Unit1 Entrepreneurship [AKTU SYLLABUS]

Entrepreneurship
UNIT - 1
Amar Preet Singh
Academic Experience: 6+ years
1
Amar Preet Singh AJas Education
Project Management &
Entrepreneurship [KHU-802]
Typically based of AKTU Syllabus
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https://bit.ly/Amarpreetsingh

2
Evaluation Scheme

• UNIT-1
• Entrepreneurship:
• Need
• Scope
• Entrepreneurial Competencies & Traits
• Factors Affecting Entrepreneurial Development
• Entrepreneurial Motivation (Mc Clellend’s Achievement Motivation
Theory)
• Conceptual Model Of Entrepreneurship
• Entrepreneur Vs. Intrapreneur
• Classification Of Entrepreneurs;
• Entrepreneurial Development Programmes
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Subject Syllabus

• UNIT-2
• Entrepreneurial Idea And Innovation: Introduction To Innovation,
Entrepreneurial Idea Generation And Identifying Business
Opportunities, Management Skills For Entrepreneurs And Managing
For Value Creation, Creating And Sustaining Enterprising Model &
Organizational Effectiveness
• UNIT-3
• Project Management: Project management: meaning, scope &
importance, role of project manager; project life-cycle Project appraisal:
Preparation of a real time project feasibility report containing Technical
appraisal,; Environmental appraisal, Market appraisal (including market
survey for forecasting future demand and sales) and Managerial
appraisal.
4
Subject Syllabus

• UNIT-4
• Project Financing: Project cost estimation & working capital
requirements, sources of funds, capital budgeting, Risk & uncertainty in
project evaluation , preparation of projected financial statements viz.
Projected balance sheet, projected income statement, projected funds &
cash flow statements, Preparation of detailed project report, Project
finance.
• UNIT-5
• Social Entrepreneurship: Social Sector Perspectives and Social
Entrepreneurship, Social Entrepreneurship Opportunities and
Successful Models, Social Innovations and Sustainability, Marketing
Management for Social Ventures, Risk Management in Social
Enterprises, Legal Framework for Social Ventures.
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Subject Syllabus

Once the student has successfully completed this course, he/she will be
able to:
• CO1: Students can understand the need, scope, competencies and
conceptual model of entrepreneurship
• CO2: Students will know the importance, Entrepreneurial Idea,
Innovation, Creating and Sustaining Enterprising Model
• CO3: Students will have a clear idea about meaning, scope &
importance, role of project manager.
• CO4: Students will be able to acquire knowledge about cost
estimation & working capital requirements, Risk & uncertainty of
project.
• CO5: Students will be able to understand about Social Sector
Perspectives and Social Entrepreneurship.
Amar Preet Singh AJas Education 6
Course Outcome

PO1. Engineering knowledge
PO2. Problem analysis
PO3. Design/development of solutions
PO4. Conduct investigations of complex problems
PO5. Modern tool usage
PO6. The engineer and society
PO7. Environment and sustainability
PO8. Ethics
PO9. Individual and team work
PO10. Communication
PO11. Project management and finance
PO12. Life-long learning
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Program Outcomes

Program Specific
Outcomes
Course Outcomes
CO1 CO2 CO3 CO4 CO5
PSO1 3 3 3 3 3
PSO2 2 1 - 2 3
PSO3 1 1 1 2 1
CO - PSO Mapping
* High = 3 *Medium = 2 * Low = 1

• Need, Scope
• Entrepreneurial competencies & traits
• Factors affecting entrepreneurial development
• Entrepreneurial motivation
• (Mc Clellend’s Achievement motivation theory)
• Conceptual Model Of Entrepreneurship
• Entrepreneur Vs. Intrapreneur
• Classification of Entrepreneurs
• Entrepreneurial Development Programmes
9
Content

• Entrepreneurship as a discipline does not have any real definition.
Some scholars accept the study as business formation while others
highlight it as an entrepreneurial opportunity that recognizes
dimension.
• The definition of entrepreneurship is viewed as a change, this
includes other values other than the economic ones. Narrower
definitions of entrepreneurship are described as the process of
designing, launching and running a new business.
• Entrepreneurship and Management are closely related terms in
business, there is a definite difference between both these processes.
Entrepreneurship

