OWNERSHIP STRUCTURE

• Project Identification
• Project Ideas

Introduction

One of a tough decision which an entrepreneur has to take is the legal structure of his business.
This decision is necessary because the choice of ownership form shows his right, duties and
obligation of owners as well as tax liability.

Start up a new business enterprise is a very challenging and rewarding task. Several
problems/decisions are involved in this task. The selection/identification/evaluation/ and formulation of
the right project will stimulate effort to numerous decisions.

This unit will guide students while in college it is a great time and effort to start up business
because student have an ample time and resources to research and test potential business concepts.
It’s the best time to start a new business because no matter what happens you will still be able to eat
and sleep with roof over your head.

Structures

When hiring large numbers of staff, organization is important. Everyone within the company needs
to understand their role in the business' structure.
The structures describe the various divisions and department, the managers’ positions within
those divisions and departments, the hierarchy and subordinate relations. A high rank within the
organizational structure signifies a higher level of responsibility and deeper involvement in the
company’s decision-making process. It is often helpful to inform vendors, subcontractors, customers
and investors of the company’s structure, to make sure that they understand who is responsible for
interfacing with them.
When the organizational structure is not sufficiently clear, or does not reflect the de facto
decision-making process, employees at all levels will encounter difficulties in coordinating and
communicating across the different parts of the company. This will lead to unnecessary complications
in the company, wasting valuable time and resources.
On the other hand, a well-structured and logical organizational plan will help keep motivation
high and make all of the work processes more efficient. Because of the importance of the formal
structure, hierarchy and internal delegation of authority, we recommended devoting the necessary
attention to these decisions and periodically reviewing them.
 Matrix structure is often used when cross-functional teams are created to run a project. Team members may
come from different disciplines. The team will disband when the project is complete.

Advantages

• a good way of having different viewpoints and skills involved in a project

• provide staff with an opportunity to learn new skills from other members of the team which may lead to
greater motivation and productivity Disadvantages

• it is very expensive
• team members may have priority issues when having to report to two bosses (their regular line manager and
their project leader)

Entrepreneurial structure

Entrepreneurial structure is used in SMEs. This is when the major decisions are made by one or two
key personnel. Usually in small businesses this will be the owner or the entrepreneur.

Advantage

Decisions are often made quickly by the entrepreneur who is experienced within the business.

Disadvantage

There is a workload issue for the decision makers as responsibility for many tasks will fall to them.

PROJECT

A project is an idea or plan that is intended to be carried out.

A project is a scheme, design, a proposal of something intended for devised to be achieved.

 A project typically has a distinct mission that it is designed to achieve and clear termination point,
the achievement of the mission. The project can differ in their size, nature, objectives, time duration and
complexity.

Main steps involved in the establishment of small business venture

1. Project Identification

It is the process of identifying opportunities for new business ventures. This process
involves collection, compilation and analysis of relevant data for the ultimate purpose of
choosing a suitable opportunity for investment. This process actually starts with idea
generation.

Project identification is the first step of any project cycle. Entrepreneurs need to identify and zero in on
a project that suits their requirements and can help them attain their goals before spending significant
time and resources on a project. They also need to study in detail the feasibility of the proposed
project well before they start planning the other steps of the project cycle. Usually various aspects are
required to be studied before picking a project.

Project/ Business Ideas

A business idea is a concept that can be used for financial gain that is usually centered on a product
or service that can be offered for money. An idea is the base of the pyramid when it comes to the
business as a whole.
The characteristics of a promising business idea are:

• Innovative
• Unique
• Problem solving
• Profitable
 A business idea is often linked to its creator who needs to identify the business' value proposition in
order to launch to market and establish competitive advantage.

20 Small Business Ideas in the Philippines for 2020

There are plenty of good reasons to start a business this 2020, especially if you have the skills, the
opportunity, and the resources needed to do start something new. Have you ever heard about the
phrase, omission bias? Omission bias is the tendency to favor an act of omission over one of
commission. It’s when you start to worry more about doing something than not doing anything. When
you start a small business and then things start going wrong and you fail, you worry about people
thinking you’re a failure. If you don’t start a business, nothing will go wrong, and no one will see that
something has gone wrong. This kind of attitude is exactly what prevents people from doing
something great. This is what kills great ideas and stops businesses from flourishing. This 2020, try to
get rid of this mindset if you have it inside of you! Then ask yourself again. Are you interested in
starting a business in the Philippines? If your answer is yes, then here’s a list of small business ideas
and possible investment opportunities that you can explore today. Time to put on your entrepreneurial
cap!

1. Agriculture
Agriculture has always been a hit for entrepreneurs in the Philippines. And with the increasing interest
in organic farming and farm-to-table initiatives, there is a growing demand for services and retailers
that bring fruits, vegetables, and other agricultural products to greater heights. Take your cue from
businesses like Session Groceries to get an idea.

2. Tourism
Year in and year out, tourists visit the country for leisure trips and vacations. Usually, it was only
during the summer when people would look for these activities, but surprisingly, tourist numbers have
continuously climbed up throughout the year. So, there’s always great reason to start a business that
can cater to tourists. It can be about accommodation, transport services, tourist guiding services –
whatever works for you!

3. Gadgets
Filipinos tend to always go after the latest in tech, which is why smartphones, tablets, computers, and
other accessories sell like pancakes. We even have entire mall buildings dedicated for this purpose
alone. This means people support such ventures and that you’ll have a large market to cater to. If you
find a supplier who can import high quality tech devices, then you should tap into this opportunity!

4. Processed food
Just like how agricultural businesses flourish, the country remains a good market for processed foods.
Think meat products or preserved fruits. You only need to find that one great recipe that will trump
everyone else’s. Who knows? You could be the next Deli Mondo or 7D Mangoes if you play your
cards right.

5. Water business Water is life, so what better idea than to start a business around it. It’s lucrative. It
doesn’t go out of season. Everybody needs it. Water businesses fall under different categories. There
would be water refilling stations where people can come to buy clean water to drink. Or you can add
 some twist to the regular water and make it fancier, like designing your own artisanal or sparkling
water to be sold in special bottles. Do some research first to see what works for the audience you
want to target specifically.

6. Fashion There are a ton of unique markets in the metro that cater to clothes and shoes. They’re
always teeming with people from all different walks of life. You can do so many things. You can start
your own clothing line, produce accessories and other fashion items. Some would even go as far as
designing an entire shoe line even if there are more established names in the market.

7. Real estate
If you are interested in the property industry in the Philippines but cannot afford the required
investment, you can become a real estate agent instead. These people make a lot of money without
much capital other than their people skills.

8. Transport services
Speaking of houses and lots, another business you can start right away is all about vehicles.
Businesses in this sector fall under different categories. Some of the more popular ones involve car
hires or van rentals. There are also those who use their vehicles for on-demand vehicle platforms like
Grab. Some choose to be involved in things as simple as school service businesses. There is so
much movement happening on a daily basis here in the country especially in the bigger cities so
there’s always a constant need for people carriers.

