4000

1
A Project Report
On
“To Study the Perception of Potential Entrepreneurs”
Submitted in partial fulfillment of the requirements for award of degree of
BACHELORS OF BUSINESS ADMINISTRATION
Of
PUNJAB TECHNICAL UNIVERSITY, JALANDAR
Submitted by:
Gurpartap Singh
1206361
BBA 6th sem
Under the Guidance of:-
Ms. Harwinderpal Kaur Sekhon
Assistant Professor
LALA LAJPAT RAI INSTITUTE OF ENGINEERING AND TECHNOLOGY
MOGA
(2012-2015)

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Table of Contents
Chapters Particulars Page No
Chapter 1 Entrepreneurship
1.1 Meaning and Definitions of Entrepreneurship
1.2 The Benefits of Entrepreneurship
1.3 Factors Affecting Entrepreneurship
1.4 Steps in Setting up a Small Unit
1.5 Skills of Entrepreneur
1.6 Pros and Cons of Entrepreneurship
1-16
1-2
2-4
4-10
10-13
13-15
15-16
Chapter 2 Review of Literature
2.1Review of Literature
2.2Objectives of the Study
17-19
17-19
19
Chapter 3 Research Methodology
3.1 Research Design
3.2 Sampling Design
3.3 Methods of Data Collection
3.4 Limitations of the Study
20-21
20
20
21
21
Chapter 4 Data Analysis & Interpretation 22-34
Chapter 5 Conclusion & Suggestions
5.1 Conclusion
5.2 Suggestions
35-36
35
36
Annexure
Bibliography
Questionnaire
(i)
(ii-iv)

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Chapter 1
Entrepreneurship
1.1 Meaning and Definitions of Entrepreneurship
Entrepreneur is an individual who, rather than working as an employee, runs a small
business and assumes all the risk and reward of a given business venture, idea, or good or
service offered for sale. The entrepreneur is commonly seen as a business leader and
innovator of new ideas and business processes.
Entrepreneurship is the process of starting a business or other organization. The
entrepreneur develops a business model, acquires the human and other required resources,
and is fully responsible for its success or failure. Entrepreneurship operates within an
entrepreneurship ecosystem.
In economics, entrepreneurship combined with land, labor, natural resources and capital can
produce profit. Entrepreneurial spirit is characterized by innovation and risk-taking, and is an
essential part of a nation's ability to succeed in an ever changing and increasingly competitive
global marketplace.
In recent years, "entrepreneurship" has been extended from its origins in business to include
social and political activity. Entrepreneurship within an existing firm or large organization
has been referred to as intrapreneurship and may include corporate ventures where large
entities spin off subsidiary organizations. Entrepreneurs are leaders willing to take risk and
exercise initiative, taking advantage of market opportunities by planning, organizing, and
employing resources, often by innovating new or improving existing products. More recently,
the term entrepreneurship has been extended to include a specific mindset (see also
entrepreneurial mindset) resulting in entrepreneurial initiatives, e.g. in the form of social
entrepreneurship, political entrepreneurship, or knowledge entrepreneurship.
There is no agreement among authors regarding the definitions of Entrepreneurship. Different
authors tried to define it in different manners. This doesn’t mean however that there are no
common elements among authors. Some of the definitions are given below.
According to Ponstadt (1998)
Entrepreneurship is the dynamic process of creating incremental wealth. This wealth is
created by individuals who assume the major risks in terms of equity, time and/or career
commitments of providing values for some product or service. The product or service

4
may/may not be new or unique but value must be infused by the entrepreneur by securing and
allocating the necessary skills and resources.
Furthermore, Timmons (1989) defined it in such a way that:
Entrepreneurship is the process of creating and building something of value from practically
nothing. That is, it is the process of creating or seizing an opportunity and pursuing it
regardless of the resources currently controlled. It involves the definition, creation and
distribution of values and benefits to individuals, groups, organizations and society.
Entrepreneurship is very rarely a get rich-quick proposition (not short term); rather it is one
of building long term value and durable cash flow streams.
In addition, Hisrich (2005 :) defined entrepreneurship as follows:
Entrepreneurship is the process of creating something new with value by devoting the
necessary time and effort, assuming the accompanying financial, psychic, and social risks,
and receiving the resulting rewards of monetary and personal satisfaction and independence.
From the definitions given above, it is possible to conclude that in almost all of the
definitions of entrepreneurship, there is agreement that we are talking about a kind of
behavior that includes: (1) initiative taking, (2) the organizing and reorganizing of social and
economic mechanisms to turn resources and situations to practical account, (3) the
acceptance of risk or failure.
1.2 The Benefits of Entrepreneurship
It is abundantly clear that entrepreneurship is important for economic growth, productivity,
innovation and employment, and many countries have made entrepreneurship explicit policy
priority. Entrepreneurial activities have been recognized as an important element in
organizational and economic development, performance and wealth creation. According to
World Bank (2007), Fox (2001) and Hisrich (2005) entrepreneurship has the following
benefits.
1. Entrepreneurs are their own bosses. They make the decisions. They choose whom to do
business with and what work they will do. They decide what hours to work, as well as what
to pay and whether to take vacations.
2. Entrepreneurship offers a greater possibility of achieving significant financial rewards than
working for someone else.