• Management talks about the span of organizational studies. Simply
speaking, management explains each aspect of the organization
which discusses the organization and coordinates the activities to
achieve a destined set of objectives. Harold Koontz, the great
scholar, highlighted management as the art which talks about how to
achieve the things done by people. He also pointed out the
importance of formal groups in this process.
• Thus, the management discusses the overall organizational function
which is to achieve the desired objectives. This also tells that the
interconnection between management and entrepreneurship is a set
because the entrepreneurship proceeds to the management level. In
general, entrepreneurship features the business creation whose
management is required to target the objectives of an entrepreneurial
venture.
Entrepreneurship and Management
Entrepreneur

The scope of entrepreneurship is far-reaching.
• Entrepreneurship moves even beyond the closed system of an
enterprise.
• Entrepreneurship in its capacity stimulates the economy which
enables societal change not only for fulfilling a need but also to
generate revenue for the entrepreneur, entrepreneurship thus
provides jobs for the society and develops communities.
• Entrepreneurship instigates a lot more than the mere creation of
business.
• Entrepreneurship promotes the new business and provides
opportunities to improve the new business sectors.
Entrepreneurship and its Scope

• In the long back, when washing machines were not invented,
women had to spend their time washing clothes without energy
resources or water resources. This once inspired a new company to
sell low energy washing machines. This would save time which in
turn utilized the extra time to educate themselves.
Entrepreneurship and its Scope

The need for entrepreneurship is detailed down in the following
section:
Passion, Perseverance & Persistence
• Passion is a strong and uncontrollable emotion that is based on
something higher to achieve than what the person is carrying within
himself. Perseverance is a mature emotion that comes through
experiences gathered and analyzed. While persistence is the sail that
will row the boat of an entrepreneur through the toughest of
climates.
Big Dreamer
• Dreaming big further strengthens an entrepreneur with his ability to
dream and see the wide picture. This is the very first step that sets
the path to self-discovery.
Need of Entrepreneurship

Learning
• Learning is never to stop irrespective of age and thus arming oneself
with education does play a vital role in forming leadership qualities
when needed.
Good Listener
• The ability to contribute will only come once we have abundance in
ourselves, and this comes by absorbing the words of others. The
ability to truly listen to the customers and employees is actually
what makes a difference. This very skill leads to a successful
venture.
Financing Partner
• Choosing a financing partner who understands the business needs is
very much essential. This is as critical as choosing the business
which the entrepreneur wants to pursue. Also, a business loan from
the right lender will for sure play a pivotal role in realizing the
dreams of becoming a successful entrepreneur.
Need of Entrepreneurship

Entrepreneurial Competencies
• A competence is an underlying characteristic of a person which led
to his or her effective or superior performance in a job.
• The term 'competence' refers to the combination of Knowledge,
Skills, Motive, Attitude and Habits. Every role requires some
particular competencies.

• Initiative
• Seeking and Acting on
opportunities
• Persistence
• Information seeking
• Concerns high quality work
• Commitment work contract
• Efficiency orientation
• Systematic planning
• Problem solving
• Persuasion
• Use of influence strategies
• Assertiveness
• Monitoring
• Concern for other's welfare

Initiative
Taking actions that go beyond job requirements or demands of the
situation.
• Doing things on own before being asked for; or being forced to by
events.
• Taking actions to expand the business into new areas, products or
services.

Seeking and Acting on opportunities
Looking for and taking actions to seize opportunities.
• Seeing and acting on opportunities for business development or for
personal growth.
• Seizing unusual opportunities to obtain and mobilize necessary
resources.

Persistence
Taking repeated actions to overcome obstacles that get in the way of
achieving goals.
• Taking suitable actions in the face of a significant obstacle.
• Ensuring all efforts to solve a problem or barrier.

Information Seeking
Taking action on action on own to help reach objectives.
• Personally undertaking a research or analysis to find out answer of
some problem.
• Seeking information to clarify what is needed.
• Using contacts & networks to obtain desired information.

Concerns for high quality of work
Doing things that meet or beat existing standards of excellence.
• Stating a desire to produce work of high quality.
• Comparing own/ company's work favorably to that of others.
• Making all out efforts to ensure the quality of products or services.

