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Presented By- Poonam Siyag B.Tech (CSE)

Overview What is an entrepreneur? Types of entrepreneurs Characteristics of an entrepreneur Planning to be an entrepreneur Need for Entrepreneurship Barriers to Entrepreneurship Overcoming Barriers

Who is a Entrepreneur............

ENTREPRENEURE

The term ‘entrepreneur’ is derived from the French word ‘entrprendre’ which means ‘go between’ or ‘to undertake’. Thus an entrepreneur is any person who undertakes the risk of establishing and running of a new enterprise. There are different types of entrepreneurs on the modes or objectives or ventures. These classifications are not mutually exclusive.

Types of Entrepreneurs…1. The skeptical entrepreneur

This entrepreneur sees the success of others and immediately starts to question it.

2. The copycat entrepreneurThis entrepreneur sees the success of others

and tries to copy them exactly.3. The research entrepreneur

This entrepreneur loves to learn. They research every possible scenario and outcome for strategies to start or grow a business.

Types of Entrepreneurs…4. The determined entrepreneur

This entrepreneur hasn’t “made it” but they will, no matter what. They see the value in entrepreneurship, they see that success is possible without copying, and they do everything they can to start or grow their business.

5. The accomplished entrepreneurThis entrepreneur has gone through all the stages of

entrepreneurship and building a business, and has reached success. They are now focused on scaling their business and leaving a legacy that extends beyond their lifetime.

TYPES OF ENTREPRENEURS

Entrepreneurship

People with underused talent Small

businesses

High-growth businessesUnemployed

Socia

l

entre

prene

urs

InnovatorsYouth

Self- employed

Entrepreneurial CharacteristicsBeing an entrepreneur requires specific characteristics and skills that are often achieved through education, hard work, and planning.

Risk TakerBusinesses face risk. Entrepreneurs minimize risk through research, planning, and skill development.

PerceptiveEntrepreneurs view problems as opportunities and challenges.

CuriousEntrepreneurs like to know how things work. They take the time and initiative to pursue the unknown.

Entrepreneurial Characteristics ImaginativeEntrepreneurs are creative. They imagine solutions to problems that encourage them to create new products and generate ideas.

PersistentTrue entrepreneurs face bureaucracy, make mistakes, receive criticism, and deal with money, family, or stress problems. But they still stick to their dreams of seeing the venture succeed.

Goal-settingEntrepreneurs are motivated by the excitement of staring a new business. Once achieved, they seek out new goals or ventures to try.

HardworkingEntrepreneurs need a great deal of energy to see a venture start and succeed. Yet they are not deterred by the long hours to achieve their goal.

Entrepreneurial CharacteristicsSelf-confidentEntrepreneurs believe in themselves. Their self-confidence takes care of any doubts they may have.

FlexibleEntrepreneurs must be flexible in order to adapt to changing trends, markets, technologies, rules, and economic environments.

IndependentAn entrepreneur’s desire for control and the ability to make decisions often makes it difficult for them to work in a controlled environment.

Characteristics of Entrepreneurs

Key Personal Attributes

Strong Managerial Competencies

Good Technical Skills

Successful Entrepreneurs

Need for entrepreneurship

Increases national production

Balanced area development

Dispersal of economic power

Reinvestment of profit for the welfare of the area of profit generation

Development is a function of motivation and human resource

Entrepreneurial awareness

Be Different

Entrepreneurship development

Entrepreneur & Small Business Development

Wedding planning

Uniform DesignPre Schooling

Get Idea

Think

Plan Set Goals

Success

Mistakes of Entrepreneurship:Business entrepreneurship fail because:-

o Management Mistakeso Lack of Experience o Poor financial controlo Weak marketing effortso Failure to develop a strategic and effective

plano Uncontrolled Growtho Poor location o Improper inventory controlo Incorrect or unsuitable pricingo The inability of to move into entrepreneurial

thinking mindset

The Three-Legged Stool

Components of

Success

Networks, Mentoring and

CoachingTraining & Technical

Assistance

Youth Entrepreneursh

ipAccess to Capital

Supportive Environment

Successful Entrepreneurship

BARRIERS

Competitors• The size of industry

• The number of competitors/substitutes

• The competitive advantage for each competitors

• What is your niche market?

Why we need to know Barriers…An understanding of the inhibiting factors or

barriers will help prospective entrepreneurs to develop a strategy to overcome them.

A systematic study of the barriers will lead to a proper understanding of the fields or areas in which they occur.

Once the barriers are clearly identified, the society, government and other supporting agencies can develop effective programs to tackle the issues to create a conducive entrepreneurial climate.

An insight into the barriers will lead to insight into the entrepreneur’s personality that is so essential in the process of entrepreneurship

Types of Barriers - Entry Barriers Environmental

barriers Communication

Barriers Personal barriers Social barriers Cultural barriers Political environment

Barriers to entry and exitBlock potential entrants from

making a profitProtect the monopoly power

of existing firmsMaintain supernormal profits

in the long runBarriers to entry make a

market less contestable

Barriers to entry and exitStatutory (legal) barriers

Licences (e.g. professional qualifications, banking licences, licences to sell alcohol, taxis, run a night club or a casino)

Patents (e.g. In the pharmaceutical industry and in telecommunications)

Copyrights and TrademarksPublic franchises e.g. Rail franchises, national

lotteryTariffs, quotas and other trade restrictions

affecting imports of goods and services

Environmental BarriersThe economic environment can create barriers for an entrepreneur because of the following reasons:The capital for setting up the new

venture is not accessible for the entrepreneur

Non-availability of labour at reasonable cost.

If the labour market is unreliable and is fraught with undisciplined and selfishness, it will also become a barrier for entrepreneurship.

