Different types of business entrepreneurs

The different types of business entrepreneurs are discussed below:

In the initial stages of economic development, entrepreneurs tend to be shy and humble but as the development process picks up speed, they tend to become more enthusiastic and confident. They help make the business environment healthy and development oriented. Highly enthusiastic and innovative entrepreneurs exist only in developed countries as level of their -economic and technological development has reached a certain level whereas in developing and under-developed countries, imitative entrepreneurs are more successful.

However, the various types or entrepreneur are classified as under :

(1) According to the Type of Business :

(i) Business entrepreneur ; Business entrepreneurs are those entrepreneurs who conceive the idea of a new product or service and then translate their ideas into reality. Entrepreneur examines the various possibilities of sources of finance, supply of labour, raw-materials or finished product as the case may be.

Business entrepreneur may be undertaking the trading business or manufacturing business but initially the size of the business is very small. As the entrepreneur flourishes, he tends to expand his business.

(ii) Trading entrepreneur : As the very name indicates trading entrepreneur is concerned with trading activities and not manufacturing. Trading means buying the finished product from the producer and selling off to the customer directly or through a retailer.

A trading entrepreneur has to be creative enough as he has to identify the market. He has to identify potential market, create demand through extensive advertisement of his product and thus inspire people to buy his product. For this is inevitable for him to find out the desires, tastes and choices of his customer in domestic as well as international market.

(iii) Industrial entrepreneur : As the very name indicates, an industrial entrepreneur is one who sets up an industrial unit. He perceives the opportunity to set up his unit, complies with necessary formalities of getting license, power connection, pollution control clearance (if the need be) arrange initial capital, providing securities and guarantees to the financial institutions, making payment of wages and supply necessary technical know-how. An industrial entrepreneur has the ability to convert economic resources and technology into a considerably profitable venture. Manufacturer of leather products, textiles, electronics, food items and the like are industrial entrepreneurs.

(iv) Corporate entrepreneur : Corporate entrepreneur is the one who plans, develops and manages a corporate body. He is a promoter, an essential part of board of directors, an owner as well as an entrepreneur. He gets his corporate body registered under the requisite Act which gives his company the status of separate legal entity.

(v) Agricultural entrepreneur : Agricultural entrepreneur is the one who is engaged in the agricultural activities. He uses latest technology to increase the productivity of agriculture and also adopts mechanisation.

(2) According to Motivation :

(i) Pure entrepreneur : Pure entrepreneur is one who may or may not possess an aptitude for entrepreneurship but is tempted by the monetary rewards or profits to be earned from the business venture. He is status-conscious and wants recognition.

(ii) Induced entrepreneur : Induced entrepreneur is attracted by the various incentives, subsidies and facilities offered by the government. ‘An entrepreneur is not born’ —this is no doubt true as every person can be trained to become a good entrepreneur. Most of the entrepreneurs who enter into business are induced entrepreneur as various kinds of financial, technical and managerial facilities are provided by the government to promote entrepreneurship. An entrepreneur can develop himself much more by attending EDPs and they can make a stand in the market. Import restrictions, allocation of production quotas to SSIs, reservation of products for small industry etc. have forced many young people to set up a small industry.

Non-Resident Indians (NRIs) and educated unemployed seeking self-employment or newly married bridegrooms by taking financial support of their in-laws may be described as induced entrepreneur. This class of entrepreneur accounts for maximum number of failures because there is no proper screening of misfits.

(3) According to the Use of Technology :

(i) Technical entrepreneur : The strength of a technical entrepreneur is in his skill in production techniques. He concentrates more on production than on marketing. He possesses craftsman skill in himself which he applies to develop and to improve the technical aspect of the product.

(ii) Non-technical entrepreneur : Unlike technical entrepreneur, non-technical entrepreneur is not concerned with the technical aspect of the product rather he spends more time in developing alternative strategies of the marketing and distribution to promote his business. His target is not to change the production technique but how to increase the demand of the product in which he is dealing.

