MODULE-3

Entrepreneurship
The spirit of enterprise makes a person is entrepreneur. Entrepreneur thus is an
innovator who carries out new combinations in ever changing environment to initiate &
accelerate the process of economics social & technological development. He who uses
searches for changes responds to it & exploits the opportunity. The person having a
dynamic activity to prime changes in the process of production, innovations in business,
new ideas & usages of resources, establishing new markets.

Evolution of concept
It varies from country to country, time o time & the level of economic development of
the place. This word is derived from French verb. Which is entreprendre means to
undertake 16th country the Frenchmen who organized & military expeditions were
referred to as entrepreneurs. Trench economist Richard cantillion used the word
entrepreneur to business. Since the word entrepreneur is used to me who takes the risk
of stating new organization or business or introducing a new idea, production service to
society.

Characteristics of Entrepreneur
1. A good entrepreneur should be action oriented enthusiastic & energetic & ready to
take risk at all levels to achieve the goal.
2. Should have cerwavering determination & commitment.
3. Creativeness & result oriented, lord working
4. Accepts responsibilities with entrusiom,
5. Self confident deactivated & self disciplined
6. Both thinker & doer planner & worker,
7. Future vision intelligent, imaginative & self directed

Future an Entrepreneur

They are classified in to three groups

1. Primary
2. Other functions
 3. Functions importance for developing countries
Primary Other function Functions important for
developing countries.
Decision making Maintaining cordial employer & employee Engineering
relations
Management Tally lab our problems New product development
Innovation Coordination with outside agencies Parallel opportunities

Risk bearing: He should undertake responsibility & risk due to unforeseen situations.
The other functions are diversification of production, expansion of the enterprise
maintaining cordial relations with employee & employers attending to &resolving to
labour problems & coordination with outside agencies for the well being of the
enterprise.
The functions of an entrepreneur with reference to the underdeveloped countries include
wide range of activities live management of scarce resources dealing in the public,
engineering, new product development locking ant for parallel opportunities marketing
management of customers & supplier relations etc.

Primary functions
Planning: planning
involves
Study of
various ideas
Scanning & selecting the best idea
Selection of product line & location
of plant. Deciding the type of
business organization
Preparation of budget & identify capital resource.
Studying the government rules, regulations
& policies Study & selection of work force.
Study & selection of marketing strategies.
Organization: entrepreneur Coordinates & supervises the various tasks of organizing for
optional ultization of resources.

Decision making: He has to take affective decisions with regard to objective of the
enterprise, arrangement of resources & facilities GK men, material, machines, money,
methods, technology development of a market for the product & maintain good relationship
with workers.

Management: managing of the day to day problems. These include future expansion &
policies in long run.

Innovation: He should launch a new product, introduction of new technology in production

line creation of new markets new or better Sana of raw material.

Type of entrepreneur
According to the type of business.
1. Business entrepreneur
2. Trading
3. Industrial
4. Corporate
5. Agricultural
6. Retail
7. Service

According to the use of technology:

1. Technical entrepreneur or non technical entrepreneur
2. Professional entrepreneur
3. Low technology or high technology entrepreneurs

According to motivation:
Pure entrepreneur - not for economic rewards awn satisfy by psychological
Induced entrepreneur- Polices measures provides assistance, incentives by the
 support of government & institutions
Motivated entrepreneur- self fulfillment for making & marketing same things new
Spontaneous entrepreneur - inherent national talent by boldness initiative in any
enterprise self confident

According to the growth

1. Growth entrepreneur
2. Super growth entrepreneur

According to the stages of development

1. First generation entrepreneur
2. Produce entrepreneur
3. Classical entrepreneur

According to the area

1. Urban entrepreneur
2. Rural entrepreneur

According to age & gender

4. Young entrepreneur
5. Old entrepreneur
6. Male entrepreneur
7. Female entrepreneur

According to the scale of operation

1. Small scale entrepreneur
2. Medium scale entrepreneur
3. Large scale
entrepreneur
Other type
1. Professional & won professional
2. Modern entrepreneur
3. Traditional entrepreneur
4. Skilled & non- skilled entrepreneur
 5. Forced entrepreneur
6. Inherited entrepreneur
7. National & international entrepreneur
Qualities: Success & achievement directed & achieve goals Risk bearers, opportunity
explorer, planner, stress fater, facing uncertainties, and independent, flexible, Self-
confidant motivator.

