Pasia, Niña Criselle B.

Technopreneurship

BSCE – 3A

MODULE 3

Post Test

1. What are the various ways of classifying entrepreneurs? 

Classifying entrepreneurs into various categories is a tricky issue. The

taxonomy of entrepreneurs can be carried out in various ways. Entrepreneurs
can be classified on various basis. Clarence Denhof Classifies entrepreneurs on
the basis of stage of economic development: some others have classified on the
basis of their functions and characteristics. In the initial stages of economic
development, entrepreneurs tend to have less initiative and drive. As
development proceeds, they become more innovating and enthusiastic. The
various types of entrepreneurs are classified on certain parameters. Some
important classifications are:

I. On the Basis of Economic Development:

Clarence Danhof classified entrepreneurs into four groups on the basis of

economic development.

a. Innovating Entrepreneurs:

This type of entrepreneurship is characterized by aggressive

assemblage of information and the analysis of results deriving from novel
combination of factors of production. Entrepreneurs falling in this class are
generally aggressive in experimentation and exhibited shrewdness in putting
attractive possibilities into practice. They are the entrepreneurs who have
creative and innovative ideas of starting a new business. An innovating
entrepreneur sees the opportunity for introducing a new technique or a new
product or a new market. He may raise money to launch an enterprise,
assemble the various factors, and choose top executives and the set the
 organization going. Schumpeter’s entrepreneur was of this type. Innovative
entrepreneurs thus, results in the creation of something new. They are the
contributors to the economic development of a country. Innovating
entrepreneurs are very commonly frond in undeveloped countries. There is
dearth of such entrepreneurs in developed countries. Innovating entrepreneurs
played the key role in the rise of modern capitalism, through their enterprising
sprit, hope of moneymaking, ability to recognize and exploit opportunities, etc.

b. Adoptive or Imitative Entrepreneur:

There is a second group of entrepreneurs generally referred as imitative

entrepreneurs. The imitative entrepreneurs copy or adopt suitable innovations
made by the innovative entrepreneurs. They do not innovate the changes
himself. They only imitate technology innovated by others. Such entrepreneurs
are particularly important in developing courtiers because they contribute
significantly to the development of such economies. Imitative entrepreneurs are
most suitable for the developing regions because in such countries people prefer
to imitate the technology, knowledge and skill already available in more
advanced countries. In highly backward countries there is shortage of imitative
entrepreneurs also. People who can imitate the technologies and products to the
particular conditions prevailing in these countries are needed. Sometimes, there
is a need to adjust and adopt the new technologies to their special conditions.
Imitative entrepreneurs help to transform the system with the limited resources
available. However; these entrepreneurs face lesser risks and uncertainty then
innovative entrepreneurs. While innovative entrepreneurs are creative, imitative
entrepreneurs are adoptive.

c. Fabian Entrepreneur:

The third type is Fabian entrepreneur. By nature, these entrepreneurs are

shy and lazy. This type of entrepreneurs has neither will to introduce new
changes nor desire to adopt new methods of production innovated by the most
entrepreneurs. They follow the set procedures, customs, traditions and religions.
They are not much interested in taking risk and they try to follow the footsteps of
 their predecessors. Usually they are second generation entrepreneur in a
business family enterprise.

d. Drone Entrepreneur:
The fourth type is Drone entrepreneurs who refuse to copy or use
opportunities that come on their way. They are conventional in their approach
and stick to their set practices products, production methods and ideas. They
struggle to survive not to grow. They may be termed as Laggards. In such cases
the organization loses market, their operations become uneconomical and they
may be pushed out of the market.

II. On the Basis of Type of Business:

Under this category we can classify entrepreneurs as described below:

a. Business Entrepreneurs:

They are the entrepreneurs who conceive an idea for a new product or
service and then create a business to materialize their idea into reality. They
tap the entire factor of production to develop a new business opportunity. They
may set up a big enterprise or a small-scale business. When they establish
small business units they are called small business entrepreneurs. In a
majority of cases, entrepreneurs are found in small trading and manufacturing
business.

b. Trading Entrepreneur:

There entrepreneurs undertake trading activities and are not concerned

with the manufacturing work. They identify potentiality of their product in
markets, stimulates demand for their product line among buyers. They may go
for both domestic and overseas trade. These entrepreneurs demonstrated
their ability in pushing many ideas ahead which promoted their business.

c. Industrial Entrepreneur:

Industrial entrepreneur is essentially a manufacturer who identifies the

needs of customers and creates products or services to serve them. He is
 product-oriented who starts through an industrial unit to create a product like
electronic industry, textile unit, machine tools.

d. Corporate Entrepreneur:

These entrepreneurs used his innovative skill in organizing and

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

e. Agricultural Entrepreneur:

Agricultural entrepreneurs are those who undertake agricultural

activities as through mechanization, irrigation and application of technologies
to produce the crop. They cover a broad spectrum of the agricultural sector
and include agriculture and allied occupations.

