ENTERPRENEURSHIP

The process of bearing risk of a running business The entrepreneur is the person who takes the risk of converting a new idea into reality. According to Babson College Research Team USA- An entrepreneur is the person who habitually creates and innovates something to build a recognized value through perceived opportunities.

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. Greg Watson Entrepreneurs see problems as opportunities, then take action to identify the solutions to those problems and the customers who will pay to have those problems solved. Entrepreneurial success is simply a function of the ability of an entrepreneur to see these opportunities in the marketplace, initiate change (or take advantage of change) and create value through solutions.

The pursuit of opportunity without regard to resources currently controlled

-Roberts et al Entrepreneurship is a certain kind of activity. At the heart of that activity is innovation; the effort to create purposeful, focused change in an enterprizes economic or social potential -Peter Drucker Entrepreneurship is a purposeful activity of an individual or a group of associate individuals, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods and services -Arthur Cole

Entrepreneurship is based on purposeful and systematic innovation. It

included not only the independent businessmen but also company directors and managers who actually carry out innovative functions. - Joseph Schumpeter

FEATURES/ CHARACTERISTICS OF ENTREPRENEURSHIP

A theory of evolution of economic activities. A continuous process of economic development. An ingredient to economic development. Essentially a creative activity or an innovative function. A risk taking factor which is responsible for an end result. Usually understood with reference to individual business. The name given to the factor of production, which performs the functions of enterprise. Creates awareness among people about economic activity. Generates Self-employment and additional employment organizing function Dynamic Knowledge based practice Environment oriented Based upon strong managerial and leadership foundations

ROLE/SIGNIFICANCE/ REASONS FOR ENTREPRENEURSHIP

To improve backwardness of the people. Economic development of the region. To analyse resource utilization. Proper utilization of human potentiality. Special attention to take up new activities. To create self-employment and generation of employment opportunity. (SMES, MSMES) Eradication of regional imbalances. Better economic gain. meeting local demands Promotion of international business (export import) Increase national income PERSONAL REASONS Be my own boss Pursue my own ideas High financial rewards

Promoting Entrepreneurship
In India, where over 30 crores people are living below the poverty line, it is simply impossible for any government to provide means of livelihood to everyone. Such situations surely demand for a continuous effort from the society, where the people are encouraged to come up with their entrepreneurial initiative.

Requirements to be an entrepreneur
Innovation Creativity Risk taking Organizing

Qualities of Entrepreneur Common sense Specialized knowledge of the field Self confidence Ability to get things done Creative, information seeker, persuasive, persistent, committed, efficient monitoring skills Leadership Communication Skills Determination Willingness to take Risk Willingness to Accept Criticism Self Motivation Thinkers, doers, planners and organizers Quality conscious

The characteristics of an unique entrepreneur are :

Need for achievement High need for power Independence Propensity to take risk Personal modernity Support

WHO IS AN ENTREPRENUER He is a person who develops and owns his own enterprise He is a moderate risk taker and works under uncertainty for achieving the goal. He is innovative He peruses the deviant pursuits Reflects strong urge to be independent. Persistently tries to do something better. Dissatisfied with routine activities. Prepared to withstand the hard life. Determined but patient Exhibits sense of leadership Also exhibits sense of competitiveness Takes personals responsibility Oriented towards the future. Tends to persist in the face to adversity Convert a situation into opportunity.

The idea of Infosys was born on a morning in January 1981. That fateful day, N R Narayana Murthy and six software engineers sat in his apartment debating how they could create a company to write software codes. Six months later, Infosys was registered as a private limited company on July 2, 1981. Infosys co-founder N S Raghavan's house in Matunga, northcentral Mumbai, was its registered office. It was then known as Infosys Consultants Pvt Ltd. What was the company's starting capital? US $250. Murthy borrowed $250 from his wife Sudha to start the company. The front room of Murthy's home was Infosys' first office, although the registered office was Raghavan's home.

Babu says: It was very difficult because back home the familys income was nothing. My mother started working. There was nobody else working and the entire family was dependent on me and financially also we lived in a hut at that point of time and there was so much requirement for money and on one side the money was tempting that you could get a job, you could get a home, you could get a car or bungalow whatever you wanted. On the other hand, you have your dreams to start a company from scratch and take it to the next level over a period of time through only hard work and determination, so either the easy route or the challenging route. I said if I am not going to take up this challenging route right now, I will never ever take it later in my life. My family suffered for 26 years only because of money so here is a chance to get the money but I said I dont need it right now. I am equipped enough to deal with the situation so I took up this entrepreneurial role. Serving 8,000 meals every day, Food King today serves five universities across India and its gross revenue is Rs 8 crore. Sarath has also recently launched a fast food restaurant and hopes to take the count to a 1000 by 2016 touching revenues of Rs 50 crore but the journey for this entrepreneur . His determination has made him not just a true leader in business but in public life as well.

