ENTREPRENEURSHIP EDUCATION
CHAPTER ONE
INTRODUCTION TO ENTREPRENEURSHIP
Introduction
Small scale enterprises play a major role in the development of a country’s economy. Small
enterprises create many jobs, provide a variety of goods and services, contribute a lot of revenue
and promote the use of locally available resources.
Terms used in entrepreneurship
i) Entrepreneurship
The term entrepreneurship has been described by different people in different ways.
Entrepreneurship is the process of scanning the environment in order to identify a business
opportunity, gathering resources with the aim of establishing a profit making enterprise, under
conditions of risk.
ii) Entrepreneur
The term entrepreneur is coined from a French verb ‘entreprere’ which means to undertake.
Various scholars have defined the term entrepreneur in different ways but all place ePmphasis on
the entrepreneur;
1. Bringing innovation and creativity into the enterprise.
2. Taking calculated and moderate risks and
3. Facing uncertainties
An entrepreneur is someone who detects a previously untapped opportunity to make some profits
(either by lowering the costs of producing the existing goods /services or by creating new ways
for people to satisfy their needs or wants through new products). They then brings together the
necessary factors of production to exploit these opportunities.
Richard Cantillon defines an entrepreneur as a person who buys factor services at “certain”
prices, with a view to sell their product at “uncertain” prices in the future.
David McClelland defines an entrepreneur as a person with a high need for achievement,
someone who has control over the means of production and produces more than they can
consume in order to sell (or exchange) it for income.
Joseph Schumpeter defines an entrepreneur as a person who carries out new combinations of
means of production within an organization, while distorting the routine of the existing
products/services, to set up new products and services.
iii) Intrapreneur
An intrapreneur is an employee who uses entrepreneurial skills to generate profits for the venture
they works for.
iv) Intrapreneurship
It is the practice of entrepreneurship by employees within an organisation. Intrapreneurship is a
novel way of making organisations more profitable where imaginative employees entertain
1
,entrepreneurial thoughts. It is a significant method for companies to reinvent themselves and
improve performance.
Characteristics Of Intrapreneurship
Diversification: Intrapreneurship promotes teams with people of different gender, age groups,
culture and fields.
Innovative Approach: It is a creative initiative for the progress of both the employee and the
company.
Restoration Concept: An intrapreneur adds value to an existing company by improving the
products, services, methods or perceptions.
Mutual Benefit: Through intrapreneurship, an employee achieves empowerment and self-
actualisation; and the company also grows remarkably.
Calculated Risk: The risk involved in an intrapreneur’s project is well analyzed and planned
before it is onboard.
No Investment by Intrapreneur: The intrapreneur is the brain behind the idea but need not put
even a penny into the project. The company funds it at every stage of business.
Profit-Sharing Agreement: In many organizations, a profit-sharing agreement is signed
mutually between the company and the employee
Importance of Entrapreneurship
Penetrate New Markets: An intrapreneur’s idea sometimes lead to availing of the
business opportunities prevailing in the new or existing market.
Employee Empowerment: The company can strengthen its bond with the workforce by
granting them authority along with responsibility.
Optimum Human Resource Utilization: Intrapreneurship provides an opportunity to
the employees for outperforming their key responsibility area.
Economic Stability: It is also undertaken to address market instability and economic
downturns through rapid innovation.
Innovative Growth: Idea generation is the basis of development. Thus, to nurture an
entity well, intrapreneurs play a significant role in the business.
Intrapreneurship Process
Step 1: The first step is to encourage the workers to put forward their views and opinions. Also,
the employees should be made familiar with the person or authority in front of whom he/she can
present the idea.
Step 2: The next is analyzing the compatibility of the idea with the organizational need, mission,
objectives, values, vision, consumer demand, etc.
Step 3: Now is the time to inspect the idea from different perspectives to seek any scope of
betterment.
