Entrepreneurship: concept ,types ,characteristics ,Nature & functions

Entrepreneurship: concept ,types ,characteristics ,Nature & functions
Developing Corporate Entrepreneurship

1. OD MBA 253T (SEM-II) ENTREPRENEURIAL DEVELOPMENT AND MSME’s TOPICS TO BE COVERED: (L-1),(Section-A) Entrepreneurship: Concepts ,Types, Charactertics ,Nature &Functions Developing Corporate Entrepreneurship : Models of Corporate Entrepreneurship, Advantages & Disadvantages Submitted by: Amandeep Assistant Professor https://www.linkedin.com/in/amandeep-thakur-7a81942a/

2. E NTREPRENEURSHIP Innovation. Risk-taking. Vision. Organizing skill. The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses . Entrepreneurship is the ability to identify an investment opportunity and to organize an enterprise in order to contribute for the real economic growth. Entrepreneurship refers to a creative and innovative response to the environment and an ability to recognize, initiative and exploit an economic opportunity.

3. Concepts / Theories of Entrepreneurship Economic Approach Sociological Approach Psychological Approach Anthropolological Approach

4. Characteristics of Entrepreneurship Ability to create Enterprise Managerial and Leadership Function Goal Oriented Activity Risk Bearing Activity Organising Function Gap Filling Function Dynamic Process Innovative Function

5. Nature & Functions of Entrepreneurship Capital Formation Improvement in Per capita Income Generation of Employment Balanced Regional Development Improvement in Living Standards Economic Independence Backward & Forward Linkage Creates Atmosphere of Enthusiasm

6. Entrepreneurial Characteristics Being an entrepreneur requires specific characteristics and skills that are often achieved through education, hard work, and planning. Risk Taker Businesses face risk. Entrepreneurs minimize risk through research, planning, and skill development. Perceptive Entrepreneurs view problems as opportunities and challenges. Curious Entrepreneurs like to know how things work. They take the time and initiative to pursue the unknown.

7. Entrepreneurial Characteristics Imaginative Entrepreneurs are creative. They imagine solutions to problems that encourage them to create new products and generate ideas. P ersistent True entrepreneurs face bureaucracy, make mistakes, receive criticism, and deal with money, family, or stress problems. But they still stick to their dreams of seeing the venture succeed. Goal-setting Entrepreneurs are motivated by the excitement of staring a new business. Once achieved, they seek out new goals or ventures to try.

8. Entrepreneurial Characteristics Self-confident Entrepreneurs believe in themselves. Their self-confidence takes care of any doubts they may have. Flexible Entrepreneurs must be flexible in order to adapt to changing trends, markets, technologies, rules, and economic environments. Independent An entrepreneur’s desire for control and the ability to make decisions often makes it difficult for them to work in a controlled environment. Hardworking Entrepreneurs need a great deal of energy to see a venture start and succeed. Yet they are not deterred by the long hours to achieve their goal.

9. Types of Entrepreurship Small business entrepreneurship: This type of entrepreneurship refers to any kind of small business that has been created by one person, without the goal to expand or franchise. For example, if you were planning to open a nail salon, a general store or a taco truck your goal would be to launch a single store. Scalable startup entrepreneurship: This start-up entrepreneur starts a business knowing that their vision can change the world. They attract investors who think and encourage people who think out of the box. The research focuses on a scalable business and experimental models, so, they hire the best and the brightest employees. They require more venture capital to fuel and back their project or business.

10. Types of Entrepreurship Large Company Entrepreneurship: Large company entrepreneurship refers to companies like Disney, Google, Toyota, and Microsoft who have finite life cycles, as in, they keep innovating and offering consumers new products that are variants around their core product-line. A distinguishing feature of this type of entrepreneurship is that it is not starting a new business, rather creating new products or subsidiaries within an existing company, or acquiring smaller businesses (like when Facebook bought Instagram and WhatsApp ). More specifically, these divisions are focused on reaching new markets, expanding the customer base and growing the business—sometimes via new company sites. Social entrepreneurship : Social entrepreneurs are innovators whose main goal is to create products and services that both benefit the world, and make money. Social entrepreneurship relates to nonprofit, for-profit, or hybrid companies that are committed to social or environmental change. Some examples include educational programs, microfinance institutions, and companies that provide banking services in undeveloped countries

11. Types of Entrepreurship Imitative Entrepreneurship : This entrepreneurship mimics or imitates existing business ideas and works hard to improve them. Such companies imitate already functioning products and services in the market, usually under a franchise agreement. Such entrepreneurs have no interest in innovation, though they are ready to work on and improve the existing processes. Innovative Entrepreneurship : The foundation of innovative entrepreneurship is inventions and new ideas. These entrepreneurs can think about novel ways of doing business and have the potential to turn a new idea into a successful venture. They are business leaders and contribute significantly to the economy. 

