It covers the concepts of Entrepreneurship, Entrepreneurial characteristics, Intrapreneur, Motivational factors, barriers, business planning process, sources of finance, types of ownership, small scale industries

2.  Meaning and concept of
entrepreneurship
 Role of Entrepreneurship in Economic
Development
 Factors affecting Entrepreneurship
 Creativity, Innovation and
Entrepreneurship
 Intrapreneurship

3.  Entrepreneurship:
process of creating
value by bringing
together a unique
package of resources
to exploit an
opportunity.
 Various definitions at
different centuries

6.  Managerial functions:
› Planning
› Organizing
› Staffing
› Directing
› Controlling
 Promotional functions
› Business idea selection
› Preparing business plan
› Financial requirements
 Commercial functions
› Production
› Marketing
› Accounting

7.  Based on the type of business: trading,
manufacturing, agriculture etc.,
 Based on the use of technology: technical
and non-technical
 Based on ownership: private, state, joint
 Based on the size of enterprise: small-scale,
medium-scale, large-scale
 Based on Clarence Danhof classification:
› Innovating
› Imitative
› Fabian
› Drone

9.  Economic factors:
› Labour
› Capital
› Raw materials/ product type
› Market
 Non-economic factors
› Social conditions
› Social mobility
› Marginality
› Security
 Psychological factors
› Need of achievement
› Status respect

10.  Characteristics of innovation
 Creativity
 Sources of innovative and creative
ideas
 Linkage between the three
 Process of creativity
 Creative thinking vs. lateral thinking

13.  Entrepreneurial activities that acquire
organizational sanctions and
commitments of resources for the sole
objective of innovative results
 Characteristics:
› Between inventors and manager
› Idea actualization
› High need for achievement
› Moderate risk takers
› Workaholic
 Reasons for promotion:
› To stop outflow of talent, experience and
innovation
› Innovative ideas

14.  Definition
 Entrepreneurial motivation
 Characteristics of Entrepreneurs
 Distinction between an Entrepreneur
and a Manager

15.  Entrepreneur -> French language, mean
“between-taker”, “go-between”, “to undertake”
 Introduced by Richard Cantillon
 Evolution and development of the term
“entrepreneur”
 Broad classification:
› As a risk bearer – uncertainty, risk vs. uncertainty
› As organizer or coordinator -
 Morale qualities of work
 Command over sufficient capital
 Uncertainty of profits
› As innovator

17.  hard work
 desire for high achievement
 highly optimistic
 independence
 foresight
 good organizer
 Innovative
 perseverance
 team spirit
 vision
 knowledge
 desire to succeed
 Leadership
 desire to exercise control over others
 risk taking ability

19.  Motive means “to move”
 Various economists defined motivation as per
their views and experiences
 In general, motivation may be defined as
one’s willingness to exert high level of efforts
towards the accomplishment of goal or
fulfillment of need.
 Entrepreneurial motivation may be defined as
the process that activates and motivates the
entrepreneur to exert higher level of efforts to
achieve his/her entrepreneurial goals.

20.  Nature of motivation/characteristics of
motivation
› Internal to man
› Single motive can cause different behaviour
› Different motives may result in single behaviour
› Motives come and go
› Motives interact with the environment

21.  Motives
 Goals
 Behaviour
› Caused
› Motivated
› Directed

22.  Maslow’s Need Hierarchy Theory

23.  McClelland’s Need for Achievement theory
› Need for Achievement
› Need for Power
› Need for Affiliation

24.  Internal factors
› Desire to do something new
› Education background
› Experience etc.,
 External factors
› Govt. assistance and support
› New raw material and labour
› Encouragement from big business team
› Promising demand
 B.Muruthy et al classified as
› Ambitious
› Compelling
› Facilitating

25.  Objectives of a Business Plan
 Business Planning Process
 Opportunity Identification and Selection
 Contents of a Business Plan
 Functional Plans.

