UNIT 2

Innovation:

•goods orInnovation is the practical implementation of ideas that result in the introduction of new
services or improvement in offering goods or services.

•products,
Innovation often takes place through the development of more-effective
processes, services, technologies, art works or business models that
innovators make available to markets, governments and society.

•to involve
Innovation is related to, but not the same as, invention. Innovation is more suitable
the practical implementation of an invention (i.e. new / improved ability) to make
a meaningful impact in a market or society, and not all innovations require a new invention.
Definitions

• Innovation is the multi-stage process whereby organizations transform ideas

into new/improved products, service or processes, in order to advance, compete and
differentiate themselves successfully in their marketplace. – Barageh et al

• Innovation is production or adoption, assimilation, and exploitation of a value-

added novelty in economic and social spheres; renewal and enlargement of products,
services, and markets; development of new methods of production; and the establishment
of new management systems. It is both a process and an outcome. – Crossan and Apaydin

•unit of An idea, practice, or object that is perceived as new by an individual or other

adoption – Everett Rogers
Difference between innovation and creativity

•puttingCreativity is the act of conceiving something new, while. Innovation is the act of
something into practice. Creativity is thinking up the idea of flying into space. While
innovation is building the rocket.

•inspiresOne follows the other, and the two usually nest within each other as well; creativity
us to improve the rocket we’re building or use it in new ways.

• We often even use the terms interchangeably.

•goals and
Creativity lets you think of new goals to reach, while innovation lets you reach those
find new ones.
 Innovation types & Platforms
• Essentially, there are three types of innovation: radical, incremental, and disruptive. They
may vary depending on the niche, market, brand essence, services, and products offered.
 Radical innovation

•brand, whether
As the name suggests, a radical innovation really changes the circumstances of a
in terms of market or of business dynamics.

•processes,
It can occur due to a complete change in a company's positioning, work method,
services, and products offered, or how it relates to customers.

•released,An smartphones
example of radical innovation would be Apple's iPhone. When it was
already existed, but Apple included features that changed
the market and made it more popular.
Incremental innovation

•product,Another type of innovation is incremental innovation. It adds new features to a

brand, or production methods without promoting a very drastic change.

•brand It'sthatusually an evolution of an innovation already implemented by the

complements and offers improvements, be it to employees,
customers, or features of a business.

•purposeAnofexample of incremental innovation is Gmail, which was created with the

sending emails quickly – but over time, different features were added to
improve the customer experience and make it more useful and competitive.
Disruptive innovation

•innovation
Technological and behavioral changes have favored the emergence of disruptive
in recent decades.

•product,Thisor type of innovation follows the market more than a specific brand,
service. It can be leveraged by something a company has offered
and, as a result, made their name, but, in general, it's a scalable change that
reaches many people at the same time.

• Examples of disruptive innovation include Netflix, as the market used to rely on

companies like Blockbuster for movies and TV series. Netflix started offering DVD-bymail
rental services but decided to innovate. It started offering video streaming services
through a monthly subscription and, in doing so, drove Blockbuster out of the market. In
addition to being innovative, this also gave Netflix a predictable monthly revenue.
Examples of innovation

• Product innovation

• Service innovation

• Innovation in production processes

• Innovation in business model

• Technological innovation

• Logistical innovation

• Marketing innovation

• Organizational innovation

Innovation Platforms
Q - What is an innovation platform?
An innovation platform is a tool for building and growing ideas. However,
an innovation platform also refers to a technical solution where you can
build things fast and prototype tools.
Furthermore, for a business, an innovator’s growth platform means using
products, services, and technology in a new way to reach your goals—
preferably more efficient than before.
Types of Innovation Platforms

• Technical Open Innovation Platforms

– One of the biggest changes in the way in which companies approach innovation
has been the growth of a technology-based open innovation platform. Let’s
go through an example to understand what is an open innovation platform?
– Moreover, one of the biggest open innovation examples is Linux, an
operating software that competes with Microsoft and Apple, which are
developed in the closed innovation policy platform

– Therefore, the biggest benefit of open-source software is that the software is

continuously tested by programmers with 100 percent transparency

• Idea Management Platform

– This is an idea-sharing platform where people can come together and share their
thoughts on the idea management process.

– So, the goal of an innovation management platform is to help companies come

together, gather ideas from their employees, and evaluate each idea individually.

– Then, developing good ideas for the market more quickly will allow them to
increase productivity
Examples of Platform Innovation
• Ennomotive – The Hub For Engineering Innovation

– Ennomotive is an open innovation platform that specializes in experts and

connecting companies of various projects and win-win partnerships.

– So, this platform is perfect for organizations that are looking to solve technical
challenges and need fresh ideas from creative and talented individuals.

• Crowdspring – Design Has Done Better

– Crowdspring is a platform that facilitates various design projects, such as
website logos or a book cover, for organizations and private individuals.

– Hence, this platform is perfect for organizations that need a reimagined or

new design and want a very broad spectrum of ideas that can be molded and
discussed in an effortless iterative manner
• Viima – The Best Way To Develop And Collect Ideas
– Viima is an idea management platform that can be used for developing and
gathering ideas into innovations within an open or chosen group of stakeholders.
– Therefore, this platform is perfect for organizations that are looking for
an effortless way of gathering ideas or thoughts. This is for smaller to
larger groups. Furthermore,
then to develop them into something that can be implemented.

• Kaggle – The Place For Data Science Projects

– Kaggle is a platform that hosts a community of data scientists and
machine learning engineers who together process raw data gathered and
submitted by organizations.

