This document provides definitions and concepts related to entrepreneurs and entrepreneurship. It begins by defining an entrepreneur as someone who undertakes economic opportunities by combining resources in new ways. Several classical definitions are provided, including entrepreneurs bearing risks and introducing innovations. The document then discusses entrepreneurial characteristics like achievement motivation, risk-taking, and identifying opportunities. It covers theories of entrepreneurship such as those focusing on opportunities, entrepreneurs' traits, and decision-making. Finally, the document briefly discusses the scope for entrepreneurship in agriculture and different models of entrepreneurship.

1. Prepared and Presented by
Santosh Khanal
Assistant Professor
IAAS, TU

2. Who is an Entrepreneur?

3. Here we go !!!
 The word “Entrepreneur” is derived from the French verb
‘entrepredre’.
 It means ‘to undertake’.
To undertake what ???

4. Concept of Entrepreneur
 From here, various concepts evolved for defining the word
entrepreneur.
 Various concepts of entrepreneurs include:
 Entrepreneur is an economic agent
 An entrepreneur is an individual with knowledge, skills,
initiative, drive and spirit of innovation
 Entrepreneurs have role in the development of a country
 Entrepreneurs always aim at achieving the goal
 An entrepreneur identifies opportunities and seizes
opportunities for economic benefits
 An entrepreneur is the catalyst for social change and works for
the common good

5. Try defining entrepreneurs !!

6. Let’s See Some Definitions !
 According to J.B. Say, “ An Entrepreneur is the economic agent
who unites all means of production, land of one, the labour of
another and the capital of yet another and thus produces a
product. By selling the product in the market the pays rent of
land, wages to labour, interest on capital and what remains is his
profit”.
 According to Joseph Schumepeter, “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 market and the like”.
 So, an entrepreneur can be understood as an organizer who
combines various factors of production to produce a socially
viable product.

7. Who is an Entrepreneur?

8. What is entrepreneurship
then?

9. Concept of Entrepreneurship
 The term ‘entrepreneurship’ is often used synonymously with the
term ’Entrepreneur’ though, they are two sides of the same coin,
conceptually they are different
 Entrepreneurship is the process of identifying opportunities in
the market place, arranging the resources required to pursue
these opportunities and investing the resources to exploit the
opportunities for long term gains.
 It involves creating wealth by bringing together resources in new
ways to start and operate an enterprise.
 According to Cole “Entrepreneurship is the purposeful activity of
an individual or a group of associated individuals undertaken to
initiate, maintain and aggrandize profit by production or
distribution of economic goods and services”.
 To conclude, entrepreneurship is set of activities performed by an
entrepreneur thus, entrepreneur proceeds entrepreneurship.

11. Entrepreneurial Behaviour
 Entrepreneur is a key figure in economic progress.
 He is the person who introduces new things in the economy.
 He is considered as the business leader and not as simple
owner of capital.
 He is a person with telescopic faculty, drive and talent who
perceives business opportunities and promptly seizes them
for exploitation.
 Thus, an entrepreneur is a character who combines
innovativeness, readiness to take risk, sensing opportunities,
identifying and mobilizing potential resources, concerns for
excellence and who is persistent in achieving the goal

12. Contd…
 To be successful, an entrepreneur should have the following
characteristic features:
1. Need to achieve:
 Entrepreneurs have got strong desire to achieve higher goals.
 Their inner self motivates their behaviour towards high
achievement: most of the people dream of success but do not take
any action towards achieving these dreams.
 For them, winning is achievement.
2. Independence:
 Most of the entrepreneurs start on their own because they dislike to
work for others.
 They prefer to be their own boss and want to be responsible for
their own decisions.

13. Contd…
3. Risk-bearing:
 Entrepreneurs are the persons who take decisions under uncertainty and
thus they are willing to take risk, but they never gamble with the results.
 They choose moderate risk rather than play wild gamble.
4. Locus of control:
 Entrepreneurs believe in their own ability to control the consequences of
their endeavour by influencing their socio-economic environment rather
than leave everything to luck.
5. Perseverance:
 Entrepreneur has got the quality of sticking to job he decides to undertake.
 Once committed to a specific goal and course of action, entrepreneurs
become absorbed to it.
 They personally solve the problems that come across their way while
setting up the project.
 They also work sincerely until the whole project is successfully
implemented.

