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1. Entrepreneurship Session 2

2. Entrepreneur Entrepreneur is taken from the French word entreprende which means to undertake. Webster Dictionary explains the term entrepreneur as “ one who organises , manages and assumes the risks of a business or enterprise .”

3. Classification of entrepreneurs Entrepreneurs can be classified according to 1. Timing of venture creation 2. Socio- cultural variables 3. Based on Entrepreneurial Activity

4. Based on Timing of Venture Creation: Early starters ( teenagers) Tilak Mehta – Papers and parcel – 12 yrs Suhas Gopinath started Globals Inc. at the age of fourteen. Shravan and Sanjay Kumaran- youngest web developers Experienced ( 35 yrs ) For eg. Narayan Murthy started Infosys at the age of 35 years old. Binny Bansal- 36 yrs - Flipkart Mature ( above 50yrs) For eg. Ashok Soota and Subroto Bagchi , quit Wipro to start Mindtree BVR Subbu, the ex-CEO of Hyundai India, started a venture that bought the plant of Daewoo in India.

5. Based on Socio-cultural Variables : 1st generation entrepreneurs For eg. Dhirubhai Ambani and Narayan Murthy From Business families For eg. Tatas, Birlas , Wadias , Murugappas , Singhanias Minority entrepreneurs For eg.Tribals of Central India, the hill people of the North-East and some socio-economically backward classes. Micro Entrepreneurs- ( Small business) Eg Small business owners, Bakery, beauty Parlour Women Entrepreneurs For eg. Kiran Majumdar Shaw founded Biocon

6. Novice For eg. Ritesh Agarwal, Richa Kar , Dipendra Goyal Serial For eg. Rakesh Mathur has started Webaroo in a series of Armedia , Purple Yogi and Junglee. Naveen Jain- 3 businesses- Moon Express, Intelius , Infospace Portfolio Owning various portfolio of Businesses E.g. Narayan Murty , Azim Premji, Mukesh Ambani.. Based on Entrepreneurial Activity:

7. Some more types E-Entrepreneurs Art of establishing new companies especially in the net. Rural Entrepreneurs Conducting businesses in rural areas, towns or villages with a population of 20,000 and below and an investment of Rs. 1 crore in plant and machinery. Ela Bhat- SEWA, Mansukhbhai jagani - Motorcylce tractor Mansukhbhai Prajapati- Mitticool Social Entrepreneurs Social entrepreneur is someone who has created a hybrid organization that employs business methods, yet its bottom line is social value creation. eg - Dr. Vaerghese Kurian , Dr. G. Venkataswamy

8. Enterprise

9. Type of Ownership Sole Proprietor A business owned exclusively by one person. Eg - JC Jewellers Partnership A business owned by 2 or more people is a partnership E.g. Neptune Trading company corporation A business with legal rights and may be owned by many people Eg - Reliance Industries Pvt Ltd.

10. Sole Proprietorship Advantages One person control Accurate tax records Very easy rules Most common Disadvantages Difficulty inraising money Owner risks The private assets too get taken in case of debts

11. Partnership Advantage Share decision making and responsibility Capital too is shared Losses shared Little government regulations Disadvantage Cannot get along with partners Trust is very important Bitter end to partners

12. Corporation Advnatages Corporation is alike a legal person Corporation enters into contact, pays taxes.. Board of Directors rule the corporation Ownership is inthe form of shares of stock. Disadvantages More complicated Assistance of lawyer More govt. Regulations Income taxed twice as corporate income and individual's income

13. Start-ups Types of Startups Lifestyle firm A small venture that supports the owner and usually does not grow. It is usually build on passion eg - Running a pet grooming service, Running an exclusive café Foundation Company Is created from research and development and lays the foundation for new research area. It grows for 5-10yrs and lays the foundation for other businesses.. eg menu mania, last mile, maple graph.. Acquired by Zomato.. High Potential venture/Gazelles A venture that has high growth potential. Highly scalable Eg Paytm, Flipkart, Ola, Oyo..