@ Choice Based Credit System TAXMANN™S ‘Entrepreneurship . CA (Dr.) Abha Mathur Associate Professor Department of Commerce Satyawati College | University of Delhi 3rd EditionSyllabus Paper BCH 2.4(a): ENTREPRENEURSHIP Duration: 3 Hrs Marks: 100 Credit Course Contents Unit I: Introduction Entrepreneurship - meaning and importance, entrepreneurship in Indian context, entrepreneurship as a creative solution provider, meaning of various terms related to entrepreneurship-intrapreneurship, social entrepreneurship, net entrepreneurship, technopreneurship. Unit Ih Entrepreneurial Eco-System Socio-economic support system for entrepreneurship; Public and private system of stimulation; Role of development institutes, availability of finance, marketing, technology and project related assistance; Role of trade associations and self-help groups for promotion of entrepreneurship; Types of business centities-micro, small and medium enterprises, role of MSME sector in Indian economy family businesses in India; Conflictsin family business;Stariup Action Plan; Make in India initiative. Unit Ill: Enterprise Formation Process Understanding and analyzing business opportunities, market demand analy- sis, project feasibility study; preparation of business plan; Startups and basic startups problems, sources of financing business startups, Cases of Indian startups (practical knowledge on preparation of business plan/project report shall be imparted). Unit IV: Managerial Aspects of Business Managing finance - preparation of operating/ cost budget, cash budget; Under- standing management of short term and long term capital; Human resource planning; Contract management; Understanding marketing methods; Under- standing of GST and other tax compliances. £13La SYLLABUS Unit V: Managing Growth Business growth strategies specific to small enterprises; Enterprise life cyeleand various growth strategies; Business collaboration and outsourcing of resources; Network management; Succession planning for sustenance. Practical Visit to new enterprise for securingideas and knowledge on enterprise creation Process and effecting an interaction with the entrepreneur is an essential requirement for learners for ensuring the propensity of entrepreneurial orientation among the students, linial al SYLLABUS 115 [Link]. : Semester VI (G-E.) Paper BC 6.4 (a): ENTREPRENEURSHIP DEVELOPMENT Duration: 3 Hrs. Marks: 100 Credits Course Contents Unit I: Introduction Entrepreneurship - meaning importance and determinants; Entrepreneurship as a dynamic response to societal issues; Entrepreneurship in Indian scenario ‘asa career option; Understanding intrapreneurship, techno-entrepreneurship, net-entrepreneurship, eco-entrepreneurship, and social entrepreneurship. Unit I: Entrepreneurial Eco-System Socio-economic support system for entrepreneurship; Public and private system of stimulation; Role of Development Institutes, availability of finance, marketing, technology and project related assistance, role of trade associations and self-help groups for promotion of entrepreneurship; Types of business entities - micro, small and medium enterprises, role of MSME sector in Indian economy; Nature and characteristics of family businesses in India; Startup Action Plan; Make in India initiative. Unit Il: Enterprise Formation Process Understanding and analyzing business opportunities; Market demand analysis, preparation of business plan, project feasibility study; Startups and basic start ups problems; Cases of Indian startups, Sources of financing business start ups (practical knowledge on preparation of business plan/project report shall be taught in the class). Unit IV: Managerial Aspects of Business Managing finance - preparation of operating/cost budget, cash budget; Under- standing