ENTREPRENEURSHIP

Dr. S. Anthony Rahul Golden
M.Com., M.Phil., NET., Ph.D., MBA.,SET., NET., M.A., M.Sc. (Psy)., M.A., PGDBA.,

Asst. Professor of Commerce., Loyola College (Autonomous), Chennai - 34
Mobile No- 91+9176313545
https://yesrahul.blogspot.com/

https://orcid.org/0000-0001-8071-4801
https://vidwan.inflibnet.ac.in/profile/339311
https://www.researchgate.net/profile/Anthony-Golden-S
https://scholar.google.com/citations?hl=en&user=faw7X-UAAAAJ
Anthony Rahul Golden, S. - Author details - Scopus Preview

Meaning of Entrepreneurship

Entrepreneurship is the process of identifying business opportunities, organizing resources, taking risks, and creating value through innovative business ventures.

According to Joseph Schumpeter:

"Entrepreneurship is the process of creative destruction through innovation."

Definitions

A.H. Cole

Entrepreneurship is the purposeful activity of an individual or a group of associated individuals undertaken to initiate, maintain, or expand a profit-oriented business.

Peter Drucker

Entrepreneurship is the practice of creating something new and different with value.

NATURE OF ENTREPRENEURSHIP

Innovation-Oriented
- Introduces new products, services, and processes.
Risk-Bearing Activity
- Entrepreneurs face uncertainty and business risks.
Goal-Oriented
- Aims at profit, growth, and social welfare.
Dynamic Process
- Continuously adapts to market changes.
Value Creation
- Creates wealth, employment, and customer satisfaction.
Decision-Making Function
- Requires strategic and operational decisions.
Resource Mobilization
- Combines land, labour, capital, and technology.

TYPES OF ENTREPRENEURS

1. Innovative Entrepreneur

Introduces new products and technologies.
Example: Steve Jobs

2. Imitative Entrepreneur

Adopts innovations developed by others.

3. Fabian Entrepreneur

Cautious and reluctant to adopt changes.

4. Drone Entrepreneur

Resists change despite losses.

5. Social Entrepreneur

Focuses on solving social problems.
Example: Muhammad Yunus

6. Women Entrepreneur

Enterprise owned and managed by women.

7. Rural Entrepreneur

Operates businesses in rural areas.

8. Technical Entrepreneur

Uses technical expertise to start ventures.

9. Serial Entrepreneur

Starts multiple businesses over time.

10. Corporate Entrepreneur (Intrapreneur)

Creates innovations within an organization.

ENTREPRENEURIAL COMPETENCIES

Entrepreneurial competencies are the skills, knowledge, attitudes, and abilities required for successful entrepreneurship.

Major Competencies

1. Opportunity Seeking

Identifying profitable business opportunities.

2. Risk-Taking Ability

Taking calculated risks.

3. Decision-Making Skill

Selecting the best alternative.

4. Leadership Ability

Influencing and motivating employees.

5. Communication Skill

Effective interaction with stakeholders.

6. Problem-Solving Ability

Resolving business challenges.

7. Innovation and Creativity

Generating new ideas.

8. Time Management

Efficient utilization of time.

9. Networking Ability

Building business relationships.

10. Financial Management Skill

Managing funds effectively.

TRAITS OF SUCCESSFUL ENTREPRENEURS

Self-confidence
Vision
Creativity
Initiative
Commitment
Hard work
Leadership
Persistence
Adaptability
Risk-taking ability
Positive attitude
Goal orientation

FUNCTIONS OF AN ENTREPRENEUR

1. Innovation Function

Develops new products and services.

2. Risk-Bearing Function

Assumes business risks.

3. Organizing Function

Coordinates factors of production.

4. Managerial Function

Plans, directs, and controls operations.

5. Decision-Making Function

Makes strategic business decisions.

6. Marketing Function

Identifies and serves customer needs.

7. Financial Function

Raises and manages capital.

8. Employment Generation

Creates job opportunities.

9. Social Responsibility Function

Contributes to societal welfare.

FACTORS PROMOTING ENTREPRENEURSHIP

Economic Factors

Availability of capital
Infrastructure facilities
Market opportunities
Industrial growth

Social Factors

Education
Family support
Social recognition

Psychological Factors

Achievement motivation
Self-confidence
Need for independence

Government Factors

Startup incentives
Subsidies
Tax benefits
Skill development programmes

Technological Factors

Internet accessibility
Digital platforms
Research and development

ENTREPRENEURIAL MOTIVATION

Meaning

Entrepreneurial motivation refers to the internal and external forces that encourage an individual to start and manage a business.

Importance

Encourages innovation
Increases productivity
Enhances confidence
Supports business growth

Sources of Motivation

Profit motive
Independence
Achievement
Social status
Family tradition
Self-fulfilment

ACHIEVEMENT MOTIVATION

Meaning

Achievement motivation is the desire to accomplish challenging goals and attain excellence.

Characteristics

Desire for success
Preference for moderate risks
Personal responsibility
Continuous improvement
Future orientation

Importance

Increases entrepreneurial success
Encourages innovation
Enhances productivity
Builds confidence

Achievement Motivation Cycle

Need for Achievement → Goal Setting → Effort → Performance → Success → Satisfaction

BARRIERS TO ENTREPRENEURSHIP

Financial Barriers

Lack of capital
Difficulty obtaining loans

Personal Barriers

Fear of failure
Lack of confidence

Social Barriers

Family resistance
Cultural restrictions

Technological Barriers

Lack of technical knowledge

Governmental Barriers

Complex regulations
Licensing issues

Market Barriers

Competition
Uncertain demand

ENTREPRENEURSHIP AND INTRAPRENEURSHIP