Commitment to work contract
Placing highest priority for getting a job completed.
• Taking extra-ordinary efforts or making personal sacrifices to
complete a job.
• Accepting full responsibility for failures, if any.
• Expressing utmost concern for the customers.
• Readiness to work even at workers' places to get work done.

Efficiency Orientation
Constantly looking for ways to do things faster or with fewer resources
or at a lesser cost.
• Using information or business tools to increase personal or
professional efficiency.
• Expressing concern for assessing costs versus rewards of some
improvements, changes or action.

Systematic Planning
Developing and using plans to reach goals.
• Breaking a large task down into several sub-tasks.
• Developing plans after duly anticipating obstacles.
• Evaluating alternatives on merits and demerits.
• Taking a logical and systematic approach to activities, in general.

Problem Solving
Identifying and applying new and potentially unique ideas to reach the
goals.
• Identifying the objectives. root-cause of the problem or
• Developing strategy in the light of objectives, resources and
constraints.
• Keeping alternatives, wherever necessary.
• Generating new ideas or innovative solutions

Self Confidence
Having a strong belief in self and own abilities.
• Expressing confidence in own ability to complete a task.
• Sticking with own judgment in the face of opposition or early lack
of success.
• Doing something for which chances of success are not very fair.

Persuasion
Persuading others successfully.
• Convincing someone successfully to do something else than what
he/she would have done.
• Selling someone a product or service.
• Making someone agree to provide resources on extra-ordinary
conditions.
• Asserting own confidence & competence in personal or company's
strengths.

Assertiveness
Confronting problems and issues with others directly
• Speaking politely but firmly.
• Telling others clearly what they have to do.
• Reprimanding those who fail to perform as expected, however close
they may be.

Monitoring
Ensuring smooth progress of project or work
• Ensuring that the work is completed or it is of high quality.
• Personally supervising all aspects of the work.
• Developing a system of supervision & monitoring.

Concern for Others’ Welfare
Having a concern & taking suitable actions to improve others' welfare.
• Taking actions to improve the welfare of society.
• Responding positively to employees' specific needs.
• Having a concern for the welfare of employees and their families.

Conclusion
• These fifteen competencies are very common in good entrepreneur.
It can vary with one person to another but mostly these are very
common and important for an entrepreneur.

Hard Worker
• Building the growing a business is no walk in the park. It takes a lot
of hard work and time invested. It is a common business adage that
hard work is opportunity is overalls. Most successful entrepreneurs
are those who are not after of spending long hours of work.
Goal Oriented
• All successful entrepreneurs started as a struggling startup with big
goals. They are successful because they know what they want to
achieve and have a set of plans on how to achieve their goals.
Self-Motivated
• Only the driven are able to finish the race and win in life. Success is
only for individuals who wake up each morning with a goal to
achieve, a plan in mind, and the positive attitude to face the day.
Traits

Risk Taker
• Business undertakings come with a dose of risk. The larger the
returns, the higher the risks. The difference between success and
failure is calculation of risks. Those who succeed take only
necessary risks and those that they can afford.
Disciplined
• Entrepreneurship can easily take up most of your waking hours and
all of your attention. How does business leaders survive? They
manage their time, schedule, and activities in order to do more at
any given time. Order and control are non-negotiable, and do not do
anything that might compromise order.
Learner
• Successful people are constant learners. They welcome change as an
opportunity to learn. They are readers, tinkers, and active listeners.
They forever have a curious mind.
Traits

Self-Aware
• Success starts with a thorough assessment and recognition of your
abilities, weaknesses, and strengths. When you know your
capabilities, you also know the qualities you need from your
associates and team members that will complement you.
Decisive
• Business opportunities are lost as soon as they are presented. To
grasp that small window offered, one has to be quick in assessing
the opportunity and in making decisions. Other entrepreneurs are
always around and eager to take your place.
Team Player
• Successful people knows the value of synergy by working with
other people. They actively seek talents who can contribute to the
company. Team work is important to them and they recognize the
importance of each and every team member.
Traits