9. Courier services
Another low investment business would be parcel or mail delivery services similar to Lalamove.
Because online purchases have become big these days, the demand for delivery services have
skyrocketed. Such businesses also offer people with flexibility because the drivers can do it whenever
they want and at their most convenient time.

10. Maintenance services

If you are an electrical engineer, a plumber, or into some other professional trade, then you can easily
start a business around maintenance services. More and more Pinoys are realizing the need for these
services because it’s always better to get things repaired than to get them replaced completely.

11. Construction It’s also easy to start a construction company of your own if you’re currently in a
related field like engineering or building. It would be easy to gather a group of workers to deliver
projects involving building dream homes or commercial establishments.

12. Recruitment agency

Recruitment agencies play a great role in linking the unemployed to those who need to hire people.
An even bigger business awaits those who are keen on targeting the OFW market, sending staff to
places like the Middle East or in the cruise line industry. Just make sure to go through all the
necessary paperwork when starting this kind of business because sending manpower abroad can be
a rather fragile undertaking.

13. Solar energy

Solar energy is a money spinner these days. People are looking for ways to make their electricity bill
lower, so they turn to these services. You can start a business in this sector either by being an
installer or by directly supplying customers with solar options for their properties. First, you probably
should have an electrical background or maybe some experience at a solar products company. You
can look into companies like Solaric to check if this kind of business is right for you.

14. Used goods sales

There is a market for people who want to buy old records or books. This could be a lucrative venture,
too. Old CDs, for instance, fetch high on the market – sometimes for as much as you originally bought
 them 20 years ago especially when they’re limited edition on when they can’t be found elsewhere in
the market. You can observe places like Planet CD, an 18,000-strong local Facebook group about
records and Second Hand Books Philippines to get ideas.

15. Wedding planning

Weddings have never been trendier as they are today, so a lot of people are starting to open
businesses related to weddings. Think always keeping yourself up to date about wedding trends and
color palettes. You can offer your mostly female clientele with services such as helping them pick
flowers, choosing the venue, and hiring a caterer.

16. Repair shops

Everyone would have gotten something broken at some point. Whether it’s a phone repair, watch
repair, appliance repair or whatnot that you’re eyeing, you need to be able to plan, start slow, and
build your customer base according to recommendations and referrals from your existing ones on the
basis of doing your work well and only going after quality workmanship.

17. Printing businesses

You can use desktop publishing software to lay out and print personalized shirt designs, button pins,
lanyards, and mugs. There are many businesses like this already; what will make you stand out is
good design skills, plus unique and creative thinking. You also need a good customer base that will
provide you with more business.

18. Flowers and gift services Although such businesses are seasonal, you can make a killing out of
your venture when you’re smart with your timing. If you do it right, your earnings will be enough to
cover your earnings for the entire year. You should go all out when the demand is high like during
Valentine’s Day, Mother’s Day, All Saints’ Day, and the like. You also need to get good suppliers that
will always give you a fair price and help you make a profit.

19. Beauty
Anything related to beauty would be popular and lucrative. But since the market is already saturated,
you need to step up your game and do something that will make your biz stand out. An example
would be to go homebased, so you don’t need to rent a space. Generally, you need to have some
experience in hairstyling, make up, mani and pedi, or facials. Another way to stand out is to venture
into extremely specific things – like doing microblading for eyebrows or only doing special effects
make up.

20. Online
There are so many businesses that you can do online. You have so many options that can make your
head explode! But whatever you choose, it will all boil down to how committed you are. You need to
exert time, effort, and resources to make it work. Selling online? It takes a lot of patience. Drop
shipping? You need hard work for that. Social media marketing? Consistency is key! You need to
have all of these traits because not only do you need people’s attention; you also need to keep them
engaged as attention spans have turned staggeringly low. No matter which business you choose to
start this 2020, you can turn to Blend PH for financial assistance. Allow us to become your business
partner as you start doing something great this year! Visit https://blend.ph to find out the financial
options available to you.

Intrapreneurship
Topics:
• Corporate Culture US Intrapreneurial Culture
• Intrapreneurial Management
Introduction

T as a balancing force in an environment also characterized by creativity and innovation.

of the internal goals of the internal plan process is establishing order and structure
he first

The business plan process does not conflict with innovation at all; in fact, it enhances it
by encouraging new ideas and creating a feeling of partnership and ownership among the team members.

This unit will guide the student to look their passion and determination, to inspire others to get valued
in a business world and try new thing as they grow.

Learning Objectives

After studying this unit, the student should be able to;

1. Identify the Corporate Culture US Intrapreneurial Culture

2. Explain the Intrapreneurial Management

What Is Intrapreneurship?

The term intrapreneurship refers to a system that allows an employee to act like an entrepreneur
within a company or other organization. Intrapreneurs are self-motivated, proactive, and action-oriented
people who take the initiative to pursue an innovative product or service. An intrapreneur knows failure does
not have a personal cost as it does for an entrepreneur since the organization absorbs losses that arise
from failure.

Intrapreneurship is when there is a system at a company that allows employees to be

entrepreneurs within the bounds of their company. These individuals are motivated and proactive in the
pursuit of innovation, and they know that any failure does not affect them personally because the company
takes the hit for the loss.

Difference between Entrepreneur and Intrapreneur

Entrepreneur Intrapreneur
1. Dependency An entrepreneur is An intrapreneur is
independent in his dependent
operations On the entrepreneur i.e.,
the owner

2. Raising of funds An entrepreneur himself He doesn’t raises fund for

raises funds required the organization
for the organization

Entrepreneur bears the An intrapreneur does not

3. Risk
risk involved in the fully bear the risk
business involved in the
organization

An entrepreneur operates An intrapreneur operates

4. Operation
from outside from within the
organization

What Is Corporate Culture?

