Entrepreneurship

Development
1. Entrepreneurship: Concept of Entrepreneur. Intrapreneur, Entrepreneurship and
Manager. Difference between Entrepreneur and Intrapreneur, Entrepreneur and
Entrepreneurship. Attributes and Characteristics of successful entrepreneurs.
Functions of an Entrepreneur, Classification of Entrepreneurs. Role of Entrepreneur in
Indian Economy, Developing entrepreneurial culture, Factors influencing
Entrepreneurship Growth - Economic, Non-Economic Factors, For profit or Not for
profit entrepreneurs, Constraints for the Growth of Entrepreneurial Culture,
Entrepreneurship as a career, Entrepreneurship as a style of management, Emerging
Models of Corporate Entrepreneurship, India’s start up revolution–Trends, Imperatives,
benefits; the players involved in the ecosystem, Business Incubators-Rural
entrepreneurship, social entrepreneurship, women entrepreneurs, Cases of Tata,
Birlas, Kirloskar and new generation entrepreneurs in India. (6)
2. Theories of entrepreneurship: Innovation Theory by Schumpeter & Imitating, Theory
of High Achievement by
McClelland, X-Efficiency Theory by Leibenstein, Theory of Profit by Knight, Theory of
Social change by Everett Hagen. (4) 3
3. Entrepreneurship development: Entrepreneurial Competencies, Developing
Competencies. Concept of entrepreneurship development, Entrepreneur
Training and developing, Role of Entrepreneur Development Programs (EDP),
Role of DIC, SISI , EDII , NIESBUD, NEDB, EDP - Objectives – contents –
methods - execution. Role of Mentors. Innovation and Entrepreneurship,
Design Thinking Process. Role of consultancy organizations in promoting
Entrepreneurs, Problems and difficulties of Entrepreneurs - Marketing Finance,
Human Resource, Production; Research - external problems, Mobility of
Entrepreneurs, Entrepreneurial change, occupational mobility - factors in
mobility. (6)
4. Role of Central Government and State Government in promoting
Entrepreneurship: Introduction to various incentives, subsidies and grants,
Export Oriented Units, Fiscal and Tax concessions available, Women
Entrepreneurs - Role, Problems and Prospects, Reasons for low women
Entrepreneurs, Assistance Programme for Small Scale Units – Institutional
Framework – Role of SSI Sector in the Economy – SSI Units – Failure,
Causes and Preventive Measures – Turnaround Strategies. Future of
Entrepreneurship Development and Government, Start Up India, Make in
India. (5)
5. Enterprise Promotion: Creating Entrepreneurial Venture, Entrepreneurship
Development Cycle, Business Planning Process, The business plan as an
entrepreneurial tool, Elements of Business Plan, Objectives, Market Analysis,
Development of product / idea - Resources, Capabilities, and strategies,
identifying attributes of strategic resources, Opportunity Analysis, innovator or
imitator, SWOT analysis, Internal and External Environment Analysis, Industry
Analysis, Embryonic Companies and Spin off’s, Porter’s five forces model,
Identifying the right Business Model Canvas, Seven Domains of John Mullins,
Opportunities in Emerging/Transition/Decline industries, Opportunities at the
bottom of the pyramid, Opportunities in social sector, Opportunities arising out
of digitization, Marketing, Finance, Organization & Management, Ownership -
Franchising, networking and alliances, Buying an existing business, Critical risk
contingencies of the proposal, Scheduling and milestones. (9)
 Entrepreneur

Entrepreneurship

Enterprise
An entrepreneur is an individual who
creates a new business, he bears
most of the risks and enjoys most of
the rewards.
The process of setting up a business
is known as entrepreneurship. The
entrepreneur is commonly seen as an
innovator, a source of new ideas,
goods, services, and business/or
procedures.
Enterprise is a project or undertaking,
especially a bold or complex one.An
entrepreneur is an individual who
conceives the idea of starting a new
venture, take all types of risks, not
only to put the product or service into
reality but also to make it an
extremely demanding one.
RESPONSIBILITIES OF AN ENTREPRENEUR

1. Initiates and innovates a new concept

2. Recognises and utilises opportunity
3. Arranges and coordinates resources such as man, material, machine and capital,
4. Take suitable actions
5. Faces risks and uncertainties
6. Establishes a startup company,
7. Adds value to the product or service,
8. Takes decisions to make the product or service a profitable one,
9. Is responsible for the profits or losses of the company.
Concept of Entrepreneur
1. Risk-taking Concept
Entrepreneurship is a risky venture because success is not
guaranteed. Even with a great idea, the best team, and a solid
plan, there’s always the risk of failure.

