ENTREPRENEURAL COMPETENCE (Unit – 1)

ENTREPRENEURSHIP CONCEPT

ENTREPRENEUR ENTREPRENEURSHIP ENTERPRISE

person process of action object

ENTREPRENEUR

An entrepreneur is a person responsible for setting up a business or an enterprise.

He has the initiative , skill for innovation and who looks for high achievements.

He puts up new green field projects that create wealth, open up many employment opportunities and leads to growth of other sectors

DEFINITION

The term “entrepreneur” is derived from the French word entreprendre which means “ to undertake” i.e. the person who undertakes the risk of new enterprise.

The term “entrepreneur” was applied to business initially by the Irish economist, Richard Cantillon, to designate a dealer who purchase the means of production for combining them into marketable products.

According to him, “ An entrepreneur is a person who buys factor services at certain prices with a view to selling its product at uncertain price.

THE MYTHS OF ENTREPRENEUR

Myth 1: Entrepreneurs Are Doers, Not Thinkers Myth 2: Entrepreneurs Are Born, Not Made Myth 3: Entrepreneurs Are Always Inventors Myth 4: Entrepreneurs Are Academic and Social Misfits Myth 5: Entrepreneurs Must Fit the “Profile” Myth 6: All Entrepreneurs Need Is Money Myth 7: All Entrepreneurs Need Is Luck Myth 8: Ignorance Is Bliss For Entrepreneurs Myth 9: Entrepreneurs Seek Success But Experience High Failure Rates Myth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers

CONCEPT OF ENTREPRENEURSHIP

According to Peter Drucker, “Entrepreneurship is defined as ‘a

systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation”

CONCEPT OF ENTREPRENEURSHIP

“ Entrepreneursh ip i s a dynamic process o f  v i s ion , change, and creat ion .   I t requ i res an app l i cat ion o f energy and pass ion towards the creat ion and implementat ion o f new ideas and creat ive  so lut ions .  Essent ia l ingred ients inc lude the  wi l l ingness to take ca lcu la ted r i sks - in terms o f t ime, equ i ty , or career ; the ab i l i ty to formulate an eff ect ive venture team; the creat ive sk i l l to Marsha l l needed resources ; the fundamenta l sk i l l s o f  bu i ld ing a so l id bus iness p lan; and , fi na l ly , the v i s ion to recognize oppor tun i ty where others see chaos , contrad ic t ion , and confus ion.”

IMPORTANCE OF ENTREPRENEURSHIP

Develop new markets Discover new sources Mobilize capital resources Introduce new technologies Create employment

ENTRPRENEURIAL PERSONALITY

• Self confidence, initiative & independent• Flexibility & team work• Commitment • business knowledge• Creative solutions to difficult problems• Ability to grab an opportunity • Overcome an personal problems &

environmental factors.

CHARACTERISTICS OF SUCCESSFUL ENTREPRENEUR

• Risk taker • positive self –

control• Analytical Ability• Ability to mobilize

resources• Search for new Ideas

and innovation• Highly Motivated

and Energetic

• Locus of control• Flexibility • Business

communication skills • Self – confidence• Openness to change • Accepting of

constructive criticism and rejection

Vision and leadership

ENTREPRENEURSHIP AS A CAREER

Choosing Entrepreneurial career is like choosing a life partner

KNOWLEDGE & SKILLS OF ENTREPRENEUR

• Time management • administration skills• Environmental

awareness• Financial knowledge• Know the market• Interpersonal skills• Problem solving

skills

• Sales• Vision & leadership

skills• Political – legal concern• Cultural aspect• Conflict & consensus

management skills• Communication skills • technical skills