Entrepreneurial Management | Entrepreneur vs Manager | Types of Entrepreneurship | Great Learning

entrepreneurship has proven to be quite essential over the years since it has the ability to improve standards of living and create wealth not only for the entrepreneurs but also for related businesses entrepreneurs also help drive change with innovation as new and improved products enable new markets that can be developed further entrepreneurial management is the practice of applying entrepreneurial knowledge and utilizing the same to increase the effectiveness of new business ventures as well as small and medium-sized businesses many new entrepreneurs often have ideas for businesses that they want to explore or products they want to create but they lack the practical knowledge that is required to manage a small business effectively thus entrepreneurial management facilitates the innovation inherent in entrepreneurship with a more solid management structure if you are curious to know more about the same stay right where you are because in this course you will explore the creation and management of startup businesses right from the scratch so without further ado let's get started right away [Music] if you haven't subscribed to our channel yet i want to request you to hit the subscribe button and turn on the notifications bell so that you don't miss out on any new updates or video releases from great learning if you enjoy this video show us some love and like this video knowledge increases by sharing so make sure you share this video with your friends and colleagues make sure to comment on the video for any queries or suggestions and i'll respond to your comments hello my name is shantanurana and today i will be teaching you this course on entrepreneurial management by great learning but before we actually get into the depth of this topic it is very very important to understand that what exactly is an entrepreneur whenever we talk about starting a new venture starting a new business it becomes very very important to manage all those things as well and that is the role of management whenever we are talking about entrepreneurship now what is an entrepreneur how he is different from a manager or maybe from a business these are certain things which are extremely important whenever we talk about the journey of an entrepreneur and that is something we will be exploring in this particular course starting from the scratch it is a beginner friendly course and we will be starting from the very beginning how you know an entrepreneur actually start building all these concept what is the role of innovation in that how technology come into comes into the picture all of those things will be starting from the very beginning so let's not waste any time and directly move forward and try to cover the agenda first of all so as you can see on the screen the first thing that we are going to cover is what is entrepreneurial management now in this i am going to give you the definition of entrepreneurial management and what exactly is the role of management when we talk about entrepreneurship then we'll be seeing the difference between entrepreneur versus manager how a manager is different from an entrepreneur the entrepreneur versus businessman so when we generally talk about a business man he generally follows all the traditional concepts all the traditional ways of doing the business but when we talk about entrepreneurship that's all about innovation all about new ventures so we'll be seeing how exactly we can differentiate these two terms then in the fourth uh module we will be seeing the journey of an entrepreneur how it actually starts what is the role of becoming a manager when we are talking about entrepreneur that is also something we will be covering in this course and then steps in entrepreneurial process so there are different steps involved in this each and every step we will be covering in detail then the types of entrepreneurship maybe it's about small business maybe it's about large business maybe it's for some social course all of those things we will be covering here and then entrepreneurship styles in that we will be seeing different different sites you know maybe sometimes each and every person will have a different kind of mindset so whenever we are talking about any entrepreneur also you know the reason that they have started the new venture there can be several reasons behind that so what are those reasons and what has changed uh in certain ways which has changed their style eventually so that is also something we will be covering and then characteristics of entrepreneurship what are the different characteristics that an entrepreneur will be having and in general about entrepreneurship we'll be discussing then how do entrepreneurs uh benefit society do they yes they do now how do they do that what are the certain roles that they play in order to benefit the society that is also something we will be covering and the need for entrepreneurial management so okay we have understood that entrepreneurship is important it is going to benefit the society also it's all about innovation starting the new venture but what is the role of management in that you know when it when we talk about innovation when we talk about starting a new venture why do we need to manage all of that maybe the human resources maybe the financial resources maybe the information resources or maybe any other resources what is the role of management or what is the made of management in that particular area that is the main agenda of this course and that is something we will explore then at the end of this course we will be seeing what is the benefit of entrepreneurial management plan so what is the you know role of planning and plotting in this particular area and how it is actually going to help the entrepreneur so those are certain things that we will be exploring in this particular course so let's not waste any time and just move forward and try to cover each of these modules one by one all right so now that we have understood that what all we are going to cover in this particular course so let's first of all look at the definition of entrepreneurial management what is the role of management when we talk about entrepreneurship that is something we will be exploring in this particular module so as you can see what is entrepreneurship first of all entrepreneurship is the ability and readiness to develop organize and run a business enterprise by risk and initiative to make a profit so what are the what and hows of it whenever we are talking about entrepreneurship the main thing is what ex actually it is all about it is about developing it is about organizing it is also about running what a business enterprise and what is the main goal of it that is to make a profit making the profit or you know maybe it is for some social course also but eventually it is all about making a profit whenever you are talking about entrepreneurship now how do you make that profit by developing organizing or running a business by taking risks by starting something which is not discovered till now or maybe by started something which is actually solving a problem in the world there can be several reasons behind it how you actually solve a probe problem but once a problem is sold you are eventually going to make a profit out of it and that's all entrepreneurship is all about now entrepreneurship is not just about starting a new business it is also about actually it is mostly about innovation taking risks and seeing problems as opportunities whenever there's a problem an entrepreneur that's actually one of the major characteristics of entrepreneurs that they never see problems as problems they see problems as opportunities that what can we do to solve this problem how it can help people how i can make money out of it those are certain areas which are very very important very very crucial when we talk about entrepreneurship so in general you just need to keep in mind that entrepreneurship is all about developing organizing and running a business which is completely new and eventually it's about solving a problem and you are making a profit out of it by taking risks by taking initiatives it's all about innovation that is extremely important when we talk about entrepreneurship now what is the role of management in the field of entrepreneurship so what is entrepreneurial management entrepreneurial management is the discipline of providing the innovation inherent in entrepreneurship a more robust management structure just imagine the situation you have started a new venture everything is going perfectly fine but eventually it is also very very important that when your business is growing you have to manage certain things as well maybe it's the human resources maybe the other resources maybe the financial resources because when a business is growing there will be need of maybe hiring more people there will be need of maybe more funding so all