WHAT DO YOU
UNDERSTAND BY
THE TERM
ENTREPRENEUR?
Concept of Entrepreneur
◦ Risk Bearer
◦ Organiser
◦ Innovator
What is an Entrepreneur?
◦ One who creates a new business in the face of risk and
uncertainty for the purpose of achieving profit and
growth by identifying and assembling the necessary
resources to capitalize on them.
Need /Importance of Entrepreneurship
Economic Growth: Entrepreneurs drive economic development by creating new
businesses, which leads to job creation and stimulates economic activity.
Innovation: They introduce new products, services, and technologies, which can
improve quality of life and increase efficiency across various industries.
Employment Opportunities: By starting and growing businesses,
entrepreneurs provide jobs and can help reduce unemployment rates.
Market Competition: Entrepreneurs foster competition, which can lead to better
products and services and lower prices for consumers.
Social Impact: Many entrepreneurs focus on solving social problems, which can
lead to positive changes in communities and improve societal well-being.
Personal Fulfillment: Entrepreneurship allows individuals to pursue their
passions, turn their ideas into reality, and potentially achieve personal and
financial independence.
Resilience: Entrepreneurs often drive economic resilience by diversifying
markets and creating businesses that can adapt to changing conditions.
Global Impact: In a globalized world, entrepreneurs can contribute to
international trade, cultural exchange, and global problem-solving.
Scope of Entrepreneurship
•Global and International Markets: Entrepreneurs can operate on a global
scale, exporting goods and services, entering new international markets, and
leveraging cross-border opportunities.
•Sustainable and Green Entrepreneurship: This area focuses on creating
businesses that promote sustainability, such as renewable energy, eco-friendly
products, and waste reduction technologies.
•Entertainment and Creative Industries: Entrepreneurship in the arts, media,
fashion, and entertainment industries offers opportunities for creative individuals
to innovate and monetize their talents.
•Healthcare and Biotech: Entrepreneurs in this sector work on developing new
medical technologies, pharmaceuticals, health services, and solutions that
improve patient care and public health.
•Agribusiness and Food Tech: This includes innovations in agriculture, food
production, and distribution, focusing on sustainability, efficiency, and meeting the
growing global demand for food.
Scope of Entrepreneurship
•Business Creation and Development: Entrepreneurs create new
businesses, ranging from small startups to large enterprises, across diverse
industries such as technology, healthcare, education, retail, and more.
•Innovation and Technology: Entrepreneurs are often at the forefront of
technological advancements, developing new products, services, and solutions
that can revolutionize industries and improve daily life.
•Social Entrepreneurship: This involves creating businesses that address
social, environmental, or community issues. Social entrepreneurs aim to make
a positive impact while also achieving financial sustainability.
•Franchise and Licensing Opportunities: Entrepreneurs can expand existing
businesses through franchising or licensing, allowing for rapid growth and
market penetration with reduced risk.
•E-commerce and Digital Platforms: The rise of the internet and digital
technologies has expanded opportunities for entrepreneurship in online
marketplaces, digital services, app development, and more.
Entrepreneurial
Competencies
•Opportunity Recognition: The ability to identify and assess business
opportunities in the market, even when they are not immediately obvious.
•Risk Management: Competence in assessing risks, making calculated
decisions, and taking strategic actions to mitigate potential downsides.
•Innovation and Creativity: The capacity to generate new ideas, think
outside the box, and create unique solutions to problems.
•Resource Management: Effective utilization of resources, including time,
money, and people, to achieve business objectives.
•Planning and Goal Setting: Ability to set clear, achievable goals and
develop strategic plans to reach them.
•Financial Literacy: Understanding financial principles, including budgeting,
financial forecasting, and managing cash flow.
Entrepreneurial
Competencies
•Financial Literacy: Understanding financial principles, including budgeting,
financial forecasting, and managing cash flow.
•Networking and Relationship Building: Skills in building and maintaining
relationships with customers, investors, partners, and other stakeholders.
•Leadership and Team Management: Ability to inspire, motivate, and
manage a team towards achieving common goals.
•Customer Focus: A strong commitment to understanding customer needs,
delivering value, and ensuring high levels of customer satisfaction.
•Adaptability and Flexibility: Being able to adjust strategies, operations, and
products in response to changing market conditions or unexpected challenges.
•Negotiation Skills: Competence in negotiating terms, deals, and contracts
that are favorable for the business.
•Problem-Solving Skills: Ability to quickly and effectively solve problems,
often under pressure.
Entrepreneurial Traits
•Passion: A strong drive and enthusiasm for the business, which fuels
perseverance and commitment.
