ENTREPRENEURSHIP FOR FASHION & TEXTILES

Amity School Of
Fashion Technology

By-Neha Arora

Module-I
Topics to be covered:

 Introduction of Entrepreneur
 Why Be an Entrepreneur
 Risks of Being an Entrepreneur
 Entrepreneurship in History
 Characteristics of Successful
Entrepreneurs
 Entrepreneurial Traits
 Entrepreneur vs. Manager
 Entrepreneur vs. Intrapreneur
 Steps in the Entrepreneurial Process
 Role Of Entrepreneurship In Economic
Development
 Type of Entrepreneur
 Session outcomes

By the end of the session students will able to:

 The student will understand the development of a small fashion and Art business from concept
articulation to exit strategies
 They will be able to distinguish between the various available operating options as an
entrepreneur.
 Introduction of
Entrepreneur

• Someone who creates and runs a business is called an

Entrepreneur.
• When an entrepreneur starts a new business, risk is involved.
Risk is the chance of losing something.
• Because employees work for someone else and entrepreneurs
work for themselves, entrepreneurs risk more than employees.
• Small firms employ about half of the U.S. private work force, and
they create around 64 percent of all new jobs.
• One way you can gain a sense of what business is like is by
investigating an internship, or apprenticiship.

4
 Definition of
•
Entrepreneurship
“Entrepreneurship is the purposeful activity of an individual or a
group of associated individuals, undertaken to initiate, maintain or
aggrandize profit by production or distribution of economic goods
and services”
- A. H. Cole

• “Entrepreneurship is based on purposeful and systematic

innovation. It included not only the independent businessman but
also company directors and managers who actually carry out
innovative functions.”
- Joseph A. Schumpeter
Definition of
Entrepreneurship
• “Entrepreneurs are people who have the abilities to see and
evaluate business opportunities , together with the necessary
resources to take advantage of them, and to ensure appropriate
action to ensure success.”
- International Labour Organization

• “An entrepreneur is a person who starts a new venture, taking the

initiative and risk associated with it and does so by crating
something new to provide value to customers.”
- David Holt
 Why Be an Entrepreneur?

The biggest reward of becoming an entrepreneur is the personal satisfaction

that comes from having the freedom to make your own business decisions and
then act on them

 Making Your Own Rules. When you own a business, you get to be your
own boss.

 Doing Work You Enjoy. Since the majority of most peoples’ lives is spent
working, why not spend that time doing something you enjoy?

 Creating Greater Wealth. There’s no limit to what an entrepreneur can

make.
 Helping Your Community. Being an entrepreneur lets
you make your community and world a better place.
 Risks of Being an
Entrepreneur
 Potential Business Failure. Being fully responsible means the
success or failure of your business rests on you.
 Unexpected Obstacles. Problems can happen that you don’t
expect.
 Financial Insecurity. Many new businesses don’t make much
money in the beginning, so you may not always be able to
pay yourself.
 Long Hours and Hard Work. It’s not unusual for entrepreneurs to
work a lot of extra hours to make their businesses successful.
This is especially true during the initial start-up process.
 Entrepreneurship in History
Here are some well-known entrepreneurs
who changed the world. For what is each
entrepreneur most famous?

 Thomas Edison  Ingvar Kamprad

 P.T. Barnum  Stephen Wozniak and
 Wlliam Harley & Arthur Steve Jobs
Davidson  Russell Simmons
 Maggie Lena Walker  Dinah Mohajer
 Characteristics of
Successful
Entrepreneurs
Self-assessment—evaluating your strengths and
weaknesses—
is an important part of becoming an entrepreneur

 An aptitude is a natural ability to do a particular type of

work or activity well.
 An attitude is a way of viewing or thinking about
something that affects how you feel about it.
Entrepreneurs tend to be people with positive attitudes.
 Characteristics of
Successful
Personal Characteristics
Entrepreneurs
Skills
 Courage A skill is an ability that’s
 Creativity learned through training and
 Curiosity practice.
 Determination  Business Skill
 Discipline  Communication Skill
 Empathy  Computer Skill
 Enthusiasm  Decision-Making and
 Flexibility Problem-Solving Skills
  Mathematical Skill
Honesty
  Organizational Skill
Patience
  People Skills
Responsibility
 Increasing Your Potential
Increase your business and entrepreneurial
potential by focusing on six specific areas.