of those things has to be managed starting a business requires innovation requires taking risks abilities requires may be taking initiatives but once that part is done then comes the role of management so management is equally important just like innovation or just like taking risks whenever we are talking about entrepreneurship because if you have started your business with your innovative mind but again you cannot manage it then eventually it is not going to help anyone so we have to make sure as an entrepreneur that we put this world management into the field of entrepreneurship and eventually that entire entrepreneurial journey is managed as well all the resources in it are managed as well so that is extremely important managing a new business necessitates a different set of tools and concepts than managing an existing business that is also extremely important now why entrepreneurial management is completely different from the regular field of management when we talk about general management how it is different from that because when we talk about general management it's about managing the things where business is already existing there is always something which is already established but when we are talking about entrepreneurship then there is nothing which is established as of now we are going to establish there's a new venture that we are going to start now how do you manage certain things in that particular scenario that is entrepreneurial management so it necessitates a different set of rules definitely different set of tools and techniques and concepts in order to manage certain things which is not equal to existing business so that's extremely important then you can manage a growing firm while keeping a startup's originality and enthusiasm alive through entrepreneurial management when we say that you have to manage things even when you're talking about entrepreneurship that does not mean that it's about you know losing the originality or enthusiasm there's nothing like that you can keep the originality alive you can keep the enthusiasm alive and along with that you can manage certain things all the resources in order to make sure that each and every process in that particular new venture is free is smooth is efficient and is effective all right so now that we have understood that what exactly is entrepreneurship and what is entrepreneurial management and what is the role of management in that entire field of starting a new venture now it is time for us to clear certain confusions between terms such as enterpreneur versus manager so in this particular module i am going to tell you that how an entrepreneur is actually different from a manager what is the role of a manager when we are talking about any organization and what is the role of an entrepreneur in that organization so that is something we will be exploring and we will be differentiating between these two terms in this particular module so as you can see on the screen if you look at manager side that a manager is basically an employee of the business but an entrepreneur is actually an owner of the business so entrepreneur is that person who's starting the new venture he's that person who has taken the risks he is that person who has you know done all the innovation he is the one who is trying to solve the problem and is the owner of the business but when we talk about a manager he's just managing the things it's not about taking a lot of risks it is not about you know it is about creativity and innovation definitely especially when we talk about you know managing human resources financial resources or any other resources of company but in general the amount of innovation which is required in starting a business will always be more than which is required in managing people or managing the other resources for any organization when we are starting a new venture so a manager is definitely an employee of the business but an entrepreneur is actually an owner of the business that is one major point then a manager focuses on managing the daily operations it's about making or improving the processes better it's about making sure that all the processes all the projects that are part of the business are efficient are effective are running smoothly but that is not the case in entrepreneurship it's not about daily operations or making the processes you know improved better it is about focusing on setting up a business it's about that innovation how you can you know make things better for the customers point of view how you can make things better from the employer's point of view it's about searching for those things researching for those things and you know using your innovative mind in that particular direction it is never about daily operations eventually when your business starts growing it becomes about daily operations and about managing the regular things as well but when we are starting a new uh business a new venture then it is not about managing the daily operations at that particular or point of time it is all about focusing on setting up the business using the right innovation using the right kind of people in order to make sure that whatever problem we are trying to solve through this new venture that is eventually and actually sold so that is the main aim when we talk about entrepreneurs now when we talk about managers so a manager in general is a person who gets things done in order to accomplish the business goals effectively and efficiently whenever we are talking about any business there is always some vision some mission some goals of the business that that we are supposed to reach now how will you reach those uh goals those objectives more efficiently and more effectively that is the role of a manager a manager will manage all the things all the resources in order to make sure that all the processes all the projects are running smoothly and things are achieved objectives objectives are achieved very efficiently and very effectively but when we talk about entrepreneurs an entrepreneur is a person who starts a new business and bears most of the risks while reaping the majority of the benefits so risks are more when we are talking about entrepreneurs but so are the benefits because definitely if you can set up a business then eventually it is going to grow if you can manage things later on and you can manage people manage the resources of the company you can make sure that each and everything is running smoothly efficiently effectively so that's what entrepreneurship is all about so if you want me to just draw a clear differentiation between managers and entrepreneurs that's very very simple when we talk about management part when we talk about managers it's more about managing things managing the resources in order to improve the processes in order to improve the projects to make sure that each and everything is achieved the objectives of the business the vision or the mission of the business is achieved more efficiently and more effectively but when we talk about entrepreneurs it's not about managing the daily operations or managing the general things it's about innovation it's about taking more risks it's about setting up a new business and when you set up a new business there's definitely going to be a point of time when your business is growing that you'll have to manage things also but when we are talking about the entrepreneurship phase that is phase one when you are setting up a business it's more about innovation and taking risks and less about managing things because once your business is set up then you can manage things so right now all you need to care about is innovation that how you can solve a business problem how you can solve a problem for people and make your business actually work you can eventually set up that business so that's all entrepreneurship is about now there is a small note as well which is extremely important that although the terms entrepreneur and management may sound similar they are not interchangeable in their function you cannot say that a manager is an entrepreneur definitely management is a part of entrepreneurship as well and there there's a very important role of management when we are talking about entrepreneurship but management is not completely interchangeable with entrepreneurship because entrepreneurship is something different you know some part of management will always be there in entrepreneurship and some part of that innovation that taking risks abilities will always be there in management but these two terms are actually different and cannot be used interchangeably so that's very important to understand now all right so you have understood that what exactly is the difference between entrepreneurs and managers now it is time for us to clear this one more confusion that what is the difference between entrepreneur and businessman so that is something we will be exploring in this particular module so as you can see on the screen an entrepreneur is a