Competitive
• Successful entrepreneurs like winning. They are a competitive
bunch. But are most likely to compete with themselves rather than
with other people. Instead of trying to beat other company’s sales,
they would focus more on beating their own achievements.
Positive Thinker
• It takes a lot to create, launch, and run a company. Adversaries,
challenges, and problems are everyday occurrence. A good
entrepreneur will recognize the problem, find a solution, and focus
on the positive aspect. He or she knows that there is not much time
left for anything else.
Financially Smart
• The most successful entrepreneurs know the value of investing and
its returns. They are aware of the equation of wealth accumulation
and ways to make their money can work for them. Every purchase is
an investment for future benefits
Traits

Live Simply
• The richest people in the world live the simplest. They live within
their means and reject unnecessary and excessive spending. It is not
unusual to see them wear the same clothes every day. It’s not that
they can’t afford a huge wardrobe, they just don’t want to waste
time deciding what to wear.
Flexible and Adaptable
• Change is inevitable, and the successful are those who found ways
to adapt and embrace change. There is no use to keeping with old
traditions and business practices that have gone obsolete with the
times.
Persistent
• Successful people do not take no for an answer. NO for them means
‘this is not the right time,’ ‘come back when you have a better
product,’ or ‘give me a better offer.’ They always try to improve
their product or their presentation and comes back for another try.
Traits

Traditional Society
• Indian society suffers from traditions, customs, and superstitions.
Religion, caste, and creed still dominate Indian society.
• Traditionally, some jobs are treated as inferior jobs.
• Due to the caste system, people hesitate to leave their traditional
occupations. Such situations have resulted in a lack of interest in
business, capacity to take a risk and constructive thinking.
Hereditary Jobs
• In India, selection of work, occupation, and business has continued
on the basis of hereditary adoption, caste system, religious and sex
differentials, and other factors and not on the basis of interest,
capacity, and feelings.
• As a result, the entrepreneurs are not able to select the business or
industry, according to their capacity, tastes, interests, and aspirations
etc.
Factors Affecting Entrepreneurial
Development

Unproductive Expenditure
• The Indian capital has always been shy. Indian people either keep
their savings hidden or spend it for unproductive purposes, like on
marriages, religious festivals, and occasions, feast on death, birth
celebrations, ornaments, fixed property, luxury goods and likewise.
Lack of Basic Infrastructure
• Basic infrastructure facilities, like transportation, communication,
banks, insurance, water, electricity, raw materials, stock exchange,
Marketing Services, capital market, organized product marketing,
etc. have not been up to the mark in India.
As a result, the progress of industries have been slow and the new
entrepreneurs have to face difficulties in establishing the industries.
Development

Lack of Entrepreneurial Spirit
• The development of enterprise and Entrepreneurship depends upon
the nature of human resources.
• In India, most of the people, particularly the younger generation
have the inclination for services and not for establishing and
operating the business or industry.
• Lack of business aptitude, lack of risk taking capacity, lack of
business and Technical abilities and also lack of constructive
thinking, entrepreneurship development or growth in India is at a
slow pace.
Cultural Values
• The cultural values have negotiated the entrepreneurship
development or growth.
• Religion has Deep Impact on Indian society.
• Our Ideal has always been, ‘simple living and high thinking’
Development

Lack of Education Training Facilities
• Education and training facilities relating to entrepreneurship skill
lack in India.
• Although some training institutes and Technical Education institutes
have been established in private and government sectors, after
independence, these are not adequate to prepare new entrepreneurs,
because the type of Education and Training provided therein, is like
that of degree providing Institutions.
Development

Lake of Favorable Environment
• All sections of the society like workers, consumers, investors,
government, society, and even the competitors, etc. Have
contribution in operating an Enterprise.
• But, it is unfortunate that in India, labour does not have the
enthusiasm to work.
• The consumers’ view regarding the entrepreneur have various
doubts, capital is always lacking, government policies are
impractical, the suppliers also exploit the new entrepreneurs and the
competition is cutthroat and not healthy.
Development

Deficiency of Capital
• As compared to the people Western countries, Indian people at large
are not capable to maintain their living standard, due to price rise.
• Only the capitalistic class has the courage to establish Industries.
• The contribution of banks and Financial Institutions in establishment
and expansion of industries in India has also been insufficient.
• Loans given for the establishment of industries are not easy terms
and conditions. Interest rates are also high.
Residence Against Innovations and Changes
• Our country has been dominated by traditional perceptions.
• The scientific and logical approach towards the problem has been
lacking.
• Neglect of innovations, Research, and investigations, residence to
changes, etc. have blocked the entrepreneurship growth in India.
Development