– Furthermore, large organizations use this platform without existing data

science environments and access to raw data.
Business Model Innovation

• Business model innovation is the art of enhancing advantage and value

creation by making simultaneous—and mutually supportive—changes both to an
organization’s value proposition to customers and to its underlying operating model.

•competitive
At the operating model level, the focus is on how to drive profitability,
advantage, and value creation through these decisions on how to
deliver the value proposition:-

– Where to play along the value chain

– What cost model is needed to ensure attractive returns

– What organizational structure and capabilities are essential

to success Service Innovation

•providingService innovation, as the term suggests, refers to a new and improved way of
customer service.

•satisfactory
Currently, it involves employing digital and technological innovations to offer a
customer experience.

•less timeconsuming
The main focus of any innovation should be on making a process easy and
for customers
CUSTOMER DELIGHT !

Service Innovation contd………

•serviceCustomer service innovation can be an improvement in an existing

or an entirely new service. This should help the firm retain its existing
customers and acquire new ones.

•product-based
While an extremely important idea for servicebased companies, it applies to
companies too.
Benefits of Service Innovation

•alter howService innovation refers to any positive changes in the services sector that
services are provided or introduce new services.

•to enhance
The main aim of innovative services is to simplify existing customer processes
ease and speed.

•top of the
Innovation can be a game-changer for companies that help them to stay at the
charts and earn brand loyalty.

•stay ahead
Especially now, services should incorporate new technology and the internet to
or at least at par with competitors.
 Design led Innovation

•to radically
It is a process that shifts the role of a designer to work across an organization
change the company’s view of the value proposition offered to customers
to co-design, and to generate a unique and sustainable competitive advantage.

•thinkingDesign-led innovation refers to the philosophy that businesses should be forward-

and problem-solving. It takes the principles of design and applies them to the

running of a company. The popularity of design-led innovation is growing as

its success becomes evident.
Frame-work of Design Led Innovation
Core Elements of Design Led Innovation

1. User Experience
2. Process & Capabilities
3. Profit Models
4. Brands
5. Partners and Resources
6. Channels
7. Offering
• User Experience
• What to ask: What are the user’s wants, needs, and potential?
• What it is: User experience design begins with determining our most
important users and then diving deep to understand their wants and needs. By
observing patterns of current activities, workarounds, and aspirations, insights
are derived to guide the creation of new offerings.
• Whether insights prescribe entirely new business models or re-
tooled elements, a foundational user understanding enables concepting,
design, and mapping of ideal future experiences.
• User Experience Owners: Consumer Insights, Digital & User Experience
Process & Capabilities
What to ask: What systems and internal capabilities will we leverage or evolve?
• What it is: Process and capabilities design are paramount in building a culture focused on
design innovation. Through capabilities design, a company’s financial, physical, intellectual, and
human resources can be connected in more agile and elastic ways to inspire dynamic and
unexpected value creation, improving core functions and driving a healthier workplace.
• A company’s core process design can also leverage a usercentered
approach to challenge organizational conventions and prototype new approaches
to corporate strategy, R&D, knowledge management, and skills development.
• Process & Capabilities Owners: Engineering, Manufacturing, IT/Technology
• Profit Models
• What to ask: What will users value and how will we derive profit?
• What it is: User-centered profit models are based on a rich understanding of
what users truly value. By uncovering genuine motivations for purchases, new and
tailored revenue models can be established. Often, multiple models are created to
provide users maximum access to offerings while keeping competitors at a distance.
• Considerations around pricing are driven by user value creation and
willingness to pay, versus competitive pressures. Because this framework is user-
centered, rather than competition-driven, typical purchase patterns are routinely
disrupted, delivering new options and opportunities for buyer engagement.
• Profit Models Owners: Corporate Strategy, Finance
Brand
What to ask: What relationship will users want to have with us?
• What it is: Strong brands are based on establishing meaningful relationships
with users. The scale of most corporations necessitates a broad range of brand
interaction methods — from one-to-one conversations to mass communication.
• Regardless of tactic, a company’s communications, language, imagery, and iconography
must be consistently aligned with user values. Key innovations in the Brand element explore brand
position, brand image, customer relationship management, and customer engagement.
• A coordinated, user-centered brand practice will distinguish offerings,
maximize recognition, and drive preference among current and future users.
• Brand Owners: Brand Management
•
•
Partners & Resources
What to ask: What user needs will be served if we leverage other’s capabilities and profit models?

• What it is: The value we create for users should not be limited to our own
process and capabilities. From infrastructure to open innovation, collaboration with
complementors or competitors can disrupt a market by quickly enabling access to
new expertise, customers, capital, and other resources.
• Networks can be short term alliances to execute a special project, or enduring
partnerships to establish new entities. These relationships can reduce cost and risk or
enable the creation of otherwise unfeasible offerings. The Partners & Resources element
seeks to tap latent marketplace potential to deliver lasting user and business value.
• Partners & Resources Owners: Strategic Partnerships, Sourcing
Channels
What to ask: Where will users engage throughout their purchase journey?
• What it is: Of all seven elements, user expectations are perhaps changing most
rapidly in Channel. Physical stores are polarizing: some becoming physical showrooms
for their ecommerce competitors; others, highly immersive flagships for powerful brands.
Users demand both speedy self-empowered check-outs and highly tailored consultation.
• Through the right mix of technology, experience, brand, and commerce, channels
can deliver on users’ fragmented tastes and time constraints. This element considers
trade-offs of owned versus partner; direct versus indirect; physical versus digital; as
well as earned versus paid media to build awareness and motivate user purchase.
• Channels Owners: Sales, Strategy
• Offering
• What to ask: What platforms, products, and services will be rewarding to deliver?
• What it is: User-centered offerings span products and services that align to
deliver compelling and seamless experiences. Each product or service within an
ecosystem executes against one or more specific unmet need. Individual offerings
deliver a quality experience, yet they become better together.
• Whether delivering product enhancements or truly disruptive offerings, this platform
approach drives ongoing sales, establishes competitive barriers, increases presence in channels,
builds brand equity, and enables the company to create longer-term customer relationships.
• Offering Owners: CEO/Senior Leadership, Product Management
 Improvisation

