Entrepreneurship

Development
DR MURUGAN RAMU

ASSOCIATE PROFESSOR , SSL, SIMATS

 UNIT I: INTRODUCTION

• Entrepreneurship- Meaning- types qualities of an entrepreneur – classification of

entrepreneurs- factors influencing entrepreneurship- functions of entrepreneurs

 Meaning of Entrepreneurship:

• Entrepreneurship is a process of actions of an entrepreneur who is

a person always in search of something new and activities such

ideas into gainful opportunities by accepting the risk and

uncertainty with the enterprise.

 Definition

• “Entrepreneurship is the process of creating something new with

value by devoting the necessary time and effort, assuming the
accompanying financial, psychic and social risks and receiving the
resulting rewards of monetary and personal satisfaction and
independence.”
 Characteristics of Entrepreneur
 Hard work
 Desire for High Achievement
 Highly optimistic
 Independence
 Foresight
 Innovator
 Good organizer
 Qualities of Entrepreneurs

 Discipline
 Confidence
 Opened Minded
 Self Started
 Competitive
 Creativity & Innovation
 Determination
 Strong people skills
 Strong Business ethics
 Passion
 Classification of entrepreneurs

According to types of Business :

 Business Entrepreneurs
 Trading Entrepreneurs
 Industrials Entrepreneurs
 Corporate Entrepreneurs
 Agriculture Entrepreneur
 According to Motivation
 Pure entrepreneur
 Induced entrepreneur
According to the Use of Technology:
 Technical entrepreneur
 Non-technical entrepreneur
 Professional entrepreneur
 According to Stages of Development
 First generation entrepreneur
 Second generation entrepreneur
 Classical entrepreneur
According to Capital Ownership
 Private entrepreneur
 State entrepreneur
 Joint entrepreneur
 According to Gender and Age
 Man entrepreneur
 Woman entrepreneur
 Young entrepreneur
 Old entrepreneur
 Middle-aged entrepreneur
 According to Area
 Urban entrepreneur
 Rural entrepreneur
According to Scale
 Large scale industry entrepreneur
 Medium scale industry entrepreneur
 Small scale industry entrepreneur
 Tiny industry entrepreneur.
 Types of Entrepreneur
• Innovative Entrepreneurs
• Imitating Entrepreneurs
• Fabien Entrepreneurs
• Drone Entrepreneurs
• Social Entrepreneurs
 Factors Influencing Entrepreneurship
• Personality Factors
• Environmental factors
 Functions of an Entrepreneur
 Innovation
 Assumption of Risk
 Research
 Development of Management Skills
 Overcoming Resistance to Change
 Catalyst of Economic Development
 UNIT II: ENTREPRENEURIAL
DEVELOPMENT
• Business Environment - Role of Family and Society - Entrepreneurship Development
Training and Other Support Organisational Services - Central and State Government
Industrial Policies and Regulations - International Business.
 Business Environment

The emergence and development of entrepreneurship is not a spontaneous

one but a dependent phenomenon of economic, social, political,

psychological factor often nomenclature as supporting condition to

entrepreneurship development.
 Factors - May have both positive and
negative
For analytical purpose this conditions factor are grouped and discussed
under two categories (i.e.) Economic factor and non-economic factor
• Economic factor
i) Capital
ii ) Labour
iii) Raw material
iv) Market
 Non-Economic factor
• Social Conditions
i) Legitimacy of entrepreneurship –social status/traditional value