31.  Both entrepreneur and the enterprise should be
compatible with each other in all terms
 Characteristics of environment:
› Complex, dynamic, multi-facet, has far-reaching impact
 Various dimensions of business environment
› Economic, social, political, legal, technological
 Identification of business opportunity
› Idea generation
› Product identification
 Opportunity selection
› SWOT analysis
› Zeroing in process

34.  Marketing plan
 Production / operational plan
 Organizational plan
 Financial plan

35.  Forms of Business Ownership
 Sources of Finance
 Institutional Support to Entrepreneurs

36.  Sole proprietorship
 Partnership – deed, registration and
dissolution of the firm
 Company – private and public limited
 Cooperative

40.  Debt – money borrowed and returned
back with interest within a specified
period of time
 Equity – money given for a share of
ownership
 Capital structure – ratio of debt to equity
 Factors determining capital structure
› Reasons for capital requirement
› Stage of growth of company
› Financial condition of the company
› Capital requirement
› Constraints by the financial source on the
operations and on the management of the
company

41.  Internal sources of finance:
› Retained profit
› Controlling working capital
› Sale of assets
› Owners personal savings
› Reducing stocks
› Trade credit
 External sources of finance:
› Debentures
› Share issue
› Factoring services
› Commercial banks
› Venture capital

42.  National Small Industries Corporation Ltd
(NSIC)
 Small Industries Development
Organization (SIDO)
 Small-Scale Industries Board(SSIB)
 State Small Industries Development
Corporations (SSID)
 Small Industries Service Institutes (SISIs)
 District Industries Centres (DICs)
 Technical Consultancy Organizations
(TCOs)

43.  Definition of Small Scale Industries
 Strengths and Weaknesses of Small
Business
 Growth Strategies in Small Scale
Enterprises
 Sickness in Small Enterprises
 Symptoms Causes and Consequences.

44.  In 1955, it is defined as “the industry should
with capital assets of not more than Rs 0.5
million with less than 50 persons as
employees.
 Various definitions are given in the textbook
based on the Indian constituent acts

45.  Strengths
› Innovative and techno-managerial skills
› Enterprising spirit
› Employment generation
› Balance of economic power
› Social equilibrium etc.,
 Weaknesses
› Lack of proper planning
› Lack of marketing knowledge
› Weak financial background
› Lack of required support etc.,

46.  Stages of growth
› Introduction
› Growth
› Expansion
› Maturity
› Decline
 Types of growth strategies
› Internal – expansion , diversification
› External – joint ventures, mergers &
acquistions, sub-contracting, franchising

47.  Expansion
› Through market penetration
› Through market development
 Diversification
› Horizontal
› Vertical
› Concentric
› Conglomerate
 Joint venture
› Entity resulting from a long term
contractual agreement

48.  Mergers & acquisitions
› Horizontal
› Vertical
› Concentric
› conglomerate
 Sub-contracting
› Mutually beneficial commercial
relationship between two companies
 Franchising
› Agreement between franchisor and
franchisee to sell the popular branded
products

49.  Signals
› Warning signs of the sickness in several
functional areas in the company
› Eg: shortage of liquid funds
› Failure to pay bills
› Profit fluctuations
› Low capacity utilization
› Rapid expansion
› Too much diversification etc.,
 Symptoms
› The persistence of various signals over a
long period of time.

50.  Causes
› External – govt. policy, environment, natural
calamities etc.,
› Internal – poor management, power shortage,
equipment problems, labour problems etc.,
 Consequences
› Huge financial loss to banks and other financial
institutions
› Loss of employment
› Wastage of resources etc.,

51.  https://som.yale.edu/faculty-research-
centers/centers-initiatives/program-on-
entrepreneurship/entrepreneurship-case-
studies
 https://mitsloan.mit.edu/LearningEdge/entrep
reneurship/Pages/default.aspx
 https://www.mbaknol.com/management-
case-studies/case-study-on-
entrepreneurship-bill-gates/
 https://www.mensxp.com/work-
life/entrepreneurship/21253-51-most-
successful-entrepreneurs-of-india-p1.html
 https://www.strawberrybranding.com/blogs/to
p-10-new-generation-successful-
entrepreneurs-of-india/

52. TEXT BOOK:
 1. S.S.Khanka, ―Entrepreneurial Development‖, 4th
Edition, S.Chand & Company Ltd., 2012.
 2. Madhurima Lall and Shikha Sahai,
―Entrepreneurship‖, 2nd Edition, Excel Books, New
Delhi, 2008.
REFERENCE BOOKS:
 1. Raj Shankar, ―Entrepreneurship, Theory and
Practice‖, Vijay Nicole Imprints Pvt. Ltd., Chennai
2012.
 2. Barringer and Ireland, ―Entrepreneurship‖, 3rd
Edition, Pearson Education, 2012.

53.  3. Zimmer and Scarborough, ―Essentials of
Entrepreneurship and Small Business Management‖,
5th Edition, PHI Learning Pvt. Ltd., 2009.
 4.https://www.scribd.com/doc/32063037/1-
Concept-of-Entrepreneur-Entrepreneurship 5.
http://www.oecd.org/cfe/leed/entrepreneurial-
ecosystems.pdf