14. Contd…
6. Positive self-concept:
 Entrepreneurs are always positive in their action.
 Being an achiever, he directs his fantasies and dreams towards
achievement of worthwhile goals and sets extraordinary standard of
excellence in what he is doing.
 This is based upon his awareness of SWOT analysis, i.e. his
strengths, weaknesses, opportunities and threats.
 He utilizes his positive knowledge to support his thinking.
 He never exhibits any negative attitude.
7. Ability to find and explore opportunities:
 Entrepreneurs are always alert to opportunities.
 They are very much quick to see and grab opportunities.
 They exhibit an innovative turn of mind and convert the problems
into viable opportunities.
 They plan intellectually and anticipate carefully how to achieve
their goals in realizing an opportunity.

15. Contd…
8. Hope of success:
 Hope of success is a significant quality of entrepreneurial
personality. E
 ntrepreneurs set their goals with a hope of success rather than fear
of failure.
9. Flexibility:
 Most of the successful entrepreneurs measure the pros and cons of
a decision and tend to change if the situation demands.
 They are the persons with open mind without rigidity.
10. Analytical ability of mind:
 Entrepreneurs are unaffected by personal likes and dislikes.
 At the time of their need they select experts rather than friends and
relatives to assist them.
 They usually avoid emotional and sensitive attitude towards their
business or problem.

16. Contd…
Some other entrepreneurial characteristics are:
 Sense of Efficacy
 Openness to feedback and learning from experiences
 Confronting uncertainty
 Interpersonal skills
 Need to influence others
 Stress takers
 Time orientation
 Innovators
 Business communication skills
 Leadership
 Telescopic faculty
 Business planning, etc.

17. Entrepreneurship in Agriculture
 Agriculture is the mainstay of the Nepalese economy because
of its high share in employment and livelihood creation.
 Still, 60.4% of Nepalese population is agriculture dependent
and almost 27.6% of GDP is contributed by agriculture sector
 Revolving round these, entrepreneurship demands its major
share in the field of agriculture along with other sectors of
economy.
 Agriculture entrepreneurship (Agripreneurship) is defined as
generally sustainable, community oriented, directly
marketed agriculture.
 Sustainable agriculture denotes a holistic, systems oriented
approach to farming that focuses on the interrelationships of
social, economic and environmental process.

18. Need for Agripreneurship
 Increasing demand of organic and quality food both in Nepal
and abroad
 Competitive advantages for many primary production
activities in agriculture. Ex: Rainfed farming, livestock and
wild craft production is through low cost production
technologies only.
 Private sector is willing to enter in to agribusiness at all
levels of operation.
 To reduce malnutrition as majority of women and children
in the country are malnourished

19. Scope for Entrepreneurship Development in
Agriculture
 Technologies those reduce the cost of production and
increase the benefit of the farmers will open new
opportunities for Agri-entrepreneurship.
 New technologies that are simple and time saving and keep
away farmers from drudgery of labour will also provide
opportunity for entrepreneurship in agriculture.
 Technologies that provide social and psychological benefits
to farmers will also provide opportunity for entrepreneurship
in agriculture.

20. Theories of Entrepreneurship
 It is a universal fact that entrepreneurship is an important factor
in economic development.
 An Entrepreneur is the risk bearer and works under uncertainty.
But no attempts were made by economists for formulating
systematic theory of entrepreneurship.
 According to William J. Baumol, the economic theory has failed
to provide a satisfactory analysis of either the role of the
entrepreneurship or its supply.
 However, different theoretical assumptions of entrepreneurship
focus on three major aspects of entrepreneurship.
 These three aspects are: the nature of opportunities, the nature of
entrepreneurs, and the nature of decision making framework
within which an entrepreneur functions.

21. Classical Theories of Entrepreneurship
 Classical theories of entrepreneurship majorly focused on the
virtues of free trade, competition and specialization.
 These theories defined the role of an entrepreneur in terms of the
production and distribution of goods in a competitive
marketplace
 Some remarkable classical theories of entrepreneurship are as
follows.