• Improvisation is the ability to create and implement a new or an unplanned solution in

the face of an unexpected problem or change. It is often seen as a spontaneous, intuitive,
creative problem-solving behavior that mostly happens “on the fly.”
• It is the key to organizational agility.
Types of Improvisation

• Imitative Improvisation
• Reactive Improvisation
• Generative Improvisation
 UNIT 1 Entrepreneurship

Meaning
• Entrepreneurship is the ability and readiness to develop, organize and run a
business enterprise, along with any of its uncertainties in order to make a profit. The
most prominent example of entrepreneurship is the starting of new businesses.
• In economics, entrepreneurship connected with land, labour, natural
resources and capital can generate a profit. The entrepreneurial vision is defined
by discovery and risk-taking and is an indispensable part of a nation’s capacity to
succeed in an ever-changing and more competitive global marketplace.
Definition and Concept
• Entrepreneurship is when an individual who has an idea acts on that idea,
usually to disrupt the current market with a new product or service. Entrepreneurship
usually starts as a small business but the long-term vision is much greater, to seek
high profits and capture market share with an innovative new idea.
• Entrepreneurship is the creation or extraction of economic value in ways
that generally entail beyond the minimal amount of risk (assumed by a traditional
business), and potentially involving values besides simply economic ones.
Factors Which Affect Entrepreneurship

• Entrepreneurship is essential for the development of any economy. Countries

which have flourished attribute their rise to the growth of entrepreneurship. Therefore,
governments and people all over the world want to encourage this concept.
• This article lists down the factors which contribute to the growth of
entrepreneurship and therefore to the growth of the economy of any given area.
•
Factors Which Affect Entrepreneurship

• Political Factors

• Legal Factors

• Taxation

• Availability of Capital

• Labor Markets
• Raw Materials

• Infrastructure
Political Factors

•geographical
Political factors play a huge role in the development of entrepreneurship in a given
area. This is because politicians decide the type of market that is in place.

•adoptedThea market could be capitalistic, communist or some countries have

mixed economy. Each of these three markets has very different
implications for the way in which entrepreneurs are required to function.

• Capitalism requires breakthrough innovation whereas communism requires

entrepreneurs to be well connected with the political class. Therefore, it has been observed
that the more capitalistic any country is, the more entrepreneurship flourishes in the region.
Legal Factors

• Entrepreneurs are dependent upon law for a wide variety of factors. The strength and
fairness of the legal system of a nation affect the quality of entrepreneurship to a large
extent. This is because entrepreneurs require a wide variety of legal services to function.

• For instance, entrepreneurs would require the courts to enforce the contracts
that were entered to between parties.

• In many countries such contracts are not enforceable and therefore the resultant
risk prohibits the development of entrepreneurship. Then again, the entrepreneurs are
dependent on the courts for the protection of their property rights.

• Also, many advanced countries have noticed that the provision of declaring bankruptcy
has been positively associated with the development of entrepreneurship. Entrepreneurs do fail
a few times before they find the right innovation that leads to their success.

• The United States is amongst the countries with the highest rate of entrepreneurial
development and it is also known to have one of the most advanced bankruptcy laws! Even
business legends like Henry Ford had declared bankruptcy in their early days
Taxation

•provisions
The government can also influence a high degree of control on the market through
of taxation.
•administrative
Some amount of taxation is necessary for the government to maintain the legal and
systems in place for the entire economy.

•adopt the
However, a lot of times governments resort to excessive taxation. They usually
policy of beggaring the rich and giving it off to the poor. This goes against the
basic tenets of entrepreneurship which believes in survival of the fittest.

•entrepreneurs.
Therefore, countries where tax regimes are restrictive find an outflow of
In short, entrepreneurs want to set up shop in places where there is
minimal interference from the government.
Availability of Capital

•the development
The degree to which the capital markets of a nation are developed also play a huge role in
of entrepreneurship in a given region.

•scale upEntrepreneurs require capital to start risky ventures and also require instant capital to
the business quickly if the idea is found to be successful.

•every stage
Therefore, countries which have a well developed system of providing capital at
i.e. seed capital, venture capital, private equity and well developed stock and
bond markets experience a higher degree of economic growth led by entrepreneurship.
Labor Markets

• Labor is an important factor of production for almost any kind of product or service.

•of skilled
The fortunes of the entrepreneurs are therefore dependent on the availability
labor at reasonable prices. However, in many countries labor has become
unionized. They demand higher wages from the entrepreneurs and prohibit other
workers from working at a lower price. This creates an upward surge in the costs
required to produce and as such has a negative effect on entrepreneurship.

•move their
With the advent of globalization, entrepreneurs have witnessed the freedom to
operations to countries where labor markets are more favorable to them.
This is the reason why countries like China, India and Bangladesh have witnessed a
huge rise in entrepreneurial activity in their countries
 Raw Materials

•productJust like labor, raw material consisting of natural resources is also an essential
required for any industry.

• In some countries this raw material is available through the market by paying
a fair price. However, in some countries seller cartels gain complete control over
these natural resources. They sell the raw materials at inflated prices and therefore
usurp most of the profit that the entrepreneur can obtain.