Intrapreneur: Is the entrepreneurship within the existing business structure. It bridges

the gap between science & market place. Existing business will have the financial
resources, necessary skills to carry out business, the marketing & distribution systems to
commercialize the innovation. In bureaucratic structure, due to the focus on short term
profits & a highly structured organization, prevent creativity & development of new
products.
The differences in the entrepreneurial & managerial domains have contributed towards
an increased need for entrepreneurship. Some individual having self confidence, self
motivation & belief in their own talents, often desire to innovate new things on their
own. They want to own responsibilities & to work in their own way. They become
frustrates if this freedom is not given to them & get demotivated entrepreneurship is one
such method of providing freedom, stimulating & capitalizing on individuals in an
organization who think that things can be done in different & better way.

The resistance against flexibility, growth & diversification can be overcome by

developing a spirit of entrepreneurship within the organization called a entrepreneurship.
It reflects in the proportionate increase in social, cultural & business pressures.

Elements of entrepreneurship
It is the legal agreement that happens between the person &
organization The entrepreneurship has four important
Clements
1. New business venturing
This is the corporate venturing, the creation of new business within the
organization. This includes redefining the company’s products or services,
development of new market segment or formation of new corporate ventures.
2. Innovations
 Innovation is the development of new products, improvement of existing
products, development of improved & simplified production methods &
procedures.
3. Self-renewal
This is the transformation of an organization their renewal of main ideas. This
includes a
redefinition of a business concept, reorganization or modification in the system
with an aim to initiate innovating.
4. Proactiveness
Proactiveness includes initiative & risk thing competitiveness & dashing to take
new challenges, organization with this type of proactiveness spirit will lead the
market than follow the competitors.

Point Entrepreneur Entrepreneur Manager

Goal Management Independent Independent starts Delegates &
innovates kew ideas new ventures & supervises more than
leads direct direct involvement
involvement
Status Not concerned about Not concerned about Concerned about
traditional status, but status status symbol
wants recognition
Risk Owns moderate risk Bears all the risk & Does not bear any
uncertainly risk.
Rewards Gets fixed rewards Since there is risk, he Works for salary for
for lies work, many may get profit or loss his service which
get extra for his depending on fixed & definite.
innovations outcome
Innovations Innovative Any innovative Need not be
innovative. He
manages the ideas of
top management.
 Decision making Moderate, limited to Beng much irrvolred Delegates the
this work in decision making decisions of top
management

Entrepreneurship
Concept of Entrepreneurship: It is a process undertaken by entrepreneur to augment
his business interests. It is defined as an indivisible process flourishes, when the
interlinked dimensions of individual psychological entrepreneurship, entrepreneur traits,
social encouragement, business opportunities government policies, availability of
resources, opportunities coverage towards the common good, development of society &
economy.

Entrepreneurship in today’s context in the product of teamwork & ability to crate, build
& work as team. It is also a process of identifying opportunities in the market place,
arranging the resources required to pursue these opportunities & inverting the resources
to exploit the opportunities for better gains.

Higgins defines the function of foreseeing investment & production opportunities,

organizing an enterprise to undertake a new production process, raising capital hiring
labour, arranging the supply of raw materials, finding site, introducing new technique,
discover age new sources of raw materials & selecting top managers for day to day
operation.

Cole’s explains the purposeful activity of an individual or a group of associated

individuals undertaken to initiate, maintain or organize profit by production or
distributing of economic goods & services.
All the above definitions highlight risk bearing, introversion & resource organizing
achieving goal their production of goods or services.

Characteristics of entrepreneurship
1. Innovation
Entrepreneurship involves innovation of new things to effect dynamic changes &
good success in economy. It should create conditions for growth of economy.
2. Risk – taking
Risk is an inbuilt element of any business. Entrepreneurship should be risk bearing
 to catn uncertainity of future.
3. Skillful management
Entrepreneurship hinges together various functions of the management planning
organizing staffing directing controlling & leading.
4. Organization
It being together various facilities of production for an efficient & economical use.
5. Decision making
Decision making is very vital. Taking decision at all levels & stages of
entrepreneurship is a routine task.

6. Making the enterprise a success

It is mainly an economic activity as it deals with creating &b operating an
enterprise. It involves in satisfying the needs of customers with the help of
production and distribution of goods & services. This makes the enterprise a
success.