•Resilience: The ability to bounce back from setbacks, failures, and
challenges without losing motivation.
•Self-Motivation: Being driven to achieve goals without the need for
external encouragement.
•Confidence: Trust in one’s abilities, decisions, and the potential for
success.
•Vision: Having a clear idea of what the business should achieve in the
long-term and the ability to inspire others with this vision.
•Decisiveness: The trait of making decisions promptly and confidently,
even when faced with uncertainty.
Entrepreneurial Traits
•Persistence: Continuously striving towards goals despite obstacles,
setbacks, or slow progress.
•Curiosity: A desire to continuously learn, explore new ideas, and stay
updated with industry trends.
•Independence: A preference for taking initiative and making decisions
without relying heavily on others.
•Ethical and Integrity: Maintaining honesty, ethical standards, and
integrity in all business dealings.
•Proactiveness: Taking initiative and acting in anticipation of future
problems, needs, or changes.
•Tolerance for Ambiguity: Comfort with uncertainty and the ability to
make decisions with incomplete information.
Factors affecting
entrepreneurial development
Entrepreneurial development is influenced by a wide range of
factors that can either facilitate or hinder the growth and success
of entrepreneurs. These factors can be broadly categorized into
personal, social, economic, political, and environmental influences.
•Personal Factors
•Social Factors
•Economic Factors
•Political and Legal Factors
•Technological Factors
•Environmental Factors
•Psychological Factors
•Global Factors
1. Personal Factors
•Motivation and Ambition: The personal drive to achieve and
succeed is a crucial factor in entrepreneurial development.
•Skills and Knowledge: Competencies such as business acumen,
technical skills, and industry-specific knowledge play a critical role.
•Risk-Taking Ability: A willingness to take calculated risks is
essential for entrepreneurial success.
•Innovation and Creativity: Personal creativity and the ability to
innovate are central to developing unique business ideas.
•Experience: Previous work or business experience can provide
valuable insights and increase the likelihood of success.
2. Social Factors
•Cultural Attitudes: Societal views on entrepreneurship, including
how risk-taking and business ownership are perceived, can influence
entrepreneurial activities.
•Family Background: Family support, business tradition, and
financial backing from family members can significantly impact an
entrepreneur’s journey.
•Social Networks: Access to networks that offer mentorship,
advice, and connections can facilitate business growth.
•Education and Training: Quality education and training programs
that emphasize entrepreneurship can develop skills and inspire
potential entrepreneurs.
3. Economic Factors
•Access to Capital: Availability of funding through banks, venture
capitalists, angel investors, and other financial institutions is critical.
•Economic Stability: A stable economy provides a conducive
environment for business growth and development.
•Market Conditions: Favorable market conditions, including demand
for new products or services, are important for business success.
•Infrastructure: Access to infrastructure like transportation,
communication, and technology affects the ease of doing business.
4. Political and Legal Factors
•Government Policies: Supportive government policies, such as tax
incentives, subsidies, and grants, can encourage entrepreneurial
activities.
•Regulatory Environment: A clear, transparent, and business-
friendly regulatory framework makes it easier to start and run a
business.
•Ease of Doing Business: Factors such as the simplicity of
registration processes, protection of property rights, and efficient legal
systems influence entrepreneurship.
•Political Stability: A stable political environment fosters confidence
in long-term business investments.
5. Technological Factors
•Access to Technology: Availability and accessibility of modern
technology can significantly enhance business operations and
competitiveness.
•Digital Infrastructure: A robust digital infrastructure allows for
innovation in e-commerce, online marketing, and digital solutions.
•Innovation Ecosystem: Support from tech hubs, incubators, and
accelerators can spur entrepreneurial development
6. Environmental Factors
•Market Accessibility: Proximity to customers, suppliers, and
markets can affect business location and growth decisions.
•Natural Resources: Availability of resources, such as raw
materials, energy, and land, can impact certain types of
businesses.
•Environmental Regulations: Adherence to environmental laws
and sustainability practices can influence business operations.
[Link] Factors
•Self-Efficacy: Belief in one’s ability to succeed influences the
willingness to engage in entrepreneurial activities.
•Resilience: The ability to handle setbacks and persist in the face
of challenges is crucial for long-term success.
•Locus of Control: Entrepreneurs who believe they can control
their own destiny are more likely to take initiative and persevere.
8. Global Factors
•Globalization: Access to international markets and global supply
chains can expand business opportunities.
•Competition: Global competition can drive innovation but also
presents challenges for local entrepreneurs.
•Trade Policies: International trade agreements and tariffs can
impact business strategies and market access.