management of short-term and long-term capital; Human Resource planning; Contract management; Understanding marketing methods; Under- standing of GST and other Tax compliances. Unit Business growth strategies specific tosmall enterprises; Enterpriselifecycleand, various growth strategies; Business collaboration and outsourcing of resources; Network management, succession planning for sustenance; Managing family business and its conflicts. : Managing GrowthEntrepreneurship - An Insight ‘This is entrepreneurship in brief Quite often, the difference between a successful person and a failure is not one’s better abilities or ideas, but the COURAGE AND RISK TAKING ATTITUDE one has to bet on those ideas, to take a calculated risk - and ACT. i audhary - better known as the ‘noodle king | ceording to Binod of Nepal’ | there is no monopoly on wisdom by big educational institutes. 1 firmly believe ENTREPRENEURS’ are born, There is no school in the world which can teach you entrepreneurship, although there | are courses”Contents PAGE About the Author 15s Preface 17 Acknowledgements 19 Syllabus 113 Entrepreneurship - An Insight LIT UNITI INTRODUCTION ‘ ES ENTREPRENEURSHIP - MEANING AND IMPORTANCE, ENTREPRENEURSHIP IN INDIAN CONTEXT, ENTREPRENEURSHIP AS A CREATIVE SOLUTION PROVIDER 1.1 Understanding the Meaning an Entrepreneur 14 1.1.1 Definitions 14 1.1.2 History of the term ‘Entrepreneur’ 15 1.1.3 Characteristics /Qualities of an Entrepreneur 15 1.1.4 Types of Entrepreneurs 18 1.2. Entrepreneurship - Meaning, Nature & Concept 19 1.2.1 History of Entrepreneurship Li 1.2.2. Functions of Entrepreneurship 12 1.2.3 Process/Steps involved in Entrepreneurship 114 1.3 Entrepreneurship in Indian context 116 1.3.1 The Entrepreneurship Life Cycle LIT 1.3.2 Risks involved in Entrepreneurship Li7 1.33 Need and Significance of Entrepreneurs in India LI8 19120 CONTENTS: 1.4 Entrepreneurship as a creative solution provider 144 14.2 143 144 148 14.6 Attributes of a creative Entrepreneur Role of Creativity and innovation in Entrepreneurial Process Factors that promote creativity and innovation Need for Creativity and Innovation Significance of Creativity Examples of noted Persons/Companies which gave creative Products/Services to the society 2 MEANING OF VARIOUS TERMS RELATED TO ENTREPRENEURSHIP INTRAPRENEURSHIP, SOCIAL ENTREPRENEURSHIP, NET ENTREPRENEURSHIP, TECHNOPRENEURSHIP. 2.1 Intrapreneurship - Meaning & Concept 241 212 aia 214 Definitions of Intrapreneur History of the term Intrapreneur ‘Types of Intrapreneurs Features of Intrapreneurship 2.2 Examples of Companies that encourage intrapreneurs 2.3 Entrepreneur vs. Intrapreneur 2.4 Social Entreprencurship 2.4.10 Meaning & concept of a social entrepreneur istory of Social Entrepreneurship Definitions of Social Entrepreneurship Characteristics of Social Entrepreneurship, Role of Social Entrepreneurship ‘Types of Social Entrepreneurships Commercial Entrepreneurship - Concept Characteristics of Commercial Entrepreneurship Comparison between Social & Commercial Entre- preneurship Social Entrepreneurship vs. Entrepreneurship 2.5 Netpreneurship 2.5.1 Characteristics of Netpreneurship PAGE. 1.20 1.20 120 121 1.22 1.22 1.23 22 22 2u 2ut 212 212 213 213 214 25 :20 20 ar ar 22 22 CONTENTS: 2.5.2 Pre-requisites for being a successful Netpreneur 2.8.3 Objectives of Netpreneurship 2.5.4 Essentials for Netpreneurship/Social Media Marketing 2.8.8 Different Social Media Marketing platforms 2.8.6 Rise of OTT platforms in India 2.5.7 Advantages of Netpreneurship 2.8.8 Disadvantages of Netpreneurship 2.8.9 Netpreneurship vs. Entrepreneurship 2.6 Technopreneurship - Concept & Meaning 2.6.1. History of Technopreneurship 2.6.2 Delinitions of Technoprencurship 2.6.3. Characteristics of a