Corporate culture refers to the beliefs and behaviors that determine how a company's employees and
management interact and handle outside business transactions. Often, corporate culture is implied, not
expressly defined, and develops organically over time from the cumulative traits of the people the company
hires. A company's culture will be reflected in its dress code, business hours, office setup, employee
benefits, turnover, hiring decisions, treatment of clients, client satisfaction, and every other aspect of
operations.
 The importance of corporate culture guides how the employees of the company act, feel, and think.
The corporate culture is also the social and psychological environment of an organization. It symbolizes the
unique personality of a company and expresses the core values, ethics, behaviors and beliefs of an
organization. The top leadership including the CEO, has to take responsibility if the culture is to be strong.
4 TYPES OF ORGANIZATIONAL CULTURE

TYPE 1 - CLAN CULTURE

Primary Focus: Mentorship and teamwork
Defining Qualities: Flexibility and discretion; internal focus and integration
Motto: “We’re all in this together.”
About clan culture: A clan culture is people-focused in the sense that the company feels like one big
happy family. This is a highly collaborative work environment where every individual is valued and
communication is a top priority. Clan culture is often paired with a horizontal structure, which helps to break
down barriers between the C-suite and employees and encourage mentorship opportunities. These
companies are action-oriented and embrace change, a testament to their highly flexible nature. Benefits:
Clan cultures boast high rates of employee engagement, and happy employees make for happy customers.
Because of its highly adaptable environment, there’s a great possibility for market growth within a clan
culture.
Drawbacks: A family-style corporate culture is difficult to maintain as the company grows. Plus, with a
horizontal leadership structure, day-to-day operations can seem cluttered and lacking direction. Where
you’ll find clan culture: Adaptable, team-oriented with a horizontal structure? It’s no surprise that clan
cultures are often seen in startups and smaller companies. Young organizations that are just starting out put
a heavy emphasis on collaboration and communication, leadership looks to employees for feedback and
ideas and companies prioritize team-building.
For companies with a large percentage of employees working remotely like HR tech provider Hireology,
creating an empathetic and communicative company culture is key to success. “When you have a blended
team, your local staff can help bridge gaps and build empathy,” says Joel Schlundt, Vice President of
Engineering at Hireology. The team coordinated job swaps to help employees better understand and
appreciate their peers’ roles.
How to create this culture within your organization: To cultivate a clan culture within your company,
your first step is to turn to your employees. Communication is vital to a successful clan culture, so let your
team know that you’re open to feedback. Find out what they value, what they’d like to see change, what
ideas they have to help push the company further. Step two: take their thoughts into account and put them
into action.

TYPE 2 - ADHOCRACY CULTURE

Primary Focus: Risk-taking and innovation

Defining Qualities: Flexibility and discretion; external focus and differentiation
Motto: “Risk it to get the biscuit.”
About adhocracy culture: Adhocracy cultures are rooted in innovation. These are the companies that are
on the cutting-edge of their industry — they’re looking to develop the next big thing before anyone else has
even started asking the right questions. To do so, they need to take risks. Adhocracy cultures value
individuality in the sense that employees are encouraged to think creatively and bring their ideas to the
table. Because this type of organizational culture falls within the external focus and differentiation category,
new ideas need to be tied to market growth and company success.
Benefits: An adhocracy culture contributes to high profit margins and notoriety. Employees stay motivated
with the goal of breaking the mold. Plus, with a focus on creativity and new ideas, professional development
opportunities are easy to justify.
Drawbacks: Risk is risk, so there’s always a chance that a new venture won’t pan out and may even hurt
your business. Adhocracy cultures can also foster competition between employees as the pressure to come
up with new ideas mounts.
Where you’ll find adhocracy culture: Think of Google, Facebook or Apple — these are companies that
embody the external focus and risk-taking nature of adhocracy culture. They run on creative energy and
doing what hasn’t been done before. Adhocracy cultures are commonplace within the everchanging tech
industry where new products are being developed and released on a regular basis. How to create this
culture within your organization: Depending on your industry, it may be hard to develop an authentic
adhocracy culture that includes a high-risk business strategy. However, implementing strategy and
brainstorming sessions provides employees with the opportunity to share big ideas that can help to propel
the company further. Rewarding successful ideas encourages teams to think outside of the box, too.

TYPE 3 - MARKET CULTURE

Primary Focus: Competition and growth

Defining Qualities: Stability and control; external focus and differentiation
Motto: “We’re in it to win it.”
About market culture: Market culture prioritizes profitability. Everything is evaluated with the bottom line in
mind; each position has an objective that aligns with the company’s larger goal, and there are often several
degrees of separation between employees and leadership roles. These are resultsoriented organizations
that focus on external success rather than internal satisfaction. A market culture stresses the importance of
meeting quotas, reaching targets and getting results.
Benefits: Companies that boast market cultures are profitable and successful. Because the entire
organization is externally focused, there’s a key objective employees can get behind and work toward.
Drawbacks: On the other hand, because there’s a number tied to every decision, project and position
within the company, it can be difficult for employees to meaningfully engage with their work and live out their
professional purpose.
Where you’ll find market culture: The goal of a market culture company is to be the best in its industry.
Because of that, these are often larger companies that are already leaders of the pack. They’re looking to
compete and beat out anyone else that may compare.
For an industry leader like Bluecore, a retail marketing platform that utilizes AI technology, providing
employees with clear objectives helps the team provide the all-star customer service it’s known for. “Our
team is clear on its goals and we are incentivized through compensation structure and recognition,” says
Vice President of Customer Success Kim Surko. “With that foundation, we can apply our personality and
values to define how we will accomplish those goals.”
How to create this culture within your organization: Because every aspect of a market culture is tied to
the company’s bottom line, start by evaluating each position within your organization. Calculate the ROI of
every role and ascribe reasonable benchmarks for production. Consider rewarding top performers to
encourage similar work.
 TYPE 4 - HIERARCHY CULTURE

Primary Focus: Structure and stability

Defining Qualities: Stability and control; internal focus and integration
Motto: “Get it done right.”
About hierarchy culture: Companies with hierarchy cultures adhere to the traditional corporate structure.
These are companies focused on internal organization by way of a clear chain of command and multiple
management tiers that separate employees and leadership. In addition to a rigid structure, there’s often a
dress code for employees to follow. Hierarchy cultures have a set way of doing things, which makes them
stable and risk-averse.
Benefits: With internal organization as a priority, hierarchy cultures have clear direction. There are well-
defined processes that cater to the company’s main objectives.
Drawbacks: The rigidity of hierarchy cultures leaves little room for creativity, making these companies
relatively slow to adapt to the changing marketplace. The company takes precedence over the individual,
which doesn’t necessarily encourage employee feedback.
Where you’ll find hierarchy culture: Hierarchy cultures can be found at both ends of the corporate
spectrum, from old-school organizations to those of the customer service industry, such as fast food
restaurants. These are companies that are hyper-focused on how day-to-day operations are carried out and
aren’t interested in changing things up anytime soon.
How to create this culture within your organization: The first step to establishing a hierarchy culture is to
button up your processes. If the chain of command has some gaps, fill them. Consider every team and
department to ensure they have clear long- and short-term goals.
Your company culture says a lot about your team and what you value, and job seekers can pick up on that
almost immediately. Evaluate your existing company culture and take stock of what truly matters to your
organization — where are you aligned and where are your areas for improvement? While you can exert
control over your company culture, keep in mind that the office dynamic will shift as you onboard new team
members, so hire for culture add, not fit.

Many of these companies offer similar perks and benefits, but those do not determine the culture
completely. The approach taken with how employees are treated and what level of ownership and trust they
are given is also a key part of company culture.