The American psychologist David McClelland studied the way in
which people satisfy their needs. What motivates people and what
motivators are learned? According to David McClelland, people have
motivating drivers that are directly linked to need regardless of age,
gender, culture or race. As a result of the McClelland Motivation
Theory, David McClelland identified four types of motivational need:
• Need for achievement
• Need for power
• Need for affiliation
• Need for avoidance
McClelland Theory of Motivation

Need for achievement
• Generally speaking, people want to accomplish something in life.
This could mean starting a large family for some and a well-paid job
and an illustrious career for others. David McClelland studied what
drives people to achieve something.
• What motivates them and how can they make a contribution to
society? Upon completing his study, he distinguished four
characteristics that are consistent with the need for achievement:
striving for an average task complexity, responsibility for own
performance, the need for feedback and the use of
innovation/creativity.

Need for power
• People with a need for power, attach great value to status, reputation
and recognition. They have a need to be perceived as important and
they have a need to direct and influence others. According to David
McClelland, this type of person enjoys competition and winning.
• When this need is great, they will not be open to feedback. This
need may consist of personal power and of institutional power.
Those who focus on personal power have the desire to have control
over others. Those who are focused on institutional power, like to
organize the efforts of more people to further the company’s goals.

Need for affiliation
• People are a gregarious bunch and they want to belong to the group.
When the need for affiliation is high, they want to be liked and they
will conform to the group’s behavior and wishes. In this case, they
will favor cooperation over competition. Therefore, the need for
affiliation does not go well with the need for power.
Need for avoidance
• This needs category was added later by David McClelland. When
people do not wish to perform at the forefront and prefer to avoid
unpleasant situations, this need will surface. People have fear of
failure, fear of rejection and even fear of success. By avoiding
situations that may trigger these fears, they think to have found a
safe solution.

Limitations of Achievement Theory
• The theory does not deal fully with the process of motivation and
how it really takes place.
• Persons with high need for achievement expect similar results from
others. As a result, they may lack human skills and patience for
being effective managers.
• The use of protective techniques for developing achievement motive
is objectionable.
• The research evidence in support of the achievement motivation
theory is fragmentary and doubtful.

John Kao has developed a conceptual model of entrepreneurship in his
article: Entrepreneurship, creativity and organization in 1989. This
model has four main aspects:
• Entrepreneurial Personality: The overall success of a new venture
largely depends upon the skill, qualities, traits and determination of
the entrepreneur.
• Entrepreneurial Task: It is a role played by entrepreneur in an
enterprise. The major task of the entrepreneur is to recognize and
exploit opportunities.
Conceptual Model of Entrepreneurship

• Entrepreneurial Environment: It involves the availability of
resources, infrastructure, competitive pressures, social values, rules
and regulations, stage of technology etc.
• Organizational Context: It is the immediate setting in which
creative and entrepreneurial work takes place. It involves the
structure, rules, policies, culture, human resource system,
communication system.

The Person
The organization The Task
The Environment
Entrepreneurship

• An Entrepreneur is a person who takes a considerable amount of
risk to own and operate the business, with an aim of earning returns
and rewards, from that business. He is the most important person
who envisions new opportunities, products, techniques and business
lines and coordinates all the activities to make them real.
• An Intrapreneur is an employee of the organization who is paid
remuneration according to the success of the business unit, for
which he/she is hired or responsible.
• The primary difference between an entrepreneur and intrapreneur is
that the former refers to a person who starts his own business with a
new idea or concept, the latter represents an employee who
promotes innovation within the limits of the organization. In this
article excerpt, we are providing you wit some other important
points of distinction between the two.
Entrepreneur VS. Intrapreneur

Entrepreneur VS. Intrapreneur
BASIS FOR
COMPARISON
ENTREPRENEUR INTRAPRENEUR
Meaning Entrepreneur refers to a
person who set up his own
business with a new idea or
concept.
Intrapreneur refers to an employee of
the organization who is in charge of
undertaking innovations in product,
service, process etc.
Approach Intuitive Restorative
Resources Uses own resources. Use resources provided by the
company.
Capital Raised by him. Financed by the company.
Enterprise Newly established An existing one
Dependency Independent Dependent
Risk Borne by the entrepreneur
himself.
Taken by the company.
Works for Creating a leading position
in the market.
Change and renew the existing
organizational system and culture.