5
3. It provides the ability to be involved in the total operation of the business, from concept to
design and creation, from sales to business operations and customer response.
4. It offers the prestige of being the person in charge.
5. It gives an individual the opportunity to build equity, which can be kept, sold, or passed on
to the next generation.
6. Entrepreneurship creates an opportunity for a person to make a contribution. Most new
entrepreneurs help the local economy. A few through their innovations contribute to society
as a whole.
7. It is a catalyst for economic change and growth .Entrepreneurship increase per capita
output and income .By doing so it involves initiating and constituting change in the structure
of business and society. As a result entrepreneurship contribute a lot in increasing countries
output and productivity.
8. Entrepreneurship encourages innovation and creativity. It develops new products or service
for the market to fulfill human needs. It also stimulates investment interest in the new
ventures being created. Entrepreneurship through its process of innovation creates new
investment of new ventures .More ventures being created, new jobs will be produced, thus
reduce the unemployment rate. That will Creates and promotes wealth distribution.
As explained above, entrepreneurism helps the economy by creating wealth for many
individuals seeking business opportunities. Although this is not the number one reason
individuals pursue entrepreneur activities, it plays a major role in our economy. Both a new
business and the wealth the owner can obtain will help boost the economy by providing new
products as well as the spending power created for the entrepreneur. Without entrepreneurs,
our economy would not benefit from the boost they give from added business and ideas.
Furthermore, starting a business can be rewarding. Entrepreneurs are their own bosses. They
can have more control over their working hours and conditions than they would have if they
worked for someone else. If they cannot find a job they want, they can go into business to
create one. For example, they may have a new idea about a particular product or service. If
they believe that others would be interested in it, they can go into business for themselves.
They may make a profit, which is the money left over after paying their bills, from being
creative and doing what they enjoy.

6
1.3 Factors Affecting Entrepreneurship
Entrepreneurship is influenced by four distinct factors: economic development, culture,
technological development and education. In areas where these factors are present, you can
expect to see strong and consistent entrepreneurial growth.
These conditions may have both positive and negative influences on the emergence of
entrepreneurship. Positive influences constitute facilitative and conducive conditions for the
emergence of entrepreneurship, whereas negative influences create inhibiting milieu to the
emergence of entrepreneurship.
Let us look at each one of them in details.
1.3.1 Economic Factors
Economic environment exercises the most direct and immediate influence on
entrepreneurship. This is likely because people become entrepreneurs due to necessity when
there are no other jobs or because of opportunity.
The economic factors that affect the growth of entrepreneurship are the following:
1. Capital: Capital is one of the most important factors of production for the establishment of
an enterprise. Increase in capital investment in viable projects results in increase in profits
which help in accelerating the process of capital formation. Entrepreneurship activity too gets
a boost with the easy availability of funds for investment.
Availability of capital facilitates for the entrepreneur to bring together the land of one,
machine of another and raw material of yet another to combine them to produce goods.
Capital is therefore, regarded as lubricant to the process of production.
France and Russia exemplify how the lack of capital for industrial pursuits impeded the
process of entrepreneurship and an adequate supply of capital promoted it.
2. Labor: Easy availability of right type of workers also effect entrepreneurship. The quality
rather than quantity of labor influences the emergence and growth of entrepreneurship. The
problem of labor immobility can be solved by providing infrastructural facilities including
efficient transportation.
The quality rather quantity of labor is another factor which influences the emergence of
entrepreneurship. Most less developed countries are labor rich nations owing to a dense and
even increasing population. But entrepreneurship is encouraged if there is a mobile and

7
flexible labor force. And, the potential advantages of low-cost labor are regulated by the
deleterious effects of labor immobility. The considerations of economic and emotional
security inhibit labor mobility. Entrepreneurs, therefore, often find difficulty to secure
sufficient labor.
3. Raw Materials: The necessity of raw materials hardly needs any emphasis for establishing
any industrial activity and its influence in the emergence of entrepreneurship. In the absence
of raw materials, neither any enterprise can be established nor can an entrepreneur be
emerged
It is one of the basic ingredients required for production. Shortage of raw material can
adversely affect entrepreneurial environment. Without adequate supply of raw materials no
industry can function properly and emergence of entrepreneurship to is adversely affected.
In fact, the supply of raw materials is not influenced by themselves but becomes influential
depending upon other opportunity conditions. The more favorable these conditions are, the
more likely is the raw material to have its influence of entrepreneurial emergence.
4. Market: The role and importance of market and marketing is very important for the
growth of entrepreneurship. In modern competitive world no entrepreneur can think of
surviving in the absence of latest knowledge about market and various marketing techniques.
The fact remains that the potential of the market constitutes the major determinant of
probable rewards from entrepreneurial function. Frankly speaking, if the proof of pudding
lies in eating, the proof of all production lies in consumption, i.e., marketing.
The size and composition of market both influence entrepreneurship in their own ways.
Practically, monopoly in a particular product in a market becomes more influential for
entrepreneurship than a competitive market. However, the disadvantage of a competitive
market can be cancelled to some extent by improvement in transportation system facilitating
the movement of raw material and finished goods, and increasing the demand for producer
goods.
5. Infrastructure: Expansion of entrepreneurship presupposes properly developed
communication and transportation facilities. It not only helps to enlarge the market, but
expand the horizons of business too. Take for instance, the establishment of post and

8
telegraph system and construction of roads and highways in India. It helped considerable
entrepreneurial activities which took place in the 1850s.
Apart from the above factors, institutions like trade/ business associations, business schools,
libraries, etc. also make valuable contribution towards promoting and sustaining
entrepreneurship’ in the economy. You can gather all the information you want from these
bodies. They also act as a forum for communication and joint action.
1.3.2 Social Factors
Social factors can go a long way in encouraging entrepreneurship. In fact it was the highly
helpful society that made the industrial revolution a glorious success in Europe. Strongly
affect the entrepreneurial behavior, which contribute to entrepreneurial growth. The social
setting in which the people grow, shapes their basic beliefs, values and norms.
The main components of social environment are as follows:
1. Caste Factor: There are certain cultural practices and values in every society which
influence the’ actions of individuals. These practices and value have evolved over hundred of
years. For instance, consider the caste system (the varna system) among the Hindus in India.
It has divided the population on the basis of caste into four division. The Brahmana (priest),
the Kshatriya (warrior), the Vaishya (trade) and the Shudra (artisan): It has also defined limits
to the social mobility of individuals.
By social mobility’ we mean the freedom to move from one caste to another. The caste
system does not permit an individual who is born a Shridra to move to a higher caste. Thus,
commercial activities were the monopoly of the Vaishyas. Members of the three other Hindu
Varnas did not become interested in trade and commence, even when India had extensive
commercial inter-relations with many foreign countries. Dominance of certain ethnical
groups in entrepreneurship is a global phenomenon
2. Family Background: This factor includes size of family, type of family and economic
status of family. In a study by Hadimani, it has been revealed that Zamindar family helped to
gain access to political power and exhibit higher level of entrepreneurship.
Background of a family in manufacturing provided a source of industrial entrepreneurship.
Occupational and social status of the family influenced mobility. There are certain
circumstances where very few people would have to be venturesome. For example in a