One word of caution: focusing on company culture to the exclusion of other workforce considerations
(safety, laws, regulations) can lead to abuses or create situations where employees aren’t comfortable.
Even the best examples of culture on this list have detractors.

Remember that the best culture makes all employees feel safe and welcome, never excluded or
uncomfortable. Focusing on “culture fit” alone makes it difficult to hire and welcome employees who are
different than the prevailing culture, even if they’d be an asset and great counterbalance at your company.
Your company culture needs adjustment if it causes you to end up with a homogenized team who think and
act the same.

Intrapreneurial Culture

An intrapreneurial culture requires employees to have a highly investigative and inquiring mind set so that
they can find the most optimum solutions to their problems. In which case, a leadership structure
acclimatized to the old ways of doing things will find it hard to function in an environment where regular top
down authority is no longer a given. Managers and project leads will have to learn to look at their fellow
team members as leaders in their own rights and not people who simply exist to do their bidding.

One way leaders can help create an intrapreneurial culture is by acting more as mentors rather than
bosses. Unlike a traditional leader, a mentor attempts to forge deeper teacher-students like bonds with their
team-members. While leaders attempt to use employees as resources to get things done, a mentor is more
concerned with helping employees improve and become the best possible version of themselves. The
rationale to mentorship in a corporate environment is that if an employee can learn to operate on his/her
own, then their performance and contribution will increase as well.

A good mentoring relationship is one where both the parties agree to share all the information at their
disposal, ask as many questions as needed and disagree without fear of reprisals. Mentoring is indeed very
subjective and there is a lot of good quality information that can help you decide which path to take. That
being said, here are some awesome resources to get you started…
 The Best Examples of Intrapreneurship in Action

What Does Sony’s PlayStation Have in Common With Facebook’s Like Button? Here’s how some
of the World’s Largest Firms Are Promoting the Concept of Intrapreneurship.
It’s getting harder and harder for large companies to retain their brightest employees. Unhappy at having
their creativity stifled by excessive bureaucracy, they are opting to join start-up ventures, where they are
granted more freedom, in order to nourish their imagination.

But some companies have adopted a new way of keeping this budding entrepreneurial talent in-house – by
allowing staff to nurture and fulfil their innovative desires. Insights looks at some of the best examples of
intrapreneurship.
Sony
It might be the best-selling console in the world today, but Sony’s PlayStation only happened because a
junior employee tinkered with his daughter’s Nintendo.

Ken Kutaragi spent hours trying to make the console more powerful and user-friendly but his idea was
reportedly rebuffed by many Sony bosses – hesitant at joining a gaming industry they considered a waste of
time. One senior employee spotted value in Kutaragi’s innovative product and the rest, as they say, is
history.

Facebook
One of the most documented initiatives associated with the rise of the social-networking behemoth has
been its infamous “hack-a-thons”; all-night competitions for coders and engineers to develop an idea into a
prototype. Facebook’s ‘Like’ button was born from the event, and has since become synonymous with the
brand.

Lockheed Martin
Working as an autonomous and small team within the firm, the Skunks Works project – led by Kelly
Johnson – created innovative aircraft models for Lockheed Martin, including the SR71. The example reflects
the need for large employers to give talented workers both support and the space to think creatively on
projects, whereby they can define their own plan.

DreamWorks
The creators of several Hollywood movie franchises, including Shrek and Madagascar, encourages all staff
– regardless of job title – to be part of the filmmaking process by sending in their own ideas.

The employer also invests in its staff by providing access to courses such as artist development; giving
them the skills, knowledge and aptitudes to pitch the next blockbuster animation. Dan Satterthwaite, head of
human resources explained: “We challenge all our employees to be their own CEOs.”

Intel
Known for investing in Silicon Valley entrepreneurs, Intel decided to start investing in the ideas of its own
staff in 1998 with its "new business initiative."

A year after its creation, more than 400 ideas were pitched by employees – with over two dozen receiving
funding. One of its most successful ventures has been the Vivonic Fitness Planner founded by former Intel
engineer Paul Scagnetti, which helped users meet nutrition and exercise goals.

Intrapreneurial Management

What is Management?
Management is the coordination and administration of tasks to achieve a goal. Such
administration activities include setting the organization’s strategy and coordinating the efforts of staff to
accomplish these objectives through the application of available resources. Management can also refer to
the seniority structure of staff members within an organization.
The Four Functions of Management
Planning
One main role of a manager is creating a plan to meet company goals and objectives. This involves
allocating employee resources and delegating responsibilities, as well as setting realistic timelines and
standards for completion. Planning requires those in management roles to continuously check on team
progress in order to make small adjustments when necessary, while still maintaining a clear picture of a
company's larger aims and goals.

Much of one's planning function consists of working independently to determine what responsibilities
must be given to which employees, setting priority levels for certain tasks, and creating timelines. However,
communication also plays an important role. For example, managers deal with planning when they meet
with company leadership to discuss short and long-term goals, and when they communicate the specifics of
a new project to their team or check-in periodically to ensure individual objectives are being met on time.

Organizing
Along with planning, a manager's organizational skills can help to ensure a company or departmental unit
runs smoothly. From establishing internal processes and structures to knowing which employees or teams
are best suited for specific tasks, keeping everyone and everything organized throughout daily operations
are important functions of management.

Organization isn't just about delegating tasks efficiently and making sure employees have what they need to
accomplish their tasks, however. Managers also need to be able to reorganize in response to new
challenges. This could come into practice in the form of slightly adjusting the timeline for a project or re-
allocating tasks from one team to another. Or, it could mean significantly altering a team's internal structure
and roles in response to company growth.

Leading Managers should be comfortable and confident commanding their team members’ daily tasks as
well as during periods of significant change or challenge. This involves projecting a strong sense of direction
and leadership when setting goals and communicating new processes, products and services, or internal
policy.

Leadership can manifest itself in a number of ways, including recognizing when employees need an
extra boost of reinforcement and praise to handling conflicts between team members fairly and decisively.
Often, managers may function as leaders even during small personal interactions by modeling supportive,
encouraging, and motivational qualities.

Controlling
To ensure all of the above functions are working toward the success of a company, managers should
consistently monitor employee performance, quality of work, and the efficiency and reliability of completed
projects. Control (and quality control) in management is about making sure the ultimate goals of the
business are being adequately met, as well as making any necessary changes when they aren't.

THEORY AND PRACTICE

Incorporating entrepreneurial concepts into traditional corporate environments is easy to promote in

theory: capturing the innovative attitudes of small start-ups within the larger organizational context (i.e., with
more resources) seems intuitive. In reality, entrepreneurship is often much easier to discuss in a classroom
than to integrate into an actual organization. There are many reasons for this that generally boil down to
simple issues of size and corporate inertia.