Functions of women entrepreneur

Exploration of the prospects of starting a
new business Pool up the resources
Establish the industrial
enterprise Manage the
business
Development of
strategies. To
assume risk &
uncertainty
To develop business & business
decision Motivation
Supervision &

leadership Problems of

women entrepreneurs
 1. Problems of finance
2. Lack of education
3. Limited mobility
4. Family lies
5. Scarcity of raw materials.
6. Stiff competition
7. Low- risk bearing capacity
8. Social problems
9. Male dominations

Steps to be taken to develop women entrepreneurship

1. Provide basic education & establish special institutions to train women
entrepreneurs.
2. Conduct especial workshops to women for better awareness
3. Liberal financial support to motivate women entrepreneurs
4. Favorable credit policies to women
5. Provide better marketing help to women entrepreneurs
6. Provide need- based training for development of skills & entrepreneurship.
7. Establish self-help groups, Voluntary agencies & social welfare organization for
women entrepreneurs
8. Provide concessions to women entrepreneurs.
9. Provide a common platform to all the concerned agencies & R & D organization
to achieve an interacted approach for promoting women entrepreneurs.

Industries promoted by women entrepreneurs

1. Agarbathi
2. Paper
3. Embroidery
4. Handicrafts for exports
5. Readymade garments
6. Catering service, hotels.
7. Travel agency, Xerox, Photo studios Telephone books
8. Printing presses & DT D
 9. Florists, Beauty per lour
10. Working women hostels
11. Running schools & tutorial college
12. BIOCON

Barriers of entrepreneurship
1. Lack of capital
2. Lack of technical knowledge
3. Economic business cycle
4. Non availability of raw materials & resources
5. Enfold regulations
6. Obsolescence of technology or idea
7. Unstable & unpredictable markers
8. globalization & entry of foreign goods
9. Risk

Stages of entrepreneurial process

1. Identification of opportunity
2. Evaluation of opportunity
3. Preparation of business plan
4. Determination & organizing the resources
5. Management of enterprise.

Identification of opportunity
Customers & business association, members of distribution system, independent technical
organizations consult entry etc. government organizations & R&D centers also provide new
ideas

Evaluation of opportunity
It involves length of opportunity, its real perceived value its risks & resources, with
personal skills goals of entrepreneur & its uniqueness or differential advantages in its
competitive environment
The length of opportunity and size & share are two main aspects for deciding the risk &
gains or profits. SWOT (Strength, weakness, opportunities & treats) analysis. This plan
includes
1. Description of product
2. Agreement of opportunity
3. Assessment of the entrepreneur
4. Resources needed
5. Amount & sources of capital
6. Profit expected

Development of a business plan

1. Title of project, table of contents & executive lumserasy
2. Description of business & industry.
3. Technology plan
4. Financial plan
5. Organization plan
6. Production & operation plan
7. Marketing & distribution plan
8. Summary

Management of enterprise
After resources are acquired, the entrepreneur must use them to implement the
business plan Increased administrative expenses
Some tines it could result in heated arguments

ENTREPRENEURSHIP

The spirit of enterprise makes a person is entrepreneur. Entrepreneur thus is an

innovator who carries out new combinations in ever changing environment to initiate &
accelerate the process of economics social & technological development. He who uses
searches for changes responds to it & exploits the opportunity. The person having a
dynamic activity to prime changes in the process of production, innovations in business,
new ideas & usages of resources, establishing new markets.
Evolution of concept
It varies from country to country, time o time & the level of economic development of
the place. This word is derived from French verb. Which is entreprendre means to
undertake 16th country the Frenchmen who organized & military expeditions were
referred to as entrepreneurs. Trench economist Richard cantillion used the word
entrepreneur to business. Since the word entrepreneur is used to me who takes the risk of
stating new organization or business or introducing a new idea, production service to
society.

Characteristics of Entrepreneur
1. A good entrepreneur should be action oriented enthusiastic & energetic & ready
to take risk at all levels to achieve the goal.
2. Should have cerwavering determination & commitment.
3. Creativeness & result oriented, lord working
4. Accepts responsibilities with entrusiom,
5. Self confident deactivated & self disciplined
6. Both thinker & doer planner & worker,
7. Future vision intelligent, imaginative & self directed Entrepreneurship
development programme EDP
It focuses on indentifying entrepreneurship qualifies of an individual, providing required
training, preparing related project reports, preparing the entrepreneurs to manage finance,
Production, technology marketing & infrastructure facilities. EDP also provides knowledge
to solve problems & difficulties of entrepreneur.

Need for EDPS

1. Builds confidence in people
2. Gives guidelines to the young
3. Gives technical assistance, management, training consultancy.
4. Channelizes them to accelerate industrialization
5. It is helpful in growth of small scale section.