9
society where the joint family system is in vogue, those members of joint family who gain
wealth by their hard work denied the opportunity to enjoy the fruits of their labor because
they have to share their wealth with the other members of the family.
3. Education: Education enables one to understand the outside world and equips him with
the basic knowledge and skills to deal with day-to-day problems. In any society, the system
of education has a significant role to play in inculcating entrepreneurial values.
In India, the system of education prior to the 20th century was based on religion. In this rigid
system, critical and questioning attitudes towards society were discouraged. The caste system
and the resultant occupational structure were reinforced by such education. It promoted the
idea that business is not a respectable occupation. Later, when the British came to our
country, they introduced an education system, just to produce clerks and accountants for the
East India Company, The base of such a system, as you can well see, is very anti-
entrepreneurial.
Our educational methods have not changed much even today. The emphasis is till on
preparing students for standard jobs, rather than marking them capable enough to stand on
their feet.
4. Attitude of the Society: A related aspect to these is the attitude of the society towards
entrepreneurship. Certain societies encourage innovations and novelties, and thus approve
entrepreneurs’ actions and rewards like profits. Certain others do not tolerate changes and in
such circumstances, entrepreneurship cannot take root and grow. Similarly, some societies
have an inherent dislike for any money-making activity. It is said, that in Russia, in the
nineteenth century, the upper classes did not like entrepreneurs. For them, cultivating the land
meant a good life. They believed that rand belongs to God and the produce of the land was
nothing but god’s blessing. Russian folk-tales, proverbs and songs during this period carried
the message that making wealth through business was not right.
5. Cultural Value: Motives impel men to action. Entrepreneurial growth requires proper
motives like profit-making, acquisition of prestige and attainment of social status. Ambitious
and talented men would take risks and innovate if these motives are strong. The strength of
these motives depends upon the culture of the society. If the culture is economically or
monetarily oriented, entrepreneurship would be applauded and praised; wealth accumulation
as a way of life would be appreciated. In the less developed countries, people are not

10
economically motivated. Monetary incentives have relatively less attraction. People have
ample opportunities of attaining social distinction by non-economic pursuits. Men with
organizational abilities are, therefore, not dragged into business. They use their talents for
non-economic end.
1.3.3 Psychological Factors
Many entrepreneurial theorists have propounded theories of entrepreneurship that concentrate
especially upon psychological factors. These are as follows :
1. Need Achievement: The most important psychological theories of entrepreneurship was
put forward in the early) 960s by David McClelland. According to McClelland ‘need
achievement’ is social motive to excel that tends to characterise successful entrepreneurs,
especially when reinforced by cultural factors. He found that certain kinds of people,
especially those who became entrepreneurs, had this characteristic. Moreover, some societies
tend to reproduce a larger percentage of people with high ‘need achievement’ than other
societies. McClelland attributed this to sociological factors. Differences among societies and
individuals accounted for ‘need achievement’ being greater in some societies and less in
certain others.
The theory states that people with high need-achievement are distinctive in several ways.
They like to take risks and these risks stimulate them to greater effort. The theory identifies
the factors that produce such people. Initially McClelland attributed the role of parents,
specially the mother, in mustering her son or daughter to be masterful and self-reliant. Later
he put less emphasis on the parent-child relationship and gave more importance to social and
cultural factors. He concluded that the ‘need achievement’ is conditioned more by social and
cultural reinforcement rather than by parental influence and such related factors.
2. Withdrawal of Status Respect: There are several other researchers who have tried to
understand the psychological roots of entrepreneurship. One such individual is Everett Hagen
who stresses the-psychological consequences of social change. Hagen says, at some point
many social groups experience a radical loss of status. Hagen attributed the withdrawal of
status respect of a group to the genesis of entrepreneurship.
Hage believes that the initial condition leading to eventual entrepreneurial behavior is the loss
of status by a group. He postulates that four types of events can produce status withdrawal:

11
1. The group may be displaced by force;
2. It may have its valued symbols denigrated;
3. It may drift into a situation of status inconsistency; and
4. It may not be accepted the expected status on migration in a new society.
3. Motives: Other psychological theories of entrepreneurship stress the motives or goals of
the entrepreneur. Cole is of the opinion that besides wealth, entrepreneurs seek power,
prestige, security and service to society. Stepanek points particularly to non-monetary aspects
such as independence, persons’ self-esteem, power and regard of the society.
On the same subject, Evans distinguishes motive by three kinds of entrepreneurs
1. Managing entrepreneurs whose chief motive is security.
2. Innovating entrepreneurs, who are interested only in excitement.
3. Controlling entrepreneurs, who above all otter motives, want power and authority.
Finally, Rostow has examined inter gradational changes in the families of entrepreneurs. He
believes that the first generation seeks wealth, the second prestige and the third art and
beauty.
4. Others: Thomas Begley and David P. Boyd studied in detail the psychological roots of
entrepreneurship in the mid-1980s. They came to the conclusion that entrepreneurial attitudes
based on psychological considerations have five dimensions:
1. First came ‘need-achievement’ as described by McClelland. In all studies of
successful entrepreneurs a high achievement orientation is invariably present.
2. The second dimension that Begley and Boyd call ‘locus of control’ This means that
the entrepreneur follows the idea that he can control his own life and is not influenced
by factors like luck, fate and so on. Need-achievement logically implies that people
can control their own lives and are not influenced by external forces.
3. The third dimension is the willingness to take risks. These two researchers have come
to the conclusion that entrepreneurs who take moderate risks earn higher returns on
their assets than those who take no risks at all or who take extravagant risks.

