V Sem. B.

Com


5.3 Entrepreneurship Development

Objectives: To enable the students to have a right perspective to start an enterprise.

Unit 1 : 14 hours
Entrepreneurship: Meaning and definition of entrepreneur and entrepreneurship : feature of
entrepreneurship quality of an entrepreneur function, importance of entrepreneur: Types of entrepreneurs:
Women Entrepreneurs and their problems and promotion.

Unit 2 : 08 hours
Entrepreneurial Motivation: Motivational factors compelling and facilitating factors; entrepreneurial
ambition; entrepreneurial traits and competencies; developing entrepreneurial competencies.

Unit 3 : 10 hours
Business planning: meaning feature and advantages of Business Planning Financial, Marketing, Human
resources, Technical and Social aspects of business plain; outline of complete business plan.

Unit 4 : 10 hours
Small Scale Industries: Meaning and Definition of Tiny / Ancillary / Cottage / Small Scale Industries /
Important features ownership patterns Product Range, Advantages, Problems and promoting of small scale
industries.

Unit 5 : 12 hours
Establishment of a new enterprise : Inception, licensing, clearance certificate from relevant agencies;
Financial and non-financial assistance from various agencies and institutions. Industrial Estates Type and
Role.

Unit 6 : 06 hours
Sickness in small scale units cause, consequences, preventions and remedies.










ENTREPRENEURIAL DEVELOPMENT

UNIT: 1 Entrepreneurship


An introduction:
In companies with less than 50 employees, 44% were satisfied. In companies with 50-999 employees,
31% are satisfied. Business with more than 1000, only 28% are satisfied.

The word entrepreneur' is derived from the French word 'Entreprendre' which
mean- to Undertake In the early 16th century the Frenchmen who organized and led
military expeditions were referred to as entrepreneurs. After 1700, the term was
applied to other types of adventures, mainly civil engineering like constructions of
roads, bridges, buildings, etc... The' word has an interesting history starting from
French language till date.

In economics and commerce, an entrepreneur is an economic leader who possesses the ability to
recognise opportunities for the successful introduction of new commodities, new techniques, and new
sources of supply, and to assemble the necessary plant and equipment, management and labour force, and
organise them into a running concern. Whatever the economic and political setup of a country, entrepre-
neurship is essential for economic development.

Considered as a risk bearer Ex. Farmer pays definite price for seeds, fertilizers, pesticides, labours etc but
not certain at which price he could sell his produce.

Definitions of an Entrepreneur
An individual who bears the risk of operating a business in the face of uncertainty about the future
conditions.
- Encyclopedia Britannica
He is the one who innovates, and introduces something new in the economy.
- Joseph A. Schumpeter
He shifts economic resources out of an area of lower and into an area of higher productivity and greater
yield.
- J. B. Say (French economist)
He searches for change, responds to it and exploits opportunities. Innovation is the specific tool of an
entrepreneur.
- Peter F. Drucker
Entrepreneurs are people who have the ability to see and evaluate business opportunities; together with the
necessary resources to take advantage of them; and to intimate appropriate action to ensure success.
- International Labour Organisation (ILO)

He is the one who is endowed with more than average capacities in the task of organising and coordinating
the various factors of production. He is a pioneer and captain of industry.
- Francis A. Walker
He is a critical factor in economic development and an integral part of economic transformation.
- William Diamond
Characteristics / Nature of Entrepreneur/ Qualities of an Entrepreneur:








Characteristics
Administrative skill Creativity Social responsibility Organizational skill
Good communication skill Business knowledge Innovation skill Clear objective
Self confidence