•depletionTherefore, countries where the supply of raw material faces such issues witness
in the number of entrepreneurial ventures over time.
Infrastructure

• Lastly, there are some services which are required by almost every industry to flourish.
These services would include transport, electricity etc. Since these services are so basic, they
can be referred to as the infrastructure which is required to develop any business.

•services,
Therefore, if any country focuses on increasing the efficiency of these
they are likely to impact the businesses of almost all entrepreneurs in
the region. Therefore, countries which have a well developed infrastructure
system witness high growth of entrepreneurship and the opposite is also true.

•complexOf acourse, the above list of factors is not exhaustive. Entrepreneurship is far too
subject to capture in a few bullet points. However, the above list does
provide an indication towards the type of factors that can play an important role.
What is an Entrepreneur?

•entrepreneur.
A person who undertakes the risk of starting a new business venture is called an

•which aggregates
An entrepreneur creates a firm to realize their idea, known as entrepreneurship,
capital and labor in order to produce goods or services for profit

•necessary
Entrepreneurs play a key role in any economy, using the skills and initiative
to anticipate needs and bring new ideas to market.
Characteristics and skills of an Entrepreneur
5 Skills Every Entrepreneur Should Have

•certain To mitigate the risk of financial loss or failure, it serves a business owner to have a
set of skills.

•strategize.
A great entrepreneur must be able to effectively communicate, sell, focus, learn, and

•valuableAnlifeability
skill.
to continuously learn is not just a key entrepreneurial skill, but also a very

• Growing a business requires a sound strategy based on inherent business sense

and skills. 5 Skills Every Entrepreneur Should Have

• Communication

• Sales

• Focus

• Ability to Learn

• Business Strategy

Communication

•entrepreneur
Every entrepreneur needs to be an effective communicator. Whether a person is a solo
or runs a Fortune 500 company, they need to understand how to
communicate effectively to all stakeholders and potential stakeholders that
touch the business.

•investors,
It is imperative for an entrepreneur to be able to communicate with employees,
customers, creditors, peers, and mentors. If an entrepreneur cannot
communicate the value of their company, it’s unlikely the company will be successful.
Sales

•to be successful.
The soft skill of sales goes hand-in-hand with the communication necessary
As an entrepreneur, this person needs to be able to sell anything
and everything. An entrepreneur needs to sell the business idea to potential
investors, the product or service to customers, and themselves to employees.

•sell theirIf an entrepreneur is able to communicate effectively, they are better equipped to
ideas and physical products.

•their respective
In the beginning, it's natural for entrepreneurs to be the first salespeople at
companies. Those sales skills are necessary to demonstrate value
for all stakeholders inside and outside the company.
Focus

•are theThe path to successful entrepreneurship is riddled with ups and downs. There
highs of successes and the despairs of setbacks. A successful entrepreneur
needs to be able to focus so they can stay the course when the going gets tough.

•strugglesThisanskillentrepreneur
can also be thought of as thinking with the end in mind. No matter what
goes through, a successful entrepreneur has the focus
necessary to keep an unwavering eye on the end goal and can push himself to achieve it.
Ability to Learn

•entrepreneurship.
The ability to learn is one of the most important skills to have in life, let alone in
If someone is building a business, however, the ability to learn is
required for success.

• The ups and downs an entrepreneur goes through are unavoidable. An

entrepreneur needs a high ability to learn—and a desire to learn. If a person is able to learn
in any situation, even failure, they have the skills necessary to become a successful
entrepreneur. Failure can help expand one's knowledge and understanding of business.
 Business Strategy

•company,
While a successful entrepreneur has, by definition, built a successful
the skill of business strategy is actually the fifth most important skill
that an entrepreneur needs. Often, entrepreneurs achieve success in their
businesses through their own sheer strength of will.

• By employing effective communication skills, sales skills, a deep focus, and a

high ability to learn, an entrepreneur can actually learn a business strategy on the fly.
When structuring and growing a business, however, it's important that the structure
and growth strategy is based on sound business sense and skills. A successful
entrepreneur needs to have a solid strategy to take their business from good to great.
What is meant by business strategy?

•createBusiness strategy is the strategic initiatives a company pursues to

value for the organization and its stakeholders and gain a competitive
advantage in the market. This strategy is crucial to a company's success and is
needed before any goods or services are produced or delivered.

Strategy “meaning” – a plan that you use in order to achieve something

entrepreneur v/s manager
 Concept of Intrapreneurship

•entrepreneur
The term intrapreneurship refers to a system that allows an employee to act like an
within a company or other organization.

•initiativeIntrapreneurs are self-motivated, proactive, and action-oriented people who take the
to pursue an innovative product or service.

•entrepreneur
An intrapreneur knows failure does not have a personal cost as it does for an
since the organization absorbs losses that arise from failure.
KEY TAKEAWAYS (INTRAPRENUERSHIP)

•within anIntrapreneurship
organization.
is a system which allows an employee to act like an entrepreneur

•leadership
Intrapreneurs are self-motivated, proactive, and action-oriented people who have
skills and think outside the box.

•they'veIntrapreneurship is one step toward entrepreneurship—intrepreneurs can use what

learned as part of a team to develop their own businesses.

Types of Entrepreneurs

• 10 most common types of entrepreneur

– The hustler

– The small business entrepreneur

– The scalable startup entrepreneur

– The large company entrepreneur

– The innovative entrepreneur

– The social entrepreneur

– The buyer entrepreneur

– The imitator entrepreneur

– The cautious entrepreneur

– The digital nomad

The hustler

•potential.Hustlers are willing to work hard with little capital to grow a business they think has
Usually, a hustler’s plans will start small and build up over time, but the term can
also refer to people who start up a hobby business on the side of their 9-to-5.