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4. Tolerance is the next dimension of this study. Very few decisions are made with
complete information. So all business executives must, have a certain amount of
tolerance for ambiguity.
5. Finally, here is what psychologists call ‘Type A’ behavior. This is nothing but “a
chronic, incessant struggle to achieve more and more in less and less of time”
Entrepreneurs are characterize by the presence of ‘Type A’ behavior in all their
endeavors
1.3.4 Technological factors:
Technological advancements and cheap availability of technology induce a person to
introduce new products, improve the quality of existing products and start high-tech
enterprises. For example, due to technological advancements entrepreneurship has flourished
in the sectors like infrastructure, non-conventional energy, construction, automobiles,
information technology.
1.3.5 Political factors:
Political stability, attitude and policy of the government towards business, stable policy,
maintenance of law and order and such political factors stimulates entrepreneurship, attract
domestic and foreign entrepreneurs in various fields. For example, stable and democratic
government, feeling of security, rule of raw has attracted huge foreign investments. The
liberalization, privatization and globalization policy in the country has provided greater scope
to private sector to establish, expand and diversify the enterprises. Steps like incentives, tax
holiday benefits, cheap credit facility, export promotion measures and assistance for
technological up-gradation have given impetus to entrepreneurial development in the country.
1.4 Steps in Setting up a Small Unit
Scanning of Business Environment It is essential on the part of the entrepreneur to study
and understand the prevailing business environment. Entrepreneur should scan the business
opportunities and threats in the new environment. To study the administrative framework,
procedure, rules and regulations and other formalities implemented by the government. The
potential entrepreneur must assess his own deficiencies, which he can compensate through
training.

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Selection of the Product: The very success of one’s venture will depend on the rationality of
his decision in this regard. The economic viability of the product can be ascertained by
considering certain demand aspects such as volume of demand in the domestic market,
volume of demand in the export market, volume of potential demand, a degree of substitution
of an existing product etc. The prospective entrepreneur has to identify the product based on
market research or market survey.
Selection of Form of Ownership: He has to select sole proprietorship or family ownership
or partnership or private limited company as the form of the ownership.
Selection of Location and Site: Location is selected after considering certain factors such as
nearness to market, sources of material and labour, modern infrastructure facilities etc. The
entrepreneur has to choose a suitable plot for the factory. He may purchase land directly or
choose from an industrial area developed by State Development Corporations like SIDCO, or
Directorate of Industries.
Designing Capital Structure: Apart from the own capital, he may secure finance from
friends and relatives, term loans from banks and financial institutions.
Acquiring Manufacturing Know-How or Technology: Many institutions of government,
research laboratories, research and development divisions of big industries and certain
consultancy agencies provide the manufacturing know-how.
Preparation of Project Report: The report usually covers important items like sources of
finance, availability of machinery and technical know-how, sources of raw material and
labour, market potential and overall profitability.
Registration as a Small Scale Industry: Registration with Department of industries and
Commerce is only optional. There is no statutory obligation, but small scale industries can
avail various facilities, incentives and concessions offered by the state as well as central
government only if they registered as SSI. The registration would be done in two stages:-

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Provisional Registration: It will be valid for one year with possible three extensions of six
months each. It helps entrepreneur to take necessary steps to bring the units into existence.
The provisional registration may enable the party to:
(1) Apply to NSIC (National Small Industries Corporation)/SIDO (Small Industries
Development Corporation) and other institutions for procuring machines on H.P basis.
(2) Apply for power connection.
(3) Apply to local Bodies for permission to construct the shed to establish a unit.
(4) Apply for financial assistance to SFC State Financial Corporation/Banks or other financial
institutions on the basis of project report.
(5) Obtain sales tax, excise registration etc. whenever required.
(6) Apply for a shed in an industrial estate/ development site in an industrial area/ material for
construction of shed as the case may be.
Obtaining Statutory License: Any person should obtain the following licenses and
certificates before starting the venture:
(A) License from Local Bodies For
(1) Construction of the building.
(2) Installation of plant and machinery.
(B) License from the Directorate of Factories and Boilers For:
(1) Approval of factory building.
(2) Registration under section 6, 7 and 85 of the Factory Act.
(C) No Objection Certificate from State Pollution Control Board.
Apply for Power Connection: There are 2 categories of power, the Low Tension (LT) and
High Tension (HT). A consumer can avail LT only if the connected load is 75 HP and below.
If connected load is between 75 HP and 130 HP, the consumer has the option to avail either
LT supply or HT supply
.
Arrangement of Finance: Entrepreneur needs to acquire assists of 2 kinds namely Fixed
assets and current assets. Long term finance is needed to acquire fixed assets like land,
building, plant and machinery and for security deposits. Short term funds are required for
acquiring current assets. Current assets are essential for the day to day working of the
industry. Long term funds includes owner’s capital, subsidy from central/ state govt.,