Classification of Entrepreneurs
The entrepreneurs can be classified on the basis of:
1. Ownership
2. Personality Traits and their Style of Running the Business
3. Type of Business
4. Stages of Development
5. Clarence Danhof
6. Use of Technology
7. Motivation
8. Growth
9. Stages of Development
10. Other Categories.

• Classification of Entrepreneurs According to the Type of Business
Business Entrepreneurs
• Business entrepreneurs we those who conceive an idea to for a new
product or service and then create a business to convert their ideas
into reality. These entrepreneurs may be found in small business
units or big enterprises. They concentrate both on production and
marketing activities. Example: A Printing Press, bakery or a textile
unit.
Trading Entrepreneurs
• Trading Entrepreneurs are those who undertake trading activities.
These entrepreneurs do not concentrate on manufacturing activities.
They give more emphasis on distribution and marketing of goods.
They identify potential markets, create demand for the product and
influence people to buy the product. Example: Agents and
Wholesalers.

Industrial Entrepreneurs
• Industrial Entrepreneurs are those who concentrate in industrial and
production activities. Trey identify the needs of the customers and
manufacture a product according to their needs. They are generally a
product-Oriented entrepreneur. Example: A manufacturer of
Automobile spare parts, computer accessories.
Corporate Entrepreneur
• Corporate entrepreneurs are those who exhibit innovative skills in
organizing and managing corporate undertaking. Example: A Trust
registered under the Trust Act.
Agricultural Entrepreneur
• An agricultural entrepreneur is one who concentrates on agricultural
activities. These entrepreneurs concentrate on activities like raising
agricultural production, marketing of fertilizers etc.

Retail Entrepreneurs
• Retail entrepreneurs are those who undertake trading activities. They
have direct contact with customers and hence they are customer
oriented. Example: An entrepreneur running a departmental store
Service Entrepreneur
• A service entrepreneur is one who provides services to customers.
They make profit by rendering services. Example: An entrepreneur
running a hotel or dry cleaning unit.
Social Entrepreneur
• A social entrepreneur is one who provides importance to the society
by serving them. He concentrates on social issues and does not aim
to make profit. Example: A person running an orphanage.

• Classification Of Entrepreneur According To The Stages Of
Development
First Generation Entrepreneur
• A first generation entrepreneur is one who sets up an enterprise by
his innovative skill. He combines various factors of production and
provides marketable product or services by adopting innovative
ideas. He is the first person to start an enterprise on his own. Though
such a person may have the family background of some business,
such entrepreneurs may also establish a certain business which may
be unrelated to their family business.
Modern Entrepreneurs Or Innovative Entrepreneurs
A modern entrepreneur is a dynamic entrepreneur. He always looks for
changes and responds to the changing demand of the market. His
business ventures suits the current marketing needs.

Classical Entrepreneur
• Classical entrepreneur is a stereo type entrepreneur. He aims at
maximizing profits at a consistent level. There may or may not be an
element of growth. Survival of the firm is given more importance by
these entrepreneurs.
Inherited Entrepreneurs
• These entrepreneurs have inherited family business or possess
experience from their family business. These entrepreneurs may like
to diversify a little from their family business.

• Classification Of Entrepreneurs According To Motivational Aspects
Pure Entrepreneur
• A pure entrepreneur is a person who is motivated by psychological
and economic factors. Entrepreneurial task is undertaken by them
due to certain reasons. Ability to handle risk, desire to enjoy better
status, desire to get recognition in the society, thirst for making
money motivates a person to take up entrepreneurial activities.
Induced Entrepreneur
• Induced entrepreneur are those who takes up entrepreneurial task
due to the incentives and subsides granted by the government.
Financial and technical assistance provided by the government
motivates a person to start new ventures.

Motivated Entrepreneur
• They are motivated by the desire far their self-fulfillment. They
emerge because of the possibility of producing and, selling new
products. They are also motivated by economic factors.
Spontaneous Entrepreneur
• A person, turns out to be an entrepreneur, because of the natural
talent vested in him. These entrepreneurs have self confidence and
emerge as challengers. They take up entrepreneurial activity in order
to tap their talents. They have great self confidence in their talent
and are highly resourceful.

