ENTREPRENEUR AND ENTREPRENEURSHIP

NO	ENTREPRENEUR	ENTREPRENEURSHIP
1	Refers to a person	Refers to a process
2	Is a visualiser	Is a vision
3	Is a creator	Is a creation
4	Is an organizer	Is an organization
5	Is an innovator	Is an innovation
6	Is a technician	Is a technology
7	Is an initiator	Is an initiative
8	Is a decision- maker	Involves decision making
9	Is a planner	Involves planning
10	Is a leader	Involves leadership

DIFFERENCE BETWEEN ENTREPRENEUR & MANAGER

No.	ENTERPRENEUR	MANAGER
1	The main motive of an entrepreneur is to start a venture by setting up an enterprise. He understands the venture for his personal gratification.	The main motive of a manager is to render his services in an enterprise already set up by someone else.
2	An entrepreneur is the owner of the enterprise.	A manger is the servant in the enterprise owned by the entrepreneur.
3	An entrepreneur being the owner of the enterprise assumes all risk and uncertainty involved in running the enterprise.	A manger is a servant does not bear any risk involved in the enterprise.
4	The reward an entrepreneur gets for baring risks involved in the enterprise is profit which is highly uncertain.	A manger gets salary for the services rendered by him in the enterprise.
5	Entrepreneur himself thinks over what and how to produce goods to meet the changing demands of the customers. Hence, he acts as an innovator also called as a change agent.	A manager simply executes the plan prepared by the entrepreneur. Thus, a manger simply translates the entrepreneur’s ideas into practice.
6	An entrepreneur needs to possess qualities and qualification like high achievement motive, originality in thinking, foresight, risk bearing, ability and soon.	On the contrary a manger needs to possess distinct qualifications in terms of sound knowledge in management, theory and practice.

QUALITIES OF ENTREPRENEURSHIP

The qualities that contribute to the success of an entrepreneur are as follows: -

1. Risk Taking: - Entrepreneurs are moderate risk takers. They enjoy he excitement of a challenge, but they do not gamble. Entrepreneurs avoid low- risk situations because there is a lack of challenge. They avoid high risk situations because they want to succeed. They like achievable challenges. They do not tend to like situations where the outcome of a quest depends upon a chance and not on their efforts. They like to influence the outcome of their quest by putting in more efforts and then experiencing a sense of accomplishment.

A risk situation occurs when an entrepreneur is required to make a choice between two or more alternatives whose potential outcomes are not known and must be evaluated in advance, with limited information. A risk situation involves potential gain and potential loss. As the size of the business expands the problems and opportunities become more numerous and complex. Business growth and development require an entrepreneur not to be afraid of taking decisions and certain risks. Most people are afraid to take risks because they want to be safe and avoid failure. An entrepreneur always takes a calculated risk and is not afraid of failure.

2. Self- Confidence: - A man with self – confidence has clear thoughts and well- defined goals to achieve in his life. An entrepreneur gets into business or industry with a high level of self- confidence. He is able to evaluate his competencies and capabilities in a realistic manner. He can set realistic and challenging goals. He is confident of achieving these goals. He possesses a sense of effectiveness, which ultimately contributes to success of his venture. He puts forward his case confidently and gets needed help from concerned agencies/ authorities.

3. Optimist: - An entrepreneur is able to visualize the hidden opportunities in the environment and translate them into business realities. An entrepreneur exhibits a positive and optimistic attitude towards such opportunities. The entrepreneur approaches his task with the hope of success and not with a fear of failure. In the process of accomplishing his task he may also fail but the failure experience does not change his thinking. He is always an optimist in his outlook. The positive outlook develops a drive in the entrepreneur to attempt new things and innovate.

4. Need for achievement: - The need to excel known as achievement is a critical factor in the personality of an entrepreneur. People with high need for achievement have desire for success in competition with others or with a self- imposed standard of excellence. They try to accomplish something new and try to innovate themselves in longterm goals. They try to accomplish challenging tasks. They know their own strengths and weaknesses, the facilitating factors and constraints in the environment and the resources needed to accomplish their tasks. If the objectives are accomplished they feel elated.