15
personal borrowings from friends and relatives and long term loans from financial institution
like PFC (Punjab Finance Corporation)
Registration under the Sales Tax Act: Business enterprises are subject to three important
taxes- Income Tax, Excise Duty and Sale Tax. Income tax is levied on income as defined
under the IT Act of 1961. It is revenue of Central Government. Excise duty is a tax levied by
the central Government. It is the duty levied on the cost of goods manufactured within a
country. Sales tax is levied whenever goods are purchased from within the state. When goods
are purchased from outside the state, Central Sales Tax is levied. Application for registration
should mention all places of business dealer including the godown in which the goods are
stored. The following papers are to be submitted for registration.
1) Application for registration in Form 1 duly signed.
2) Counterfoil of challan for Rs. 100 towards registration fees.
3) Return of Estimated Annual Turnover in Form No. 10.
On the basis of declaration of the anticipated turn over and nature of turnover, registering
authority may demand security, which is normally ½ times of the anticipated tax due.
13) Installation of Machinery: Machinery should preferably be installed as per the plant
layout.
1.5 Skills of Entrepreneur
These employees are often called “intrapreneurs.” They keep companies fresh, exciting and
profitable. At Villanova University, where I am Director of Engineering Entrepreneurship,
we certainly do not discourage interested students from creating startups; in fact we celebrate
them. But we make sure they are well trained and aware of all of the difficulties involved.
Rather than being startup-centric, we focus our efforts on forming entrepreneurially minded
graduates who can contribute to the success of any company, new or old. Villanova is not the
only institution of higher education taking this approach. The university has joined other like-
minded schools across the U.S. to work closely together in the Kern Entrepreneurship
Education Network (KEEN). The network is supported by the Kern Family Foundation and
focuses on fostering an entrepreneurial mindset in engineers for the purpose of strengthening
the U.S. economy.
The entrepreneurial mindset is not just for engineers though, it is for everyone.

16
1. Resiliency. The ability to weather the ups and downs of any business since it never
goes exactly the way the business plan described it. This skill enables the entrepreneur
to keep going when the outlook is bleak.
2. Focus. After setting a long term vision, knowing how to “laser focus” on the very
next step to get closer to the ultimate goal. There are so many distracting forces when
trying to build a business that this skill is not easy to master.
3. Invest for the long-term. Most entrepreneurs are not patient and focus only on what
comes next, rather than where the company needs to go. Overnight success may take
7 to 10 years. Entrepreneurs need to stop, pause and plan on a quarterly basis.
4. Find and manage people. Only by learning to leverage employees, vendors and other
resources will an entrepreneur build a scalable company. They need to learn to
network to meet the right people. Entrepreneurs strive to guarantee they will get
honest and timely feedback from all these sources.
5. Sell. Every entrepreneur is a sales person whether they want to be or not. They are
either selling their ideas, products or services to customers, investors or employees.
They work to be there when customers are ready to buy. Alternately, they know how
to let go and move on when they are not.
6. Learn. Successful entrepreneurs realize they don’t know everything and the market is
constantly changing. They stay up to date on new systems, technology, and industry
trends.
7. Self-reflection. Allow downtime to reflect on the past and plan for the future. Always
working only leads to burnout physically and emotionally.
8. Self-reliance: While there is a lot of help for the entrepreneur, in the end, they need to
be resourceful enough to depend on themselves.
And that’s just the point. We focus on teaching 20 skills needed by all entrepreneurs to
become valuable contributors to the success of their companies. These skills, that we call the
KEEN Student Outcomes (KSOs), are being nurtured in all of our students. We believe all
entrepreneurs should be able to:
1. Exercise curiosity about the surrounding world.
2. Define problems, opportunities, and solutions in terms of value creation.

17
3. Assess and manage risk.
4. Persist through and learn from failure.
5. Demonstrate resourcefulness.
6. Anticipate technical developments by interpreting surrounding societal and economic
trends.
7. Identify new business opportunities.
8. Apply creative thinking to ambiguous problems.
9. Apply systems thinking to complex problems.
10. Examine technical feasibility, economic drivers, societal and individual needs.
11. Act upon analysis.
12. Collaborate in team settings.
13. Understand the motivations and perspectives of stakeholders.
14. Communicate technology solutions in economic terms.
15. Substantiate claims with data and facts.
16. Pursue personal fulfillment as a member of a profession that creates value.
17. Identify personal passions and develop a plan for professional development.
18. Fulfill commitments in a timely manner.
19. Discern and pursue ethical practices.
20. Contribute to society as an active citizen.
1.6 Pros and Cons of Entrepreneurship
Pros Cons
Excitement: Due to its high capacity for risk,
there is a lot of adventure.
Salary: Starting your own business means
that you must be willing to give up the
security of a regular paycheck.
Rules and regulations: Work in a current Benefits: There will undoubtedly be fewer

18
job is difficult to do because of all the "red
tape" and consistent administration approval
needed
benefits, especially when considering that
your business will be just starting off.
Originality: Some people feel that they can
offer a new service/product that no one else
has offered before.
Work schedule: The work schedule of an
entrepreneur is never predictable; an
emergency can come up in a matter of a
second and late hours will have to be put in.
Competition: Employees feel they can offer
their current company's product/service at a
lesser expense to the public.
Administration: All the decisions of the
business must be made on your own; there is
no one ranked higher than you on the chain
of command in your business.
Independence: Some people wish to be their
own boss and make all the important
decisions him/herself.
Incompetent staff: Often times, you will
find yourself working with an employee who
"doesn't know the ropes" as well as you do
due to lack of experience.
Salary potential: Generally, people want to
be paid for the amount of work they do In
full; they do not want to be "short-changed."
Procedures: Many times during your
entrepreneurial life, you will find that many
policies do not make sense, nor will they ever
Make sense.
Flexibility: Entrepreneurs can schedule their
work hours to spend quality time with family
or any other reason.
Freedom: Entrepreneurs can work whenever
they want, wherever they want, and however
they want.

