UNIT 1 Entrepreneurship
UNIT 1 Entrepreneurship
FUNCTIONS OF AN ENTREPRENEUR:
1. Taking Initiative: Entrepreneurship is a pro-active activity that takes such
actions , which others cant even perceive. This unique function of
entrepreneurship provides our civilization with a wide variety of products,
ways of actions, production techniques, etc. Therefore, taking initiative with
such end and qualification is the prime function of entrepreneurship in every
economy.
2. Organising resources: Organizing entails identifying those resources that are
required to transform a particular idea into reality. The resources include
human and nonhuman resources. Organizing in entrepreneurship will
increase productivity, promote new ventures, distribute and supervise work
and responsibility, and will remove barriers to work. Entrepreneurship, thus,
is the taping tool for assuming indigenous skills and resources for the
productive purpose.
3. Identifying opportunities and prospects: Entrepreneurship searches those
activities of value that have an economic and social contribution. It identifies
new opportunities in the socio-economic arena which have got profitable
prospects therefore, entrepreneurs are called searchers of hopes into blind
spots and this function enormously indebted our society to entrepreneurship.
4. Risk taking: Entrepreneurship takes the risk for the new venture. For
innovative actions in the field of production technology for new products in
a volatile market and new raw materials used in production. Moreover, it
also takes the risk for theft, robbery, snatching market fall and hooliganism
that may be involved with new entrepreneurship This is a major function of
entrepreneurship in developing countries.
5. Decision making: Entrepreneurship is a new initiative therefore, it has to
decide multivariate issues that affect new ventures. Entrepreneurship has to
decide upon equipment to be used quality, price and its variation, deficiency,
capital structure, the feasibility of the project, organizational structure,
philosophy of management, etc. that will guide, run and prosper the new
venture or distinct attempt for entrepreneurship. We know that decision
making is a process and entrepreneurship to make it a success, goes through
this process.
6. Technology transfer and adaptation: Entrepreneurship throughout the world
brings invented technology from different comers of the world and makes it
appropriate by making required adjustments for local conditions. This
function of entrepreneurship involves identifying appropriate technology
with market potentials and adapts it into the local environment. Sometimes,
the technology uses indigenous materials that reduce cost and wastage of
resources. This entrepreneurial function virtually makes the world united in
terms of homogeneous technology.
7. Innovation: Entrepreneurship innovates a new production process or
technology, market, sources of new materials, management, strategy or
technique, investment opportunity, etc. Under the context of the changing
environment, the entrepreneur locates the most feasible opportunity for the
venture as well as improved or distinct technology that gives competitive
advantages or a new opportunity to prosperity. Innovation is a creative
means to add new utilities to existing situations or products.
Entrepreneurship through innovation creates innovative products or
operations for human society.
8. Social responsibility: Entrepreneurship with its innovative technology
somehow promotes human efforts. It restarts closed industries with
innovative managerial strategies and techniques. It also motivates new
entrepreneurs and attracts them to engage into an entrepreneurial venture.
Entrepreneurship provides new products or ideas that give momentum and
diversity into society. Therefore, entrepreneurship performs social
responsibility that protects the welfare, benefit and economic gain of the
society. It also promotes the community standard by providing jobs and
amenities.
9. Public relations: Entrepreneurship is a new venture that requires social
acceptance by the regulatory bodies and the public at large. The government,
as well as the persons’ who will be subject to entrepreneurship, would be
convinced through public relations to accept and to allow the entrepreneur to
execute an entrepreneurial venture. History tells that many entrepreneurs
were disregarded, coerced and even eliminated for their entrepreneurial
activities. Failure is costly and therefore, public relation is a significant
function of entrepreneurship.
10.Experience sharing: Entrepreneurship may spread in society through
publishing and sharing its success stories. Thus, entrepreneurship holds
workshops, industrial visits through which the entrepreneurial experience in
different counties may be shared with a widespread adaptation of success.
This function will benefit the economies of the countries as well as the world
bodies,
11. Managerial roles: Entrepreneurs perform several managerial roles to keep
their venture functioning with success. The roles are interpersonal roles that
consist of a figurehead role, leadership role, and liaison role; informational
roles that include recipient role, disseminator role, and the spokesperson
role; decisional roles that consist of an entrepreneurial role, disturbance-
handler role, resource allocator role, and the negotiator role. The
entrepreneur also does the associated managerial functions such as planning,
organizing, leading and controlling.
12.Balanced economic development: Sustainable economic development
requires a balanced development among various regions and sectors of a
country. Every country tries to ensure such a situation that makes
industrialization throughout the country possible. Entrepreneurs make it
possible by establishing business ventures in various parts of the country in
various sectors of the industry.
Works for Creating a leading position in Change and renew the existing
the market organizational system and
culture.
TYPES OF ENTREPRENEURS:
RECENT TRENDS:
Gone do those days when India had the world’s lowest entrepreneurial activity,
with just 5% of Indians own a business. Today the scenario is entirely different.
According to The State of Indian Startup Ecosystem Report 2021, India has
over 5,694 active investors and 38000 startups. ( give the latest figure) Hence,
the trend of entrepreneurship and startup boom is increasing. However, running
a business successfully or starting a new business makes sense when you stay
updated about the entrepreneurship trends and develop business acumen.
Startups with more significant potential will be adopted faster, and big investors
fund small startups and entrepreneurs. Earlier, such investments in startups were
considered fancy investments. However, today Unicorns startups (private
startups with an investment of over $1 billion) can step toward the mid-level
business within six months. Premium institutes like IIT Delhi have emphasized
that those who wish to become their own bosses and succeed must also know
about Entrepreneurial Ecosystem and Venture Creation, Entrepreneurial
Operations and Decisions, Entrepreneurial Finance, Growing and Scaling Up
Entrepreneurial Ventures, Entrepreneurial Failure Management and much more.
Their Certificate Programme in Entrepreneurship will help you put your best
foot forward.
Micro-influencers are helping drive sales: Influencers are the people who
have a good number of followers on their social media profiles. It can be a
celebrity, music star, or tutor. According to various surveys, consumers trust
word-of-mouth recommendation from friends and family, which is how micro-
influencers work. Micro-influencers are not celebrities, and they are ordinary
people who can create specific content about a topic or theme. They have a
small number of followers, a high engagement rate, and can interact with their
followers. If you have a limited budget for your marketing, you can hire a
micro-influencer because they can help you establish your brand through a
word-of-mouth marketing campaign.
SOCIOPRENEUR: Sociopreneurs are the ones who pay attention to the world
around them. They recognize a need in their community or in society as a whole
and then seek out ways to feed this need while still being able to turn a profit.
Companies like Toms, which gives a pair of shoes to a child is need for every
pair consumers buy, rely not only on creating a good product but also on
providing their consumers with the knowledge that they are playing a part in the
giving back process. other companies have picked up on this. Amazon for
example, has their “Amazon Smiles” program. Amazon gives a portion of their
profits to a charity, customer can select from a list, giving an opportunity to give
back as he shops.