Date post: | 04-Apr-2018 |
Category: |
Documents |
Upload: | pragati-gupta |
View: | 222 times |
Download: | 2 times |
of 23
7/30/2019 Unit- I Entrepreneurship Development
1/23
Introduction to Entrepreneurshipand Small Business Management
7/30/2019 Unit- I Entrepreneurship Development
2/23
What is Business? Zoltan Acs, a noted economist, defined a business as a
conscious, willful effort to organize economic activitythat consists of a collection of contracts when morethan one party is involved.
A business is a legal entity, recognized by law, which ispermitted to enter into binding contracts with persons
or other businesses.
7/30/2019 Unit- I Entrepreneurship Development
3/23
Forms of Business Sole Proprietorship
Partnership
Corporations
7/30/2019 Unit- I Entrepreneurship Development
4/23
Sole Proprietorship Asole proprietorship is a business owned by a single
individual that is not incorporated. The life of theorganization is limited to the life of the individual whostarted it.
Advantages: It is easy and inexpensive to form, and, once operating, it is
subject to few government regulations. It pays no corporate income taxes, and its earnings are
taxed at the owners tax rate. Disadvantages: The business usually has difficulty obtaining large sums of
capital (money). The proprietors have unlimited liability for business debts.
7/30/2019 Unit- I Entrepreneurship Development
5/23
7/30/2019 Unit- I Entrepreneurship Development
6/23
Corporation Acorporation is a legal entity recognized by the state. A
corporation bylaw must display Inc. Advantages: It permits limited liability for the owners since they only own shares of
stock of the corporation. It permits easy transfer of ownership since there are rarely conditions
placed on buying or selling stock. It has unlimited life. It can continue to operate long after the original owners have departed. Disadvantages: The legal costs of forming and maintaining the corporation can be substantial. The formation may require substantial legal effort and a fair amount of
government regulation.
7/30/2019 Unit- I Entrepreneurship Development
7/23
Promoter of All Businesses-
Entrepreneur
7/30/2019 Unit- I Entrepreneurship Development
8/23
Entrepreneur He is an agent who buys factors of production at
certain prices in order to combine them into a productwith a view to selling them at uncertain prices infuture.
He is an organizer who combines the land, labour andcapital to produce a product. This gives three implicit
factors to be inherent in him: Moral Qualities for work judgment
Command over sufficient capital
Uncertainty of profits.
7/30/2019 Unit- I Entrepreneurship Development
9/23
EntrepreneurAs an innovator (Schumpeter)
The introduction of the new product in the market.
The instituting of the new production technology. The opening of new market.
The discovery of new source of supply of raw material
The carrying out of the new form of organisation of any
industry by creating of a monopolyposition or thebreaking up of it.
7/30/2019 Unit- I Entrepreneurship Development
10/23
Characteristics Hard work
Desire for High Achievement
Highly Optimiastic Independence
Foresight
Good Organiser
Innovation
7/30/2019 Unit- I Entrepreneurship Development
11/23
Functions Idea generation
Scanning of the best suitable idea
Determination of the business objectives Product analysis
Market research
Determination of form of ownership
Raising necessary funds
Recruitment of men
7/30/2019 Unit- I Entrepreneurship Development
12/23
7/30/2019 Unit- I Entrepreneurship Development
13/23
7/30/2019 Unit- I Entrepreneurship Development
14/23
7/30/2019 Unit- I Entrepreneurship Development
15/23
Difference between Entrepreneur
and Manager On the basis of Motive
On the basis of Status
On the basis of Risk-bearing On the basis of Rewards
On the basis of Innovation
On the basis of Qualification
7/30/2019 Unit- I Entrepreneurship Development
16/23
Types of Entrepreneur There are many types of entrepreneur on the basis of
skills, on the basis of need, etc.
But most prominent and universal are of four types- Innovative Entrepreneurs
Imitative Entrepreneurs
Fabian Entrepreneurs
Drone Entrepreneurs
7/30/2019 Unit- I Entrepreneurship Development
17/23
Innovative Entrepreneurs Entrepreneurs which use their creativeness and logical
thinking for doing something new. The new can beanything of the following:
Bringing new product in the market
New technology
New market and much more.
These possess characteristics like creativity, problemsolving, foresightedness etc.
7/30/2019 Unit- I Entrepreneurship Development
18/23
ExampleBy linking his Microsoftsoftware to IBM's first PCs,
he dominated the industry.
He developed a two-prongstrategy of expanding themarket while maintaining astrong hold on competitors.
Bill Gates 1955
7/30/2019 Unit- I Entrepreneurship Development
19/23
Created a new model forPC sales
Cutting out the retail
middleman and custom-
building computers to suit
buyers needs put Dell at
the front of the class of PCmakers.
Michael Dell 1965
7/30/2019 Unit- I Entrepreneurship Development
20/23
Muhammad Yunus 1940
Founded a banking system
30 years ago
To lend small amounts ofmoney to the rural poor inBangladeshi villages.
2006 Nobel Peace Prizewinner,
7/30/2019 Unit- I Entrepreneurship Development
21/23
Imitative Entrepreneurs The persons who work according to the others
innovations, strategies etc. and copy others way ofdoing business.
Examples from Your side!!!!!
7/30/2019 Unit- I Entrepreneurship Development
22/23
Fabian Entrepreneurs Fabian Entrepreneurs are characterized by very great
caution and skepticism in experimenting any changein their enterprises.
They imitate only when it becomes perfectly clear thatfailure to do so would result in a loss of the relativeposition in the enterprise.
7/30/2019 Unit- I Entrepreneurship Development
23/23
Entrepreneurship Entrepreneurship is the attempt to create value
through recognition of business opportunity, themanagement of risk taking appropriate to the
opportunity and through the communicative andmanagement skills to mobilize human, finanacial andmaterial resources necessary to bring a project tofruition.