Economic Development & Types of Entrepreneurship

Improvement in the Standard of Living

- An increase in the standards of living of the people is a characteristic feature of the economic development of the country. -entrepreneurs play a key role in increasing the standards of living of the people by adopting the latest innovation in the production of a wide variety of goods and services in a large scare that too at a lower cost. -enables people to avail of better quality goods at lower prices which results in the improvement of their standard of living.

Small Business Entrepreneurship

- a greater number of businesses in society are small that employ more than 50% of total non-government workers in the Philippines. - profit in these type of businesses is pretty less as the main reason behind the (among employers) is creating a living for their families. - a small entrepreneur can be the person who operate a business by hiring local people of family members. The majority of them funds their businesses through friends or family or business loans.

Large Company Entrepreneurship

- can be defined as organizations that have a solid set of life cycles. - there is a solid involvement of sustaining innovation providing new sort of products (disruptive innovations). -it includes customization in customer tastes as well as dealing with new competitors. - it means the creation of a new business within the present organization

Reduces Concentration of Economic Power

- economic power is the natural outcome of industrial and business activity. -industrial development normally leads to a concentration of economic power in the hands of few individuals which results in the growth of monopolies. -in order to address the problem, a large number of entrepreneurs needs to be developed, which will help reduce the concentration of economic power amongst the population.

Increasing Gross National Product per Capita Income

- entrepreneurs are always on the lookout for opportunities. -they explore and exploit opportunities, encourage effective resource mobilization of capital and skill, bringing in new products and services and develop markets for the growth of the economy. -in this way, they help increase gross national products as well as per capita income of the people in a country. -an increase in gross national product and per capita income of the people in a country is a sign of economic growth.

Roles of Entrepreneurship in Economic Development - Fundamentals of Entrepreneurship

- entrepreneurs play an influential role in the economic growth and standard of living in the country. -entrepreneurship and economic development are intimately related. -Schumpeter opines, that the entrepreneurial process is a major factor in economic development. -the entrepreneur is the key to economic growth. -whatever be the form of the economic and political set-up of the country, entrepreneurship is indispensable for economic development

Disruptive Innovation

- is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances. - refers to a new development that dramatically changes the way a structure or industry functions -refers to the use of technology that upsets a structure as opposed to disruptive technology, which refers to the technology itself. -the internet is an example of disruptive innovation, in that it turned the business world on its head, forcing companies to either adapt or lose out. -Cryptocurrency, Netflix, Uber, 3D Printers

Economic Development

- is the process by which emerging economies become advanced economies. - in other words, the process by which countries with low living standards become nations with high living standards. - also refers to the process by which the overall health, well-being, and academic level the general population improves. - during the development, there is a population shift from agriculture to industry, and then to services. - a longer average life expectancy, for example is one of the results of economic development. Improved productivity, higher literacy rates, and better public education [ as well as healthcare ], are also consequences. - it is all about improving living standards. [ refers to higher levels of education and literacy, workers' income, health, and lifespans. - process is which people in a country become wealthier, healthier, better educated, and have greater access to good quality housing. - according to the Cambridge Dictionary, "it is the process in which an economy grows or changes and becomes more advanced, especially when both economic and social conditions are improved."

Incubative Entrepreneurship

- it generates and nurses new ideas and ventures within the organization - it executes them in a productive manner and ensures material gain for the organization. - it manages it in a productive way and makes sure the material gain for the business firm. -they pursue and help to get differentiated technologies to promote creations and innovations Microsoft, Nokia, etc. always incubates new varieties types of products and creates product differentiation in the market.

Individual Entrepreneurship

- it is entrepreneurship that is managed and executed by an individual or a member of a family with some personal motives as well as initiatives, thus it is called as Individual Entrepreneurship.