5. Need for independence: - The need for independence is the prime characteristic that has driven the entrepreneurs to start their own business. These entrepreneurs do not like to be controlled by others. They do not wait for direction from others and choose their own course of action. They set their own challenging goals and put efforts to achieve this goal. The independence provides opportunity for trying out new ideas and helps them achieve their goals.

6. Creativity: - Entrepreneurs are highly creative people. They always try to develop new products, processes or markets. They are innovative, flexible and are willing to adopt changes. They are not satisfied with conventional and routine way of doing things. They involve themselves in finding new ways of doing the things for the better.

7. Imaginative: - Successful entrepreneurs possess a high degree of imagination and foresightedness. Entrepreneurs have a great vision. Knowing the present and the past the entrepreneur is able to predict the future events the business more accurately than others. It is because of their visionary nature and power of imagination that helps them in anticipating problems and evolving actions strategies for such problems.

8. Administrative ability: - A successful entrepreneur is always a good administrator. He knows the art of getting things done by other people without hurting their feelings of self- respect. He has strong motivation towards the achievement of a task and puts in necessary efforts in getting things done by others.

9. Communication ability: - Communication ability is the ability to communicate effectively. Good communications also means that both the sender and the receiver understand each other and are being understood. An entrepreneur who can effectively communicate with customers, employees, suppliers and bankers will always succeed in their business.

10. Clear objectives: - An entrepreneur has clear objectives as to the exact nature of the business, the nature of the goods to be produced and the subsidiary activities to be undertaken. A successful entrepreneur has the objective to establish the product to make profit or to render social service.

11. Business Secrecy: - An entrepreneur who is successful always guards his business secrets. Leakage of business secrets to trade competitors is a serious matter; therefore an entrepreneur should carefully guard it. An entrepreneur must be able to make a proper selection of his assistant since most of the time it is the assistant who leaks the trade secret.

12. Emotional stability: - The most important personality factors contributing to the success of an entrepreneur are emotional stability, personal relations, consideration and tactfulness. An entrepreneur must maintain good relations with the customers if he wishes to enjoy their continued patronage. He must also maintain good relation with his employees, whom he shall motivate to perform their jobs at a high level of efficiency. An entrepreneur who maintains good human relations with customers, employees, suppliers and the community has a better chance to succeed in his/ her business.

13. Open-mindedness: - Open- mindedness means a free and frank approach in accepting one’s own errors and change for the better. An  entrepreneur must be willing to learn from his past experience, mistakes and moulds himself for better.

14. Technical knowledge: - Technical knowledge implies knowledge about the product, process or technology used in manufacturing. An entrepreneur who has reasonable level of technical knowledge will always be successful. Technical knowledge is easy to acquire if the entrepreneur tries hard to acquire it.

15. Patience: - Patience means ability to wait. Patience also means doing the work and waiting for the result. A certain amount of patience is necessary in any type of vocation. An entrepreneur should not wait for actions but can certainly wait for result for his efforts.

16. Hard working and energetic: - Ability and willingness to work hard is an important quality of an entrepreneur. A person having physical and mental stamina to cope with the hard work and human relation is fit to become a successful entrepreneur. By carrying out well- planned and systematic work, success is always the end result.

17. Good organizer: - Entrepreneurs are good organizers of resources like men, machines, materials and money needed to start and run the business smoothly. They can convince the employees, investors, customers and co- ordinate the activities of individuals and groups in the accomplishment of business objectives. An entrepreneur works like a coordinating force among the resources, mould and manages them effectively.

STAGES OF EVOLUTION OF ENTREPRENEURSHIP

The evolutionary process of entrepreneurship activities may be divided into the following broad stages:

1. Hunting Stage: - The primary stage of the evolution of the economic life of man was hunting stage. Wants were limited and very few in numbers. The family members themselves satisfied problems of food, clothing and shelter. Producers were the consumers also. Robinson Crusoe, living in the deserted island, satisfying his own requirements had no knowledge of business. People in some parts of Africa and India still lead this type of life. In this stage problems of production and distribution were not complexed since wants were simple and limited.

2. Pastoral Stage: - With the progress of mankind gradually mental understanding developed and people started realizing that instead of killing animals, they should breed and rear them. Thus cattle breeding encouraged the use of milk, and they had to think in terms of grazing areas for their cattle. The surplus milk, meat and other related products were spared of exchange. This stage can be termed as the first stage of economic development and the beginning of commerce.