• Classification Of Entrepreneurs According To Technological Aspects
Technical Entrepreneur
• A technical entrepreneur is one who concentrates more on
production activities. He has got sound technical knowledge. He
utilizes his technical knowledge and demonstrates his innovative
capabilities. He is also known as technocrat.
Non-technical Entrepreneur
• This type of entrepreneur concentrates more on marketing activities.
He tries to find out new strategies for marketing goods. He also
promotes his business by employing various marketing methods.
Professional Entrepreneur
• Professional entrepreneur is a person who applies innovative ideas in
setting up of a business. He is interested in establishing the
enterprises rather than managing it. Once the business is established.
the entrepreneur will sell the business to some one else.

• Classification Of Entrepreneurs According To Clarence Danhof
Innovative Entrepreneur
• An innovative entrepreneur is one who introduces new product, new
service or new market. An innovative entrepreneur is also known as
modern entrepreneur. An innovative entrepreneur can work only
when a certain level of development is reached. These entrepreneurs
introduce new changes and develop the business after a certain level
of development is reached. They invent new products. Such kind of
entrepreneurs can be seen in developed countries, as large sum of
money can be diverted towards research and development purposes.

Adaptive Entrepreneur
• Adaptive entrepreneur is one who adopts the successful innovations
of innovative entrepreneur. These entrepreneurs imitate the
techniques and technologies innovated by others. These
entrepreneurs can be seen both in underdeveloped and developing
countries. They also make small changes in relevance to their
market environment.
Fabian Entrepreneur
• A fabian entrepreneur is one who responds to changes only when he
is very clear that failure to respond to changes would result in losses.
Such entrepreneurs do not introduce new changes. They also do not
desire to adopt new methods. They are very shy and stick to old
customs. They are very cautious.

Drone Entrepreneurs
• These entrepreneurs do not make any changes. They refuse to utilize
the opportunities and may also suffer losses. They are very
conventional. They refuse to introduce changes. They even make
losses but avoid changes. Sometimes they may be pushed out of the
market.

Entrepreneurial Development Programmes
• Entrepreneurial Development Programme (EDP) refers to a
programme which is formulated to assist the individuals in
reinforcing their entrepreneurial motives, and attaining
competencies and skills which is essential for performing an
entrepreneurial role successfully.
• EDP can also be defined as a pre-defined process that recognizes,
inculcates, designs and refines the skills and proficiencies of an
individual to establish his own enterprise.

Objectives of Entrepreneurial Development Programme (EDP)
• To make people learn compliance with law.
• To develop and fortify entrepreneurial quality, i.e., motivation or
need for achievement.
• To develop small and medium scale enterprises in order to generate
employment and widen the scope of industrial ownership.
• To industrialize rural and backward sections of the society.
• To understand the merits and demerits of becoming an entrepreneur.
• To investigate the environmental set-up relating to small industries
and small businesses.
• To design project for manufacturing a product.
• To increase the supply of entrepreneurs for quick industrial
development.

• To prepare individuals to accept the uncertainty involved in running
a business.
• To develop managerial skills among small entrepreneurs for
improving the performance of small-scale industries.
• To offer profitable employment opportunities to educated young
men and women.
• To expand the sources of entrepreneurship.

• Phases of Entrepreneurial Development Programme (EDP)
Pre-Training Phase
• This step can be considered as the introductory phase in which the
entrepreneurship development programmes are launched. A wide
spectrum of activities are performed in this phase arc described
below :
• Identification of suitable location where the operations can be
initiated like a district.
• Selection of an individual as a course coordinator or project leader
to coordinate the EDP activities.

• Organization of basic infrastructural facilities related to the
programme.
• Conducting the environmental scanning or industrial survey in order
to look for better business opportunities.
• Developing various plans associated with the programme
• Looking for the assistance of various agencies such as DICs, banks,
SISI, NSIC, DM and so on.
• Conducting industrial motivational campaigns to increase the
number of applications.

