Types of Entrepreneurs and factors affecting entrepreneurial growth.pptx

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1. Types of Entrepreneurs and factors affecting entrepreneurial growth Muhammed Jazim T K 55 Navaneeth S Hari 56 Naveen U S 57 Navneeth Ranjith 58 Nazir Ahmed 59 Nihad 60

2. What is entrepreneurship ? Entrepreneurship refers to the process of creating a new enterprise and bearing any of its risks, with the view of making a profit. It generates industrial growth, regional growth, and employment generation. Thus, entrepreneurship is a key to socio-economic transformation of a region

3. Who is an entrepreneur ? An entrepreneur is a starter. An entrepreneur is an initiator, a challenger and a driver. Someone that creates something new, either an initiative, a business or a company. He or she is the beginning (and sometimes the end) of a venture, project or activity. The entrepreneur might not be the ideator , but he or she is definitely the one that decides to make that idea a reality.

4. Historical Background Marco Polo is considered as one of the first entrepreneurs in human history. During the 17th century, an entrepreneur was the individual who entered into a contract with the Government for the supply of agreed services or goods under fixed terms and prices. John Law of France was one of the famous entrepreneurs of his time who founded The Royal Bank of France Since the 18th century, with rapid industrialization, an entrepreneur refers to someone who seeks capital to fund his/her innovative pursuits. Some famous modern entrepreneurs include JP Morgan, Bill Gates, Jeff Bezos, Mark Zuckerberg, Shiv Nadar, Azim Premji etc.

5. Types of entrepreneurs According to Organizations According to type of business According to the entrepreneur and motivation According to the growth of entrepreneurs According to entrepreneurial activity According to functional characteristics According to Stages of development According to capital ownership According to Scale of enterprise According to entrepreneurial business

6. According to organization 1.Private entrepreneurship Companies are owned and controlled by a private group of individuals or even a single entity run independently of the government. Private entrepreneurship is the lightest and simplest company form. It is also easy, fast and inexpensive to set up. An example of private enterprise is Raymond Ltd, Trident Ltd, etc. 2.Public entrepreneurship Here the companies will be owned entirely or partially by the government of a country. It is a process of introducing innovation, generation and implementation of new ideas, in the public sector. Examples are Hindustan Machine Tools Ltd, Bharat Petroleum Corporation Limited

7. 3.Commercial entrepreneurs They focus mainly on profits and standardizations and not on the resources or society issues. Their main priority is the creation of economic value. Examples: Any organization that works for profit like Tiktok , Facebook, Snapchat and not for society issues 4.Social entrepreneurship They are people in business who target the development of products and services, so that social requirements and problems can be solved. Their main motive of entrepreneurs in this case is improving the world. A good example of social entrepreneurship is microfinance institutions like ESAF Microfinance and Investments (P) Ltd

8. According to type of business 1.Corporate entrepreneurs A corporate entrepreneur is a person who demonstrates his innovative skill in organizing and managing corporate undertakings. That is in simple words a corporate entrepreneur is an individual who plans, develops and manages a corporate body. Examples are Tata Consultancy Services, Reliance Industries Limited etc. 2.Trading entrepreneurs All the activities related to the trading of an organization are done through such types of entrepreneurs. It serves as middlemen for dealers, wholesalers, manufacturers and the customers. A good example is SITCO India

9. 3.Industrial entrepreneurs They are essentially manufacturers, who identify the potential needs of customers and make a product or service to meet the marketing needs. Examples are Hindustan Unilever, Cipla etc. 4.Agricultural entrepreneurs Agricultural entrepreneurs are those entrepreneurs who undertake agricultural activities as raising and marketing of crops, fertilizers and other inputs of agriculture. They are motivated to raise agriculture through mechanization, irrigation and application of technologies. One such example of agricultural enterprise is UPL Ltd. 5.Business entrepreneurs Business entrepreneurs are individuals who conceive an idea for a new product or service and-then creates a business to materialize their idea into reality. They may set up a big establishment or even a small business unit. A good example is Tally solutions.

