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Monday, 17 December 2018

Difference between Entrepreneur and Manager

     Key Differences between Entrepreneur and Manager

 15 differences between an Entrepreneur vs Manager: 

 1) Meaning: An Entrepreneur is one who creates an Enterprise 
                    Manager controls and administers the Enterprise 

2) Focus: An Entrepreneur focuses on starting and establishing an enterprise. 
               Manager's focus area is ongoing operations of the existing business. 

3) Resource Orientation: An Entrepreneur pursuits opportunity beyond resources controlled. He/She doesn't get constrained by resources.
     A manager uses resources available to him/her. A Manager gets constrained by resources at disposal.

4) Primary Motive: An Entrepreneur'ss Primary motive is Achievement while Manager's  Prime Motive is Power. 

5) Approach to task: An Entrepreneur can afford to have an informal approach to the task but Manager should always approach task formally. 

6) Status: An Entrepreneur is Owner of the Enterprise while Manager is an Employee. 

7) Primary Econmic Reward: Profit is the main reward of an Entrepreneur while Manager work for Salary. 

8) Decision Making: Entrepreurs can take decisions based on their Intutions but Managers can't afford to do that. They always take calculative decisions. 

9) Risk Orientation: Entrepreneur is Risk-Taker while Manager is Risk-Averse. 

10) Driving Force: Entrepreneur is driven by Creativity and innovation while Manager is driven by maintaining Status Quo. He is happy with  maintaining existing affairs. 

11) Specialization: An entrepreneur should know all the aspects of business. Manager needs to be specialized in his department. 

12) Scale of Operations: An Entrepreneur starts a small business and when it gets larger he recruits Manager. Manager comes into play only when Organization grows. 

13) Primary Skill requirements: Entrepreneurs should have creative and innovative mind, should be able to spot the opportunities. They should be able to mobilize resource and should have good negotiation skills. Manager should have good Organizing, System Design,Operating procedures and people management skills. 

14) Approval: Entrepreneurs do not need anyone's approval to go ahead with his ideas while Managers needs approval from their bosses to implement their ideas. 

15) Independence: Entrepreneur is an Independent person while Manager reports to his Boss. He can't reallly enjoy freedom of work as Entrepreneur does. 

Characteristics of an Entrepreneurship

                    Characteristics of an Entrepreneurship 

 An Entrepreneurship is the pursuit of opportunity beyond resources controlled - Prof. Howard Stevenson 

  It is important to understand that an Entrepreneurship is a Process. So when you talk about the Characteristics of an Entrepreneurship, you must talk about the characteristics of that process and not about the Characteristics of the Entrepreneur who is carrying out that process. So please don't mix-up characteristics of Entrepreneurship with Characteristics of an Entrepreneur. Let us discuss some Characteristics of Entrepreneurship.

10 Characteristics of an Entrepreneurship: 

1) Systematic Process: An Entrepreneurship is a Systematic process of creation, management and controlling of a venture. It is not a random activity. It is a process of step-by-step pursuit of an opportunity purposely. Entrepreneurs aren't born. Anyone can develop Knowledge, Skills, Expertise, temperament, Entrepreneurship mindset required to follow the systematic process of Entrepreneurship. It is certainly not a God-Gift. 

2) Lawful Pursuit: Entrepreneurship is about creating a legal entity. There are some legal compliances which one has to follow while pursuing the opportunity purposely. Just because it involves risk, one shouldn't think that illegal ways are accepted in Entrepreneurship. 

3) Value Creation: The purpose of Entrepreneurship is a creation of Value. It can be personal, Social, Political or even cultural value. 

4) Creation of Venture: If someone inherits a business from his Father, he/she can't be called Entrepreneur. The most important characteristics of Entrepreneurship is this process helps 'Creation of an Organization, a Venture'. Such ventures start with some ideas and produce something of value, create a new market and new customers etc. 

5) Economic Process: An entrepreneurship is an economic process. Whether one runs a Business or Non-Profit Organization it involves monetary transactions. Profit maximization of stakeholders is the main goal of a For-profit organization. 

6) Dynamic force: Entrepreneurship is a dynamic process. A venture is carried out in Socio-political, Economical, technological environments which keeps changing time to time. Entrepreneurship evolves in such a dynamic environment, therefore it is a dynamic force. 

7) Risk-bearing/ Risk Assumption: Entrepreneurship involves different kinds of risks wiz. Financial Risk, Technological Risk, Career Risk, Social Risk, Psychic Risk etc. Risk of failure is always high when one starts a venture. The essence of entrepreneurship is the 'willingness to assume risk' arising during a pursuit of the opportunity beyond resources controlled. Ideally, the risk needs to be moderate and calculated. 

8) Innovation-oriented: An Entrepreneurship involves a continues search of new ideas. Innovation is the cost-saving and revenue-enhancing for the organization. Entrepreneurship involves creative thinking. Innovation can be about new products, services, markets, ways of distribution etc. To remain competitive and relevant with time Entrepreneurship always needs to be innovation-oriented. 

