Chapter 1 Entrepreneure

Entrepreneur Development
Chapter - One
Ishita Roy
The Term “Entrepreneur”
A person who setup or, start a new Business /

Businesses taking the risk of investing Capital in the
hope of earning Profits.
An entrepreneur is a person who sets up a business
with the aim to make profit.
For example: Bike shop, Departmental store, Small
business.
According to “Richard Cantillon” Entrepreneur is
an Agent or Innovator who invest in the purchase of
Goods and Materials with an incentives of selling
in Future.
It’s a refers to the terms of Self employment of
any sort. The person buy goods, materials at a
certain price at present and wanted to sell them in
future at an uncertain price.
According to “Joseph Schumpeter” Entrepreneur is an
innovator who desired to earn profit through innovation of
new idea.
The key concept of Entrepreneur: 4

1. Innovation :- Concern about new idea generation to solve problem.
2. Risk taking :- Capable to take the risk of capital investment for Profit or Loss.
3. Vision :- Passionate about goals achieving and earn profit.
4. Organization :- Knowledge about how to evaluate the business activities.
5. Capital manager :- Entrepreneur is the person who manage and arrange the capital for
the start up of that particular business.
Characteristics of Entrepreneur
Creative and Capacity to
innovative invest
Open minded about
learning, people even Professionalism
failure
Power of Risk Taker

Motivation
Hard Worker &

Strong mental
Maintain public health
relationship Knowledge Communicative
about Ethics & & Highly
Organizational optimistic
Behavior
Discuss about the following:-
What are the major differences between

Entrepreneur, Manager and Intrapreneur?
Entrepreneur Intrapreneur Manager
Start the initial business/ Directly involve in organizational works Work under the direction of
organizational entity but under the direction of owner entrepreneur
Visionary and bear all the risk Concern about traditional status, works Works for salary and dose not
for salary. bear any risk
Rewards is all the efforts and Get fixed reward for the work, Rewards are the remunerations,
profit he earns from the sometime get extra reward for commissions, and the bonus.
organizational activities. innovation of new idea
Can be formal and informal both He formal to the duty Cannot be informal at the time of
when he needed to be. duty and organizational
activities.
Is Independent and don’t need to Independent, helps to idea generate Is dependent on the owner’s
report to anyone. but limited to duty. decisions, have to report the
higher authority.
Entrepreneur mobilize the fund Don’t mobilize the fund but helps to Don’t mobilize the fund just work
for the organization to start the generate the idea of business against salary
venture
Operates mostly both inside and Operate both inside and outside but Operates only the inside work of
outside of the organization duty is limited the organization
What are the charms of becoming a Entrepreneur?
Opportunity to Create One’s Own Destiny

Owning a business provides entrepreneurs both the independence and opportunity to do
and achieve what is important to them. Entrepreneurs know that they are the driving forces
behind the success of their business.
Opportunity to Make a Difference
A perceptible trend which is on increase also noticed among the entrepreneurs is that
they start their business because they see an opportunity before them to make a dent and
difference in the cause that is important to them. It may be providing low-cost houses to the
middle-class families or establishing a recycling programme to preserve the earth’s limited
resources.
Opportunity to Reach One’s Full Potential
Owning a business gives entrepreneurs a sense of empowerment to do what they can. In
his ‘Need Hierarchy Theory of Motivation,’ Abraham Maslow termed it ‘Self-Actualization’.
Thus, doing business becomes entrepreneurs’ play. They know that the only boundaries on
their success are those imposed by their own creativity, enthusiasm and vision.
 Opportunity to Reap Impressive Profits
Industrial surveys show that the entrepreneurs earn much more income than if they
work for others, say some organization. Of course, all not, but some entrepreneurs
become super-rich. Michael Dell, the owner-entrepreneur of Dell Computer Corporation
is one such example of richness reaching the list of the wealthiest people in the United
States.
 Opportunity to Contribute to Society
Entrepreneurs by running their businesses in an honest and transparent manner and
serving the customers faithfully earn recognition and respect in their communities. They
contribute to the well being of the society as well by providing jobs to
unemployed, utilizing idle resources, reducing differences in the levels of
development of different regions, and producing and providing goods and services to the
people in the society.
 Opportunity to Do What One Enjoys
Entrepreneurial history is replete with the instances that most of the entrepreneurs
entered into business because they have an interest in that line of work. They have
made their avocations (hobbies or interest) their vocations (work).
 They're passionate: Successful entrepreneurs have a passion for
what they do.
 They're confident: They are confident enough to operate the
business and face any situation to run the business.
 They're planners : Entrepreneur always try to make strategic plan to
achieve the desired goals.
 They're money managers : An entrepreneur first quality is capable to
manage the investments and allocate the earnings from the
business.
 They never give up : An entrepreneur is always dedicated to the
business activities they never break down at any situation whatever
the situation is. They always stick to the business and work it out.
What are the effective decision making process of an
Entrepreneur?
7 steps to Effective 07
Review the
Decision making 06
Decision
Decision making is the process of 05 Take action

