Entrepreneurship

Development
Unit 1:
Meaning of entrepreneurship and Traits of entrepreneurship
Types of Entrepreneurship
Barriers to entrepreneurship
Stages in entrepreneurial process
Women entrepreneurship and economic development
SHG
Factors promoting entrepreneurship
The entrepreneurial culture
 Entrepreneurship
Development
Unit 1:
LO 1: To define the concept of entrepreneurship and to identify the professional
behaviours expected of an entrepreneur
LO 2: To Explore the Entrepreneurial Organizational Culture (EOC)
LO 3: To examine the challenges of women entrepreneurs
Meaning of entrepreneurship
• “Entrepreneurship is the attempt to create value through recognition
of business opportunity, the management of risk-taking appropriate
to the opportunity, and through the communicative and management
skills to mobilise human, financial and material resources necessary to
bring a project to fruition” – Kao and Stevenson 1984
• “Entrepreneurship is the purposeful activity of an individual or a
group of associated individuals, undertaken to initiate, maintain or
aggrandize profit by production or distribution of economic goods and
services” A H Cole 1959
Meaning of entrepreneurship
• Entrepreneurship is a process involving various actions to be
undertaken to establish an enterprise
• Innovation and Risk bearing are the two basic elements involved in
entrepreneurship
• Innovation:
• Doing something new or something different
• Entrepreneurs are constantly are constantly on the look out to do something
unique
• May not be inventors but they foresee the possibility of making use of the
inventions
 Think – Pair – Share

2 Innovative entrepreneurial
ventures
a. The problem identified
b. The successful solution implemented
Meaning of entrepreneurship
• Risk-Bearing:
• Risky to start a new enterprise or trying to so something different
• May earn profits or incur losses
• Increasing competition
• Change in customer preferences
• Shortage of raw materials, etc
• Entrepreneur should be a risk-taker, not risk avoider
• Even if he fails in one time or one venture risk-bearing nature helps in
succeeding
 Meaning of entrepreneurship
Entrepreneur Entrepreneurship
Person Process
Organiser Organisation
Innovator Innovation
Risk-bearer Risk-Bearing
Motivator Motivation
Creator Creation
Visualiser Vision
Leader Leadership
Imitator Imitation

Entrepreneurship is concerned with the performance and coordination of the entrepreneurial functions
Traits of entrepreneurship
• Hard Work:
• No substitute for hard work
• Desire for high Achievement
• This desire strengthens them to surmount the obstacles, supress anxieties,
repair misfortunes, and devise expedients u
• Set up and run a successful business
• Highly Optimistic
• Positive approach
• Do not get disturbed by the present problems
• Optimistic that the future situations will become favourable to business in
future
Traits of entrepreneurship
• Independence
• Do not like to be guided by others and follow their rules
• Like to be independent in the matters of business
• Foresight
• Good foresight to know about future business environment
• Visualize changes to take place in market, consumer attitude and taste,
technological developments etc
• Good Organiser
• Various resources required for production are owned by different owners
• Ability of the entrepreneur to bring it all together
Traits of entrepreneurship
• Innovative
• To meet changing requirements of customers entrepreneurs initiate research and
innovative activates
• Perseverance
• Exhibit tremendous perseverance in their pursuits
• Undergo lots of failure but do not become disheartened
• Take failure as learning experience
• Team spirit
• Together Everyone Achieves More
• Build team and work with teammates
• Collective accountability
• Creates synergy and achieves success in its endeavours
Types of Entrepreneurship
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The entrepreneurial decision
process
The Present
• By Chance – Experience in current job
• By Compulsion – Challenge/Disruption in present jobs
Status • Individual perceives and realizes that establishing a new
enterprise is desirable for him/her
• Economic reason
• Unemployment
Reasons for changing • Completion of education
• Dislocation
the Present Status • No or less possibility for career
• Economic prosperity

• Culture and family

Desire for change • Teachers and Peers
from Present • More individual opportunities
status to Become
Entrepreneur • Education
• Society perception about entrepreneurship

• Desire to form alone will not be enough

Possibilities to
Become an • Supportive and infrastructure
Entrepreneur • Background and previous experience
• Govt. attitude, finance and market
• One’s role model – Self efficacy

An Entrepreneur
Barriers to Entrepreneurship
Role play
Materials
https://www.entrepreneursdata.com/barriers-to-entrepreneurship-wit
h-solutions-fully-explained/
https://www.javatpoint.com/barriers-to-entrepreneurship
Entrepreneurial Culture
• “An entrepreneurial culture consists of a group of individuals who have
suppressed individual interests in an effort to achieve group success
because group success will advance their individual interests.”
• An Entrepreneurial Organizational Culture (EOC) is a system of
• Shared values, beliefs
• Norms of members of an organization
• Including valuing creativity and tolerance of creative people
• Believing that innovating and seizing market opportunities are
appropriate behaviours to
• Deal with problems of survival and prosperity
• Environmental uncertainty and competitors’ threats and expecting
organizational members to behave accordingly.
Entrepreneurial Culture
• Culture to be always a collective phenomenon, it is learned consciously and
unconsciously.
• It should therefore be distinguished from human nature, on the one hand, and from
the individual personality, on the other.
• Cultural features are passed on in socialization processes.
• That is why culture cannot be changed in the short term: it has a long-term character.
• Cultural features influence attitudes towards start-ups and vice versa.
• Entrepreneurial culture can be described as an environment where someone is
motivated to innovate, create, and take risks.
• In a business, an entrepreneurial culture means that employees are encouraged to
brainstorm new ideas or products. When work time is dedicated to these activities, it
is called entrepreneurship.
Entrepreneurial Culture in an organisation
Hire Aspiring Entrepreneurs.

