Published on February 22, 2010
THE ROLE OF ENTREPRENEURSHIPS IN SMEs : THE ROLE OF ENTREPRENEURSHIPS IN SMEs Definitino of ENTREPRENEURSHIPS : Definitino of ENTREPRENEURSHIPS The modern civilization is the industrial system and the directing force that animates this framework is the business enterprise. In the current economic theory “the businessman” is called entrepreneur. Slide 3: French baker identifies the first definition of Entrepreneur function in the mid 18th century to mean a person who is uncertainty bearer Definition of Entreprenuer : Definition of Entreprenuer The famous economist Joseph Schumpeter defined the theory of entrepreneurship with a new perspective and regarded the entrepreneur as an innovator who has the potential of doing things in a new way. He subdivided this innovation process into following five forms. Slide 5: 1. Introduction of new goods 2. Introduction of new methods of production 3. Finding of new product 4. Discovery of new sources of supply of raw materials. 5. The organization of industry in a new way. Slide 6: According to Peter Kilby, an entrepreneur in an underdeveloped country performs a wide range of activities including perception of market opportunities, combining and managing factors of production, introduction of production techniques and products etc. THE ROLE OF ENTREPRENEURSHIPS IN SMEs : THE ROLE OF ENTREPRENEURSHIPS IN SMEs Entrepreneurship was defined by Cole (1959), “a purposeful activity (including an integrated sequence of decisions) of an individual or group of associated individuals who undertake to initiate, or organize a profit oriented business unit for the production or distribution of economic goods or services”. Slide 8: Entrepreneurship : Entrepreneurship is a way of life. It is a driving force that compels you to do more, move faster, and go farther than anyone else, even in the face of high risk and uncertain outcomes. Characteristics of Entrepreneurs : Characteristics of Entrepreneurs 1. Need for achievement: It is the prime psychological derive that motivates the entrepreneur it brings behavior motivation towards accomplishment, i.e. in achieving a goal that possesses reasonable challenge to an individuals competence such an entrepreneur is energetic but not a gambler. His motivation is the product of a scientific assessment of his energies and the challenge. Characteristics of Entrepreneurs : Characteristics of Entrepreneurs 2. Desire for Responsibility : Entrepreneur prefers to use his own resources and to be personally responsible for the results. He can perform well in groups particularly when he can influence the results in some specific way. Characteristics of Entrepreneurs : Characteristics of Entrepreneurs 3. Preference for Moderate Risk : Always seeking high level of performance consistent with the possibility of achievement. 4. Perception for the Probability of Success This consists in collecting and analyzing facts and thereafter falling upon his own self-confidencefor accomplishing the task. Characteristics of Entrepreneurs : Characteristics of Entrepreneurs 5. Future Oriented: He plans and thinks in the future. He anticipates possibilities that lie beyond the present. 6. Stimulated by Feedback Irrespective whether the signals about his performance are good or bad, he draws his inspiration from the feedback. Characteristics of Entrepreneurs : Characteristics of Entrepreneurs 7. Energetic Activity He exhibits a high level of energy than an finding out novel ways of getting task done. 8. Skill in Organizing Entrepreneurs have remarkable skill in organizing work and people. They make objective selection of individuals in conformity with their skill in solving a specific problem. Characteristics of Entrepreneurs : Characteristics of Entrepreneurs 9. Attitude Towards Money His attitude towards money is cavalier, i.e. money is not a principal obsession. He values money but not for itself. Money acts as a measure of his accomplishment, a token of his achievement rather than a commodity to be hoarded. Qualities of an Entrepreneur : Qualities of an Entrepreneur 1. Mental Ability: It consists of :(a) overall intelligence, (b) creative thinking, i.e. the ability to adapt to various situations, (c) analytical ability, i.e. ability to systematically analyze the business problems. Qualities of an Entrepreneur : Qualities of an Entrepreneur 2. Human Relation Ability: It is demonstrated by emotional stability, skill in interpersonal relations, sociability, tactfulness, empathy (to put oneself to another’s place). Qualities of an Entrepreneur : Qualities of an Entrepreneur 3. Communication Ability: It is the skill in conveying information to others so that understanding is created. Qualities of an Entrepreneur : Qualities of an Entrepreneur 4. Technical Knowledge : The expertise in such areas as personal selling techniques, operating a complex piece of equipment, analysis and interpretation of financial records etc Qualities of an Entrepreneur : Qualities of an Entrepreneur 5. Decision Making Ability: The skill in selecting satisfactory course of action from among various alternatives. 6. Conceptual Ability: The ability to comprehend the organizational structure and how each units fits into the whole. It enables him to recognize opportunities.