9) Rewards oriented: Entrepreneurship process involves reaping of rewards. A for-profit business starts a new business only in the hope of earning good profits. He will invest his energy, Efforts, Money only when he will see profit potential in the business model. While Non-Profit organizes has different rewards in mind like Satisfaction of Social work they do, Recognition of their Brand in Society, Self-development, Reputation and Independence of work. Without rewards, entrepreneurship is just a theoretical leisure activity. 

10) Challenging yet Empowering Process: Entrepreneurship is an empowering process. It boosts the economy of a nation due to its very nature of the creation of ventures which in turn creates products and services, innovates new technologies and sometimes even fields. A man who pursues an opportunity with inadequate resources in hands gets empowered during the process of the growth of the organization. Entrepreneurship is a challenging process but at the same time, it is empowering too which brings a lot of sense of independence. 

- Deepak Doddamani
Founder, Ashwamedh Foundation, Founder and CEO Stocksbaazigar 
(MMS, B.Tech, NET in Management, NCIAP, NCMP Level - 4) 

Sunday, 16 December 2018

Definitions of Entrepreneur

                            Definitions of Entrepreneur

Lets see different definitions of 'Entrepreneur' 

1) An Entrepreneur is a person who sets up a business or businesses, taking on financial risks in the hope of profit.                    (Dictionary)

2) An Entrepreneur is an individual who, rather than working as an employee, founds and runs a small business, assuming all the risks and rewards of the venture. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services and business or procedures.   (Investopedia)

3) An Entrepreneur is one who organizes, manages and assumes the risks of business or enterprise.    (Merriam-webster)

4) An Entrepreneur is someone who exercises an initiative by organizing a venture to take benefit of an opportunity and as a decision maker decides what, how, and how much of good or service will be produced. An entrepreneur supplies risk capital as a risk taker, and monitors and controls the business activities. The entrepreneur is usually a sole proprietor, a partner, or one who owns the majority of shares in the incorporated venture.     (businessdictionary)

5) Entrepreneurs are someone who starts their own business, especially when this involves seeing a new opportunity.    (Cambridge Dictionary) 

6) An Entrepreneur is an individual who identifies a need in the marketplace and works to fulfill it.      (searchcio)

7) An Entrepreneur is a person who sets up a business with the aim to make a profit. (Oberlo) 

8) An Entrepreneur is a person who sets us businesses or business deals. (collinsdictionary)

9) An Entrepreneur is the founder of the enterprise who identifies opportunities, assembles skilled manpower and necessary resources for the operation of the enterprise, attracts persons and financial institutions and takes psychological responsibility for managing the enterprise successfully.  (iedunote)

10) An entrepreneur is a person who takes an idea, product or service and does whatever is necessary to introduce it to the marketplace where it can produce revenue (yourdictionary)

11) An Entrepreneur is a person of very high aptitude who pioneers change, processing characteristics found in only a very small fraction of the population. The entrepreneur word originates from the French word entreprendre which means 'to undertake'.In the business context, it means to start a business.    (QuickMBA)

12) An Entrepreneur is a person who starts a new company, who takes risks associated with starting the enterprise, which may require venture capital to cover start-up costs. 
(Campbell Havey)

13) A risk taker who has the skills and initiative to establish a business (Houghton Mifflin)

14) The entrepreneur initiates, organizes, manages and controls the affairs of a business unit.  (YourArticlelibrary) 

Definition of Entrepreneurship by Prof. Howard Stevenson explained

   Definition of Entrepreneurship by Howard Stevenson

Howard H. Stevenson (21 June 1941): 

Prof. Howard H. Stevenson is credited with defining the working definition of 'Entrepreneurship' as 'the pursuit of opportunity beyond the resources you currently control'. He is the Sarofim-Rock Baker Foundation Professor Emeritus at Harvard University. He has written 8 books and 41 articles in his life so far. He is considered as 'Father of Entrepreneurship' at Harvard University because he is responsible for creating many Entrepreneurs from HBS, establishing the best Entrepreneur Cell in HBS, increasing faculties from 2 to 35 who work in the Subject of Entrepreneurship, academic contribution to the subject of Entrepreneurship and most importantly raising more than $600 million in Philanthropic support for Education of Students, Business, Science and Healthcare. Forbes Magazine described him as the 'Lion of Entrepreneurship' at Harvard in an Article in 2011. INC Magazine described Stevenson's definition as the 'best answer ever'. Let us discuss the definition of Entrepreneurship given by Prof. Howard Stevenson in detail.

Discussion on the definition of Entrepreneurship by Prof. Howard Stevenson: 

According to Stevenson "Entrepreneurship is the pursuit of opportunity beyond resources controlled." 

