EOE-071: ENTREPRENEURSHIP

DEVELOPMENTUNIT

By:-Prof.(Dr.) J.P.MANI

UNIT-I
Entrepreneurship definition, growth of
small scale industries in developing
countries and their positions vis-a-vis large
industries; role of small scale industries in
the national economy; characteristics and
types of small scale industries; demand
based and resources based ancillaries and
sub-control types.
Government policy for small scale industry;
stages in starting a small scale industry.

UNIT II
Project identification- assessment of viability,
formulation, evaluation, financing, field-study and
collection of information, preparation of project report,
demand analysis, material balance and output
methods, benefit cost analysis, discounted cash flow,
internal rate of return and net present value methods.
UNIT III
Accountancy- Preparation of balance sheets and
assessment of economic viability, decision making,
expected costs, planning and production control,
quality control, marketing, industrial relations, sales
and purchases, advertisement, wages and incentive,
inventory control, preparation of financial reports,
accounts and stores studies.

UNIT IV
Project Planning and control: The financial functions cost of capital approach
in project planning and control. Economic evaluation, risk analysis, capital
expenditures, policies and practices in public enterprises, profit planning and
programming, planning cash flow, capital expenditure and operations, control
of financial flows, control and communication.
UNIT V
Laws concerning entrepreneur viz, partnership laws, business ownership,
sales and income taxes and workman compensation act.
Role of various national and state agencies which render assistance to small
scale industries.
Text / Reference Books:
1. Entrepreneurship development- Dr. R.K Singhal, Sruti Singhal, S.K. Kataria &
Sons.

2. Essentials of Entrepreneurship and small business management- Thomas W.

Zimmerer & Norman M. Scarborough, PHI 4th Edition.

3. Small Scale Industries and Entrepreneurship- Vasant Desai, Himalaya, 2008.

4.Entrepreneur Development-Satish Taneja, S.L. Gupta, Galgotia Publishing
Company.(Available in Library)

Who is ENTREPRENEUR ?
A Entrepreneur

is a person who
establishes and manages his own enterprize
or Business.

And

the Process of establishment and

management is called Entrepreneurship.

Concept of ENTREPRENEUR

ENTREPRENEURS are people who have the ability

to see and evaluate Business opportunities.

Action oriented, Highly Motivated.

He studies the market situation, explores profitability.

A successful ENTREPRENEUR continuously

modifies his goals on the basis of the feedback he
receives from the environment.

Concept Cont

ENTREPRENEURS set high goals for themselves as

well as their workers and drive them hard to achive the
same.

He is certainly different from other person in terms of

his psychological and social disposition.

Need for ENTREPRENEURSHIP

Devolopment.
1. National Need: Creating

large employment opportunities.

Distribution

of Ownership.

Diversification
Development

of Management.

of Rural and Backward areas.

Need

Cont

Need for Technical ENTREPRENEURS:A technically qualified and experienced person can make a
more competent entrepreneur as he has aquired special
knowledge of ;
Science,
Engineering,
Materials and machines,
Production planning and control,
Manufacturing and management techniques.

Scope of
ENTREPRENEURSHIP
1.Decision to become an entrepreneur.
2.Identification and selection of an opportunity.
3.Business plan formation and its implementation.
4.Entrepreneurial Continuum:-A series of
Enrepreneurial decisions and actions have to be taken which
require right attitude and requisite knowledge and skill for
entrepreneurial continuum.

Rewards and Penalties for an

ENTREPRENEUR.
REWARDS:1.Freedom to work.
2.Satisfaction of being own boss.
3.Power to do things as he likes.
4.Retirement assurance.
5.Respect of family and friends.

Penalties :1.Constraints of finances,customers,labourers,suppliers etc.

2.Frustation due to unavailability of limited Capital and
other Resources.
3.Social and family life is affected.
4.Frustation due to non-achievement of full objective.
5.Risk of Failure.

Role of an Entrepreneur in SocioEconomic Development

1.Employment Generation.
2.Entrepreneurial culture.
3.Foreign Exchange.
4.Alternate Profession.
5.Competitive price.
6.Exploration of consumers.
7.Ancilliary Industries.
8.Development of Rural and Backward areas.
9.Diversification of management.

Cont
10.Distribution of ownership of business.
11.Utilization of local skill and materials.
12.Environmental control.
13.Infrastructure Development.
14.Local Employment.

Qualities of an
ENTREPRENEUR
1.Need to Achieve.
2.Perseverence:-He is not deterred by difficulties and problems.
3.Moderate risk taking.
4.Ability to find and Explore Opportunity.
5.Analytical ability.
6.Using Feedback.
7.Facing Uncertainty.
8.Independence.
9.Flexibility.
10.Planning.

Cont
11.Interpersonal skills.
12.Motivator.
13.Stress Taking.
14.Positive Self Concept.
15.Orientation of Future.

Working Profile of an
ENTREPRENEUR
1.Self Confidence.
2.TaskResult Oriented.
3. Risk-taker.
4. Leadership.
5. Originality.
6.Future-Oriented.

Types of ENTREPRENEURS.
1.Innovative Entp.
2.Adaptive Entp.
3.Fabian Entp.
4.Drone Entp.

Other types of
Entrepreneurs
1.Individual Entrepreneurs.
2.Entrepreneurs by Inheritance.
3.Technical Entrepreneurs.
4.Forced Entrepreneurs.
5.Miscellaneous Types of Entrepreneurs:-Agriculturer
Entp.,Industrial Entp.,Women Entp.,Rural Entp.

Functions of an
ENTREPRENEUR
1.Sensing Entrepreneurial Opportunities.
2.Generation of Business Idea.
3.Converting Idea into Reality.
4.Arranging Resources.
5.Supply of capital.
6.Establishment of Enterprize.
7.Managing the Enterprize.
8.Growth and Development.

Barriers to
ENTREPRENEURSHIP
1.Lack of Concept.
2.Lack of Market Knowledge.
3.Lack of Technical Skills.
4.Lack of Capital.
5.Lack of Business Knowledge.
6.Lack of Motivation.
7.Time Pressure and Distractions.
8.Rule-Regulations.
9.Monopoly.

THANK YOU.
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