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What is Entrepreneurship
➢ Entrepreneurship is the process of identifying
and starting a new business venture, sourcing and
organizing the required resources, while taking
both the risks and rewards associated with the
venture.
➢ It involves creating wealth by bringing together
resources in new ways to start and operate an
enterprise.

➢ Entrepreneurship is a purposeful activity of an

individual or a group of associated individuals,
undertaken to initiate, maintain or enhance profit
by production

WHO IS ENTREPRENEUR?
➢ An entrepreneur is a person who takes risks of
setting up his/her own venture For perceived
rewards.
➢ An entrepreneur is any person who creates and
develops a business idea and takes the risk of
setting up an enterprise to produce a product or
service which satisfies customer needs.
Entrepreneur refers to the person and
entrepreneurship defines the process
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An entrepreneur is an individual
who:
❖ has the ability to identify and pursue a
business opportunity;
❖ undertakes a business venture;
❖ raises the capital to finance it;
❖ gathers the necessary physical, financial
and human resources needed to operate the
business venture;
❖ sets goals for him/herself and others;
❖ initiates appropriate action to ensure
success; and
❖ Assumes all or a major portion of the
risk!

Essential Qualities for Successful

Entrepreneurs
1.Need for achievement:
✓ Entrepreneurs have a strong desire to be a
winner
2.Perseverance:
✓ Entrepreneurs have a quality of stick- to it
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3.Moderate risk taker:

✓ Entrepreneurs prefer a middle of The road
strategy when they analyze A risky
problem

4.Ability to find and explore opportunity:

✓ Entrepreneurs are alert to opportunities.
They seize and convert them to their
advantage

5.Analytical ability:
✓ Entrepreneurs are unaffected by
personal likes and dislikes while
approaching problems
✓
6.Using feedback:
✓ Entrepreneurs consider it important to
know how are they doing, when they
work on a goal or a task

7.Facing uncertainty:
✓ Entrepreneurs welcome tackling an
unfamiliar but interesting situation.
8,Independence
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:
✓ Entrepreneurs dislike working for
others.
9.Flexibility:
✓ Entrepreneurs are flexible in their
decisions.

10.Planner:
✓ Entrepreneurs think ahead, plan for future
and then work to make it come true.

11.Interpersonal skills:
✓ Entrepreneurs are comfortable while
dealing with people at all levels.

12.Motivator:
Entrepreneurs can influence others

13:Stress taker:
✓ Entrepreneurs are capable of working for
long hours And tackling different problems
at the same time

14.Positive self concept:

✓ Entrepreneurs are aware of themselves
15.Orientation to future:
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✓ Entrepreneurs tend to think ahead

Entrepreneurs; are people that

notice opportunities and take the
initiative to mobilize resources to
make new goods and services.
Not every employee has the ability to
become a successful intrapreneur. It
takes well-developed strategic action,
teamwork and communication
abilities
Vs
Entrapreneur is Someone in an
existing organization who turns new
ideas into profitable realities
Intrapreneurs often become
entrepreneurs.

Types of Entrepreneurs
1.According to the type of Business.
•Business Entrepreneurs: who start business
units after developing ideas for new
product/ services.
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•Trading Entrepreneurs: who undertake

buying and selling of goods, but not engage
in manufacturing .
•Corporate Entrepreneurs: Who Establish
and manage Corporate Form
Of organization which have separate legal
existence.
D: Agriculture Entrepreneurs: Who
undertake activities like raising and
marketing of crops, Fertilizers and other
allied activities.

2. On the Basis of Stages of development

•i. First generation Entrepreneurs: who do
not possess any Entrepreneurial
Background. They start industry by their
own innovative skills .
•ii. Second Generation Entrepreneurs: who
inherit the family business and pass to
next Generation.
•iii.Classic entrepreneurs: who aims to
maximize his economic returns at a level
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Consistent with the survival of the unit with

or without an element of growth.