2.Vision is important for entrepreneurs because it helps them to

understand where they want to go with their business and
what they want it to achieve. A vision expresses the purpose of
the business, its desired end state, the target market, and why
it exists.
3. Creativity
It is one of the most important traits of successful entrepreneurs. It
helps them generate new ideas, develop innovative products, and
provide unconventional solutions to people’s problems.

4. Innovation
Innovation is a must, whether you’re a business owner or someone
still looking for an idea to implement

5. Persistence is one of the essential skills to becoming a successful

entrepreneur. Starting a company is not easy, especially when it
involves creating a new business model. There will always be
setbacks along the way, and it takes concrete determination to keep
implementing a business idea even when things aren’t going well.
Entrepreneurs who give up too soon may not see the benefits of
their hard work.
Organized Entrepreneurs need to be organized to
succeed. Running a business entails engaging in
different tasks and projects that have to be
monitored and managed.

Accountability is important to any entrepreneur

because it shows investors and employees that they
are reliable and trustworthy. It also helps their
companies avoid lawsuits and bad publicity.
Result-Oriented Concept

Being result-oriented is a key attribute of successful

entrepreneurs. A result-oriented entrepreneur is more
concerned with the end goal than the process. In other words,
they’re not as concerned with how they get there as they are
with getting there.

Growth Mindset Concept

Having a growth mindset means seeing failure as an

opportunity to learn and improve rather than a setback.
Successful entrepreneurs understand that success comes from
hard work, dedication, and practice rather than natural talent or
token luck.
If you want to become an entrepreneur, you have to possess
specific traits

1. Start with a growth mindset.

2. Acknowledge that although some people are naturally
endowed with entrepreneurship skills, most successful
entrepreneurs are ordinary people who learned their way
to the top of their industries.
3. You can take a self-assessment test or evaluate your past
experiences to discover your strengths and compatibility
with entrepreneurship.
4. To uncover your weaknesses, think about the things you
are uncomfortable doing and feel insecure about.
● You can also find out what your strengths
and weaknesses are by talking to the
people closest to you — your friends and
family.

● And if you newly ventured into

entrepreneurship, you may feel like they’re
walking on eggshells because they’re afraid
that doing something “wrong” will ruin
everything. But that’s not always true.

● Many entrepreneurs stumble along the way

and make many mistakes, but that’s okay.
The best entrepreneurs learn from their
mistakes and keep moving forward. And
that’s how they become more successful.
Intrapreneur

● An intrapreneur is an employee who is tasked with

developing an innovative idea or project within a
company.

● The intrapreneur may not face the outsized risks or

reap the outsized rewards of an entrepreneur;
however, the intrapreneur has access to the resources
and capabilities of an established company.
Difference between the two
An entrepreneur starts a company as a means of providing a good or
service. An intrapreneur explores policies, technologies, or applications
that will help improve the performance of an existing company.

An intrapreneur is usually given the freedom and autonomy needed to

explore new projects, but sometimes they have to do this in addition to
their regular day job.
Intrapreneurs are high-performing employees who are typically assigned
to explore new ways for a company to innovate, improve its existing
products, or stay ahead of the competition;
Approach Intuitive Restorative

Resources Uses own resources. Use resources provided by the

company.

Capital Raised by him. Financed by the company.

Difference between
Enterprise Newly established An existing one
Entrepreneur
Dependency
&
Independent Dependent

Risk Intrapreneur
Borne by the entrepreneur himself. Taken by the company.

Works for Creating a leading position in the Change and renew the existing
market. organizational system and culture.
Entrepreneur and Manager

An entrepreneur is a person with an idea,

skills, and courage to take any risk to
pursue that idea, to turn it into reality.

Manager, as the name suggests, is the

person who manages the operations and
functions of the organisation.
Manager
Manager’ we mean a person who gets the
things done through his subordinates, with the
aim of accomplishing business objectives
efficiently and effectively.

The five primary functions of a manager

● Planning
● Organising
● Directing and Motivating,
● Coordination
● Control.
Key Differences Between Entrepreneur
and Manager
The difference between entrepreneur and manager can be drawn clearly on the following
grounds:

1. A person who creates an enterprise, by taking a financial risk in order to get profit, is
called an entrepreneur. An individual who takes the responsibility of controlling and
administering the organisation is known as a manager.
2. An entrepreneur focuses on business startup whereas the main focus of a manager is to
manage ongoing operations.
3. Achievements work as a motivation for entrepreneurs. On the other hand, the primary
motivation is the power.
4. The manager’s approach to the task is formal which is just opposite of
an entrepreneur.