Acquisitive Entrepreneurship

- learns from competencies -acquires something new of value, the competitive environment etc. -achieves the competitors technical capacities. It keeps entrepreneurship sustainable in a competitive environment. -the highlighted point is that some failures never prevent them from learning and developing new skills but also encourages them to figure out such new things all the itmes

Per Capita Income

- or average income meausures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population. -For Example: ($ 7,200 /month) / (4 persons) = $ 1,800

Public Entrepreneurship

- referred to as the entrepreneurship that is come under the government through the various development agencies. - all developed and underdeveloped nations take initiative in venture ideas to meet the preliminary shortage of private entrepreneurs. - these are different from private entrepreneuars because they work under the government to solve public and environment issues. -also they are not social entrepreneurs because they are bound to government's rules and regulations.

Wealth Creation and Distribution

- stimulates equitable redistribution of wealth and income in the interest of the country to more people and geographic areas, thus giving larger sections of the society. - entrepreneurial activities also generate more activities and give a multiplier effect in the economy.

Scalable Startup Entrepreneurship

- the majority of people believe that small business and scalable startup entrepreneurship is same - they are pretty different in reality -can be defined as a business model where an organization is started on the basis of a unique idea -it involved everything that ranges from creating a plan to all the way up to launching the business -involves great sort of work, education, and experience -type of entrepreneurship commences with a vision that they can make some changes in the world -their investment comes from the venture capitalist as well as by employing efficient employees. -goal is to find out the repeatable and scalable business model. Once they find that model, they further started raising funds from the venture capitalists for the growth of the business.

Imitative Entrepreneurship

- under an agreement with a franchise, this entrepreneurship imitates or copying the operative products and services. - it is a model that assists to spread a new technology across the globe so that people can utilize it. - it involves the adoption of current technologies from across the world and takes on existing technologies with some few modifications that suits the local conditions

Opportunistic Entrepreneurship

-"Hit the iron when it is hot", this proverb describes this kind of entrepreneurship -new opportunities are also offered by the changes in the environment but not every business owner is able to identify the opportunities and utilize the same in a timely manner. - describes as identifying, exploiting, and performs the upcoming opportunities in the first hand. Examples: FedEx, Arthur Fry and Lan Hancock etc. Frank Epperson - popsicle

Roles of Entrepreneurship in Economic Development

-Promote Capital Formation -Creates Large-Scale Employment Opportunities -Promotes Balanced Regional Development -Reduces Concentration of Economic Power -Wealth Creation and Distribution -Increasing Gross National Product per Capita Income -Improvement in the Standard of Living -Promotes Country's Export Trade -Induces Backward and Forwards Linkages -Facilitates Overall Development

E-Entrepreneurship

-also known as Cyberpreneurship -in this world full of technology, the sea of opportunities is there where individual, organizations as well as social and nations can use their mobile phone and computer again and again to access the online services -influence and outreach of the internet are already known by every business and there is less presence of brick and mortar businesses. -every business owner tries to shirt to online business and get a reward from technology -the term "Entrepreneurship" indicates analyzing and identifying the bunch of resources and converts the same to online venture business. -sort of entrepreneur is also known as SENs (Self-Employed Entrepreneurs) -Examples: Amazon, Ebay, and Etsy etc.

Ecopreneurship

-also named as "Green Entrepreneurship" -involves the perspectives that signify corporation with the environment by working on their goals as well as profitability. -term gained popularity in the 1990s and termed as "Environmental entrepreneurship" -last but not least, this entrepreneurship is concerned with the problem of the environment while focusing on the operations of the business firm and its profit margin. -it has three main concepts such: eco-innovation eco-opportunity eco-commitment Examples: Body Shop and Ben and Jerry's, Patagoina, Clif Bars and Grow Green Happiness etc.

Technopreneurship

-blend of two words, technology and entrepreneurship. -kind of entrepreneurship in the intensive technology context and the process of amalgamating the entrepreneurial skills and technology where the technology is used as an essential part. -sort of new breed of entrepreneurship and needs an entrepreneur who is creative, techno-savvy, passionate as well as the ability to calculate associated risk in advance. -IT plays an important role and gives benefits such as generate employment, the best utilization of resources, growth of technology, and creates capital. Examples: Microsoft, Apple, Facebook, Twitter, Instagram, etc.

