Something differently is a necessary condition to be called a person as an entrepreneur. The entrepreneur needs to apply invention after invention on a continuous basis to meet the customers’ changing demands for products. 3. Thrill-Seeking(risk-taking): He always takes the challenges for producing something new for the society. He facing challenges due to uncertainty of future and selling price. Other Important points: Besides these above, the entrepreneur is always helps economic development of any society, community, region and nation. Entrepreneurship is for: o Provide opportunity to unemployed, o Help to generate wealth for nation, o Help generate revenue for governance, and welfare and developmental work in the nation, and o Help improve quality of living. Motivation for Economics development and Entrepreneurial Achievement: Motivation for Entrepreneurs 1. 2. 3. 4. 5. Economic gain Independence Wealth creation Self employment Social status Motivation for Government 1. 2. 3. 4. 5. Best use of resources Fill up the demand-supply gap Supplement regional improvement Freedom from imports Employment generation Motivation for Corporate Houses 1. 2. 3. 4. 5. 6. Achieve monopoly Increase earning Building goodwill Proper use of surplus fund Explore new opportunities Diversification to various fields Enterprise & Society:
Enterprises are important ingredient of the modern society Enterprises are symbol of civilization and development in the society Enterprises cater to the need of goods and services of the society Enterprises bring social, educational and cultural development in the society Benefits 1. 2. 3. 4. 5. Enterprises are providing goods and services Enterprises are providing both direct and indirect employment. Enterprises brings up economic development Enterprises are responsible for the distribution of national wealth Enterprises create entrepreneurs. Hazards 1. 2. 3. 4. Enterprises causes environmental pollution Concentration of population in small areas It causes/reason of economic imbalance It disturb traditional professions Why to start business? 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Self-employment Desire to be successful Envious (jealous) at others’ success To meet challenges To earn money To earn name and fame To utilize talent To utilize idle time and resources Pain of unemployment or underemployment To take advantage of business situations To utilize local available resources How to start business? 1. 2. 3. 4. 5. 6. 7. 8. 9. Decide what business to do Decide where to do business When to start business? How much to produce? How to market? Where to market? How much fund to invest? Locating sources of capital Sourcing manpower
Entrepreneurial Traits and Skills Traits (Personality/behavior) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. They are self confidence They risk taker. They take their own decision They are highly motivated They are good managers They are leaders They are innovative They are quality conscious They are achievement oriented They are goal oriented They resolve conflict Skills (Talent/ability) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. They are good managers They are good planners They are capable of controlling the activities They can self execute They confidently delegate the work They can forecast They are good motivators They are innovators They can visualize the future prospect of their venture They are risk-takers They are result oriented Mind Vs Money in commencing New Venture Starting an enterprise is always a big challenge for any entrepreneur whether new or already existing. But the difference lies in the fact that an entrepreneur, who is already experienced in ways of business, takes decisions based on such experiences. In case of new entrepreneur, there is no such help. 1. Not an easy task for a first-timer 2. First-timer uses money more than mind 3. Existing entrepreneur uses mind more than money Entrepreneurial Success and Failures Success: Internal Reasons
1. 2. 3. 4. 5. 6. Efficient management Quality goods and services Good reputation of the business and its products Effective marketing and selling networks Proper financial management Timely updating of products and technology External Reasons 1. Increase in demand 2. Availability of quality manpower 3. Suitable govt. policies 4. Availability of appropriate raw materials at affordable price 5. Low level of competition 6. Opening of new markets 7. Natural environment Failure: Internal Reasons 1. Ineffective management 2. Obsolete technology 3. Ineffective sales and marketing 4. Higher cost of production 5. Low quality of manpower 6. Low quality of Human Resource External Reasons 1. Shortage of inputs such as raw materials, power, quality manpower and finance 2. Change of technology 3. Change in taste, fashion, etc. 4. Higher level of competition 5. Reduction in demand 6. Change in govt. policies 7. Availability of better substitute and alternatives 8. Natural causes Environmental Dynamics and Change ‘Environment’ means the aggregate of physical surrounding, conditions, circumstances, etc., i.e. it includes all what exits around. Accordingly, business environment means all what surrounds a business enterprise. In other words, business environment refers to all its surroundings in which it operates. Prosperity of a business may go down or go up depending upon the situation. An entrepreneur has to keep an eye over such forces to make adjustments in future so as to keep the business interest of the enterprise high all the time.