19
Chapter 2
Review of Literature
2.1 Review of Literature
Krueger and Brazeal (1994) - This paper offers a social psychology perspective of
entrepreneurial potential. This approach is process-based and theory-driven. The proposed
model draws upon a powerful literature on intentions and the much-ignored work. Those who
wish to find the entrepreneur in entrepreneur need to employ social cognitive process models
that explicitly recognize the central role of perceived, enacted reality.
Gatewood, Shaver and Gartner (1995) - The purpose of this study was to explore whether
certain factors of potential entrepreneurs can be used to predict their subsequent persistence
in business start-up activities and in new venture creation success. Two hypotheses were
tested:
H1: Potential entrepreneurs who offer internal and stable explanations for their plans for
getting into business.
H2: Potential entrepreneurs with high personal efficacy scores.
Vivarelli (2004) – While the vast economic literature on entry has been recently
accompanied by a growing literature on the post-entry performance of newborn firms, still
few studies propose a connection between the two phenomena. Exploiting the opportunity of
using data concerning potential entrepreneurs, this study attempts to relate ex-ante economic,
individual and environmental features to both the decision to start a new firm and – in the
case of actual foundation – to the post-entry performance exhibited by the newborn firm.
Fitzsimmons, Jason and Douglas (2007) - The intention of an individual to behave
entrepreneurially arises because the entrepreneur perceives self-employment to be utility-
maximizing, and thus forms the motivation to behave entrepreneurially. As argued elsewhere,
the intention to behave entrepreneurially depends on the human capital of the individual.
Here we argue that human capital includes not only personal abilities and social capital. Thus
the motive for pursuing self-employment (or any other entrepreneurial behaviour) is
considered as a function of an individual’s abilities and attitudes. This study investigated the
relationship between entrepreneurial attitudes and abilities and entrepreneurial intentions.

20
Koellinger (2008) - Entrepreneurs differ in the degree and type of novelty that they introduce
to the economy. This study provides theoretical insights and empirical evidence on the
emergence of entrepreneurial innovativeness. The results suggest that entrepreneurial
innovativeness depends both on individual factors and on the environment in which the
individual acts. In particular, high educational attainment, unemployment, and a high degree
of self-confidence are significantly associated with entrepreneurial innovativeness at the
individual level. Furthermore, the distribution of innovative and imitative entrepreneurship
varies across countries. Entrepreneurs in highly developed countries are significantly more
likely to engage in innovative rather than purely imitative activities.
Turker and Selcuk (2009) - Fostering entrepreneurship needs a twofold policy that should
focus on both the current situation and future prospect of entrepreneurship. Although many
scholars and policy makers devote their attention to the first foci of issue, it is equally
important to map out the future context of entrepreneurship.
Liñán, Rodríguez and Rueda (2011) - A considerable agreement exists about the
importance of promoting entrepreneurship to stimulate economic development.
Entrepreneurship education has been considered one of the key instruments to increase the
entrepreneurial attitudes of both potential and nascent entrepreneurs. Nevertheless, the factors
that determine the individual’s decision to start a venture are still not completely clear.
Cognitive approaches have attracted considerable interest recently.. Therefore, there is a need
to clarify which elements play the most influential role in shaping the personal decision to
start a firm.
Duysters, Zhang and Cloodt (2014) -Using theory of planned behavior and entrepreneurial
event model as well as entrepreneurial cognition theory, we attempt to identify the
relationship between entrepreneurship education, prior entrepreneurial exposure, perceived
desirability and feasibility, and entrepreneurial intentions. The data were collected from a
survey of ten universities. There is a significant negative impact from exposure and a
significant positive impact from entrepreneurship education. Males and people from
technological universities and/or backgrounds have higher EI than females and people from
other universities and backgrounds.

21
Sharma and Madan (2014) - In this study we have tried to examine the effect of individual
factors like intelligence, past self-employment experience, past work experience and
educational course of professional students on their decision to take up entrepreneurship as a
career choice. It is a quantitative study wherein we have taken data of 530 young students
studying in the final year of various professional courses. The student target population
chosen for this study was in the age group of 20–24 years. The results showed that past self-
employment experience has a negative impact on student’s entrepreneurial inclination.
Soomro and Shah (2015) - The purpose of this paper is to explore the attitudes and
intentions of individuals towards entrepreneurship with the support of theory of planned
behavior . This research may contribute to the growing body of knowledge that has begun to
explore attitudes and intentions of individuals for self-employment in a developing country.
2.2 Objectives of the study
 To study the various skills required for an Entrepreneur.
 To know the views of potential entrepreneurs for starting a new venture.

22
Chapter 3
Research Methodology
“Research means the systematic gathering, recording, analyzing of data about problems
relating to the marketing of goods and services”.
According to Clifford Woody, “research comprises of defining and redefining problem,
formulating hypothesis or suggested solutions, collecting, organizing and evaluating data,
reaching conclusions, testing conclusions to determine whether they fit the formulated
hypothesis”
3.1 Research Design
Research design is the conceptual structure with in which research is conducted.
Research design is a basic framework, which provides guidelines for the rest of the research
process. It is a map or a blueprint according to which the research is to be conducted.
The research design is descriptive in nature by keeping in mind the established objectives.
3.2 Sampling Design
I have design a sampling plan that is consist of three decisions:
I) Universe:
The universe chosen for the research study is the students of MBA final year of Moga.
II) Sample Size:
Sample size means limited numbers of respondents covered under the research study from a
population. Personal interviews are conducted with students of MBA and those who want to
become entrepreneurs are selected. I have taken a survey of 20 respondents who want to
become entrepreneur.
III) Sampling Types:
For this purpose, I have used non probability convenience sampling

23
3.3 Method of Data Collection
A) Sources of Data Collection:
Basically there are two types of data i.e. primary and secondary
 Primary Data
It is the first hand data which do not exist in any record or publication. Primary data
collected in this study is through personal interview with the respondents & by using
questionnaire.
 Secondary Data
Secondary data’s are in the form of finished products as they have already been
treated statistically in some form or other. The secondary data mainly consists of data
and information collected from records, Company websites and also discussion with
the management of the organization.
The methodology for collecting data with reference to the secondary data was taken
from the following:-
1. Books
2. Internet
B) Data collection Tools and Techniques Analysis
 To conduct a survey, I have selected a structured questionnaire as an
instruction for gathering valuable information from the customers. Questionnaire,
which is used for the survey, is consisting of questions.
 For the purpose of analysis raw data was summarized into a master table and from
this table the result have been carried out. The request, which had alternative choices,
was analyzed by taking percentages.
 The collective data has been analyzed with percentage method and Likert scale.
3.4 Limitations of Study:
1. Sample size was limited.
2. Time period was short to conduct the study.
3. Unfavorable attitude of the respondents.

