Civil Engineering Department�Subject-EMST�Chapter-INTRODUCTION TO ENTREPRENEURSHIP�SEM-5^TH �By�Er.P.PRUSTY�(Asst.HOD In Civil Engineering Department)�AY:2021-2022�

Contents

• Concept / Meaning of Entrepreneurship
• Characteristic & Qualities of an Entrepreneur
• Entrepreneur vs. Manager
• The Entrepreneurial decision process
• Role of Entrepreneurship in Economic Development
• Ethics and Social responsibility of Entrepreneurs

What Is An Entrepreneur ?

Characteristics of an Entrepreneur

• Various views about an ‘Entrepreneur’:
• as a risk bearer
• as an organizer
• as an innovator
• Entrepreneurship is related to:
• coordination, innovation and performance of the entrepreneur.
• a system of creating new business.
• referred to the various activities, done for the establishment and operation of an enterprise.

Definition of Entrepreneurship

• “Entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods and services”
• A. H. Cole

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• “Entrepreneurship is based on purposeful and systematic innovation. It included not only the independent businessman but also company directors and managers who actually carry out innovative functions.”
• Joseph A. Schumpeter

Definition of Entrepreneurship

• “Entrepreneurs are people who have the abilities to see and evaluate business opportunities , together with the necessary resources to take advantage of them, and to ensure appropriate action to ensure success.”
• International Labour Organization

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• “An entrepreneur is a person who starts a new venture, taking the initiative and risk associated with it and does so by crating something new to provide value to customers.”
• David Holt

Other Definitions of Entrepreneurship

• “Entrepreneurship is the process by which individuals pursue opportunities without regard to resources they currently control.”
• Stevenson & Jarillo

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• “Entrepreneurship is the art of turning an idea into a business.”
• Fred Wilson

Entrepreneurial Functions

• Innovation
• does something new and different, seeking to do something different and unique, try to meet the changing requirements of customers.

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• Risk – Bearing
• must be able to assume the risk involved in the enterprise, needs to be a risk taker not an avoider, should have ability of risk bearing .

Entrepreneurial Functions

• Passion for the Business
• This passion typically stems from the entrepreneur’s belief that the business will positively influence people’s lives.

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• Product/Customer Focus
• An entrepreneur’s keen focus on products and customers typically stems from the fact that most entrepreneurs are, at heart, craftspeople.

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• Execution Intelligence
• The ability to fashion a solid business idea into a viable business is a key characteristic of successful entrepreneurs.

Entrepreneurial Charecterstic and functions

• Lengthy attention span
• Optimistic disposition
• Persuasive
• Responsive to criticism
• Self-confident & Self-starter
• Tenacious
• Tolerant of ambiguity
• Visionary

• Achievement motivated
• Alert to opportunities
• Creative
• Decisive
• Energetic
• Has a strong work ethic
• Is a networker
• Initiative Taker

What are the types of Entrepreneurship?�Here are the different types of entrepreneurship

• Small business entrepreneurship

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• Large company entrepreneurship

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• Scalable startup entrepreneurship

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• Social entrepreneurship

• Innovative entrepreneurship

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• Hustler entrepreneurship

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• Imitator entrepreneurship

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• Researcher entrepreneurship

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• Buyer entrepreneurship

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Entrepreneurs v/s Managers

Who is an Entrepreneur?

• Very basically speaking, an entrepreneur is a one-man show that runs entrepreneurship. However, such a person usually has some unique attributes that allow him to be successful in his endeavors. He is essentially an initiator and a leader. He brings business ideas to fruition thus starting off his venture.
• A successful entrepreneur is usually a responsible person. He is accountable for the success or the failure of his venture, and he takes this responsibility very seriously

• Who is a Manager?
• A manager, on the other hand, is not an owner of an enterprise. Instead, he is the one that is responsible for the management and administration of a group of people or a department of the organization. His day to day job is to manage his employees and ensure the organization runs smoothly.
• A manager must possess some of the same qualities as an entrepreneur, like leadership, accountability, decisiveness etc. He must also be a good manager of people. So qualities such as warmth and empathy are also very important in a manager.