Technopreneur 2.6.4 Entrepreneurial Process and the Technopreneurial Process 2.6.5 Technopreneurshipconcepts. Entrepreneurship concept 2.7, Cultural Entrepreneurship 2.7.1. Definitions of Cultural Entrepreneurship 2.7.2 Cultural Entrepreneurship in India 2.7.3. Cultural Entrepreneur 2.7.4 Definitions of Cultural Entrepreneurs 2.1.8 Cultural Entrepreneurship vs. Normal Entrepreneurship 2.8 International Entrepreneurship 2.8.1 Significance of International Entrepreneurship 2.8.2 Challenges/Difficulties of International Entrepreneurship 2.8.3 International Entrepreneurship versus Entrepreneurship 2.9 Ecopreneurship 2.9.1 Definitions of Ecopreneurship Characteristics of an Ecopreneur Reasons for growth of Ecoprencurship Ecopreneurship vs. Entrepreneurship 2.10 Idea Entrepreneur 2.10.1 Characteristics of Idea Entrepreneurs bt PAGE 216 217 2I7 218 2.20 2.20 221 221 2.21 2.22 2.22 2.23 2.23 2.24 2.24 2.25 2.25 2.26 2.26 2.26 227 2.27 2.28 2.29 230 230 230 231 2.32 232 232122 CONTENTS: 2.11 Concept of Transpreneurship 2.12 Opportunistic Entrepreneurship 2.18 Acquisitive Entrepreneurship 2.14 Incubative Entrepreneurship 2.15 Scalable Startup Entrepreneurship 2.16 Greypreneurship NTE ENTREPRENEURIAL SUPPORT SYSTEM 3 ‘SOCIO-ECONOMIC SUPPORT SYSTEM FOR ENTREPRENEURSHIP; PUBLIC AND PRIVATE SYSTEM OF STIMULATION; ROLE OF DEVELOPMENT INSTITUTES, AVAILABILITY OF FINANCE, MARKETING, TECHNOLOGY AND PROJECT RELATED ASSISTANCE; ROLE OF TRADE ASSOCIATIONS AND SELF-HELP GROUPS FOR PROMOTION OF ENTREPRENEURSHIP 3.1 Socio support system for Entrepreneurship 3.2. Public and Private System of Stimulation 3.2.1. The Ministry of Small Scale Industries 3.2.2 Entrepreneurship Development/Training Institutes 3.3. Role of development Institutes/Levels of Institutional Support 3.4 Central Government Institutions 3.4.1 Small Scale Industries Board [SSIB] 3.4.2. National Bank for Agriculture and Rural Development (NABARD) ‘Small Industries Development Organisation (SIDO) National Small Industries Corporation (NSIC) Various Technical Service Centres of NSIC ‘Small Industries Development Bank of India (SIDBI) National Board for Micro, Small and Medium Enterprises (NBMSME) Khadi and Village Industries Commission (KVIC) Mahatma Gandhi Institute for Rural Industrialisation (MGIRD 3.4.10 Coir Board PAGE, 2.33 234 234 234 234 2.35 33 35 36 37 37 38 38 38 39 Bul B12 313 B14 B14 BS BUS ! | : :GeReRRKGS 35 36 37 3.8 ‘CONTENTS 3.4.11 National Institute for Small Industry Extension Training (NISIET) State Government institutions 3.5.1 State Financial Corporation (SFC) 3.5.2. StateSmall Industries Development Corporation (SSIDC) 3.5.3 Technical Consultancy Organisations (TCOs) 3.5.4 Khadi and Village Industries Commission (KVIC) Non-Government Institutions, 3.6.1 Entrepreneurship Development Institute of India (EDI) 3.6.2 Indian Investment Centre (IIC) 3.6.3 Indian Council of Small Industries (ICSI) 3.6.4 Laghu Udyog Bharti (LUB) 3.6.8 India SME Technology Services Ltd. 3.6.6 Credit Guarantee Fund Trust for Micro and Small Industries 3.6.7 Federation of Associations of Small Indus (FASID, 3.6.8 World Association of Small and Medium Enterprises (WASME) 3.6.9 Federation of Indian Chambers of Commerceand Industry (FICCI), 3.6.10 Associated Chambers of Commerce and Industry of India (ASSOCHAM) 3.6.11 Confederation of Indian Industry (CII) District Industries Centres (DIC) & industrial Estates 3.7.1 Various programmes of DIC 3.7.2. Objectives of District Industries Centres (DIC) 3.7.3 Functions of DICs Trade Associations in Entrepreneurship - Meaning & Concepts 3 of India .1 Need for Trade Associations Features of Trade associations Objectives/ Functions of Trade Associations Advantages of Trade Association Entrepreneurship Associations ewww BR SR 1.23 PAGE, B15 