Entrepreneurship

Entrepreneurship
The entrepreneurship is essentially a creative activity or it is an innovative function. - A Schumpeter

Entrepreneurship
Entrepreneurial Culture
Set of values , norms and traits that are conducive to the growth of entrepreneurship

Administrative Culture Corporate culture which focuses on existing

opportunities , organisational structures and control procedures

Barriers to Entrepreneurship
Regulatory barriers Economic and financial barriers Cultural and social barriers Personal Barriers Other

Barriers to Entrepreneurship
Regulatory barriers
Excessive, Complex, and Arbitrary Taxation Excessive Licensing and Regulatory Requirements
Protectionism Patents Red Tapism

Barriers to Entrepreneurship
Economic and financial barriers
Lack of seed capital Difficult access to finance Conservative mindset of financers

Barriers to Entrepreneurship
Cultural and social barriers
Social stigma Language barriers, discrimination, etc.

Barriers to Entrepreneurship
Personal Barriers
Lack of viable concept Lack of market knowledge Limited business, management and marketing skills

Barriers to Entrepreneurship
Other
Education System Lack of appropriate role models in entrepreneurship External environment
Unfavourable Market fluctuations Change in Government Policies Unreliable supply of inputs

Support to Entrepreneurship
Government
Increased and improved incentives for entrepreneurs Easy availability of capital. Encouraging the development of venture capital companies. Easing regulatory norms

Support to Entrepreneurship
Technical education & support Local business incubators Tax subsidy

Society
Encourage entrepreneurial talent

Features of Entrepreneurship
Innovation-Schumpeter Function of high achievement-McClelland
Doing things in a new and better way Decision making under uncertainty

Organisation building function-F. Harbison Function of group level pattern-F.W. Young Function of managerial skills & leadership-B.F. Hoselitz

Features of Entrepreneurship
Gap filling function-H. Liebenstein Function of status withdrawal-E.E. Hagen Function of social, political and economic structure-John H. Kunkel Function of religious beliefs-Max Weber

Model of Entrepreneurship
person

organisation

Entrepreneurship Entrepreneurship

task

environment

Model of Entrepreneurship
The Entrepreneurial Personality-person, skills, styles and motives The Entrepreneurial Task-ability to recognise and exploit opportunities The Entrepreneurial Environment-economic, sociocultural, politico-legal factors The Organisation Context-organisation structure, definition of work roles, culture, etc.

Theories of Entrepreneurship
The theories of entrepreneurship can be classified into three broad categories:
The economists view The sociologists view The psychologists view

Theories of Entrepreneurship
The economists view :
Advocated by G.F. Papanek & J.R. Harris Economic incentives are main drive for entrepreneurship

Theories of Entrepreneurship
The sociologists view:
Propose by Cochran, Weber, Hoselitz, Stokes, Hagen, etc. Social sanctions ,cultural values, religious beliefs, occupational requirements, and role expectations are factors responsible for entrepreneurial growth

Theories of Entrepreneurship
The psychologists view :
Suggested by McClelland, Schumpeter, Hagen, Kunkel, etc. Depends on individual psychological make up which in turn is based on factors like withdrawal of status, child rearing practices, social surroundings, etc.

Motivating Factors
Entrepreneurial Reasons Money Family business Independent living Fulfill desires Social prestige Others- education, creativity, provide employment to others

Motivating Factors
Compelling Reasons Unemployment Dissatisfaction with job Continue family business

Motivating Factors
Facilitating Reasons Previous knowledge in same line Technical knowledge Financial assistance Encouragement from family, friends, etc. Windfall gains Favourable market conditions Favourable Government policies

Questions?