22. Richard Cantillon’s theory (1755)
 Richard Cantillon provided one of the earliest contributions regarding
the economic strand of thought about entrepreneurship.
 Richard described an entrepreneur as a speculator who conducts all
exchanges, and bears risks as a result of buying at certain prices and
further selling them at uncertain prices.
 Cantillion named it the risk theory of profit where anyone who receives
an uncertain income can be regarded as an entrepreneur.
 Furthermore, the theory stated the importance of entrepreneurs as
people who play a key role in the economy by relieving the paralysis
engendered by uncertainty and along with it allowing the exchange and
production of goods and services so that market equilibrium can be
attained.
 Cantillon further stated that an entrepreneur is not an innovator.
 They cannot change the demand and supply trends. Rather, they are
perceptive, intelligent and willing to take risks.
 Their main role in the process is to bring two sides of the market
together

23. Schumpeter’s Theory of Innovation
 Joseph Schumpeter propounded the well-known innovative
theory of entrepreneurship.
 Schumpeter takes the case of a capitalist closed economy which is
in stationary equilibrium.
 He believed that entrepreneurs disturb the stationary circular
flow of the economy by introducing an innovation and takes the
economy to a new level of development.
 The activities of the entrepreneurs represent a situation of
disequilibrium as their activities break the routine circular flow.
 Talking about innovation, he referred to new combinations of the
factors of production, Schumpeter had assigned the role of
innovator to the entrepreneur, who is not a man of ordinary
managerial ability, but one who introduces something entirely
new.

24. Contd…
 Innovation could involve any of the following:
 The introduction of a new good which consumers, are not yet
familiar—or of a new quality of a good.
 The introduction of a new method of production, that one not yet
tested by experience in the branch of manufacture concerned, which
need by no means be founded upon a discovery scientifically new
and can also exist in a new way of handling a commodity
commercially.
 The opening of a new market i.e. a market into which the particular
branch of manufacture of the country in question has not previously
entered, whether or not this market has existed before.
 The conquest of a new source of supply of raw materials or half
manufactured goods, irrespective of whether this source already
exists or whether it has first to be created.
 The carrying out of the new organization of any industry like the
creation of a monopoly position (for example, through
trustification) or the breaking up of a monopoly position.

25. Criticisms of Schumpeter’s Theory
 Critics feel that the theory over emphasized on innovative
functions of the entrepreneur. It ignored the organizing aspects
of entrepreneurship.
 Schumpeter had completely ignored the risk-taking function of
the entrepreneur, which cannot be ignored. Whenever an
entrepreneur develops a new combination of factors of
production, there is enough risk involved.
 The theory is more applicable in developed countries only. In
developing countries there is a paucity of innovative
entrepreneurs.
 The theory does not provide the explanation as to why few
countries have more entrepreneurship talent than others.
Despite of all the above criticisms Schumpeter’s theory is
considered as a landmark in the expansion of entrepreneurship
theories.

26. Neo- Classical Theories of Entrepreneurship
 The neo-classical theories emerged as a result of the criticism
levelled against the classical theories.
 The neoclassical theory maintains the impact of diminishing
marginal utility and entrepreneurial response to them as another
major aspect which was missing in the classical works

27. Marshallian Theory
 The study of entrepreneurs is far from new.
 In the year 1755, Cantillon described entrepreneurs as agents who
undertake risks for profits.
 Early theorist Adam Smith presented the concept of
entrepreneurship which was not different from a company owner.
 Alfred Marshal in his work combined both concepts and
presented the entrepreneur as an individual who is both, a risk
taker and an administrator.
 He identified entrepreneurs who are responsible for ensuring
production function in a company, identifying opportunities,
reducing costs and increasing profits.
 Marshall further in his theory classified entrepreneurs as:
 Active entrepreneurs (those who find new ways, and
 Passive entrepreneurs (those who tend to follow the existing road)

28. Marshallian Theory Contd…
 Furthermore, the concept of Marshallian agglomeration
economies tends to have a significant impact on entrepreneurial
activities.
 Here ‘agglomeration’ refers to the tendency of increasing returns
as a result of the accumulation of resources in a geographical
location.
 Marshall mentioned that there are two main forms of
agglomerations which are as follows:
 Urbanization of economies results from the accumulation of the
population at one point.
 Localization of economies resulting from the accumulation of a
specific industry or sector.

29. Menger’s Theory
 It is generally argued that the development of neoclassical
analysis began with Menger in the year the 1870s.
 Menger in his book defined entrepreneurial activity as a special
kind of labour service and an activity that is valuable while
economizing men.
 Despite this, they cannot be bought or sold and do not carry any
market price.
 However, there is a necessary prerequisite for the provision of
such services which is the ownership of the capital

30. Menger’s Theory
 Menger moving forward stated the specific functions that are
involved in the entrepreneurial activity:
 Collection of information regarding economic situations.
 Economic calculations in order to make the production process
efficient.
 Assigning goods to a particular production process.
 Supervising the execution of the production plan and making sure
that it is carried out in an economical way.
Thus it does not seem to be unfair to compare Menger’s
entrepreneurial activities with being similar to Marshallian
theory.

