Entrepreneurship

Presented By :
Dr. Raj Kumar Singh

Professor & Chairperson
Centre for Entrepreneurship ,
Innovation & Skill Development
(CEISD)
School of Management Sciences
Varanasi
Concept of Entrepreneurship
 Entrepreneurship is the process that involves all actions
an entrepreneur undertakes to establish an enterprise
to give reality to his business idea. It’s a creative and
innovative response to the environment.
 Entrepreneurship is a composite skill, the resultant of a
mix of many qualities and traits. These includes
imagination readiness to take risks, ability to bring
together and put to user other factors of production,
capital, labour , land , as also intangible factors such as
the ability to mobilize scientific and technological
advances.
Prof.(Dr) Raj Kumar Singh , Professor & Chairperson, Centre For Entrepreneurship, Innovation
& Skill Development (CEISD),
SMS, Varanasi 2
Economic Approach Theory
 This view point gives emphasis that Entrepreneurship is
basically concerned with the different economic
activities and meant for the economic enrichment and
growth where the economic conditions are most
favourable. Here the Economic Incentives are the main
drive for the entrepreneurial activities.
 Entrepreneurship is the process of initiating a new
venture , organizing the resources it requires and
assuming the risks it entails. Thus the word
‘Entrepreneurship’ is derived from the 17th century
French word “Entreprendre” which refers to the
individuals who were undertook the risk of new
enterprise. Prof.(Dr) Raj Kumar Singh , Professor &
Chairperson, Centre For Entrepreneurship,
Innovation & Skill Development (CEISD), SMS,
Varanasi 3
 Richard Cantillon (1755) : Entrepreneur is a person who
pays a certain price for a product resources while
consequently assuming the risk of enterprise.
 Adam Smith (1776) : Entrepreneur is an individual who
undertook the formation of an organization for
commercial purpose with unusual foresight who could
recognize potential demand for goods and services
reacting to economic change , becoming the economic
agents who transformed demand into supply.
 J. B. Say (1803) : Entrepreneur is one who possessed
certain arts and skills of creating new economic
enterprises, yet a person who had exceptional insight
into society’s need and was able to fulfil them.
Entrepreneur is the co-ordinator and organizer of
resources to design a business enterprise.
Prof.(Dr) Raj Kumar Singh , Professor &
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 Carl Menger (1871) : Entrepreneur is the change agent who
transforms resources who transforms resources into useful
goods and services often creating the circumstances that
leads to industrial growth .
 Joseph Schumpeter (1934) : Entrepreneurs is a force of
creative destruction whereby established ways to get the
things done. It is a process and entrepreneurs as innovators
who use the process to shatter the status quo through the
new combinations of resources and new methods of
commerce.
 Peter F. Drucker (1985) : Entrepreneurship occurs when
resources are redirected to progressive opportunities not
used to ensure administrative efficiency .The redirection of
resources distinguishes the entrepreneurial role from that of
the traditional Prof.(Dr)
management role.
Raj Kumar Singh , Professor &
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Sociological Approach Theory
 Sociologists consider the entrepreneurship as
a process of role performance . Entrepreneurs
are expected to be governed by the wishes of
the society , customs, ethics, values etc.
 Entrepreneurship is inhibited by the social
system , which denies opportunities for the
creative facilities . The forces of customs ,
values, the rigidity of status, distinctness of
new ideas and of the exercise of intellectual
curiosity , combine to create an atmosphere
inimical to experiment and innovation.
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Sociologists argue that entrepreneurship is most likely to
emerge under a specific social culture. According to
them social sanctions, cultural values and role
expectations are responsible for the emergence of
entrepreneurship . Socio - Cultural value channel
economic action that gives birth to entrepreneurship. As
per the Sociological Theory the concept of innovation
and its corollary development embraces five functions:
 Introduction of a new good
 Introduction of a new method of production
 Opening of New Market
 Conquest of new source of supply of raw materials and
 Carrying out of a new organization of any industry
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 Thomas Cocharan (1965) : Entrepreneurs represents
society’s model personality. Their performance depends
upon their own attitude towards their occupations , the
role expectations of sanctioning groups and the
occupational requirements of the job. Society’s values
are the most important determinant of the attitude and
role expectations.
 Peter Marris (1967) : Entrepreneurship requires to
assemble or reassemble from what is available very
concrete kind of imagination to see what others have
missed , sensitivity to business and social environment
rest in industrial development and entrepreneurial
courage . These are the important factors that make an
entrepreneur Prof.(Dr)
. Raj Kumar Singh , Professor &
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Psychological Approach Theory
According to the Psychologists, entrepreneurship is
most likely to emerge when a society has sufficient
supply of individuals possessing particular psychological
characteristics. The main characteristics which motivate
and drive people towards entrepreneurial activities :
 An urge to do something
 To fulfill a dream
 An institutional capacity to see things in a new way
(Vision)
 Energy of will and mind to overcome fixed habits of
thoughts
 The capacity to withstand social opposition
 The high needProf.(Dr)
for Raj
achievement
Kumar Singh , Professor &
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 David C McClelland (1961) : It is the high need for
achievement which drives people towards
entrepreneurial activities . Achievement motive is
basically measured through the child rearing practices
which stresses standards of excellence , material
warmth, self –reliance ,training and low father
dominance . Individuals with high achievement motive
tend to take keen interest in situations of high risk ,
desire for responsibility and desire for a concrete
measure of task performance.
 E. E. Hagen ( 1964) : Withdrawal of the status respect as
the trigger mechanism for changes in personality
formation . Status withdrawal is the perception on the
part of members of some social group in the society
whom they respect and whose esteem they value.
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Anthropological Theory
This theory says that entrepreneurship has essentially to