 Business Knowledge. Reading magazine and

newspaper articles, search the Internet, and talk to
business owners.
 Financial Skills. Strengthen your math skills.
 Career Exploration. Evaluate your strengths and
weaknesses, explore careers interest you.
 Community Awareness. Look for volunteering opportunities
and find out if any companies in your area provide internship
programs.
 Education. Obtaining a good education benefits you personally
and open doors to more career opportunities.
 Relationships. Spend time with people who believe in you
and inspire you.
 Concept of
• Entrepreneurship
Various views about an ‘Entrepreneur’:
• as a risk bearer
• as an organizer
• as an innovator

• Entrepreneurship is related to:

• coordination, innovation and performance of the
entrepreneur.
• a system of creating new business.
• referred to the various activities, done for the
establishment and operation of an enterprise.
 Entrepreneurial Traits
• Innovation
-does something new and different, seeking to do
something different and unique, try to meet the changing
requirements of customers.

• Risk – Bearing
-must be able to assume the risk involved in the enterprise,
needs to be a risk taker not an avoider, should have ability of
risk bearing .
 Entrepreneurial Traits
• Passion for the Business
-This passion typically stems from the entrepreneur’s belief
that the business will positively influence people’s lives.

• Product/Customer Focus
-An entrepreneur’s keen focus on products and customers
typically stems from the fact that most entrepreneurs are, at
heart, craftspeople.

• Execution Intelligence
-The ability to fashion a solid business idea into a viable
business is a key characteristic of successful entrepreneurs.
Entrepreneurial Traits
• Achievement motivated • Lengthy attention span
• Alert to opportunities • Optimistic disposition

• Creative • Persuasive
• Responsive to criticism
• Decisive
• Self-confident & Self-starter
• Energetic
• Tenacious
• Has a strong work ethic • Tolerant of ambiguity
• Is a networker • Visionary
• Initiative Taker
Entrepreneurs v/s Managers
• Entrepreneur refers to a person who creates an enterprise,
by taking financial risk in order to get profit.

• Manager is an individual who takes the responsibility of controlling

and administering the organization.
BASIS FOR COMPARISON ENTREPRENEUR MANAGER
Focus Business startup Ongoing operations
Primary motivation Achievement Power
Approach to task Informal Formal
Status Owner Employee
Reward Profit Salary
Decision making Intuitive Calculative
Driving force Creativity and Innovation Preserving status quo
Risk orientation Risk taker Risk averse
Intrapreneurs
• An Intrapreneur is someone within a company that takes risks in an effort to
solve a given problem and is usually is in charge of undertaking innovations in
product, service, process etc.

• Organizations want to form:

• Product Champions: people who take ownership of a product from

concept to market.
• Skunkworks: a group of intrapreneurs kept separate from the rest of the
organization.
• New Venture Division: allows a division to act as its own
smaller company.
• Rewards for Innovation: link innovation by workers to
valued rewards.
 The Entrepreneurial Decision Process
• Entrepreneurial decision process -
– Entails a movement from something to something.
– Movement from a present lifestyle to forming a new
enterprise .

