introduction

1. Presented by:
Dr. Rachna Balyan
Assistant Professor
Department of Commerce
Govt. Girls Degree college ,
kharkhauda, Meerut

2. Unit 1
Entrepreneurship:
An Overview

3. Entrepreneur
A person who tries to create something new
organizes production
undertakes risks
handles economic uncertainty
involved in an enterprise

4. Characteristics of an Entrepreneur
Hard worker
Desire for high achievement
Independent
Foresight
Highly optimistic
Good organizer
Innovative

5. Characteristics of an Entrepreneur
Managerial skills
Good communication skills
Imaginative thinking
Emotional tolerance
Urge to take calculated risk
Self confident
Seeing & acting on opportunities

6. Factors influencing Entrepreneurship
Economic Factors
– Capital
– Labor
– Raw Material
– Market
Social Factors
– Legitimacy Entrepreneurship
– Social Mobility
– Marginality

7. Contd.
Psychological Factors
– Need Achievement
– Withdrawal of status respect
Other Factors
– Govt. Actions

8. Functions of Entrepreneur
Assumption of risk
Business decisions
Managerial functions
Function of innovation
Idea generation
Determination of objectives
Raising funds
Collecting resources

9. Contd.
Organizing production
Ensuring quality
Promotion
Technological updation
Improving working conditions
Cost control
Market research
Recruitment
Implementation of project

10. Types of Entrepreneur
Clarence Danhof classified on the basis of
development stages:
– Innovating Entrepreneurs
– Imitative Entrepreneurs
– Fabian Entrepreneurs
– Drone Entrepreneurs
Other types
– Solo operators
– Active Partners
– Inventors
– Buyers
– Life Timers
Intrapreneur

11. Entrepreneurial motivation & Barriers
Motivational Factors
Technical Knowledge
Entrepreneurial training
Market contacts
Family business
Availability of capital

12. Barriers
Lack of technical skills
Lack of market knowledge
Lack of Business knowledge
Time pressure & distractions
Legal & bureaucratical constraints

13. Entrepreneurship
It is the process of identifying
opportunities in the market place
collecting the resources required to
pursue these opportunities & investing
the resource for a long term

14. Features of Entrepreneurship
Economic activity
Innovative function
Goal oriented
Risk bearing function
Organizing function
Dynamic process

15. Importance of Entrepreneurship
Improvement in National income
Generation of employment
Balanced regional development
Improvement in living standards
Economic independence

16. Classification of Entrepreneurship
Contextual basis
Standalone startup
Corporate entrepreneurship
Co-preneurship
Technology entrepreneurship
Service entrepreneurship
E- entrepreneurship
Novelty basis
Innovating entrepreneurship
Imitative entrepreneurship
Intention basis
Build to sell or serial entrepreneurship
Build to last entrepreneurship

17. Entreprenuerialculture & stages
Entreprenuerial interest
Generate ideas for screening
Venture screening
Develop & refine the concept
Determine resources required
Aquiring necessary financials
Develpoing the business plan
Implement & change
Growth or exit

18. Theories of Entreprenuership
Max Weber’s theory of social change
– It depends on ethical value system.
– Gives treatment to ethics & capitalism.
– Boosting rapid growth through
materialistic things with base as ethical
values.
Its criticisms:
– This system based on Hindu values
– Rapid growth occurred that proves that
Indians are not that much averse

19. Hoselitz sociological theory
Based on societal values.
It shapes one’s attitude & role
expectations.
Entrepreneurship can grow in a flexible
social environment.
It contributes to creative adjustments
& innovations.

20. Trait theory of entrepreneurship
It is based on the characteristics of
behavior of a person like:
– Creativity
– Self-confidence
– Risk-taking
– Imagination

21. Economic theory of entrepreneurship
It is based on economic incentives &
gains.
Economic factors which emphasis it
are:
Market incentives
Availability of sufficient capital
Institutional support

22. McClelland’s psychological theory
It depends upon the psychological
characteristics.
Certain kinds of needs get uprooted
through psychology. These are:
Need for achievement
Need for power
Need for affiliation
Ideal state of these needs are:
High power needs & low affiliation needs meke
a good entrepreneur.
Moderate achievement needs results into less
risk association.

23. Theory of social behavior
It depends on the behavior exhibited by a
person & the acceptance & non-
acceptance of that behavior by various
social structures.
The structures which are the suppliers of
entrepreneurship are as follows:
Limitation structure
Demand structure
Opportunity structure
Labor structure
Main criticism of this theory is this based
on ideal supply structures.

24. X-efficiency theory
Basically discuss the optimum
utilization of resources.
Finding out the deficiencies or lack in
efficiencies.
And finally the gap is being filled by
various inputs

25. Schumpeter’s innovation theory
It depends on innovation.
It describes the entrepreneur as
innovator not inventor
Innovation leads to changes like:
– New features of a product or quality
improvement.
– New methods of production
– Opening of new market

26. This theory is based on certain
assumptions:
– Existence of capital
– Developed banking system
– High level technology
This shows that it is considerable for
developed economies.
The limitations of this theory are:
– People are reluctant towards innovation.
– It ignores other entrepreneurial functions.
– It mainly focus on high profile
entrepreneurs.

27. What is EDP????
Entrepreneurship Development
Program (EDP) is designed to help a
person in strengthening & fulfilling
his entrepreneurial motive & in
acquiring skills & capabilities
necessary for playing his / her role
effectively & efficiently.
There are three important variable:
Location, Target Group & Enterprise.

28. Objectives of EDP
Develop & strengthen their entrepreneurial
quality / motivation.
Analyze environment related to small
industry & small business.
Helps in selecting Project/Product
Formulate Projects
Understand the process & procedure of
setting up of small enterprises
Know & influence the source of
help/support needed for launching the
enterprise.
Acquire the basic management skills
Know the pros & cons of being an
entrepreneur &
Acquaint & appreciate the needed social

29. Issues of EDP
Structure & Composition of EDPs
Areas of Operation
Fixing Priorities
Lack of Specialist’s Support
Some operational problems of EDP are:
Inherent inability
Diverse opinions
No proper strategy
Low institutional commitment
No local support
Non-availability of inputs
Poor follow-up
No adequate research facilities