24
Chapter 4
Data Analysis and Interpretation
4.1 Respondents with Business Idea
Table 4.1 showing the number of respondents with business idea
Option Respondents Percentage %
Yes 20 100
No 0 0
Fig 4.1
Interpretation
All the respondents have business ideas but all the idea are different some respondents like to
start Restaurant, Stock Broker, Rice mills etc.
100%
0%
Yes
No

25
4.2 Requirement of Adequate Experience
Table 4.2 showing requirement of adequate experience
Yes 17 85
No 3 15
Fig 4.2
Interpretation: Out of 100% respondents, 85% respondents have the required skills of their
business idea, the rest 15% does not.
85%
15%
Yes
No

26
4.3 Skills and Knowledge in Marketing and Finance
Table 4.3 Showing skills and knowledge in marketing and finance
Yes 17 85
No 3 15
Fig 4.3
Interpretation: The above chart shows that 85% respondents have the skills for marketing
and finance and 15% does not.
85%
15%
Yes
No

27
4.4 Idea of Location for the Proposed Business
Table 4.4 showing Idea of location for the proposed business
Yes 20 100
No 0 0
Fig 4.4
Interpretation: The above chart shows that the all the respondents have the idea of location
for their proposed business. They would like to start business the locations nearby to their
hometown.
100%
0%
Yes
No

28
4.5 Willingness to Work Hard for Long Hours without or with Little Immediate
Compensation
Table 4.5 showing Willingness to work hard for long hours without or with little immediate
compensation
Yes 18 90
No 2 10
Fig 4.5
Interpretation: From the above chart we concluded that 90% of the respondents have the
willingness to work for long hours with little but not immediate compensation, the rest 10%
does not.
90%
10%
Yes
No

29
4.6 Responsibility of Own Action
Table 4.6 showing responsibility of own action
Yes 20 100
No 0 0
Fig 4.6
Interpretation: All the respondents are willing to take the responsibility of their own actions.
100%
0%
Yes
No

30
4.7 Suppliers Necessary to Start-Up a Business
Table 4.7 showing that suppliers necessary to start-up a business
Yes 18 90
No 2 10
Total 20 100
Fig 4.7
Interpretation: The above chart shows that out of 100% respondents, only 10% doesn’t
know the required suppliers, the rest 90% does.
90%
10%
Yes
No

31
4.8 Need of Geographical Area for the Product or Service You are Intending to Offer
Table 4.8 showing that need of geographical area for the product or service intending to offer
Yes 19 95
No 1 5
Total 20 100
Fig 4.8
Interpretation: Only 5% does not need the geographical place for the products and services
they are intended to offer, the rest 95% does.
95%
5%
Yes
No

32
4.9 Availability of Required Funds for Startup of Business
Table 4.9 showing availability of required funds for startup of business
Yes 14 70
No 6 30
Fig 4.9
Interpretation: Out of 100% respondents 70% have the required funds and the 30% does not
the required funds.
70%
30%
Yes
No

33
4.10 Availability of Required Funds for the Subsequent years of Operation of your
Enterprise
Table 4.10 showing availability of required funds for the subsequent years of operation of
your enterprise
Yes 11 55
No 9 45
Fig 4.10
Interpretation: The above chart shows that 55% have the adequate funds for subsequent
years of operations and the other 45% does not have enough funds.
55%
45%
Yes
No

34
4.11 Preference For Financial Help
Table 4.11 showing preference for financial help
Bank Loan 15 75
Money Lender 1 5
Financial Institutions 2 10
Govt. Subsidy 2 10
Fig 4.11
Interpretation: The above chart shows that 5% of respondents prefer money lenders, 10% of
them prefer financial institutions and government subsidy each and the majority is 75% that
prefer bank loans.
75%
5%
10%
10%
Bank Loan
Money Lender
Financial Institutions
Govt. Subsidy

35
4.12 Factor Affecting the Potential Entrepreneurs
Table 4.12 showing factor affecting the potential entrepreneurs
4.12.1 Internal Factor
Factor Strongly
agree
Agree Neutral Disagree Strongly
Disagree
Ambition 12 5 3 0 0
Self-Reliance 9 6 5 0 0
Supportive
Factors
5 9 6 0 0
X = ∑X/n = 89/20 = 4.45 = 4
X = ∑X/n = 84/20 = 4.20 = 4
X = ∑X/n = 79/20 = 3.95 = 4
Fig 4.12.1
Interpretation:
The above table shows that all the respondents agree that the internal factors namely
ambition, self-reliance and supportive factors affect the potential of entrepreneurs.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Ambition Self-Reliance Supportive
Factors
Internal Factors

