The business is started with the aim of achieving success but success is not always guaranteed. Because business has to go always in uncertainty. A good entrepreneur should be able to forecast such a situation and take appropriate steps to remain away from such uncertainties or to convert uncertainties to certainties. Hence, success or failure in entrepreneurship largely depends on the strength and weakness of the entrepreneur.

1. ENTREPRENEURSHIP
DEVELOPMENT
An Introduction
4/9/2024

2. Entrepreneurial success and failures
The business is started with the aim of achieving success but success is
not always guaranteed. Because business has to go always in
uncertainty. A good entrepreneur should be able to forecast such a
situation and take appropriate steps to remain away from such
uncertainties or to convert uncertainties to certainties. Hence, success or
failure in entrepreneurship largely depends on the strength and
weakness of the entrepreneur.
A business survives as long as there are customers for its products and
services. It lives on the faith of the customers. The reputation of a
business and its product or services is the foundation which is the main
reason for the success of a business.
Success of an enterprise may be due to many reasons which can be
broadly grouped in two: internal reasons and internal reasons

3. • These factors are:
1. Environment and
2. Personality of the entrepreneur.

4. Internal reasons
 Efficient management
 Quality goods and services
 Good reputation of the business and its products
 Good reputation of the entrepreneurs
 Low cost of production
 Effective marketing and selling network
 Proper financial management
 Dedicated manpower
 Appropriate technology
 Timely updating of products and technology
External Reasons
 quality manpower
 Increase in demand
 Availability of appropriate raw materials at
affordable price
 Suitable government policies
 Low level of competition
 Opening of new markets
 Natural environment

5. Similarly, failure of a business may be due to many reasons which can be
grouped into two categories; internal reasons and external reasons.
Internal Reasons
 Ineffective management
 Obsolete /Outdated technology
 Poor financial management
 Ineffective sales and marketing
 Poor quality of products and services
 Higher cost of production
 Poor quality of inputs
 Poor industrial relation
 Low equity of human resource
 Improper leadership

6.  Shortage of raw materials
 Shortage of powers
 Shortage of quality manpower
 Shortage of finance
 Change in technology
 Change in taste, fashion, etc.
 High level of competition
 Reduction in demand
 Increase in supply
 Change in government policies
 Availability of better substitutes and alternatives
 Natural causes Strategic causes.
External Reasons

7. An entrepreneurship will survive and grow in
an environment that is friendly or akin to it.
Nature provides us with examples of what
happens to entities living in a certain
environment.
The Environment as a Factor

8. In the same light, entrepreneurships will
survive and grow only in economic environment
of free enterprise. Full blooming
entrepreneurship cannot be expected to flourish
in economies that are not fully supportive of free
enterprise.
In terms of support to entrepreneurships,
economic environments may be classified as
follows:
1. Fully supportive of entrepreneurship;
2. Moderately supportive of entrepreneurships;
and
3. Not supportive entrepreneurship.

9. Types of Economic The entrepreneur’s
Environment Task
Fully supportive of
entrepreneurship
Moderately supportive of
entrepreneurships;
Not supportive
entrepreneurship.
Easy
Less Easy
Hard

10. Personality
Types
Entrepreneu
r’s Job
Teacher’s
Job
Engineer’s
Job
A
B
C
Perfect fit
Unfit
moderate
fit
moderate fit
Perfect fit
Unfit
Unfit
moderate fit
Perfect fit
Entrepreneur’s Personality

11. Personality refers to the pattern of
characteristics that distinguishes one person
from another. It includes the person’s traits,
values, motives, genetic blueprints, attitude,
emotional reactivity, abilities, self-image,
intelligence, and visible behaviour patterns.
What is Personality

12. Holland proposal indicates six personality
types. They are as follows:
1. Realistic type;
2. Investigative type
3. Artistic type
4. Social type
5. enterprising type
6. Conventional type

13. 1. Realistic type;
2. Investigative type
3. Artistic type
4. Social type
5. Enterprising type
6. Conventional type
This individual prefers activities involving aggressive
behaviour and physical exertion requiring skill,
strength, and coordination.
This individual prefers to be analytical, curious,
methodical and precise:
This person is expressive, nonconforming, original, and
introspective.
This person enjoys working with and helping with
others and purposefully avoids systematic activities
involving tools and machinery.
This person verbal activities to influence others and to
attain power and status.
This person enjoys the systematic manipulation of data,
filing of records, or reproducing materials.