do with connecting two spheres in the society between
which there exists a difference in value, something
which is cheap in one sphere, may be expensive in
another sphere. Entrepreneurship a bridge which tries
to integrate diversified values and minimize the huge
discrepancy in value.

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Libenstein’s X-Efficiency Theory
X-Efficiency is basically the degree of

inefficiency in the use of the resources
within the firm ; it measures the extent
to which the firm fails to realize its
productive potential.

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Dynamic Entrepreneurship Innovation Theory
As per this theory the Entrepreneurs are the

catalysts that disrupts the stationary circular flow of
the economy and thereby initiates and sustains the
process of development.

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Harward School Theory
Entrepreneurship comprises any

purposeful activity that intimate,
maintain or develop a profit – oriented
business in interaction with the internal
situation of the business or with the
economic, political and social
circumstances surrounding the business.
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Theory of High Achievement
Entrepreneurship is doing things in a

new and better way and decision
making under uncertainty with stress on
the need for achievement or
achievement orientation as the most
directly relevant factor for explaining
economic behavior.
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Max Weber’s
Entrepreneurial energies are

generated by the adoption of
exogenously – supplied religious
belief.

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Theory of Cultural Value
On the process of economic

development, entrepreneurs are not
seen as being deviant or super normal
individuals but rather as representing
society’s modal personality molded by
the inherent culture.

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Definitions of Entrepreneurship
Higgins B.
Entrepreneurship is meant to the function of seeking
investment and production opportunity , organizing
and enterprise to undertake a new production
process, raising capital . hiring labour , arranging the
supply of raw materials , finding site, introducing a
new technique and commodities , discovering new
sources of raw materials and selecting top mangers of
day to day operations of the enterprise .
This definition deals with the functions of an
entrepreneur .These functions included handling
economic activity, undertaking risk, creating some
thing new and organizing and coordinating resources.
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John Kaso and Howard Stavenson
Entrepreneurship is an attempt to create value
through the recognition of business opportunity,
the management of risk taking appropriate to the
opportunity and through the communicative and
managerial skills to mobilize human , financial
and material resources necessary to bring a
project to complete.
In this definition , entrepreneurship is treated as
a dynamic and risky process. It incorporates the
capital , technology and human talent .
Entrepreneurial process itself is the result of art
and science.
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Schumpeter Joseph .A.
Entrepreneurship as defined essentially consists
in doing things that are not generally done in the
ordinary course of business routine.
In this definition , Schmpeter emphasized on the

innovation process to be undertaken by the
Entrepreneur. Entrepreneur is required to gather
resources , organize talent and provide leadership
to make the business a commercial success.

