The Entrepreneur

Entrepreneurship Development (HML 311)

Contents

Concept of Entrepreneur Traits (Characteristics) of Entrepreneurs Successful Entrepreneurs and their Characteristics Competencies and Skills of Entrepreneurs Entrepreneurial Behaviors Functions and Importance of Entrepreneurs Types of Entrepreneurs

Reasons for becoming an Entrepreneur

Myths about Entrepreneurs

Entrepreneur

Entrepreneur
Raises Capital Any individual that sees and acts upon an opportunity. Innovates This includes introducing a new product or service, Welcomes Change

identifying new markets, or putting a twist on an existing product, process or service. Also, includes the raising of capital, taking the risk and controlling the new venture. Embodies creativity, Motivated Acts upon aggressiveness, and determination. Opportunities By assembling various resources, s/he takes risks and creates a venture from an idea, hobby, or simply a dream
Takes Decisions Undertakes RISK

Plans

Entrepreneur

Person who undertakes the risk of a new venture Derived from French words,

Entre meaning between Prendre meaning to take Originally used to describe people who take on the risk between buyers and sellers or who undertake a task such as starting a new venture

An entrepreneur assembles and integrates all the resources needed, the business model,

the strategy, and the risk bearing ability to

transform an invention into a viable business

An entrepreneur is an agent who buys factors of production at certain prices in order to combine them into a product with a view to selling it at uncertain prices in future - Cantillon An economic agent who units all means of production land of one, the labor of another and the capital of yet another and thus produces a product. By selling the product in the market he pays rent on land, wages to labor, interest on capital and what remains is his profit - J. B. Say

Definition(s)

Activity 1: My Entrepreneur

Lets do it!!!

Select any one Entrepreneur from the business world and study his/her profile. Do remember to mention his/her achievements and specific entrepreneurial qualities

Factors that shape Entrepreneurs

Factors that shape Entrepreneurs

Traits, Qualities & Behavior

Skills & Competencies

Environment

Traits of Entrepreneurs

Traits (Characteristics) of Entrepreneurs

1. 2.

3.
4. 5.

6.
7. 8.

Mental Ability (Intelligence & Creativity) Technical Knowledge Administrative & Organizing Skills Vision & Clarity Business Secrecy Effective Communication Human Relations Ability PR Skills

Successful Entrepreneurs

Successful Entrepreneurs
1. 2.
1. 2. 3. 4. 5.

Global Perspective Entrepreneurial Spirit

Passion for the business Tenacity despite failure Product/Customer Focus Global Outlook High need achievement Willingness to accept change Ambition Capacity & willingness to assume risk Goal Orientation Commitment
Strategic Thinking Execution Intelligence

6.
7. 8. 9. 10.

3.
1. 2.

Entrepreneurial Design Capability

Successful Entrepreneurs
4.
1. 2. 3.

Personal values
Integrity Magnanimity Personal Responsibility

5.
1. 2. 3.

Entrepreneurial Values
Product/Customer Focus Employee Focus CSR Focus

6.
1. 2.

Skills & Competencies

Managerial Skills Leadership Skills Imagination & Creativity Interpersonal Skills Problem solving and Decision making Skills

3.
4. 5.

Activity 2

Lets do it!!!

Look for Entrepreneurs who possess these qualities and quote incidences from their lives that confirm these qualities. Get one example each for all the qualities.

Entrepreneurial Skills & Competencies

Entrepreneurial Competencies & Skills

Skills
Specific Operation Technology Communication Interpersonal relations Organizational ability Coordinating Team members Environmental Observation

Technical Skills

Business Management Skills

Planning Formulating Goals Decision-making Motivating Marketing Accounting Negotiation

Entrepreneurial Skills

Inner Discipline Risk-seeking Innovation Change-orientation Persistency Visionary

Entrepreneurial Competencies & Skills

Competencies

Meaning

Ability of an individual to perform a job properly. Set of defined behaviours that provide a structured guide enabling the identification, evaluation and development of the behaviours in individual employees Combination of knowledge, skills and behaviour used to improve performance; or the state or quality of being adequately or well qualified, having the ability to perform a specific role. For instance, management competency might include systems thinking and emotional intelligence, & skills in influence and negotiation.

