I.

VIII.

THEORIES OF ENTREPRENEURSHIP
A. ENTREPRENEURSHIP FUNCTION OF INNOVATION
B. ENTREPRENEURSHIP AN ORGANIZATION BUILDING FUNCTION
C. ENTREPRENEURSHIP FUNCTION OF MANAGERIAL SKILL AND LEADERSHIP
D. ENTREPRENEURSHIP FUNCTION OF HIGH ACHIEVEMENT
E. ENTREPRENEURSHIP FUNCTION OF SOCIAL, POLTICAL AND ECOOMIC
STRUCTURE
F. ENTREPRENEURSHIP INPUT COMPLETING AND GAP FILLING FUNCTION
G. ENTREPRENEURSHIP FUNCTION OF GROUP LEVEL PATTERN
ENTREPRENEUREAL DEVELOPMENT PROGRAM
II.1
PHASES OF ENTREPRENEUREAL DEVELOPMENT PROGRAM
A. INITIAL OR PRE-TRAINING PROGRAM
B. TRAINING AND DEVELOPMENT PHASE
C. POST TRAINING OR FOLLOW-UP PHASE
ENTREPRENEURSHIP SUBJECT DOMAIN
III.1
SYSTEMATIC THEORY DVELOPMENT
A. MAINSTREAMS OF ENTREPRENEURIAL RESEARCH AND ITS DEVELOPMENT
B. ENTREPRENEURSHIP DEFINED
C. AUTHORITARIAN AND PROFESIONAL ORGANIZATIONS
D. A PROFESSIONAL CULTURE
E. ENTREPRENEURSHIP AS A CAREER
ENTREPRENEURIAL BEHAVIOR AND MOTIVATION
A. NEED FOR ACHIEVEMENT
B. LOCUS OF CONTROL
C. RISK TAKING
D. VALUES
E. PROBLEM SOLVING STYLE AND INNOVATIVENESS
N-ACHIEVEMENT AND MANAGEMENT SUCCESS
ENTREPRENEURIAL SUCCESS IN RURAL AREAS
VI.1 PUBLIC PRIVATE INSTITUTIONS PARTNERSHIP
A. INSTITUTIONS OF EDUCATION
B. INTER-FIRM INSTITUTIONS
VI.2
BUSINESS INCUBATORS
A. INDUSTRIAL PARKS
B. INSTITUTIONS FACILITATING NETWORKING
C. BUSINESS SUPPORT CENTERS
D. FINANCIAL INSTITUTIONS
E. PUBLIC-PRIVATE PARTNERSHIP
INNOVATION AND ENTREPRENEUR
VII.1 ENTREPRENEURIAL SUPPORT SYSTEM
VII.2 ONE-STOP SHOP TO NO WRONG DOOR
VII.3 WHAT DOES AN ENTREPRENEUR SUPPORT SYSTEM LIKE?
A. PROGRAM OFFERINGS
B. THE BENEFITS
ENTREPRENEURIAL INPUT

I.

THEORIES OF ENTREPRENEURSHIP

II.

III.

IV.

V.
VI.

VII.

ENTREPRENEURSHIP also refers to a process of action an entrepreneur

undertakes to establish his enterprise. It is the ability to discover, create or
invent opportunities and exploit them to the benefit of the society.
A. ENTREPRENEURSHIP FUNCTION OF INNOVATION

Joseph A. Shumpeter he put the human agent at the center of the

process of economic development and assigned a critical role to the
entrepreneurship in his theory of economic development.

The process of development can be generalized by five

different types of events:
1. It can be the outcome of the introduction of a new product in
the market.
2. It can be the result of a new market.
3. It may arise on account of a new market.
4. It may be the consequences of a new source of supply.
5. It may be due to the new organization of any industry.
B. ENTREPRENEURSHIP AN ORGANIZATION BUILDING FUNCTION
Fredrick Harbison- he stated that the organization building ability is
the most critical skill needed for the industrial development. According to
him entrepreneurship means skill to build an organization.