III. According to the Use of Technology:

The application of new technology in various sectors of the national

economy is essential for the future growth of business. We may broadly
classify these entrepreneurs on the basis of the use of technology as follows:

a. Technical Entrepreneurs:

With the decline of joint family business and the rise of scientific and
technical institutions, technically qualified persons have entered the field of
business. These entrepreneurs may enter business to commercially exploit
their inventions and discoveries. Their main asset is technical expertise. They
raise the necessary capital and employ experts in financial, legal- marketing
and other areas of business. Their success depends upon how they start
production and on the acceptance of their products in the market.

b. Non-technical Entrepreneur:
 Non-technical entrepreneurs are those who are not concerned with the
technical aspects of the product or service in which they deal. They are
concerned only with developing alternative marketing and promotional
strategies for their product or service.

c. Professional Entrepreneur:
Professional entrepreneur is an entrepreneur who is interested in
establishing a business but does not have interest in managing it after
establishment. A professional entrepreneur sells out the existing business on
good returns and starts another business with a new idea. Such an
entrepreneur is dynamic and conceives new ideas to develop alternative
projects.
IV. According to Motivation:
Motivation is the main force that promotes the efforts of the
entrepreneur to achieve his goals. An entrepreneur is motivated to achieve
or prove his excellence in their performance. According to motivation we can
classify entrepreneur as:

a. Pure Entrepreneur:

A pure entrepreneur is the one who is motivated by psychological

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

b. Induced Entrepreneur:

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

entrepreneurial task due to the policy reforms of the government that aids,
incentives, concessions and other facilities to start a venture. Most of the
small-scale entrepreneurs belong to this category and enter business due to
financial, technical and several other facilities provided to them by the various
agency of Govt. to promote entrepreneurship. Today, import restrictions and
allocation of production quotas to small units have induced many people to
start a small-scale unit.
c. Motivated Entrepreneur:

New entrepreneurs are motivated by the desire for self-fulfillment. They

come into being because of the possibility of making and marketing some new
products for the use of consumers. They are motivated through reward like
profit.

V. According to Growth:

The industrial units are identified as high growth, medium growth and
low growth industries and as such we have ‘Growth Entrepreneur’ and
‘Super Growth Entrepreneur.’

a. Growth Entrepreneur:

He necessarily takes up a high growth industry and chooses an

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

b. Super-Growth Entrepreneur:

This category of entrepreneurs is those who have shown enormous

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

VI. According to Entrepreneurial Activity:

Based on entrepreneurial activity, entrepreneurs are classified as

novice, serial, and portfolio entrepreneur.

a. Novice Entrepreneur:

A novice is someone who has started his/her first entrepreneurial

venture. A novice entrepreneur is an individual who has no prior business
ownership experience as a business founder, inheritor of a business, or a
purchaser of a business. It is not similar to early starter; a novice can also be
a 50-year-old with over 25 years of experience in the industry.

b. A Serial Entrepreneur:
 A Serial Entrepreneur is someone who is devoted to one venture at a
time but ultimately starts many It is the process of starting that excites the
starter. Once the business is established, the serial entrepreneur may lose
interest and think of selling and moving on.

c. Portfolio Entrepreneur:
A portfolio entrepreneur is an individual who retains an original
business and builds a portfolio of additional businesses through inheriting,
establishing, or purchasing them. A portfolio entrepreneur starts and runs a
number of businesses. It may be a strategy of spreading risk or it may be that
the entrepreneur is simultaneously excited by a variety of opportunities. Also,
the entrepreneur may see some synergies between the ventures.

VII. Other Entrepreneur:

a. First-Generation Entrepreneurs:

This category consists of those entrepreneurs whose parents or family

had not been into business and was into salaried service. The booming
economy of India has led to a multitude of business opportunities, and with
deregulation, it has become easier to set up businesses. Also, with a change
in the mindset of the middle class, it is now more acceptable to become an
entrepreneur. A first-generation entrepreneur is one who starts an industrial
unit by means of an innovative skill. He is essentially an innovator, combining
different technologies to produce a marketable product or service.

b. Modern Entrepreneur:

A modern entrepreneur is one who undertakes those businesses which

go well along with the changing scenario in the market and suits the current
marketing needs.

c. Women Entrepreneurs:

Women as entrepreneurs have been a recent phenomenon in India.