14. Successful entrepreneurs possess certain characteristics that are
different from those having other occupations. Based on research
by experts, the following traits are considered vital to a successful
career in entrepreneurship:
1. Drive
2. thinking ability
3. Human relation ability
4. Ability to communicate
5. Technical knowledge
6. Reasonable risk taker
7. Self-confidence
8. Goal setter
9. Accountable
10. Innovative
Characteristics of Entrepreneurs

15. Characteristics
Drive
Success in entrepreneurship becomes
possible when the entrepreneur is self-motivated
enough to pursue his chosen course without
relenting even in the face of adversity.
Thinking Ability
The entrepreneur’s job involve solving
problems and making decision. When he finds
the correct solutions to problems that confront
him and then makes decisions that are
implemented, he comes closer to realizing his
goals.

16. Human Relation Ability
Three types of persons will determine the
survival and growth of business firms: 1.) the
customers, 2.) the employee, and 3.) the third
party with interest in the firm.

17. Ability to communicate
 Communication skill is a very important characteristics
an entrepreneur must have if success is expected. The
ability to understand and be understood makes it
easier for the entrepreneur to transact business with
customers, bankers, and government.
• Technical knowledge
Operating an entrepreneurship requires the
performance of major and minor tasks.
It will be easier for him to devise a strategy on
how he will manage his firm to effectively compete
with others.

18. Reasonable Risk-taker
When a person starts a new venture, he
has already begun to assume the risk of
business failure.
Types of Risk Taker Level of risk taken Expected level of
benefits
Salaried employee
Entrepreneur
gambler
Low
moderate
high
Low
moderate
high

19.  Self-confident
A person cannot achieve much unless he has sufficient
confidence in himself.
Goal Setter
Goals are very useful motivational tools, especially those
related to accomplishing the objectives of entrepreneurs.
A goal performs the following function.
1) It directs one’s attention
2) It encourage one to exert effort toward achieving
something specific;
3) It encourage persistence
4) It fosters the creation of strategies and action plans
It easy to understand that persons who are goal setters
would make entrepreneurs of high success potentials.

20.  Accountable
The success of an enterprise will depend much on the willingness of
subordinate to comply with the wishes of the entrepreneur. Compliance
can be expected if the entrepreneur is accountable enough to take
responsibility for whatever happens to the firm.
 Innovative
A free enterprise economy like ours allow business enterprise to
flourish. This will depend, however, on how well the public is convinced to
patronize them.
Innovation may only way the entrepreneur can achieve the following.
1. Penetrate the market
2. Improve employee turnover
3. Reduce manufacturing cost
4. Improve collection rate

21. What motivates people to become
entrepreneurs?
Not everyone desires to be an
entrepreneur. Those who do, however, are
motivated by any or all of the following:
1. Desire to be one’s own boss;
2. Desire for financial rewards;
3. Desire to create one’s own job security;
4. Desire to improve one’s quality.