Companies are built on structures and hierarchies which in turn create a dependable and repeatable
operational process. This process leads to value creation, and efficiency is always a focal point in
operational contexts. When innovation and intrapreneurship enters this equation they are often seen as
costs without tangible and definite benefits, and as lacking consistency and applicability to the current
model. In many ways, the benefits of intrapreneurship are difficult to forecast and thus difficult to justify. As
a result, good managers must be long-term oriented and open-minded in order to capture the benefits of
instilling an intrapreneurial spirit.

ENTREPRENEURSHIP DEVELOPMENT PROCESS

LESSON 5

➢ Importance and Need for Entrepreneurship Development

➢ Stages in the entrepreneurship development process ➢ Strategies for entrepreneurship
development

Importance and Need for Entrepreneurship Development

Entrepreneurship is a complex method of generating incremental wealth and innovating useful products
that have an effect on the well-being of an entrepreneur.
It offers an immense amount of goods and services to society and stimulates the development of social
welfare. Entrepreneurship is of vital importance in generating employment opportunities, innovating and
developing the economy.
The person behind entrepreneurship is an action-oriented and highly motivated individual who is ready to
accomplish goals. Kirzner (1973) observes that "one who perceives what others have not seen and acts
on that perception."
Entrepreneurs, therefore, are bringing the economy and culture of our society to the arena of prosperity
and growth. Taking this into account, we may define the value or significance of entrepreneurship as set
out below are the 9 importance of entrepreneurship:

1. Growth of Entrepreneurship.
2. Creation of job opportunities.
3. Innovation.
4. Impact on community development.
5. The consequence of business failure.
6. Political and economic integration of outsiders.
7. Spawns entrepreneurship.
8. Enhances the standard of living.
9. Promotes research and development.

1. Growth of Entrepreneurship
Entrepreneurship The emergence of new companies, in particular small enterprises, to materialize the
revolutionary ideas of entrepreneurs.

Thus, the growth or establishment of small businesses is the unique contribution of entrepreneurship in
any economy in the world.

Example: The USA economy nearly half a million small enterprise is established every year.

2. Creation of job opportunities

Entrepreneurship companies have contributed a significant proportion of new workers. It provides entry-
level employment with the requisite training or the acquisition of experience for unskilled employees.

Small businesses are the only industry that produces a significant proportion of total jobs per year. In
addition, entrepreneurial companies are preparing and supplying skilled labor to large industries.

3. Innovation
Entrepreneurship is the incubator of innovation. Innovation creates disequilibria in the present state of
order.
It goes beyond discovery and does implementation and commercialization, of innovations.

“Leapfrog” innovation, research, and development are being contributed by entrepreneurship.

Thus, entrepreneurship nurses’ innovation that provides new ventures, products, technology, market,
quality of good, etc. to the economy that increases Gross Domestic Products and standard of living of the
people.

4. Impact on community development

A community is better off if its employment base is diversified among many small entrepreneurial firms.

It promotes abundant retail facilities, a higher level of homeownership, fewer slums, better, sanitation
standards and higher expenditure on education, recreation, and religious activities.

Thus, entrepreneurship leads to more stability and a higher quality of community

life.

5. The consequence of business failure

The collapse of the large industry almost has irresistible damage to the development of the state and the
state of the economy and the financial condition of the relevant persons.

The incumbents lost their jobs: suppliers and financial institutions face a crisis of recovery.

Customers are deprived of goods, services, and government losses taxes. This could not happen in the
case of failure of entrepreneurship.

There shall be no measurable effect upon the economy and no political repercussions too.

6. Political and economic integration of outsiders

Entrepreneurship is the most effective way of integrating those who feel disposed of and alienated into the
economy.

Minorities, migrants, and women are safely integrated into entrepreneurship that will help to develop a
well-composed plural society.

7. Spawns entrepreneurship
Entrepreneurship is the nursing ground for new inexperienced adventurists.

It is the field where a person can start his/her idea of the venture, which may be ended up in a giant
enterprise. All the large industrial ventures started as a small entrepreneurial enterprise.

Therefore, entrepreneurship provides a wide spectrum of ventures and entrepreneurs in every economy.
The vast open arena of entrepreneurship thus acts as an incubator to entrepreneurs.

8. Enhances the standard of living

The standard of living is a concept built on an increase in the amount of consumption of a variety of
goods and services over a particular period by a household.
So, it depends on the availability of diversified products in the market. Entrepreneurship provides
enormous kinds of a product of various natures by their innovation.

Besides, it increases the income of the people who are employed in entrepreneurial enterprises.
That also capable employed persons to consume more goods and services. In effect,
entrepreneurship enhances the standard of living of the people of a country.
9. Promotes research and development
Entrepreneurship is innovation and hence the innovated ideas of goods and services have to be tested by
experimentation.
Therefore, entrepreneurship provides funds for research and development with universities and research
institutions. This promotes the general development, research, and development in the economy.

Entrepreneurship is the pioneering zeal that provides events in our civilization.

We are indebted to it for having prosperity in every arena of human life- economic, technological and
cultural
Stages in the Entrepreneurship Development Process
Entrepreneurship is not just about making money and creating a name for you – it is about helping the
society by putting out such an idea into the work that it leaves behind an impression on everyone. It is not
easy to start your own venture.

It does come with challenges. But sometimes, it is more than worth it. Here are a few things you should
know if you are thinking of entering the world of entrepreneurship.

The question that arises is despite so many challenges entrepreneurs don't quit. This is because the joys of
entrepreneurship surpass the challenges for them.

• Entrepreneur recognizes and analyzes business possibilities. The analyzing of opportunities is a

risky task, and an entrepreneur looks out for inputs from other persons, including channel
partners, employees, technical people, consumers, etc. to reach an ideal business opportunity.
• Evaluation – The evaluation of an opportunity can be done by asking several questions to
oneself. For instance, questions like whether it is worth taking a chance and investing in the idea,
will it attract the consumer, what are the competitive advantages and the risk linked with it are
asked. A reasonable and sensible entrepreneur will also analyze his skills and whether it matches
his entrepreneurial objectives or not.
• Developing a plan – After the identification of an opportunity, an entrepreneur has to build a
complete business plan. It is the most important step for new business as it sets a standard and
the assessment criteria and sees if a company is working towards the set goals.
• Resources – The next step in the process of entrepreneurial development is resourcing. Here,
the entrepreneur recognizes the source of finance and from where the human resource can be
managed. In this step, the entrepreneur also tries to find investors for his new business.
• Managing the company – After the hiring process and funds are raised now its time to start the
operation to accomplish the desired goals. All the entrepreneur will decide on the management
structure that will be assigned to resolve the operational problems whenever it occurs.
• Harvesting – The last step in this process is harvesting, where an entrepreneur determines the
future growth and development of the business. Here, real-time development is compared with
the projected growth, and then the business security or the extension is initiated accordingly.