Reasons For Possibilities

Desire to
The Present Changing to Become An
Become An
Status The Present An Entrepreneur
Entrepreneur
Status Entrepreneu
r
Steps in the Entrepreneurial
Process
• Once the decision to become an entrepreneur is taken,
the entrepreneurial process begins.
• The 5 stages of entrepreneurial process are –
1. Discovery
2. Concept Development
3. Resourcing
4. Actualization
5. Harvesting

Concept
Discove Resourci Actualizati Harvesti
Developm
ry ent ng on ng
 Steps in the Entrepreneurial
Process

1 2 3 4 5
Discovery: The stage Concept Resourcing: The stage Actualization: The Harvesting: The stage
in which the Development: in which the stage in which the in which the
entrepreneur Develop a business entrepreneur entrepreneur operates entrepreneur decides
generates ideas, plan: a detailed identifies and the business and on business’s future
recognizes proposal describing acquires the financial, utilizes resources to growth/ development,
opportunities, and the business idea. human, and capital achieve its or demise.
studies the market. resources needed for goals/objectives.
the venture startup,
etc.
Role Of Entrepreneurship In Economic
Development
• Entrepreneurship is one of the most important input in
economic
the development of a country.
• The entrepreneur acts as a trigger head to give spark to economic
activities by his entrepreneurial decisions.
• The entrepreneur plays a pivotal role not only in the development
of industrial sector of a country but also in the development of farm
and service sector.
• The crucial role played by the entrepreneurs in the development of
the Western countries has made the people of underdeveloped
countries too much conscious of the significance
of entrepreneurship for economic development.
Role Of Entrepreneurship In Economic
Development
• Promotes Capital Formation
• Creates Large-Scale Employment Opportunities
• Promotes Balanced Regional Development
• Reduces Concentration of Economic Power
• Wealth Creation and Distribution
• Increasing Gross National Product and Per Capita Income
• Improvement in the Standard of Living
• Promotes Country's Export Trade
• Induces Backward and Forward Linkages
• Facilitates Overall Development
Role Of Entrepreneurship In Economic Development

Promotes Capital Formation

• Entrepreneurs promote capital formation by mobilizing the idle savings of
public.
• They employ their own as well as borrowed resources for setting up their
enterprises.
Creates Large-Scale Employment Opportunities
• Entrepreneurs provide immediate large-scale employment
to the
unemployed which is a chronic problem of underdeveloped nations.
 Role Of Entrepreneurship In Economic
Development
Promotes Balanced Regional Development
• Entrepreneurs help to remove regional disparities through setting up of
industries in less developed and backward areas.
• The growth of industries and business in these areas lead to a large
number of public benefits like road transport, health, education,
entertainment, etc.
Reduces Concentration of Economic Power
• Industrial development normally lead to concentration of economic power
in the hands of a few individuals which results in the growth of
monopolies.
• In order to redress this problem a large number of entrepreneurs need to
be developed.
Role Of Entrepreneurship In Economic
Development
Wealth Creation and Distribution
• It stimulates equitable redistribution of wealth and income in the interest
of the country to more people and geographic areas, thus giving benefit to
larger sections of the society.
Increasing Gross National Product and Per Capita Income
• Entrepreneurs are always on the look out for opportunities.
• They explore and exploit opportunities,, encourage effective resource
mobilization of capital and skill, bring in new products and services and
develops markets for growth of the economy.
• In this way, they help increasing gross national product as well as per
capita income of the people in a country.
 Role Of Entrepreneurship In Economic
Development
• Improvement in the Standard of Living
• Increase in the standard of living of the people is a characteristic feature of
economic development of the country.
• Entrepreneurs play a key role in increasing the standard of living of the
people by adopting latest innovations in the production of wide variety of
goods and services in large scale that too at a lower cost.
• Promotes Country's Export Trade
• Entrepreneurs help in promoting a country's export-trade, which is an
important ingredient of economic development.
 Role Of Entrepreneurship In Economic
Development
• Induces Backward and Forward Linkages
• Entrepreneurs like to work in an environment of change and try to
maximize profits by innovation.
• When an enterprise is established in accordance with the changing
technology, it induces backward and forward linkages which stimulate the
process of economic development in the country.
• Facilitates Overall Development
• Entrepreneurs act as catalytic agent for change which results in chain
reaction by multiplying their entrepreneurial activities, thus creating an
environment of enthusiasm and conveying an impetus for overall
development of the area
Opportunities for
Entrepreneurs
• There is tremendous interest in entrepreneurship all around the
world.
• India is at a threshold of startup boom, as we are world’s third fastest
growing startup eco-system.
• With 3,100 startups, India is closely behind UK with 4,000 startups
and catching up to US which has 41,500 startups.
• E-commerce, in the past few years, has been the flag bearer for
entrepreneurship in India with Flipkart, Snapdeal, Zomato,
bookmyshow etc. becoming giants in the field within a few years of
formation.
 Opportunities for
•Entrepreneurs
A lot of big venture capitalist firms have shown interest in making
investments in India.