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Ronstadt. Robert
Entrepreneurship is the dynamic process of
creating incremental wealth. This wealth is
created by individuals who assume the major risk
in terms of equity , time and or career
commitment of providing value for some product
or service. The product or service itself may or
may not be new or unique but value must
somehow be infused by the entrepreneur by
securing and allocating the necessary skills and
resources.
This definition identifies the creation of value
creation is a risky process but entrepreneurs has
to reduce the risks intern of equity and time.
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Drucker, Peter, F.
Entrepreneurship is a systematic innovation
which consists of the purposeful and organized
search for changes and in a systematic analysis of
the opportunities such changes might offer for
economic and social innovation.
Entrepreneurship occurs when resources are
redirected to progressive opportunities not used
to ensure administrative efficiency.
Entrepreneurship is not natural , It is not
creative, It is a work. Entrepreneurship requires
Entrepreneurial Management. Specifically,
entrepreneurial management requires policies
and practices in four major areas.
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Types of Entrepreneurship
Opportunity Based Entrepreneurship :
An entrepreneur perceives a business opportunity
and chooses to pursue this as an active career
choice.
Necessity based Entrepreneurship:

An entrepreneur is left with no other viable
option to earn a living, It is not the choice but
compulsion , which makes him/her choose
entrepreneurship as a career.
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Phases of Entrepreneurship
 Initial Phase :
Creation of awareness about the entrepreneurial
opportunities based on survey
 Development of Phase :
Implementation of training programmes to
develop motivation and management skills.
 Support Phase :
Infrastructure support of counseling and
assisting to establish a new enterprise and to
develop existing units.
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Nature & Characteristics of Entrepreneurship
Entrepreneurship is expected to identify the
environmental changes as an opportunity and
uses the factors of production to produce new
goods and services. They are motivated to
 Initiative and Promotion of New Establishment

 Perceiving opportunities for profitable
investment
 Risk bearing
 Decision Maker
 Introduction of Innovation
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 Provision of Capital
 Coordination of different factors of production
 The desire to found a private commercial
kingdom
 The will to conquer and prove his superiority and
 The joy of creating, getting things done or simply
of exercising one’s energy and ingenuity
 Industry oriented effort
 Performing social function
 Evolving out of coordination of various matters.
 Accelerating of economic development
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 Re-direction of resources to progressive
opportunity
 Dynamism & Rapid Changes
 Continuity
 Individuality
 Recognized as pioneer of economic development
activity
 Purposeful Activity
 Creative Response to environment
 Gap Filling Function
 Optimum use of resources
 Information technology and communication
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 R& D Technology
 Function of achievement
 Group leadership and managerial skills
 Organisation skills
 Function of Economical, Social and Political Structure
 Function of High Achievement
 Organisation Building Function
 Function of Managerial Skills And Leadership
 Function of Status Withdrawal
 Function of Social, Political And Economic Structure