person who has a unique concept for starting and running a new business and making a difference in the world the key word here is new business new concept when you talk about a businessman so businessman is someone who runs or establishes a company using the same old business idea you already know that there's a problem in the world now if you know that the solution for that problem already exists but still you try to you know set up your business in that particular domain that will not be entrepreneurship that will be business that will be your aspect of being a businessman and not an entrepreneur when you talk about entrepreneurship it's about a unique concept and solving a unique problem that exists in the world maybe it's a social course maybe it's some other course maybe you want to make profit through something which is extremely unique which has never been done before maybe the way you want to solve a problem is completely different and is completely unique that is what entrepreneurship is all about so when you talk about business it's about going with the traditional way and same old business concepts but when you talk about entrepreneurship it's about running a new business with some new concepts with some unique concepts and it's about making the difference in the world so that's a very clear difference between entrepreneurs and businessmen the next point is that an entrepreneur is a person who is very creative and innovative and willing to take risks and deal with the unpredictability of business definitely when you are going to start something which is completely new when you are going to start something which is never actually done before you are trying to solve a unique problem then definitely it is going to require a lot of innovation a lot of willing to take risks you know risks are very very important when we are talking about entrepreneurships because if you won't take risks definitely you will not be at a stage where you will be able to set up a new business a new venture but when you talk about businessman it is completely different the businessman chooses to pursue a business that is in high demand or that will provide him with the most profit so it's not about taking a load of risks definitely risks will be involved even when we talk about entrepreneurship even when we talk about businessman but the amount of risk that is taken in doing something which is unique is much more than the amount of risk which is actually taken in setting up a business with the same old concept with the same traditional way so that's what uh is something which makes businessman different from an entrepreneur now entrepreneurs they basically follow unconventional procedures they don't have any you know some kind of principles written and they are not going to follow it there is no traditional way that they are going to follow but when you talk about businessmen they follow traditional procedures then entrepreneurs they are marking leaders businessmen they are market players because they lead the market they sold the problems which are unique in the world but businessman they see some existing problem they feel that they can make a benefit out of it they can make profit out of it and they use it to actually make profit it also uh you know requires a lot of management a lot of other aspects but in general it's not about leading the market it's about playing with the market finding the right place choosing that place and actually fitting into it now when you talk about entrepreneurs the risk factor is generally very very high you're starting up a new business you're trying to solve a new problem which has never been sold before it's all about innovation when you use the word innovation there will definitely be a lot of risk which is involved with that you never know how it is going to turn out how the customers are going to react how the major target market for that particular product or maybe for that particular service is going to react all you know is that you have to set up a business you have an idea and you have the vision for that but when you talk about businessman the risk factor is comparatively very very less definitely in that also there's some amount of risk you are again starting up a new business it's just that the concept is old the way you are following is very very traditional the procedures you are going to follow will be traditional will be all concepts based but eventually you will have to take a risk in order to start a business if you are using innovation the risk factor will be much higher that is the case for entrepreneurs but if you are using the same old concept then definitely the risk factor will be a little less all right so now that we have got a clear idea about what exactly is entrepreneurship what is entrepreneurial management what is the difference between an entrepreneur and a businessman or maybe a manager now i think the basic idea is clear now it is time for us to understand the beautiful journey of an entrepreneur when you want to become an entrepreneur or you actually become an entrepreneur how this cycle works how this journey works that is something we will be exploring in this particular module so there are basically three steps in that first of all you are an entrepreneur and then as i already told you as your business starts growing there is a need of applying that word management into the entrepreneurship that is nothing but your entrepreneurial manager you become an entrepreneurial manager from entrepreneur and then eventually you become a manager i'll tell you how that actually works so initially your business is in a startup phase you have started a new venture you are trying to solve a new problem so it requires risk taking abilities it requires innovation so that's the part which entrepreneur will play now once your business starts growing you have done everything your business is set up now business is growing you need to maybe hire more people you need more resources to fulfill the needs of the customers to fulfill the needs of the expectations of the stakeholders shareholders now that becomes very very important so that's the growing phase of the business and at that particular stage rather than using your innovation or innovative mind you will have to start applying the management principles as well because if in this growing phase you cannot manage things you are just using the innovation part you are not going to sustain because definitely innovation is required but to start the business but to sustain the business innovation is important but management is equally important so this is the phase where management will start mixing into this innovation part and it will be you will be more like an entrepreneurial manager then when the business is actually you know is growing and it is going extremely well so it's a large scale business growth right now that we are talking about then it will be completely management because now you cannot make major changes let's say you have developed the product or maybe you have developed a service now it will not be more about you know retweeting those products or maybe retweaking those services it will be more about managing the things hiring more people or maybe you know making uh best use of the resources utilizing the resources to the best making sure that we are optimizing all the processes making sure that the processes in general are running very smoothly effectively efficiently so that effectiveness efficient those are the certain things that we'll have to pay more attention on right now when the business is actually growing on a large scale so that's the basic journey of an entrepreneur first you are an entrepreneur where you use the innovation risk taking abilities when the business starts growing there is a need of applying that management part so it will be entrepreneurial management or you will become an entrepreneurial manager and once the business has started growing its large scale that we are talking about then eventually it will be about just managing the things innovation part is done it will be a little bit of just retweeting that we need to do with the product with the services with the projects with the processes but eventually it will be more prominent that management is required now and not the innovation part so that's the general journey which goes for a particular entrepreneur but again it is not something which can be fixed it always depends because as i already mentioned that entrepreneurship is not about a fixed mindset it's about a growth mindset so you never know what can actually turn up you know you try something different and there can be something different kind of output from that that is never actually seen before so those cases those kind of exceptional cases will always be there but in general this is the basic journey that is actually followed when we talk about the journey of an entrepreneur so now let's let's just talk about these three terms