The document outlines the key concepts covered in 5 units of a course on entrepreneurship: 1) Entrepreneurship concepts and factors affecting growth 2) Motivation theories including achievement motivation and stress management 3) Starting a business including identifying opportunities, market research, and project formulation 4) Financing, accounting, taxation, and working capital management 5) Government support programs for small businesses and strategies for growth

1. Department of Mechanical Engineering,
National Institute of Technology Agartala

2.  UNIT I : ENTREPRENEURSHIP
 Entrepreneur – Types Of Entrepreneurs – Difference Between Entrepreneur And Intrapreneur
Entrepreneurship In Economic Growth, Factors Affecting Entrepreneurial Growth.
 UNIT II: MOTIVATION
 Major Motives Influencing An Entrepreneur – Achievement Motivpation Training, Self Rating, Business
Games, Thematic Apperception Test – Stress Management, Entrepreneurship Development Programs –
Need, Objectives.
 UNIT III : BUSINESS
 Small Enterprises – Definition, Classification – Characteristics, Ownership Structures – Project
Formulation – Steps Involved In Setting Up A Business – Identifying, Selecting A Good Business
Opportunity, Market Survey And Research, Techno Economic Feasibility Assessment – Preparation Of
Preliminary Project Reports – Project Appraisal – Sources Of Information – Classification Of Needs And
Agencies.
 UNIT IV : FINANCING AND ACCOUNTING
 Need – Sources Of Finance, Term Loans, Capital Structure, Financial Institution, Management Of Working
Capital, Costing, Break Even Analysis, Taxation – Income Tax, Excise Duty – Sales Tax.
 UNIT V: SUPPORT TO ENTREPRENEURS
 Sickness In Small Business – Concept, Magnitude, Causes And Consequences, Corrective Measures –
Business Incubators – Government Policy For Small Scale Enterprises – Growth Strategies In Small
Industry – Expansion, Diversification, Joint Venture, Merger And Sub Contracting.

3. The word ‘motivation’ comes from the Latin
root ‘moveers’ which means to move. Motivation
is usually defined as an internal state that
arouses, directs and maintains behaviour.
Motivation, thus may regarded as something
which prompts, compels and energies an
individual to act or behave .

4. Entrepreneurial motivation may be defined as
the process that activates the entrepreneurs to
exert a high level of effort for the achievement of
his/her goals. In other words, the entrepreneurial
motivation refers to the drive or forces within an
entrepreneur that affects his/her direction, intensity
and persistence of voluntary behavior.

6. This theory was proposed by
Abraham Maslow and is based on the
assumption that people are motivated
by a series of five universal needs.
These needs are ranked, according to
the order in which they influence
human behaviour, in hierarchical
fashion. As one type of need is
satisfied, another higher order need
will emerge and become operative in
life.

8. The most potent need. According
to Maslow, when these physiological needs
are developed for a long period, all other
needs fail to appear or recede in the
background. Physiological needs are
deemed to be the lowest- level needs.
These needs include the needs such as
food and water.

10. When the physiological needs are successfully
fulfilled then safety needs become the dominant
force in the personality of the individual. Safety
needs are many and are mainly concerned with
maintaining order and security. Safety needs
include a desire for security, stability, dependency,
protection, freedom from fear and anxiety, and a
need for structure, order, and law. In the workplace
this needs translates into a need for at least a
minimal degree of employment security; the
knowledge that we cannot be fired on a whim and
that appropriate levels of effort and productivity will
ensure continued employment.

12. This need emphasize basic physiological
nature of human beings to identify with the group
life; making intimate relationship with other
members of society. These needs are dependent
on the fulfilment of previous needs.

14. Esteem needs include the desire for self-
respect, self-esteem, and the esteem of others.
When focused externally, these needs also include
the desire for reputation, prestige, status, fame,
glory, dominance, recognition, attention,
importance, and appreciation.

16. The highest need. It means to fulfil one’s
individual nature in all aspects, being what one can
be. One of the most important aspects of self-
actualization is freedom from cultural and self-
imposed restrains. Self-actualization is possible
when the basic needs of the person are met.

18. According to David McClelland,
regardless of culture or gender, people are
driven by three motives:
• Achievement
• Affiliation
• Power
Since McClelland's first
experiments, over 1,000 studies relevant
to achievement motivation have been
conducted. These studies strongly support
the theory.

20. Achievement
The need for achievement is characterized by
the wish to take responsibility for finding solutions
to problems, master complex tasks, set goals and get
feedback on level of success.
Affiliation
The need for affiliation is characterized by a
desire to belong, an enjoyment of teamwork, a
concern about interpersonal relationships, and a
need to reduce uncertainty.

21. Power
The need for power is characterized by a drive to control
and influence others, a need to win arguments, a need to persuade
and prevail.
According to McClelland, the presence of these
motives or drives in an individual indicates a
predisposition to behave in certain ways. Therefore, from
a manager's perspective, recognizing which need is
dominant in any particular individual affects the way in
which that person can be motivated.

22. ENTRPRENEURIAL DEVELOPMENT
PROGRAMME
• Programme to develop entrepreneurial abilities among the
people.
• Inculcation, development and polishing of entrepreneurial
skills into a person needed to establish and successfully run the
enterprise.
• Widen base of entrepreneurship by development,
achievement and motivation.

23. Needs of EDP
• Superior performance of entrepreneurs.
• Induce motivation and competence among the young
prospective entrepreneurs.
• Programmes similar to India’s EDPs are conducted in other
countries also, for example, ‘Junior Achievement Programme’
based on the principle of ‘catch them young’ in USA and
‘Young Enterprises’ in the U. K.

24. Develop and strengthen the entrepreneurial quality, i.e.
motivation or need for achievement.
Analyse environmental set up relating to small industry and
small business.
Understand the process and procedure involved in setting up a
small enterprise.
Know the sources of help and support available for starting a
small scale industry.
Acquire the necessary managerial skills required to run a small-
scale industry.
Know the pros and cons in becoming an entrepreneur.
Objectives

25. Phases of EDP
An EDP consists of following three broad phases:
• Pre training phase
• Training phase
• Post training phase (Follow-up)

26. Pre-training Phase
The activities and preparations required to launch the
programme come under this phase.
It includes:
• Designing of Course Curriculum or Contents.
• Exploring & Selecting appropriate faculty and
resource persons.
• Insertion of advertisement.
• Screening & selection of potential entrepreneurs.

27. Training Phase
The main objective of this phase is to bring desirable change in the
behavior of trainees.
The behavioral changes that need to be measured and monitored
through
the training programme are :
a)Raising the motivation level of entrepreneurs.
b)Developing a goal directed behavior pattern.
c)Raising positive thinking & belief.

28. Post-Training Phase
This phase involves the assessment to judge how far the
objectives have been achieved.
The purpose behind EDP follow-up is to:
• Review the pre-training work.
• Review the process of training programme.
• Review past training approach.

29. Evaluation of EDP
The following main criteria can be employed to
comment on the performance of entrepreneurs:
• Financial Results
• Gestation Period
• Capacity Utilization
• Expansion and Diversification
• Value Addition