economic development
- 32. .
- 33. Factors affecting Entrepreneurial growth Economic factors Non-economic factors Infrastructural facilities Availability of capital High risk Technical know-how & skills skilled labour Absence of subject as a programme Lengthy procedure to start business Social factors Psychological factors Cultural factors Personality factors
- 34. Non-economic factors Social factors Psychological factors Rational Behaviour Legitimacy of Entrepreneurship Social Mobility Social Marginality Security Need achievement Withdrawal of status respect
- 35. Social Factors Rational Behaviour Rational:-favorable condition, decision based on empirical facts & critical scientific standards, developed countries. Irrational:- unfavorable, decision based on custom & tradition, less developed countries. Legitimacy of Entrepreneurship Means relevance of a system of norms & values within a socio-cultural setting for the emergence of entrepreneurship According to Schumpeter :- Legitimacy is a favourable climate to growth of entrepreneurship. Eg:- social status
- 36. Social Factors Cont… Social Mobility Involves the degree of both social & geographical mobility According to Hoslitz & Mc Clelland :-Social Mobility is favourable condition According to Haggen :- lack of Social Mobility is favourable condition Influence other non-economic factors Social Marginality Individual or group transfer personnel ability to entrepreneurial roles Security
- 37. b) Psychological factors Need achievement Withdrawal of status respect . .
- 38. Psychological Factors Need Achievement Personality characteristics like high need achievement Withdrawal of status Respect Force Inconsistency in status Lost of expected status Value symbols denigrated (make less importance or valuable )
- 39. Non-economic Factors Cont... Cultural Factors Personality Factors
- 40. .
- 41. .
- 42. Unfavorable conditions in underdeveloped countries Lack of sufficient capital Lack of skilled labour Absence of minimum & economic social overheads Lack of proper markets Absence of well developed institutions