Step 4: This step is quite crucial as it aims at getting the approval on idea implementation from
all the related parties like team, associates, investors and even customers (in case of industrial
buyers).
Step 5: The final feasibility test of any new project can be done by identifying the SWOT
(strengths, weaknesses, opportunities and threats) for both, the idea and the person himself or
herself.
2
,Step 6: After the idea is well tested for compatibility, applicability and feasibility, it is modified
and crafted such that it becomes workable for the organization.
Advantages of Intrapreneurship
Advantages of Entrepreneurship
Initiates Idea Sharing: An intrapreneur may provide a different perspective than that of
the management. This idea can act as a robust input for the company.
Identifies Employee Potential: An employee has a lot of capabilities which can be
explored by bringing out the intrapreneur within him/her.
Provides Competitive Edge: Intrapreneurs are considered to be a highly efficient
workforce who have excellent problem solving and competitive skills.
Develops Leadership: Intrapreneurs emerge as leaders when they are given a proper
chance and thus, can set examples for other employees too.
Ensures Employee Engagement: It is a pragmatic way of keeping the employees
immersed in their work, thinking innovative solutions to every problem and evolving as
intrapreneurs.
Brings a Positive Change: Innovative ideas and analytical thinking is mostly assertive
for the company’s development and progress.
Hurdles in Entrepreneurship
When an organization head towards adopting entrepreneurship as a part of its corporate culture,
the following barriers may arise on the way of making such improvements: Hurdles in
Intrapreneurship
Multiple CEOs: If a company has more than one CEO with different mindsets, then the
employee may not get equal support from each one of them, for intrapreneurship practice.
Cultural Issues: Many of the other employees who do not take intrapreneurship seriously
or keep themselves away from such practice may raise problems.
Talent Acquisition Problems: Identifying an intrapreneur within an employee is a
challenging task for the human resource department.
Adverse Market Response: The consumers sometimes feel that the innovated product fail
to meet their requirements.
Lack or Shift of Suitable Resource: An intrapreneur leaving the organization or the
company unable to appoint one, may lead to its failure.
Example
Happy meal, as we all know, is a kids centric meal box from McDonald’s is an intrapreneurship
idea.
Dick Brams, one of the regional managers of the brand at St. Louis, developed an idea of serving
the kids with a complete meal. He came with an innovation of making a box of food and
beverage items in small quantities, in the year 1977.
When he presented the whole thing in front of the management, his idea was instantly taken into
consideration. The company thus introduced the ‘Happy Meal Box’ in the year 1979, which was
a great success.
3
, Entrepreneur refers to a person who set up his own business with a new idea or concept.
Intrapreneur refers to an employee of the organization who is in charge of undertaking
innovations in product, service, process etc. Uses own resources.
v) An enterprise
It is a business organisation that provides goods and services to make profits and has growth
potential.
A business enterprise is a legally recognised organisation designed to provide goods and/ or
services to consumers.
vi) Business person
A person who undertakes any business activity for the purpose of making profit
Self employment
Self employment is a situation in which a person starts and operates a business enterprise. Since
entrepreneurial skills drive people into self employment, entrepreneurship training is therefore
expected to prepare trainees for starting and operating their enterprises effectively.
Self employment is a situation in which individuals create and run/operate their own income
generating activities.
Advantages of self -employment
1. You’re in control
Owning your own business provides you with full control over every aspect of your company
and allows you to structure your work environment the way you want it. Rather than having to
report to someone else or follow preexisting rules and policies, you're able to make those
decisions yourself. You can set your own goals, find work-life balance and create your own
vision.
2. You’re more passionate about what you do
Whether you're starting your own company or freelancing, self-employment allows you to
engage in work that interests you. You have the opportunity to turn your passion, hobby and
strengths into a business and make money doing something that you love. Rather than turning
over your ideas to an employer who may not have the same vision or passion that you do, you
can fully attend to those ideas and bring them to life without any limitations.
