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Any individual has three career options:
To work for someone else
To be self employed in a profession
To be an entrepreneur.
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As today, his two and a half year old start up-CashUrDrive is not only Indias first On-Wheel
Advertising Company but also adorns a longstanding brigade of clients in its kitty including:
Adidas, Lays, Subway, Coca Cola, Levis, PizzaHut, Pepsi, Reliance Mutual Fund, RelianceCommunication, Reliance Net Connect, Tata
Indicom, Tata DoCoMo and NACO(NationalAIDS Control Organization).
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An engineer from Indian Institute of Technology,Guwahati, Raghu, unlike many buddingentrepreneurs had never earmarked a plan onpapers to start up his own venture.
In fact the story behind his move is quiteinteresting. As Raghu fondly, recollects The funnyslogan behind trucks and vinyl stickers on police
jeeps caught my attention as I couldnt take my
eyes off it. And then came the idea to charge advertisers to
put their messages on privately owned vehiclesand thus I started my website.
Little wonder, what Raghu might tag off as a
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Gifted at creating business concepts that isunique his brainwave-CASH UR DRIVE isdiscovered by chance.
But the thing that has worked wonders for him isthat CashUrDrive generates a typical Win-winsituation for all three- Advertiser, car owner andthe agency itself.
As it not only gives the advertiser the complete
package to target the Indian demographics butalso caters as a perfect solution for rising fuel costand inflation rates in India for the car owners
Also, CASHurDRIVE promotes eco friendly
methods of advertising.
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Raghu is in his full gears. As he avers, I amtrying hard to create a niche in this new andexciting industry. His agency has launched a hostof value-added services for its customers.
Right from joining hands with HPCL/BPCL forproviding fuel coupons to the car owners, to avehicle tracking system for its clients, acentralized printing of stickers in Bangalore he is
leaving no stone unturned to make this conceptpopular.
The reason for his aggressive push also stemsfrom the increasing competition from radio taxis
and buses using the same mode of advertisementin the countr . .
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However, an eternal optimist Raghu is all qualmsand is bull headed towards his goal.
So much so, that his team members also sufferfrom one common syndrome namely- BSD.Wondering, what on earth it stands for?
Well like Raghu they are B-Brilliant, S-Smart andD- Desperate to make things work!
This man surely knows how to transform yourfuel-guzzling car into a revenue earner for sure.
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In simple terms we use the termentrepreneur to describe men and womenwho set up and manage their own
business.
The process involved in this is calledEntrepreneurship.
The output of this process is establishmentof Enterprise.
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ENTREPRENEUR ENTREPRENEURSHIP ENTERPRISE
PERSON PROCESS OBJECT
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13th Century :
The earliest definition found was from the13th century, where we learn the word?
Root.The origin of the English word
entrepreneur comes from the French wordentreprendre, which can be translated tomean ?
To do something?
or
To undertake?
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16th Century:
In the 16th century, there was a firstmention of the word business .
Therefore, we find entrepreneur defined assomeone who undertakes a business
venture?
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17th Century:Entrepreneurship asRisk Bearing
The first academic usage ofthe term was by economistRichard Cantillon in 1730.
For Cantillion, The bearing
of risk ? Engaging in business
without an assurance of theprofits that will be derived ?
is the distinguishing feature ofan entrepreneur.
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The role of the entrepreneur is one of Cantillon'sgreat contributions to economic understanding.
He speaks of the entrepreneur in the classicsense of the undertaker of great businessadventures, but Cantillon also has a theoreticaldistinction between those who work for a fixedreturn or wages and those who face uncertainreturns.
This includes farmers. These entrepreneurspurchase inputs at a given price to produce andsell later at an uncertain price.
In the pursuit of profit, the entrepreneur must
bear risks as he faces and also the uncertainty of
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The price of these products willdepend partly on the weather,partly on demand;
Example if corn is abundantrelative to consumption it willbe dirt cheap, if there is scarcity
it will be dear. Who can foresee the number of
births and deaths of the peoplein a State in the course of theyear?
Who can foresee the increaseor reduction of expense thatmay come about in thefamilies?
And yet the price of theFarmer's products depends
naturally upon theseunforeseen circumstances, and
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Entrepreneurship as Uncertainty Bearing:
Frank knights describes entrepreneur as thebearer of uncertainty.
Uncertainty is defined as a risk which cannotbe insured and is incalculable.
He thus draws a distinction between ordinaryrisk and uncertainty.
He describes entrepreneur as a recipient ofpure profits.
Pure profits with regard to entrepreneurship isbearing the cost of uncertainty.
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Risk
Ambiguity
True Uncertainty or Knightian
Uncertainty
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18th Century: Entrepreneurship as
CoordinationJean Baptiste Say associates
entrepreneur with the functions oforganising, coordinating and supervising.
Say broadened the definition ofentrepreneur to include the concept of
combining factors of production.
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Entrepreneur
Capital
Land
Labour
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Production of the Product
Phase 2
Sells the product in the market
Phase 3
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Rent PersonA
Interest PersonB
Wages PersonC
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Joseph Schumpeter (1934): In Schumpetersview an entrepreneur is a person who is willingand able to convert a new idea or invention into asuccessful innovation.
Schumpeter added the concept of innovation tothe theory of entrepreneurship.
For Schumpeter the entrepreneur is the bearerofthe mechanism forchange.
Entrepreneurship is defined as carrying out ofnew combinations we call "enterprise;theindividuals whose function is to carry them outare called entrepreneurs.
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For Schumpeter, entrepreneurship resulted in newproducts.
Schumpeter's initial example of this was thecombination of a steam engine and then current
wagon making technologies to produce thehorseless carriage.