Types of Entrepreneurs
Social entrepreneur A social entrepreneur is motivated by a desire to help, improve and transform social, environmental, educational and economic conditions. Serial entrepreneur A serial entrepreneur is one who continuously comes up with new ideas and starts new businesses. In the media, the serial entrepreneur is represented as possessing a higher propensity for risk, innovation and achievement. Serial entrepreneurs are more likely to experience repeated entrepreneurial success. They are more likely to take risks and recover from business failure Lifestyle entrepreneur A lifestyle entrepreneur places passion before profit when launching a business in order to combine personal interests and talent with the ability to earn a living. Many entrepreneurs may be primarily motivated by the intention to make their business profitable in order to sell to shareholders. In contrast, a lifestyle entrepreneur intentionally chooses a business model intended to develop and grow their business in order to make a long-term, sustainable and viable living working in a field where they have a particular interest, passion, talent, knowledge or high degree of expertise.

According to Richard Daft 5 Types of Entrepreneurs

1. Idealist The idealist entrepreneur is the most common type of entrepreneur shown above. He/She likes innovation and enjoys working on something new or creative or something personally meaningful. 2. Optimizers The optimizer entrepreneur comes in a close second and is content with the personal satisfaction of simply being a business owner. 3. Hard Workers The hard workers entrepreneur category includes persons who enjoy putting in long hours to build a larger more profitable business. They like the challenge it presents and of course reap the most rewards if the business turns out to be a multi-million dollar enterprise. 4. Jugglers The juggler entrepreneur likes the concept that the business gives them a chance to handle everything themselves. They are usually people with lots of energy and exist on the pressure of meeting deadlines, paying bills and of course making payroll. 5. Sustainers The sustainers entrepreneur category consists of people who like the thought of balancing work and a personal life. Most often they do not wish the business to grow too large where it will cut into their personal life too much.

Classification on the basis of ownership:

1. Founders or pure entrepreneurs 2. Second-generation operators of family-owned business 3. Franchisees 4. Owner-managers

Classification on the basis of personality traits and their style of running the business:
1. The achiever 2. The induced entrepreneur 3. The idea generator 4. The real manager

Classification based on the type of business:

1. Industrial entrepreneur 2. Trading entrepreneur 3. Corporate entrepreneur 4. Agricultural entrepreneur

Based on the stages of development:

1. First generation entrepreneur 2. Modern entrepreneur 3. Classical entrepreneur

Others
Classification has been given by Clarence Danhof , an entrepreneur may be classified as, 1. Innovative entrepreneur 2. Adoptive or imitative entrepreneur 3. Fabian entrepreneur (timid and cautious) 4. Drone entrepreneur (Drone entrepreneur is one who blindly follows the traditional methods of
production even when it causes loss to him)

Innovative entrepreneur
This type of entrepreneur is highly motivated and talented and innovation is his key function. According to Peter F.Drucker an innovating entrepreneur is one who always searches for change, responds to it, and exploits it as an opportunity. He exhibit his talents like, 1. Introduction of a new product or introduction of a new quality of an existing product. 2. Introduction of a new method of production. 3. Opening of a new market. An inventor discovers new methods and new materials. But an innovator commercialises these inventions to produce new and better goods.

Adoptive or imitative entrepreneur An imitative entrepreneur does not innovate anything by himself, but, he only imitates
techniques and technologies innovated by others. This type of entrepreneur has a vital role to play in developing countries. Innovative entrepreneurs are scarce in developing countries. Hence developing countries need imitators who are responsible for the development of their countries with the limited resources available in these countries.

Fabian entrepreneur
This type of entrepreneur is not ready to take any risk at all. He has neither the will to introduce any new changes nor the desire to adopt new methods. He is ready to imitate only when it becomes perfectly clear.

Conclusions of the experiment: Traditional beliefs do not inhibit an entrepreneur Suitable training can provide necessary motivation to an entrepreneur The achievement motivation had a positive impact on the performance of the participants

It was the Kakinada experiment that made people realise the importance of EDP (Entrepreneurial Development Programme) to induce motivation and competence in young, prospective entrepreneurs

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