(iii) Professional entrepreneur : Professional entrepreneur means an entrepreneur who is interested in floating a business but does not want to manage or operate it . Once the business is established, he sells it out and catches on to float a new business.

(4) According to Stages of Development :

(i) First generation entrepreneur : First generation entrepreneur are those entrepreneurs who do not possess any entrepreneurial background. They start an industrial unit by means of their own innovative skills.

(ii) Second generation entrepreneur : Second generation entrepreneur are those entrepreneurs who inherit the family business firms and pass it from one generation to another.

(iii) Classical entrepreneur : A classical entrepreneur is a stereotype entrepreneur whose aim is to maximize his economic returns at a level consistent with the survival of the unit but with or without an element of growth.

(5) Classification Given by Danhof :

(i) Innovating entrepreneur : Innovative entrepreneurs are generally aggressive and possess the art of cleverly putting the attractive possibilities into practice. An innovating entrepreneur is one who introduces new goods, inaugurates new methods of production, discovers new market and re-organises the enterprise. He arranges money, launches an enterprise, assembles the various factors, chooses the competent managers and sets his enterprise go.

Schumpeter’s entrepreneur is of this type. His entrepreneur belongs to that nation which has wide industrial base, modern banking facilities, rich infrastructure, up to date technology and the like. Innovative entrepreneurs do not exist in developing economies where lack of capital, technological know-how block the path of innovativeness.

In developed countries, people are highly developed and consistently look forward for change. They want to consume such products which do not commonly exist in the world. They want progress as they have achieved high level of development. Innovating entrepreneur played a key role in the rise of modern capitalism, through their enterprising spirit, hope of making money, and ability to recognise and exploit opportunities.

(ii) Imitative entrepreneurs : Imitative entrepreneurs are characterized by readiness to adopt successful innovations inaugurated by successful innovating entrepreneurs. Imitative entrepreneurs do not imitate the changes themselves, they only imitate techniques and technologies innovated by others. Such entrepreneurs are significant for under-developed economies because they put such economies on high rate of economic development. Entrepreneurs prefer to imitate the technology already existing somewhere in the world.

However, the talent of imitative entrepreneurs should not be under-estimated. Even imitative entrepreneurs are revolutionary and agents of change. They have ability to do things which have not been done before even though, unknown to them, the problem may have been solved in the same way by others. Innovative entrepreneur is creative, while imitative entrepreneur is adoptive.

(iii) Fabtan entrepreneur : Fabian entrepreneurs are cautious and skeptical in experimenting change in their enterprises. Such entrepreneurs are shy, lazy and lethargic. They are imitative by nature but are not determined and also lack power. They imitate only when it becomes perfectly clear that failure to do so would result in a loss of the relative position of the enterprise.

(iv) Drone entrepreneur : Drone entrepreneurs are characterized by a refusal to adopt opportunities to make changes in production formulae even at the cost of severely reduced returns. They can suffer loss but are not ready to make changes in their existing production methods. When competition increases, they are pushed out of the market as it becomes uneconomical for them to exist and operate in a competitive market.

(6) According to Capital Ownership :

(i) Private entrepreneur : When an individual or a group of individuals set up an enterprise, arrange finance, bear the risk and adopt the latest techniques in the business with the intention to earn profits, he or the group is called us private entrepreneur/entrepreneurs.

(ii) State entrepreneur : As the name indicates, state entrepreneur means the trading or industrial venture undertaken by the state or the government itself.

(iii) Joint entrepreneur : Joint entrepreneur means the combination of private entrepreneur and state entrepreneur who join hands.

(7) According to Gender and Age :

(i) Man entrepreneur

(ii) Woman entrepreneur

(iii) Young entrepreneur

(iv) Old entrepreneur

(v) Middle-aged entrepreneur

(8) According to Area :

(i) Urban entrepreneur

(ii) Rural entrepreneur

(9) According to Scale :

(i) Large scale industry entrepreneur

(ii) Medium scale industry entrepreneur

(i) Small scale industry entrepreneur

(ii) Tiny industry entrepreneur.