10. According to the entrepreneur and motivation 1.Pure Entrepreneur Individual who is motivated by psychological and economical reward. He undertakes entrepreneurial activity for his personal satisfaction in work, ego or status. Dhirubai Ambani, Jamshedji Tata, T.V. Sundaram Iyengar, Birla, Narayana Murthy, and Azim Premji are few examples of pure entrepreneurship. 2.Induced Entrepreneur This entrepreneur is one who is induced to take up an entrepreneurial task due to the policy measures of the government that provides-assistance, incentives, concessions and necessary overhead facilities to start a venture. Most of the entrepreneurs belong to this category and enter business due to financial, technical and several other facilities provided to them by the state agencies to promote entrepreneurship

11. 3.Motivated Entrepreneur He comes into being because of the possibility of making and marketing some new products for the use of consumers. If the product is developed to a saleable stage, the entrepreneur is further rewarded in terms of profit. One such example is P C Mustafa – an entrepreneur who failed in class 6 built a ₹100 crore company “ iD Fresh Food”. 4.Spontaneous Entrepreneur They start their business out of their natural talents. They are persons with initiative, boldness and confidence in their ability which motivate them to undertake entrepreneurial activity. They have strong conviction and confidence in their ability. A good example would be Sabyasachi Mukherjee who is an Indian fashion designer, jewelry designer, retailer and couturier from Kolkata, India

12. According to the growth of entrepreneurs 1.Growth Entrepreneur Someone who is interested in growing a company quickly. Sometimes growth entrepreneurs are referred to as gazelles as they are distinguished by their ability to double the size of their company either by number of employees or in gross profit every two to four years. Ritesh Agarwal is the founder of OYO rooms. He felt that the majority of the hotels in India couldn’t satisfy the basic needs of a traveler on budget. Thus, he started Oravel Stays, his first venture in 2012.He was one of the winners of the 2013 Thiel Fellowship program, receiving a grant of $100,000. 2.Super-Growth Entrepreneur Super growth entrepreneurs are those who have shown enormous growth of performance in their venture. The growth performance is identified by the liquidity of funds, profitability and gearing. Example: Ola

13. 3.Aspiring entrepreneurs The person who focuses on the hope and dream of entrepreneurship and to be their own bosses, but they have not yet made the leap from their current employment into the uncertainty of a start-up. 4.Lifestyle entrepreneurs A lifestyle entrepreneur is a person who creates a business with the purpose of altering their personal lifestyle. A 13 lifestyle entrepreneur focuses more on the life rewards rather than the monetary rewards. It provided to those that have a true passion for their work and enjoy what they're doing. Example: Kylie Kristen Jenner (born August 10, 1997) is an American media personality, socialite, model, and businesswoman.

14. According to entrepreneurial activity 1.Novice A novice is someone who has started his/her first entrepreneurial venture. An example of a novice entrepreneur is Sreelakshmi Suresh. She is the Founder of eDesign, TinyLogo . Sreelakshmi is often regarded as the Youngest CEO and Youngest Web Designer in the world. She also has received many awards as recognition for her talent. Her companies provide services in web design, SEO, and other fields to many popular brands. 2.Serial Entrepreneur A serial entrepreneur is someone who is devoted to one venture at a time but ultimately starts many. He repeatedly starts businesses and grows them to a sustainable size and then sells them off Richard Branson is the founder of Virgin Group, which today controls more than 400 companies in various fields. He is a serial entrepreneur, investor, and author.

15. According to functional characteristics 1.Innovative Entrepreneur person who brings new technology, process or knowledge into life. He dedicates his efforts into making "new things" which he thinks may be of a great use to society. An Innovative Entrepreneur is a person who creates things of value and thus is responsible for creating wealth for himself and others. Example: Michael Saul Dell (born February 23, 1965) is an American billionaire businessman and philanthropist. He is the founder, chairman and CEO of Dell Technologies 2.Fabian Entrepreneur Entrepreneurs have neither the will to introduce new changes nor desire to adopt new methods innovated by the most enterprising entrepreneurs. Such entrepreneurs are shy and lazy. And the individuals who do not show initiative in visualizing and implementing new ideas and innovations. Example: Kodak, a company that happened to be the market leaders in producing analog cameras but they did not realize the change and the introduction of the Digicam

