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Unit I : - Entrepreneurship Development, Entrepreneur, concept of Entrepreneur, Definition, Characteristics, Functions, Enterprenuer and entrapreneure, Role of an entrepreneurs in economic development., Definition:, An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards., A person who undertakes the risk of starting a new business venture is called and entrepreneur., An entrepreneur creates a firm, which aggregates capital and labor in order to produce goods or services for profit., Entrepreneurship is an important driver of economic growth and innovation., Entrepreneurship is high-risk, but also can be high-reward as it serves to generate economic wealth, growth, and innovation., CONCEPT OF ENTERPRENEUR, RISK BEARER, ORGANISER, INNOVATOR, Characteristics of Entrepreneurs, Desire for responsibility, Preference for moderate risk, Confidence in their ability to succeed, Desire for immediate feedback, High level of energy, Skilled at organizing, Value achievement over money, Functions of an entrepreneur, Who is an entrepreneur?, • An entrepreneur is someone who establishes a new entity to offer a new or existing product or service into a new or existing market, whether it is for a profitable or non-profitable outcome., • An entrepreneur is one who always searches for changes responds to it and exploits it as an opportunity., Functions of an entrepreneur, • Personal initiative :, An Entrepreneur who has strong personal initiative is able to act immediately on available opportunities and choose best strategy when he faces a problem. Initiative allows an Entrepreneur to be alert and proactive., • Persuasion;, • Entrepreneur is persuasive and will be able to persuade his customers to buy his products or services., • He has to persuade many people who have an impact on his business such as staff, customers, suppliers and financial institutions., Identify opportunities:, • grabs or seize opportunities continuously to make sure that his business sustains for a long time in the industry., • focuses, identifies and exploits business opportunities., • maximizes his thinking capacity by finding solutions to problems faced by community., • who is successful will be confident that there is a business opportunity behind every problem., • Feasibility study:, • able to seek information, that is he has done some research to obtain information and received feedback from customers in order to provide a good product or service that can gain customers satisfaction and acceptance., • Planning:, • for arranging business strategies to achieve bussiness goals., • always focuses on the future and is sensitive towards any change that occur., • not be greedy or slow in reacting when an problem emerge. If he does not have expertise in making decisions, he will consider sourcing skilled expertise from outside the company., • Risk bearer, • Should necessarily act as a risk bearing agent of production since he has to handle a greater amount of uncertainties in business, • Risk due to the possibility of changes in the taste of customers, change in fashion and technique of production cannot be insured., • Decision making, • An entrepreneur has to decide the nature and type of goods to be produced, the size of the business, its location, technique of production, type of employees etc., Conclusion, • They are doers, not thinkers, • They are born, not made, • They are always inventors, • Ignorance are bliss, • Extreme risk takers, • Work hard to get noticed, • Seek success but experience high failure rates, Enterprenuer and entrapreneure, What Is an Intrapreneur?, The central difference between entrepreneurs and intrapreneurs is the setting in which they work. “An intrapreneur is an inside entrepreneur, or an entrepreneur within a large firm, who uses entrepreneurial skills without incurring the risks associated with those activities,” Investopedia explains., In many cases, intrapreneurs are able to work on a special project that fosters innovation within their organization. Another key difference is that intrapreneurs don’t take on as much risk as entrepreneurs because they work within a company rather than leading ventures on their own., , “An entrepreneur is an individual who, rather than working as an employee, runs a small business and assumes all the risks and rewards of a given business venture, idea, or good or service offered for sale.” Intrapreneurs often use entrepreneurial skills to launch a new project or initiative within their organization., Role of an entrepreneurs in economic development, ECONOMIC DEVELOPMENT, Economic Development is a process in which all efforts are made to increase national income, national output, per capita income , per capita output and standards of living of people by exploiting all the available resources of country., Role of an entrepreneurs in economic development, 1. WEALTH CREATION AND SHARING, By establishing the business entity, entrepreneurs invest their own resources and attract capital (in the form of debt, equity, etc.) from investors, lenders and the public. This mobilizes public wealth and allows people to benefit from the success of entrepreneurs and growing businesses. This kind of pooled capital that results in wealth creation and distribution is one of the basic imperatives and goals of economic development., 2. CREATE JOBS, Any business start-up requires human resources that could fulfill the demand of the company thereby making earning for them self. Thus it’s very much important for an entrepreneur to seek a maximum number of employee to work that could help each other in vice –versa manner. Hence it’s proven that with each new startup by entrepreneur more and more people will get employed., 3. BALANCED REGIONAL DEVELOPMENT, Entrepreneurs setting up new businesses and industrial units help with regional development by locating in less developed and backward areas. The growth of industries and business in these areas leads to infrastructure improvements like better roads and rail links, airports, stable electricity and water supply, schools, hospitals, shopping malls and other public and private services that would not otherwise be available., 4. GDP AND PER CAPITA INCOME, India’s MSME sector, comprised of 36 million units that provide employment for more than 80 million people, now accounts for over 37% of the country’s GDP. Each new addition to these 36 million units makes use of even more resources like land, labor and capital to develop products and services that add to the national income, national product and per capita income of the country. This growth in GDP and per capita income is again one of the essential goals of economic development., 5. STANDARD OF LIVING, Entrepreneurs raise the standards of living of people by providing them new, better and improved product. They supply goods having additional features at reasonable prices. They also remove scarcity of essential commodities and introduce new products which lead to variety in consumption., 6. EXPORTS, Any growing business will eventually want to get started with exports to expand their business to foreign markets. This is an important ingredient of economic development since it provides access to bigger markets, and leads to currency inflows and access to the latest cutting-edge technologies and processes being used in more developed foreign markets. Another key benefit is that this expansion that leads to more stable business revenue during economic downturns in the local economy., 7. COMMUNITY DEVELOPMENT, A good example of how this kind of community development can be promoted is Azim Hashim Premji, Chairman of Wipro Limited, who donated Rs. 27,514 crores for promoting education through the Azim Premji Foundation. This foundation works with more than 350,000 schools in eight states across India. Economic development doesn’t always translate into community development. Community development requires infrastructure for education and training, healthcare, and other public services. For example, you need highly educated and skilled workers in a community to attract new businesses. If there are educational institutions, technical training schools and internship opportunities, that will help build the pool of educated and skilled workers.