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Need of Entrepreneurship
 To raises productivity through commercialization
of new technical and other forms of innovations,
inventions and products.
 To promote Capital Formation
 To create Employment Opportunities through
establishment of new enterprises
 To do Balance Regional Development
 To reduce the concentration of economic power
 To do the equitable redistribution of wealth,
income and even political power
 To do the effective resource mobilization and
utilization of capital and skill
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 To do the crucial role in the restructuring and
transforming economy
 To do the backward and forward linkages for the
economic development
 To Promote the Export & Import
 To Facilitates the transfer of technologies
 To Facilitates the proper utilization of resources
 To Improves the standards of living
 To Facilitates a balanced economic development
 To bring dynamism in industries by launching
innovative products and services
 To create new market and facilitates expansion
into international markets.
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Function of Entrepreneurship
 Economic Growth Driver
 Balance Regional Development
 Employment Creation
 Capital Generation
 Export & Important Promotion
 Promotion of Secondary
Entrepreneurship
 Skill Development
 Intrapreneurship Development
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 Gives platform to the Innovation,
Invention , New Product / Service
Development
 Distribution of Wealth
 Human Resource Development
 Natural Resource Management
 Value Creation
 Foreign Exchange Generation
 Technological development and transfer
 National Integrity and Stability
 Social Harmony
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Risk
The risk is the condition of not knowing the
outcome of an activity or decision. Nevertheless,
risk is capable of being evaluated for relative
probabilities. It is variability of outcomes (or
returns). If there is no risk, return is certain. A
business organization is working under risk free
environment would continue to expand forever,
because a negative outcome could not occur .
Therefore , risk is a limit to ever expanding
entrepreneurship. That is why entrepreneur
needs risk bearing capabilities. Risk bearing
means provision for capital in order to enable the
entrepreneurs to establish and operate the
business.
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A businessman may have to bear
many types of risks such as :
 Loss of business assets

 Loss of income
 Liability towards the third parties

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B.O Wheeler
 Risk is the chance of loss. It is the
possibility of some adverse occurrence.
 There is always a possibility of loss in

business even though the businessman
exposed to it may nor beware of it. The
possibility of loss need not be
measurable, but it must exist.
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The following important points should
be noted with regard to risk :
 There is existence of possibility of loss ,

even though the individual or group of
individuals exposed to the possibility of
loss may not be aware of it.
 The possibility of loss need not to be

measurable , but it must exists.
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Some of the important forms of risks which creates
problems for the entrepreneurs are as follows
 Production Risk :
Breakdown of Machinery, Poor Weather,
Inefficient Labour, Use of Faulty Material, Faulty
Tools, Improper Quality Control
 Market Risk :
Misjudge the want of consumer , loss due to bad
debt, ineffective advertisement, loss due to
improper trade channel.

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 Financial Risks :
Reduce Sale, Cash Flow, Repayment of Debt,
Bankruptcy , Working Capital , International
Price of Dollar & Rupee
 Destruction of Property :
By Fire, Windstorm
 Social Risk :
Strike, Riots, Civil Commotion, Political Unrest
 Change in Technology and Production

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Nature of Business Risks
 Uncertainty is the main cause of risk

 Risk is an essential part of business
 Profit is the reward for undertaking
risks
 Degree of risk depends upon the nature
of business
 Degree of risk varies according to time
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Causes of Business Risks
Natural Causes
Human Causes
Economic Causes
Physical Causes
Macroeconomic Causes

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Types of Risks
 Financial and Non-financial Risks
 Static and Dynamic Risks
 Pure and Speculative Risks
 Insurable and Non Insurable Risks

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Risk Management
Identification of Risks
Evaluation of Risks
Decision about risk handling
devices
Executing the decisions
Aftermath and evaluation
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Entrepreneur
 Derived from French Word “Enterprendre” means “To
Undertake”
 It was applied to leaders of military expeditions in the early 16th
Century
 In 1790 AD it was used in the context of other types like
Architecture and Contractors of public work
 Oxford English Dictionary in 1887 states that entrepreneur
simply is the director or manager of a public musical institutions,
one who puts entertainments especially musical performance
 In 1933, the word entrepreneur had a place in the business and
would mean “one who takes an enterprise especially a contractor
acting as intermediary between capital and labour”
 Then the concept was further upgraded as Entrepreneurship is an
undertaking of enterprise and one who coordinates capital and
labour for the purpose of production is an entrepreneur.
 Prof.(Dr) Raj Kumar Singh , Professor &
Emergence of this becomes the Entrepreneurial Class
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Enterprise
Entrepreneurial activity, especially when
accompanied by initiative and resourcefulness
through an organization or economic system
where goods and services are exchanged for
one another or for money. Every business
requires some form of investment and enough
customers to whom its output can be sold on a
consistent basis in order to make a profit.
Enterprise can be privately owned, not-for-
profit or state-owned.
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The term “enterprise” has two common
meanings.
 Firstly, an enterprise is simply another