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Entrepreneurs v/s Managers

• Entrepreneur refers to a person who creates an enterprise, by taking financial risk in order to get profit.

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• Manager is an individual who takes the responsibility of controlling and administering the organization.

The Entrepreneurial Decision Process

An Entrepreneur

Possibilities to Become An Entrepreneur

Desire to Become An Entrepreneur

Reasons For Changing The Present Status

The Present Status

• Entrepreneurial decision process -
• Entails a movement from something to something.
• Movement from a present lifestyle to forming a new enterprise .

Steps in the Entrepreneurial Process

Discovery

Concept Development

Resourcing

Actualization

Harvesting

• Once the decision to become an entrepreneur is taken, the entrepreneurial process begins.
• The 5 stages of entrepreneurial process are –
1. Discovery
2. Concept Development
3. Resourcing
4. Actualization
5. Harvesting

Steps in the Entrepreneurial Process

1. Discovery: The stage in which the entrepreneur generates ideas, recognizes opportunities, and studies the market.
2. Concept Development: Develop a business plan: a detailed proposal describing the business idea.
3. Resourcing: The stage in which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture startup, etc.
4. Actualization: The stage in which the entrepreneur operates the business and utilizes resources to achieve its goals/objectives.
5. Harvesting: The stage in which the entrepreneur decides on business’s future growth/ development, or demise.

Role Of Entrepreneurship In Economic 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.
• The entrepreneur 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 crucial role played by the entrepreneurs in the development of the Western countries has made the people of underdeveloped

countries too much conscious of the significance of entrepreneurship for economic development.

Role Of Entrepreneurship In Economic Development

1. Promotes Capital Formation
2. Creates Large-Scale Employment Opportunities
3. Promotes Balanced Regional Development
4. Reduces Concentration of Economic Power
5. Wealth Creation and Distribution
6. Increasing Gross National Product and Per Capita Income
7. Improvement in the Standard of Living
8. Promotes Country's Export Trade
9. Induces Backward and Forward Linkages
10. Facilitates Overall Development

Role Of Entrepreneurship In Economic Development

• Promotes Capital Formation
• Entrepreneurs promote capital formation by mobilizing the idle savings of public.
• They employ their own as well as borrowed resources for setting up their

enterprises.

• Creates Large-Scale Employment Opportunities
• Entrepreneurs provide immediate large-scale employment to the

unemployed which is a chronic problem of underdeveloped nations.

Role Of Entrepreneur In Economic Development

• 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.
• Reduces Concentration of Economic Power
• Industrial development normally 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.

Role Of Entrepreneurship In Economic Development

• 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.
• 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 mobilization 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.

Role Of Entrepreneurship In Economic Development

• 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.
• Promotes Country's Export Trade
• Entrepreneurs help in promoting a country's export-trade, which is an important ingredient of economic development.

Role Of Entrepreneurship In Economic Development

• Induces Backward and Forward Linkages
• Entrepreneurs like to work in an environment of change and try to maximize 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.
• Facilitates Overall Development
• Entrepreneurs act as catalytic agent for change which results in chain reaction by multiplying their entrepreneurial activities, thus creating an environment of enthusiasm and conveying an impetus for overall development of the area

Ethics & �Social Responsibility �Of �Entrepreneurs

What Are Ethics?

• Individual values form the basis of ethics, a set of moral principles that govern decisions and actions.
• To act ethically is to behave in ways that are in keeping with certain values.
• Universal values are values that are shared by all cultures throughout history.
• Business ethics are moral principles applied to business issues and actions.
• Entrepreneurs have considerable influence on their company’s business ethics.

Why Practice Business Ethics?

• The main reason for behaving ethically, in business or in any area of life is simply that it’s the right thing to do.

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• Three practical reasons why you should practice business ethics:
• Customers are more confident when buying goods and services from an ethical company.
• An ethical workplace motivates employees.
• Ethical behavior also prevents legal problems.

