MODELS OF ENTERPRENUERSHIP

Mrs. SHABANA SULTANA M.B.A., (M.Phil).

Academician,
DVR & Dr.HS MIC College of Technology, Kanchikacherla.
Mobile: 9966401418
e-mail: [email protected]

Mr. SHAIK ABDUL AZEEM M.B.A., (M.Phil).

Academician,
DVR & Dr.HS MIC College of Technology, Kanchikacherla.
Mobile Numbers: 9390051018
e-mail: [email protected]

ABSTRACT

This paper is the study which explains about a conceptual model of entrepreneurial behavior at

the different levels. Entrepreneur is considered to be a dimension of strategic posture, and thus

all manner of organizational may behave entrepreneurially. This strategic posture encompasses a

firm's risk-taking propensity, its ability to be competitively aggressive, proactive manners, and

product innovation.

Entrepreneurship around the world has been fueled by the deterioration of traditional

corporate structures, collapse of communism and economic globalization. These trends have also

increased the number of studies focusing on entrepreneur process models. These include models

like social entrepreneurship, digital entrepreneurship, knowledge entrepreneurship, creative

entrepreneurship, software

We are now in an information economy. Knowledge is the main element in the creation

of the todays enormous gain in value. Most of the time knowledge thought to be the centered in

a firm but it is certain that there appear to be certain regions in which some considerable portion
of this knowledge is nomadic and moving from position to position throughout the region. As a

result, the knowledge is embodied in the individuals with specialized skills and capabilities.

In a dynamic environment, entrepreneurs role is not only creating new ventures but also

negotiating them through the changing environment Literature in entrepreneurial strategy has

studied the influence of current environment, but ignored the impact of past environments in the

present context. Organizational imprinting literature, on the other hand, explores the lasting

impact of environmental conditions during foundation on organizations. Nature of elements

institutionalized inside organizations (organizational imprints), having systematic relationship

with the characteristics of founding context will strongly impact their adaptation and evolution in

a dynamic environment. However, studies exploring the influence of founding contexts on

adaptation in a changed environment lack longitudinal designs essential for understanding the

dynamics of evolution. We investigate how founding conditions influence the evolution of

entrepreneur model and performance of new ventures.

Entrepreneurship can be defined as a process that involves envisioning an opportunity,

fitting that opportunity to an organization and the market, and focusing the resources necessary

to capture the market. Entrepreneurship can exist in many kinds of organizations, including large

ones. At its heart, entrepreneurship involves matching a need with an innovation.

MODELS OF ENTERPRENUERSHIP

Definition of Entrepreneur

An entrepreneur is a person who has possession of a new enterprise, venture or idea and
assumes significant accountability for the inherent risks and the outcome. The term is originally
a loanword from French and was first defined by the Irish economist Richard Cantillon.
Entrepreneur in English is a term applied to the type of personality who is willing to take upon
himself a new venture or enterprise and accepts full responsibility for the outcome. Jean-Baptiste
Say, a French economist is believed to have coined the word "entrepreneur" first in about 1800.
He said an entrepreneur is "one who undertakes an enterprise, especially a contractor, acting as
intermediatory between capital and labour."

Definition of Entrepreneurship?

It is the Capacity and willingness to undertake conception, organization,

and management of a productive venture with all attendant risks, while seeking profit as
a reward. In economics, entrepreneurship is regarded as a factor of production together
with land, labor, natural resources, and capital. Entrepreneurial spirit is characterized
by innovation and risk-taking, and an essential component of a nation's ability to succeed in an
ever changing and more competitive global marketplace.

Why Entrepreneurship?

It is abundantly clear that entrepreneurship is important for economic growth,

Productivity, innovation and employment, and many countries have made entrepreneurship an
explicit policy priority. As globalization reshapes the international economic landscape and
technological change creates greater uncertainty in the world economy, entrepreneurship is
believed to offer ways to help to meet new economic, social and environmental challenges.
Models of Entrepreneurship:

1) Social Entrepreneurship :

It is the work of a social entrepreneur. A social entrepreneur is someone who recognizes

a social problem and uses entrepreneurial principles to organize, create, and manage a venture to
make social change (a social venture). Whereas a business entrepreneur typically measures
performance in profit and return, a social entrepreneur focuses on creating social capital. Thus,
the main aim of social entrepreneurship is to further social and environmental goals. However,
whilst social entrepreneurs are most commonly associated with the voluntary and not-for-profit
[1]
sectors , this need not necessarily be incompatible with making a profit. See also corporate
social entrepreneurship.