•lookingThefor hustler isn’t always on the hunt for more money. They’re not even necessarily
a whole new career or a new day job, but a business that fits into their life and
brings in some cash. The tricky part for a hustler is founding a business that doesn’t take
over their week and doesn’t need too much hands-on attention. Having a successful side
hustle means striking a balance between your work commitments, passions, and home life.

• Examples of businesses a hustler can start:

– Selling art online

– Ridesharing

– Grocery delivery

– Transcription services

– Dropshipping

– Dog walking or pet sitting

– Freelance services like writing, design or video editing

 The small business entrepreneur

• A small business entrepreneur is someone who creates a business idea by

themselves but plans to expand or franchise in the future. This term often refers to local
business owners, like hairdressers, florists, or food trucks operators, but can also mean
ecommerce operators. The starting goal is often launching a single store, but when the
business starts to flourish, the entrepreneur can then start thinking about what’s next.

•for food,
The businesses these entrepreneurs create are often born out of a passion
beauty, flowers, or whatever else they’re selling, in the hopes the
entrepreneur can start a new career in something they love.

• Examples of small businesses an entrepreneur can start:

– Nail or hair salon

– Flower shop

– Bakery

– Vintage store

– Café or restaurant

The scalable startup entrepreneur

• Scalable startup entrepreneurs aim to build a business model that’s expandable. Unlike
small business entrepreneurs, scalable startup owners have growth in mind from the very
start, even if they come from very humble beginnings. Think of world-famous brands like
Amazon, Google, and Shopify that all started small with the intention of changing the world.
• Examples of businesses a scalable startup entrepreneur can start:

– SaaS products

– App

– Digital products or tools

– Online boutique
The large company entrepreneur

•of business
The large company entrepreneur is usually an advanced professional with a lot
experience. The goal is to create or maintain a company that has multiple
lifecycles with the idea of turning existing ideas and products into innovative new
offerings. Large company entrepreneurs are constantly creating new services and
products based on market demands and are focused on consistent growth.

•businessBrands like Microsoft and Disney fall under this type of entrepreneurship, but small
entrepreneurs can also reach this level if their company grows particularly fast.

• Examples of businesses a large company entrepreneur can start:

– Selling products or services acquired from existing brands

– New branches of a company, like a learning hub or an online shop

– Incubation programs to find fresh talent

The innovative entrepreneur

• Innovative entrepreneurs are all about finding the next big thing.
•changeTheir hope is to come up with a groundbreaking idea that will solve a huge pain point or
an entire industry. Take Uber and Airbnb, for example. The innovator actively seeks out
an opportunity to fill a gap in the market and be the first to offer something newer and better

• Examples of businesses innovative entrepreneurs can start:

–An app to make an existing process easier

–A new take on an existing business model
–An alcohol-free bar
–A new piece of wearable technology
The social entrepreneur

•world aSocial entrepreneurship is focused on solving social problems and making the
better place, whether it’s through sustainable products, community initiatives,
or charity endeavors. This type of entrepreneur isn’t concerned about big profits or
untethered wealth. Instead, they’re committed to working toward social good.

•Nobel For example, the Grameen Foundation’s founder, Muhammad Yunus, won a
Prize for his business idea. The company is a microfinance organization that
helps women get out of poverty through low-interest loans.
Examples of businesses a social entrepreneur can start:

– Educational services

– Eco-friendly products

– High-speed internet for remote communities

– Apps for local alerts

The buyer entrepreneur

•entrepreneur
Instead of starting their own business or side hustle from scratch, a buyer
will invest in other businesses. They’ll either purchase a wellestablished
company and reap the rewards or help develop an existing company to help them thrive.

•entrepreneurship
Don’t confuse this type of entrepreneur with investors or venture capitalists. Buyer
means getting involved in a business both financially and personally. It
involves being an active part of growing the bought businesses. When a business is
making a healthy profit, the buyer might hand over leadership to someone else while they
work on their next investment, or they will remain an active part of the business.
Examples of businesses a buyer entrepreneur can start:

– Acquiring existing physical companies

– Creating an umbrella company with multiple subdivisions

– Property investing

– App or software acquisition

The imitator entrepreneur

•entrepreneurship.
Imitation is the greatest form of flattery, and this is the motivation behind imitator
• Instead of coming up with new ideas, imitator entrepreneurs take inspiration
from existing businesses. They don’t completely rip off the idea— they’ll work hard to
improve the idea and fill any glaring gaps in the market. Imitators are good at learning
from other people’s mistakes to ensure their businesses thrive, and they can come in
all shapes and sizes, from a side hustle imitator to a large company imitator.

• Kickstarter, for example, took inspiration from Indiegogo a year before it launched. It’s now
one of the biggest crowdfunding sites in the world.
Examples of businesses an imitator entrepreneur can start:

– White labeling an existing well-known brand

– Replicating an existing product but with extra features

– Creating a copycat brand with better marketing

The cautious entrepreneur

• Also known as researcher entrepreneurs, cautious entrepreneurs take their time

when starting and growing a business. They do their due diligence, carry out research,
and only go ahead with their plans when they’re certain they’ll succeed.

• Cautious entrepreneurs rely on facts, data, and logic and will often create detailed
business plans before getting started.

• Examples of businesses a cautious entrepreneur can start can vary wildly—the

differentiation is in the process they use to get started. Instead of diving in headfirst, this type of
entrepreneur will spend months or years researching their market, product fit, and game plan
 The digital nomad

• While many of the entrepreneurs listed here have the luxury of working
from wherever they want, digital nomads make it a critical part of their
business plan. They create businesses that they can work on anywhere,
anytime, from a beach in Barbados to the bustling city streets of Tokyo.