5.An entrepreneur is the owner of the enterprise while a manager is just an

employee of the company.

6.A manager gets salary as remuneration for the work performed by him.
Conversely, profit is the reward for the entrepreneur.

7.An entrepreneur’s decisions are driven by inductive logic, courage, and

determination; that is why the decision making is intuitive. On the contrary, the
decision making of a manager is calculative, as they are driven by deductive
logic, the collection of information and advice.
8.The major driving force of an entrepreneur is creativity and
innovation. As against this, a manager maintains the existing
state of affairs.

9.While entrepreneur is a risk taker, the manager is risk averse.

Characteristic of
Entrepreneur
1. Curiosity
Successful entrepreneurs have a distinct personality trait that sets
them apart from other organizational leaders: a sense of curiosity.
An entrepreneur's ability to remain curious allows them to
continuously seek new opportunities.

2. Structured Experimentation
Along with curiosity, entrepreneurs require an understanding of
structured experimentation. With each new opportunity, an
entrepreneur must run tests to determine if it’s worthwhile to
pursue.
3. Adaptability
The nature of business is ever-changing. Entrepreneurship is an
iterative process, and new challenges and opportunities present
themselves at every turn. It’s nearly impossible to be prepared for
every scenario, but successful business leaders must be adaptable.

4.Decisiveness
To be successful, an entrepreneur has to make difficult decisions and
stand by them. As a leader, they’re responsible for guiding the
trajectory of their business, including every aspect from funding and
strategy to resource allocation.
Team Building

A great entrepreneur is aware of their strengths and

weaknesses. Rather than letting shortcomings hold
them back, they build well-rounded teams that
complement their abilities.

In many cases, it’s the entrepreneurial team, rather than

an individual, that drives a venture toward success.

When starting your own business, it’s critical to

surround yourself with teammates who have
complementary talents and contribute to a common
goal.
Risk Tolerance

Entrepreneurship is often associated with risk. While it’s

true that launching a venture requires an entrepreneur
to take risks, they also need to take steps to minimize it.

While many things can go wrong when launching a new

venture, many things can go right. Successful
entrepreneurs are comfortable with encountering some
level of risk to reap the rewards of their efforts;
however, their risk tolerance is tightly related to their
efforts to mitigate it.
Comfortable with Failure

In addition to managing risk and making

calculated decisions, entrepreneurship requires
a certain level of comfort with failure.
It’s estimated that nearly 75 percent of new
startups fail.

Despite this, successful entrepreneurs must

prepare themselves for, and be comfortable
with, failure.

Rather than let fear hold them back, they allow

the possibility of success to propel them
forward.
Persistence
While many successful entrepreneurs are comfortable
with the possibility of failing, it doesn’t mean they
give up easily. Rather, they see failure as an
opportunity to learn and grow.

Innovation
Many ascribe to the idea that innovation goes
hand-in-hand with entrepreneurship. This notion is
often true. Some of the most successful startups have
taken existing products or services and drastically
improved them to meet the changing needs of the
market.
Long-Term Focus

Finally, most people think of entrepreneurship

as the process of starting a business. While the
early stages of launching a venture are critical
to its success, the process doesn’t end once the
business is operational.

According to Entrepreneurship Essentials, “it’s

easy to start a business, but hard to grow a
sustainable and substantial one. Some of the
greatest opportunities in history were
discovered well after a venture launched.”
Entrepreneur vs.
Entrepreneurship
Entrepreneurial
Failure
● Lack of a viable concept.
● Lack of market knowledge
● Lack of technical skills.
● Lack of seed capital.
● Lack of business know-how.
● Competency-lack of motivation.
● Social stigma.
● Legal constraints and regulations.
● Monopoly and protectionism.
● Inhibitions due to patents
Role of
Entrepreneurs
Bringing Economic
Growth and Prosperity