The social norms in India had made it difficult for women to have a
 professional life. Now this has changed. Progressive laws and other incentives
have also boosted the presence of women in entrepreneurial activity in diverse
fields. In 1988, for the first time, the definition of Women Entrepreneurs’
enterprise was evolved that termed an SSI unit/industry-related service or
business enterprise, managed by one or more women entrepreneurs in
proprietary concerns, or in which she/they individually or jointly have a share
capital of not less than 51 per cent as partners / shareholders / directors of a
private limited company / members of a cooperative society, as a Woman
Enterprise.

d. Nascent Entrepreneur:

A nascent entrepreneur is an individual who is in the process of starting

a new business.

e. Habitual Entrepreneur:

A habitual entrepreneur is an individual who has prior business

ownership experience. The nascent entrepreneur can either be a novice or a
habitual entrepreneur.

f. Lifestyle Entrepreneurs:

Lifestyle entrepreneurs have developed an enterprise that fits their

individual circumstances and style of life. Their basic intention is to ear an
income for themselves and their families.

g. Copreneurs:

It is related to the married couples working together in a business.

When a married couple share ownership, commitment and responsibility for a’
business, they are called “copreneurs”. As copreneurs, couples struggle in
ventures to establish equality in. their relationships. Such couples represent
the dynamic interaction of the systems of love and work.

h. IT Entrepreneurs:
 IT entrepreneurs are creating a new business platform that takes them
straight to the top. They are confident, ambitious innovative and acquired
creativity in the competitive global environment and created a niche of their
self. They are the brave new bunch of entrepreneurs who are raring to take on
the world of information technology.

i. Social Entrepreneur:

Social entrepreneur is one who recognizes the part of society which is

stuck and provides new ways to get it unstuck. Be it dedicated efforts for child
upliftment, fighting for the conservation of Assam’s rainforests, working for the
betterment of the blind or initiatives to empower women, the entrepreneur’s
passion is very strong. Freedom, wealth, exposure, social mobility and greater
individual confidence are driving this huge wave of social innovation and
entrepreneurship. After all are tired with the Inefficiency of governments and
the indifference of corporate, and want to make a change and this is the case
everywhere.

j. Forced Entrepreneurs:

The money-lenders of yesterday, who are thrown out of their family

business because of government legislation, the neo-rich Indians returning
from abroad and the educated unemployed seeking self-employment form this
class of entrepreneurs.

k. Individual and Institutional Entrepreneurs:

In the small-scale sector individual entrepreneurs are dominant. Small

enterprises outnumber the large ones in every country. Such entrepreneurs
have the advantage of flexibility, quick decision making. But a single individual
can establish, operate and control an organization up to a limit. Thereafter, it
becomes necessary to institutionalize entrepreneurship. The business will
have to acquire a number of new entrepreneurial skills through a corporate
 body. A group of entrepreneurs has to be developed to handle the increasingly
complex network of decision making. The central function of the entrepreneur
remains the same but the basic decisions like the line of business, the amount
of capital employed, etc. are taken collectively by the promoters at the helm of
affairs. Thus, individual entrepreneur and institutional entrepreneur coexist and
support each other. Corporate sector the symbol of institutionalized
entrepreneurship

2. Distinguish between a portfolio entrepreneur and a social entrepreneur.

A portfolio entrepreneur is an individual who retains an original business

and builds a portfolio of additional businesses through inheriting, establishing, or
purchasing them. A portfolio entrepreneur starts and runs a number of
businesses. It may be a strategy of spreading risk or it may be that the
entrepreneur is simultaneously excited by a variety of opportunities. Also, the
entrepreneur may see some synergies between the ventures.

Social entrepreneur is one who recognizes the part of society which is

stuck and provides new ways to get it unstuck. Be it dedicated efforts for child
upliftment, fighting for the conservation of Assam’s rainforests, working for the
betterment of the blind or initiatives to empower women, the entrepreneur’s
passion is very strong. Freedom, wealth, exposure, social mobility and greater
individual confidence are driving this huge wave of social innovation and
entrepreneurship.