316 3.16 37 3.18 B19 3.20 3.20 3.21 3.22 3.23 3.23 3.23 3.24 3.24 3.25 3.25 3.26 3.26 3.26 3.27 3.29 3.29 3.30 3.30 331 331124 CONTENTS, 3.9. Role of Self-Help Groups for promotion of entrepreneurship 3.9.1 Need of Self-Help Group (SHG) 3.9.2 Objectives of SHG 3.9.3 Advantages of SHGs 3.9.4 Disadvantages of Self-Help Groups 4 ‘TYPES OF BUSINESS ENTITIES - MICRO, SMALL AND MEDIUM ENTERPRISES, ROLE OF MSME SECTOR IN INDIAN ECONOMY, FAMILY BUSINESSES IN INDIA; CONFLICTS IN FAMILY BUSINESS; ‘STARTUP ACTION PLAN; MAKE IN INDIA INITIATIVE, 4,41 Introduction - Business Entities 4.2. Business Entity - Meaning, Concept and Nature 4.2.1. Definitions of Business Entity 4,3, Micro Small & Medium Enterprises (MSMEs) 4.3.1 Classification of MSMEs 4.3.2. Benefits available to MSMEs + 43.3. Challenges faced by MSMEs 4.3.4 Opportunities for MSMEs 4.3.3 Procedure to be followed to be classified as a MSME, 4.3.6 Implication of exceeding the limits prescribed for classification MSME 4.3.7 Sectors specifically reserved for MSME, 4.3.8. Measures taken by Government to boost MSMEs 4.4 Concept of Family Business 4.4.1 Advantages of Family Business 4.4.2 Disadvantages of Family Business 4.5 Companies with Family Business, on Forbes’ List of Richest Asian Dynasties 4.6 Role of Family Business in Managing 4.7 Reasons of Conflict in Family Business 4.1.1 Methods to resolve conflicts in Family Business 4.8. Startup Action Plan 4.8.1 Role of the Government 4.8.2. Significant Highlights of Govt. initiatives 4.8.3 Higher Education Alliances 4.8.4 Performance by States PAG 3.33 3.34 3.35 335 3.36 41 42 42 43 44 45 46 474 48 49 49 49° 410 4 412 412 414 45 419 421 421 422 422 423a 2 2 3 4 3 6 4 5 19 2 2 2 2 23 49 Sa 52 53 CONTENTS Make in India Initiative 4.9.1 The Make in India Vision 4.9.2. Objectives of ‘Make in India’ 4.9.3. Mission Statement 4.9.4 Methods to achieve the Goal 4.9.5 Need for ‘Make in India 4.9.6 Priority Sectors in focus 4.9.7 Benefits of Make in India 4.9.8 Criticism/ Disadvantage of Make in India 4.9.9 Scope of ‘Make in India’ 4.9.10 Policies of ‘Make in India’ UNIT IM ENTERPRISE FORMATION PROCESS 5 UNDERSTANDING AND ANALYZING BUSINESS OPPORTUNITIES, « MARKET DEMAND ANALYSIS, PROJECT FEASIBILITY STUDY; PREPARATION OF BUSINESS PLAN Business Opportunities/Ideas 5.1.1 Features of a good Business Opportunity /Idea 8.1.2 Business Opportunity cycle 5.1.3 Techniques of finding New Business Opportunities 5.1.4 Need for good Business Opportunity Market Demand Analysis Market Identification Business Cycle Product Niche Growth Potential Feasibility Study - Meaning & Concept 8.3.1 Types of Feasibility Analysis 5.3.2 Steps involved in Conducting a Feasibility Study 5.3.3 Objectives of Feasibility Analysis 8.3.4 Advantages of Feasibility Analysis, 1.25 PAGE 423 424 4.24 425 425 4.26 4.26 4.26 427 4.27 427 53 54 SA 55 59 SAL SM SAL SA2 5.12 513 SUB SB 518 5.20 521 | | | |1.26 5.4 55 56 57 61 6.2 CONTENTS Designing a Feasibility Report 8.4.1 Importance of FSR 8.4.2 Steps in writing FSR 8.4.3 Contents of a Feasibility Report Business Plan - Meaning & Concept 8.5.1 Logical questions before making a Business Plan 5.5.2. Format of a good Business Plan 3.5.3 Advantages of making a Business Plan. 8.5.4. Essentials ingredients for Business Plan for e-business Start-ups and basic Start-up Problems 5.6.1 Methods to solve Start-up Problems Sources of Financing Business Start-ups 5.7.1 Personal investment 5.7.2 Love money 5.7.3 Venture Capital 5.7.4 Business Incubators 5.7.5 Angel Investors 5.7.6 Government grants and subsidies 5.7.7 Bank loans 5.7.8 Financial support by Ministries/Departments/ Organizations 5.7.9 Government schemes for Women Entrepreneurs 5.7.10 Bank schemes for women entrepreneurs ie ‘CASES OF INDIAN START-UPS ‘Women entrepreneurs