Strategies for Entrepreneurship Development

Entrepreneurship Development Program (EDP) may be defined as a programmed designed to help an
individual in improving his/ her entrepreneurial motive and in acquiring skills and capabilities necessary for
playing his/ her entrepreneurial role effectively.
An EDP stresses on entrepreneurial motivation and behavior. Programmed which aims at providing
informational or managerial inputs or focus on preparation of project without a touch of entrepreneurial
motivation and behavior is not considered as an EDP.
EDP helps in inculcating entrepreneurial traits into a person, imparting the required knowledge,
developing technical, financial, marketing and managerial skills and building the entrepreneurial attitude.
EDP has been recognized as an effective human resource development tool. It is primarily for developing
the first-generation entrepreneurs who on their own cannot become successful entrepreneurs.
EDP through its continuous process of training and motivation help them to set up their own profitable
enterprise and become successful entrepreneurs in their own right. It is not merely a training
programmed, rather it is a comprehensive programmed involving the following process:
• It is a process which enhances the knowledge, skill and motivation of the potential entrepreneur.
• It is a process which instills entrepreneurial behavior in the minds Of entrepreneur in their day-today
activities, and
 • It is a process through which the potential entrepreneurs can develop and set up their own
enterprise.
EDP by itself therefore, aims at achieving the specific objectives of the programmed through continuous
training and motivation.
It is the entrepreneur who organizes and puts to use capital, labor and technology in the best possible
manner for the setting up of his enterprise. The entrepreneur with his vision and ability to bear risk can
transform the economic scene of the country.
They play a vital role in initiating and sustaining the process of economic development of a nation. It is the
EDP through which the entrepreneurs learn the required knowledge and skill for running the enterprise
successfully which ultimately contribute towards economic progress in the following ways:
1. Creates Employment Opportunities: Acute unemployment has been a chronic problem of most of
the underdeveloped and developing nations of the world. EDPs help solving the problem of
unemployment by creating adequate employment opportunities in setting up of their own small and big
industrial unit where the unemployed are absorbed. EDPs also help the unemployed to opt for self-
employment by choosing entrepreneurship as a career. In this way EDPs help the entrepreneur to get
an opportunity to lead on independent and respectable life in the society and at the same time enable
others to get gainful employment.
2. Helps in Achieving Balanced Regional Development: Successful EDPs assist in accelerating
the pace of industrialization in the backward areas and helps in reducing the concentration of
economic power in the hands of a individual. Government encourages to set up industries in the
backward areas to remove wide gap of income and wealth between the rich and poor. The various
concessions subsidies offered by the State and Central Governments prompted the entrepreneurs to up
their own small and medium industrial units in the rural and backward areas. EDPs in setting up more
and more industrial units in the backward areas lead to the development of rural sector which helps in
achieving balanced regional development.
3. Prevents Industrial Slums: The towns and cities are highly congested and overcrowding due to the
growth of industrial slums which results in overburdening of civic amenities and a lot of problems
including adverse impact on the health of the people. EDPs help in solving the above problems by
preventing the growth of industrial slums through dispersal of industrial units in different parts of the
country including backward and rural areas. EDPs help entrepreneurs to know about the various
schemes, incentives, subsides and infrastructural requirements for setting their enterprises, particularly
in backward and rural areas. This checks migration of rural people to urban sector and thus controls the
growth of industrial slums.
4. Use of Local Resources: Plenty of locally available resources remain unutilized due to absence of
initiative and lack of adequate knowledge by the entrepreneurs. Proper use of these resources will help
to starve out a healthy base for rapid industrialization and sound economic growth. EDPs can help in the
proper use of locally available resources by providing proper training, guidance and education to the
potential entrepreneurs.
5. Easing Social Tension: EDPs help in channelizing on right lines the talent and energies of
unemployed youth feel frustrated after completing their education without a job or source of livelihood.
Unemployment and frustration amongst the young and educated people lead to social unrest Lid
tension. EDPs help in diverting the talent of the youth towards self-employment careers by establishing
their own enterprises and thus creating employment opportunities for the unemployed. In this way EDPs
are able to defuse the social tension and unrest among the youth.
6. Economic Independence: The entrepreneurs through EDPs are able to achieve economic
independence of a country by producing a wide variety of better-quality goods and services at
competitive prices. They also through export promotion and import substitution able to earn and save
urge amount of foreign exchange which is essential for the growth and development of any economy.
7. Improves the Standard of Living and Per-Capita Income: EDPs provide the necessary support to
entrepreneurs by educating them about the test innovation and techniques of production to produce a
large variety of quality goods id services at competitive prices. EDPs also help in establishing more
enterprises which ad to provide more employment opportunities and help in increasing the earning of the
people. It will result in increase in per-capita income and thus helps in the improvement of standard of
living of the people.
8. Helps in the Overall Development of the Nation: Entrepreneur acts as a catalyst which helps in
enhancing the various activities involved a business enterprise. In recent years EDP package, have
become a vital strategy for harnessing the vast untapped human skills, and put them into industrial
development. It results in the emergence of entrepreneurial opportunities in various fields which leads to
all-around development in a country.
 MOTIVATION
 Motivation is the driving force within people that get them to act in the way they do.
When running a business, no matter how many times you face failure, it is essential to never back down.
The jolt of a business journey is always hard, but individuals should stay motivated during those hard times
and keep at it. It’s only when a founder is determined to take on the day's responsibilities that his/her
employees too guise forward in completing their targets for the day.

WHAT IS MOTIVATION

 The term motivation has been derived from the word 'motive' motive may be defined as a state of our
inner mind that move or activates or energizes and directs our behavior towards our goals.
 According to Dalton E. McFarland, "motivation refers to how urges drive desires, striving, aspirations,
or need direct, control or explain human beings' behavior.
3 ESSENTIAL ELEMENTS OF THE PROCESS OF MOTIVATION
 1. Motive
 2. Behavior
3. Goals
MASLOW’S NEED HIERARCHY THEORY
Maslow's theory is based on human needs; these needs are classified into a sequential priority form the
lower to the higher order.
THE PHYSIOLOGICAL NEEDS
 are physical requirements for human survival
e.g., air, food, drink, shelter, clothing, warmth, sex, and sleep.
THE SAFETY NEEDS

 If an individual's physiological needs are satisfied, the demands for security and the safety become
salient. People want to experience order, predictability, and control in their lives.
These needs can be fulfilled by the family and society (e.g., police, schools, business, and medical
care).
THE LOVE AND BELONGINGNESS NEEDS
 after a physiological and safety needs have been fulfilled, the third level of human needs is social
and involves feelings of belongingness. The need for interpersonal relationships motivates behavior
Examples include intimacy, friendship, acceptance, trust and giving receiving affection and love.
Affiliating, being part of a group (family, friends and work).