16. According to stages of development 1.First-generation Entrepreneurs They are from non-entrepreneurial backgrounds who establish their enterprise by embracing innovative ideas. The entrepreneur is the first in the family to establish an enterprise on his/her own. Those with a business background but establishing a completely unrelated business also come under this category. Example: Dhirubhai Ambani, Ghanshyam Das Birla, Ardeshir Godrej. 2.Second Generation Entrepreneur They are the ones who inherit family business. However, in order to stay competitive, they adapt and improvise to the changing market needs. Example: Mukesh Ambani. He inherited part of his family business.

17. 3.Classical Entrepreneurs They give importance to business survival rather than growth. They are called stereotype entrepreneurs as they seek consistent returns with or without growth. Some classic entrepreneurs are micropreneurs who start small and plan to stay small. Miho Inagi is a good example of a micropreneur . Her passion for bagels led the young office assistant to quit her job and pursue her dream of one day opening her own bagel shop in Tokyo. Today Maruichi Bagel is one of the successful bakeries in Tokyo. 4.Inherited Entrepreneurs They also inherit family business alongside experience to run the family business. Unlike second generation entrepreneurs, they do not prefer much diversification or new approach to their family business. Example: Anil Ambani.

18. According to capital ownership 1.Private entrepreneur It is an entrepreneurial venture established by an individual or a group of individuals with the intent of making profits. The responsibilities of arranging finance and bearing the risks reside with the members. Example: Disney. The Walt Disney Company, commonly known as Disney, was originally founded on October 16, 1923, by brothers Walt and Roy Oliver Disney. Today it is one of the biggest corporations in the world. 2. State Entrepreneur Entrepreneurial venture handled by the state or government itself. Example: BSNL.

19. According to scale of enterprise 1.Small Scale Entrepreneurs They are in the entry level with limited funding and offer one or two products or services. This classification is especially popular in underdeveloped countries. They don’t have necessary talents, resources and funds to initiate large scale production and introduce revolutionary technological changes. Total turnover will be less than Rupees 1 crore. Example: Paper Plant. 2.Medium Scale Entrepreneurs They are around for some time with a market presence. They have somewhat defined offerings. Example: Medium Scale Restaurant

20. 3.Large Scale Entrepreneurs They have steady flow of funds and have diversified product lines and service offerings. They are well established and look for a high market share. In developed countries most entrepreneurs deal with large scale enterprises. They possess the financial and necessary enterprise to initiate and introduce new technical changes. The total turnover of this type of enterprise is more than Rupees 1 crore. The result is, the developed countries are able to sustain and develop a high level of technical progress. Example: Johnson and Johnson.

21. According to Entrepreneurial Business 1.Manufacturing An entrepreneur who runs such a business actually produces products that can be sold using resources and supplies. For example, apparel and other textile products, chemical and related products, electronics and other electrical equipment, fabricated metal products, industrial and other electrical equipment, fabricated metal products, industrial machinery and equipment, printing and publishing, rubber and miscellaneous products, stone, clay etc. Example: Mysore Deep Perfumery. 2.Wholesaling An entrepreneur with such a business sells products to a middle man. Example: Sayed Home Industries Private Limited. Example: Luxmi Group. During 1917 tea estates in India were predominantly British-owned. Seeing such a miserable condition of the country, where one had to plead for their own rights, P C Chatterjee, who was part of the satyagraha movement decided to expand and diversify Luxmi Tea as a part of the all-India movement for self reliance

22. 3.Retailer An entrepreneur who sells products directly to the people who use or consume it. Example: Ralph Lauren. Founded in 1967, the American clothing retailer Ralph Lauren Corporation now ranks 7th on BizVibe’s list of the biggest clothing brands in the world. 4.Service An entrepreneur in this business sells service rather than products. Example: Agarwal Packers and Movers is one of the largest Logistics companies in India, evolved from a small-scale business of Agarwal Household Carrier established in 1987 and functioned particularly for the shifting of household goods.