12. Need of Entrepreneurship Increases national production Balanced area development Dispersal of economic power Reinvestment of profit for the welfare of the area of profit generation Development is a function of motivation and human resource Entrepreneurial awareness Development is a function of motivation and human resource Entrepreneurial awareness Aim to create employment opportunities, and generate wealth at an incremental and sustainable rate.

13. Steps to Promote Entrepreneurship Setup Entrepreneurial Development Institutes in every state.  Recognize and celebrate entrepreneurship among youth as a preferred career. Enhance access to finance for start-ups in every possible way. Reduce the time of starting a business and ease down the complex procedures of Govt licensing and other such activities like finance and banking etc. Promote entrepreneurship among women and other underprivileged.

14. Developing Corporate entrepreneurship Corporate Entrepreneurship is the process of attempting to identify, encourage, and assist entrepreneurship within an established company to create new products or services that become new sources of revenue and leverage the parent company's assets and market position. The term 'Corporate Entrepreneurship' was first used by   Professor Michael E. Gerber   in his book named  ' The E-Myth Revisited: Why Most Small Businesses Fail and What to Do About It'.  It embodies one of the major mediums for corporate innovation, growth, and curtailment of cost. It preserves and helps in increasing employment and boosting the market while simultaneously providing aid to limit or channel some of the inconsistencies in the population of businesses.

15. Models of Corporate Entrepreneurship There are four models of corporate entrepreneurship: opportunist, enabler, advocate and producer. Organizations may use these models as is, or they may combine specific elements from different models to personalize their corporate entrepreneurship plan to fit their unique needs and goals

16. 1.Opportunist : Companies often use an opportunist model when they are at the beginning of their entrepreneurial journey. This model focuses on developing resources and identifying ownership throughout the organization, encouraging employees to pursue new ideas and opportunities proactively. The best workplace culture for this model is engaging and collaborative, enabling an organization to quickly capitalize on emerging market trends. 2. Enabler : The enabler model is the opposite of the opportunist model. With this model, employees are free to come up with and act on their ideas if they benefit the company. Unlike the opportunist model, the enabler model uses specific resources to pursue a business venture when employees come up with new ideas.

17. Models of Corporate Entrepreneurship 3. The Advocate Model : The Advocate Model focuses on developing new businesses to become more large-scale corporations. Its essential function is to coach and facilitate business units in pursuing new opportunities and also to support corporate entrepreneurship teams. The typical challenge of this model is to find 'business builders' among the executives. Advocate organizations act as innovation experts, encouraging corporate entrepreneurship together with business units. 4. The Producer Model : Many companies pursue corporate entrepreneurship by establishing and supporting formal associations with significant funds or active influence over business units. The Producer Model utilizes focused power, where the business shares are held by only a few possessors and dedicated resources to help grease developing projects, facilitate collaboration, and the development of new business units. The Producer Model also aims to encourage cross-unit collaboration, build potentially disruptive businesses, and create pathways for executives to pursue careers outside their business units.

18. Advantages of Corporate Entrepreneurship 1. Organization Growth and Profitability:  When organizations use various new strategies to make the most of opportunities near them, it will increase the organization’s profitability and it’s growth. 2. Availability of Resources : Corporate entrepreneurs get access to different resources, including finances, established sales force, brand, and customer base, which brings them one step ahead of others. 3. Availability of Alternatives : Due to diversity among the employees, there is greater knowledge inside the group which provides a wide range of alternatives to consider before making a decision. 4. Professional Connections : A large network of corporate entrepreneurs can assist the workforce in developing new business ideas.

19. Disadvantages of Corporate Entrepreneurship 1. Long Approval Cycles : It is crucial to understand that they can’t decide without getting the approval of a higher authority. Hence, it becomes a lengthy and time-consuming process of getting approval before taking any decision. 2. Limited Financial Rewards : Corporate entrepreneurs receive fewer rewards as compared to their efforts for the project, which might be one of the reasons that affect company morale. It discourages employees from working profoundly. 3. Competition inside the Group : Competition among the members can undermine the importance of the ultimate goal of the project. 4. Herd-thinking : Herd-thinking tends to force the group to agree and accept the first apparent solution without considering alternatives. It also shows a lack of open ownership.

20. Every Big Enterprises Starts with a small Dream So Keep Dreaming ……………………