 ✔️The Physiological needs

 ✔️The Safety needs
✔️The love and belongingness needs
THE ESTEEM NEEDS
 this are the fourth (4th) level in Maslow's hierarchy - which Maslow classified into two categories:
 esteem for oneself (dignity, achievement, mastery, independence) and
 the desire for reputation or respect from others (e.g., status, prestige).
Need to gain self-respect, confidence, competence, and knowledge that others looks up to us in
high regard.
THE SELF-ACTUALIZATION NEEDS
are the highest level in Maslow's hierarchy and refer to realizing a person's potential, self-
fulfillment, seeking personal growth and peak experiences. Maslow (1943) describes this level as
the desire to accomplish everything that one can, to become the most that one can be.
 BEING VALUES
Truth, goodness, beauty, transcendence of dichotomies, aliveness or spontaneity, uniqueness,
perfection, completion, justice, Simplicity, richness or totality, effortlessness, playfulness of humor,
and self-sufficiency.

Which of these motivations drives you the most?

Entrepreneurship is the oldest form of business organization. It is in fact entrepreneurs that bring
innovation into our economy with new products and services. They drive a nation’s economy towards
development and progress. Let us explore some of the traits and characteristics of an entrepreneur.

• Entrepreneurial traits are the typical characteristics, abilities and thought patterns associated with
successful entrepreneurs.

While some entrepreneurs are born with these traits, others can develop them. These include:
✔ Being a good leader
✔ Being optimistic
✔ Being confident
✔ Being passionate
✔ Being disciplined
✔ Being proactive
✔ Keeping an open mind
✔ Being competitive
Being kind

• Moderate risk takers are those entrepreneurs who are often characterized as willing to assume a
moderate amount of risk in business, being neither overly conservative nor likely to gamble.

Self-confidence is an attitude about your skills and abilities. It means you accept and trust yourself and
have a sense of control in your life. You know your strengths and weakness well, and have a positive
view of yourself. You set realistic expectations and goals, communicate assertively, and can handle
criticism.

The definition of hard working is something or someone that is diligent in laboring and that puts effort
into doing and completing tasks.
Goal-Oriented
Instead of being ambitious, it's important to be goal-oriented. That means you understand the
importance of creating, pursuing and ultimately meeting goals, and you have the personality and
discipline necessary to ensure your business maintains good goal habits.

Responsible

Being responsible means being dependable, keeping promises and honoring our commitments.
Innovative
Something innovative is new and original. If you love to experiment and find new ways to do things, you
are an innovative person. Innovative, like nova, novel, and novice, comes from the Latin novus, which
means new. Something innovative renews or alters the way something has been done.

Knowledgeable About Technical Factors

• these are factors that provide the physically immersive qualities of an experience.

Knowledgeable About Business Factors

You will also need business knowledge. Business knowledge is knowing how to operate the enterprise.

Advantages of Working for Yourself

THOSE WHO CHOOSE ENTREPRENEURSHIP AS A CAREER USUALLY DO SO FOR FIVE APPEALING

REASONS: (1) PERSONAL SATISFACTION, (2) INDEPENDENCE, (3) PROFIT, (4) JOB SECURITY, AND
(5) STATUS.
Personal Satisfaction
• The individual's experience of a sense of fulfillment of a need or want and the quality or state of being
satisfied.
Independence
• The state or quality of being independent. freedom from the control, influence, support, aid, or the
like, of others.
Profit
a financial gain, especially the difference between the amount earned and the amount spent in buying,
operating, or producing something.
Job Security
• the state of having a job that is secure and from which one is unlikely to be dismissed.
Status
Status is a person’s social rank or position.
Disadvantages of Working for Yourself
IN ADDITION TO KNOWING THE ADVANTAGES OF WORKING FOR YOURSELF, YOU SHOULD
ALSO BE FAMILIAR WITH THE DISADVANTAGES: (1) POSSIBLE LOSS OF INVESTED CAPITAL, (2)
UNCERTAIN OR LOW INCOME, (3) LONG HOURS, AND (4) ROUTING CHORES.
Possible Loss of Invested Capital
A risk of entrepreneurship is the possibility of losing invested capital. Invested capital refers to the
entrepreneur’s money used in starting the enterprise. As a general rule, the riskier the business, the
greater the profit potential. If the enterprise succeeds, profits may be high; if not, invested capital may
be lost. The entrepreneur risks losing personal and family savings. It may take years to repay banks,
suppliers, or individuals who made loans to get the business started.
Uncertain or Low Income.

Another disadvantage of owning your own business is the possibility of uncertain or low income. Unlike
paychecks of salaried workers, profits usually vary from month to month. This is true even in well-
established enterprises. When income is available, there may not be enough to meet personal and family
needs. This is often the case during the first six to twelve months of operation. The level of sales and
income tends to be low in these early months when the business is not known to many people.
Long Hours
it means that you work for a period of time that is longer than the usual, regular, or routine for a given
activity. In other words, it may mean overtime.
 Routine Chores
Running your own business may involve chores you do not like. For example, new business owners
expect to do some paperwork. However, many do not realize how much is required until the business is
started. By that time, some feel they are buried under a mound of paper. One of the surprises is the
extent of record keeping for items such as billing, payroll, and taxes. Maintenance and cleaning are
other chores that must be performed each day. While it is possible to hire employees to perform these
routine duties, a shortage of cash may prevent owners from doing so.

Entrepreneurs take significant financial risks, work long hours, and practically torture themselves to stay afloat and
build a business from the ground up. If you think about it, it's a downright harrowing ordeal. Why would anybody
want to go through with it?

It's because, despite the hardships of the experience, there are nuggets of joy and satisfaction derived from it, and, at
the end of the tunnel, if you're committed enough, is a substantial reward. Those nuggets and tips are different for
everybody, but there are five primary motivations that drive most entrepreneurs if you analyze it carefully.
AGENDA
• Motivation that Drives People to Engage in Entrepreneurship
• Internal Environment Motivation
• External Environment Motivation

1. MONEY

• You can deny it all you want, but the vast majority of entrepreneurs get into the game at least partially
because of the potential to make lots and lots of money. Stories about entrepreneurial geniuses like Richard
Branson and Mark Zuckerberg make it seem possible for any enthusiastic citizen with a good idea to become
an overnight billionaire.
This is not exactly true, but for some dedicated entrepreneur with a good idea and great timing they can make
a lot more money than they can ever could in a traditional position. There's nothing wrong with pursuing
money, but if the allure of wealth is the only thing driving you, you risk becoming frustrated if you don’t turn a
profit in the first few years.
2. FLEXIBILITY

Some entrepreneurs venture out on their own because they're tired of the demands of traditional work. In a high-
level position, the markets are exceptional -- working long hours, catering to your bosses and clients' whims, and
being stuck in the same old rut of responsibilities. Being your boss in the world of entrepreneurship frees you
from those restraints.

