Enterpreneurship extension

1. Department of Agricultural Extension
Institute of Agriculture and Natural Sciences
D. D. U. Gorakhpur University
Lecture-1
Delivered By: Dr. Alimul Islam
Note for: B.Sc. (Ag.) V Semester
Course Title: Entrepreneurship Development and Business Communication
Course Code: EXT-321
Concept of Entrepreneur, Entrepreneurship Development, Characteristics of entrepreneurs
MEANING OF ENTREPRENEUR
The entrepreneur is defined as someone who has the ability and desire to establish, administer
and succeed in a startup venture along with risk entitled to it, to make profits. The best example of
entrepreneurship is the starting of a new business venture. Entrepreneurs are often known as a source
of new ideas or innovators, and bring new ideas in the market by replacing old with a new invention.
An Entrepreneur is an individual with knowledge, skills, initiative, drive and spirit of
innovation who aims at achieving goals. An entrepreneur identifies opportunities and seizes
opportunities for economic benefits.
An entrepreneur is an individual who creates a new business, bearing most of the risks and
enjoying most of the rewards.
CONCEPT OF ENTREPRENEUR
The word “Entrepreneur” is derived from the French verb ‘entrepredre’. It means ‘to undertake’.
In the early 18th century French economist Richard Cantillon used the term entrepreneur to
business. Since that time the word entrepreneur means one who takes the risk of starting a new
organization or introducing a new idea, product or service to society.
According to J.B. Say, “An Entrepreneur is the economic agent who unites allmeans
of production, land of one, the labour of another and the capital of yet anotherand thus produces
a product. By selling the product in the market the pays rent of land, wages to labour, interest on
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2. capital and what remains is his profit”.
According to Joseph Schumpeter, “An entrepreneur in an advanced economy is an
individual who introduces something new in the economy, a method of production not yet tested
by experience in the branch of manufacture concerned, a product with which consumers are not
yet familiar, a new source of raw material or of new marketand the like”.
TYPES OF ENTREPRENEURS
Following are the classification of entrepreneurs on the basis of common characteristics.
CONCEPT OF ENTREPRENEURSHIP
Entrepreneurship is the ability and readiness to develop, organize and run a business
enterprise, along with any of its uncertainties in order to make a profit. The most prominent
example of entrepreneurship is the starting of new businesses. Joseph Alois Schumpeter is
regarded as the father of entrepreneurship. He introduced the concept of entrepreneurship.
In economics, entrepreneurship connected with land, labour, natural resources and capital
can generate a profit. The entrepreneurial vision is defined by discovery and risk-taking and is an
indispensable part of a nation’s capacity to succeed in an ever-changing and more competitive
global marketplace.
An entrepreneur creates a firm to realize their idea, known as entrepreneurship, which
aggregates capital and labor in order to produce goods or services for profit.
ENTREPRENEURSHIP DEVELOPMENT
Entrepreneurship Development is defined as a process of enhancing the skillset and
knowledge of entrepreneurs regarding the development, management and organization of a
business venture while keeping in mind the risks associated with it.

3. ENTREPRENEURSHIP DEVELOPMENT: PROCESS
Entrepreneurship development is a strategic process which incorporates various tools that
concentrate on skill development of the individual in an array of ways. Given below is a detailed
guide of creating an effective entrepreneurship development program to help you understand what
it’s all about:
1.Outline the objectives of the program and focus on the venture development
Entrepreneurship development aims at individuals who want to start or possibly expand
a business. Entrepreneurship development also focuses a lot on enhancing the ideas and potential
of an entrepreneur. The aims of a program have to be clearly explained otherwise the program
will never reach its full potential. The development of aventure also has to be outlined in the
program. Without these two, there will be no clear goal.
2. Select educated people who have high entrepreneurial potential
An entrepreneurship development program requires that various people be selected.
However, most programs tend to look for a specific group of educated peoplerather than
target everyone. Ideally, you have to look at the education and traits that youare looking for, in
an entrepreneur, and match them with the people who have appliedfor the program. Most
people say that public funds should be spent on people who needthe most help. The resources
of an entrepreneurship development program are usually(and unfortunately) limited. It is
hence better to choose people who will prove to bereally useful and benefit the entire
community.
3. Select uneducated people who have high entrepreneurial potential
A development project on women’s entrepreneurship in Nepal was recently conducted.
It was found that women who couldn’t meet the essential needs of their family or themselves
were usually more eager to learn about different ways to earn money as compared to women
who were better off. However, such women usually face many problems.
Even though such women are not educated, they have great entrepreneurship potential because
they have the right motivation. Such people need to be aided by assistance packages where
training can be given on entrepreneurship. This will instill confidence and teach them the skills
they need in order to provide for their family.
4. Identify the local market and search for people who have potential in it
Entrepreneurship development programs should first identify the local marketand aid
potential entrepreneurs who know a lot about it. These people need to be able analyze and then
design unique ideas based on the needs of their surroundings. By concentrating on select local
entrepreneurs, the effects of the program can be easilyand quickly seen within the community.