Entrepreneurship

-community development -exports -standards of living -GDP and Per Capita Income -Balanced and Regional Development -Create Jobs -Wealth Creation and Sharing

Mass Entrepreneurship

-emergence of this category of entrepreneurship occurs when there is a presence of a lot of favorable climate of encouragement as well as a motivation among the common masses. - leads to increase the small and large enterprises in a nation.

Facilitates Overall Development

-entrepreneurs act as catalytic agents for change which results in a change reaction. -once an enterprise is established, the process of industrialisation is set in motion. -this unit will generate demand of various types of units required by it and there will be so many other units that require the output of this unit. -leads to the overall development of an area due to an increase in demand and setting up of more and more units. -in this way, the entrepreneurs multiply their entrepreneurial activities, thus creating an environment of enthusiasm and conveying an impetus for the overall development of the area.

Promotes Country's Export Trade

-entrepreneurs help in promoting a country's export trade, which is an important ingredient of economic development. -they produce goods and services on a large scale for the purpose of earning huge amounts of foreign exchange from export in order to combat the import dues requirement. -hence, import substitution and export promotion ensure economic independence and development.

Promotes Balanced Regional Development

-entrepreneurs help to remove regional disparities through setting up of industries in less developed and backward areas. -the growth of industries and businesses in these areas lead to a large number of public benefits like road transport, health, education, entertainment, etc. -setting up more industries lead to development of backward regions and thereby promotes balanced regional development.

Induces Backward and Forwards Linkages

-entrepreneurs like to work in an environment of change and try to maximize profits by innovations -when an enterprise is established in accordance with the changing technology, it induces backward and forwards linkages that stimulate the process of economic development in the country.

Promotes Capital Formation

-entrepreneurs promote capital formation by mobilizing the idle savings of the public. -they employ their own as well as borrrowed resources for setting up their enterprises. -such types of entrepreneurial activities lead to value addition and creation of wealth, which is very essential for the industrial and economic development of the country.

Creates Large-Scale Employment Opportunities

-entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic problem of underdeveloped nations. -with the setting up of more and more businesses ( both on small and large-scale ), as time passes, these enterprises grow, providing numerous job opportunities. -in this way, entrepreneurs play an effective role in reducing the problem of unemployment in the country, which in turn clears the path towards the economic development of the nation.

Agripreneurship

-formidable role has been played by agriculture in the growth of the economy and its development too. -when a business owner started to make developments in the fields of agricuture -is like a simple business and includes all the operations of a business firm such as manufacturing, production and distribution of farm supplies. -in addition, it also includes floriculture, horticulture, sericulture, animal husbandry, biotechnology, and so on -basically, is a type of farming business includes the profitability, use of digital technologies to improve farming, farm management, and innovative solutions and reduce the wastage of crops - Examples: Calata Group of Companies, Spin Farming, Rantachook, Herbal Processing Units, Plant Clinics are also the examples of agripreneurship

Social Entrepreneurship

-in this type of entrepreneurship, people in business are the innovators who target on development of products and services, so that social requirements and problems can be solved. -unlike scalable startup entrepreneurship, the main motive of entrepreneurs in this case is improving the world. -while businessmen aim to define, compete, or create a market with the goal of earning in mind, the social entrepreneur looks at his community, sees the challenges, and commits to their improvement. -these social enterprises range from a variety of industris and beneficiaries such as infants and mothers, employment assistance, and the environment. -What is more impressive is that these small companies are assisting and committing to causes rights at their own country, helping their own countrymen while earning revenue. -is all about being Richard Branson and Mother Teresa all the same time as further described by the Schwab Foundation, an institution established in 1998 under the Swiss Federal Government with 260 social entrepreneurs in its community that continues to grow with its annual selection of new members under a fine-toothed selection process. -was fueled by the unprecedented advances in economy, which were not parallel to the progress in the social standing of people. Because of this, there was a big gap between rich and poor, and the number of marginalized rose exponentially in number. While most turned its checks, a few took it as an opportunity to make a difference. -to further understand and imbibe what social entrepreneurship is all about, it's worth looking at its own history through its most popular proponents, the people who looked and saw the reality of social injustice and did something about it:

Private Entrepreneurship

-initiate entrepreneurship under the private sector is named as private entrepreneurship -government of every nation gives ample support service via public as well as private concerns to motivate non-public initiative in taking the ventures of entrepreneurship. -moreover, it speeds up the economic development and maintains a balance between a layer and mutual relationship.

Joint Entrepreneurship

-is a collaboration of private and public entrepreneurship -when a business enterprise is partly owned, controlled and managed by a private entrepreneur and the government -Example: PAG-IBIG, VECO, Smart Phone development by Nokia and Microsoft

Trading Entrepreneurship

-kind of mediator between the manufacturer of a product and its customers or retailers or wholesalers. -all the activities related to the trading of an organization are done through such type of entrepreneurs. Serves as middlemen for dealers, wholesalers, manufacturers, and the customers. Examples: Paul Tudon Jones, Nick Leeson, and John Key etc.

Features of Economic Development

-literacy rate -infrastructure -internet access - academic level - access to good quality housing -people shift from agriculture to industry, then service sector -standard of living -access to good quality healthcare

Highly Scalable Business Models

-scalability defines as the easy growth of the business Examples: e-commerce websites, facebook, twitter, instagram, online store like Amazon, etc. Advantages: Choice Liberty, low investment, flexibility, questioning freedom Disadvantages: risks, commitment, excessive responsibility

William Lever

-social mission is all about the whole idea that cleanliness can be achieved by every person. -He started with his Sunlight Soap that comes pre-cut and added palm oils so that it will be quick to lather. -The one in the market at that time was cut from a big batch at a store and was harder to use. -He also started a six-hour workweek for employees, a far cry from the conditions in other factories in the manufacturing business, so that they can also focus on their exercise routine and further care for their health. -Today, Lever Bros. is the multinational Unilever who has William Lever's mission at the core of its business practices.

Cultural Entrepreneurship

-these entrepreneurs' changes culturally who organize cultural, financial, social as well as human capital to make a profit out of it. -they produce products that are culturally good and generating a lot of opportunities for economy, society, and culture. -these firms are come from micro, small to large enterprises. -such entrepreneurship works in cultural professions such as artists, writers, musicians, dancers, advertisers, bloggers, architects, and so on. -motive of such firms is the betterment of society by leverage the business. -sometimes, cultural entrepreneurs lie on media tools like Twitter and Kickstarter to change the ideas, belief, and behavior of the people through communication and influence. Examples: Singers, musicians, artists, and writers

Intrapreneurship

-this term was coined by Glifford Pinchot in 1973. -it is based related to the fostering the activities of entrepreneurs in a large organization by making improvements in the products and branding them to increase the profitability. -the valuable asset for an organization considered as innovation and dedicated efforts by the intrapreneur. -the four elements of intrapreneurship are: right structure suitable manpower reward and; collaboration for a bright future -this entrepreneurship is very significant in this changing world of competitiveness in the marketplace. Examples: Google, Intel, 3M, and so on.

Commercial Entrepreneurship

-type of entrepreneurship associated with the profitability only and emphasized the opportunities and not on the resources. -uses the available resources lies between the hierarchies as well as handles the network on behalf of the entity. -viewed as profit-based entrepreneurship as all the operations held by taking profit as a major motive -concept was coined about 250 years ago and focuses on the economy. Examples: Any organization that works for profit like Tiktok, Facebook, Snapchat, and not for society issues.