name for a business.
 Secondly, and perhaps more
importantly, the word enterprise
describes the actions of someone who
shows some initiative by taking a risk by
setting up, investing in and running a
business.Prof.(Dr) Raj Kumar Singh , Professor &
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Look again at two key words above – initiative and risk.
 A person who takes the initiative is someone who “makes
things happen”. He or she tends to be decisive. A business
opportunity is identified and the person does something
about it. Showing initiative is about taking decisions and
being bold – not everyone is like that!
 Risk-taking is slightly different. In business there is no
such thing as a “sure fire bet”. All business investments
carry an element of risk – which is the chance or
probability that things will go wrong. At the worst, the risk
of an enterprise might mean the person making the
investment loses all his/her money or becomes personally
liable for the debts of the business.
 The trick is to take calculated risks, and to ensure that the
likely returns from taking a risk are enough to make the
gamble worthwhile.
 Someone who shows enterprise is an “entrepreneur”.
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Journey of Term “ Entrepreneur”
Period Connotations & Meaning
Indus Valley Civilization No Connotation
Ancient India No Connotation
Early 16th Century Referred To Persons Engaged

In The Military Expeditions
Early 17th Century Extended To Persons engaged In

Engineering Activities such as Construction
and Fortifications
18th Century Persons Engaged In The Economic Aspect of

Human Activity
In Early 18th CenturyProf.(Dr) RajThe Term

Kumar Singh , “ Entrepreneur”
Professor & was given by “Richard
Cantillon” of France
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Definitions of Entrepreneurs
 F.H.Knight :
Entrepreneur are a specialized group of person
who bear risks and deals with uncertainty.
 J.S. Mill :
Organizer who was paid for his non-manual type
of work
 Leon Walrus :
Entrepreneur is the coordinator of basic factors of
production and act as fourth factor of production
who combines other factors such as land, labour
and capital. Prof.(Dr) Raj Kumar Singh , Professor &
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 Joseph Schumpeter :
The entrepreneurs in an advanced economy is an
individual who introduces something in the
economy-a method of production not yet tested
by experience in the branch of manufacturer
concerned , a product with which consumers are
not yet familiar, a new source of raw material or of
new markets .
 Peter F. Drucker :
One who always searches for the changes ,
respond to it and exploit it as an opportunity.
Innovation is the specific tools of entrepreneurs,
the means by which they exploit changes as an
opportunity for a different business or a different
service. Prof.(Dr) Raj Kumar Singh , Professor &
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 Walker:
Entrepreneur is one who is endowed with more
than average capacities in the taks of organizing
and coordinating the various other factors of
production
 Robert D. Hisrich :
The person who is going to establish a successful
new business venture must also be a visionary
leader – a person who dreams great dreams
 Encyclopedia Americana :
An entrepreneur is a businessman who assumes
the risk of bringing together the means of
production including capital, labour and material
and receives his reward in profit from the market
value of his product.
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 International Labour Organisation :
Entrepreneur 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.
 Cantillon :
Entrepreneur is the agent who buys means of
production at certain prices in order to combine them
into a product that he is going to sell at prices that are
uncertain at the moment at which he commits himself
to his costs. The entrepreneur function is of risk
taking and uncertainty bearing and who act as a
dealer who purchases the means of production for
combining them into marketable products.
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 J.B. Say :
The entrepreneur is the economic agent who

unites all means of production, the labour force
of the one and the capital or the land of the others
and who finds in the value of products his results
from their employment reconstitution of the
entire capital that he utilizes and value of the
wages, the interest and the rent which he pays as
well as profits belonging to himself.

