ENTREPRENEURSHIP

DEVELOPMENT
SYLLABUS
• UNIT I - INTRODUCTION
Definition - Entrepreneurship concept evolution –
Characteristics of Successful Entrepreneur -
Entrepreneurship as a Career – Entrepreneurial decision
process – Need for Entrepreneur – Types of Entrepreneur
– Intrapreneur – Technopreneur – Netpreneur -
Ecopreneur - Social Entrepreneurship – Case Study 1
• UNIT II ENTREPRENEURAL ENVIRONMENT
Business Environment - Role of Family & Society Factors
affecting Entrepreneurs growth – Women Entrepreneurs
– Agripreneurship - Entrepreneurship Development
programmes - Central and State Government Policies and
Regulations - Case Study 2
Contd..
• UNIT III BUSINESS PLAN PREPARATION
Sources of business ideas – Methods of generating
ideas – Creative problem solving - Test of feasibility –
Business plan – Scope – Value – Evaluation –
Presentation – Content of business plan – Sample
business plan
• UNIT IV LAUNCHING OF SMALL BUSINESS
Finance and Human Resource Mobilization –
Institutional finance to entrepreneur – Institutional
support to entrepreneur – Taxation benefits – Role of
Industries / Entrepreneurial association and self help
groups – Role of Incubators - Angel Investors -Venture
capital – Case Study 3
Contd..
• UNIT V SMALL BUSINESS MANAGEMENT
Monitoring business - Evaluation of Business -
Preventing Sickness - Rehabilitation of Business – Exit
strategy – Succession – Harvesting strategy –
Biographical study of Entrepreneurs – Karsanbhai
Patel – Patricia Narayan – Sarath Babu Elumalai
Text Books

1. S.S.Khanka, Entrepreneurial Development, S.Chand

and Company Limited, New Delhi, 2013.

2. Robert D Hisrich, Michael P Peters ,

Entrepreneurship, 6 th edition Tata McGraw Hill, New
Delhi, 2010.
Case study

1. N. R. Narayana Murthy: An exemplary Risk-Taker

2. Shahnaz Hussain: A World famous women

3. Professor Mohammed Yunus: Micro Credit

ENTREPRENEURSHIP
• Process of creating something new and assuming the
risks and rewards
• Basic aspects
– Creating something new of value
– Devotion of necessary time and effort
– Assuming the necessary risks
– Rewards for being an entrepreneur
• If we could have entrepreneur in every family, India’s
economy would sky rocket & we will take the rightful
place of super power
– Rahul Bajaj, Chairman & MD, Bajaj Auto
WHAT IS ENTREPRENEURSHIP?

• Entrepreneurship defined by describing what they do.

• Entrepreneurs use personal initiative, risk-taking, to
create new business ventures to satisfy the needs of a
clearly defined market.
• Entrepreneurship is not restricted to business and profit
• Entrepreneurship involves bringing about change to
achieve some benefit
• Entrepreneurship is essentially the act of creation
requiring the ability to recognize an opportunity, shape a
goal, and take advantage of a situation.
• Entrepreneurs plan, persuade, raise resources, and give
birth to new ventures.
Who Are Entrepreneurs?
• The word entrepreneur is derived from the French
word ‘enterprendre’ it means “to undertake” and
literally translated means “between-taker” or “go-
between”.
• An entrepreneur is an individual who takes moderate
risks and brings innovation.

• Entrepreneur is a person who organises/ manages the

risks in his/her enterprise.

• “Entrepreneur is a individual who takes risks and

starts something new”
Definition
• According to J.B.say, “Entrepreneur is an Economic agent
to unites all the means of production”

• An entrepreneur is an individual who takes moderate risks

and brings innovation.

• An entrepreneur is a person who has possession of a new

enterprise, venture or idea and assumes significant
accountability for the inherent risks and the outcome.

• An entrepreneur is "one who undertakes an enterprise,

especially a contractor, acting as intermediately between
capital and labour."
Some facts about entrepreneurs and entrepreneurship:

E:xamine needs, wants, and problems to see how they can improve
the way needs and wants are met to overcome problems.

N: arrow the possible opportunities to one specific "best"

opportunity.

T:hink of innovative ideas and narrow them to the "best" idea.

R:esearch the opportunity and idea thoroughly.

E:nlist the best sources of advice and assistance that they can find.

P:lan their ventures and look for possible problems that might
arise.
R:ank the risks and the possible rewards.