4. Later on, programs can help improve their knowledge in their sector. In fact, it is creativity and
the thirst for innovation that truly matters rather than the market’s size. In later programs, the
introduction of new products and product features can be added. This will add value and
increase the size of the market
5. Provide support through private sector-based organizations
Support should be obtained from private organizations that are both financial and
knowledge-based. This helps reduce the cost of the entrepreneurship development program and
increases its effectiveness. Private organizations that could support entrepreneurship
development programs include universities, consulting companies andvarious NGOs. Large
enterprises are also encouraged to support entrepreneurship development programs as this their
sponsorship that will help reduce unemployment.
6. Provide an easy yet detailed methodology that will help entrepreneurs improvein the
short and long-term
Entrepreneurial development programs aim at being simple to understand and teach
skills that entrepreneurs can use after the program. It also contains courses that aim at developing
their skills and ideas. These are required if entrepreneurs wish to successfully exploit the local
market. They also need to be taught how to gather the required resources in order to meet the
goals of their venture. The program also needs to have outlined methods through which
entrepreneurs can improve the performance of their business in the long run. Entrepreneur
development training proves to be highly effective when finance, quality assurance, marketing
and productivity are linked to the training program. As an example, when development banks
are involved earlier in the process of training, an entrepreneur will easily understand credit
processes and the also praises the bank’s business plan.
7. Implement special measures to improve the usefulness of trainers andfacilitators
The Success of an entrepreneurship development program also relies on the commitment and
quality of the many facilitators and trainers. Any trainer or facilitator in the program needs to
understand the culture and lifestyle of the group in order to better integrate themselves and serve
the group.
The selection of proper trainers is based on the amount of business experience they have and the
how much knowledge they have about their local business environment. Training facilitators
can significantly improve their usefulness in tackling the needs of entrepreneurs.
8. The selection of areas for pilot programs must be right
Entrepreneurship development programs are usually too restricted in terms of where it
is done and what people are involved in the program. Selecting pilot target areas will usually

5. depend on the ease at which support institutions are available.
It will also depend on the interest people take in entrepreneurial development programs.These
facts can never be the same for any two geographical locations and hence must be considered
carefully.
9. Launch pilot ED programs and develop as needed
Analyzing pilot feasibility is an effective way of launching a major entrepreneurship
development program. If the program shows signs of high promise, it can be launched on a
national level. By relying on the sponsors for support rather than donor support, theprogram will
be able to expand past local development while maintaining high quality. This is especially
important when the support of donors starts to fade.
10. A successful entrepreneurship development program requires government policies
Entrepreneurship helps the economy of a country grow and creates new jobs. Government
policies usually have a substantial impact on the number of entrepreneurs in a country. While
there are many governments that say they do supportentrepreneurial businesses, they usually
do not have many specific policies and programs that effectively support entrepreneurial
development. Creating an effective entrepreneurship development program may not be easy but
then again, it is notimpossible either. By carefully following the ten points above, you are well
on your way to creating an entrepreneurship development program that not only benefits your
company in the short run but in the long run as well.
CHARACTERISTICS OF ENTREPRENEURSHIP:
Not all entrepreneurs are successful; there are definite characteristics that make entrepreneurship
successful. A few of them are mentioned below:
 Ability to take a risk- Starting any new venture involves a considerable amount of failure
risk. Therefore, an entrepreneur needs to be courageous and able to evaluate and take risks,
which is an essential part of being an entrepreneur.
 Innovation- It should be highly innovative to generate new ideas, start a company and earn
profits out of it. Change can be the launching of a new product that is new to the market or
a process that does the same thing but in a more efficient and economical way.
 Visionary and Leadership quality- To be successful, the entrepreneur should have a clear
vision of his new venture. However, to turn the idea into reality, a lot of resources and
employees are required. Here, leadership quality is paramount because leaders impart and
guide their employees towards the right path of success.

6.  Open-Minded- In a business, every circumstance can be an opportunity and used for the
benefit of a company. For example, Paytm recognised the gravity of demonetization and
acknowledged the need for online transactions would be more, so it utilised the situation
and expanded massively during this time.
 Flexible- An entrepreneur should be flexible and open to change according to the situation.
To be on the top, a businessperson should be equipped to embrace change in a product and
service, as and when needed.
 Know your Product-A company owner should know the product offerings and also be
aware of the latest trend in the market. It is essential to know if the available product or
service meets the demands of the current market, or whether it is time to tweak it a little.
Being able to be accountable and then alter as needed is a vital part of entrepreneurship.
IMPORTANCE OF ENTREPRENEURSHIP:
 Creation of Employment- Entrepreneurship generates employment. It provides an entry-
level job, required for gaining experience and training for unskilled workers.
 Innovation- It is the hub of innovation that provides new product ventures, market,
technology and quality of goods, etc., and increase the standard of living of people.
 Impact on Society and Community Development- A society becomes greater if the
employment base is large and diversified. It brings about changes in society and promotes
facilities like higher expenditure on education, better sanitation, fewer slums, a higher level
of homeownership. Therefore, entrepreneurship assists the organisation towards a more
stable and high quality of community life.
 Increase Standard of Living- Entrepreneurship helps to improve the standard of living of
a person by increasing the income. The standard of living means, increase in the
consumption of various goods and services by a household for a particular period.
 Supports research and development- New products and services need to be researched
and tested before launching in the market. Therefore, an entrepreneur also dispenses
finance for research and development with research institutions and universities. This
promotes research, general construction, and development in the economy.