Entrepreneurial Competencies & Skills

Competencies (Contd.)
Knowledge Personal Attributes Skills Abilities

Shaping Competencies

Experiences & Interactions Learning & Observation Formal Training & Education Resources

Activity 3
The Competency Framework

Lets do it!!!

Now this is a group activity. Form groups of four and identify any job profile. Once done, develop the competency framework for that profile.

Entrepreneurial Competencies & Skills

Competencies (Contd.)
Social Role & Social Concept Level Concern for high quality of work Assertiveness Self-confidence & Conviction

Knowledge & Skill Level

Finance/Cash Management Engineering Accounting Marketing Leadership Communication Human Relations PR Innovation & Creativity Networking & Team Building Decision making Ambiguity Tolerance Opportunity Identification Venture Evaluation Career Assessment Deal making Intuitive Thinking, etc.

Motives & Traits Level

Optimism Tolerance of ambiguity Locus of control Propensity to take risk Achievement values Task motivation Persistence Integrity

Entrepreneurial Competencies & Skills

Competencies (Contd.)

As listed by the EDII, Ahmedabad: 1.

2. 3. 4.

5.
6. 7. 8.

9.
10.

Initiative Sees and Acts on Opportunities Persistence Knowing Concern for High Quality of Work Commitment to Work Contract Efficiency Orientation Systematic Planning Problem solving-Observing the symptoms, diagnosing and curing Self-confidence

Entrepreneurial Competencies & Skills

Competencies (Contd.)

As listed by the EDI (Contd.): 11.

12. 13. 14.

15.

Assertiveness Persuasion Use of Influence Strategies Monitoring Concern for Employee Welfare

Entrepreneurial Behavior

Entrepreneurial Behavior

Concept of Behavior

Response of an individual to his/her external/internal stimuli Exhibited in the individuals actions B = f(I,ET) Ability

Determinants of Individual Behavior

Intellectual & Physical

Biographical Characteristics

Age, gender, race, religion, etc.

Learning

Entrepreneurial Behavior (Contd.)

Entrepreneurial Behavior

Attitudes & Values Creativity & Innovation Decision Making & Problem Solving Risk taking Motivation Social Responsibilities

Functions of an Entrepreneur

Functions of an Entrepreneur

Innovation Risk Taking Organization As per Peter Kilby: 1.

2.
3. 4. 5. 6. 7.

Perceiving market opportunities Gaining command over scarce resources Purchasing inputs Marketing products Dealing with bureaucrats Managing human relations within the firm Managing customer and supplier relations

Functions of an Entrepreneur (Contd.)

As per Peter Kilby (Contd.): 8.

9.
10. 11. 12. 13.

Managing finance Managing production Acquiring and overseeing assembly of the factory Industrial engineering Upgrading process and product Introducing new production techniques & products

Importance of an Entrepreneur

Importance of an Entrepreneur

Impact on Economy

Innovation Job creation Globalization

Impact on Society Impact on Larger Firms

Classification of Entrepreneurs

Types of Entrepreneurs
Business Technology Motivation Growth Stages in Development
First Generation Er.

Clarence Danhof
Innovating Er.

Business Er.

Technical Er.

Pure Er.

Growth Er.

Trading Er.

Nontechnical Er.

Induced Er.

Supergrowth Er.

Modern Er.

Imitating Er.

Industrial Er.

Professional Er.

Motivated Er.

Classical Er.

Fabian Er.

Corporate Er.

Spontaneous Er.

Drone Er.

Agricultural Er.

Reasons for becoming an Entrepreneur

Reasons for becoming an Entrepreneur

High Need Achievement
Proactive Risk Taking Propensity

High need for Independence & Autonomy

Tolerance for Ambiguity Traits Approach

Low need for Conformity

Innovation

Internal Locus of Control

Intuition

Reasons for becoming an Entrepreneur

Education & Experience Family Background Push/Pull Factors

Cultural Phenomenon

Environmental Approach

Marginal/ Displacement Approach

Reasons for becoming an Entrepreneur

Behavioral / Managerial Approach

Entrepreneurial Skills Managerial Skills

Myths about Entrepreneur

Myths About Entrepreneur

Entrepreneurs are motivated primarily by money

Entrepreneurs are gamblers

Entrepreneurs should be young and energetic

Entrepreneurs are born not made

Common Myths

Entrepreneurs love the spotlight