UNIT 4
Entrepreneurial Skill
An entrepreneur is an individual or a team, having an innovative idea, and takes every
step to turn the idea into reality, while bearing the risks.
Entrepreneurship is the process of setting up a business, taking it from an idea to
realization. Entrepreneurship is the ability and readiness to develop, organize, and run a
business enterprise, along with any of its uncertainties in order to make a profit.
Entrepreneurship and society
Positive impact of entrepreneurship on society:
• Accentuates economic Growth
• Fosters Creativity
• Stimulates Innovation and Efficiency
• Creates Jobs and Employment Opportunities
• Solves the problems of the society
• Encourages welfare of the society
Role of society in boosting entrepreneurship:
● Creates needs and demands
● Provides raw materials
● Enables financial support
● Creates a need for education
● Catalyses policy formation and reform
● Facilitates networking
● Supports infrastructure development
adverse impact on society at times like:
• environmental degradation
• trade imbalance
• labour exploitation etc.
Common entrepreneurship activities related to society:
Social Entrepreneurship:
Agricultural Entrepreneurship:
Women Entrepreneurship:
Small Scale Entrepreneurship:
Qualities of an Entrepreneur
Hard work:
Optimism
Independence
Energetic:
Self-confident:
Perseverant
PERSEVERANT
Functions of an Entrepreneur
Organisation Building and Management:
Risk taking:
Innovation:
Promotional functions
Idea Discovery:
Detailed Investigation:
Assembling the Requirements:
Financing:
Managerial functions
Planning
Organizing
Directing
Staffing
Leadership
Communication
Supervision
Motivation
Co-ordination
Controlling
Negotiation
Commercial Functions
Production and Operations
Finance and Accounting
Marketing
Human Resource Management
Role of entrepreneurs:
Innovator’s Role
Agent’s role
Coordinating role
Risk assumption role
Capital formation role
Imitating role
Employment Generation role
Status transformation role
Balancing role
IMPORTANCE OF AN ENTREPRENEUR
Free market evolution
● For example, with an increase in digital services, entrepreneurs have created
companies that offer many home delivery services such as groceries, restaurant food,
clothes, accessories, etc.
Efficiency improvements
● They innovate with current systems and introduce new technologies which can
significantly create advancement in the industry.
New markets
● Entrepreneurs can often ‘redefine the rules’ of an established industry.
● They do this by creating new markets for existing products and slightly innovating in
small ways to suit the needs of a new target market.
New values
● Sometimes, entrepreneurs choose ethics over profit and offer a more ethical product
to the world, and are transparent about it.
● For example, Jaipur Rugs has multiple artisans who work towards making rugs that
are sold around the world.
● However, Jaipur rugs are very transparent about their artisan community and they
ensure that artisans are given a fair share of profit.
MYTH ABOUT ENTREPRENEURSHIP
a) Entrepreneurs are born, not made:
b) It takes a lot of money to start a business:
c) Entrepreneurs take risk:.
d) Businesses either skyrocket or fail
e) Great ideas are what makes entrepreneurs:
f) One must know everything before starting a business:
ENTREPRENEURSHIP AS A CAREER OPTION
1. Nurtures development of entrepreneurial skills and capabilities
2. Enables the application of an entrepreneurial mindset
3. Develops the ability to handle failure and ambiguity
4. Enhances critical thinking and problem-solving ability
5. Provides early exposure to the real world
6. Inspires to think about one’s career differently
7. Leads to create a difference in society