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Characteristics of Entrepreneurs
 Visionary
 Change Agent
 Self Confidence
 Energy Level
 Calculated Risk Taker
 Need for Achievement
 Risk for Ambiguity
 Locus of Control
 Desire to create one’s own Destiny
 Desire to make a difference
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 Desire to reach one’s full potential
 Desire to contribute to society
 To do what one’s enjoy
 Organizational Ability
 Out of Box Thinker
 Creativity
 Innovator
 Independence
 Team Builder
 Integrity and Reliability
 Initiative and Responsibility
 Tolerance for Failure
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Qualities of Entrepreneurs
 Visionary
 Dare To Dream
 Hard & Efficient Worker
 Highly Optimistic
 Never Let Success Go To Head
 Independence
 Foresight
 Intelligent
 Emotional Stability
 Good Organiser
 Creative
 Innovative
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 Sound Knowledge
 Preservance through Continuous Effort
 Team Spirit
 Passionate
 Conceptually Strong
 Set Clear Goals
 Curiosity For Learning
 Information Seeker
 Strive For Excellence
 Build Self Confidence
 Looking For Opportunity
 Futuristic Planner
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 Futuristic Planner
 Willingness to Change
 Quality Conscious
 Problem Solving Approach
 Persuasiveness
 Effective Monitoring
 Employee Welfare Orientation
 Effective Strategists
 Assertive Behaviour
 Human Relation Ability
 Motivator
 Initiator Prof.(Dr) Raj Kumar Singh , Professor &
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 Risk Taker
 Spirit of Accepting The Challenge
 Sense of Conviction
 Resourcefulness
 Ability to Manage Failure
 Build Core Competencies & Excellence
 Work Ethics
 Building Strong Organisational DNA
 Professional Integrity
 Professional Honesty
 Flexible Approach
 Professional Maturity
 Be a Role Model
 Administrative Ability
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Functions of an Entrepreneur
 Innovation
 Risk Taking
 Organisation and Management
 Business Decisions
 Perception and Forecasting of market
opportunities
 Gaining command over scarce resources
 Purchasing inputs
 Marketing the products
 Dealing with the officials
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 Managing human resource
 Managing Customers and Suppliers relations
 Managing Finance
 Managing Production
 Acquiring and overseeing the assembly of the
factory
 Industrial Engineering
 Upgrading Process and Product
 Introducing new production techniques and
products
 Leadership
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Managerial Function
 Planning
 Organizing
 Staffing
 Directing
 Controlling
 Strategic Management
 An Eye on Competitors
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Promotional Function :
 Identification and Selection of Business Idea
 Preparation of Business Plan or Project Report
 Arrangement for Finance
Commercial Functions :
 Production/Manufacturing
 Marketing
 Accounting
 Management of Raw Material and Machines