Establishing an Ethical Workplace

• Universal values establish a strong foundation for society and are also a good basis for running your business.
• To deter unethical behavior, companies try to create transparency, or openness and accountability in business decisions and actions.
• To enhance transparency, companies today are using social media, which are interactive electronic forms of communication such as blogs and message boards.

Ethical Issues for Entrepreneurs

• When faced with an ethical decision, it’s best to rely on your own strong personal values to help guide your response.
• Intellectual property is artistic and industrial creations of the mind.
• Copyright is the exclusive right to perform, display, copy, or distribute an artistic work.
• A patent is the exclusive right to make, use, or sell a device or process.
• A trademark is a symbol that indicates that the use of a brand or brand name is legally protected and cannot be used by other businesses.
• A conflict of interest exists when personal considerations and professional obligations interfere with each other.
• Confidentiality involves respecting the privacy of others.

Corporate Social Responsibility

• Corporate social responsibility means that businesses act in ways that balance profit and growth with the good of society.
• Corporate social responsibility often translates into profits. This advantage for business is sometimes described as “doing well by doing good.”
• One type of socially-responsible corporate behavior is ethical sourcing, which means buying from suppliers who provide safe working conditions and respect workers’ rights

Responsibility To The Individuals

investors, and creditors.

• Entrepreneurs have legal obligations to provide a safe workplace and fair employment policies.

• Corporate social responsibility affects employees, customers,

• Business owners are bound by law to treat customers fairly.
• Acting responsibly toward suppliers or vendors results in making the best choices of materials and using them wisely.
• Investors and creditors provide the money to start and run a business. They must believe in both the idea behind the business and the entrepreneur.

Responsibility To The Environment

• Sustainable Design - Sustainable products meet the planet’s current needs while preserving resources for future generations.
• Alternative Energy - Researchers are working to make fossil-fuel alternatives such as solar, wind, and hydrogen power more efficient.
• Organics - Organic produce, grains, and meats make up a small but steadily growing segment of the food market.
• Fair Trade - This is a way of doing business based on principles of social and environmental responsibility and promoting sustainable growth.

The Energy-Efficient Workplace

• Creating an energy-efficient workplace saves money and can draw customers.
• Five ways that a business can lower its expenses, while also helping the environment include:
• Getting into the recycling loop.
• Doing business electronically.
• Buying supplies in bulk.
• Replacing incandescent light bulbs with fluorescent ones.
• Using environmentally friendly transportation.

Responsibility to the Community

• Businesses support disadvantaged and needy people, either for financial gain or because "It's the right thing to do."
• Cause-related marketing is a partnership between a business and a nonprofit group for the benefit of both. It increases sales for the business and raises money and awareness for the nonprofit group.
• Sponsorship is when a business sponsors a community event or service in exchange for advertising.
• With facilitated giving, a business makes it easier for customers to contribute to a cause.
• Philanthropy occurs when business leaders donate money and other resources for socially beneficial causes.

Opportunities for Entrepreneurs

• There is tremendous interest in entrepreneurship all around the world.
• India is at a threshold of startup boom, as we are world’s third fastest growing startup eco-system.
• With 3,100 startups, India is closely behind UK with 4,000 startups and catching up to US which has 41,500 startups.
• E-commerce, in the past few years, has been the flag bearer for entrepreneurship in India with Flipkart, Snapdeal, Zomato, bookmyshow etc. becoming giants in the field within a few years of formation.

Opportunities for Entrepreneurs

• A lot of big venture capitalist firms have shown interest in making investments in India.
• Sequoia Capital, the most active venture capital firm of this quarter in the Asia Pacific region has made 13 of its 32 investments in India.
• Another global venture capital firm, Tiger Global, has made 9 of its 20 investments in India.
• Major initiatives taken by the government regarding improving the entrepreneurial scenario in the manufacturing sector of the country has helped immensely.

Thank You !!