entrepreneur entrepreneurial manager and a manager in a little bit more detail so when you talk about entrepreneur entrepreneurs are risk takers and are change stimulators they want to change the world they want to change something they want to solo business problem that is existing that is unique to them at this stage they don't have the time to formalize things and lay out all of the following steps they'll need to take right now they just take care of hiring the right people and you know just start just set up the business somehow they just want to solve that problem they want to use their innovation to the best that's the face we are talking about when you are setting up a business you do not care about you know how will you plan and you you care about the vision of the company you care about the mission of the company that what actually you want to achieve that will always be there at the back of your mind but eventually you will not have a very clear plan for that the main idea will be that let's use the innovation and let's try to achieve this goal it will not be how to achieve this goal that how part is done when your business starts growing which is the second phase entrepreneurial manager this is the point at which the startup stage ends and the business begins to grow rapidly we need more people to do the work the customer demands are changing the customer needs are changing according to that we have to change as a business things are changing in general things are impacting we need change management we need human resource management we need financial management we need asset management all the kind of things are required so this is the phase where we'll have to actually mix up management and entrepreneurship where we'll have to mix up management and innovation part and that's what an entrepreneurial manager will actually do so entrepreneurs will require specific managerial skills at this stage of business development now third phase is when your business is actually growing rapidly everything is going fine it's on large scale that we are talking about then comes the role of a manager so the growth of the business cannot be controlled only as an entrepreneur at this level you can't just use the innovation part and sustain in the business sustain in the market or in the industry you need to manage things now because you have the right set of people to do the right set of things but will they be able to do it effectively will they be able to do it effectively and efficiently will they be able to you know run all these processes smoothly that is something which becomes very very important when your business is growing at a large scale so there comes the need of a manager more than an entrepreneur or entrepreneurial manager so the growth of the business cannot be controlled only as an entrepreneur at this level although the value of innovation is not diminished the innovation is still there it is not diminished but the management aspect becomes more prominent at this stage more than using and solving the business problem at this stage it is about managing things so that whatever business problem you are eventually trying to solve that becomes effective and the process is run smoothly so that's the third phase which is the extreme phase when your business is actually growing and we are talking about the large scale so that's how this entire journey of an entrepreneur works so now let's move forward and try to understand more about steps in entrepreneurial process we have understood how the journey works how an entrepreneur actually moves from that innovation part to that management part all of that is clear now what are the steps involved in this so let's try to understand all those different steps so there are six steps that i have mentioned over here step one is if you actually want to start a new venture how this entire process is going to work step one making the decision to become an entrepreneur first thing is making the right decision or becoming an entrepreneur once you have decided that then only we can move forward you have all the plan plotting everything that will be done once the decision is done so that the first step that that uh need to start something to start somewhere that is extremely important that's the very first step of this entire entrepreneurial process then second step is identifying and assessing the potential opportunities okay you have decided that you want to start a new venture you want to start a new business you want to solve a problem but what problem will you solve you know what what is there for you to identify what is there for you to evaluate what are the potential opportunities that you have you know maybe right now there's something happening in the world which is not going in the right direction according to you and you feel that there's a need you know there's there's some kind of opportunity there for you and you can solve that problem maybe there's a social course maybe there's some other course maybe it is something which is personal to you and you want to see that how you can actually make money out of it how you can solve problems in the world with that one personal thing as well so all these aspects are there it's a mix of all these things but then identifying and evaluating those potential opportunities is the second step because before starting the business you should know what is the business is for right and to see that identifying evaluating assessing the potential opportunities whatever exists in the world right now whatever is bothering people right now and how you can solve it that becomes a major part of it so that's the second step then third step is putting together a business plan now you have decided that this is the opportunity for you and you are going to grab this opportunity you are going to see this problem as an opportunity you're going to grab it and you're going to solve this problem somehow you have a vision now you have a mission now but what's your business plan you have an objective but how will you all put it together so that's the third step which is putting together a business plan you have an objective you have set the desired position but how will you reach there just like i have put a picture also you have a plan there's a bulb there's an idea there you want to reach there but how there are steps that need to be built so that is the third step you need to have a business plan now once that is done then identifying identifying the resource is needed what are the resources that you will need to reach to that particular desired position that level where you want to reach at you want to solve a particular problem you have decided that you have a business plan for it but how will you do it what are the resources which will be required maybe funding part maybe the human resources the right set of people who will be able to uh you know help you in achieving that particular goal so those aspects the human resources the financial aspect the other aspects in general those becomes very very important that what are the resources which are required so you need to identify that in your fourth step once that is done then turning the idea into the business till now it is just an idea you have a desired position you have a business plan for it you have decided what are the resources required to reach to that business plan but now it's time for you to convert that entire idea into the business how will you make profit out of it how it is going to help people in general so those are certain questions though wh questions will be asked in this particular phase then managing and expanding the business is the last step once the business is set up once you have turned your idea into business it's about expanding the business now how will you there comes the role of management actually so till now when we were talking about setting up the business uh you know converting the idea into the business it was more about entrepreneurship it was more about innovation it was more about taking risks starting a new venture once that is done then comes the role of management as i already told you that the journey of an entrepreneur moves from an entrepreneur to entrepreneurial manager to manager so the management aspect start coming into the picture when the business is growing on a small scale on a large scale that's entirely different picture but once your business is growing you have turned the idea into the business you're making profit out of it it's growing then it is time for you to actually think about expanding it actually think about growing it by managing things by making processes better by improving processes by applying business project management by applying business process management all those other aspects come into the picture when your business is actually expanding so that's the last step so these are six major steps when you talk about any entrepreneurial process let's try to understand what are