in India 6.1.1 Kiran Mazumdar Shaw 6.1.2 Ekta Kapoor 6.1.3 Aishwarya Nair 6.1.4 Dr. Swati Piramal 6.1.5. Srijayapriya Balasundaram, Srinidhi Sridharan, Aparrna Sivasubramanian and Akshaya Sivaraman - Friends who turned business partners Dalit entrepreneurs in India PAGE, 5.21 5.22 5.22 5.23 5.24 5.25 5.26 5.34 534 535 537 5.39 539 5.39 539 5.43 5.48 549) 5.50 5.53 554 5.54 61 62 63 64 64 65 67RBNNASE USCS SSCSCCNVHRAETE oe 63 64 65 66 TA 12 CONTENTS 6.2.1 Kalpana Saroj 6.2.2 Harsh Bhasker - Kota Tutorials 6.2.3 Balu 6.2.4 Rajesh Saraiya Case Studies in the Start-up Domain 6.3.1. The Charterpreneurs 6.3.2 Naiyya Saggi, CEO & Founder, Baby Chakra 6.3.3 Deep Kalra 6.3.4 Dorai Thodla 6.3.8 Kishore Biyani 6.3.6 Mahesh Murthy 6.3.7 Naveen Tewari 6.3.8 Phanindra Sama 6.3.9 Sachin and Binny Bansal 6.3.10 Sanjeev Bikhchandani Common Beliefs, Values & Philosophies of Start-ups & Entre preneurs Values generally followed by ethical business Entrepreneur Business Philosophies, adopted by famous and successful Entrepreneurs UNITIV MANAGERIAL ASPECTS OF BUSINESS Z MANAGING FINANCE - PREPARATION OF OPERATING/COST BUDGET, CASH BUDGET; UNDERSTANDING MANAGEMENT OF ‘SHORT TERM AND LONG TERM CAPITAL Managing Finance 7.1.1 Objectives of Managing Finance for the entrepreneur Operating/Cost Budget 7.2.1 Factors influencing preparation of Operating Budget 7.2.2 Steps in Preparing an Operating Budget 7.2.3. Significance of Operating Budget 7.2.4 Disadvantages of Operating Budget 7.2.5 Types of Operating Budgets 7.2.6 Elements of Operating Budget 7.2.1 Types of Cost considered in Operating Budgets 127 PAGE, 67 68 69 69 6.10 610 Ott 6 6.12 6.12 6.12 6.12 613 613 6.13 6.13 614 Old 73 73 74 75 75 76 27 27 79 7101.28 13 14 18 al 82 CONTENTS: Cash budget 1 Features of Cash Budget Description of Cash receipts & Cash expenses Parts of Cash Budget Objectives of Cash Budget Significance of Cash Budget Drawback of the cash budget .3.7 Cash Budget vs, Operating Budget Short Term Capital 7.4.1 Factors determining Working Capital needs 7.4.2. Sources of Short-Term Capital 7.4.3 Modes of Improving Working Capital 74.4 Need and Importance of Working Capital Long Term capital Sources of Long-Term Finance Measures to improve Long-Term Finance availability by Government 7.5.3 Significance of Long-Term Finance 7.5.4 Disadvantages of Long-Term Financing & HUMAN RESOURCE PLANNING: CONTRACT MANAGEMENT, UNDERSTANDING MARKETING METHODS; UNDERSTANDING OF GST AND OTHER TAX COMPLIANCES Human Resource Planning 8.1.1 Significance of Human Resource 8.1.2 Human Resource Planning by Entrepreneur 8.1.3 Steps in Human Resource Planning 8.1.4 Importance of Human Resource planning for entre- preneur 8.1.5 Objectives of Human Resource Planning 8.1.6 Characteristics of HR Planning for the entrepreneur 8.1.7 Significance of HR Planning 8.1.8 Factors affecting HR Planning 8.1.9 Quantitative aspect of Human Resource Planning Contract Management 8.2.1 Basic Requirements for a Contract 8.2.2 General Principles for Entering into Contracts RaSEE PAGE, 710 710 7H 7I2- 713 713 74 715 71S 7S 716 718 719 7.20 7.20 7.26 227 227 85 86 87 87 88 88 84 815 B16 :\Ge 7410 210 uw U2 1B UB ud 15 15 us 6 8 “19 "20 "20 126 27 127 85 8.2.3 4 5 6 CONTENTS, Stages of Contract Management Benefits of Contract Management Challenges of Contract Management Prerequisites for effective Contract Management 8.3 Marketing Methods 8.3.1 83.2 8.3.3, 8.3.4 8.3.5 8.3.6 8.3.7 83.8 84 GST 8.4.1 84.2 84.3 8.4.4 84.5 84.6 84.7 84.8 849, 8.4.10 Types of Markets available to an Entrepreneur Marketing for Entrepreneurs Four Ps plus 3Ps[7Ps] of Marketing for the Entrepren Description of 7Ps of Marketing Nick Jordan’s Four Ps of Entrepreneurship Strategies for successful Marketing by Entrepreneurs Types of