ii) Social mobility - geographical

 Role of Family and Society in Entrepreneurial
Environment

• Marginality, Market Economy

• Security, entrepreneurial energy, creativity and motivation
• Need achievement, undertakes the risk of the enterprise , seeks opportunities to profit
• They're capable of bringing together the money, raw materials, manufacturing facilities, skilled
labor and land or buildings required to produce a product or service.
• They're capable of arranging the marketing, sales and distribution of that product or service.
• Entrepreneurs are optimistic and future oriented; they believe that success is possible and are
willing to risk their resources in the pursuit of profit
• They're fast moving, willing to try many different strategies to achieve their goals of profits. And
they're flexible, willing to change quickly when they get new information.
 Roles of An Entrepreneur in Developing
Country
• Determine objective
• Development of the organization
• Securing resources
• Arranging technology and equipment
• Developments of new market
• Good relation between public authorities and market
• Management of human relations
• Financial management
• Production management
 Training and Entrepreneurship
Development Programme in India
• Entrepreneurship Management
• Training and Entrepreneurship Development Programme in India
• Importance of training
• Methods of training
• EDP- Need and importance
• Phases of EDP
• Selection of entrepreneurs for EDP
• Training programme - Course contents
• Pre requisites of EDP
• Organisations providing EDP
 Importance of Training
• Entrepreneurship Management
• Ensures availability of skilled manpower at all management levels
• Enhancing abilities, potential among entrepreneurs
• Increase efficiency
• Maintain and enhance product quality
• Minimize wastages in production process
• Minimize accidents on the job
• Reduce fatigue and increase speed of work
• Standardization in industry and internal processes
 Entrepreneurship Management
 Methods of Training
 Entrepreneurship Management
 Individual instruction
 Group instruction
 Lecture method
 Demonstration method
 Written instruction method
 Entrepreneurship Management
• EDP
• Entrepreneurship Management
• Designed with an aim of encouraging self employment
• Imparts training and motivates potential and existing entrepreneurs to start new business or
diversify and expand the existing one
• Helps employment and wealth creation among educated unemployed youth
• Well equipped to face risks and challenges as an entrepreneur
• Government needs considerable human and material resource, importance to detailed
planning & implementation
 Entrepreneurship Management
• Phases of EDP
• Entrepreneurship Management
• Select area from existing government policy guidelines/socio-economic reports
• Techno-economic survey of the selected area; feasibility study
• Identify potential and existing entrepreneurs interested in starting new
business/expansion/diversification
• Training Follow up and consultancy services
 Selection of entrepreneurs for EDP
• Entrepreneurship Management
• The programme is well publicized and promoted to attract maximum applications for
screening
• Selection of top 25 to 30 applicants only
• Applications screened for: Demographics and socio cultural data – age, education, work
exp, financial resources, type of business etc
• Motivation factors – pull factors, source of encouragement, credibility, endurance,
concreteness of plans
• Psychological test results- traits like risk taking, need for achievement
 7Training – Course contents

• Entrepreneurship Management
• Introduction to entrepreneurship
• Motivation training
• Essentials of management
• Fundamentals of project feasibility study
• Organising the business
• Plant visit
 Organisations providing EDP
• Entrepreneurship Management
• Organisations providing EDP
 Entrepreneurship Management

• National Institute for entrepreneurship and Small Business Development (NIESBUD)

• Entrepreneurship Management
• Established by Government of India in 1983
• An apex body for coordination and supervision on activities of various institutes engaged in
entrepreneurial development
• Helps evolution of EDP, model syllabi, effective training strategies, methodology, manuals and tools
• Activities undertaken: Organize and conduct training programmes
• Coordinate training activities of various agencies/institutes
• Provide affiliation to such institutes
• Hold examinations and confer certificates to trainers and trainees
Small Industries Service Institutes (SISI)
• Entrepreneurship Management
• Three months part time evening courses in management
• 4-6 weeks part time courses in intensive training in functional areas (marketing,
finance)\
• Special courses in quality control, HR, production planning, product development etc
• Mobile workshops imparting training on correct usage of tools and equipment
• Helps with preparation of plant layouts
• Helps individual firms on specific problems faced
 Small Industries Development
Organisation (SIDO)
• Entrepreneurship Management
• Runs EDP in collaboration with financial institutes, directorate of
industries
• Gives on the job training on shop floor (carpentry, electrical
devices)Sends its officials/trainers to organizations to update their
knowledge
 National Small Industries Corporation (NSIC)

• Entrepreneurship Management
• Provides apprenticeship for 2 years
• Training supervisory staff of SSI up to 2 years
• Training to engineers up to 2 years
• Training workmen for 12 months
• Training to set up own venture
• Advice on machinery and components
• Production of technologically advanced machines
 Entrepreneurship Development Institute
of India (EDII)
• Entrepreneurship Management
• Develops programmes for entrepreneurial training and development
• Develops innovative training techniques for trainers
• Focused attention on women entrepreneurs with first such EDP in 1988
• EDP for rural entrepreneurship development in U.P and Orissa
• Famous for organising camps on entrepreneurship
• Conducted EDP in Sri Lanka, Nepal, Ghana, Kenya etc
National Alliance of Young Entrepreneurs
(NAYE)
• Entrepreneurship Management
• Contribution in encouraging women entrepreneurship
• Set up women’s wing in 1975This wing assists women in: Getting better access to
resources, infrastructure, markets Identify investment opportunities
• Attending to problems of individual industries
• Sponsor participation in trade fairs, exhibitions, conferences
• Organise seminars, training programmes, workshops