Make Employees Feel Like Partners.

Empower and Encourage Employees.

Be Open to Micro-Failures.

Give Incentives to Employees.

Lead by Example.

Give Employees a Voice.

Make It Safe to Share Ideas.

Give Employees Ownership.

Ask Them for Their Recommendation.

Create a Startup Culture.

Make Hires Draw an Owl.

Google: Founded by Larry Page and Sergey Brin, Google embodies an
entrepreneurial culture that encourages innovation and risk-taking. Its
famous "20% time" policy allowed employees to spend a portion of
their work hours on personal projects, leading to the creation of
products like Gmail and Google News.
 Zappos: Tony Hsieh built a customer-centric culture at Zappos by
empowering employees to make decisions autonomously to ensure
customer satisfaction. Their focus on company culture and employee
happiness resulted in a successful business model and high employee
retention rates.

Square: Co-founded by Jack Dorsey, Square disrupted the payment

processing industry by creating a mobile payment platform. The
company's entrepreneurial culture encourages experimentation and
agility, allowing it to adapt quickly to changing market needs.
Tesla: Elon Musk's entrepreneurial approach transformed Tesla into a
pioneering force in the electric vehicle industry. Musk's visionary
leadership and willingness to take bold risks have been pivotal in
driving Tesla's innovation and growth
• Case Study: Airbnb
• Founded in 2008 by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk, Airbnb
emerged as a disruptor in the hospitality industry. The platform allows individuals to
rent out their properties to travelers seeking unique and affordable accommodations.
The founders of Airbnb identified an untapped market and redefined traditional
hospitality by leveraging technology. They transformed spare rooms and vacant
properties into viable lodging options, challenging the dominance of hotels. The
founders launched a platform based on trust between strangers. They experimented
with various strategies, such as professional photography for listings and
implementing user reviews, to build credibility and trust within the community.
Airbnb prioritized understanding and addressing customer needs. They focused on
enhancing user experiences, fostering connections between hosts and guests, and
continuously iterating the platform based on feedback. The company's core values,
including "Belonging," "Champion the Mission," and "Be a Host," embody its
entrepreneurial spirit. These values guide decision-making, inspire employees, and
shape the company's direction. Airbnb demonstrated adaptability by diversifying its
offerings beyond accommodations. Experiences and Airbnb Plus expanded its
portfolio, catering to different traveller segments. Additionally, during the COVID-19
pandemic, the company adapted swiftly, prioritizing safety measures and introducing
virtual experiences.
• Innovation and Disruption
• Risk-Taking and Experimentation
• Customer-Centric Approach
• Cultural Values
• Adaptability and Resilience
Women Entrepreneurship
“an enterprise owned and controlled by a women having a minimum
financial interest of 51 per cent of the capital and giving at least 51 per
cent of the employment generated in the enterprise to women”
– (GOI 2006)
• Different scholars have identified different sets of functions
performed by an entrepreneur whether man or women and can be
classified into
• Risk-Bearing
• Organisation
• Innovations
Women Entrepreneurship in India
• Women in India face the challenge of low literacy rate (40%), low work participation
(28%) and low urban population share (10%) as compared to 60%, 52% and 18%
respectively of their male counterparts
• Our age-old socio-culture traditions and taboos arresting women within four walls
among other practices serve as non-conductive conditions
• Only 5.2% in total self-employed persons in the country are women
• Women entrepreneurs in India accounted for 9.01% of total 1.70 million (1988-89)
• Emergence and development of entrepreneurship is largely due to supportive
conditions
• Women entry into business is traced as an extension of their Kitchen activity
• Women in India are drawn to entrepreneurship due to both push and pull factor
• Pull – With an urge to do something independently
• Push – To tide over their economic difficulty
• Growth of awareness and education among women has led to the shift to Engineering,
Electronics and Energy
 Women Entrepreneurship in India
• They dominate three important sub sectors
• 80% of employees in textile, clothing and leather production
• 75% in food, beverages and tobacco production
• 60% in wood and wood processing