Marketing available to Entrepreneur ‘Stepsin Marketing of the Product by a New Entrepreneur GST Definition and Significant Terms used in GST Other Terminologies in GST Responsibility for maintaining Accounts and Other Records Type of Records to be maintained under GST Type of Accounts to be maintained under GST Features of GST Electronic Cash and Credit Ledger Consequences of Not Maintaining Proper Records Meaning of Input Tax Credit (ITC) Method of Registration for GST number 8.5 Other Tax Compliances 851 Types of Taxes UNIT V MANAGING GROWTH Q BUSINESS GROWTH STRATEGIES SPECIFIC TO SMALL ENTERPRISES; ENTERPRISE LIFE CYCLE AND VARIOUS GROWTH STRATEGIES; BUSINESS COLLABORATION AND OUTSOURCING OF RESOURC ETWORK MANAGEMENT; SUCCESSION PLANNING FOR SUSTENANCE, 9.1 Business growth strategies specific to Small Enterprises OL Market Penetration Strategy 129 PAGE, 8l7 819 8.20 8.20 8.2L 8.22 8.22 823 8.25 8.27 8.28 8.29 830 830 832 833 835 836 8.36 836 8.40 840 840 841 844 844 o4 94130 9.2 93 94 98 9.6 92 98 914 91S 9.1.6 OAT 9.1.8 ‘CONTENTS Product Expansion Strategy Growth through Diversification Market Expansion or Development Acquisition of & Merger with Other Companies Use of Alternative Channels Market Segmentation Leveraging Partnerships Enterprise life cycle and various growth strategies 924 9.2.2 9.2.8 9.24 9.2.5 Introduction Stage Growth Stage Expansion Stage Maturity Stage Decline Stage Business Collaboration 9.3.1 9.3.2 9.3.3 9.3.4 9.3.5 9.3.6 Dimensions of Collaboration Advantages of Collaboration Disadvantages of Collaboration ‘Types of Collaboration Methods to identify need for Collaboration Collaborative Competitiveness Outsourcing of Resources 941 9.8.2 9.4.3 9.44 988 Definitions/ Meaning of the term Outsourcing Benefits of Outsourcing Criticism of Outsourcing Basic types of Outsourcing Other types of Outsourcing Network Management 951 Components of Network Management ‘Succession Planning for Sustenance 9.6.1 9.6.2 9.6.3 Factors that necessitate Succession Planning. Career Planning vs. Succession Planning Other types of Succession Planning PAGE 95 96 96 97 98 98 99 9.10 nt 9.12 93 914 9.16 947 9.19 9.19 9.20 921 924 9.24 9.25 926 9.26 9.28 9.28 934 9.40 941 9.42 943 9.44 945a OS ee ” INTRODUCTION 12__ | Entrepreneurship-Meaningandimportance,entrepreneurshipin 13. | Indian context, entrepreneurship asa creative solution provider, i {and meaning of various terms related to entrepreneurship- j5 | intrapreneurship, social entrepreneurship, net entrepreneur- 17 | ship, technopreneurship ° | ENTREPRENEURSHIP APJ Abdul Kalam: To succeed in your Mission, you must have single minded devotion to your Goal. a2 143 |) vaa_| Entrepreneurship also requires a single minded devotion LASENTREPRENEURSHIP - MEANING AND IMPORTANCE, ENTREPRENEURSHIP IN INDIAN CONTEXT, ENTREPRENEURSHIP AS A CREATIVE SOLUTION PROWIDER ‘Alter going through this chapter you will be well acquainted with © The meaning of the concept ‘Entrepreneurship’ @ The concept & significance through different definitions of Entrepreneurship ‘® History of entrepreneurship © The various Characteristics/ Qualities of an Entrepreneur @ The process of entrepreneurship 13 eee TAKMANR® —14 UNIT I; INTRODUCTION * Different Social Media Marketing platforms * The meaning of creative & Innovative behaviour + The various dimensions of Entrepreneurship 1.1 UNDERSTANDING THE MEANING AN ENTREPRENEUR Before the concept of entrepreneurship is explored, it is important to, first, understand the meaning of ‘entrepreneur’ & also know who can be aan entrepreneur. An entrepreneur is someone who exercises initiative by organizing a venture to take benefit of an opportunity and, as the de sion maker, decides what, how, and how much of a good or service will be produced. An entrepreneur supplies risk capital as a risk taker, and monitors and controls the business activities, The entrepreneur is usually a sole proprietor, a partner, or the one who owns the majority of shares in an incorporated venture, If one desires to be an entrepreneur, the given equation is what describes what an entrepreneur actually is Entrepreneur + Capital = Products + Customers = Business. 