E:valuate the risks and possible rewards and make their decision to
act or not to act.

N:ever hang on to an idea, no matter how much they may love it, if
research shows it won't work.

E:mploy the resources necessary for the venture to succeed.

U:nderstand that they will have to work long and hard to make
their venture succeed.

R:ealize a sense of accomplishment from their successful ventures

and learn from their failures to help them achieve success in the
future.
Major types
• SME Entrepreneur
– Local
• IDE Entrepreneur [Innovation Driven]
– Global
•
Entrepreneur & Economy
• India has more than 50% of its population below the
age of 25 and more than 65% below the age of 35. It
is expected that, in 2020, the average age of an
Indian will be 29 years, compared to 37 for China and
48 for Japan
• Median age : 27 years – 600million people
• 1million new jobs every month
• How can?
• Startup created new jobs and established were
negative job creators – kauffman foundation
EVOLUTION OF THE CONCEPT
• Capitalist vs. Merchant adventurer (Earliest)
– Marco Polo [75-25]
• Actors & Person managing large production projects
(Middle Ages) – no risk only managed projects using
resources
• Person entering into contractual agreement with
governments (17th century)
– Risk of profit or loss – fixed price contract
– Richard cantillon – merchants, farmers, craftsmen, sole
proprietors – buy at certain price & sell at uncertain price
• Industrialization – entrepreneur vs capital provider (18th
century)
• Managers as entrepreneurs (19th and 20th centuries)
• Entrepreneur as an innovator - unique
ENTREPRENEURIAL CHARACTERISTICS

• Hard work
• Desire for high achievement
• Highly optimistic
• Independence
• Foresight
• Good organizer
• Innovative
Characteristics of Successful Entrepreneurs

• Entrepreneurs are different from each other, but

successful entrepreneurs tend to share certain
characteristics. Not all of them have developed
each of the following to the same degree, but
they tend to have developed most of them to
some degree.
Entrepreneurs tend to:
• be passionate about achieving their goals
• have a spirit of adventure (in fact, the word "adventure" is
derived from the Latin word meaning "to venture")
• have a strong need to achieve and seek personal
accomplishment
• be self-confident and self-reliant
• be goal-oriented
• be innovative, creative, and versatile
• be persistent
• be hardworking and energetic
• have a positive attitude
• be willing to take initiative
• have a strong sense of commitment
• An eye for opportunity: Many entrepreneurs start by finding a
need and quickly satisfying it.
• Independence: Even though most entrepreneurs know how to work
within the framework for the sake of profits, they enjoy being their
own boss.

• An appetite for hard work: Most entrepreneurs start out working

long, hard hours with little pay.

• Self-confidence: Entrepreneurs must demonstrate extreme self-

confidence in order to cope with all the risks of operating their own
business.

• Discipline: Successful entrepreneurs resist the temptation to do what

is unimportant or the easiest but have the ability to think through to
what is the most essential.

• Judgment: Successful entrepreneurs have the ability to think quickly

and make a wise decision.
• Ability to accept change: Change occurs frequently when you
own your own business, the entrepreneur thrives on changes
and their businesses grow.

• Make stress work for them: On the roller coaster to business

success the entrepreneur often copes by focusing on the end
result and not the process of getting there.

• Need to achieve: Although they keep an "eye" on profits, this is

often secondary to the drive toward personal success.

• Focus on profits: Successful entrepreneurs always have the

profit margin in sight and know that their business success is
measured by profits.
Signs of Entrepreneur

• You take action(invent as you go) – concept – no

detailed strategy
• You are insecure – drive to achieve business goals
• You are creative –even though no resources must be
resourceful
• You have cash flow
• Look for opportunities
• You are fearless – optimist
• You are eager to work
Contd..
• You can evolve to market’s feedback
• Evaluate your own performance
• Motivated by challenges
• Recover quickly
• You fulfill needs
• Have smart people around you
Why Entrepreneurs Fail
• 1:9 - No single formula to success
• Stop obsessing with success
– Apple 2007 – passionate
• Same recipe will not take you to greater heights
– Blackberry
– Nokia
• Practice wise persistent – objective – why – when to
windup
– Pinterest
• Integrity – Credibility – commitment – courage - ???
• Passion
Contd..
• Practice Jugaad – creative improvisation
• Risk mitigation – collective decisions
• Execution is not the only thing
– kodak digi cameras
• Foresight
• Purpose
 ENTREPRENEURSHIP CAREER
• Recognition to small firms