3. Agricultural Stage: - In search of grazing areas, they further realized that they should grow plants as food for animals. They started testing some grain products and slowly developed a taste in plants and the land was used for cultivation. Groups of persons started living together on their agricultural fields, which were subsequently converted into small villages with their farms. Free exchange of goods was started and the activities were also divided to the extent of division of labor at the village level to complement the needs of each other. Initially each village was self sufficient, but later they began small trading activities on barter basis.

4. Handicraft Stage: - In the agricultural stage, people started learning the use of cloth made of cotton products, and they developed the segments of the workers for different activities. Cottage scale setup was developed at the village level to nearby villages, and in exchange they brought requirements either to consume themselves or for their village friends. Since the demand for gold coins, silver coins, skin and hide etc increased the activities of cobblers, gold smiths, and blacksmiths, laborers also rapidly increased, and caste system was also formed on the basis of activities they did. Everybody selected their job according to their own choice and taste.

5. Present Industrial Stage: - The use of mechanical devices and the commonly acceptable form of monetary system accelerated the growth of entrepreneurship activities. The progress of science and the increase in the means of transportation and communication enabled to travel widely and the markets were developed in the country and abroad.

FAMILY BUSINESS IN INDIA

In India, family business accounts for about 70prcent of the total sales and net profits of the biggest 250 private sector companies. Big families’ have carved up the big industries. In vehicles, for example, the Tatas make Lorries, the Birlas make ambassador cars, the Bajaj family makes two wheelers and the Mahindras make jeeps. They diversified into any business where they could get a permit to operate. Borrowing, mainly from public sector institutions, was easy, and company law makes it simple to control subsidiaries through very small shareholdings. The Tata Empire, for example, embraces some 70 companies, making everything from tea to watches in which the parent company’s average stake is rarely above 15 percent.

Entrepreneurship is not just a way to- increase the level of innovation and productivity of organizations, although it will do it. More importantly, it is a way of initiating vast business so that work becomes a joyful expression of one’s contribution to society. The Indian entrepreneur, intrapreneur and/or manger of the 90’s have to be molded in psycho- philosophy rooted in the Indian context and values.

“The crisis in business is spiritual” says Prof. Sitangshu Kumar Chakraborty,

“All management ideas till now have been external directed paradigms, developing behavior, skills, not character, and values. But meaning and richness must flow from mind to work, not the other way. We need a fundamental shift from the current reductionism, fragmentize and materialistic paradigm to one which recognizes consciousness and spirit as the right approach”.

The concept of entrepreneur and entrepreneurship incorporates basic qualities of leadership, innovation, enterprise, hard work, vision and maximization of profits. All his socio-economic, organizational and society and the community. He is committed to progress. He is a catalytic agent of development and change. Personal satisfaction and monetary rewards are blended with social betterment and welfare of mankind.

In August 1992, with their combined savings of Rs. 25,000, Alka and Anupam Joshi launched premier clothing as an export- oriented unit. The premier clothing has been licensed to market, for the first time, The Disney babies’ range of products in India.

Having several information mail- order companies, not to mention store chains, in the bag isn’t enough for Joshi. Now, he’s planning a move into the booming readymade shirts business. As always, Joshi plans to hedge his bets: he’s talking to some foreign companies about starting off by producing shirts for them. That’s clearly part of his philosophy of manufacturing for a readymade market. And, as in the case of the Disney babies’ line, to a ready- made mindset, either ways, it’s a premier strategy.

Chandan Sumaya look plunge in 1985 armed with only” a passion for cars” borrowing Rs 30,000 from his mother to float Kent. This name he chose because it rhymed with rent and had an international ring- car. Apparently, he fell in love with the business while helping his uncle run one. Working out of his home in Bombay’s Nepean Sea Road, Sumaya installed a desk and a telephone in the front half of his garage; the car took up the rest. Only by the end of the second year could he afford to invest in two more Ambassadors

cars.

He has invested in a fleet of 136 cars and concentrates on the corporate sector, where they are market leaders. Kent Cars is now poised to drive into the national market place through the franchising route. Whether or not he does as well in these cities as he is in Mumbai, Chandan Sumaya has driven a long way from the home garage he started from. And that’s the spirit of Kent.