The terms social entrepreneur and social entrepreneurship were used first in the literature
on social change in the 1960 and 1970s. the terms came into widespread use in the 1980s and
1990s, promoted by bill Drayton the founder of Ashoka: innovators for the public, and others
such as Charles lead beater. from the 1950s to the 1990s Michael young was a leading promoter
of social enterprise and in the 1980s was described by professor Daniel bell at Harvard as 'the
world's most successful entrepreneur of social enterprises' because of his role in creating more
than sixty new organizations worldwide, including a series of schools for social entrepreneurs in
the uk.

In India, a social entrepreneur can be a person, who is the founder, co-founder or a chief
functionary (may be president, secretary, treasurer, chief executive officer (CEO), or chairman)
of a social enterprise, which primarily is a ngo, which raises funds through some services (often
fund raising events and community activities) and occasionally products. Rippan kapur of child
rights and you and jyotindra nath of youth united, are such examples of social entrepreneurs,
who are the founders of the respective organizations. Jay vikas sutaria of bhookh.com is a social
entrepreneur who is leveraging the power of the internet to fight hunger in India.

Another excellent example of a non-profit social enterprise in India is rang de. Founded
by Ramakrishna and Smita Ram in January 2008, rang de is a peer-to-peer online platform that
makes low-cost micro-credit accessible to both the rural and urban poor in India. Individuals get
to directly invest in borrowers from across India, track their investments online and receive
regular repayments, with a token 2% pa. ROI.

Today, nonprofits and non-governmental organizations, foundations, governments, and

individuals also play the role to promote, fund, and advise social entrepreneurs around the planet.
A growing number of colleges and universities are establishing programs focused on educating
and training social entrepreneurs.

One well-known contemporary social entrepreneur is Muhammad Yunus, founder and

manager of Grameen bank and its growing family of social venture businesses, who was
awarded a Nobel peace prize in 2006.

Youth social entrepreneurship

It is an increasingly common approach to engaging youth voice in solving social

problems. Youth organizations and programs promote these efforts through a variety of
incentives to people. A youth social entrepreneurship organization is rooted in turkey, the
organization named sogla (the academy of young social entrepreneurs). Sogla provides young
entrepreneur candidates (named sogla pioneers) with high quality of education, supports pioneers
to develop, start-up and sustain their social entrepreneurship projects.

2) Digital entrepreneurship :

It represents a category of entrepreneurship that leverages new technologies in novel ways

such as the internet communications technology. A digital entrepreneur is an individual who uses
the internet as a tool to create commercial opportunities, disseminate information, and
collaborate with clients and partners.

Digital business models:

1) Brokerage - a company that creates markets by bringing buyers and sellers together
and facilitating transactions for a fee between them. Those can be business-to-business
(B2B), business-to-consumer (B2C), or consumer-to-consumer (C2C) markets.
2) Advertising - A company sells space on their site to 3rd party advertisers who pay on
a fixed rate, CPC (cost per click), CPI (cost per impression), or CPA (cost per action).
Examples of advertising models include portals, classifieds, user registration, and
behavioral marketing (where the banner ads are geared towards the demographic of a
site). Popular advertising systems include Google ad sense and ad words, yahoos overture
(also known as yahoo! Search marketing), and Microsoft ad center. Advertising works
best especially on high traffic sites.

3) Infomediary - A company that collects analyzes and sells information on consumers

and their buying behavior to other parties who want to reach those consumers. Examples
of these are: recommender system (epinions), registration system (New York Times).

4) Licensing- By holding a patent for a certain type of device, whether it be a music

player or coding this allows for selling of such knowledge and can create some
significant profit with little to no effort on the creators part. The issue with having or
creating new digital tools is the ability to copy or recreate the same tools without gaining
the appropriate rights from the original creator. Protection and privacy rights will
contribute to this type of money making technique in a vital way.

5) Merchant - A company that sells goods and services through an online store. These
"e-tailers" can be traditional 'brick-and-mortar' storefronts with an online presence or
completely virtual and do not have a physical storefront. Goods and services sold can be
either through listed price or by auction.

Digital opportunities:

a) Digital development and virtual teams

The digital world has opened up the possibility to have virtual teams where no
physical meetings are required. There exists the possibility to have people all around the
world contribute to a specific project. Due to the low starting cost and the easily
accessible network of people, starting a digital entrepreneurship is quite easy.
 b) Digital distribution

In digital distribution there is a onetime development cost to generate the initial

product (high fixed cost) which can then be quickly duplicated with little or no cost (low
marginal cost). Digital distribution also allows a company to sell its products directly to
customers and reach a larger market through the global reach of the internet. Versioning
is another common concept in digital distribution where small changes are made to an
initial product in order to market the product to additional segments.

