Fundamentals of Entrepreneurship

B.Com II year

1. Fundamentals of Entrepreneurship (Group III, paper II) Manjula Rajput Assistant Professor Shri Shankaracharya Mahavidyalaya Junwani Bhilai

2. An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures . Entrepreneurs play a key role in any economy, using the skills and initiative necessary to anticipate needs and bring good new ideas to market. Entrepreneurs who prove to be successful in taking on the risks of a  startup  are rewarded with profits, fame, and continued growth opportunities. Those who fail, suffer losses and become less prevalent in the markets. Who Is an Entrepreneur?

3. “Entrepreneur is a person who pays a certain price for a product to resell it at an uncertain price then by making decision about obtaining and usual resources.”--- Richard Cantillon “Entrepreneur is a specialized group of persons who bears risk and deals with uncertainty.”– F.H.Knight Definition

4. Key Words A person who undertakes the risk of starting a new business venture is called and entrepreneur. An entrepreneur creates a firm, which aggregates capital and labor in order to produce goods or services for profit. Entrepreneurship is an important driver of economic growth and innovation. Entrepreneurship is high-risk, but also can be high-reward as it serves to generate economic wealth, growth, and innovation.

5. Leadership Risk taking Decision making Business planning Innovativeness Talking initiative Goal oriented High achiever Motivator Self confidence Human relation ability Long term involvement Problem solver Characteristics of an Entrepreneur

6. Innovating or Discovering business opportunity Detailed investigation Assembly Establishing an enterprise Managing enterprise Risk taking Growth and development Functions of an Entrepreneur

7. Establishment of viable Units Increase in Employment opportunities Optimum Utilisation of Resources Minimize Socio-economic problems Establishing self sufficient society Tool of Social Changes Promotes Capital Formation Execution of Government policies Promote Innovations Impertinence /Need of Entrepreneurship

8. Entrepreneurship is the act of creating a business or businesses while building and scaling it to generate a profit . But as a basic entrepreneurship definition, that one is a bit limiting. The more modern entrepreneurship definition is also about transforming the world by solving big problems. Like bringing about social change or creating an innovative product that challenges the status quo of how we live our lives on a daily basis . What the entrepreneurship definition doesn’t tell you is that entrepreneurship is what people do to take their career and dreams into their hands and lead it in the direction they want.  What is Entrepreneurship?

9. The meaning of entrepreneurship involves an entrepreneur who takes action to make a change in the world. Whether startup entrepreneurs solve a problem that many struggle with each day, bring people together in a way no one has before, or build something revolutionary that advances society, they all have one thing in common: action. It’s not some idea that’s stuck in your head. Entrepreneurs take the idea and execute it. Entrepreneurship is about execution of ideas.

10. Entrepreneurs create jobs Entrepreneurs innovate Entrepreneurs create change Entrepreneurs give to society(Tax) Entrepreneurs add to national income Why is entrepreneurship so important? 

11. Ancient India was known across the world for its affluence and wealth. Traders from all over the world travelled to India to take part in this affluence. Be it the Mughals, the Portuguese, the Turks or the British – all of them ventured into Indian boundaries for various financial reasons. While over a long period of time, the entrepreneurial drive among Indians was notably absent, modern India has risen up to the task again. Even those who have little or no entrepreneurial experience are choosing to take part in an entrepreneurship management course to gain theoretical knowledge as well as practical experience before starting their entrepreneurial journey.   The Emergence of Entrepreneurial Class

12. It is notable how Indian entrepreneurship is seeing a rise these days. The country stands third in the list of countries with the fastest-growing list of start-ups. The first two countries are the USA and the UK. The digitization of India has led to an ever-increasing interest in the online market. Both urban and rural India are seeing a boom in the way internet-based apps and products are interacting with the people.

13. Caste Family Background Occupational Background Religious Background Education & Technical Knowledge Migratory character Individual Factor Form of ownership Development of Entrepreneurial Class

14. Raising Funds for the Business: The challenge for any start-up lies in raising funds for the business. To do so, they need to have a dependable business plan and a strategy on how they want to enter the market. Start-ups get funds from venture capitalists once they have convinced them about the venture’s potential for success. Knowledge on How to Run a Business: As simple as it may seem, any venture needs to have a good plan, to begin with. Various business schools have started entrepreneurship courses to answer the requirements of interested students who seek to become an entrepreneur. Challenges for Indian Entrepreneurs

15. Keeping Up with Technology: t his point is important for start-ups in the technology sector. It is important for them to keep track of the latest technology and stay ahead of the curve. These days, technological innovations are happening every day leading to technology getting obsolete quickly. They need to keep on improving their products and give new and innovative products to their customers. Quality of Human Resources: Any business’ success is dependent on the people who work for it. It is critical to have the right mix of people. These people should be trained for their job profiles.