The main features of this theory:

1. Unlike Schumpeter, Harbisons entrepreneur is not an
innovator but an organization builder.
2. Entrepreneurs may simply be good leaders and excellent
administrators.
3. Harbisons definition of entrepreneurship lays more emphasis
on the managerial skills and creativity so far as organization
is concerned.
C. ENTREPRENEURSHIP
LEADERSHIP

FUNCTION

OF

MANAGERIAL

SKILL

AND

Hoselitz- he stated that managerial skills and leadership are the

important facts of entrepreneurship, financial skills came in
secondary in consideration.
Three types of business leadership in the analysis of
economic development of under-developed countries:
1. The merchant money lender type
2. The managerial type
3. The entrepreneur type
D. ENTREPRENEURSHIP FUNCTION OF HIGH ACHIEVEMENT
Mc Clelland- states that a business man who simply behaves in
traditional ways is not an entrepreneur. Entrepreneurial role appears to
call for decision making under uncertainty.
Two Characteristics of Entrepreneurship:
1. Doing things in a new and better way.
2. Decision making under uncertainty.
E. ENTREPRENEURSHIP FUNCTION OF SOCIAL, POLITICAL AND
ECONOMIC STRUCTURE
John Kunkel states that the industrial entrepreneurship depends upon
four structures which are found within a society or community:

1. Limitation Structure- the society limits specific activities to

members of particular subcultures.
2. Demand Structure- it is mainly economic. The structure is not
static, and changes with economic progress and government
policies. Demand structure can be improved by providing material
rewards.
3. Opportunities Structure this structure is necessary to increase the
probability of entrepreneurial activity. It constitutes the availability
of capital, management and technological skills, information
concerning production methods, labors and markets.
4. Labors Structure labor means men and is a function of several
variables.
F. ENTREPRENEURSHIP INPUT COMPLETING AND GAP FILLING
FUNCTION
It is the entrepreneurial function to make up the deficiencies or to
fill the gaps. These gaps arise because all inputs in the production function
cannot be marketed because some inputs like motivation, leadership etc.
are vague in their nature and whose inputs is indeterminate.
G. ENTREPRENEURSHIP FUNCTION OF GROUP LEVEL PATTERN
Frank W. Young he was reluctant to accept the entrepreneurial
characteristics at the individual level. According to him, instead of
individual, one must find cluster which may qualify itself as
entrepreneurial groups, as the group with higher differentiation have the
capacity to react.

II.

ENTREPRENUERAL DEVELOPMENT PROGRAM

Entrepreneurial Development Program means a program designed to help a
person in strengthen his entrepreneurial motive in acquiring skills and capabilities
necessary for playing his entrepreneurial role effectively. It is very necessary to
promote his understanding to motives, motivation pattern, there impact on
behavior and entrepreneurial value. A program which seeks to do this can qualify
to be called as EDP.
EDP is primarily concerned with developing and motivating entrepreneurial
talent and growing him to be an effective entrepreneur. An entrepreneur make
use of the factors of production to the fullest advantage of the society, create
innovations, generate employment, improve the standard of living of people,
develop backward areas etc. EDP has an important role to play in solving the
unemployment problem.

Objectives or Need of EDPs

To formulate project
To select projects/product
To analyze the environment
To acquire the basic managerial skills
To understand the process and procedure of setting up of enterprise
Enable to communicate clearly and effectively
Develop a broad vision about the business
Enable to take decisions
II.1 Phases of entrepreneurial development program
An entrepreneurial development program consists of 3 broad phases:
Initial or Pre-training phase
This phase includes the activities and preparations required to launch the training program.
The main activities are:
Creation of infrastructure for training
Preparation of training syllabus
Tie up of guest faculty
Arrangement for the inauguration of the program
Designing tools and techniques for selecting the trainees
Formation of selection committee
Publicity campaign for the program
Development of application form
Pre-potential survey of environmental opportunities
Thus, pre-training stage involves the identification and selection of potential
entrepreneurs and providing initial motivation to them.
Selection of potential entrepreneurs has to essential components:
1) Identifying entrepreneurial traits: every participant mush have a minimum
level of eligibility for developing and to an entrepreneur. Entrepreneurial includes
socio-personal and human resources characteristics:
a) Social personal characteristics: the most common socio-personal
characters are:
Case and family background, Age, Education, Size and Type of Family and
working hands.
b) Human resource factors: these are:
Achievement motivation, Risk taking willingness, Influence motivation and
Personal Efficacy
2) Identification of enterprise: once an entrepreneur having necessary sociopersonal and human resources characteristics is identified, it is necessary to
identify suitable enterprise or project for him.

