01 the entrepreneur

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

Acts upon Opportunitie

s

Innovates

Undertakes RISK

Raises Capital

Takes Decisions

Motivated

Welcomes Change

Plans

Any individual that sees and acts upon an opportunity. This includes introducing a new product or service, 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, aggressiveness, and

determination. By assembling various resources, s/he takes

risks and creates a venture from an idea, hobby, or simply a dream

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

Definition(s)

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

Activity 1: My Entrepreneur

Let’s 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

Environment

Skills & Competenci

es

Traits of Entrepreneurs

Traits (Characteristics) of Entrepreneurs1. Mental Ability (Intelligence & Creativity)2. Technical Knowledge3. Administrative & Organizing Skills4. Vision & Clarity5. Business Secrecy6. Effective Communication7. Human Relations Ability8. PR Skills

Successful Entrepreneurs

Successful Entrepreneurs1. Global Perspective

2. Entrepreneurial Spirit1. Passion for the business

2. Tenacity despite failure

3. Product/Customer Focus

4. Global Outlook

5. High need achievement

6. Willingness to accept change

7. Ambition

8. Capacity & willingness to assume risk

9. Goal Orientation

10. Commitment

3. Entrepreneurial Design Capability1. Strategic Thinking

2. Execution Intelligence

Successful Entrepreneurs4. Personal values

1. Integrity

2. Magnanimity

3. Personal Responsibility

5. Entrepreneurial Values1. Product/Customer Focus

2. Employee Focus

3. CSR Focus

6. Skills & Competencies1. Managerial Skills

2. Leadership Skills

3. Imagination & Creativity

4. Interpersonal Skills

5. Problem solving and Decision making Skills

Activity 2

Let’s 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

Technical

Skills

•Specific Operation Technology

•Communication

•Interpersonal relations

•Organizational ability

•Coordinating Team members

•Environmental Observation

Business

Management Skills

•Planning•Formulating Goals

•Decision-making

•Motivating•Marketing•Accounting•Negotiation

Entrepreneur

ial 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.)

Shaping Competencies Experiences & Interactions Learning & Observation Formal Training & Education Resources

Knowledge

AbilitiesSkills

Personal Attributes

Activity 3

The Competency Framework

Let’s 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.)

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.

Social Role & Social Concept Level

• Concern for high quality of work

• Assertiveness• Self-confidence &

Conviction

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. Initiative2. Sees and Acts on Opportunities3. Persistence4. Knowing5. Concern for High Quality of Work6. Commitment to Work Contract7. Efficiency Orientation8. Systematic Planning9. Problem solving-Observing the symptoms, diagnosing

and curing10. Self-confidence

Entrepreneurial Competencies & Skills Competencies (Contd.)

As listed by the EDI (Contd.): -11. Assertiveness12. Persuasion13. Use of Influence Strategies14. Monitoring15. Concern for Employee Welfare

Entrepreneurial Behavior

Entrepreneurial Behavior Concept of Behavior

Response of an individual to his/her external/internal stimuli

Exhibited in the individual’s actions B = f(I,ET)

Determinants of Individual Behavior Ability

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. Perceiving market opportunities2. Gaining command over scarce resources3. Purchasing inputs4. Marketing products5. Dealing with bureaucrats6. Managing human relations within the firm7. Managing customer and supplier relations

Functions of an Entrepreneur (Contd.) As per Peter Kilby (Contd.): -

8. Managing finance9. Managing production10. Acquiring and overseeing assembly of the factory11. Industrial engineering12. Upgrading process and product13. 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

Business Er.

Trading Er.

Industrial Er.

Corporate Er.

Agricultural Er.

Technology

Technical Er.

Non-technical

Er.

Professional Er.

Motivation

Pure Er.

Induced Er.

Motivated Er.

Spontaneous Er.

Growth

Growth Er.

Super-growth Er.

Stages in Developmen

t

First Generation

Er.

Modern Er.

Classical Er.

Clarence Danhof

Innovating Er.

Imitating Er.

Fabian Er.

Drone Er.

Reasons for becoming an Entrepreneur

Reasons for becoming an Entrepreneur

Traits Approach

High Need Achievement

Risk Taking Propensity

Tolerance for Ambiguity

Innovation

IntuitionInternal Locus of Control

Low need for Conformity

High need for Independence &

Autonomy

Proactive

Reasons for becoming an Entrepreneur

Environmental Approach

Cultural Phenomenon

Family Background

Education & Experience

Push/Pull Factors

Marginal/Displacement

Approach

Reasons for becoming an Entrepreneur

Behavioral/Managerial Approach

• Entrepreneurial Skills

• Managerial Skills

Myths about Entrepreneur

Myths About Entrepreneur

Common Myths

Entrepreneurs are born not made

Entrepreneurs are gamblers

Entrepreneurs are motivated

primarily by money

Entrepreneurs should be young

and energetic

Entrepreneurs love the spotlight