1. Business planning: Entrepreneurs should be equipped with skill and knowledge to-prepare th
business plan. A successful entrepreneur always follows the principles of management while planning
for hi! business which leads to success. He determines: objectives, strategies, policies and procedures,
rules, budget, and programs.
2. Equipped with soft skills: An Entrepreneur must possess the quality of communicating effectively in
written and oral communications. Good communication will help him in maintaining the good
relationship in both internal and external environment of a business. He must have the quality of
effective vision for growth, commitment to reach the goals. He should influence by means of
communication towards the achievement of the goals, by motivating, guiding, inspiring, assisting,' and
directing the members of the group.
3. Socially Responsible: The old concept of conducting business for profit motive alone has been
changed. The changing environment calls for a socially conscious entrepreneur who is fully aware and
contributor for the social welfare
4. Organizer: An entrepreneur has the responsibility to bring resources in order to meet the production
needs, keeping in mind of minimizing losses and reduction in cost of production. Mean while, he must
be able to select the right piece of land, the right human resources, the right financial sources and right
market opportunities in the right time. He has the job of procuring all these activities in a systematic
way.
5. Self-confident and Optimism: An entrepreneur must have faith in himself then only, he can trust
others. In order to face the challenges and risks he must capable and confident enough. In an expanded
business, delegation of authority is a must and only a self confident entrepreneur can delegate his
authority. Optimism means having positive attitude and approach. He must attempt any task with the
hope that he well succeeds which drives him towards success. In the absence of optimism, he will lose
interest-of conducting business.
6. Technical knowledge: An entrepreneur must have a reasonable level of technical knowledge.
Technical knowledge is the one ability that most people are able to acquire if they try hard enough
7. Human relation ability: The entrepreneur must have good relations with his customers, employees,
suppliers, creditors, etc. He must be aware of the needs and motivation of customers if he is to
adequately train his employees to maintain good customer relations. Such personality factors of
emotional stability, personal relations, social ability and tactfulness are important to become a
successful entrepreneur.
8. Innovator: Innovator is the specific instruments of entrepreneurship. He undertakes the activities
such as introduction of a new product, use of new method of production, opening a new market,
introduction of new marketing strategies, searching for new source of raw-material, new form of
organisation in order absorb potential customers.
9. Ability to find & explore opportunities: An entrepreneur must focus on opportunity rather than
sources, structure or strategy. They start with the opportunity and exhibit an innovation turn of mind
and convert the problems into viable opportunities. They play intellectually and anticipate carefully
how to achieve their goals in realizing on opportunity.




Others :
Visionary; creative; innovative
Adaptable; problem-solver
Persuasive; inspirational
Confident; determined; motivated; a self-believer; selfish
Competitive; ambitious; a risk-taker; one who perseveres
Honest
Disciplined; hard working
Organised; a planner; a decision-maker
Understanding
Leader; team worker
Networker
Taker of opportunities
Researcher; enquirer
Flexibility

Entrepreneurship
Meaning:
Entrepreneurship means the functions of creating something new, organizing and co-ordinating and
undertaking risk handling economic uncertainty.
Entrepreneurship is a dynamic process wherein the person 'Entrepreneur' applies his energy and
passion\towards the creation and implementation of new ideas & creativity solutions, at the same time
ensuring his efficiency for the promotion, of the organization and achievement of stated objectives of the
organization.
Entrepreneurship is the act and art of being an entrepreneur or one who
undertakes innovations or introducing new things, finance and business acumen, in an effort to transform
innovations into economic goods. This may result in new organizations or may be part of revitalizing
mature organizations in response to a perceived opportunity.

The capacity and willingness to develop, organize and manage a business venture along with any of
its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of
new businesses.

Features of Entrepreneurship:

Risk bearing and uncertainty
Decision making
Economic development
Creativity and innovation
A function of high achievement










Entrepreneur Entrepreneurship Enterprise
A Person An Process of action An object
Ambini Start up of business Reliance Company
Difference












Functions of entrepreneur

Innovation
Risk t aki ng:
Decision maker
Organisation and management
Business planner
Entrepreneur Entrepreneurship
1. Entrepreneur is a person. Entrepreneurship is a process.
2. He is an organiser. It is the organised form of initiative.
3. He is a risk taker. It is a risk taking activity.
4. He is a motivator. It is a process of motivation.
5. He is a innovator. It is a process of innovation.
6. He is a good planner.
It is the planning for successful performance.
7. He is a leader.
It is the crux (essential points of leadership).
8. He is a decision maker.
It is nothing but a decision making activity.
9. He is a creator. It is the process of creation.
10. He is an administrator, It is the administration.