Entrepreneurship

Entrepreneurship

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In the context of employment generation....

Three terms .......

1. Income generation,

2. Self-employmentand

3. Entrepreneurship are often used interchangeably

-------INITIAL

-------MIDDLE

And

-------FINAL STAGE

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Enterprise

4 factors are:• Land• Labour• Capital• Entrepreneur

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Meaning

The capacity and willingness to undertake conception, organization, and management of a productive venture with all attendant risks, while seeking profit as a reward.

In economics, entrepreneurship is regarded as a factor of production together with land, labor, natural resources, and capital. Entrepreneurial spirit is characterized by innovation and risk-taking, and an essential component of a nation's ability to succeed in an ever changing and more competitive global marketplace.

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Meaning

Entrepreneurship is more than simply “starting a business.” The definition of entrepreneurship is a process through which individuals identify opportunities, allocate resources, and create value. This creation of value is often through the identification of unmet needs or through the identification of opportunities for change.

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Internal and External Factor of Entrepreneurship

There are two kinds of driving forces; • Internal driving forces, • External driving forces.

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Internal Driving Forces

Internal driving forces are those kinds of things, situations, or events that occur inside the business, and are generally under the control of the company. Examples might be as follows.· organization of machinery and equipment,· technological capacity,· organizational culture,· management systems,· financial management· employee morale.

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External Driving Forces

External driving forces are those kinds of things, situation, or events that occur outside of the company and are by and large beyond the control of the company. Examples of external driving forces might be, the industry itself, the economy, demographics, competition, political interference, etc.

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Functions of Entrepreneurs

According to Kilby in a developing country even the imitator entrepreneurs are very important and the entrepreneurial role encompasses the following:i. Perception of market opportunitiesii. Gaining command over scarce resourcesiii. Purchasing inputsiv. Marketing the productsv. Dealing with bureaucratsvi. Managing human relations within the firm

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Functions of Entrepreneurs

vii. Managing customer and supplier relationsviii. Managing finance ix. Managing production x. Acquiring and overseeing assembly of the factory xi. Industrial engineering xii. Upgrading process and productxiii. Introducing new production techniques and products

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Barriers to Entrepreneurship• Lack of viable concept• Lack of market Knowledge• Lack of technical Skills• Lack of seed capital• Lack of business knowhow• Complacency- lack of motivation• Social Stigma• Time presence and distractions• Legal Constraints and regulations• Inhibition due to patents

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Classification of Entrepreneurship

• According to the types of Business• According to the use of technology• According to the motivation• According to the growth• According to the stages of development• According to area• According to the organization• According to gender and age• Unclassified

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According to the types of Business

• Business Entrepreneurs• Trading Entrepreneurs• Industrial Entrepreneurs• Corporate Entrepreneurs• Agricultural Entrepreneurs• Retail Entrepreneurs• Service Entrepreneurs• Re-engineering Entrepreneurs• Health

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According to the use of technology

• Technical Entrepreneurs• Non- Technical Entrepreneurs• Professional Entrepreneurs• Hi-tech Entrepreneurs• BPO• KPO

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According to the motivation

• Pure Entrepreneurs• Induced Entrepreneurs• Motivated Entrepreneurs• Spontaneous Entrepreneurs• Forced Entrepreneurs• Accidental• Successful Entrepreneurs

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According to the growth

• Aspiring Entrepreneurs• Growth Entrepreneurs• Lifestyle Entrepreneurs

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According to the stages of development

• First Generation Entrepreneurs• Modern Entrepreneurs• Classical Entrepreneurs• Generation- next Entrepreneurs • Inherited Entrepreneurs

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Causes of Slow Growth

• Unfavorable family background• Lack of education• Dual role of women• Lack of aptitudes and training• Absence of individualistic spirit• Influence of cast, sex, custom and family burden

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According to area

• Urban Entrepreneurs• Rural Entrepreneurs• Global Entrepreneurs• Local Entrepreneurs

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According to Organization

• Individual Entrepreneurs• Group Entrepreneurs• Institutional Entrepreneurs• Private Entrepreneurs• Public Entrepreneurs• Government Entrepreneurs

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According to Gender and Age

• Men Entrepreneurs• Women Entrepreneurs

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Unclassified

• Professional Entrepreneurs• Non- Professional Entrepreneurs• Education Entrepreneurs• Intrapreneurs• Ultrapreneurs

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Concept of Entrepreneurship

Entrepreneurship is the propensity of mind to take calculated risks with confidence to achieve a pre- determined business or industrial objective.

Entrepreneur Entrepreneurship Enterprise

PersonProcess of

ActionObject

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Phases of Entrepreneurship Development

• Initial Phase• Development Phase• Support Phase

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ENTREPRENEUR vs. MANAGERRELATIONSHIP

An entrepreneur starts a venture then a manager takes over to organize and co-ordinate continuous production.

The main differences between the two are summed up below:

Entrepreneur Manager

An entrepreneur is involved with the start-up process

A manager with running the business over a long period of time

An entrepreneur assumes financial, material and psychological risks

A manager does not have to bear risks

An entrepreneur is driven by perceptionof opportunity

A manager by the resources hecurrently possesses

An entrepreneur initiates change A manager follows rules & procedures

An entrepreneur is his own boss A manager is a hired employee

An entrepreneur gets uncertain rewards A manager gets fixed rewards andsalary

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1. Distinguish between wage-employment, income-generation andentrepreneurship.

2. Discuss the main functions of an entrepreneur.

3. Explain the role of entrepreneurship in economic development.

4. Distinguish between entrepreneurs and managers.

5. ‘Entrepreneurs are born not made.’ Comment.

SELF ASSESSMENT QUESTIONS

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