22. CHARACTERISTICS OF AN ENTREPRENEUR
4/9/2024

23. • HARD WORK
• BUSINESS ACUMEN AND SINCERITY
• PRUDENCE
• ACHIEVEMENT MOTIVATION
• SELF-RELIANCE AND INDEPENDENCE
• HIGHLY OPTIMISTIC
• KEEN FORSIGHT
• PLANNING AND ORGANISING ABILITY
• INNOVATIVENESS
• RISK TAKING
• SECRECY MAINTENANCE
• MAINTAIN PUBLIC RELATIONS
• COMMUNICATION SKILL
4/9/2024

24. QUALITIES OF AN ENTREPRENEUR
4/9/2024

25. • ENTERPRISING
• RISK BEARER
• CREATIVE THINKER
• AMBITIOUS
• HIGH NEED ACHIEVEMENT
• CHANGE AGENT
• GOOD ORGANISER AND MANAGER
• DECISION MAKER
• STRONG COMMITMENT
• FIRM DETERMINATION
4/9/2024

26. FUNCTIONS OF AN ENTREPRENEUR
4/9/2024

27. • Risk Assumption Function
• Business Decision Making Function
• Managerial Function
• Function of Innovation
4/9/2024

28. RISKS FACED BY ENTREPRENEURS
1. FINANCIAL RISK:
• The entrepreneurship has to invest money in the
enterprise on the expectation of getting in return
sufficient profits along with the investment.
• He may get attractive income or he may get only
limited income. Sometimes he may incur losses.
2. PERSONAL RISK:
• Starting a new venture uses much of the
entrepreneur’s energy and time.
• He or she has to sacrifice the pleasures attached
to family and social life.
4/9/2024

29. 3) CARRIER RISK:
• This risk may be caused by a number of reasons such
as leaving a successful career to start a new business
or the potential of failure causing damage to
professional reputation.
4) PSYCHOLOGICAL RISK:
• Psychological risk is the mental agonies an
entrepreneur bears while organizing and running a
business venturesome entrepreneurs who have
suffered financial catastrophes have been unable to
bounce back.
4/9/2024

30. 4/9/2024
TYPES OF ENTREPRENEURS

31. 1. CLASSIFICATION BY CLARENCE
DANHOF:
Clarence Danhof, On the basis of
American agriculture, classified
entrepreneurs in the following categories:
a) INNOVATIVE ENTREPRENEURS
b) ADOPTIVE OR IMITATIVE
ENTREPRENEURS
c) FABIAN ENTREPRENEURS
d) DRONE ENTREPRENEURS
4/9/2024

32. INNOVATIVE ENTREPRENEURS
• They are generally aggressive on experimentation and cleverly
put attractive possibilities into practice.
• An innovative entrepreneur, introduces new goods, inaugurates
new methods of production, discovers new markets and
reorganizes the enterprise.
• Innovative entrepreneurs bring about a transformation in
lifestyle and are always interested in introducing innovations.
4/9/2024

33. ADOPTIVE OR IMITATIVE ENTREPRENEURS
• Imitative entrepreneurs do not innovate the changes
themselves, they only imitate techniques and technology
innovated by others.
• They copy and learn from the innovating entrepreneurs.
• While innovating entrepreneurs are creative, imitative
entrepreneurs are adoptive.
4/9/2024

34. FABIAN ENTREPRENEURS
• These entrepreneurs are traditionally bounded.
• They would be cautious.
• They neither introduce new changes nor adopt new methods
innovated by others entrepreneurs.
• They are shy and lazy. They try to follow the footsteps of their
predecessors.
• They follow old customs, traditions, sentiments etc. They take
up new projects only when it is necessary to do so.
4/9/2024

35. DRONE ENTREPRENEURS
• Drone entrepreneurs are those who refuse to adopt and use
opportunities to make changes in production.
• They would not change the method of production already
introduced.
• They follow the traditional method of production.
• They may even suffer losses but they are not ready to make
changes in their existing production methods.
4/9/2024

36. ON THE BASIS OF STAGES OF DEVELOPMENT
1) First Generation Entrepreneur: He is one who starts an industrial
unit by means of his own innovative ideas and skills. He is
essentially an innovator. He is also called new entrepreneur.
2) Modern Entrepreneur: He is an entrepreneur who undertakes those
ventures which suit the modern marketing needs.
3) Classical Entrepreneur: He is one who develops a self supporting
venture for the satisfaction of customers’ needs. He is a stereo type
or traditional entrepreneur.
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