31. Shackle’s Theory
 According to Shackle’s theory, entrepreneurs are creative and
imaginative in their work.
 It states that entrepreneurs imagine opportunities and have the
creative ability to make choices.
 Furthermore, according to this theory, uncertainty and imperfect
information play an important role because it is the presence of
both these aspects that gives rise to opportunities for individuals.
 This act of imagination helps entrepreneurs in the identification
of potential market opportunities.
 This, when compared with the resources available, can lead to
effective decision-making.
 Shackle presented entrepreneurs’ education levels, personal
backgrounds, experiences and attitudes as the major factors that
tend to affect their imagination and creativity

32. Entrepreneurship Models
 The Entrepreneurship Model is nothing but the methodology
that is properly structured in order to incorporate the
entrepreneurial traits in the businesses
 Some entrepreneurial models are:

33. Need for Achievement Model
 This theory states that people desire to achieve something for
their inner feeling of accomplishment.
 However, the theory may be related to the Western culture where
personal achievement is very much appreciated by the society
compared to other cultures.

34. Locus of Control Model
 This theory states that there is a degree to which one believes that
he/she is in control of one’s destiny. This can either be internal or
external.
 Internals: The internals believe that what happens to them is a
result of their internal efforts whether it is good or bad.
 Externals: These believe that whatever happens to them is a result
of external factors whether good or bad.
 Therefore the theory contends that internals are more successful
in business than the externals.

35. Psychodynamic Model
 This was propounded by Kets de Vries.
 This says that people tend to be self-employed and become
successful because of “troubled childhood”.
 In troubled childhood, children tend to be lacking, security or
abused, low self-esteem, lack of confidence.
 Therefore growing in such an environment some people do have
repressed wishes towards those in control.
 This condition occurs when a child has been brought up in either
of the following situations:
 Loss of one or both parents
 Broken marriages
 Extreme poverty
 Refugees, and
 Child abuse

36. Social Marginality Model
 This theory suggests that individuals who perceive a strong level of
incongruence between their personal attributes and the role they hold
in society will be motivated to change or reconstruct their social reality.
 While some people may reconstruct their reality by changing careers or
employers, others may choose self-employment.
 ‘Marginal men” are referred as individuals who are less integrated in
their society.
 Since marginal men are not completely part of the society of their
adoption, they are free of the restrictions imposed by its value system.
 At the same time, having left their own society, they are no longer
constrained by its dominant values.
 This situation gives way to the development of unconventional patterns
of behavior, which increases their propensity to become entrepreneurs.

37. Concept of Training
 Training constitutes a basic concept in human
resource development.
 It is concerned with developing a particular skill to a
desired standard by instruction and practice.
 Training is a highly useful tool that can bring an
employee into a position where they can do their job
correctly, effectively, and conscientiously.
 Training is the act of increasing the knowledge and
skill of an employee for doing a particular job.

38. Concept of Training
 Dale S. Beach defines training as ‘the organized
procedure by which people learn knowledge and/or
skill for a definite purpose’.
 According to Edwin Flippo, ‘training is the act of
increasing the skills of an employee for doing a
particular job’.
 Training refers to the teaching and learning activities
carried on for the primary purpose of helping
members of an organization acquire and apply the
knowledge, skills, abilities, and attitudes needed by a
particular job and organization.

40. Are training and education the
same???

41. Training Vs. Education

42. Learning Vs. Training Vs. Education
 Learning is a biological process. It's something we do
all of the time, whether or not we're aware of it. It's like
breathing. It's something we do.
 Training is usually something we do to or for others to
help them increase proficiency in a skill or help them
feel better about doing it.
 We can engage in training independently, usually
classed as practice and consisting of repetition or
rehearsal -- possibly the best and most critical parts of
a good training regimen.

43. Learning Vs. Training Vs. Education
 Training is usually associated with a task. If training is not
focused on a skill associated with performance of a task, I
completely agree with you -- it's a presentation or
information session.
 Presentations and information sessions can help
when training a skill or making folks feel better about
performing the task, but these alone will probably fall far
short of changing behavior or moving the needle toward
accomplishment.
 Concepts need to be connected with the skill all the way
through to the accomplishment to be effective.
 Concepts fade fast when not connected with practice.

44. Learning Vs. Training Vs. Education
 Education, is about connecting dots in a domain and
providing a "sense of a world", whatever world is the focus
of the education. Education tends to answer
the Why? questions where training answers
the How? and When? questions.
 There is overlap as how, why, and when don't exist in
isolation, but thinking about the weights - these make
sense intuitively.
 Example, Most of us don't think twice about our kids
getting sex education in school. But we would likely have a
serious problem with them participating in a sex training
course.