Entrepreneur bring economic growth and

prosperity in the country through generation of
employment opportunities, capital and wealth
creation, increasing per capita income and GDP,
improvement in quality of life by raising the
standard of living, growth of infrastructural
facilities, forward and backward linkages in
society, development of backward regions,
economic independence
Brining Social Stability
and Balanced Regional
Development
Entrepreneurs play a crucial and unique role in
bringing about social stability and balanced
regional development through absorption of
workforce in industries, removal of poverty,
improving health and education facilities,
creating fair competition, equitable distribution
of income, creation of social infrastructures,
empowering women and weaker sections of
the society and supply of qualitative goods and
services
Innovator in Economic
Growth

by bringing new ideas, combinations, products

techniques, organizations, new markets, making
full use of technical knowledge, balanced
growth, systematic innovation, technological
advancement, implementation of mechanical
skills, an entrepreneur play very crucial role in
encouraging entrepreneurship and economic
development.
Creation of Employment
Opportunities

by bringing new ideas, combinations, products

techniques, organizations, new markets, making
full use of technical knowledge, balanced
growth, systematic innovation, technological
advancement, implementation of mechanical
skills, an entrepreneur play very crucial role in
encouraging entrepreneurship and economic
development.
Increase Productivity
with Modern Production
System
Two keys to higher productivity are
research and development and investment in
new plant and machinery. But there is a close
link between R & D and investment
programmes, with a higher entrepreneurial
input into both
Entrepreneur Plays a
Role of Catalytic Agent

● He destroys to create new things.

● He changes and transmutes values.
● He searches change and responds to it.
● He is a change creator.
TYPES OF
ENTREPRENEURSHIP
Based on the Use of Technology:

1. Technical Entrepreneur:
● The entrepreneurs who establish and run science and
technology-based industries are called ‘technical
entrepreneurs.’ Expectedly, they use new and innovative
methods of production in their enterprises.

2. Non-Technical Entrepreneur:
● Based on the use of technology, the entrepreneurs who
are not technical entrepreneurs are non-technical
entrepreneurs.
● The forte of their enterprises is not science and
technology.
● They are concerned with the use of alternative and
imitative methods of marketing and distribution
strategies to make their business survive and thrive in
the competitive market.
Based on Ownership:

1. Private Entrepreneur:
A private entrepreneur is one who as an individual sets
up a business enterprise. He / she it’s the sole owner of
the enterprise and bears the entire risk involved in it.

2. State Entrepreneur:
When the trading or industrial venture is undertaken by
the State or the Government, it is called ‘state
entrepreneur.’

3. Joint Entrepreneurs:
When a private entrepreneur and the Government jointly
run a business enterprise, it is called ‘joint
entrepreneurs.’
Based on the Size of Enterprise:

1. Small-Scale Entrepreneur:
An entrepreneur who has made investment in plant and
machinery up to Rs 1.00 crore is called ‘small-scale
entrepreneur.’

2. Medium-Scale Entrepreneur:
The entrepreneur who has made investment in plant and
machinery above Rs 1.00 crore but below Rs 5.00 crore is
called ‘medium-scale entrepreneur.’

3. Large-Scale entrepreneur:
The entrepreneur who has made investment in plant and
machinery more than Rs 5.00 crore is called ‘large-scale
entrepreneur.’
Based on Type of Business:
1. Business Entrepreneurs:
Who conceive an idea for a new product or service and then create a business to
materialize their idea into reality

2. Trading Entrepreneur:
There entrepreneurs undertake trading activities and are not concerned with the
manufacturing work. They identifies potentiality of their product in markets,
stimulates demand for their product line among buyers. They may go for both
domestic and overseas trade.

3. Industrial Entrepreneur:
Industrial entrepreneur is essentially a manufacturer who identifies the needs of
customers and creates products or services to serve them. He is product-oriented
who starts through an industrial unit to create a product like electronic industry,
textile unit, machine tools.
4. Corporate Entrepreneur:

These entrepreneurs used his innovative skill in organizing and managing a

corporate undertaking. A corporate undertaking is a form of business
organisation which is registered under some statute or Act like a trust
registered under the Trust Act, or a company registered under the Companies
Act. These corporate work as separate legal entity. He is thus an individual
who plans, develops and manages a corporate body.

5. Agricultural Entrepreneur:

Agricultural entrepreneurs are those who undertake agricultural activities as

through mechanization, irrigation and application of technologies to produce
the crop. They cover a broad spectrum of the agricultural sector and include
agriculture and allied occupations.
Based on Growth - The industrial units are identified as high growth,
medium growth and low growth industries and as such we have ‘Growth
Entrepreneur’ and ‘Super Growth Entrepreneur.’

1. Growth Entrepreneur:

He necessarily takes up a high growth industry and chooses an industry

which has sustained growth prospects. Growth entrepreneurs have both the
desire and ability to grow as fast as large as possible.