History of internet marketing

The definition:

“Internet Marketing also reffered to as web marketing, online marketing or e marketing is the marketing of the products & services on the internet platform.”

Let’s see how it all started!

Internet Marketing today has become an integral part of people’s lives. When internet was first introduced not a single business house recognized the huge potential it had in store as a marketing tool. As early as 1993 it was just a tool used for emailing & data transfer. The best of the business units had declared it unfit for marketing purposes.

Then in 1995 Netscape the ISP went public and bought the online world into prominence by exploring its commercial potential. The wide reach, cost effectiveness, capabilities to measure the spending's and easy accessibility made internet as the most feasible marketing tool.

The flood-gates opened after that:

Spending on Internet advertising in 1996 totaled $301 million in the U.S. While significant compared to the zero dollars spent in 1994, the figure paled in comparison to the $175 billion spent on traditional advertising as a whole that year. Online advertising grew to an industry worth nearly $1 billion in 1997.

In India, as reported by PWC, advertising industry recorded a growth of 22% over 2006 and thus contributed an estimated Rs. 196 billion in 2007 as compared with Rs. 161 billion in 2006. In the years 2004-2007, the advertising industry recorded a cumulative growth of 20% on an overall basis.

Though different segments of the industry grew at different rates, the highest growth was recorded by the smallest segment in the industry- online advertising. This segment grew by 69% from the previous year, albeit from a low base of Rs. 1.6 billion in 2006 to Rs. 2.7 billion in 2007. Its share in the overall advertising pie grew to 1.4% in 2007, up from 1.0% in 2006. In the last four years 2004-2007, the segment recorded a cumulative growth of 65% on an overall basis.

As broadband penetration increase in the Indian homes and also the mobile devices become more internet friendly, web publishing companies would develop more content on the Internet.  This would make online advertising more relevant, more creative and more informative.

MANAGEMENT PROCESS

ANDHRA UNIVERSITY

BBA (C.B.C.S) – FIRST SEMESTER With effect from 2015-16

                                      MANAGEMENT PROCESS

No. of Hours per week: 6                                            Max. Marks: 100

                                                              Semester end  Examination:     75                        

Credits: 6                                                      Internal assessment:   25              

                                                                                                   

                                                                    

UNIT – I

Introduction: Meaning and importance of Management; Role and responsibilities of top, middle and lower managers. Evolution of Management: F.W. Taylor, Henri Fayol, Elton Mayo, Functions of management. Challenges of Management in the context of new era.

UNIT – II

Planning: Concept – Significance – Process – Types of plans – Problems in planning – Planning Principles – MBO, Decision making process.

UNIT – III

Organizing : Concept – significance – types of organization structures– Formal and informal organizations. Departmentation types: advantages and disadvantages. Span of Control. Delegation of authority. Delegation Vs. decentralization. Line and Staff Positions.

UNIT – IV

Staffing: Meaning and importance of staffing. Introduction to concepts of Recruitment – Selection – interviewing – induction.

Leading: Concept of leadership. Leadership Styles. Developing leadership skills.

Motivating: Meaning – importance of motivation. Theories of motivation: Maslow’s Hierarchy of Needs theory, Herzberg’s two factor theory.

UNIT – V

Controlling – Importance – process - problems of controlling. Control as a feed back system.

Requirements of effective control. Control techniques: Budgetary control, Zero Based budgeting, Break even analysis, MBO

Recommended Books:

1.   Prof. D. A. R. Subramanian, & Smt. D. Swapna, A Text Book on Principles of Management, Maruthi Book Depot, Guntur

2.   Koontz, H. and Wihrich H, Management, Mc Graw Hill.

3.   Stoner, J etc., Management, Pearson Education.

4.   Sharma, Principles of Management, Kalyani Publishers, Hyderabad.

Major Differences Between Delegation and Decentralization!