16. Encouraging schemes by the government authorities The Rise of Technology Female Entrepreneurs Factors Leading to Increase in Entrepreneurship

17. Economic development of a country is a complex phenomenon dependent upon socio-economic environment. Role of socio economic environment can be studied by analyzing the following factors: Social Factor Economic Factor Role of Socio Economic Environment

18. Social Factors Cast & Community Family Background Educational Background Occupational background Motivation Managerial ability Economic Factors Capital Labour Raw material Market Stage of the economy Investment opportunities

19. Theories of Entrepreneurship

20. Economic theory Sociological Theory Theory of Cultural Values Psychological theory Innovative / Dynamic Theory Harvard school theory Theories of Entrepreneurship

21. Economic theories of entrepreneurship The economic theory is among the main economic theories of entrepreneurship. This theory asserts that the economy and entrepreneurship are closely linked together. Entrepreneurship and economic growth can only work when the economic conditions are favorable. As such, it is usually hard for entrepreneurs to realize growth when the economy is doing poorly. This theory further states that entrepreneurs find motivation in the presence of economic incentives which include industrial policy, policies of taxation, financial and resource sources, availability of infrastructure, investment opportunities, marketing opportunities, availability of information regarding the conditions of the market and technology among others . An entrepreneur is therefore a risk taker because he can never fully predict about the favorability of the economic conditions in future . Economic theories

22. Sociological theories of entrepreneurship This is also among the contemporary theories of entrepreneurship. It argues that the success of an entrepreneur is affected by their social culture. They are more likely to achieve growth in particular social settings. Among the social aspects that affect an entrepreneur include the social values, customs, taboos, religious beliefs and other cultural activities. He or she has to conform to the social expectations when carrying out their business. Sociological theories

23. This is also the top theories of entrepreneurship in Kenya. An entrepreneur does not merely conduct business to better their lives alone. Rather, through their activities, they are able to cause development in the economy and the society at large. The inventor of this theory, Joseph Schumpeter, argued that an entrepreneur grows by being creative and having a foresight. One of the creative things that an entrepreneur does is introduce a new product. A new product often comes to solve a certain problem in the society or make it more convenient. Another innovative aspect is that in a bid to achieve growth and have more profits, an entrepreneur introduces a new production method. Notably, enhanced production methods lead to a reduction in the cost of production and an increase in the goods manufactured. Innovation also comes in when an entrepreneur opens a new market. This is often done after the identification of a growth opportunity or a void in the economy. The discovery of new sources of raw materials and establishment of organization are also aspects of entrepreneurs being innovators. These activities of an entrepreneur lead to the creation of jobs and accessibility of commodities, thus improving the economy. Entrepreneurship Innovation theory

24. According to this theory, an entrepreneur experiences growth when the society has several individuals with the necessary psychological characteristics. These characteristics include having a vision, being able to face opposition and having the need to achieve highly. A person can only possess these traits during their upbringing, when they excel, when they are self-reliant and when there is low father dominance.

25. Theory of high achievement/Theory of achievement motivation Not all people are interested in being entrepreneurs. But David McClelland argued that people who aim to become entrepreneurs must have a need for achievement, a need for affiliation and a need for power. These act as the basis upon which an entrepreneurial personality is established. Achievement motivation has a lot of significance in entrepreneurship because it is the one that leads to economic and social development. Entrepreneurs always want to achieve success in their endeavors. The need for power comes from the urge to gain dominance in a certain field and thus cause influence among other people. The need for affiliation comes from the urge to motive of maintain friendships with other people. Theory of high achievement/Theory of achievement motivation

26. Fundamental of entrepreneurship Book : SBPD Dr. O.P.Gupta www.google Fundamental of entrepreneurship Book Sahitya bhawn publication.   https:// www.tuko.co.ke/283663-theories-entrepreneurship.html References