the different types of entrepreneurship so there are four types that we are going to discuss over here first is social entrepreneurship social entrepreneurship is about identifying and resourcefully pursuing potential opportunities to create social impact you want to create a social impact maybe you want to improve something in the area of education maybe you have something to do with poverty you want to solve that problem it has some social cause related to it so that's about social entrepreneurship the main goal of these businesses is to make the world a better place by solving that social problem maybe it's about something where you know maybe the people are feeling diminished because of something maybe because of education maybe because of money issues maybe because of some other financial aspects maybe some other aspects in general so you have to find that social course and you have to work for it but does that mean it's completely not about profit no that is not the case however for most the ultimate objective is to make money there are so many examples for so many companies where the main idea of that organization is actually to solve a problem let's just talk about tech organizations educational technology companies a lot of these companies will have this idea of solving a business problem of solving a problem where people cannot educate themselves but eventually do these companies try to make money as well yes they do there's a need for profit also and that's what entrepreneurship is all about as we have seen in the definition so the main objective is to make money for most of these organizations but the there's one more need here that is to make this world a better place by solving a business problem by solving a social course in this particular scenario so that's social entrepreneurship now let's talk about big business entrepreneurship so large organizations can offer new items that are versions of their core products by continuing to innovate as i have shown you as well that when we talk about the journey of an entrepreneur first there's an entrepreneur the entrepreneurship the innovation aspect is more but when you eventually grow as a company as an organization then comes the role of a manager but that does not mean that the power of innovation will be diminished the power of innovation is going to be same you will still be innovation innovating you will still be looking at the problems in such a way that you look at them as potential opportunities and you try to solve them you see how you can align the current organizational goals with the existing business problems and how you can actually try to solve that so when you talk about a big business entrepreneurship large organizations can offer new items that are versions of their core products or maybe services by continuing to innovate so that innovation will always be there to suit changing customer needs and modern technology customer demands are changing every day especially in today's world when we are talking about you know so many things and when the world is changing at a very very fast pace so customer demands are changing in general things are changing so the business the product the services will also have to change according to that companies frequently do this by partnering with uh partnering with other innovating uh innovative businesses so that is very very important to understand so most of the businesses they will not go on a very large scale on their own they will generally most of the times you know they will acquire other companies or they'll frequently do it you know by partnering with other innovative companies in the same industry in the same field from which they can also get benefit and the other company can also get benefit for example large companies such as google microsoft etc those will all be examples of a big business entrepreneurship now moving forward next one is small business entrepreneurship as the name suggests these businesses are typically barely profitable there's not much profit in this but definitely there is some profit because eventually it's entrepreneurship the main goal of such businesses is to make a living and support families family members or friends generally fund these businesses so it's not like you have to manage a lot of financial aspects and you have to go and find for funding or anything mostly these are the friends of the families who will fund and the main role the main goal over here is to actually feed your family to make sure that each and everything is going uh smooth in your family and to do that you start something on a very small level the profit is not much but again there's some kind of profit with which you can actually support your family or maybe your friends now the example here can be hairdressers grocery stores local restaurants so these are all examples of small business entrepreneurship where the profit will not be typically very very high but eventually these kind of people you know when they start such kind of ventures such new ventures it's mostly about uh just supporting their family and their family and friends are going to be the one who are actually going to fund these businesses as well so that's the major aspect about it now the fourth one is scalable startup business entrepreneurship so this sort of business begins with a unique idea that has the potential to change the world scalable startup entrepreneurship recognizes a gap in market and develops a solution you know that there is a problem that needs to be sold in the business right now in the world right now people are actually facing this issue how you can use your innovative mind and how you can solve that problem that is about scalable startup business entrepreneurship from creating a business plan to actually launching it and eventually to expand it to grow it all of that will be part of scalable startup business entrepreneurship so just you need to understand that it's all about the unique idea here and filling up that gap between the market the needs the specified needs that the world has and creating a plan for it and to solve that problem so that's uh the four major uh entrepreneurship types that we have let's just talk about entrepreneurship styles so what are the different styles that entrepreneurs will have as i was already telling you it's not about you know there will be only one specified direction that the entrepreneurs will move at it always depends there are always exceptions and there are different different styles that different entrepreneurs will actually follow or maybe they will not follow any prescribed path they will just directly go on their own path they'll try to figure out something which is unique which is new which is innovative and that's the main aim when we are talking about entrepreneurship but again there are certain styles which are very very common when we talk about the world of entrepreneurship so let's try to discuss all those different styles so entrepreneurial style refers to the process of translating an idea or innovation into a viable business when we were discussing about the steps of entrepreneurial journey or entrepreneurial process as well i made it very clear that the last step is to convert that idea into a business you have a business plan everything is perfect that is all right but we eventually have to convert that idea into the business how it is going to solve the problem how it is going to help you in making the profit how it is going to uh create that impact that you want to create all those wh questions are very very important so when we say entrepreneurial style it always refers to the process of translating that idea into the business into a viable business a profitable business so there are different styles of entrepreneurs that can be there one is innovators that's mostly in in it's not like you know one type of entrepreneur will only be innovator will only be a manager type it's generally a mix of it eighty percent of innovators twenty percent of managers or maybe 30 percent of this or 40 percent of that it's generally a mix of certain things it's never completely the same but again these are the major types that we actually should keep in our mind when we are talking about entrepreneurial manager so when we talk about innovators they have the power to reshape the entire industry with their innovative ideas so when you talk about this particular style of entrepreneurship it's all about reshaping or it's all about solving the problem with innovation so innovation is the key word here when you're talking about this particular style then second style managers they recognize the value of assembling and cultivating a strong team of employees and providing them with the tools and resources they need to thrive so there will be one kind of person they'll think that with innovation will actually achieve the goal and they are right their way of doing it is different that's one style but there will be second kind