4
CHAPTER ONE
INTRODUCTION TO ENTREPRENEURSHIP
Introduction
Small scale enterprises play a major role in the development of a country’s economy. Small
enterprises create many jobs, provide a variety of goods and services, contribute a lot of revenue
and promote the use of locally available resources.
Terms used in entrepreneurship
i) Entrepreneurship
The term entrepreneurship has been described by different people in different ways.
Entrepreneurship is the process of scanning the environment in order to identify a business
opportunity, gathering resources with the aim of establishing a profit making enterprise, under
conditions of risk.
ii) Entrepreneur
The term entrepreneur is coined from a French verb ‘entreprere’ which means to undertake.
Various scholars have defined the term entrepreneur in different ways but all place ePmphasis on
the entrepreneur;
1. Bringing innovation and creativity into the enterprise.
2. Taking calculated and moderate risks and
3. Facing uncertainties
An entrepreneur is someone who detects a previously untapped opportunity to make some profits
(either by lowering the costs of producing the existing goods /services or by creating new ways
for people to satisfy their needs or wants through new products). They then brings together the
necessary factors of production to exploit these opportunities.
Richard Cantillon defines an entrepreneur as a person who buys factor services at “certain”
prices, with a view to sell their product at “uncertain” prices in the future.
David McClelland defines an entrepreneur as a person with a high need for achievement,
someone who has control over the means of production and produces more than they can
consume in order to sell (or exchange) it for income.
Joseph Schumpeter defines an entrepreneur as a person who carries out new combinations of
means of production within an organization, while distorting the routine of the existing
products/services, to set up new products and services.
iii) Intrapreneur
An intrapreneur is an employee who uses entrepreneurial skills to generate profits for the venture
they works for.
iv) Intrapreneurship
It is the practice of entrepreneurship by employees within an organisation. Intrapreneurship is a
novel way of making organisations more profitable where imaginative employees entertain
1
,entrepreneurial thoughts. It is a significant method for companies to reinvent themselves and
improve performance.
Characteristics Of Intrapreneurship
Diversification: Intrapreneurship promotes teams with people of different gender, age groups,
culture and fields.
Innovative Approach: It is a creative initiative for the progress of both the employee and the
company.
Restoration Concept: An intrapreneur adds value to an existing company by improving the
products, services, methods or perceptions.
Mutual Benefit: Through intrapreneurship, an employee achieves empowerment and self-
actualisation; and the company also grows remarkably.
Calculated Risk: The risk involved in an intrapreneur’s project is well analyzed and planned
before it is onboard.
No Investment by Intrapreneur: The intrapreneur is the brain behind the idea but need not put
even a penny into the project. The company funds it at every stage of business.
Profit-Sharing Agreement: In many organizations, a profit-sharing agreement is signed
mutually between the company and the employee
Importance of Entrapreneurship
Penetrate New Markets: An intrapreneur’s idea sometimes lead to availing of the
business opportunities prevailing in the new or existing market.
Employee Empowerment: The company can strengthen its bond with the workforce by
granting them authority along with responsibility.
Optimum Human Resource Utilization: Intrapreneurship provides an opportunity to
the employees for outperforming their key responsibility area.
Economic Stability: It is also undertaken to address market instability and economic
downturns through rapid innovation.
Innovative Growth: Idea generation is the basis of development. Thus, to nurture an
entity well, intrapreneurs play a significant role in the business.
Intrapreneurship Process
Step 1: The first step is to encourage the workers to put forward their views and opinions. Also,
the employees should be made familiar with the person or authority in front of whom he/she can
present the idea.
Step 2: The next is analyzing the compatibility of the idea with the organizational need, mission,
objectives, values, vision, consumer demand, etc.
Step 3: Now is the time to inspect the idea from different perspectives to seek any scope of
betterment.