3. Outline the causes of entrepreneurial failure in detail. 

Getting success in entrepreneurial venture is not the result of a single

person’s efforts. There is always a team involved in it. The team is made up of
other group of people like investors, working partners, employees, vendors,
creditors, customers and clients. All play an important part in the success or
failure of the enterprise. Although other people are involved, but there is a
tendency to believe that they play less important roles and at the end of the day,
 success or failure of the enterprise will be largely depend on the entrepreneur’s
vision, skill, achievement level.

Many entrepreneurs fail due to several barriers and problems. Karl H.

Vasper has identified following reasons:

 Lack of a viable concept. 

 Lack of market knowledge 
 Lack of technical skills. 
 Lack of seed capital. 
 Lack of business know-how. 
 Competency-lack of motivation. 
 Social stigma. 
 Legal constraints and regulations. 
 Monopoly and protectionism. 
 Inhibitions due to patents

Because of limited productive resources, high levels of uncertainty and

risk, in experienced management personnel, employees, new ventures suffer
fear mortality much higher than the, well established firms.

4. Who is an entrepreneur? Explain the various types of entrepreneurs. 

An entrepreneur performs many activities from time to time and also

simultaneously depending on a complex and combinations of economic, socio-
political and other factors in an enterprise. The entrepreneur of the world is the
wisest minds who leave an indelible mark in the history of mankind. They make it
possible through their action, and not through words. They do things in a
completely new way. They think beyond the obvious. They go deeper. They think
from different perspectives and angles. There are different types of
entrepreneurs. A nascent entrepreneur is an individual who is in the process of
starting a new business. A novice entrepreneur is an individual who has no prior
business ownership experience. A habitual entrepreneur is an individual who has
prior business ownership experience. A serial entrepreneur is an individual who
has sold or closed an original business, established another business, sold or
 closed that business, established another business, sold or closed that business,
and continues this cycle of entrepreneurial behavior. A portfolio entrepreneur is
an individual who retains an original business and builds a portfolio of additional
businesses. The entrepreneur is a key in entrepreneurship. His personality is a
composite of innovator, risk taker, motivator, planner, a creative problem solver
and who makes things happen. Entrepreneurs are made and not born. He is
made by his family, environment and education. Because of limited resources,
high levels of uncertainty and inexperienced management and employees and
many other such reasons, new ventures suffer from a very high rate of failure –
much higher than that of larger, well-established firms. One should remain
optimistic that entrepreneurship in India will develop to promote India’s economic
development on a sound basis, as an integral part of the world economy. The
burst of creativity and innovation in emerging technological industries holds
tremendous promise for economic development and technological business
growth. When talent is linked with technology, people recognize and then push
viable ideas and the entrepreneurial process is under way.

5. “An entrepreneur is a catalytic agent in economic development.” Explain

the role and significance of an entrepreneur in developing economy with
reference to above statement. 

An entrepreneur can be regarded as a person, who has the initiative skill

and motivation to set up a business or enterprise of his own and who always looks
for high achievements. He is the catalyst for social change and works for the
common good. They look for opportunities, identify them and seize them mainly for
economic gains. An action oriented entrepreneur is a highly calculative individual
who is always willing to undertake risks in order to achieve their goals.

Entrepreneurship is one of the most important inputs in the economic

development of a country. The entrepreneur acts as a trigger head to give spark to
economic activities by his entrepreneurial decisions. Entrepreneurs help in
promoting a country's export-trade, which is an important ingredient of economic
development. They produce goods and services in large scale for the purpose
 earning huge amount of foreign exchange from export in order to combat the
import dues requirement. Hence import substitution and export promotion ensure
economic independence and development.

6. “The entrepreneur is more than a manager. He is an innovator and

promoter as well”. Explain this statement and describe the various types of
entrepreneur. 

An entrepreneur is an individual who creates a new business, bearing

most of the risks and enjoying most of the rewards. The entrepreneur is
commonly seen as an innovator, a source of new ideas, goods, services, and
business. Entrepreneurs play a key role in any economy, using the skills and
initiative necessary to anticipate needs and bring good new ideas to market.
Entrepreneurs who prove to be successful in taking on the risks of a startup are
rewarded with profits, fame, and continued growth opportunities

7. Entrepreneur is a ‘Captain of Industry’ and ‘Economic Leader’ of the

society. Elucidate. 

Entrepreneur is the captain of an industry was used by the Scottish philosopher

Thomas Carlyle in his book Past and Present.