1. Responsibility:

In delegation, a superior delegates or transfers some rights and duties to a subordinate but his responsibility in respect of that work does not end.

On the other hand, decentralization relieves him from responsibility and the subordinate becomes liable for that work.

2. Process:

Delegation is process while decentralization is the end result of a deliberate policy of making delegation of authority to the lowest levels in managerial hierarchy.

3. Need.

Delegation is almost essential for the management to get things done in the organisation i.e., delegating requisite authority for performance of work assigned. Decentralization may or may not be practiced as a systematic policy in the organisation.

4. Control:

In delegation the final control over the activities of organisation lies with the top executive while in decentralization the power of control is exercised by the unit head to which the authority has been delegated.

5. Authority:

Delegation represents selecting dispersal of authority whereas decentralization signifies the creation of autonomous and self-sufficient units or divisions.

6. Scope:

Delegation hardly poses any problem of co- ordination to the delegator of authority. While decentralization poses a great problem in this regard since extreme freedom of action is given to the people by creating self-sufficient or autonomous units.

7. Good Results:

Decentralization is effective only in big organisations whereas delegation is required and gives good results in all types of organisations irrespective of their size.

8. Nature:

Delegation is the result of human limitation to the span of management. Decentralization is the other hand, is the result of the big size and multi-farious functions of the enterprise.

Fundamaentals of pricing

Pricing is a very powerful weapon in marketing, but there are many different ways to use it to help achieve marketing objectives. It is important to make a distinction between pricing strategies and pricing tactics.

Pricing Strategies
These are adopted over the medium to long term to achieve marketing objectives They have a significant impact on marketing strategy.

Pricing Tactics
These are adopted in the short run to suit particular situations.

Tactics have only limited impact beyond short-term sales of the product itself.  It may also be that the pricing strategies a business can implement are constrained by the competitive position of the business. 

It is often said that there are four categories of position a business can find itself in which influence the control it has over pricing:

Price takers - A business has no option but to charge the ruling market price

Price makers - The business has a strong enough competitive position to be able to fix its own price – either higher or lower than the competition

Price leaders - Market leaders whose market share is so strong that its price changes are closely followed (and often copied) by rivals

Price followers - A business that just follows the price-changing lead of the market leader (ignoring the rest of the competition)

Difference between Accounting and Finance

Key difference: Accounting is the process of creating and managing financial statements which record the day to day transactions of the business. Finance has a broader scope and is responsible for initiating transactions to aid in cash, investment and other working capital management.

Accounting and finance are both forms of managing the money of the business, but they are used for two very different purposes. One of the ways to distinguish between the two is to realize that accounting is part of finance, and that finance has a much broader scope than accounting.

Accounting is the practice of preparing accounting records, including measuring, preparation, analyzing, and the interpretation of financial statements. These records are used to develop and provide data measuring the performance of the firm, assessing its financial position, and paying taxes. Finance, on the other hand, is the efficient and productive management of assets and liabilities based on existing information.

Finance is the study of money and capital markets which deals with many of the topics covered in macro economics. It is the management and control of assets and investments, which focuses on the decisions of individual, financial and other institutions as they choose securities for their investments portfolios. Also, managerial finance involves the actual management of the firm, as well as profiling and managing project risks.