•run businesses
The goal is the freedom to travel as much as possible. Most digital nomads
from their laptops and often use skills like copywriting, designing,
coaching, and teaching to earn money.

• Examples of businesses a digital nomad can start:

– Copywriting

– Design

– Web development

– Teaching

– Course creation

– Coaching

– Ecommerce brand
Functions of Entrepreneur
Functions of Entrepreneu

• Entrepreneurs drive economic growth by unlocking business potential

through innovation, risk-taking, and leadership. They network, strategically
plan, and optimize resources to create value, adapt to change, and overcome
challenges on their path to success. Embrace these essential entrepreneurial
functions and ignite your entrepreneurial spirit for a thriving venture.

• Entrepreneurship is a vital force that drives economic development and shapes

the business landscape. Entrepreneurs are visionary individuals who identify
opportunities, take calculated risks, and bring innovative ideas to life. They play a crucial
role in creating and expanding businesses, generating employment
opportunities, and fostering economic growth.
Let’s explore functions of entrepreneur with examples.

• A. Entrepreneurial Functions

• Innovations

• The first function of entrepreneur is the ability to introduce new ideas, products,
processes, or business models into the market. It involves identifying opportunities for
improvement and creating solutions that meet customer needs in a unique way.

•by introducing
Example: Elon Musk’s Tesla, revolutionized the automotive industry
electric vehicles with cutting-edge technology.

• Risk-Taking

•with uncertain
Entrepreneurs are willing to take calculated risks and make decisions
outcomes to pursue opportunities. They understand that the
potential for rewards often comes with inherent risks.

• Example: Richard Branson’s Virgin Group, which expanded from a small record
store to a diverse conglomerate encompassing airlines, media,
telecommunications, and more, despite the risks associated with
entering various industries.
• Organisation Building

•bring their
Entrepreneurs are responsible for building and managing organizations to
ideas to fruition. This involves assembling a team, creating a structure,
and establishing processes to ensure the efficient operation of the venture.

•projectExample: Mark Zuckerberg’s Facebook started as a small dorm room

and grew into a global social media platform with thousands of
employees and a complex organizational structure.

• B. Promotional Functions
• Investigation of Ideas

• Entrepreneur’s function is to systematically explore and evaluate business ideas

to assess their feasibility and potential. They gather information, conduct market
research, analyze trends, and evaluate the viability of their ideas before proceeding.

•researchExample: Before launching Airbnb, the founders conducted extensive

on the travel and accommodation industry to identify the market gap
and validate the concept of peer-to-peer homesharing.

• Detailed Investigation

• Once an idea is identified, entrepreneurs analyse the market, target audience,

competition, and potential risks. They gather detailed information to understand the
business environment and make informed decisions comprehensively.

• Example: Jeff Bezos extensively studied the e-commerce market and its potential
growth before founding Amazon. He conducted thorough research to identify the best
product categories and built a robust infrastructure to support the online retail platform.

• Assembling Requirements
•gathering
It’s another function of entrepreneurs where they work towards
the necessary resources, including human capital, technology, raw
materials, and suppliers, to bring their ideas to life. They carefully select and
assemble the required elements for their venture’s success.

•assembled
Example: The founders of Warby Parker, an online eyewear company,
a network of manufacturers, designers, and suppliers to create a
streamlined supply chain and provide affordable, stylish glasses to customers.

• Financing the Proposition

• Entrepreneurs explore different avenues to secure funding for their ventures.

They develop a compelling business case and pitch their ideas to potential investors,
lenders, or venture capitalists. They may also use personal savings, crowdfunding
platforms, or seek partnerships to finance their proposition.
•privateExample: Elon Musk’s SpaceX raised significant capital through
investments and government contracts to finance the development
and launch of advanced rockets and spacecraft, enabling the company to
pursue its ambitious space exploration goals.

• C. Managerial Function

• Planning
•strategicPlanning is a function of entrepreneurs where they engage in
planning to set goals, define objectives, and establish a roadmap
for their venture. They anticipate future challenges, identify opportunities,
and develop strategies to achieve their vision.

•settingExample: Steve Jobs meticulously planned the launch of the iPhone,

clear goals, designing a comprehensive marketing strategy, and
coordinating the development process to revolutionize the smartphone industry.
• Organizing

•the effective
Entrepreneurs organize resources, tasks, and responsibilities to ensure
execution of their plans. They create organizational structures,
delegate roles, and establish workflows to optimize operations.

•clear organizational
Example: Larry Page and Sergey Brin, the founders of Google, established a
structure with specialized teams and departments to manage
various aspects of the business, allowing for efficient collaboration and innovation.

• Staffing

• Entrepreneurs use staffing by identifying talent, recruiting suitable individuals,

and building a skilled workforce. They recognize the importance of assembling a team
with diverse skills and expertise to drive the growth and success of their venture.

•of talented
Example: Reed Hastings, the co-founder of Netflix, strategically built a team
professionals in technology, content creation, and marketing to disrupt
the traditional television industry and establish a global streaming platform.
• Directing

• Another function of entrepreneurs is to provide leadership and direction to their

teams, guiding and inspiring them to achieve organizational goals. They communicate
the vision, set performance expectations, and clarify roles and responsibilities.

•inspireExample: Oprah Winfrey used her influential platform to direct and

her team at Harpo Productions, fostering a creative and collaborative
environment that led to the production of successful television shows and
the establishment of a media empire.
• Leadership

•their teams.
Entrepreneurs exhibit leadership qualities by inspiring and motivating
They lead by example, create a positive work culture, and empower
employees to unleash their potential.