You can work your hours, wherever you feel like doing, and set your own goals and responsibilities. Just be aware that
entrepreneurship is too demanding, especially in the early stages of growth, so working your hours doesn't always
mean working fewer hours or working under less stress. Many people find that they work longer, harder, and
under tighter constraints as entrepreneurs than they did as workers -- but it is still a rewarding one.

3. CONTROL

4. The need for a control drives many entrepreneurs who aspire to attain a leadership position. When you're the
boss of your organization, you'll get to call all the shots, from who gets hired, and at what salary and to what
new strategic directions your business may be facing.
5. Workers are tired of their previous companies' poor performances, or those working under an inept CEO,
might be primarily motivated by existing factor. Once it is rooted in a business, entrepreneurs have full control
over every decision made under them. Of course, the flip side is the additional stress and pressure that go
along with that responsibility. You'll get the privilege of setting the system for your business, but you'll have
only yourself to blame if that course fails.

4. TEAMWORK
Some people love working with others. They like the atmosphere of team

-based creative problem solving and the interactions that is mutually respectful, intelligent people, and the thrill of
succeeding together. Some jobs offer direct supervisory or leadership roles, but there's nothing like building your
team from scratch.

As an independent entrepreneur, you'll choose your strategic partners, mentors, core team, and even your first round
of subsequent employee hires. That means you'll get to pick the skill sets, talents, and personalities you want to
work with, and you'll never have to worry about working on a team that you don't like or can't be productive with.
In some ways, your company's team will be like your family. Just remember that no family lives without occasional
disagreements.

6. LEGACY

Entrepreneurs are not only for the money. The experience as much as they're in it for a lasting legacy. They might
want to become the face of a brand and earn a taste of fame along the way. They might want to leave behind
something that appreciates them. They might even want to pass the business on, to a future generation. The
point is, they want to create something meaningful that's going to outlast them. This motivation is one of the
strongest link for the entrepreneurs because it can't be obtained in any other application, and it last a lot longer
than money or experiences.

Which of these motivations drives you the most? Hopefully, you're motivated by more than one of them. Further, the
more driven you are, the less intimidated you're going to be, when the inevitable challenges pop up along in your
journey. Before you dive into the world of entrepreneurship, think critically about what it is, exactly, that you want
out of the experience. Understand your motivations before you get involved; you'll find yourself more satisfied in
the long run.

INTERNAL ENVIRONMENT MOTIVATION

MOTIVATION IS SOMETHING THAT INFLUENCES HUMAN BEHAVIOR; INTERNAL MOTIVATION IS A

DRIVER OF THE EMPLOYEE TO WORK AS WELL IN THE COMPANIES. THE WORK ENVIRONMENT IS
WHERE THE EMPLOYEE CONDUCTS DAILY ACTIVITY, AND THE WORK ENVIRONMENT IS
EVERYTHING AROUND THEM, THEN ABLE TO INFLUENCE THEMSELVES TO ACCOMPLISH THE TASK.
 Maslow explains it and it is the top-level need refers to the desire for self-fulfillment. The need for freedom and
self-fulfillment makes the individuals or employees of the organization make them become influential leaders
or entrepreneurs.

OPTIMISM
Individuals having a positive mindset to get motivated by finding opportunities during critical situations as well.
Positive attitude and the perception motivate an individual to work out for the best, even during unfavorable
and challenging conditions.
POSITIVE ATTITUDE
A positive attitude is an essential factor that motivates individuals to become successful entrepreneurs.
Habituating a positive attitude can lead an individual to develop constructive thinking; it encourages them to
become influential entrepreneurs. Finally, a positive attitude can prove how valuable they are
SELF-MOTIVATION

Most successful and influential entrepreneurs are self-motivated; here, they fulfill the desired objectives by
motivating themselves. Though many individuals have ideas, they cannot put those for business development;
however, self-motivated people can make decision to execute the better idea.

ENTHUSIASM
The enthusiasm motivates in finding better solutions; finally, it stabilizes the ideas and makes them become
creators and innovators, resulting in becoming a successful entrepreneurs
COMMITMENT
To achieve success, the commitment towards a goal should be made for it motivate the entrepreneurs in
inspiring and developing emotional attachment towards an objective.
EDUCATION
The education is the most crucial factor it motivates a person to innovate and create new products; this results
in establishing an organization or a new business venture. The extent knowledge acquired during the course of
time and innate skills highly motivates a person to become a successful entrepreneur.
BACKGROUND
 The family background, occupational background, and a person's own experience in a job motivate him/her to
become entrepreneurs. Having an entrepreneurial environment acts as a clear path to becoming a successful
and influential entrepreneur.
FINANCIAL BACKGROUND
Finance is a scarce resource that motivates and enables a person to become an entrepreneur. Money can do
many things. It is the primary thing in deciding one's status and development; strong financial background
facilitates to start a business.
EXTERNAL ENVIRONMENT MOTIVATION
INFLUENCE
Influence of family members, friends, and society motivates individuals to become entrepreneurs. The extent of
influence shows an effect on the character, behavior, and development; it comes from the external
environment. Here people get influenced by seeing successful entrepreneurs or by the words of others.
RESOURCES AVAILABILITY
Availability of resources motivates, to a great extent, to become entrepreneurs, availability of land, labor,
money, machinery, and materials make an individual start a new business. Although there is creativity,
intelligence, commitment, and enthusiasm in the individuals, resources' unavailability becomes an obstacle for
new entrants or entrepreneurs.

PRODUCT’S DEMAND
Higher demand for a particular product motivates entrepreneurs to produce innovative, value-added products;
here, the product's need motivates them to become entrepreneurs. The hope of success makes them produce
innovative products or substitute products; some entrepreneurs fulfill the market demand by producing
complementary goods. So, the increase in product demand highly motivates to become entrepreneurs.
GOVERNMENT POLICIES
The government's subsidies and benefits motivate entrepreneurs to produce new products or encourage
individuals to become entrepreneurs. Government policies show a more substantial influence on establishing
new firms, and it leads to economic development. In small-scale industries, rural people are encouraged by the
various training programs, financial support, and subsidies; it is one of the core reasons for establishing new
firms and the arrival of new entrants.

AVAILABILITY OF INFORMATION

Market knowledge and information motivate individuals to enter into the markets and to become entrepreneurs. If
there is much information, it automatically creates an interest in enthusiastic people's minds to become
entrepreneurs.

The availability of information facilitates research and producing innovative and value-added products, and it creates
a scope to become entrepreneurs.

TECHNOLOGICAL ADVANCEMENT
Advancement in technology is vital and it acts as a path to transform ideas into products, feasibility in
production, and highly motivated entrepreneurs' expected success rate. It reduces the errors and cost of
production and maximizes success rate; this is why business people interested in becoming entrepreneurs with
the increase in technology.

CHANGING TASTES AND PREFERENCES

Changing tastes and preferences of the customers maximize the chance to produce substitute and complementary
goods; it creates scope to innovation and establishment of the new ventures.