This document outlines several theories of entrepreneurship and functions, including innovation, organization building, managerial skills, achievement motivation, and responding to social/economic structures. It also describes the phases of entrepreneurial development programs, including initial training, skill and motivation development during training, and post-training follow up. Finally, it discusses the development of entrepreneurship as an academic subject domain, including defining the field, developing systematic theories, and trends in entrepreneurial research.

1. I. 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
II. 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
III. 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
IV. ENTREPRENEURIAL BEHAVIOR AND MOTIVATION
A. NEED FOR ACHIEVEMENT
B. LOCUS OF CONTROL
C. RISK TAKING
D. VALUES
E. PROBLEM SOLVING STYLE AND INNOVATIVENESS
V. N-ACHIEVEMENT AND MANAGEMENT SUCCESS
VI. 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
VII. 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
VIII. ENTREPRENEURIAL INPUT

2. I. THEORIES OF ENTREPRENEURSHIP
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, Harbison’s entrepreneur is not an innovator but an
organization builder.
2. Entrepreneurs may simply be good leaders and excellent administrators.
3. Harbison’s definition of entrepreneurship lays more emphasis on the
managerial skills and creativity so far as organization is concerned.
C. ENTREPRENEURSHIP FUNCTION OF MANAGERIAL SKILL AND LEADERSHIP
Hoselitz- he stated that managerial skills and leadership are the important facts of
entrepreneurship, financial skills came in secondary in consideration.
Three typesof businessleadershipinthe analysis of economicdevelopmentof
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 makingunder uncertainty.

3. 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- itis mainly economic.Thestructureis notstatic,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 Programmeans a program designed to help a person in strengthen
his entrepreneurial motive in acquiringskillsand capabilities necessary for playinghis entrepreneurial
roleeffectively. Itis very necessary to promote his understandingto motives,motivation pattern, there
impacton behavior and entrepreneurial value.Aprogramwhich seeks to do this can qualify to becalled
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.

4. Objectives or Need of EDPs
 To formulate project
 To selectprojects/product
 To analyzethe environment
 To acquirethe basic managerial skills
 To understand the process and procedure of setting up of enterprise
 Enable to communicate clearly and effectively
 Develop a broad vision aboutthe 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 phaseincludes the activities and preparationsrequired to launch the trainingprogram.
The main activities are:
 Creation of infrastructurefor training
 Preparation of trainingsyllabus
 Tie up of guest faculty
 Arrangement for the inauguration of the program
 Designingtools and techniques for selectingthe 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 two essential components:
1) Identifying entrepreneurial traits: every participantmush 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:
Caseand family background,Age, Education,Size and Type of Family and workinghands.
b) Human resource factors: these are:
Achievement motivation,Risk takingwillingness,Influencemotivation and Personal Efficacy
2) Identification of enterprise: once an entrepreneur havingnecessary socio-personal and human
resources characteristicsisidentified,itis necessary to identify suitableenterpriseor project for him.

5. Training or Development Phase
During this phase the training program is implemented to develop motivation and skills among the
participants.The objective of this phaseis to bringdesirablechanges 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 thatis 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 theknowledge of technology, resources and other related entrepreneurial
knowledge?
 Is he skillful in choosingtheright project, mobilizingthe rightresources at the righttime?
Content of trainingprogram
The main training inputs are as follows:
i. Technical knowledge: once the entrepreneur selects a particular enterprisethe technical aspects of the
trade is essential. He needs to also knowthe economic aspects of the technology includingcosts and
benefits.
ii. Achievement Motivation Training: in order to develop human resources,development of achievement
motive is essential. Thepurpose of AMT is to develop the need to achieve, risk taking,initiativeand other
such behavioral traits.A motivational development program creates self-awareness and self-awareness
and self-confidenceamong the participants and enables them to think positively and realistically.
iii. Market Survey: the participantsshould begiven opportunity to actually conductmarketsurveys for their
chosen project.
iv. Managerial Skill: Once a participantis ableto start the enterprise he requires managerial skills.Itis
particularly essential for a small scaleenterprisewho cannot afford to employ specialists in differentareas
of management. The aimshould be to enable the participantto look at an enterprise i n its totality and to
develop overall managerial understanding.
v. Project Preparation: A lot of time needs to be devoted to the actual preparation of the project. Their
activeinvolvement in this risk would providethem necessary understandingand also ensuretheir
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
existingunits can also bereviewed. Some common activities in themonitoringand followup process areas follows:

6.  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 definingthe field and the scopeof its research.There is also thelack of unifyingframework that
distinguishes entrepreneurship from strategic management. Plaschka and Welsch argue that the development of
entrepreneurship as a disciplinewent through four fundamental phases beforeit was acknowledgeas an acceptable
academic subject.
Systematic Theory Development
The consensus surroundingan acceptabledefinition with regard to the acceptanceof 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 firststemmed from the work of
Turgot and Say and considered