Entrepreneurial Development: Introduction, Meaning, Characteristics, and Strategies

1. ENTPRENEURIAL DEVELOPMENT -- Presented byDR.K.Kannan., M.A., MIS., M.Phil., Ph.D.,DCA.,Assistant Professor in Economics, Department of Commerce with Professional Accounting and Accounting &Finance, Hindusthan College of Arts and Science,( Autonomous) Hindusthan Gardens, (Behind Nava India) Avanashi Road, Coimbatore - 641 028 Tamil Nadu, India. Cell:09578779766 &09597721524 E.Mail:karuppusamykannan@gmail.com

2. UNIT I: • Entrepreneurship Introduction & Meaning • Entrepreneurship Definition • Concept of Entrepreneurship & characteristics • Entrepreneur - Definition, • characteristics, types and functions • Women entrepreneurs, problems & development of women entrepreneurs • Rural entrepreneurs – EDP • Meaning, need, phases of EDP • Ministry of skill development Entrepreneurship.

3. Entrepreneurship Introduction & Meaning Entrepreneurship - Introduction. ... An entrepreneur is an innovator or a creator who introduces something new to the firm or economy. It can be a new method of production, a new product, a new source of material, a new market or any other similar innovation.

4. Entrepreneurship An entrepreneur is a person who undertakes a venture with some profit potential and involving a considerable amount of risk and therefore, entrepreneurship is the venture undertaken by the entrepreneur. The most obvious example of entrepreneurship is the starting of a new business. Entrepreneurship can be of varying degrees and is not necessarily alike. It can be categorized into various subcategories, starting with small and home businesses to multidimensional industries that were started from the ground level.

5. The exploitation of entrepreneurial opportunities may include • Developing a business plan • Hiring the human resources • Acquiring financial and material resources • Providing leadership • Being responsible for both the venture's success or failure • Risk aversion

6. Characteristics of Entrepreneurship • Ability to take Risks This is the first and foremost trait of entrepreneurship. Starting any business involves a considerable amount of risk of failure. Therefore, the courage and capacity to take the said risk are essential for an entrepreneur. Understand the Nature of Business Risk here in detail.

7. Innovation • In a world, where almost everything has been done, innovation is a priceless gift to have. Innovation basically means generating a new idea with which you can start a business and achieve a substantial amount of profits. Innovation can be in the form of a product, i.e., launching a product that no one is selling in the market. It can also be in the form of process, i.e., doing the same work in a more efficient and economical way. Visionary • Every entrepreneur needs to be a visionary. Without a vision for the future of his venture, he or she would just be working aimlessly without reaching any point of success.

8. Leadership An entrepreneur has a vision. However, it takes a lot of resources to turn that vision into reality. One of these resources are the people that the entrepreneur hires to perform various functions like production, supplying, accounting, etc. Open Minded A good entrepreneur realizes that every situation can be a business opportunity. Thus can be utilized for the benefit of the organization. For example, Paytmrealized the significance of demonetization and recognized that the need for online transactions was more than ever during this time and so it utilized and grew massively during this period. Confident and Well Informed An entrepreneur needs to be confident about his ideas and skills. This confidence also inspires the confidence of the people working for him as well as the other stakeholders involved in his business.

9. Strategies • Strategies that entrepreneurs may use include: • Innovation of new products, services or processes • Continuous process improvement (CPI) • Exploration of new business models • Use of technology • Use of business intelligence • Use of economical strategics • Development of future products and services • Optimized talent management

10. What Is an 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 play a key role in any economy. These are the people who have the skills and initiative necessary to anticipate current and future needs and bring good new ideas to market. 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.

11. What is an Entrepreneur? Adam Smith (1776) considers entrepreneur as a proprietary capitalist who supplies capital and works as a manager intervening between labor and the consumer. Francis A. Walker (1870) calls the entrepreneurs as engineers of progress and the chief agents of production. F. H. Knight (1921) propounds that entrepreneurs are a specialized group of persons who bear risks and deal with uncertainty.

12. J-A. Mill (1848) advocates for using the word entrepreneur in the sense of an organizer who is paid for his non-manual type of work. J.B. Say (1824) defines an s entrepreneur as “an economic agent who assembles factors of production, see the s price of produce in such a way that ensures the cost and profit, re-accumulates capital and possesses administrative and productive knowledge.”

13. 7 Characteristics of Successful Entrepreneurs • Self-Motivation. One of the most important traits of entrepreneurs is self-motivation. ... • Understand What You Offer. As an entrepreneur, you need to know what you offer, and how it fits into the market. ... • Take Risks. ... • Know How to Network. ... • Basic Money Management Skills and Knowledge. ... • Flexibility. ... • Passion.

14. Characteristics of Entrepreneurship Entrepreneurship has the following characteristics: Creating New Venture Entrepreneurship is concerned with creation of new venture with new ideas. Such ventures starts as a small business to satisfy the unfulfilled needs in the market. These new ventures produce something new of value, create new market and new customers. Strong networking abilities A key part of being an entrepreneur is developing a network. While schools and events can provide an introduction, successful entrepreneurs must know how to maximize these opportunities to develop connections with experienced people in their field, investors, or advisors through strong networking skills.

15. Hard Work and Commitment Entrepreneurship requires hard work and commitment through devotion of time and efforts. Hard work with enthusiasm is needed to make new ideas, developing plan, determination of required resources. Entrepreneurs have deep sense of personal responsibility and high level of energy. Profit potential “Profit potential is the likely level of return or compensation to the entrepreneur for taking on the risk of developing an idea into an actual business venture.” Without profit potential, the efforts of entrepreneurs would remain only an abstract and a theoretical leisure activity. • Risk Assumption • Entrepreneurship involves assumption of risks which implies possibility of loss. Probability estimates of the outcome of risk situations are made to calculate risk. Generally, new ventures tend to have high risk and high failure rate. Financial risk, career risk, social risk and psychic risk are involved in entrepreneurship.

16. Reaping Of Rewards Entrepreneurship results in reaping of rewards. Rewards can be monetary benefits in terms of profit or non-monetary benefits in terms of personal satisfaction, self development, fame, reputation and independence in work. Monetary rewards serve as symbol of achievement and non-monetary rewards provide opportunities to make contribution toward social well-being and get social recognition. Passion Finally, successful entrepreneurs are passionate. They feel deeply about their product or service or mission. Passion is what will help you find motivation when you are discouraged and it will drive your forward. Passion is fuel for successful entrepreneurship. If you find yourself losing your passion, that might be the clue that it’s time to move on to something else (that stokes your passion). There are many serial entrepreneurs that create successful businesses, sell them, and then create something else.

17. THANK YOU ALL

18. The Government of India has enacted the Micro, Small and Medium • Enterprises • Development • (MSMED) Act, 2006 on June 16, 2006 which was notified on October 2, 2006. • With the enactment of MSMED Act 2006, the paradigm shift that has taken place is the inclusion • of the services sector in the definition of Micro, Small & Medium enterprises, apart f • rom • extending the scope to medium enterprises. The MSMED Act • , 2006 • has modified the definition • of micro, small and medium enterprises engaged in manufacturing or production and providing • or rendering of services

19. Start-ups • Starting a business generally requires: • A business concept or idea involving a product, service, process, or new technology • People to support the work, whether as employees, vendors, or advisors • A process by which the product or service will be delivered, or the technology will be developed • Enough money to support the development of the idea to the point that it generates revenue