3) Knowledge entrepreneurship :

It describes the ability to recognize or create an opportunity and take action aimed
at realizing the innovative knowledge practice or product. Knowledge entrepreneurship is
different from traditional economic entrepreneurship in that it does not aim at the
realization of monetary profit, but focuses on opportunities with the goal to improve the
production (research) and throughput of knowledge rather than to maximize monetary
profit. It has been argued that knowledge entrepreneurship is the most suitable form of
entrepreneurship for not-for-profit educators, researchers and educational institutions.
Models of Knowledge Entrepreneurship

Org learning

Knowledge
Organizational setting innovation
entrepreneurs
hip

leadership Culture

New project Vision & strategy

support

Risk tolerance Environmental

awarness

communication

Knowledge entrepreneurship is set to improve innovativeness and thereby indirectly

improve performance. But the most important outcome of organizational entrepreneurship is
long term: an organization that is better able to adapt and survive.Knowledge Entrepreneurship
is a process of exploiting opportunities that exist in the environment or that are created through
innovation in an attempt to create value.

4) Software Entrepreneurship:

It has a different set of developing strategies than other business start-ups. The
development of software, a digital soft good, involves different business models,
product strategy, people management, and development plan compared to the traditional
manufacturing and service industries. For example in the software business, making one
 or ten million copies of a product cost about the same. Furthermore, the productivity
difference between a good and bad employee is ten to twentyfold. As well, software
projects tolerate 80 percent lateness and ongoing design changes on a regular basis.[1]

Software entrepreneurship involves infinitely broad range of businesses; from

helping people plan daily events to controlling a space shuttle. There are mainly three
kinds of software businesses: products, services and content business such as Wikipedia.

The first thing software entrepreneurs should understand is the difference and the
interrelationship between products and services business. The software product business
is about selling licensed packages to customers. These products help solve a user pain
and have potential for growth and profits. One advantage of starting up in this direction is
the ability to attract stock market investors and venture capitalists for funding. This
business also enjoys enormous economies of scale in selling multiple copies of the same
software. The downside of creating products is that software sales are subject to
fluctuations. Sales will drop drastically in economic recessions.

5) Creative Entrepreneurship :

It is the practice of setting up a business or setting yourself up as self-employed

- in one of the creative industries. The focus of the creative entrepreneur differs from that
of the typical business entrepreneur or, indeed, the social entrepreneur in that s/he is
concerned first and foremost with the creation and exploitation of creative or intellectual
capital. Essentially, creative entrepreneurs are investors in talent their own and/or other
peoples.

The most renowned creative entrepreneurs have combined creative flair with
entrepreneurial ability to build multi-million dollar business empires. Examples include
Rupert Murdoch, Madonna and Richard Branson.

In recent years, due to significant economic growth in the sector (prior to the
2008/9 downturn), there has been a surge of interest in the creative industries, and the
issue of creative entrepreneurship has been pushed to the fore. In parallel with (and no
 doubt partially motivated by) general enthusiasm from policy makers and support
agencies, creative entrepreneurship has grown as an academic discipline, creative
entrepreneurship courses are becoming widely available, and seem increasingly popular
with students.

Entrepreneurs in the creative economy operate like says original model

entrepreneur but with an important difference they use creativity to unlock the wealth that
lies within themselves. Like true capitalists, they believe that this creative wealth, if
managed right, will engender more wealth.

Contribution to the economy

In 2007, the U.K's creative sector was growing twice as fast as the rest of the
[10]
economy and generally considered to be equally important to the financial sector,
which, at the time, was the driving force of the U.K's gross domestic product.

Now, as then, the majority of people working in the creative industries tend to be
self-employed either freelance or running their own business. These people have the
potential to be a key driver of the creative economy, but few see themselves as creative
entrepreneurs.

Conclusion:

In a dynamic environment, entrepreneurs role is not only creating new ventures but also
negotiating them through the changing environment. In the contemporary organization, all
managers must be entrepreneurial leaders. Entrepreneurship will help limit the extent to which
individual champions begin that inexorable transition from corporate entrepreneur to corporate
bureaucrat.
Entrepreneurship is not meant for everyone. There are certain attributes of entrepreneurs
that can never be taught. The entrepreneur acquires it along the way. These traits are confidence,
courage, tenacity, risk taking, hard work, honesty and determination. No one can teach you these
traits. You learn them along the way. And only those who get them succeed.
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