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THE CONCEPT OF AN, ENTREPRENEUR, , , , , , , , DEFINITION,NATURE AND CHARACTERISTICS OF AN ENTREPRENEUR, WORKING PROFILE OF AN INTREPRENEUR, TYPES OF ENTREPRENEUR, INTRAPRENEUR, FUNCTIONS OF AN ENTREPRENEUR, ENTREPRENEUR AND MANAGER----DISTINCTION
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DEFINITION,NATURE AND CHARACTERISTICS, OF AN ENTREPRENEUR, , • HISTORY:, The word ‘entrepreneur' is derived from the French word, ‘entreprendre’which means ‘to undertake’. In the early 16th, century the French men who organised and led military, expeditions were referred to as ‘entrepreneur'. After 1700,the, term was applied to other types of adventures, mainly civil, engineering like constructions of roads etc.
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DEFINITION, • A person who establishes a new business with an, , innovative idea or concept, • The entrepreneur is an economic man,who tries to, , maximise his profits by innovations., • ‘People are poor because they prefer in that way’., • An entrepreneur must accept the challenge and should, be willing hard to achieve something.
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CHARACTERISTICS OF AN, ENTREPRENEUR, 1., 2., 3., 4., 5., 6., 7., 8., 9., 10., , Calculated Risk-taker, Innovator, Organiser, Creative, Achievement Motivated, Technically Competent, Self-confident, Socially Responsible, Optimistic, Equipped with Capability to drive
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11. Blessed with Mental Ability, 12. Human Relations Ability, 13. Communication Ability, 14. Decision-Making, 15. Business Planning, 16. A venture Capitalist, 17. Visionary, 18. Entrepreneur make significant differences, 19. Ability to Spot and Exploit Opportunities, 20. Courage to Face Adversities, 21. Leadership---An essential trait of the entrepreneur
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MANAGER VERSUS LEADER, Manager Characteristics, •, •, •, •, •, •, •, •, •, •, •, •, , Administers, A copy, Maintain, Focus and systems and structure, Relies on control, Short-range view, Asks how and when, Eye on the bottomline, Imitates, Accepts the status quo, Classic good soldier, Does things right, , Leader Characteristics, •, •, •, •, •, •, •, •, •, •, •, •, , Innovates, An original, Develops, Focuses on people, Inspires trust, Long-range perspective, Asks what and why, Eye on the horizon, Originates, Challenges the status quo, Own person, Does the right thing
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WORKING PROFILE OF ENTREPRENEUR, Characteristics, •, , Self-confidence, , •, , Drive, , •, , Traits, •, •, •, , Task-result oriented, •, , •, , Risk-taker, , •, , Mental Ability, , •, •, , •, , Leadership, , Confidence, Independence,, Optimism, Individuality., Responsibility,Vigour, Initiative,, persistence, Ambition., Need for achievement, Profitoriented, Energy., Risk taking ability, Likes, challenges., Overall intelligence(IQ),Creative, thinking, Analytical thinking, ability., Leadership behaviour, Gets, alongwith others, Responsive to, situations, Criticism.
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• Human Relations Ability, , • Emotional stability, Healthy personal, , • Originality, , relations, Sociability, Tactfulness,, Consideration., •Innovative, Creative, Resourceful,, knowledge., •Perceptive, Foresight, Future oriented., , •Communication Ability
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TYPES OF ENTREPRENEUR, 1. According to the Type of Business, i., , Business entrepreneur: Business entrepreneurs are those, entrepreneurs who conceive the idea of a new product or, service and then translate their ideas into reality., ii. Trading entrepreneur: As the very name indicates trading, entrepreneur is concerned with trading activities and not, manufacturing., iii. Industrial entrepreneur: As the very name indicates, an, industrial entrepreneur is one who sets up an industrial unit., iv. Corporate entrepreneur: Corporate entrepreneur is the one, who plans,develops and manages a corporate body., v. Agricultural entrepreneur: Agricultural entrepreneur is the, one who is engaged in the agricultural activities.
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2. According to Motivation, i., , ii., , Pure entrepreneur: Pure entrepreneur is one who may or, may not possess an aptitude for entrepreneurship but is, tempted by the monetary rewards or profits to be earned, from the business venture., Induced entrepreneur: Induced entrepreneur is attracted by, the various incentives, subsidies and facilities offered by the, government.
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3.According to the Use of Technology, i., , Technical entrepreneur: The strength of a technical, entrepreneur is in his skill in production techniques. He, concentrates more on production than on marketing., ii. Non-technical entrepreneur: Unlike technical entrepreneur,, non-technical entrepreneur is not concerned with the, technical aspect of the product rather he spends more time in, developing alternative strategies of the marketing and, distribution to promote his business., iii. Professional entrepreneur: Professional entrepreneur means, an entrepreneur who is interested in floating a business but, does not want to manage or operate it.
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4.According to Capital ownership, i., , Private entrepreneur: When an individual or a group of, individuals set up an enterprise, arrange finance, bear the risk, and adopt the latest techniques in the business with the, intention to earn profits, he or the group is called as private, entrepreneur/entrepreneurs., ii. State entrepreneur: As the name indicates, state entrepreneur, means the trading or industrial venture undertaken by the, state or the government itself., iii. Joint entrepreneur: Joint entrepreneur means the, combination of private entrepreneur and state entrepreneur, who join hands.