3. On the Basis of Motivation

•i. pure entrepreneurs: who are basically
Motivated to become entrepreneurs for
their personal satisfaction ,ego etc.
•ii. Induced Entrepreneurs: who are induced
to take up entrepreneurial role by the
assistance and policy of government
including incentives, subsidies etc.
4. on the Basis of Technology
•i. Technical entrepreneurs: who are task
oriented and craftsman, they prefer doing
to thinking .
•ii. Non-Technical Entrepreneurs: who are
not concerned with technical side , but
rather with marketing and promotion.
•iii. Professional Entrepreneurs: who start
business unit, but later sell the running
business and start a new unit later.
5. on the Basis of capital Ownership
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•i. private entrepreneurs: individual or group

set up enterprise , arrange finance, share
risk etc.
•ii.State entrepreneurs. Means the trading or
industrial venture undertaken by the state
or the government it self.
•iii. Joint entrepreneurs: the combination of
private and government entrepreneurs.
6. on the Basis of Gender and Age.
•Man Entrepreneurs.
•Women Entrepreneurs.
•Young Entrepreneurs
•Old Entrepreneurs
•Middle-Aged Entrepreneurs
7. on the Basis of Area
•i. Urban entrepreneurs.
•Rural Entrepreneurs

8. on the Basis of Scale.

•i. large Scale entrepreneurs.
•ii. Medium scale entrepreneurs.
•iii. Small scale entrepreneurs
•Iv. Tiny scale entreprenurs
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9. other Classifications
•i. Spiritual Entrepreneur
•ii. Social Entrepreneurs
•iii. Edupreneurs.

Entrepreneurial Skills
•Skills needed by successful entrepreneurs
are:
•1.Communication Skills(possessing the
ability to read, write and speaking in an
understandable, accurate and professional
manner).
•2. Human relation Skills:(the ability to build
and maintain positive relationships,
working well with others)
3.Math skills (knowledge of basic arithmetic
and business math skills such as calculating
profit.)
•4.problem-solving and decision making
skills (the ability to assess situation and
make good decision)
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•5.Technical Skills (knowledge of computers

and how to use them productively).
6.Basic Business Skill(Knowledge and
understanding of the economy and business
Functions such as marketing and management)

What are the competencies of

entrepreneurs, think on 10 most
competencies that entrepreneurs
should have to succeed in business
start up?

Competencies are key skills needed by employees

to do their jobs well. A competent employee is more
productive and adds better value to the workplace
1. Opportunity Seeking,
2. Persistence,
3. Commitment to Work Contract,
4. Risk-taking,
5. Demand for Efficiency and Quality,
6. Goal Setting,
7. Information Seeking,
8. Systematic Planning and Monitoring
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9. Persuasion and Networking,

10.Self-Confidence.

Opportunity-seeking
• An opportunity is a favourable set of
circumstances that creates a need for a
new product, service or business. It
includes access to credit, working
premises, education, trainings etc. An
entrepreneur always seeks out and
identifies opportunities. He/she seizes an
opportunity and converts it into a realistic
and achievable goal or plan.
Persevering: An entrepreneur always makes
concerted efforts towards the successful
completion of a goal. An entrepreneur
perseveres and is undeterred by uncertainties,
risks, obstacles, or difficulties which could
challenge the achievement of the ultimate goal.
Risk Taking
◦ The best entrepreneurs tend to:-
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◦ Set their own objectives where there is

moderate risk of failure and take calculated
risks
◦ Gain satisfaction from completing a job well
◦ Not be afraid of public opinion, scepticism
◦ Take responsibility for their own actions
• Importance of risk-taking
◦ Build self confidence
◦ Create a feeling of leadership
◦ Create strong motivation to complete a job
well
entrepreneur needs to consider the
following issues before taking a risk.
•Is the goal set realistic?
•How big is the potential reward for this
risk?
•How big is the potential loss?
• What is the probability of failure with this
risk?
• How can I minimise the potential negative
effects of taking this risk?
◦ Examples: starting a business based on market
study, share, forming cooperatives or
associations etc
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What kind of support or resources do I

need to have in place to help minimize or
prevent potential negative effects from this
risk?
• What further information do I need before
taking this risk?
•What past experiences do I need to review
in order to inform the strategy for taking
this risk?
Demanding for efficiency and
quality