of people who will always make management part also very very prominent along with innovation that is one more style they feel that we should have a strong team we should have the right set of people to do the do the right set of things we have to make processes more efficient we have to make processes projects more effective so there comes the role of managers type or manager style when we are talking about the entrepreneurship then there are opportunists opportunistic entrepreneurship is about entering an industry or business at a decent time and having a high chance of success now how does that work it's about seeing problems as opportunities basically you know that okay this is something which is happening in the world right now and this is affecting this kind of problems how you can solve it at the right time at a decent time to actually make profit out of it so those are the people who are opportunists those are the entrepreneurs who follow this opportunist style basically so they see problems as opportunities they find the right time to enter the business world they enter and they actually make profit out of it why innovation is not the center point here management is not the center point here the center point here is that they took that opportunity of entering the business world at the right time that is also very very important then revolutionaries they are focused on making worldwide changes by addressing the major issues with their strong vision so when you talk about revolution it's all about changing the mindset it's all about changing the world you want to make a difference in the world you want to solve certain major issues which are never being sold maybe that's your mindset that you have the growth mindset that you had that you want to actually solve those problems or maybe it's actually about bringing a revolution in some kind of field maybe in the field of education maybe in some other industry maybe in the field of e-commerce you want to bring that revolution and with that mindset you actually start this business you start this new venture so that particular style will be revolutionary now when you talk about these four styles as i already mentioned it will never be like one type of entrepreneur he is completely innovator and there is no role of manager that he is playing this will never be this explicit or this blunt it will always be a mixture of two three things and maybe more than these four types these four styles as well there will be certain things maybe one entrepreneur is very very innovative but at the same time the management part is also very very prominent and at the same time he looks at problems in the form of opportunities so that part is also mixed and maybe he wants to solve a major issue as well so maybe all these four styles can be mixed into ones so these things will always be there it will it will always depend upon the innovator the actual entrepreneur how he sees the problems and how he actually wants to approach that with his own or her own business plan so it always depends upon a lot of factors but eventually it comes down to three or four major styles that we have that is innovators managers opportunists and revolutionaries let's uh just talk about the characteristics of entrepreneurship so we had discussed a lot about entrepreneurial management and how things actually work how the processes works how the journey moves from an entrepreneurship level to a manager level but eventually what are the different characteristics that entrepreneurs will have if you want to become an entrepreneur what are the major things that you should actually have now that is something we will be exploring over here not all entrepreneurs succeed specific characteristics distinguish successful entrepreneurs you should know one thing before that that principles will never give rise to art art will give rise to principles so first of all you'll do something and after that we will make principles out of it it's never vice versa so we can never actually decide this thing that these are the characteristics of entrepreneurs and if you'll have it you will also be successful we can never say that because it is very very subjective first of all you do something and if that turns out to be right then we make principles out of it so that is something i am actually doing over here so we have uh seen a lot of people we have done a lot of research and we actually understand that how there are certain characteristics there are certain abilities that some entrepreneurs will have and that actually make them different that actually help them in growing the venture that they actually want it to grow so one of those abilities is ability to take risks because definitely when you are starting a new business it involves taking very high amount of risk why because you are starting something which is unique you do not know you have never seen somebody doing something like that so you have no idea about it but still you are going about it still you want to explore that field that requires taking a lot of risk an ability to take a load of risk so that is something which is very very important that is one important characteristic then innovation innovation is actually at the center of entrepreneurship if you have everything but you do not have a innovative mind you do not know how to put things into the right place in order to make sure that one objective that you want to solve that one business problem is actually sold that requires a lot of innovation in terms of setting up the new venture in terms of managing things and then in terms of expanding that so in all those aspects and at each and every stage innovation is important so that is one thing which is again very very important that innovation part the creativity part then visionary qualities when we say visionary qualities there should be some goal even if you do not have the business plan ready you do not know how you want to achieve that but in long term you know that what you actually want to do what is the one business problem that you want to solve what are the so many those business problems that you want to uh cultivate in this one thing and you want to solve it what is the main idea what is the main goal that is something which is extremely important so having that visionary mind that okay this is something that i want in the long run that is extremely important when you talk about entrepreneurship when we talk about the characteristic of an entrepreneur so that is one important characteristic then open-mindedness an entrepreneur because when you talk about innovation when you talk about solving a business problem if you'll have a narrow mind you will never be able to look at problems in terms of opportunities but since as an entrepreneur you have to do that you have to look at problems and you have to see how you can make money out of it how you can solve a problem out of it how you can actually help people with that how you can benefit society with that all these wh questions that is extremely important so how open minded you are in terms of just helping people in terms of helping yourself by making profit in terms of growing your business so that open-mindedness is again one very important characteristic of an entrepreneur then flexibility to change you never know how things are going to turn out you never know once you start the new venture how it is actually going to be taken by the customers you have no idea about it this is something unique for you as somebody who's providing the opportunity and for people who are actually grabbing this opportunity as well so as the business grows we figure out there will always be change sometimes in the internal environment sometimes in the external environment but how you take it how flexible you are are you actually going to adapt to that change or with that change that change is going to help you grow or that change is going to be an obstacle for you so that is something an entrepreneur will actually always have to decide and if they choose to adapt with the change they choose to be flexible with the change then the business is actually going to grow then it is going to be successful then the last step is understanding of product offerings what exactly is your clarity level when you are talking about offering a product or a service that okay this is one problem that i want to solve for this particular business but how what is the product what eventually will it turn out to be having that mission having that vision in your mind that is also one characteristic which is extremely important to summarize it all in general the innovation is at center of it there should be an ability to take risks there should be a visionary mind you should know what exactly is your end goal where you want to reach what is the desired position even if you do not have a business plan for that even if you do not know what are the steps that you are supposed to take but at the beginning of