23. Factors affecting entrepreneurship Economic Factors Psychological Factors Social Factors

24. Economic factors 1.Capital •Capital is one of the most important prerequisites to establish an enterprise. •Availability of capital facilities for the entrepreneurs to bring together land of the machine of another to combine them to produce goods. •Capital is therefore regarded as lubricant to the process of production. 2.Labour •The quantity rather than quantity of labour is another factor which influences the emergence of entrepreneurship. •The availability of cheap labour positivity affect entrepreneurship •But entrepreneurship is increased if there is a mobile and flexible labor force.

25. 3. Raw Material •Entrepreneurship is encouraged only if there is an adequate supply of material and knowledge. •Quality of products depends on the quality of Raw material used •Easy availability of materials attracts more individuals towards entrepreneurship. •To a modern enterprise requires technical know how far innovation 4.Market •The fact remains that the potential of the market constitutes the major determinant of probable rewards from entrepreneurial function. •The size and composition of the market both influence entrepreneurship in their own ways. 5.Infrastructure •Entrepreneurship development requires certain basic infrastructure like power, transportation, communication and technical information. •Land and factory sheds at affordable rates, adequate supply of power, water, coal and other sources of energy, transport facilities and other facilities should be provided.

26. Psychological factors 1.Need of Achievement •Need for achievement is the desire to obtain excellent results by setting high standards and striving to accomplish them. It is a consistent concern with doing things better. •If the average level of needed achievement in a society is relatively high, one would expect a relatively high amount of entrepreneur development in the society. •There is also some mechanical motivation trading program. 2.Withdrawal of Status Respect •When members of a given social group perceive that they are not respected by the dominant group of society, this triggers a personality change that encourages entrepreneurial behaviour . •Everett Hagen attributed the withdrawal of status respect of a group to the genesis of entrepreneurship .

27. 3.Motives •Other psychological theories of entrepreneurship stress the motives or goals of the entrepreneurs. Besides wealth, entrepreneurs seek power, prestige, security and service to society. •Non-monetary aspects such as independence, self-esteem, power etc. also triggers entrepreneurship. 4.Willingness to take risks •Researchers have come to the conclusion that entrepreneurs who take moderate risk earn higher returns on their assets than those who take no risks.

28. Social factors 1.Social Status Every human being aspires for a high social status and once he achieves a reasonable level, his aspirations and desires for its start multiplied, people work hard to maintain their status as it also contributes to their entrepreneurial growth. 2. Education •Education is the best means of developing from knowledge learning to skill improvement, entrepreneurship education, general ability development and improvement of professional ability. •Education provides entrepreneurs with cognitive skills to better evaluate and exploit entrepreneurial opportunities, increases the level of self-confidence and reduces perceived risk. •Education provides the individual to identify problems and find solutions that create value. It may be expected that a high level of education may enable the entrepreneurs to exercise their entrepreneurial talent more effectively and efficiently.

29. 3.Attitude of Society • Certain societies encourage innovations and novelties and thus approve entrepreneurs’ actions and rewards like profits 4. Occupation • Those born in a business or entrepreneur-oriented family have the advantage of learning the business by interaction and contacts with parents, employees, and visitors in family shops, offices and homes. 5.Social Responsibility •The entrepreneur is an important part of the social system. The interdependence of society and business is increasing, with rising standards of living in society. It can improve the financial stability of the entire society. 6.Religion and Caste Factor Certain caste systems encourage entrepreneurship. Religious communities like Parsees, Marwaris, Siddhas etc. seem to have an affinity for entrepreneurial activities.

30. conclusion From the above discussion, it can be seen that there is much more to entrepreneurship than merely starting a business. Entrepreneurship can come in many forms, with each having its own rhyme and reason. Entrepreneur is developed by several factors, both internal and external, and the final outcome varies across several of these factors. However, we must understand that entrepreneurs are driven individuals who can and will continue to shape the growth of society and economy.