•Efficiency
• Being efficientmeans producing results
with little wasted effort.
• Quality refers to:
• The ongoing process of education,
communication, evaluation and constant
improvement of goods/services to meet
the customer’s need in a way that
exceeds the customer’s expectations;
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Benefits of Quality
•Reduction of waste:
•Cost-effectiveness:
•An increase in market share:
•Better profitability:
•Social responsibility:
•Reputation: Quality of goodsand services
improves the reputation of the business
for competition in the market and
growth.
Time management
•Time management refers to a range of
skills, tools, and techniques used to
manage time when accomplishing specific
tasks, projects and goals. Time
management is about getting more value
out of your time and using it to improve
the quality of your life.
• Initially time management referred to just
business or work activities, but
eventually the term broadened to include
personal activitie
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Time Management Activities

The participants will be grouped into
three/four
1.One group will list time-management
challenges/factors that waste time
(experiential)
2.The other group will list some ways to
overcome these challenges/time
management strategies you can think of
(experiential)
Factors that waste time
•Poor planning, lack of contingency plan
•Lack of self-confidence about how to
accomplish task at hand
•Socialising on the job
•Cluttered work space
•Telephone interruption; too much time
on telephone
•Absence from, or being late to the work
place

Postponing jobs or assignments

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•Extended lunches or breaks

•Procrastination
•Poor organisation
•Difficulty with task prioritisation - not
knowing which tasks to focus on in what
order
•Not setting /sticking to priorities
•Inefficient delegation, or failure to delegate
duties to others
Information-seeking
•Successful entrepreneurs do not rely on
guesswork and do not rely on others for
information. Instead, they spend time
collecting information about their
customers, competitors, suppliers,
relevant technology and markets.
Gathering relevant information is
important to ensure that the
entrepreneur makes well informed
decisions.
Types of information that are
important for business
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• An entrepreneur should have sufficient

information and seek additional
information on various factors that are
relevant to his/her intended new business
activity. The different types of information
required are indicated below.

Market
◦ Market segments for low, middle and high
income groups
◦ Competitors and similar products
◦ Sales forecast
◦ Strategic business location
•Supply
◦Machines/equipment
◦Raw materials
◦Other assets like office furniture
◦ List of suppliers and prices
Infrastructure
◦Business premises available
◦Size of premises and rooms
◦Power, water & other facilities
◦Transport facilities
•Business Management
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◦Organisational form of the business

◦Needs in accounting & accounting courses
◦ Availability of qualified personnel
◦ Training facilities for staff and owner
Finance
• Micro-finance loan conditions
• Government financial facilities
• Legislation
• Commercial code
• Business registration process
• Tax obligations
• Tender procedures
Goal Setting
•A Goal - is a general direction, or long-
term aim that you want to accomplish.
It is notspecific enough to be measured.
It is large in scope, not necessarily time-
bound, and is something that people
strive for by meeting certain objectives
which will hopefully add up to
eventually achieving the goal.
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Objectives - are specific and measurable.

They can be output objectives, or they
can be attitudinal or behavioural. But
most of all, they can be measured. They
are concise. They are specific. Think of
the word object.” You can touch it, it’s
there, it’s actual, and it’s finite. An
entrepreneur must have a goal and an
objective which is specific, measurable,
attainable relevant, and time bound
(SMART)
Planning

•Planning is making a decision about the

future in terms of what to do, when to
do, where to do, how to do, by whom
to do and using what resources. An
effective entrepreneur therefore usually
plans his/her activities and accounts as
best as they can for unexpected
eventualities.
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• Exercise: The facilitator will ask the

participants whether they have a plan
for their businesses and encourage
those who do to share their
experience.