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Types of Entrepreneurs
 Innovative Entrepreneur :
They are characterized by effective assemblage of
information and the analysis of results originated
from different sets of combinations. They raise money
to launch a new innovative enterprise , assemble the
various innovative factors, select top executives and
set the organization operational in an innovative
manner.
 Imitating Entrepreneur :
These entrepreneurs are those entrepreneurs who are
unable to innovate the changes themselves but they
are capable enough to imitate the techniques and
technology innovated by the innovating
entrepreneurs.
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 Fabian Entrepreneur :
These entrepreneurs are shy and lazy in their working.
Their dealings are guided by the customs, religion,
tradition and past practices. Fabian Entrepreneurs are
always conscious in their dealings and believe in
skepticism in initiating any change.
 Drone Entrepreneurs :
These entrepreneurs are those who are due to their rigid
approach not inclined to bring changes in their production
system as demanded by the change in consumer
preferences , technological innovations, economic and
social behavior of the prospective customers. Market
always provided opportunities to the entrepreneurs but
this type of entrepreneurs generally fail to use these
opportunities in profitable ways.
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Classification of Entrepreneurs
According to type of Business :
 Trading Entrepreneurs
 Industrial Entrepreneurs
 Corporate Entrepreneurs
 Agricultural Entrepreneurs
 Retail Entrepreneurs
 Service Entrepreneurs
 Re-engineering Entrepreneurs
 Service Entrepreneurs
 Healthcare Entrepreneurs
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According to use of Technology
 Technical Entrepreneurs
 Non-Technical Entrepreneurs
 High-Tech Entrepreneurs
 Low-Tech Entrepreneurs
 BPO
 KPO
 LPO
 IT Entrepreneurs
 E-Entrepreneurs
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According to Motivation
 Spontaneous Entrepreneurs
 Induced Entrepreneurs
 Motivated Entrepreneurs
 Forced Entrepreneurs
 Accidental Entrepreneurs
According to the growth
 Growth Entrepreneur
 Super-growth Entrepreneur
 Aspiring Entrepreneur
 Lifestyle Entrepreneur
 Serial Entrepreneurs
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According to stage of development
 First Generation
 Second Generation
 Third Generation
 Modern Entrepreneurs
 Inherited Entrepreneurs
 Classical Entrepreneurs
According to Area
 Urban
 Rural
 Global
 National
 Regional
 Local Prof.(Dr) Raj Kumar Singh , Professor &
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According to Sector
 Engineering
 Agriculture
 Handicraft
 Khadi
 Handloom
 Services
 Automobile
 Pharmaceutical
 FMCG

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 Capital Goods
 Telecommunication
 IT & ITES
 Education
 Healthcare
 Hospitality
 Banking
 Microfinance
 Logistic
 Social Entrepreneurs
 Export etc.
Varanasi 70
According to Organisation
 Sole Proprietary
 Partnership
 Limited Liability Partnership
 Private Limited
 Public Limited
 NGOs
 Non-Profit Organisation
 Government Organisation
 Public
 Public Sector Organisation
 Joint Entrepreneurs
 Intrapreneurs
Varanasi 71
According to Age and Gender
 Man
 Women
 Young
 Old
 Middle Aged
According to size of Enterprise
 Cottage Entrepreneurs
 Micro Entrepreneurs
 Small Scale Entrepreneur
 Medium Entrepreneurs
 Large Entrepreneurs
Varanasi 72
Emergence of Entrepreneurial Class

Varanasi 73
Difference between Entrepreneurship & Entrepreneur
Entrepreneur Entrepreneurship
(Refer To A Person) (Refer To A Process)
Entrepreneur is an administrator Entrepreneurship is an

administration
Risk Bearer Risk bearing activity

Innovator Process of Innovation
He combines factors of production Process of use of factors of
production
Initiator Process of taking initiative

Leader Action of Leadership
Planner Planning
Programmer Action
Varanasi 74
Entrepreneur Entrepreneurship
(Refer To A Person) (Refer To A Process)
Communicator Communication
Creator Creation
Visualizer Vision
Technocrat Technology
Decision Maker Decision
Risk Taker Risk Taking
Motivator Motivation
Varanasi 75
Difference between Entrepreneur & Manager
Bases of Entrepreneurs Professional Managers
Difference
Motive Start a venture by setting up Render Services in already
an Enterprise for his established enterprise
personal gratification
Status Owner of the Enterprise Employee of the Enterprise