Training or Development Phase

During this phase the training program is implemented to develop motivation and
skills among the participants. The objective of this phase is to bring desirable changes in the
behaviors of the trainees. The trainers have to judge how much, and how far the trainees
have moved in their entrepreneurial pursuits. A trainer should see the following changes in
the behavior of participants:

Is he attitudinally tuned very strongly towards his proposed project ideas?

Is he motivated to plunge for entrepreneurial venture and risk that is
expected of an entrepreneur?
Is there any change in his entrepreneurial outlook, role and skill?
How should he behave an entrepreneur?
What kind of entrepreneurial behaviors does the trainee lack?
Does he possess the knowledge of technology, resources and other related
entrepreneurial knowledge?
Is he skillful in choosing the right project, mobilizing the right resources at the
right time?

Content of training program

The main training inputs are as follows:
i.

ii.

iii.
iv.

v.

Technical knowledge: once the entrepreneur selects a particular enterprise the

technical aspects of the trade is essential. He needs to also know the economic
aspects of the technology including costs and benefits.
Achievement Motivation Training: in order to develop human resources,
development of achievement motive is essential. The purpose of AMT is to develop
the need to achieve, risk taking, initiative and other such behavioral traits. A
motivational development program creates self-awareness and self-awareness and
self-confidence among the participants and enables them to think positively and
realistically.
Market Survey: the participants should be given opportunity to actually conduct
market surveys for their chosen project.
Managerial Skill: Once a participant is able to start the enterprise he requires
managerial skills. It is particularly essential for a small scale enterprise who cannot
afford to employ specialists in different areas of management. The aim should be to
enable the participant to look at an enterprise in its totality and to develop overall
managerial understanding.
Project Preparation: A lot of time needs to be devoted to the actual preparation of
the project. Their active involvement in this risk would provide them necessary
understanding and also ensure their personal commitment.

Post Training or Follow-up Phase

This phase involves assessment to judge how far the objectives of the program have
been achieved. Monitoring and follow ups reveals drawbacks in the earlier phases and
guidelines for framing the future policy. In this phase infrastructural support, counseling and
assistance in establishing new enterprise and in developing the existing units can also be
reviewed. Some common activities in the monitoring and follow up process are as follows:

Preparing and maintaining a separate file for each trainee.

A history card indicating the bio-date of each entrepreneur and the work done
by him.
Keeping in touch with every entrepreneur through letters.
Passing the desired information to the entrepreneur will in time.
Visiting every entrepreneur periodically.
Follow up meeting and a follow up register to ensure the success of the
entrepreneurial development program.

ENTREPRENEURSHIP SUBJECT DOMAIN

III.A Entrepreneurship subject Domain
Entrepreneurship is a relatively young academic field in the early stages of its
developmental cycle. This creates problems in defining the field and the scope of its
research. There is also the lack of unifying framework that distinguishes entrepreneurship
from strategic management. Plaschka and Welsch argue that the development of
entrepreneurship as a discipline went through four fundamental phases before it was
acknowledge as an acceptable academic subject.

Systematic Theory Development

The consensus surrounding an acceptable definition with regard to the
acceptance of the fact that entrepreneurs can be trained, the movement towards more
sophisticated research methods and statistical techniques, a move towards the usage of
bigger samples.
Mainstreams of Entrepreneurial Research and its Development
Two basic trends can be observed in the field of entrepreneurship. The first
stemmed from the work of Turgot and Say and considered