2. Super-Growth Entrepreneur:

This category of entrepreneurs is those who have shown enormous growth of

performance in their venture. The growth performance is identified by the high
turnover of sales, liquidity of funds, and profitability
Based on Motivation:

1. Pure Entrepreneur:

A pure entrepreneur is the one who is motivated by psychological economical,

ethical considerations. He undertakes an entrepreneurial activity for his personal
satisfaction in work, ego or status.

2. Induced Entrepreneur:

This type of entrepreneur is one who induced to take up an entrepreneurial task

due to the policy reforms of the government that provides assistance, incentives,
concessions and other facilities to start a venture.

3. Motivated Entrepreneur:

New entrepreneurs are motivated by the desire for self-fulfillment. They come
into being because of the possibility of making and marketing some new products
for the use of consumers. They are motivated through reward like profit.
Economic Factors
These factors are important in influencing the
economic stability and growth of a country.
They are the factors that are crucial in ensuring
your company sees its expected progress and
attains its objectives.
Capital
● To start your entrepreneurial journey, you
would need capital for many reasons.
● First off, you would need land, a place where
you can start your company.
● You would need raw materials to create the
product or service.
● You would also need machines to process
those raw materials.
● If you have funds readily available to use as
capital that would be a bonus for you.
● But if you have to seek funds so you can
start your company you can start pitching to
investors. Present your business idea to
investors and find out if they would be
interested in investing in your business.
Labour

● For a business to see growth and success, you

will require skilled labour.
● The quality of labour should be given importance
over the quantity of labour.
● However, the availability of quality labour at an
efficient cost would be a bonus.
● Choose a location that will be able to provide the
labour population you require.
● If transportation and accommodation become an
issue, these factors could add to your expenses
and result in losses.
Raw Material

● Just as important as labour is raw material

procurement.
● When choosing the location for your business
make sure it is near the raw material source.
● While it is possible to transport the raw
material through a supply chain, such
requirements would increase expenses.
● To gain maximum profit at a low cost, a
location close to the raw material source is
the ideal choice.
Market

● The market plays an important role in ensuring the

growth of your business.
● The size of the market, as well as the marketing
techniques used, are both important.
● A market is a place where entrepreneurs and
consumers interact.
● It is a place where buying and selling take place.
With the advanced technology available today, the
world has become one big market.
● You can market your product to any part of the
world using the internet and shipping facilities. This
improves your chances of increasing profit and
sales.
 Infrastructure

● The infrastructure available in your city, village

or town will go a long way in having an impact
on the growth of your entrepreneurial venture.
● A location with quick and easy access to
communication tools and the latest technology
will help boost your business or company.
● For example, if your product would require
shipping to different parts of the country or
other countries, it is ideal that you are located in
a place with access to quick and secure shipping
facilities.
Non-Economic
Factors
Various non-economic factors come into play in
affecting the growth of entrepreneurship.
Social Mobility

● Social mobility is an important factor in the growth of a

business.
● The society where you are starting your entrepreneurship
journey should be an accepting one.
● Certain societies are not easily adaptable to change. Such
communities would hinder the growth of the company.
● Assess the social environment where you plan to start
your business and make sure it is a place that is
adaptable to change and growth.
Education

● Education has an important role to play in

defining your entrepreneurial journey. This
may be formal or informal education.
● While one should acquire the degrees
required to start a business, this opportunity
may not be accessible to all.
● However, every person can get educated
through experience and consultation. Work
for different entrepreneurs and learn how they
get their businesses to grow.
● Learn from their mistakes and errors. It is a
never-ending learning process.
Entrepreneurship Legitimacy

● All societies in the world come with their terms,

norms, and regulations.
● The entrepreneur must learn to adapt himself and his
business to society.
● There are cultures and traditions passed down
through generations that cannot be ignored in totality.
● The entrepreneur must keep these norms and
regulations in mind while also growing his or her
business.
● For example, the fast-food corporation McDonald’s
makes alterations in their menu as per the country’s
religious norms and regulations.
Attitude of the Society

● The attitude of society is another factor that

should be considered for the growth of
entrepreneurship.
● For entrepreneurs to flourish, society should
learn to accept changes. They should learn to
encourage growth when it is directed towards
the progress of the community as a whole.
● There might be instances where it is
necessary to have slight changes in cultural
traditions and norms for growth and
development.
Cultural Value

● The cultural values of a country also impact

the growth of entrepreneurship.
● If the culture has a leaning toward the growth
of the economy and money-making business,
there are higher chances of entrepreneurs
flourishing in the country.
● There are certain countries whose cultures
encourage a strong work ethic.
● These kinds of countries are the ideal place to
start a business or company for an
entrepreneur.