It did not immediately replace the horse drawncarriage, but in time, incremental improvements
which reduced the cost and improved thetechnology led to the complete practicalreplacement of beast drawn vehicles in moderntransportation.
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The entrepreneur is the innovator who implements changewithin markets through carrying out new combinations.
The carrying out of new combinations can take several forms:
1) The introduction of a new product2) The introduction of a new method of production.3) The opening of a new market (Foreign markets for Ayurvedicproducts)
4) The conquest of a new source of supply of raw materials or
parts,5) The carrying out of the some new organization of any industry.
Schumpeter equated entrepreneurship with the concept ofinnovation applied to a business context.
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In India, where two-wheelers represent the mostcommon transportation means, Tata Motors sawthe need to come up with a safer kind oftransportation.
In addition to this safety issue, personal transportis also problematic because of the rare availabilityof public transportation .
Therefore, Tata Motors introduced the Peoples
Car, called the Nano. This disruptive productinnovation will surely have significant effects on
the small-car segment.
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Casson had 5 arguments for the entrepreneur:
Entrepreneurship appears as a personal qualitywhich enables certain individuals to makedecisions with far reaching consequences.
The entrepreneur has better or at least morerelevant information than others.
It is assumed that entrepreneurs are motivated byself interest.
The entrepreneur believes that he is right whileothers are wrong.
The entrepreneur often has to create an institutionto make markets between himself and othertransactors.
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He defined entrepreneurship as therelentless pursuit ofopportunity
Moreover he believed in an underlyingprocess in entrepreneurship that starts withidentification of opportunity and ends withharvesting the fruits ofones labours.
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Gartner (1988); The creation of new organizations.
The Entrepreneurship Center at Miami University ofOhio has an interesting definition of entrepreneurship:
"Entrepreneurship is the process of identifying,developing, and bringing a vision to life. The visionmay be an innovative idea, an opportunity, or simply abetter way to do something. The end result of thisprocess is the creation of a new venture, formed underconditions of risk and considerable uncertainty."
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The entrepreneurial process as involving all
functions, activities, and actions associatedwith the perceiving of opportunities andcreation of organizations to pursue them.
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John Stuart Mill describes the entrepreneur assomeone who assumes not only the risk of abusiness venture (as a capitalist) but also themanagement of the business venture.
It is this addition of a managementcomponent that emphasizes the importance
of entrepreneurship by tying the resourcecomponent (from Say) and managementcomponent (from Mill) together.
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Entrepreneurship is the process of starting,establishing and expanding an enterprise thatproduces and markets goods or services.
It is an act performed by an entrepreneurwhere in he or she tries to find opportunitiesand then derives benefits from them.
Entrepreneurship is the process by which
knowledge is converted in to products andservices.
In other words entrepreneurship is a processby which opportunities to create future goods
and services are discovered evaluated and
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The term entrepreneurship refers to the functionsperformed by an entrepreneur. It is the processinvolving various actions to be undertaken by theentrepreneur in establishing a new enterprise.In fact, what an entrepreneur does is regarded as
entrepreneurship. Thus entrepreneurship can beviewed as a function of: (1) identifying and using the opportunities that exist in
the market; (2)converting the ideas into action;
(3)undertaking promotional activities to launch anenterprise; (4) striving for excellence in his/her field of work; (5) bearing the risk and uncertainties involved, and (6) Harmonizing
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Process of creating something new
and assuming the risk and reward.-Robert D Hisrich
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An entrepreneur is an individual who acceptsfinancial risks and undertakes new businessventure.
The word derives from the French "entre" (toenter) and "prendre" (to take), and in ageneral sense applies to any person starting a
new project or trying a new opportunity.
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It provides numerousopportunities for growth andself development.
Monetary rewards are more
An entrepreneur has thepower of decision making
Rewards of working onones own are immenselysatisfying.
It provides numerousopportunities for selfexpression and realization
of ones passion for doingsomething new anddifferent.
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The entrepreneur alsocontributes to thedevelopment of communityas he/she generatesemployment for others.
Entrepreneurs initiate and
constitute change instructure of business andsociety.
In India whereunemployment hasbecome a general problem
entrepreneurship can beeyed as a tool for incomegeneration andemployment.
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Identification and evaluation ofopportunity.
Development of business plan.
Determination of required resources.
Establishment and Management ofthe resulting enterprise.
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IDENTIFY AN
OPPORTUNITY
ESTABLISH
Vision
PERSUADEOTHERS
GATHER
RESOURCES
CREATE NEWVENTURE PRODUCT
OR MARKET
CHANGE/ADAPT
WITH TIME
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Creativity
Innovation
Dynamism
Leadership Teambuilding
Need for Achievement
Problem Solving
Goal Orientation
Risk taking and decision making ability
Commitment
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Time Management
Problem solving
Flexibility
Vision Self motivation
Persistence
Technical Knowledge
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Capital
Labor
Raw Material
Economic
Barriers
SocialPersonalNonEconomic
Barriers
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Social
Norms
Practical
Values
Emotional
Blocks
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Lack ofsustained
motivation
Unclear orambiguous
ideas
Lack ofvision and
clearperception
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Uncertainty of income
Risk of losing your entire investment
Long hours and hard work
Lower quality of life until the business getsestablished.
High levels of stress
Complete responsibility
Discouragement
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EDUCATION, TRAINING &
EXPERIENCEFamily & Other Support Financial Conditions
Background Factors
Need for
Achievement
Motivational Factors
Business
Personal
Rewards
Recognition Social Status
Government
Policies
Financial
Assistance
Factors of
productionSupport AGENCIES
Economic Factors
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Group 1: A business needed desperately inyour town
Group 2: A business that involves exports to
another country.Group3: A home based business
Group4:A business that can be started at
$ 1000.
Group5 : A franchise model that you willdevelop and offer nationally