All the earlier definitions of Entrepreneurship were revolving around ' starting a new enterprise'. These definitions talked about the risk involved and innovation but the problem with these definitions was it didn't include 'Social Entrepreneurship' and only focussed on profit potentials. Entrepreneurship should not be limited only to Monetary value creation, it should also include societal, political even cultural value creation. So instead of defining entrepreneurship on the detailed process of Entrepreneurship or what entrepreneurs do, it was important to explain the Philosophy of Entrepreneurship. I feel Prof Howard Stevenson's definition give us exactly that. 

Prof. Howard Stevenson

Entrepreneurship is the pursuit of opportunity beyond resources. 

Pursuit: As per the Cambridge English Dictionary, pursuit means the act of trying to achieve a plan, activity or situation usually over a long period of time. With singular relentless focus entrepreneurs pursuit their entrepreneurial venture. 

Opportunity: Entrepreneurs don't wait for an opportunity, they create one. They find out the need gap and then create goods or services to fill that need gap. This brings the important traits in the picture that is - Entrepreneurs should have 'Creativity and Innovative thinking'. Entrepreneurs are always looking for an opportunity and when they get it they tap is immediately to gain first mover's advantage. This opportunity can be about the innovative new product, devising a new business model, creating a better and cheaper version of the existing product, or targeting the same product to new markets,  etc.  

Beyond Resources: These two words of the definition differentiates Entrepreneurs from Administrator. Administrator allocates the resources which he has to carry out the business of the enterprise while Entrepreneurs starts his work with whatever resources he has. He has this 'Risk Taking' capacity to create a new business in resources constraints. Many founders bootstrap, they borrow funds from family and friends to start their enterprise. They keep their expenses as low as possible. They rely more on their expertise, team and hard work and determination. They never control the resources which are required to make the company self-sustainable. They plow-in the profits in the business to grow it organically first and when it becomes self-sustainable they start looking for growth capital by showing the profit potentials of the company to investors. It is wrong to generalize Entrepreneurs as insane 'risk takers'. They do take moderate and calculated risks. These risks can be related to demand risk, technology risk, execution risk, and financial risk etc. 

This is how Howard Stevenson's definition of Entrepreneurship includes a summary of all the definitions previously used and all the definitions which will be devised in future. It is very deeply thought definition created from the long experience and expertise in this subject. This definition is universal and can be used for entrepreneurship in any sector. Harvard Business School teaches this definition of Entrepreneurship to its students and we all know the successful track record of HBS in creating and developing Entrepreneurs for America. 

- Deepak Doddamani,
Founder of Ashwamedh Foundation, Founder and CEO of Stocksbaazigar
(MMS, B.Tech, NET in Management, NCIAP, NCMP Level - 4) 

Saturday, 15 December 2018

Definitions of Entrepreneurship

                          Definitions of Entrepreneurship 

(courtesy: Google Images)

Entrepreneurship: The activity of setting up a business or businesses, taking on Financial risks in the hope of profit.                           (dictionary)

Entrepreneurship: Entrepreneurship is the act of creating a business or businesses and scaling it to generate profit.                         (oberlo)

Entrepreneurship: The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. ( 

Entrepreneurship: Entrepreneurship is the process of designing, launching and running a new business, which is initially a small business.    (Wikipedia)

Entrepreneurship: Entrepreneurship is both the study of how new businesses are created as well as the actual process of starting a new business - the term is used interchangeably.     (Shopify) 

Entrepreneurship: Entrepreneurship is the state of being an entrepreneur, or the activities associated with being an entrepreneur.    (collinsdictionary) 

Entrepreneurship: An Entrepreneur is a person who undertakes a venture with some profit potential and involving in a considerable amount of risk, therefore, entrepreneurship is the venture undertaken by the entrepreneur.  (toppr) 

Entrepreneurship: Entrepreneurship is the process of creating something new with a value of devoting the necessary time and effort, assuming the accompanying financial, psychic and social risks and receiving the resulting rewards of monetary and personal satisfaction and independence.      (Robert D. Hisrich and Michael P. Peters)

Entrepreneurship: Entrepreneurship involves the identification and exploitation of opportunities to create value that can be economic and/or social. (Morrison 

Entrepreneurship: Entrepreneurship refers to acts of organizational creation, renewal, or innovation that occur within or independent of an existing organization (Sharma and Chrisman) 

Entrepreneurship: It is the process of starting a business or an organization for profit or social need.  (managementstudyguide) 

Entrepreneurship: Entrepreneurship is defined as an activity that involves the discovery, evaluation, and exploitation of opportunities to introduce new good and services, ways of organizing, markets, processes, and raw materials through organizing, markets, processes, and raw materials through organizing efforts that previously had not existed (Ventakaraman and Shane) 

Entrepreneurship: Entrepreneurship is the process of discovering new ways of combining resources. 

These are different Definitions of Entrepreneurship. But the most important definition of an Entrepreneurship is formulated by Professor Howard Stevenson the father of Entrepreneurship studies as Harvard Business School. According to Stevenson

Entrepreneurship is the pursuit of opportunity beyond resources controlled.