Course: Entrepreneurship & Small Business Mgmt.

Semester: MBA III Course Code: MS 207 Batch: 2010-2012

Instructor: Ms Shivani Puneet Raheja E-Mail: shivani.raheja@rdias.ac.in

Unit I (14 Hours) Introduction to Entrepreneur & Entrepreneurship

1. Foundation Concepts 2. Entrepreneurship: Concept & Definitions

3. Entrepreneurship & Economic Development 4. Classification & Types of Entrepreneurs; 5. Entrepreneurial Competencies 6. Factor Affecting Entrepreneurial Growth- Economic, Non- Economic Factors First Online Test 7. EDP Programs. 8. Entrepreneurial Training 9. Traits/Qualities of an Entrepreneurs, and 10. Entrepreneur; Manager Vs. Entrepreneur. Second Online Test

ENTREPRENEURIAL COMPETENCIES
(i)Initiative (ii)Sees and Acts on Opportunities(iii) Persistence(iv) Knowing(v) Concern for High Quality of (vi) Commitment to Work (vii) Efficiency (viii) Systematic (ix) Problem (x) Self-confidence(xi) Assertiveness(xii) Persuasion(xiii) Concern for Employee Welfare etc

FACTORS AFFECTING ENTREPRENEURIAL GROWTH 1. ECONOMIC FACTORS a) Lack of adequate overhead facilities: Profitable innovations require basic facilities like transportation, communication power supply etc. They reduce cost of production and increase profit. b) Non availability of capital Inventions are capital oriented. In less developed countries most capital equipment have to be imported which involves foreign exchange which acts as a difficult problem. c) Great risk Risk is high in case of less developed countries as there is lack of reliable information, markets for good and services is small etc. d) Non availability of labor and skills Though there is abundant labor supply there is generally scarcity of skills at all levels.

2. SOCIAL FACTORS A society that is rational in decision making would be favorable for decision making. Education, research and training is given less importance in less developed countries therefore there is very little vertical mobility of labor. 3. CULTURAL FACTORS Religious, social and cultural factors also influence the individual taking upan entrepreneurial career, in some countries there is religious and culturalbelief that high profit is unethical. This type of belief inhibits growth ofentrepreneurship. 4. PERSONALITY FACTORS In less developed countries the entrepreneur is looked upon with suspicion. Public opinion in the less developed nations sees in the entrepreneur only a profit maker and exploited. 5.MOTIVAT ION Motivation is the act of stimulating someone or oneself to get a desired course of action, to push the right button to get the desired results.

EDP Programs.

Phases of EDP

Select area from existing government policy guidelines/socio-economic reports

Techno-economic survey of the selected area; feasibility study Identify potential and existing entrepreneurs interested in starting new business/expansion/diversification Training Follow up and consultancy services

Entrepreneurial Training Course contents Introduction to entrepreneurship Motivation training Essentials of management Fundamentals of project feasibility study Organising the business Plant visit

Importance of Training Ensures availability of skilled manpower at all management Levels Enhancing abilities, potential among entrepreneurs Increase efficiency

Maintain and enhance product quality

Minimise wastages in production process Minimise accidents on the job Reduce fatigue and increase speed of work Standardisation in industry and internal processes

Entrepreneur

Intraprenuer

Entrepreneur Versus Manager

The terms Entrepreneur and Manager are considered one and the same. But the two terms have different meanings. The following are some of the differences between a manager and an entrepreneur.
The main reason for an entrepreneur to start a business enterprise is because he comprehends the venture for his individual satisfaction and has personal stake in it where as a manager provides his services in an enterprise established by someone. An entrepreneur and a manager differ in their standing, an entrepreneur is the owner of the organization and he bears all the risk and uncertainties involved in running an organization where as a manager is an employee and does not accept any risk. An entrepreneur and a manager differ in their objectives. Entrepreneurs objective is to innovate and create and he acts as a change agent where as a managers objective is to supervise and create routines. He implements the entrepreneurs plans and ideas.

 An entrepreneur is faced with more income uncertainties as his income is contingent on the performance of the firm where as a managers compensation is less dependent on the performance of the organization.

An entrepreneur is not induced to involve in fraudulent behavior where as a manger does. A manager may cheat by not working hard because his income is not tied up to the performance of the organization.
Entrepreneur is required to have certain qualifications and qualities like high accomplishment motive, innovative thinking, forethought, risk-bearing ability etc. Conversely its mandatory for a manager to be educated in the fields of management theories and practices. An entrepreneur deals with faults and failures as a part of learning experience where as a manager make every effort to avoid mistakes and he postpones failure. etc