• Increase in media coverage

• Formation of numerous companies

• No environment for self actualization

• Increase in families with dual income

• Growth in female entrepreneurship

 CAREER DEVELOPMENT

LIFE SPACE AREAS CHILDHOOD EARLY ADULTHOOD PRESENT

ADULTHOOD

WORK / Education and Employment history Current work

OCCUPATION childhood work situation

INDIVIDUAL / Childhood influences Adult development Individual’s current

PERSONAL on personality history perspective

NON WORK /FAMILY Childhood family Adult family / non Current family / non
environment work history work situation
SKILLS OF AN ENTREPRENEUR
 TECHNICAL SKILLS
• Writing
• Oral communication
• Technical business management
• Interpersonal
• Listening
• Ability to organize
• Network building
• Team player
 BUSINESS MANAGEMENT SKILLS
• Planning and goal setting
• Decision making
• Human relations
• Marketing
• Finance
• Accounting
• Management
• Control
• Negotiation
• Venture launch
 PERSONAL SKILLS
• Inner control / disciplined
• Risk taker
• Innovative
• Change oriented
• Persistent
• Visionary leader
• Ability to manage change
Entrepreneurship as a Career: Positive

• Being the boss - he enjoys unlimited powers

• Numerous opportunities for his self- development

• Working on one's own and thus getting rewards yields immense satisfaction
and pleasure

• Monetary rewards can be more

• He can command respect of his immediate family and friends - intangible

reward

• She/he generates employment for others.

• He can make significant contribution to the development of the country

• He can be a great achiever realising his goals and proving his achievements
to the world
Negative aspects

• Though an entrepreneur is his own boss, in some respects he is not. It

is so because he is constrained by various people like his financiers,
labourers, suppliers, customers and so on.

• He may have to face frustration since the scope of his operations is

limited by his limited resources.

• He has to work long and hard hours from morning to dusk and his
venture tends to absorb all his energy and time. This may affect his
social and family life.

• At times he may have to face disappointments and frustrations since

everything in his venture may not always work the way he would like
it to.

• He has to always work with tension since there is always the risk of
failure.
key Qualities of Entrepreneur

• Being an entrepreneur is about more than just starting

a business or two, it is about having attitude and the
drive to succeed in business.
• All successful Entrepreneurs have a similar way of
thinking and posses several key personal qualities
that make them so successful in business.
• Successful entrepreneurs like the ambitious Richard
Branson have an inner drive to succeed and grow
their business, rather than having a Harvard Business
degree or technical knowledge in a particular field.
All successful entrepreneurs have the following qualities

• Inner Drive to succeed : Entrepreneurs set massive goals for

themselves and stay committed

• Strong Belief in themselves : Strong and assertive personality.

Focused and determined to achieve their goals , Self optimism

• Search for New Ideas and Innovation: Passionate desire to do

things better and to improve . They're creative, innovative and
resourceful.

• Openness to Change If something is not working for them

they simply change. Only way to being number one is to evolve
and change with the times. They're up to date & ready to
change if a new opportunity arise.
• Competitive by Nature: Successful entrepreneurs
thrive on competition self imposed high standards is to
be compete.