making the choice by identifying a
Chose among
decision, gathering knowledge and 04 the
assessing alternatives resolution. alternatives
Analysis the
03
information's
Identify
02 Alternatives
Gather
01 knowledge
Identify the
decision
Why an entrepreneur make decision to be an Entrepreneur?
There are varied approaches to understanding why some individuals decide to venture into
entrepreneurship. There are no well-defined psychological attitudes of profiles that all
entrepreneurs or characteristics to which entrepreneurs generally conform
The National Knowledge Commission Study confirms significant motivating factors to be an
entrepreneur are given bellow:-
1. Independence – Freedom to do one’s own thing
2. Market opportunity
3. Family background
4. New idea
5. Challenge
6. Desire to become an entrepreneur
7. Cast encouragement
What are the need for Entrepreneur/ Why we need
entrepreneur/Importance of Entrepreneur?
Some others causes that’s why we need
entrepreneur
 Create employment.
 Innovation
 For making the society better at its condition
 Contribute to the national income
 Make changes in community development
 Helps to increase the standard of living
 Supports research and development
What is Entrepreneur & Entrepreneurship?
Meaning Entrepreneur Entrepreneurship
Meaning An entrepreneur is an individual or a Entrepreneurship is a risky activity of

team thereof, having an innovative commencing a business usually a start up
idea, and takes every step to turn company, offering distinct products and
the idea into reality, while bearing the services to the target customers, which may or
risks may not get success.
What is it? Person who has an idea and gives Process which gives shape to the idea.
shape to it.
Represent An innovator, who chased the A procedure through which an innovation is

dream, till it becomes true. done.
Business He/she is the one who sets up the It is the activity, which an entrepreneur
venture business venture, to turn a concept undertakes to set up the business venture.
into reality.
What are the types of Entrepreneur?
Types of Entrepreneur on the basis of Danhof
1. Innovating entrepreneur :- Innovative entrepreneurs, also known as innovators, are the

type of entrepreneurs who usually come to the market with new ideas or innovations.
They create new products, production methods create new market.
2. Initiative entrepreneur :- Imitative entrepreneurs or imitating entrepreneurs are often
called 'copy cats'. This is because these entrepreneurs mainly follow and adopt the
innovative entrepreneurs' existing successful enterprise system.
3. Fabian entrepreneur :- who generally do not seek to implement changes in their
enterprise techniques. They are very careful in applying any approach and cautious in
exercising any change.
4. Drone entrepreneur :- They strictly follow their traditional strategies or methods for
development, production or marketing. They follow the old ways of business as their
previous members were done. They follow the traditional foot prints.
Role/Contribution of Entrepreneur in economic
development of Bangladesh.
Helps to form the capital Create a new knowledge about the new business
to the people
Make changes in the state of per Capital Income Create Social Awareness
Helps to balance the regional Development Help the society to remove economic problem
Improve the living standards of the people Removing the unemployment problem from the
country
Decrease the dependency on others Production of new products and services
Backward and Forward Linkages Development of new Production Techniques
Inspire others towards Entrepreneurship

Thank You
prepared by,
Mr.jaman

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Chapter 1 Entrepreneure

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Entrepreneur Development

A person who setup or, start a new Business /

The key concept of Entrepreneur: 4

Power of Risk Taker

Hard Worker &

What are the major differences between

Opportunity to Create One’s Own Destiny

Decision making is the process of 05 Take action

Meaning Entrepreneur Entrepreneurship

Meaning An entrepreneur is an individual or a Entrepreneurship is a risky activity of

Represent An innovator, who chased the A procedure through which an innovation is

1. Innovating entrepreneur :- Innovative entrepreneurs, also known as innovators, are the

Decrease the dependency on others Production of new products and services

Backward and Forward Linkages Development of new Production Techniques

Inspire others towards Entrepreneurship

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