 A captain of industry was a business leader in the late 19th century whose means to
acquire personal fortune in some way contributed positively to the nation. This could
have been the result of increased productivity, market expansion, more jobs or
philanthropy.
 Industry captains are kind-hearted entrepreneurs who make use of their resources to
produce the best goods in society. He was a business leader whose means to
accumulate personal fortune in some way made a positive contribution to the
country. This could have been due to increased efficiency, business growth, more
jobs or philanthropic actions.

8. How does an entrepreneur contribute to the economy and the society?

 Entrepreneurs boost economic growth by introducing innovative
technologies, products, and services. Increased competition from entrepreneurs
challenges existing firms to become more competitive. Entrepreneurs provide
new job opportunities in the short and long term.

Entrepreneur’s contribution to the economy is of immense value. He or

she is indispensable to the economic growth of the country. His or her products
are valuable to the overall development of the society. People need their
products. They simply cannot do without them. Ours is a consumer society now.
Even in the developing countries consumerism is gaining ground. Developed
countries anyway thrive on consumerism. Naturally, the role of an entrepreneur is
of much significance in generating products valuable for the com forts and
luxurious living of the people of a particular country. An economy is much
dependent upon the performance level of its entrepreneur. He or she plays a vital
role in the growth of the national income as well as raising the per capita income
of the people.

9. Who is Entrepreneur? What are his functions? 

An entrepreneur performs many useful functions. He undertakes a

venture, assumes risk and earns profit. He is the man having a strong motivation
to achieve success. He is self-confident in his entrepreneurial abilities. He
exploits opportunities wherever and whenever they arise. As you can tell from the
above descriptions, being an entrepreneur is an exciting proposition!
Entrepreneurs do a variety of things and deal with a multitude of challenges. In
fact, we can say that entrepreneurial behavior is complex, intentional, and
passionate.

10. Narrate the role and significance of an entrepreneur in an economy. 

Entrepreneurs play an important role in accelerating the rate of economic

development of developed and under-developed countries. They exploit the
country’s resources (land, labor, capital and technology) and optimize their
utilization to result in development of that country.
11. What are the functions performed by entrepreneurs? Explain the
characteristics of successful entrepreneur.

Entrepreneurs perform the following functions:

a. Innovation: 
A very important function performed by entrepreneur is that of innovation.
They analyze the existing state of company’s affairs and try to reach a new level
of equilibrium by trying new and productive combinations of existing resources.
They think of creative ideas and use their managerial and innovative skills to put
those ideas into reality. They combine the productive factors, bring them together
and help in the economic development of a nation.

According to Schumpeter, innovation can occur in the following forms: 

 Introduction of new goods; 

 The use of new method of production; 
 The opening of a new market; 
 The conquest of a new source of supply of raw materials; and 
 The reorganization of any industry.
According to Robert Wilken entrepreneurs contribute change that can be
categorized into five types:

1. Initial Expansion: the original production of goods. 

2. Subsequent Expansion: the subsequent change in the amount of goods
produced. 
3. Factor Innovation: the increase in supply or productivity of the factors of
production. 
4. Production Innovations: changes in the production process
5. Market Innovation: changes in the size or composition of the market.
b. Assumption of Risk:
An idea that is put to reality does not guarantee success. Entrepreneurs
assume the risk of success or failure of the enterprise that they wish to launch.
Such risks are not insurable. If they materialize, the entrepreneur has to bear the
 loss himself. Thus, risk-bearing or uncertainty-bearing still remains the most
important function of an entrepreneur which he tries to reduce by his initiative,
skill and good judgement.
c. Idea Generation:
Entrepreneurs do not immediately think of ideas and put them into
practice. Ideas can be generated through environmental scanning and market
survey. It is the function of the entrepreneurs to generate as many ideas as he
can for the purpose of selecting the best business opportunities which can
subsequently be taken up by him as a commercially - viable business venture.
They think of a variety of ideas, apply quantitative techniques to test their
applicability, supplement them with empirical findings, arrive at the best
alternative and apply it in practice. The selection of an idea, thus, involves the
application of research methodology by the entrepreneurs, vision, insight,
observation, experience, education, training and exposure of the entrepreneur.
Idea generation precisely implies product selection and project identification.
d. Organizing and Management:
An entrepreneur brings together various resources of production,
organizes them properly and converts them into a productive unit. As regards the
proposed projects, an entrepreneur manages the following activities:
 Scanning of the business environment (SWOT Analysis) 
 Measuring the suitability of business idea. 
 Market Research and Selection of Product Line: The next important function of
the entrepreneur is market research and product market research is the
systematic collection of data regarding the product which the entrepreneur
wants to manufacture. Entrepreneur has to undertake market research
persistently in order to know the details of the intending product, i.e., the
demand for the product, selection of product line, the price of the substitute
product, the size of the customer, etc. while starting an enterprise. 
 Studying the government rules, regulation and policies. 
 Performing government formalities. 
 Determination of Objectives: The next function of the entrepreneur is to
determine and lay down the mission, vision, objectives and goals of the
business, which should be spelt out on clear terms. In other words,
entrepreneur should be very much clear about future prospect of the venture. 
 Determination of Form of the Venture: The function of an entrepreneur in
determining the form of enterprise is also important. Entrepreneur has to
decide the form of enterprise based upon the nature of the product, volume of
investment, nature of activities, types of product, quality of product, quality of
human resources, etc. The major forms of ownership organizations are sole
proprietorship, partnership, joint stock company and cooperative society.
 Managing of Funds: Fund raising is the most important function of an
entrepreneur. All the activities of a business depend upon the finance and its
proper management. It is the responsibility of the entrepreneur to raise funds
internally as well as externally.
 Selection of Location:
 Procurement of Raw Material Entrepreneur has to identify the cheap and
regular sources of supply of raw materials, which will help him to reduce the
cost of production and face the competition.
 Procurement of Machinery: The next function of the entrepreneurs is to
procure the machineries and equipment for establishment of the venture.
While procuring the machineries, he should specify the following details: (a)
The details of technology (b) Installed capacity of the machines (c) After sales
service facilities.
 Recruitment Selection and Placement of Manpower: Entrepreneur has to
perform the following activities while undertaking this function: (a) Estimating
manpower need of the organization (b) Laying down of selection procedure (c)
Placing the employee
Another important function of entrepreneur is ‘financial planning’, which
translates all other activities into monetary terms. Though an entrepreneur is more
than a manager, he combines in him some managerial functions. He deals with
day-to-day affairs of a going concern by directing and controlling the employees.
e. Decision Making:
Arther H. Cole has described the entrepreneur as a ‘decision maker’. He
takes various decisions regarding following matters:
  The determination of these objectives of the enterprise and the change of those
objectives as conditions required or made advantageous; 
  The development of an organization, including efficient relations with
subordinates and all employees; 
 Securing adequate financial resources, and maintaining good relations with the
existing and potential investors; 
 The requisition of efficient technological equipment and the revision of it as new
machinery appeared; 
 The development of a market for the products and the devising of new products
to meet or anticipate consumer’s demand: and 
 The maintenance of good relations with public authorities and with the society at
large.
f. Leading:
As an entrepreneurial venture flourish, an entrepreneur takes on a new
role of a leader. He acts as a visionary leader. The entrepreneur’s leading
function is drawing the best out of his human resources. He must create
teamwork, motivation among employees. As a leader, entrepreneurs must shift
from the command-and-control style of managing to a coach-and-collaboration
style.
g. Managing Growth:
The entrepreneur must manage the enterprise’s growth. It includes such
activities as developing and designing appropriate growth strategies, dealing with
crises, exploring various ways for financing growth and placing a value on the
venture. 
h. Support to Social Environment:
Social environment is characterized by social customs, culture, values and
beliefs. Changes are not easily acceptable in a given socio-economic
environment of a country. Entrepreneurs discover new sources of materials, new
 markets, and new opportunities and establish new and more lucrative forms of
organizations. This reflects their will power, enthusiasm and energy and helps in
overcoming the society’s resistance to change. 
i. Economic Development:
Entrepreneurs play an important role in accelerating the rate of economic
development of developed and under-developed countries. They exploit the
country’s resources (land, labor, capital and technology) and optimize their
utilization to result in development of that country.
An entrepreneur performs many useful functions. He undertakes a
venture, assumes risk and earns profit. He is the man having a strong motivation
to achieve success. He is self-confident in his entrepreneurial abilities. He
exploits opportunities wherever and whenever they arise. As you can tell from the
above descriptions, being an entrepreneur is an exciting proposition!
Entrepreneurs do a variety of things and deal with a multitude of challenges. In
fact, we can say that entrepreneurial behavior is complex, intentional, and
passionate. Yet, it’s primarily because of these qualities that it is prudent for you
to know, from the start, the rewards and challenges of being an entrepreneur.