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5.According to Scale, i., ii., iii., iv., , Large scale industry entrepreneur, Medium scale industry entrepreneur, Small scale industry entrepreneur, Tiny industry entrepreneur
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INTRAPRENEUR, Intrapreneurs as the persons who resigned from their well paid, executive positions to launch their own ventures., Or, Intrapreneur is an employee of the organization who is, authorized to undertake innovations in product, service,, process, system etc.
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Difference between entrepreneur and, intrapreneur, 1. An entrepreneur is an independence person who starts his, venture and bears full risk of his failure and enjoys the fruit of, his success whereas intrapreneur is partially independent and, is sponsored by the corporation in which he is working. He is, also not liable to bear the losses in case of his failure., 2. An entrepreneur raises the finance from various sources and, also guarantees their return whereas an intrapreneur does not, own responsibility to raise the capital or to return it., 3. An entrepreneur has no relation with any organisation, whereas an intrapreneur operates within the organisation, where he is working.
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FUNCTIONS OF AN ENTREPRENEUR, There has been a great deal of confusion and contradiction in, literature on the functions of an entrepreneur., FUNCTIONS, 1. Innovations: The process of innovations may be in the form, of:, a) Introduction of a new product., b) Use of new methods of production., c) Opening of a new market., d) The conquest of new source of supply of raw material., e) A new form of organisation.
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2. Risk-taking: Entrepreneur is an agent who buys means of, production at certain prices and sells them at uncertain prices., , The entrepreneur performs the function of reducing uncertainty in, his plan of investment and expansion of the enterprise., 3. Decision Maker: Entrepreneur as a decision maker describes, the following functions of an entrepreneur., a) The determination of objectives of an enterprise and the, change of those objectives as conditions required or made, advantageous,, b) The development of an organisation including efficient, relations with subordinates and all employees,
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c) Securing adequate financial resources,the relations with, existing and potential Investors,, d) The acquisition of efficient technological equipment and, the revision of it as new machinery appears,, e)The development of a market for the products and the, devising of new products to meet or anticipate consumer’s, demand,, f) The maintenance of good relations with public authorities, and with society at large.
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4. Organisation and Management: organisation and management of, the enterprise is the important functions of an entrepreneur., When the organisation grows bigger, the entrepreneur effectively, delegates authority and finds responsibility at various levels of, management. The network of decision making becomes more, complex., The functions of organisation and management includes:, a) Planning of an enterprise,, b) Co-ordination, administration and control,, c) Routine type of supervision.
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DISTINCTION BETWEEN AN, ENTREPRENEUR AND A MANAGER, ENTREPRENEURS, 1. Status: An entrepreneur is the, owner of his enterprise. He, makes his own investment and, owns his business., , 2. Target: The main target of an, entrepreneur is to start his, venture by setting up as a soletrader or firm or a company., , MANAGERS, 1. Status: A manager is just an, employee in the enterprise which, is owned and run by, entrepreneur., , 2. Target: The main goal or, motive of a manager is give his, services to an enterprise set up by, someone else i.e. an, entrepreneur.
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ENTREPRENEURS, , MANAGERS, , 3. Decision making: All of the, , 3. Decision making: While all, , policies and strategic decisions, like, those comprising of expansion, diversification, take-over etc are, taken by the entrepreneur., , 4.Rectification of wrong, decisions: The wrong decisions, taken by the entrepreneur may not, be rectificable and may result in, losses or even closure of the unit., , those managerial, operational, decisions which would have, impact on the short-and mediumterm results are taken by the, managers., , 4. Rectification of wrong, decisions: Whereas the wrong, decisions taken by the managers, can be amended and rectified by, the entrepreneur.
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ENTREPRENEURS, MANAGERS, 5. Innovations: An entrepreneur 5. Innovations: A manager is, innovates and exploits his, innovation commercially., , 6. Risk bearing: An, entrepreneur being the owner of, his unit undertakes all risks and, uncertainty of running his, enterprise., , 7. Skills: The skill expected from, an entrepreneur is in the form of, creativity, innovation, desire for, high achievement, intuition etc., , merely an officer or an executive, who is appointed for the promotion, of the unit., , 6. Risk bearing: A manager, doesn’t bear any risk because he is, paid fixed salary., , 7. Skills: Whereas manger depends, on public dealing abilities and, conceptual abilities.
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ENTREPRENEURS, , MANAGERS, , 8. Qualification: An entrepreneur, , 8. Qualification: On the other, , doesn’t need to have distinct degree, from a reputed university., , 9. Rewards: The reward of an, entrepreneur is the profit earned by, him., , hand, a manager now a days need, to possess degree in the stream of, management theory and practice., , 9. Rewards: A manager gets his, monthly salary as his reward for the, services rendered by him.
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TIPS TO BECOME A SUCCESSFUL, ENTREPRENEUR, 1., , Acquire sufficient and all-round knowledge about an enterprise you intend, to start., 2. Be conservative in calculating income and lavish in calculating expenditure., 3. Don’t expect quick and easy returns from your venture., 4. Be prepared for delegation of work when needed., 5. Take moderate risks; neither too high nor too low., 6. Plan systematically and march ahead step by step according to the plan to, achieve your goal., 7. Time management is necessary to maximum utilisation of your resources., 8. Collect maximum information about your competitor on continuous basis., 9. Don’t avoid or run away from problems., 10. Take the help of experts and experienced persons or rntrepreneur,when in, doubt.
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Conclusion, An entrepreneur performs various type of, functions. Growth of his enterprise depends, upon the way, he performs various functions, like innovation, risk-taking, decision-making,, organisation and management.