Environmental BarriersShortfall in the availability of raw materials

in the desired quality and quantity.Inadequate infrastructure to transport the

raw material to the factory.Non-availability of easy access to the market

for the finished goods.

Communication Barriers

Communication BarriersLack of open, honest, and effective communication,

both from the top down and from the bottom up.Communication is not just talking, but also listening,

writing, body language, and “actions speak louder than words.”

Unclear frame of reference. Whenever you discuss any start-up matter, the receivers will view it from their particular frame of reference, including their values, their priorities, and their background.

Technical semantics and jargon. Jargon only has meaning if the symbols are already understood. If an abbreviation or phrase is not commonly used outside a specific group, or experts, it becomes negative communication

Types of Communication Barriers:

Personal BarriersThe personal barriers to entrepreneurship can be

classified into two types:Motivational : Once the venture starts functioning, the

obstacles faced in the initial stages can make the entrepreneurs to lose their commitment and consequently their level of motivation dips. The entrepreneurs who lack toughness and perseverance often quit.

Perceptional : Certain perception barriers can hamper the progress of the entrepreneur. Lack of a clear vision and misunderstanding can result in faulty perception. If the entrepreneur demands everything to be clear and well-defined in order to develop a perception, it will lead to disappointment. As entrepreneur’s world is basically disorderly and ambiguous, the people who excessively depend on order will find it a barrier to entrepreneurship. 

Personal BarriersUnwilling to invest money Lack of confidence Lack of motivationLack of patience Inability to dreamPsychological Barriers

• Security• Dignity• Peace of mind etc.

Social Barriers The following are the examples of barriers

arising out of social environment:A society putting premium on safety and security in

matters of securing a livelihood, such a value can become a strong social barrier to entrepreneurship.

In some societies, the business is considered as a profession of lower hierarchy. Business people are considered inferior to office-goes, engineers, doctors etc. Such a social response to entrepreneurs can be a big hurdle in developing and nurturing entrepreneurs.

A society denying access to self-esteem will be placing hurdles in the path of an entrepreneur.

Social Barriers Social factors such as

insistence on conformityan excessive protective attitude

among children during their formative years

discouragement to mobilitywill all thwart the following

essential values of entrepreneurship.creativityinnovative spiritsense of adventure.

Cultural Barriers Cultural barriers to entrepreneurship in

our society are due to the fact that the cultural values in our society are bound by:conventionalismstatus-quoritualsstrong cultural taboos etc.

All these cultural hindrances to entrepreneurship may curb the entrepreneurial spirit.

Cultural Barriers For instance, in the past, some societies in India discouraged people from going abroad believing that crossing the sea was a cultural taboo. Similarly certain field of work were considered unsuitable for people of certain culture.One other example is that in certain cultures,

where in taking loans for interest is forbidden, becomes a major barrier if the major sources of loans are interest charging banks.

Such strong cultural dictates (Order) can act as barriers to entrepreneurship.

Various Aspects of Culture:-

Political Environment The political environment can work against the interest of entrepreneurs in the following ways:

A political environment that is characterised by instability and insecurity will discourage entrepreneurs.

Political policies can retard the growth of entrepreneurial ventures in a country.

Excessive interference in the form of controls, delays etc. from the government can discourage prospective entrepreneurs.

Overcoming Entrepreneurial Barriers

How do some start-ups find a way to get through problems that cause others to throw in the towel? They figure out how to recover after a failed product launch, speed up cash flow during tough times, withstand the threats from new competition, hire the right employees and find new customers.

OVERCOMING COMMUNICATION BARRIERS

1)On the basis of Economy Economics:

In a domestic business strategy, the entire country is organized under a single economic system and has the same currency.

The variation and availability of technology are often surprising.

Identify opportunities for domestic and international expansion.

Going Global can increase one’s interest and Helps in foreign exchange.

Internal Factors:Desire to do somethingEducation BackgroundExperience

External Factors:Government assistance and SupportAvailability of raw material and

labourEncouragement from big business

housesPromising demand for the product

2)ON THE BASIS OF MOTIVATION

3) ON THE BASIS OF TECHNOLOGYStaying on top of frequent, large-scale changes

for Social Status and Reputation in the Society. Using new machinery for better look and feel.Entrepreneurs can use technology to:

Focus on strategy Improve efficiencyMitigate compliance risk Increase employee satisfaction and engagement

Tech can form the foundation you need to step back and think big, developing the right strategy to power your growth.

OTHER CLASSIFICATIONS

4)ACCORDING TO GENDER AND AGE

There shouldn’t be gender or age differences Promoting women entrepreneurship Women entrepreneurs bring particular sets of

skills that not only set them apart from their male counterparts, but also lend themselves to being successful entrepreneurs.

BARRIERS TO INTERNATIONAL TRADE

General Agreement on Tariffs and Trade (GATT)Established in 1947 under U.S.

leadership; includes over 100 nations.

Objective - To liberalize trade by eliminating or reducing tariffs, subsidies, and import quotas.

BARRIERS TO INTERNATIONAL TRADE

Entrepreneur’s Strategy and Trade BarriersTrade barriers increase entrepreneurs’ costs of

exporting products or semi finished products to a country.

Voluntary export restraints may limit entrepreneurs’ ability to sell products in a country from production facilities outside the country.

Entrepreneurs may have to locate assembly or production facilities in a country to conform to local content regulations.

Things to do…

Take Risk

Do Some Research

Use Technology and Network

CONCLUSIONIt is often said that “economy is the effect for which entrepreneurship is the cause". The development of economy is usually associated with its industrial development. An entrepreneur is a person who organises the factors of productions-land, labour and capital, and establish a business venture and carries out the operations in the business in a profitable manner.

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