the stage you know when you are setting up a business you should have a clear idea about what is the product that you want to offer and where you want to reach what is your in general direction in order to reach to the desired position and then flexibility to change and open-mindedness how open is your mind to see problems in terms of opportunities and then have an innovative mind to actually solve those problems so that is something which is extremely important let's try to understand that how do entrepreneurs benefit society so when you talk about benefiting society or when you talk about in general that what is the role of entrepreneurship when you are talking about society is there any uh specific problem that entrepreneurs can actually solve or is there anything specific that it is actually going to help in a particular direction those are certain areas which becomes very very important and it may be a surprise for you but actually entrepreneurs help society in so many different ways they help other businesses the existing businesses also in so many different ways how let's explore this in this particular module so how do entrepreneurs benefit society point number one is the success of the goods and services created by entrepreneurs spreads to new enterprises and marketplaces so if you have started a new venture and that has become a success then the success of the goods and services that are created by you as an entrepreneur as an innovator that is going to spread to the new enterprises to new businesses to new marketplaces as well you must have seen that so whenever there's a unique idea once you have started that unique idea after that so many people are actually going to follow that so many other innovative minds will just you know do a little bit of retweaking with that idea and they will also use it and they will solve so many other business problems maybe you could not think of it and they have grabbed that opportunities but the main idea was because of you as an entrepreneur you started something and that started giving ideas to other people to other businessmen to other entrepreneurs to other innovative minds so it is definitely going to help other uh enterprises in other marketplaces so that is one uh major thing which is in terms of you know benefiting society how entrepreneurs play their role then entrepreneurs usually seek for new markets and customers that are one aren't served by established businesses as i was already already telling you when you are talking about entrepreneurship it's not about going with the traditional way it's about solving a new problem solving a problem which is extremely uh you know new for people as well even people do not know how to find a solution to a particular problem but innovators the entrepreneurs are going to use their innovative mind they are going to see this problem as an opportunity and they are going to solve it so the set of set of customers that they will have maybe those customers are not actually covered by any existing business any established marketplace and they will be the first one who are actually going to solve their problems so those set of people their problems are going to be sold with the help of those innovative ideas that those entrepreneurs will have so that is actually going to help that is one way of again you know which will benefit the society then entrepreneurs innovative goods and services lessen reliance on obsolete processes and technologies maybe there are certain processes certain technologies that people are following which are extremely outdated and are not actually helping people maybe entrepreneurs can come up with certain which are extremely innovative in terms of technology in terms of management in terms of just coming up with the idea in terms of solving problems and it can actually lessen reliance on those outdated technologies those outdated tools and those outdated processes so that's also one way in which you can actually benefit society being an entrepreneur now the last point is that being an entrepreneur you can cultivate a sense of belonging among people who share similar goals and interests so that will always be there you have an innovative mind you have sold a business problem that is definitely going to create and cultivate a sense of being belongingness not just among our people who are trying to start a new venture but also among people who are actually going to be on the customer end they will also feel that okay this is something this was the issue that was faced by us as customers as people and that is actually sold with the help of these innovative ideas with the help of these new technologies with the help of these new processes so that's all entrepreneurship is all about and it definitely helps the business world the other enterprises people in general because they can target some new people their problems are not being sold yet a new entrepreneur can come and they can solve the problem and eventually they actually benefit the society they help the society too again there can be so many exceptions in that as well maybe there will be certain organizations they are completely focused on making the profit there will be certain organizations they will more focus on their vision that this is something that they want to achieve and profit is secondary to them so again these things will always be there into the picture but the main idea is that do entrepreneurs benefit society yes they do by using their innovative minds by solving the problems that the world is actually facing that the people are actually facing by creating by cultivating a sense of belongingness so that is very very important to understand now it is time for us to actually understand you know what is the need for entrepreneurial management we have understood the journey of an entrepreneur and everything is clear that there's innovation there's management all those aspects we have understood but why when we are talking about entrepreneurship where do we fit this word management into that what is the role of entrepreneurial management what is the need of it what is the importance of it that is something we will be exploring in this particular module so as you can see that what is the need for entrepreneurial management first thing small business is rapidly uh expanding so that is one indicator basically so if this thing is happening with your business then definitely there's a need for entrepreneurial management then employees are being added to the organization that is one more indicator that if there are more and more employees there are more and more hirings that are happening for your organization that means you need more people to do the work now and if you need more people to do the work that means more work is being actually done and if more working being done then you need to manage the processes you need to see how you can make things efficient how you can make things effective and how will that be done with the help of management in that entrepreneurship environment in that world where we are only thinking about innovation we will have to manage certain things people resources each and everything to make sure that everything is running smoothly so that is extremely important that is one indicator then the company requires a well functioning control system there is a time when your business is growing you will actually feel that there is some need of controlling processes there is some need of you know well functioning control system you need to see maybe control and quality maybe control on other things maybe you just need to oversee things you just need to manage things so those aspects come into the picture and that is also one indicator that now it is time for you to actually start managing things focus less on innovation that should not be diminished but along with innovation we have to be equally good with the management part as well and we have to start making it a little more prominent so these are some indicators that are mentioned over here if any of these things happen in any organization for any business for any new venture that you have started that means now it is time for you to focus less on solving the problem and more on sustaining the business because you have set up a business which is growing people are adding to your organization work is being done now how will you make processes easier more smooth that is the main focus area as we have already discussed too but the last point is there's a requirement of specified guidelines maybe you want to meet the shareholders expectations maybe you want to make sure that customer needs are met maybe you want to make sure that whatever specified objectives you have for your organization those are being met so if you feel that there is a need of this organization there is a need of this well functioning control system then definitely you should start thinking about management part and you should start making it more prominent