37. ON THE BASIS OF TYPE OF BUSINESS
1) Business Entrepreneur: He is an individual who discovers an idea to start
a business and then builds a business to give birth to his idea.
2) Trading Entrepreneur: He is an entrepreneur who undertakes trading
activity i.e; buying and selling manufactured goods.
3) Industrial Entrepreneur: He is an entrepreneur who undertakes
manufacturing activities.
4) Corporate Entrepreneur: He is a person who demonstrates his innovative
skill in organizing and managing a corporate undertaking.
5) Agricultural Entrepreneur: They are entrepreneurs who undertake
agricultural activities such as raising and marketing of crops, fertilizers and
other inputs of agriculture. They are called agripreneurs.
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

38. ON THE BASIS OF USE OF TECHNOLOGY
Technical Entrepreneur:
• They are extremely task oriented.
• They are of craftsman type.
• They develop new and improved quality goods
because of their craftmanship.
• They concentrate more on production than on
marketing.
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

39. ON THE BASIS OF USE OF TECHNOLOGY
Non-Technical Entrepreneur:
• These entrepreneurs are not concerned with the
technical aspects of the product.
• They develop marketing techniques and
distribution strategies to promote their business.
• Thus they concentrate more on marketing
aspects.
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

40. ON THE BASIS OF USE OF TECHNOLOGY
Professional Entrepreneur:
• He is an entrepreneur who starts a business unit
but does not carry on the business for long
period.
• He sells out the running business and starts
another venture.
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

41. ON THE BASIS OF MOTIVATION
Pure Entrepreneur:
• They believe in their own performance while
undertaking business activities.
• They undertake business ventures for their
personal satisfaction, status and ego.
• They are guided by the motive of profit.
• For example, Dhirubhai Ambani of Reliance
Group.
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

42. ON THE BASIS OF MOTIVATION
Induced Entrepreneur:
• He is induced to take up an entrepreneurial
activity with a view to avail some benefits
from the government.
• These benefits are in the form of assistance,
incentives, subsidies, concessions and
infrastructures.
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

43. ON THE BASIS OF MOTIVATION
Motivated Entrepreneur:
• These entrepreneurs are motivated by the desire to
make use of their technical and professional
expertise and skills.
• They are motivated by the desire for self-
fulfillment.
Spontaneous Entrepreneur:
• They are motivated by their desire for self-
employment and to achieve or prove their
excellence in job performance.
• They are natural entrepreneurs.
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

44. ON THE BASIS OF ENTREPRENEURIAL ACTIVITY
Novice:
• A novice is someone who has started his/her first entrepreneurial venture.
Serial Entrepreneur:
• A serial entrepreneur is someone who is devoted to one venture at a time
but ultimately starts many.
• He repeatedly starts businesses and grows them to a sustainable size and
then sells them off.
Portfolio Entrepreneurs:
• A portfolio entrepreneur starts and runs a number of businesses at the same
time.
• It may be a strategy of spreading risk or it may be that the entrepreneur is
simultaneously excited by a variety of opportunities.
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

45. ENTREPRENEUR VS MANAGER
ENTREPRENEUR
• Owner of the business
• Profit
• Full risk bearing
• All functions
• Innovator
MANAGER
• Servant of the business
• Salary
• No risk bearing
• Managerial functions only
• Executor
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

46. The Concept of Entrepreneurship…
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

47. DEFINITION
According to A. H. Cole, “Entrepreneurship is the purposeful
activities of an individual or a group of associated individuals
undertaken to initiate, maintain or organize a profit oriented
business unit for the production or distribution of economic
goods and services”.
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

48. THE ENTREPRENEURIAL PROCESS
1
• IDENTIFYAN OPPORTUNITY
2
• ESTABLISH VISION
3
• PERSUADE OTHERS
4
• GATHER RESOURCES
5
• CREATE NEW VENTURE , PRODUCT OR MARKET
6
• CHANGE OR ADAPT WITH TIME
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