Risk Bearing Bear All Risk & Uncertainty Does Not Bear All Any Risk
Rewards In form of profit which is In form of salary which is
uncertain certain & fixed
Innovations Act as a Change Agent Execute The Plan & Translate
Ideas into Practices
Qualifications Not Specifically Needed Specifically Needed
Time Long Horizon Short Term Basis
Orientation
Varanasi 76
Bases of Entrepreneurs Professional Managers
Difference
Failure & Mistakes Treat as Learning Experience Try To Avoid Mistakes
Decision Free To Take Decision Depends On Owners
Who They Serves Self & Customers Others
Attitude Towards May Change The System Protect & Nurture The
Systems System
Relations With Transaction & Deal Making Through Hierarchy

Others
Attention On Technology & Market On Inside of The

Organisation
Action Full Responsibility Delegate Actions

Varanasi 77
Entrepreneurship & Environment
Micro Environment
Macro Environment
SWOT
Varanasi 78
PESTEL
Political Environment
Political Philosophy
Political Atmosphere
Quality of Leadership

Varanasi 79
Economic Environment
 Economic Resources
 Economic Condition
 Economic Policies
 Labour Policies
 Trade Policies
 Tariff Policies
 Incentives
 Subsidies Prof.(Dr) Raj Kumar Singh , Professor &
Varanasi 80
Social Environment
 Social Structure
 Social Values & Conventions
 Consumer’s Opinion
 Labour Motives
Technological Environment
 Better utilization of production resources
 Increase in Competitiveness
 Risk Efficiency
 Improvement in Productivity
 Improvement in Profitability
Varanasi 81
Environmental Issues
 Pollution
 Fuel Efficiency
 Sustainability
 Water Conservation
 Forestry
Legal Environment
 Determining Areas and Licensing
 Regulation of Entrepreneurial Function
 Industrial Relations
 Labour Laws
 Litigations Solving Mechanism
Varanasi 82
International Environment
Cultural Environment

Varanasi 83
Role of Entrepreneurship in Economic Development
 Promote Capital Formation
 Employment
 Balance Regional Development
 Reduce the concentration of economic power
 Equitable redistribution of wealth, income and
even political power
 Effective resource mobilization and utilization of
capital and skill
 Backward and forward linkages for the economic
development
 Promote Export & Import
Varanasi 84
Factors affecting Entrepreneurship
Economic Factors
 Capital
 Labour
 Raw Material
 Market

Varanasi 85
Non- Economic Factors
Social Conditions
 Social Legitimacy of Entrepreneurship
 Social Mobility
 Marginality
 Security
Psychological Factors
 Need Achievements
 Withdrawal of Status Respect
Varanasi 86
It gives rise to four possible reactions and create
four different personality types
 Retreatist :
One who continuous to work in a society but
remains different to his work and position.
 Ritualist :
One who adopts a kind of defensive behavior and
acts in the way accepted and approved in his
society but no hopes for improving his position.
 Reformist :
A person who are initiator of a rebellion attitude
and attempts to establish a new society.
Varanasi 87
Government Factors
Government through its Action or Failure also

does influence both the Economic & Non-
Economic factors for Entrepreneurship

Varanasi 88
Problems of Entrepreneurship
 Raw Material
 Finance
 Inadequate availability of credit facility
 Marketing
 Lack of Brand Support
 Lack of organized market channel
 Imperfect knowledge of Market Condition
 Unorganised nature of operation
 Human Resource
Varanasi 89
 Deficient in managerial and technical skill
 Under utilization of capacity
 Technological upgradation
 Govt. Policy
 Beaurocracy
 Improper flow of knowledge
 Constraints of infrastructure facility
 Power Crisis
 Stiff Competition from big player and absence
of level playing field

Varanasi 90

Entrepreneurship

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Presented By :

Dr. Raj Kumar Singh

This theory says that entrepreneurship has essentially to

Prof.(Dr) Raj Kumar Singh , Professor &

X-Efficiency is basically the degree of

Prof.(Dr) Raj Kumar Singh , Professor &

As per this theory the Entrepreneurs are the

Prof.(Dr) Raj Kumar Singh , Professor &