Step 4: This step is quite crucial as it aims at getting the approval on idea implementation from
all the related parties like team, associates, investors and even customers (in case of industrial
buyers).
Step 5: The final feasibility test of any new project can be done by identifying the SWOT
(strengths, weaknesses, opportunities and threats) for both, the idea and the person himself or
herself.
2
,Step 6: After the idea is well tested for compatibility, applicability and feasibility, it is modified
and crafted such that it becomes workable for the organization.
Advantages of Intrapreneurship
Advantages of Entrepreneurship
Initiates Idea Sharing: An intrapreneur may provide a different perspective than that of
the management. This idea can act as a robust input for the company.
Identifies Employee Potential: An employee has a lot of capabilities which can be
explored by bringing out the intrapreneur within him/her.
Provides Competitive Edge: Intrapreneurs are considered to be a highly efficient
workforce who have excellent problem solving and competitive skills.
Develops Leadership: Intrapreneurs emerge as leaders when they are given a proper
chance and thus, can set examples for other employees too.
Ensures Employee Engagement: It is a pragmatic way of keeping the employees
immersed in their work, thinking innovative solutions to every problem and evolving as
intrapreneurs.
Brings a Positive Change: Innovative ideas and analytical thinking is mostly assertive
for the company’s development and progress.
Hurdles in Entrepreneurship
When an organization head towards adopting entrepreneurship as a part of its corporate culture,
the following barriers may arise on the way of making such improvements: Hurdles in
Intrapreneurship
Multiple CEOs: If a company has more than one CEO with different mindsets, then the
employee may not get equal support from each one of them, for intrapreneurship practice.
Cultural Issues: Many of the other employees who do not take intrapreneurship seriously
or keep themselves away from such practice may raise problems.
Talent Acquisition Problems: Identifying an intrapreneur within an employee is a
challenging task for the human resource department.
Adverse Market Response: The consumers sometimes feel that the innovated product fail
to meet their requirements.
Lack or Shift of Suitable Resource: An intrapreneur leaving the organization or the
company unable to appoint one, may lead to its failure.
Example
Happy meal, as we all know, is a kids centric meal box from McDonald’s is an intrapreneurship
idea.
Dick Brams, one of the regional managers of the brand at St. Louis, developed an idea of serving
the kids with a complete meal. He came with an innovation of making a box of food and
beverage items in small quantities, in the year 1977.
When he presented the whole thing in front of the management, his idea was instantly taken into
consideration. The company thus introduced the ‘Happy Meal Box’ in the year 1979, which was
a great success.
3
, Entrepreneur refers to a person who set up his own business with a new idea or concept.
Intrapreneur refers to an employee of the organization who is in charge of undertaking
innovations in product, service, process etc. Uses own resources.
v) An enterprise
It is a business organisation that provides goods and services to make profits and has growth
potential.
A business enterprise is a legally recognised organisation designed to provide goods and/ or
services to consumers.
vi) Business person
A person who undertakes any business activity for the purpose of making profit
Self employment
Self employment is a situation in which a person starts and operates a business enterprise. Since
entrepreneurial skills drive people into self employment, entrepreneurship training is therefore
expected to prepare trainees for starting and operating their enterprises effectively.
Self employment is a situation in which individuals create and run/operate their own income
generating activities.
Advantages of self -employment
1. You’re in control
Owning your own business provides you with full control over every aspect of your company
and allows you to structure your work environment the way you want it. Rather than having to
report to someone else or follow preexisting rules and policies, you're able to make those
decisions yourself. You can set your own goals, find work-life balance and create your own
vision.
2. You’re more passionate about what you do
Whether you're starting your own company or freelancing, self-employment allows you to
engage in work that interests you. You have the opportunity to turn your passion, hobby and
strengths into a business and make money doing something that you love. Rather than turning
over your ideas to an employer who may not have the same vision or passion that you do, you
can fully attend to those ideas and bring them to life without any limitations.
4
