Objective

Definition
Meaning and concept
Pros and Corn
Successful entrepreneurs
Risk in Business
Type of Start Up firms
Process
 General Definition: Someone who creates and run a
Business is called Entrepreneur (legal Activity)
Definition with reference

According to Schumpeter, an entrepreneur is a

person who is willing and able to convert a new
idea or invention into a successful innovation.

Adam Smith's Wealth of Nations, he explained that. nations

grow wealthy through changes in the division of labor.
Using Smith's insight, entre- preneurship can be defined as
the study of human actions that lead to changes in the
division.
 A. H. Cole Entrepreneurship is the purposeful
activity of an individual or a group of associated
individuals, undertaken to initiate, maintain or
aggrandize profit by production or distribution of
economic goods and services
 Entrepreneur
Mobilize
Human

financial Resources
Managerial
Material

to bring Project to fruition (

Results)
1755 Cantillon A Person bearing
Risk
1816 SAY Agent combining all
factors of production
1921 Knight Recipients of pure
Profits
1934 Joseph Schumpeter Ability to identify new
opportunities
1985 Stevenson The relentless pursuit
of opportunities
1988 Gartner Actions taken to
create organization
1991 Bygrave & hofer characteristics of the
entrepreneur process
Creator Creation
Organizer Organization
Innovator Innovation
Initiator Initiative
Decision-maker Decision
Planner Planning
Leader Leadership
Motivator Motivation
Programmer Action
RISK TAKER Risk Taking
Communicator Communication
Administrator Administrator
 Corporate Entrepreneurship

Corporate Entrepreneurship is a process used to develop new

businesses, products, services or processes inside of an
existing organization to create value and generate new
revenue growth through entrepreneurial thought and action.

Copyright 2012 Pearson

Education, Inc. publishingas 1-
Prentice Hall 7
 90% of the world jobs are created by the entrepreneur
Problem Solvers
Source of new products and innovation
Add to national Income
Create social changes
Produce new goods and services
The three primary reasons that people become
entrepreneurs and start their own firms

Desire to be their own boss

Desire to pursue their

own ideas

Financial rewards

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Education, Inc. publishing as 1-
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 Activity
Characteristics of An Entrepreneur
 Self Confident and optimistic
Able to take calculated risk
Respond positively to challenge
Flexible and able to adapt
Knowledgeable of market
Independent minded
Energetic and efficient
Creative
Dynamic leader
Responsive to suggestion
Take initiative
Resourceful and preserving
Responsive to criticism
Entrepreneur Risk
Bearer
 Financial Risk
Family and social Risk
Career risk
Psychological Risk
Market risk
Political Risk
Reputational risk
Strategic Risk
Management risk
 Salary-substitute Firms
A business you create that pays you enough to
replace a salary that you would market a job Not in
it to create a chain of your business. Common/ easy
available products or services that are not particularly
innovative
Example

Hair Salon, Dry Cleaners, Etc.

Entrepreneurial Firms
Create a new idea/invention to market and create
into a business
 Lifestyle Firms
Provide their owner the opportunity to pursue a
particular sport, hobby, or pastime. These firms are
not innovative, nor do they grow quickly. Commonly,
lifestyle companies promote a particular sport, hobby,
or pastime and may employ only the owner or just
handful people
Example

Surf Shop, Ski School, Etc

The Entrepreneurial Process Consists of Four Steps
Step 1: Deciding to become an entrepreneur.
Step 2: Developing successful business ideas.
Step 3: Moving from an idea to an entrepreneurial firm.
Step 4: Managing and growing the entrepreneurial firm.

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Education, Inc. publishing as 1-
Prentice Hall 16
Step 1 Step 2
Developing Successful Business Ideas

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Step 3 Step 4

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Education, Inc. publishing as 1-
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End