• Sequoia Capital, the most active venture capital firm of this quarter
in the Asia Pacific region has made 13 of its 32 investments in India.

• Another global venture capital firm, Tiger Global, has made 9 of its
20 investments in India.

• Major initiatives taken by the government regarding improving the

entrepreneurial scenario in the manufacturing sector of the country
has helped immensely.
Type of
Entrepreneu
r
 Based on Ownership:

1. Private Entrepreneur:
A private entrepreneur is one who as an individual
sets up a business enterprise. He / she it’s the sole
owner of the enterprise and bears the entire risk
involved in it.
2. State Entrepreneur:
When the trading or industrial venture is undertaken
by the State or the Government, it is called ‘state
entrepreneur.’
3. Joint Entrepreneurs
When a private entrepreneur and the Government
jointly
 Based on the Size of Enterprise:

1. Small-Scale Entrepreneur:
 An entrepreneur who has made investment in plant and
machinery up to Rs 1.00 crore
2. Medium-Scale Entrepreneur:
 The entrepreneur who has made investment in plant and
machinery above Rs 1.00 crore but below Rs 5.00 crore
3. Large-Scale entrepreneur:
 The entrepreneur who has made investment in plant and
machinery more than Rs 5.00 crore
Typ
e What they are
Solo These are the entrepreneurs who essentially work
Operators alone
if needed
and,at all, employ a few
employees.

Active Active partners are those entrepreneurs who start/

Partners carry on an enterprise as a joint venture.

Inventor Such entrepreneurs with their competence and

s inventiveness invent new products. Their basic
interest lies in research and innovative activities.

Challenge These are who plunge into industry because of

rs the challenges it presents. When one challenge
seems to be met, they begin to look for new
challenges.
Buyer These are who do not like to bear much risk. to
s reduce risk involved in a new enterprise, they buy
the ongoing one.

Life- These entrepreneurs take business as an integral

Timers part to their life. Eg :-the family enterprise
Benefits of
Entrepreneur
 You have an opportunity to grow in your career.

 There is a lot more independence as an entrepreneur.

 You can have flexible working hours as an entrepreneur.

 There is an immediate ability to earn as an entrepreneur.

 You have opportunities to change or explore.

 It is a chance to discover what makes you tick.

 It is an opportunity to earn based on your full potential.

 You have new opportunities to get involved in your

community.

 It is an opportunity to get your ideas out quickly.

 Drawbacks of Entrepreneurship

owners to establish a particular business activity although they sometimes create

drawbacks in entrepreneurship due to the following reasons.
 Life cycle of the business venture
 The failure of new small firms

 Making wrong decisions

 Poor quality of the analysis for Business plan

 A range of Ethical problems

 Legal considerations
 Drawbacks of Entrepreneurship
 The leave benefits of an entrepreneur are not the same.

 You do not have a guaranteed income as an entrepreneur.

 There are no fixed working hours when you’re an entrepreneur.

 You are the one required to do all of your updates.

 . There are more responsibilities as an entrepreneur.

 You must have high levels of self-discipline as an entrepreneur.

 There are higher levels of stress as an entrepreneur.

 You might need some cash to get started on a new idea.

 There are tax implications to consider.

 REFERENCE

 https://www.mbaknol.com/management-articles/major-drawba
cks-of-entrepreneurship/