along with the innovation part so these are certain indicators if you see any of these things happening in your organization in your business as an entrepreneur definitely think less about the innovation part that means your business is set up people are liking the product or the service business is growing now it is time for you to actually put the management part into it and then eventually making it more and more prominent in order to sustain the business in the market let's try to understand what are the benefits of entrepreneurial management plan as we are discussing also that okay you have decided to manage things now but what is the benefit of having a plan for that you have plotted everything you have planned everything what how can it benefit the entire management process in growing the business in managing or expanding the business that is something we will be exploring here so point number one is that you outline the goals you wish to attain with your startup with an entrepreneurial management plan if you don't have a plan you are lost if you have a plan you have an outline you have a direction you know what is the desired position where you are supposed to reach so that is very very important because as we have discussed one very important characteristic of an entrepreneur is that they have this ability to be visionary they can think about things they have a mission they have a vision there is a problem that they want to solve so that becomes very very important so in order to have the desired position that outline it is very very important that you have a an entrepreneurial management plan then second point is that with an entrepreneurial management plan it becomes easier to accomplish goals as everyone coordinates their actions because if you will not have a plan then people will actually be a little lost they will have no clear idea what is the next step that they are supposed to take but if you have a management plan then definitely people will know what they are supposed to do how the planning is going to work and their actions will be more coordinated and eventually the output will be much better the processes will be more efficient so that's the benefit again of having an entrepreneurial management plan that it is good to have an entrepreneurial management plan for efficient resource management we have seen that when you are actually going for this journey of entrepreneur or being an entrepreneur one important thing is identifying and evaluating the resources the two in order to reach at this particular desired position you need these resources but who will manage those resources in order to make sure that everything is optimized and the resource management is efficient and effective now that is also done with the help of an entrepreneurial management plan so that is one more benefit then desired outcomes and performance standards can be defined in an entrepreneurial management plan so what what is the position where you want to reach at what is the main goal what are the problems that you want to solve all those things general bits will also be a part of an entrepreneurial management plan and that definitely will give you a better idea about how you can actually reach to that level then an entrepreneurial management plan establishes how risk can be balanced for unexpected issues change management if there's any change happening there's any unpredictable flow that is going on in the world how can you actually cope up with that how can you actually you know try to create something out of it which is actually going to be useful for your customers for your business for your employees so those are all things which will be possible if you have a solid entrepreneurial management plan with you but if you do not have an entrepreneurial management plan then definitely things can be a little lost for the employees for people and the actions will not be that coordinated so in order to make sure that the processes are running smoothly the actions of people are coordinated and we are moving in a particular direction we have a particular goal we should make sure that there's an entrepreneurial management plan that we have as an entrepreneur as an innovator all right so now that you have reached the end of this course it is great that you have covered all other particular modules and you must have had a better understanding of what exactly is an entrepreneur and what exactly is the role of management when we are talking about entrepreneurship so we actually started with the definition of entrepreneurial management where we understood that when we talk about entrepreneurship definitely it is about taking uh risks it is about starting something it is about taking initiatives it is about innovation but at the same time it is also about managing those things when your business starts growing we have seen that for an entrepreneur the journey is generally from an entrepreneur to an entrepreneurial manager to a manager finally because initially when you want to start up a business when you want to start something a new venture the main idea is in order to start that you need to solve a problem so it requires a lot of risks that you need to take a lot of innovation that is required but one that once that innovation part is done now it is time for you to sustain in the market and in order to sustain you need to make sure that all the processes are getting better you need to improve the processes the daily tasks as well the daily operations as well so in order to do that you need to manage the resources better resource management better people management better management of the finances each and everything comes into the picture once the business starts growing and especially if your business is growing on a large scale then manager role become more important than an entrepreneur definitely the role or the power of innovation will not be diminished at any point of time but the role of manager will keep on becoming more and more prominent as you move forward with this journey of an entrepreneur we have seen that there are different types of entrepreneurship there are different styles of entrepreneurs some entrepreneurs will be innovators more of an innovator some entrepreneurs will be opportunistics some will be revolutionaries some will have a different mindset some will have a mix of it so it always depends upon how you see a problem and how you actually want to turn it into an opportunity a potential opportunity and you have a goal as well there are certain characteristics that we have understood that these are the major areas where actually entrepreneurs do something that makes them successful for example having an open mind having an ability to take risk having an ability to adapt with the change so these are certain things that we have discussed so if you can develop these skills then definitely it is going to help you in starting a new venture so i think this course has given you a very good idea about what exactly is entrepreneurship what is the role of management in that and if you want to become an entrepreneur in your life how these small things can actually help you in starting something which is very very big maybe you want to solve some business problem maybe you want to solve something which is a social course or maybe you want to start on a very very small level or maybe on a scalable startup level it completely depends upon the innovative mind of the person who's going to start the new venture but eventually it is all about the at the center of it there's innovation there's an ability to take risk and eventually they should be a ability to sustain this business as well and in order to sustain it you have to manage things with innovation not getting diminished now i think i have given you a better idea about how management can be applied to entrepreneurship if you also want to become an entrepreneur what are the characteristics that you should actually try to develop and how exactly you can sustain your business sustain your new venture into the marketplace so these are certain things that we have actually covered in this course and i'm very sure you have learned and it is only going to help you if you haven't subscribed to our channel yet i want to request you to hit the subscribe button and turn on the notifications bell so that you don't miss out on any new updates or video releases from great learning if you enjoy this video show us some love and like this video knowledge increases by sharing so make sure you share this video with your friends and colleagues make sure to comment on the video for any queries or suggestions and i'll respond to your comments you

Channel: Great Learning

Views: 695

Keywords: entrepreneurial management, entrepreneurship, entrepreneur, management, business management, Types of Entrepreneurship, Entrepreneurship Styles, journey of an Entrepreneur

Id: 8GFXOWxlySs

Length: 69min 21sec (4161 seconds)

Published: Sat Dec 18 2021