THINK PAIR AND SHARE

Bring out the various challenges faced by women on their Entrepreneurial journey
Challenges faced by women on their
Entrepreneurial journey
• Problem of Finance
• Do not have property to use as collateral for loans
• Banks consider women les credit worthy
• Scarcity of Raw material
• High price and minimum discount
• Stiff Competition
• Do not have organisational set-up or resources to spend on advertising and
marketing
• Limited mobility
• Difficult for women to move into a different city
Challenges faced by women on their
Entrepreneurial journey
• Family Ties
• Looking after children
• Total involvement in family leaves little or no energy and time for business
• Lack of Education
• Unaware of business, technology and market knowledge
• Low achievement motivation among women
• Male-Dominated Society
• Not treated equal to men
• Low Risk-Bearing Ability
• Lead a protected life
• Less educated and economically not self-dependent
• These reduce their risk ability to bear risk
Women entrepreneurship and
economic development
Economic Contribution:
1. Capital Formation
• Mobilise idle savings of the public
• Utilisation of national resources
• Rate of capital formation increases
2. Improvement in Per Capita Income
• Convery latent and ideal resources to national income and wealth
• Increase the net national product and per capita
3. Generation of employment
• Employment generation both directly and indirectly
• By setting up small scale industries
Women entrepreneurship and
economic development
Social Contribution:
1. Balanced Regional Development
• Remove regional disparities by setting up industries in backward areas to avail
concessions and subsidies offered by Govt
2. Improvement in Living Standards:
• Reduction of scarcity of essential commodities and introducing new products
• Produce variety of goods on large scale and offer at low rates
3. Innovation
• Assume the role of a pioneer and an industrial leader
• Develop new product
• All these have resulted in economic development by way of generating employment,
more income etc
Women entrepreneurship and
economic development
Group Discussion
From the words of distinguished entrepreneurs and experts bring out the key contribution of
women entrepreneurship in economic development

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Self Help Group
• A self-help group is a financial intermediary committee usually
composed of 10 to 25 local women between the ages of 18 and 40.
• Self-help Groups (SHGs) are informal associations of people who
come together to find ways to improve their living conditions.
• They are generally self-governed and peer-controlled.
• People of similar economic and social backgrounds associate
generally with the help of any NGO or government agency and try to
resolve their issues, and improve their living conditions
The emergence of Self Help Groups – Origin
and Development in India
• The origin of SHGs in India can be traced back to the establishment of the Self-Employed
Women’s Association (SEWA) in 1972.
• Even before, there were small efforts at self-organising. For example, in 1954, the Textile
Labour Association (TLA) of Ahmedabad formed its women’s wing in order to train the
women belonging to families of mill workers in skills such as sewing, knitting, etc.
• Ela Bhatt, who formed SEWA, organised poor and self-employed women workers such as
weavers, potters, hawkers, and others in the unorganised sector, with the objective of
enhancing their incomes.
• NABARD, in 1992, formed the SHG Bank Linkage Project, which is today the world’s
largest microfinance project.
• From 1993 onwards, NABARD, along with the Reserve Bank of India, allowed SHGs to
open savings bank accounts in banks.
• The Swarn Jayanti Gram Swarozgar Yojana was introduced in 1999 by GOI with the
intention of promoting self-employment in rural areas through formation and skilling of
such groups.
•
Evolution Stages of Self Help Groups in India

• Every Self-help group usually goes through 3 stages of evolution

stated below:
• Formation of group
• Funding or Formation of Capital
• Development of required skills to boost income generation for the group
The various types of Self-help promoting agencies are stated below:
• Non-governmental agencies
• Government
• Poverty management programmes
• State & commercial banks
• Microfinance institutions
• SHG Federations
• SHG leaders/Entrepreneurs
Functions of Self Help Groups
• They try to build the functional capacity of poor and marginalised
sections of society in the domain of employment and income-
generating activities.
• They offer collateral-free loans to sections of people that generally
find it hard to get loans from banks.
• They also resolve conflicts via mutual discussions and collective
leadership.
• They are an important source of microfinance services to the poor.
• They act as a go-through for formal banking services to reach the
poor, especially in rural areas.
• They also encourage the habit of saving among the poor.
 THINK PAIR AND SHARE

Bring out the Advantages and Limitations of

Self Help Groups
Factors Promoting Entrepreneurship
• Emergence and development of entrepreneurship are dependent on
several factors
• Some factors have a positive influence, while others have a negative

List two elements that have a positive and a negative impact on

entrepreneurship, respectively.
Graphical model
Factors promoting entrepreneurship
• Internal Factors
• The shaded region pertain to the internal factors of an entrepreneur
Personality and psychology in nature that motivates
Need for achievement
Being innovative
Courageous
Confident
Self-reliant
They are like seed of entrepreneurship
If the individual lacks these he/she needs to develop these internal
characteristics
Factors promoting entrepreneurship
• Family Atmosphere
 Personality of a person is influenced by the family background right from birth

 Individuals belonging to families with active business develop entrepreneurial qualities

 Those born in rich business families have the advantage of experience over new ones

 Family perspective towards entrepreneurship and regular fixed income as salaries

 In India most of the business are family run and ownership is within the family
Factors promoting entrepreneurship
• External Factors
• These factors lay outside in the environment and they influence the internal factors
 Political Environment
Social and Cultural environment
Economic environment
Legal environment
Technology environment
Government and Non Government Policies, Programmes, Incentives.

Group Discussion: Discuss and bring out various impact the external factors have on
promoting entrepreneurship
Check your knowledge

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