49. ENTREPRENEURIAL COMPETENCIES/ TRAITS
TRAITS
KNOWLEDGE
SKILL
MOTIVE
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

50. • KNOWLEDGE: Collection and retention of information in
ones mind
• SKILL: The ability to demonstrate a system and sequence of
behaviour which results in something that one can see
• MOTIVE: Urge to achieve one’s goal
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

51. TYPES OF COMPETENCIES
• HARD-SKILL COMPETENCIES:
Skills that are acquired through
education or work experience.
• SOFT-SKILL COMPETENCIES:
Skills that are generally inherent in an
individual or developed by him
consciously.
E.g., Communication Skill
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

52. MAJOR ENTREPRENEURIAL COMPETENCIES
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

53. Entrepreneurship Development Institute of India, Ahemedabad
conducted a study under Prof. David C. McClelland. The core
competencies according to the study are:
• Initiative
• Looking for opportunities
• Persistence
• Information seeker
• Quality conscious
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

54. • Committed to work
• Efficiency seeker
• Proper planning
• Problem solver
• Self-confidence
• Assertive
• Persuasive
• Efficient monitor
• Employees’ well wisher
• Effective strategist
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

55. ACCORDING TO B. C. TANDON
• Entrepreneur is enough risk-bearer.
• He is ready to adapt change, if the situation warrant.
• He has the ability to Marshall the resources at his command.
• He is a good organiser as well as a good manager.
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

56. DEVELOPING COMPETENCIES
• Kakinada Experience.
• The procedure involves four
steps:
– Competency Recognition
– Self-Assessment
– Competency Application
– Feed back
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

57. ENTREPRENEUR VS ENTREPRENEURSHIP
ENTREPRENEUR
• Person
• Organiser
• Innovator
• Motivator
• Leader
• Creator
ENTREPRENEURSHIP
• Function/ Process
• Organisation
• Innovation
• Motivation
• Leadership
• Creation
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

58. ENTREPRENEUR VS ENTREPRENEURSHIP
ENTREPRENEUR
• Risk-bearer
• Initiator
• Visualiser
• Technician
• Imitator
• Administrator
ENTREPRENEURSHIP
• Risk-bearing
• Initiative
• Vision
• Technology
• Imitation
• Administration
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

59. ENTREPRENEURIAL MOTIVATION
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

60. 4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

61. Motivation means….
• Willingness to exert high levels of effort toward organizational
goals
• Conditioned by the effort’s ability to satisfy some individual
need
• Motivation can be described in terms of intensity, persistence,
and direction
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

62. Definition…
• According to Dalton E. McFarland, “Motivation refers to the
way in which urges, drives, desires, strives, aspirations and
needs direct, control or explain the behaviour of human being”
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

63. Nature of Motivation…
• Motivation: The set of forces that leads people to
behave in particular ways
• The Importance of Motivation
– Performance depends upon motivation, ability, and
environment
– P = M + A + E
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

64. Concepts…
• Needs and Motives
• Goals
• Behaviour
• Incentives
• Instincts
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PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

65. Process of Motivation
GOAL
MOTIVE
BEHAVIOR
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PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

66. MOTIVATION THEORIES
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PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

67. Abraham Maslow’s Need Hierarchy Theory
Self
Transcend
ence
Self
actualization
Self Esteem
Social Needs
Safety and Security Needs
Physiological Needs
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

68. David McClelland’s Acquired Needs Theory
Power
Achievement
Affiliation
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala

69. Motivating Factors…
1. Intrinsic Factors:
• Desire to do something new
• Educational background
• Occupational background or experience
2. Extrinsic Factors:
• Government assistance and support
• Availability of labor and raw materials
• Encouragement from big business houses
• Promising demand for the product
4/9/2024
PRAJEESH E MENON KVM COLLEGE,
Cherthala, Kerala