Training Phase :
• The main function of any EDP is to impart training to future
entrepreneurs and guiding them for establishing the enterprise. The
normal duration of the entrepreneurship development programme is
4-6 weeks and it is usually a full time course. The objectives,
training inputs and the center of focus are explained in the
programme design.
Post-Training Phase
• This phase is also referred as the phase of follow-up assistance. In
this phase, the candidates who have completed their programme
successfully are provided post-training assistance. This phase is very
important as after the completion of training programme, most of
the entrepreneurs face a lot of hardship in the business plan
implementation.

Members like State Financial Corporation, commercial banks, training
institutions and District Industries Centre constituted all together to
assist the entrepreneurs on the basis of mentioned goals :
• To assist trainees in a meaningful manner so that trainees can realize
their business plan.
• To analyze the development made by trainees in the project
implementation.
• To evaluate the post-training approach.
• To provide escort services to the trainees with the help of various
promotional and financial institutions.

A number of government and private institutions are providing
assistance in India to entrepreneurs. Some of them are listed below :
• Small Industries Development Organization (SIDO),
• Commercial Banks,
• National Alliance of Young Entrepreneurs (NAYE),
• National Institute for Entrepreneurship and small Business
Development (NIESBUD),
• Entrepreneurship Development Institute of India (EDI),
• India Investment Centre (LIC),
• Small-scale industrial Development Bank Of India (SIDBI), and
• Technical Consultancy Organization (TCO)

Importance of Entrepreneurial Development Programme (EDP)
• Formation of Employment Opportunities
• Provides Adequate Capital
• Proper Utilization of Local Resources
• Increased Per Capital Income
• Improved Standard of Living
• Economic Independence
• Preventing Industrial Slums
• Reducing Social Tension
• Facilitating Overall. Development

Entrepreneurial Development Institute of India (EDII)
The Entrepreneurship Development Institute of India was established in
1983 in Ahmedabad, Gujarat. It is a national institute apex by public
financial institutions and the government of Gujarat. It promotes
research, training and institution-building activities by encouraging
active participation of backward areas and special target groups in
entrepreneurship. This institute has been operating for the past more
than 18 years now. The development programmes in the institute serve
as per the following objective:
1. Speed up the Industrial development
2. Increase the performance of small industries
3. Development of industries in rural and underdeveloped areas
4. Expanding sources of entrepreneurship
5. Enlarging the micro, small and medium enterprise sector

National Institute For Entrepreneurship And Small
Business Development (NIESBUD)
In Noida, it was set up in 1983 as an apex institution in the field of
entrepreneurship development to Promote, Support, sustain
entrepreneurship and small business through training, education,
research, and consultancy services. The institute body established by the
Ministry of industry, the government of India for coordinating and
overseeing the activities of various institutions/agencies engaged in
entrepreneurial development in small industry and business. The main
objective of the NIESBUD institute are as follows
1. To give essential information support to promoters, trainers and
entrepreneurs

2. To provide training and assist potential entrepreneurs in setting up a
self entrepreneur ventures in small industries.
3. To help entrepreneurs throughout training in organization/institution
and other entrepreneurship development related activities with greater
success.
4. To develop systematized materials and processes of selection,
training support to potential entrepreneurs.

Xavier Institute of Social Services, Ranchi
Xavier Institute of Social Services, Ranchi has been training rural
entrepreneurs since 1974. This institute provides the training and assists
the trainees in drafting project proposals and obtaining the required
finance. It offers a 6 months programme to tribal with minimum
literacy and numeracy skills. The program consists of:
1. Identification and selection of candidates
2. Motivation and Managerial Training
3. Placement and training for practical skills.
4. Market survey and preparation of project report
5. Financial assistance
6. Follow up action

Madhya Pradesh Consultancy Organization Ltd
This Organization was promoted by all-India financial institutions and
state corporations. It undertakes assignments for project planning,
detailed engineering, market surveys, management surveys, and
entrepreneurship development programs.
Technical Consultancy Organizations (TCOs)
Access to high-quality consultancy services improves the operational
efficiency of entrepreneurs. Various state governments in association
with all India financial institutions have promoted various technical
consultancy organizations to provide technical consultancy and training
to prospective entrepreneurs. These organizations provide a
comprehensive package of services to future entrepreneurs.

Unit1 Entrepreneurship [AKTU SYLLABUS]

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Unit1 Entrepreneurship [AKTU SYLLABUS]