36
4.12.2 External Factors
Factor Strongly
agree
Agree Neutral Disagree Strongly
Disagree
Economic 10 8 2 0 0
Social 5 8 7 0 0
Technological 7 5 6 2 0
Marketing 11 8 1 0 0
Political 1 5 11 3 0
X = ∑X/n = 88/20 = 4.40 = 4
X = ∑X/n = 78/20 = 3.90 = 4
X = ∑X/n =77/20 = 3.85 = 4
X = ∑X/n = 90/20 = 4.50 = 5
X = ∑X/n = 64/20 = 3.20 = 3
Fig 4.12.2
Interpretation:
The above table shows that the respondents agree that external factors namely economic,
social, technological affects the potential of entrepreneur whereas the respondents strongly
agree that the marketing factor affects the potential of entrepreneur and respondents are
neutral for political factor that they affect the potential of entrepreneurs.
0
1
2
3
4
5
6
Economic Social Technological Marketing Political
External Factors

37
Chapter 5
Conclusion and Suggestions
5.1 Conclusion
From the above study it can be concluded that all the respondents have business ideas but all
the idea are different some respondents like to start Restaurant, Stock Broker, Rice mills etc.
Most of the people have the business idea for a venture but they are just step behind as so of
them do not have adequate funds to turn their idea into a business venture. Financial help is
considered to be very important in order to start a business and in order to continue it. Most
of the businesses fail because they tend to have the funds for the start-up but does not have
subsequent funds for the regular operations of the business. There are various factors that also
affect the entrepreneurial qualities of a person. These factors are internal and external. The
major external factor is the economic conditions of the country in which the potential
entrepreneur exists. The internal factors are ambition to run to your own business and the
determination to be self-reliant. The potential entrepreneurs rely strongly on bank loans in
case of shortage of funds for the financial help and tend to avoid the other sources.
The main quality of an entrepreneur is to be responsible for all the failures and success that
comes his way. Most of the potential entrepreneurs are willing to take the responsibility for
all of their actions.

38
5.2 Suggestions:
 The economic policies should be a little more flexible for the growth of entrepreneurs.
 The business environment should be critically checked before the launch of a venture.
 Financial position should be carefully considered before the start of a venture
 Entrepreneurial ideas should be feasible and no time should be wasted for a useless
business idea
 Economic and technical factor affecting the new venture should be critically examined.

39
Bibliography
Krueger, N. F., Brazeal, D. V., (1994), “Entrepreneurial Potential And Potential
Entrepreneurs”, Entrepreneurship theory and practice, pp 91-101
Gatewood, E. J., Shaver K. G. & Gartner W. B.(1995), “A longitudinal study of cognitive
factors influencing start-up behaviors and success at venture creation”, Journal of business
venturing, 10(5), pp 371–391.
Vivarelli, M. (2004), “Are All the Potential Entrepreneurs So Good”, Small Business
Economics 23(1), pp 41-49
Koellinger, P. (2008), “Why are some entrepreneurs more innovative than others”, Small
Business Economics, 31(1), pp 21-37
Turker, D. & Selcuk, S. S. (2009), “Which factors affect entrepreneurial intention of
university students”, Journal of European Industrial Training, 33(2), pp 142-159
Liñán, F., Rodríguez, J. C. & Rueda, J. M. (2011), “Factors affecting entrepreneurial
intention levels: a role for education”’ International Entrepreneurship and Management
Journal, 7(2), pp 195-218
Zhang, Y., Duysters, G. & Cloodt, M. (2014), “The role of entrepreneurship education as a
predictor of university students’ entrepreneurial intention”, International Entrepreneurship
and Management Journal, 10(3), pp 623-641
Sharma, L. & Madan, P. (2014), “Effect of individual factors on youth entrepreneurship”,
Journal of Global Entrepreneurship Research, 2(3)
Soomro, B. A. & Shah, N. , (2015)’ “Developing attitudes and intentions among potential
entrepreneurs”, Journal of Enterprise Information Management, 28(2), pp 304-322
Websites
http://www.forbes.com/sites/aileron/2013/11/26/the-top-skills-every-entrepreneur-needs/
http://www.businessinsider.com/skills-of-successful-entrepreneurs-2014-1
http://en.wikipedia.org/wiki/Entrepreneurship
http://www.investopedia.com/terms/e/entrepreneur.asp
http://www.admissionresultbd.com/2013/11/factors-affecting-entrepreneurial.html

40
ANNEXURE
QUESTIONNAIRE
Dear respondent,
I am a student of 6BBA of the Management Department in Lala Lajpat Rai
Institute of Engineering and Technology. I need your cooperation for completing my survey.
The information provided to you will be kept confidential and will be used only for research
and academic purposes.
Personal information:
Name:
Age:
Occupation:
Qualification:
Q.1- Do you have any business idea?
4Yes
No
If yes then specify _______________________
Q.2- Do you have the adequate required experience in type of business you are intending?
Yes
No
Q.3- Do you have skills and knowledge in marketing and finance?
Yes
No
Q.4- Do you have a location in mind for your proposed business?
Yes
No
If yes then specify _______________________
Q.5- Are you willing to work hard for long hours without or with little immediate compensation?
Yes
No

41
Q.6- Do you like to be responsible for what you do?
Yes
No
Q.7- Do you know the supplier necessary for your business to start?
Yes
No
Q.8- Is there a needinyourgeographical area for the product or service you are intending to offer?
Yes
No
Q.9- Do you have sufficient funds for the initial startup of business?
Yes
No
Q.10- Do you have enough funds for the subsequent years of operation of your enterprise?
Yes
No
Q.11- From which of the following options you would like to approach for financial help?
a) Bank Loan
b) Money Lender
c) Financial Institutions
d) Govt. Subsidy
Q.12- Do you think that the following factor affect the potential entrepreneurship?
Internal Factor
Factors StronglyAgree Agree Neutral Disagree Strongly
Disagree
Ambition
Self - Reliance
Supportive
Factor

42
External Factor
Factors StronglyAgree Agree Neutral Disagree Strongly
Disagree
Economic
Social
Technological
Marketing
Political

4000

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