45. Types of Training
1. Induction Training:
 Also known as orientation training
 It is given for the new recruits in order to make them
familiarize with the internal environment of an
organization.
 It helps the employees to understand the procedures,
code of conduct, policies existing in that organization.

46. Types of Training Contd…
2. Job Instruction Training:
 This training provides an overview about the job and
experienced trainers demonstrates the entire job.
 Addition training is offered to employees after
evaluating their performance if necessary.
3. Vestibule Training
 It is the training on actual work to be done by an
employee but conducted away from the work place.

47. Types of Training Contd…
4. Refresher Training:
 This type of training is offered in order to incorporate
the latest development in a particular field.
 This training is imparted to upgrade the skills of
employees.
 This training can also be used for promoting an
employee.
5. Apprentice Training
 Apprentice is a worker who spends a prescribed period
of time under a supervisor

48. Types of Training Contd…
In the system of agricultural extension, there are two types of
training generally practiced:
1. Pre- Service Training: In this type of training, an individual
receives before joining the actual job. Here the individual are
made ready to enter a certain kind of professional job such as
agriculture, livestock, fisheries etc.
2. In- Service Training: This is training for staff development
for the purpose of improving the performance of an incumbent
holding a position with assigned job responsibilities. It is
offered by the organization from time to time for the
development of skills and knowledge of incumbent. There are
5 different types of in-service training. These are given below-

49.  Induction or orientation training: Just after appointment this
training is offered to the newly recruited employees in an
organization.
 Foundation training: In this type of training, the employees
are given a comprehensive and detailed Idea and working
procedure of the organization.
 Maintenance or refresher training:Through this type of
training, the employees of an organization are given the latest
development or changes that have occurred to fit
changing demands.
 On the job training: This is in fact the most practical based
training. The training is usually offered by the superior officer
to his subordinates on the spot in order to provide the solution
of a problem. Sometime farmers are given this type training in
his own field so that she/he can be learn by doing
himself/herself.
 Career development training: In this type of training, the
employees get scope and opportunity from the organization to
improve and develop their career. Usually the
career development training is executed by earning some
advanced diploma or degrees such as MS, Ph.D. or D.Sc.

50. Training Cycle
 The training cycle involves the development,
delivery, and continuous improvement of a training
program.
 It consists of systematic stages that ensure better
training results.
 The training cycle starts long before a training
session and lasts beyond the end of the training
process.
 Besides the actual training, it also includes planning,
development, and reviewing stages.

51. Training Cycle
The phases/stages of training cycle are listed below:
 Identification and assessment of the training
requirements
 Designing of the training program
 Development of the training program
 Delivery of the training
 Application in learning
 Reviewing the training program

52. Training Cycle
 The first phase of the training cycle helps determine whether
there is even a need for training and, if so, what exactly is the
objective.
 Accurately identifying the requirements saves a lot of time,
effort, and money.
 Once establishing the training requirements, the program can be
designed in the second stage, and one can decide on the best
form of delivery—instructor-led, blended, on-the-job training,
etc.
 The third phase entails the actual development of the training
program through materials such as PowerPoint presentations,
team activities, job aids, assessments, etc.
 The delivery stage is when the actual training happens as per the
plan.

53. Training Cycle
 After the completion of the training, the trainees can
then apply the knowledge practically on the job tasks
they are working on.
 This gives the employees the chance to evaluate and
review whether the training helped them or not and,
thus, allowing the organization to improve the training
program.

55. Phases of Training
 There are generally three basic phases in every
training:
1. The pre-training phase –
 This is the phase that focuses on making everything
ready before the actual training starts.
 It involves motivating and encouraging individuals to
join the training program and also making various
arrangements like - creating a suitable learning
environment, choosing the trainers, and prepping
them.

56. Phases of Training
2. The learning event (Training Phase) –
 This is the second stage of program design and it is related to
developing the physical learning atmosphere and also designing the
learning modules or lesson plans.
 Its focus is to create effective instructions for the training process
and to facilitate a smooth learning experience.
3. Post-training phase –
 It is the evaluation step of the training process.
 In this phase, the trainees are asked to practically apply the
knowledge they have gained from the training and based on their
application, the efficacy of the whole process is monitored.
 It measures the extent to which the program design has been
successful and also identifies the major limitations and strengths of
the design.

58. Thank You !!!