1.1.1 Det Let usnow consider some definitions to understand who an entrepreneur! (i) According to Oxford Dictionary an entrepreneur is - “A person who sets up a business or businesses, taking on financial risks in the hope of profit” (i) According to the International Encyclopaedia, an entrepreneur is - “An individual who bears the risk of operating a business in the face of uncertainty about the future conditions’. (iii) Schumpeter’s Definition - The entrepreneur, in an advanced economy is an individual who introduces something new in the economy: a method of production not yet tested by experience in the branch of manufacturing, a product with which consumers arenot yet familiar, @ new source of raw material or of new markets and the like” (iv) Adam Smith’s definition - The entrepreneur is an individual, who forms an organization for commercial purpose. She/heis proprietary capitalist, a supplier of capital and at the same time a manager who intervenes between thelabourand the consumer. “Entrepreneur is an employer, master, merchant but explicitly considered as a capitalist” itions — ——— TAXMANN®CH. |: ENTREPRENEURSHIP - MEANING AND IMPORTANCE, 15 (») Peter F. Drucker’s Views on Entrepreneur - “An entrepreneur is the one who always searches for change, responds to it and exploits it a5 an opportunity, Innovation is the specific tool of entrepreneut the means by which they exploit changes as an opportunity for a different business or different service” (vi) Richard Cantillon’s definition - "A person who pays certain price for a product to resell it at an uncertain price thereby making decision about obtaining and using resources while assuming the risk of en terpr (vii) According to W.B. Gartnerin the year 1985 - Entrepreneurisa person who started a new business where there was none befo John Mackey Co-CEO of Whole Foods, Healthy food has always been his pas-| sion. He is a great entrepreneur who showed a new & better way to do business by building his company in a unique way. He wrote a book titled ’ Conscious Capitalism” His passion became business and did it with pleasur 1.1.2 History of the term ‘Entrepreneur’ ‘The term entrepreneur is a French word, and is derived from the French word “enterprendre. It means “to undertake”. It is commonly used to de- scribe an individual who organizes and operates a business or businesses, taking on financial risk to do so. Around 1700 A.D. the term was used for architects and contractor of public works. In many countries, the term entrepreneur is often associated with a person who starts His/her own new business. The term was first defined by the Irish-French economist Richard Cantillon [given above] and the term first appeared in the French Dictionary “Dictionnaire Universel de Commerce” of Jacques des Bruslons published in 1723. ‘To sum up meaning of an entrepreneur An entrepreneur is a person who develops a new idea and takes the risk of setting up an enterprise to produce a product or service which satisfies customer needs. All entrepreneurs are business persons, but all business persons are not entrepreneurs. 1.1.3 Characteristics/Qual In the 20th century the theorist Arthur H.. Cole defined an entrepreneur as an ‘organization builder’. It can be viewed as a quality or a trait of an entrepreneur. Entrepreneurs have many of the same character traits as s of an Entrepreneur |