• Highly Motivated and Energetic Entrepreneurs

• Accepting of Constructive Criticism and Rejection

• True entrepreneurs are resourceful

FUNCTIONS OF AN ENTREPRENEUR
• Idea generation and scanning

• Determination of business objectives

• Product analysis and market research

• Determination of form of ownership

• Completion of promotional formalities

• Raising necessary funds

• Procuring equipments

• Recruiting people

• Undertaking business operation

 ENTREPRENEUR VS MANAGER
• Motive

• Status

• Risk bearing

• Rewards

• Innovation

• Qualifications
Entrepreneurial Decision process
Classification of Entrepreneurs
• Aggressive/Innovative
– Sense the opportunities for introduction new
ideas, new technology, new markets and creating
new organizations
– Transformation in life style
• Jeff Bezos - Founder and CEO of Amazon.com
• Elon Musk - Paypal, Tesla & SpaceX
• Salman Khan - Founder of the Khan Academy, a free,
nonprofit online education platform
Imitative/ Adoptive
• Adopts successful innovation introduced by other
innovators
• Very helpful in less developed countries as they
contribute significantly in the growth of enterprise
and entrepreneurial culture in these countries
Fabian entrepreneurs
• Very cautious and skeptical while practicing any
change
• Shy and lazy
• Dealings are determined by custom, religion,
tradition and past practices
• Much interested in taking risk and they try to follow
the footsteps of their predecessors
• Companies making aero planes ( Airbus & Boeing)
Drone entrepreneurs
• Refusal to adopt and use opportunities to make
changes in production methods
• Even suffer losses but they do not make changes in
production methods
• The coir and bamboo industries are still in the hands
who refuse to innovate
Types - Cole
• Empirical: He is an entrepreneur hardly introduces
anything revolutionary and follows certain principles.
• Rational: The rational entrepreneur is well informed
about the general economic conditions and
introduces changes which look more revolutionary
• Cognitive: Cognitive entrepreneur is well informed,
draws upon the advice and services of experts and
introduces changes that reflect complete break from
the existing scheme of enterprise.
Classification on the Basis of Ownership
• Private

• Public
Classification Based on the Scale of Enterprise
• Small scale

• Large scale
Other types..
• Solo operators
• Active partners
• Inventors
– Inventing new products, technologies and
methods of production
• Challengers
– No challenge in life, there is no charm in life
– uncertainties for earning profit
Contd..
• Buyers
– Explore opportunities to purchase the existing
units which may be seized or are in running
condition
– Turn them around using their experiences &
expertise.
• Life timers
– Business is the part and parcel of their life
– Family enterprises which thrive due to high
personal skill are included under this category
Contd..
• Nascent entrepreneurs - People who are engaged in
creating new ventures
• Novice entrepreneurs are first time entrepreneurs
hence, have no prior business experience
• Habitual entrepreneurs engage in repeated
entrepreneurial behaviour and are therefore
experienced entrepreneurs
– Serial entrepreneur – one at a time
– Portfolio entrepreneur - who own more than one
business at a time
Based on type of business
• Trading Entrepreneur
– Procure finished goods & sell to customers
– Middlemen
• Manufacturing Entrepreneur
– Designs & manufactures to satisfy the need of
customers
• Agricultural Entrepreneur
– Agricultural pursuits
– Cultivation, marketing of agricultural products,
mechanization & technology
Intrapreneur
• Is an entrepreneur within an already established
organization
• To retain the talent
• Dependency
• Raising of funds
• Risk mitigation
• Operates with organization
Examples
• Steve Jobs in a 1985
• The Macintosh team was what is commonly known
as intrapreneurship… a group of people going, in
essence, back to the garage, but in a large company
Eg.. GOOGLE
• Idea: Google allows time for personal projects. Some
of Google’s best projects come out of their 20
percent time policy
• Benefit: Paul Buchheit, the creator of Gmail, started
on the project in 2001 and worked up to its launch
on April 1, 2004
SONY
• Idea: Ken Kutaragi, a relatively junior Sony Employee,
spent hours tinkering with his daughters Nintendo to
make it more powerful and user friendly. What came
from his work is one of the most recognizable brands
in the world today, The Sony Play station
Social Entrepreneur
• Practice of combining innovation, resourcefulness
and opportunity to critical social and environmental
challenges
• Person who establishes an enterprise with the aim of
solving social problems or effecting social change
SE..
• Anu:
– Next Drop improves access to water for residents
in urban India by a) providing residents access to
timely and reliable information about piped water
supply, and b) establishing a feedback loop to
inform better water management for the water
utility
Hugh Evans
• The Global Poverty Project, which is committed to
ending extreme poverty
re:char - Aramburu
• re:char uses biochar to help farmers in East Africa
fight climate change and grow more food. Biochar is
made from crop and animal waste; for a $60
investment, a farmer saves $200 annually, boosts
crop yield 26%, and reduced chemical fertilizer
consumption by 80%.
India
• MADHU PANDIT DASAV - Akshaya Patra Foundation-
the world’s largest mid day meal program, feeding
more than a million school children

• ANAND KUMAR - Super 30

• Saloni Malhotra – DesiCrew - Rural BPO

Technopreneur
• A person who sets up a business concerned with
computers or similar technology.
Netpreneur
• If you’re making any sort of money from the Internet
then you’re a Netpreneur
Ecopreneur
• The process of principles of entrepreneurship being
applied to create businesses that solve
environmental problems or operate sustainably.
Case 1
• Mr. Narayana murthy