• Example: Jack Ma, the co-founder of Alibaba, demonstrated visionary leadership

by inspiring his team to embrace e-commerce and transform the Chinese market. His
leadership style fostered innovation, collaboration, and a customer-centric approach.

• Communication
•effectively
Entrepreneurs communicate their vision, goals, and expectations
to their team members, stakeholders, and customers. They
ensure open lines of communication, listen actively and convey information
clearly to drive alignment and collaboration.

•transparent
Example: Mary Barra, the CEO of General Motors, emphasizes
communication to foster a culture of trust and collaboration,
enabling the company to navigate challenges and drive innovation.

• Motivation

•team members.
Entrepreneurs employ various techniques to inspire and energize their
They recognize and reward achievements, provide constructive
feedback, and create a supportive work environment.
•employees
Example: Richard Branson, the founder of Virgin Group, motivates his
by encouraging a work-life balance, promoting creativity, and offering
opportunities for personal growth and development.

• Supervision

• Entrepreneurs engage in the supervision of their operations, ensuring that tasks

are being performed effectively and efficiently. They provide guidance, monitor
progress, and intervene when necessary to maintain quality and productivity.

•supervisory
Example: Tony Hsieh, the late CEO of Zappos, implemented a unique
approach by fostering a culture of self-management, empowering
employees to take ownership of their work and deliver exceptional customer service.

• Co-ordination
•teams,Entrepreneurs coordinate the activities of different departments,
and stakeholders to ensure synergy and alignment. They facilitate
collaboration, resolve conflicts, and ensure that all parts of the
organization work harmoniously towards common goals.

• Example: Phil Knight, the co-founder of Nike, implemented effective coordination

strategies to synchronize the efforts of design, manufacturing, and marketing teams,
enabling the company to deliver innovative products and maintain its competitive edge.

• Controlling
•evaluateEntrepreneurs implement control mechanisms to monitor progress,
performance, and ensure that outcomes align with set goals.
They establish key performance indicators, analyze data, and make
necessary adjustments to maintain efficiency and effectiveness.

•processes,
Example: Elon Musk exercises strong control over Tesla’s production
employing advanced data analytics and quality control measures to
ensure that the company delivers high-quality electric vehicles to its customers.
• D. Commercial Functions
• Production

•conversion
Entrepreneurs engage in production activities, which involve the
of inputs into goods or services. They manage the production
process, optimize efficiency, and ensure the delivery of high-quality products.

•the assembly
Example: Henry Ford revolutionized the production process by introducing
line, enabling mass production of automobiles such as the Model T.

• Finance

•capital,Entrepreneurs handle financial functions such as managing funds, raising

and making financial decisions to support their ventures. They analyze
financial data, develop budgets, and seek opportunities for investment and growth.

•investors
Example: Elon Musk’s SpaceX secured substantial funding from
and government contracts to finance the development of reusable
rockets and advance space exploration.
•
• Marketing

•or services.
Entrepreneurs use marketing activities to promote and sell their products
They conduct market research, develop marketing strategies, and
communicate the value proposition to target customers.

•creatingExample: Steve Jobs transformed Apple’s marketing approach by

a strong brand image, captivating advertisements, and innovative
product launches that generated high demand and customer loyalty.

• Personnel

•training,Entrepreneurs manage personnel functions, including recruitment,

and performance management. They build and nurture a talented
workforce, aligning skills with business needs.
•Amazon,Example: Jeff Bezos prioritized talent acquisition and development at
fostering a culture of innovation and customer focus through
comprehensive employee training programs.

• Accounting

• Entrepreneurs oversee accounting functions to maintain financial records, track

revenues and expenses, and ensure compliance with financial regulations. They analyze
financial statements and use financial data to make informed business decisions.

•skills toExample: Sara Blakely, the founder of Spanx, leveraged her accounting
manage the financial aspects of her business, tracking costs and
profitability to drive strategic growth.
Entrepreneurial Decision Process

•which The Entrepreneurial Decision Process is a natural and logical approach

helps individuals to achieve success in new ventures. Most of the
individuals have innovative and creative ideas. Some of them recognize the
opportunity to bring their ideas in the market a nd start a new venture.

• Most of the individuals have innovative and creative ideas. Some of them
recognize the opportunity to bring their ideas in the market and start a new venture.
Starting a venture takes a lot of courage. To become successful and be in business,
the combination of three skills i.e. hard work, skill and perseverance is required.
 Entrepreneurial Decision Process

• Change from Present Lifestyle Switching from present work environment to start a
new venture is not an easy task. It requires a lot of courage and high energy. The persons
who interested to start a new venture try to start business in their familiar area. This
definitely helps them. Despite of this, two work environments – research and development
and marketing help the individuals to initiate the new enterprises. Some of the ventures
are formed by retired people and who have been fired.

• Desirability of New Venture Formation An individual’s culture, subculture, family,

teachers, and peers have an important role to build one’s perception in starting a new
company. Culture and subculture support an individual to create a new business
successfully. Individuals plan enthusiastically new enterprises in these supportive
environments. It was observed that a high percentage of the founders of companies had
fathers and/or mothers, who valued independence permeates their entire family life,
giving support and encouragement to their children’s companyformation activities.
Simultaneously teacher stimulate individual and play significant role to form a
company by influencing them in regard to entrepreneurship, as a viable career path.
Similarly, university education base is an important factor for entrepreneurial activity
and company formation. At last, peers are also very significant role in the decision to
form a company. An environment which supports entrepreneurs and potential
entrepreneurs for discuss ideas, problems, and solutions produces more new
ventures than an area where these are not available.