Administrative Entrepreneurship

-under this category, all the administrative techniques and functions of entrepreneurial activities is included. -gives a very effective way to manage of all the current as well as future situation of the business with merits and a competitive edge. -this is in fact, the traditional research and developmental management approach. -it is the joint efforts of both the general management and scientific-technical personnel to identify areas for research and development of new products, techniques, or the improvement of the existing ones. -there are few examples of administrative entrepreneurship that can give an idea such as management of quality, redesigning of job, new techniques to do things and management by consensus. -all these tasks of this type of entrepreneurship maximize the efficiency of an organization and nukes the achievements of the firm and sustain in the competitive marketplace. - the government of Bangladesh consider old-age pension scheme as administrative entrepreneurship.

State Entrepreneurship

-when a business firm is managed and operated wholly by the state or the government of the state -all the trading, as well as industrial ventures, are fully undertaken by the state only and not a single entrepreneur is there -Examples: MCWD, Any business that is based on state like Investpunjab in India

Domestic Entrepreneurship

-when a business owners produces goods and provides services within the boundaries of a nation -They follow all the rules and regulations related to the business established by the government of the country to grow their business domestically. -complies with the policies of the government, highly convenient, culturally sensitive, adapts the technologies, better understand the local system, more opportunities for growth and risk as well as reward. Example: House Cleaning, Dog Walking, and Freelance Writing etc.

Transpreneurship

-when the people from various groups of gender such as transgender and Hijra, comes up with some scale businesses to fulfill their day to day needs -associated with the third class of gender where people are not only beggars or sex workers, but they get their bread and butter from doing any small scale business. -Example: a fair was organized by "Anam Prem" in Mumbai where thirty-five stalls were there and most of the shopkeepers belong to transgender started theit stalls of different products such as food, artificial jewelry, artificial flowers and so on.

International Entrepreneurship

-whole process of entrepreneurship conducts and, performs the activities of the business across the boundaries of the nation. -involves various activities such as opening new branches of a business firm in new locations, exporting the products to other countries and get a license to sell as well as promote the products across the nations, -highlighted purpose of this entrepreneurship is to fulfill and satisfy the needs and wants of the target audiences. -this entrepreneurship gets the benefit when the demand for products increases internationally but the need for the same product is domestically not required or decreasing -it is very significant in different aspects such as lower the cost of manufacturing, increase in sales and profit, globalization, cheap labors, developing the habit of customer relation management and utilizes the talent to a great extent along with the managerial competencies. Examples: Google, Apple, and McDonalds etc.

Large Company Entrepreneurship

Advatanges: solid availability of resources, brand name, better team, reforming the structure of the team, growth, innovation, maximization in productivity, employee morale, competitive advantage, recruitment and retention of employee, boosting profitability Disadvantages: job security, extended approval cycles, fear of failure, no action-only encouragement, extreme creativity in ideas are required. Examples: LG, Tata, Microsoft, etc.

Premier Examples

Dr. Maria Montessori Florence Nightingale William Lever

Types of Social Enterprise

Leverage non-profit Hybrid non-profit Social business venture

catalytic agent

in group psychotherapy, refers to a participant who stimulates an emotional reaction from fellow participants. Thus, this person actively participates and facilitates the process of sharing experiences.

Intrapreneur

is an employee who is tasked with developing an innovative idea within a company and can draw on its resources to do so.

Intrapreneurship

is the act of behaving like an entrepreneur while working within a large organization

Florence Nightingale

opened the first nursing school and provided modern nursing practices that are still being followed today.

Leverage non-profit

uses funds in innovative ways to be able to fulfill a need. Usually, these enterprises have a more traditional way of tackling the issues they take up.

Hybrid non-profit

uses profit to be able to support its causes and operations. Funding comes from market or government failures aside from grants and support from the private sector.

Social business venture

uses set-up businesses in line with the enterprise to support its operations. This mostly happens to social enterprises due to lack of funds and/or support. Dr. Maria Montessori

Dr. Maria Montessori

who revolutionized early childhood education-Montessori schools