Persuasion and networking

•Persuasion is
◦a way of convincing someone to get
something or make a decision in your favour
◦Inducing or taking a course of action or
embracing a point of view by means of
argument, reasoning, or entreaty; to
convince
◦to succeed in causing a person to do or
consent to something; to win someone over,
as by reasoning or personal forcefulness
◦to cause to believe; to induce, urge, or prevail
upon successfully
Importance of Persuasion in
Business
•We purchase goods from people
• We sell goods to people
• We need support from people
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• We work with people.

• Without people be they suppliers,
workers, and most importantly
customers, there is no business.

Importance of Persuasion in
Business
•We purchase goods from people
• We sell goods to people
• We need support from people
• We work with people.
• Without people be they suppliers,
workers, and most importantly
customers, there is no business.

Building self-confidence
•Self-confidence is the state of being certain that
a chosen course of action is the best or most
effective given the circumstances. Confidence
can be described as a subjective, emotional
state of mind, but is also represented
statistically as a confidence level within which
one may be certain that a hypothesis will
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either be rejected or deemed plausible. Self-

confidence is having confidence in oneself
when considering a capability. Overconfidence
is having unmerited confidence-believing
something or someone is capable when they
are not.
Characteristics of a self-confident
person
•A person with self-confidence may exhibit
some of the following characteristics:
• Risk-taking: willing to take risks and go the
extra mile to achieve better things.
• Independent: entrepreneurs like to be their
own masters and want to be responsible
for their own decisions.
• Perseverance: Ability to endure and survive
setbacks and continue to build confidence
in whatever you do in your business.
Characteristics of a self-
confident person Cont…
•Able to learn to live with failure.
Entrepreneurs are going to make
mistakes. They are human. But they
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learn from these mistakes and then

move on.
• Ability to find happiness and
contentment in work.
• Doing what you believe to be right,
even if others mock or criticise you for
it.
• Admitting mistakes and learning from
them

Entrepreneurial Skills
•Skills needed by successful entrepreneurs
are:
•1.Communication Skills(possessing the
ability to read, write and speaking in an
understandable, accurate and
professional manner).
•2. Human relation Skills:(the ability to
build and maintain positive relationships,
working well with others)
Continue.
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•3.Math skills (knowledge of basic

arithmetic and business math skills such
as calculating profit.)
•4.problem-solving and decision making
skills (the ability to assess situation and
make good decision)
•5. Technical Skills (knowledge of
computers and how to use them
productively).
6.Basic Business Skill(Knowledge and
understanding of the economy and
business Functions such as marketing and
management)

Common Myths About

Entrepreneurs
•There are many misconceptions about who
entrepreneurs are and what motivates them to
launch firms to develop their ideas. Let's look at
the most common myths and the realities about
entrepreneurs:
1.Entrepreneurs are born, not made: This
myth is based on the mistaken belief that some
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people are genetically predisposed to be

entrepreneurs. The consensus of many studies
is that no one is “born” to be an entrepreneur;
everyone has the potential to become one
Entrepreneurs are gamblers: A second myth
about entrepreneurs is that they are gamblers
and take big risks. The truth is, entrepreneurs
are usually moderate risk takers, as are most
people.
1)Myth 3: Entrepreneurs are motivated
primarily by money. It is naïve to think that
entrepreneurs don’t seek financial rewards.
however, money is rarely the primary reason
entrepreneurs start new firms and persevere.
◦In fact, some entrepreneurs warn that the pursuit
of money can be distracting
Myth 4: Entrepreneurs should be young
and energetic. Entrepreneurial activity
is fairly evenly spread out over age ranges.
2)Myth 5: Entrepreneurs love the
spotlight. Indeed, some entrepreneurs
are flamboyant; however, the vast
majority of them do not attract public
attention.
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ROLE OF ENTREPRENEUR
IN
ECONOMIC DEVELPOMENT

Entrepreneurship is the dynamic need of

a developing nation and sustains the
process of economic development in
the following ways:
➢Employment generation
➢National income
➢Dispersal of Economic power
➢Balanced Regional development

➢Reducing unrest and social tension

amongst youth
➢Innovations in enterprises
➢Improvement in living standards
➢Economic independence