• Possibility of New Venture Formation Even though the desirability of new

venture formation is based on individual’s culture, subculture, family, teachers,
and peers, the second feature of decision process has talk about the possibility of
new venture formation. Factors like government, background, marketing, role
models, and finances contribute significantly to the creation of a new venture.
Government contributes by providing the infrastructural support to a new venture.
Entrepreneurial necessary background like formal education and previous
business experience help them to manage with the social, psychological, and
financial risks. An understanding of marketing like total package of product, price,
distribution, and promotion also plays an important role in beginning a new
company. Having a role model can be one of the most powerful influences in
starting a new venture. At last, financial resources must be accessible. If the risk
capital is readily available, it encourages the individual to form a new venture.
Challenges faced by entrepreneurs
1. Selecting a service or product
2. Developing a sales strategy
3. Establishing starting funds
4. Maintaining a budget
5. Sustaining revenue
6. Staffing the organization
7. Managing employees
8. Expanding the business
9. Managing time & Delegation of Tasks
10.Maintaining confidence
11.Collaborating with partners

Changing role of Entrepreneur

In the era of liberalization, privatization and globalization, an entrepreneur
will have to :-

• Explore and exploit opportunities for trade in the world economy

• Discover, utilize, and develop the core strength of the economy.

• Conduct R&D activities to meet the global standards

• Improve the quality of technology and quality of manufacture to be
able to complete well with foreign competition.
• Reduction of cost of production to make the product/service
available at a competitive price.
• Undertake advertising, sales promotion, marketing, packaging
effectively for capturing foreign markets.
• Develop new products, new areas of production for widening the countries
trade.

• Search new markets and capture more and more markets.

• Expanding the geographical base of the marketing.

• Increase production to accelerate economic growth rate

• Come up with innovative ideas to solve financial, economic and

other problems of the countries.
• Play the role of imitating entrepreneurs i.e. study the latest changes
in the advanced countries- and use them gainfully.
• Utilize the underutilized/ unutilized capacity so that full benefits can
be enjoyed e.g. Hydropower capacities are still unutilized.
Women enterprises

•of 51% ofAntheenterprise owned and controlled by woman having a minimum financial interest
capital and giving at least 51% employment generated to women.

• Women Entrepreneurs means the women or a group of women who initiate,

organize and operate a business enterprise. A woman entrepreneur is therefore a
confident, creative and innovative woman desiring economic independence individually
and simultaneously creating employment opportunities for others In the
advanced countries of the world, there is a phenomenal increase in the
number of selfemployed women after the World War II.
WOMEN ENTREPRENEUR- IN INDIAN PERSPECTIVES:

•entrepreneurs.
Indian women is changing and they are fast emerging as potential
Role modeling of women in non-traditional business
sectors to break through traditional views on men’s and women’s sectors.
Women companies are fast-growing economies in almost all countries.

• The latent entrepreneurial potential of women have changed little by little by

the growing awareness of the role and status of economic society. Skills, knowledge
and adaptability of the economy led to a major reason for women in business.

•and medium
Women are coming forth to the business arena with ideas to start small
enterprises. They are willing to be inspired by role models- the
experience of other women in the business arena.
Women entrepreneurs can be broadly categorized into five categories

•businessmen.
1) Affluent entrepreneurs – These are daughters and wives of wealthy
These women have the financial aid and the necessary resources to
start a new enterprise and take business risks.

•with or2)without
Pull factors – These are educated women living in urban areas
work experience who take the risk of a new enterprise with
the help of financial institutions and commercial banks. These women take
up a new business as a challenge in order to be financially independent.

•overcome
3) Push factors – These women take up some business activity in order to
financial difficulties. Generally widows and single women manage an
existing family business or develop a new business due to difficult family situations.

•business4) Rural entrepreneurs – These women belong to rural areas and choose a
suiting their resources and knowledge. Business carried out involves
low investment, minimum risk and does not require any special skills.
•below 5)theSelf-employed entrepreneurs – They are uneducated women who fall
poverty line. They choose tiny and small enterprise which are
convenient to manage and adequate for the sustenance of her family.
Social entrepreneurship

•up Social entrepreneurship is an approach by individuals, groups, start-

companies or entrepreneurs, in which they develop, fund and
implement solutions to social, cultural, or environmental issues.

• This concept may be applied to a wide range of organizations, which vary

in size, aims, and beliefs. For-profit entrepreneurs typically measure performance
using business metrics like profit, revenues and increases in stock prices.

•for-profit
Social entrepreneurs, however, are either non-profits, or they blend
goals with generating a positive "return to society". Therefore,
they use different metrics.

•culturalSocial entrepreneurship typically attempts to further broad social,

and environmental goals often associated with the voluntary sector in
areas such as poverty alleviation, health care and community development.
Rural Entrepreneurship

•which Rural entrepreneurship refers to the development of a new enterprise

pioneers new products and services, creates a new market for its
offerings or uses advanced technology, in the rural area.

•areas isIn termed

simple terms, the entrepreneurship which springs up in non-urban
as rural entrepreneurship. This leads to the establishment of
industrial units in rural areas.
Need for Rural Entrepreneurship
 Problems of Rural Entrepreneurship

• Paucity of Funds

• Lack of technical know-how

• Lack of training and development

• Non-availability of skilled labours

• Risk Element

• Legal Formalities

• Lack of technical knowledge

• Lack of Quality Control

• Lack of communication and market insights

• Lack of storage and transportation facilities

• Old and obsolete technology, machinery and equipment

• Lack of promotional strategy

• Lack of infrastructural facilities

• Poor quality standards

Development of Rural Entrepreneurship