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Note for Management Entereprenurship - ME By CHIRANJIBI RAMBABU Achary

  • Management Entereprenurship - ME
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Chiranjibi Rambabu Achary
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ENTREPRENEURSHIP DEVELOPMENT A Chiranjibi Rambabu Achary GIET UNIVERSITY Gunupur

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Entrepreneurship Development Module I -- Entrepreneurship Entrepreneurship -- Introduction Entrepreneurial development today has become very significant; in view of its being a key to economic development. The objectives of industrial development, regional growth, and employment generation depend upon entrepreneurial development. Entrepreneurs are, thus, the seeds of industrial development and the fruits of industrial development are greater employment opportunities to unemployed youth, increase in per capita income, higher standard of living and increased individual saving, revenue to the government in the form of income tax, sales tax, export duties, import duties, and balanced regional development. Concept of Entrepreneurship The word ―entrepreneur‖ is derived from the French verb enterprendre, which means ‗to undertake‘. This refers to those who ―undertake‖ the risk of new enterprises. An enterprise is created by an entrepreneur. The process of creation is called ―entrepreneurship‖. Entrepreneurship is a process of actions of an entrepreneur who is a person always in search of something new and exploits such ideas into gainful opportunities by accepting the risk and uncertainty with the enterprise. There are fundamentally two different types of entrepreneurship. Small Medium Enterprise entrepreneurship (SME): These are fundamentally small companies and stay small. Their focus is local market. They opted services businesses. They usually grow for some time extent but tabbed out of the market due to lack of innovation. Examples: dry cleaner, restaurant etc. Innovation driven Enterprise entrepreneurship (IDE): This one is looking for the global market. It required more cash to start the business. Therefore there is a negative cash flow at the beginning of the business. It involves lot of risk. Companies of this type may not make it; but if they make it, they will grow exponentially. A CHIRANJIBI RAMBABU ACHARY ASST. PROFESSOR MBA, GIET UNIVERSITY 1

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Entrepreneurship Development Intrapreneurship Intrapreneurs are not entering into their own, work venture, but they are working within a company, thus the ―intra‖ part. It is the act of behaving like an entrepreneur while working within a large organization. An intrapreneur (also referred to as inside entrepreneur) is an employee within an organization who has certain entrepreneurial skills and who is given the responsibility and authority to use those entrepreneurial skills to develop a new product without incurring the risks associated with it. As intraprenuers are self-motivated, free thinkers, they can transform your startup more quickly than others can. Therefore you need to hire intrapreneurs in case are you looking to scale up your startup. Example: Google Gmail was developed by one of the intrapreneurs in Google, Paul Buchheit, who worked on this project for 4 years till its launch on April 1, 2004. Sony: The PlayStation as we know it is the brainchild of an intrapreneur in Sony. Ken Kutaragi, an employee of Sony, wanted to make a better version of the Nintendo console and came up with the idea of the PlayStation which was recognized and rewarded by the CEO of the company. A CHIRANJIBI RAMBABU ACHARY ASST. PROFESSOR MBA, GIET UNIVERSITY 2

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Entrepreneurship Development Difference between an Entrepreneur and an Intrapreneur Entrepreneur Intrapreneur Entrepreneur is free and the leader of the Intrapreneur is an employee operation. An entrepreneur himself raises funds required Funds are not raised by the intrapreneur. for the enterprise. Bears all types of risk. Bears moderate risk Operates from outside the organization. Operates from inside the organization. Independent decisions to execute dreams. Collaborative decisions to execute dreams. Types of Entrepreneurs  Classification by Clarence Danhof  Innovating Entrepreneurs: is one who introduces new goods, inaugurates new methods of production, exploit new source of material, discover new market and reorganizes the enterprise.  Imitative or Adoptive Entrepreneurs: readiness to adopt successful innovation inaugurated by innovating entrepreneurs.  Fabian Entrepreneur: They are very cautious and skeptical in adopting and implementing any change. They avoid risks and tend to follow their predecessors.  Drone Entrepreneurs: they continue to operate in their traditional way and resist changes. When their product loses marketability, they are pushed out of market. A CHIRANJIBI RAMBABU ACHARY ASST. PROFESSOR MBA, GIET UNIVERSITY 3

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