Another way to look at it is that, accounting analyzes the past expenses and performance of the business. This information is then used by the finance department to make decisions about the future

	Accounting	Finance
Definition	Preparation of accounting records	Efficient and productive management of assets and liabilities based on existing information
Purpose	Measuring, preparation, analyzing, and interpretation of financial statements. To collect and present financial information.	Decision making regarding working capital issues such as level of inventory, cash holding, credit levels, financial strategy, managing and controlling cash flow.
Goal	To see how the company is performing, to monitor day to day accounting operations, and for taxing.	To forecast the future performance of the business.
Tools	Balance sheets, profit and loss ledgers, positional declarations, and cash flow statements.	Performance reports, ratio analysis, risk analysis, estimating break evens, returns on investment, etc.
Determination of funds	Revenue is acknowledged at the point of sale and not when it was collected. Expenses are acknowledged when they are incurred than when they are paid.	Revenues are acknowledged during the actual receipt in cash as in cash flow and the expenses are acknowledged when the actual payment is made as in cash outflow.

 

How to Brand Yourself: An Introduction

               Entrepreneurs have always been focused on building the brand names of their companies, and for good reason. How else would people know they exist, what they offer and even where they're located. Some entrepreneurs invest in expensive PR companies, hoping for publicity in mainstream news outlets. Others, such as bootstrapper entrepreneurs, use guerilla marketing tactics to generate interest with almost no budget. We're living in a world where consumers and journalists alike are looking to connect directly with entrepreneurs and hear their stories. It's not just about what your company does, but why you started it, its purpose and your vision. Social technologies, such as blogs, Facebook and Twitter, have enabled entrepreneurs to become known, connect directly with their audience and build relationships on a global scale. As an entrepreneur, you need to become the brand.
1. Become an expert on something that relates to your business.
Entrepreneurs looking to garner media attention, attract new clients and build their businesses should focus on becoming an expert in their field. For instance, Alexa von Tobel, CEO of Learnvest.com, has branded herself as a personal finance expert for young people. As a result, Fox Business, The New York Times, and other media outlets have interviewed Alexa, which provides exposure for her company. Avoid establishing an expertise that's irrelevant to your corporate mission, goals, and vision because you'll be wasting your time. If you own a record label, it's probably not wise to brand yourself as a nutrition expert.
2. Establish a website or blog under your full name.
The media and your customers both use search engines to research you, connect with you and potentially either do business with you or interview you. That's why you need to purchase your full name as a domain name (yourfullname.com). By developing either a static website or a blog under your domain name, you will own the first result for your name in Google and other search engines. This should be a separate site than your company's website. After purchasing your domain name, add your picture, a bio, your e-mail address and links to the rest of your online presence (i.e. Facebook, LinkedIn, Twitter). This way, people can get in touch with you in their medium of choice. Claim your name before someone else does.
3. Learn how to be a good source.
Find out which media sources your audience reads, listens to or watches, research the types of content they provide and locate the exact gatekeeper to pitch. You or your publicist can also e-mail journalists and editors in response to one of their articles, with a note that you are available to comment on future articles. If and when a journalist e-mails or calls you for an interview, respond with haste because they are typically on deadline for their stories. Answer their questions thoroughly, while making sure that you get your message across.
When you're interviewed by the media, you will always be able to promote your company through your byline, which will help build both yours and your company's brand. Once the interview is complete, send a follow-up e-mail asking if they have any more questions, and make sure you include your bio and your picture.
4. Generate brand awareness through networking.
You should be connecting with other entrepreneurs in your industry using social networks, such as Sprouter.com, and commenting on their blogs. Networking is one of the best ways to become known in your industry. By forming relationships with people in your audience you can grow your business and your brand long-term.
The four rules of networking that you should keep in mind are mutualism, giving, targeting and reconnecting.

• Mutualism: You have to create win-win relationships in business, making sure that you don't benefit more than the other party.
• Giving: Help someone out, before asking for anything in return. This makes people want to support you.
• Targeting: You want to be very specific with the types of people you network with, in order to save time and to attract the right people to your brand.
• Reconnecting: Never lose touch, that way networking contacts remember you when new opportunities surface.

These days, branding your company isn't enough. The world wants to hear what you have to say, If you aren't building your own brand, your company will suffer. If you want your company to succeed, become an expert in your field, claim a website under your own domain name, connect with the media, and build relationships with your audience.