Bases of

Difference

1. Motive
2. Status

Entrepreneur

Manager

The main motive of an entrepreneur is to start a venture by

setting up an enterprise. He
understands the venture for his
personal gratification.

But, the main motive

of a manager is to
render his services in
an enterprise already
set up by someone else
i.e., entrepreneur.

An entrepreneur is the owner of

the enterprise.

A manager is the
servant in the
enterprise owned by
the entrepreneur.

3. Risk
Bearing

4.
Rewards
5.
Innovation

An
entrepreneur
being the owner
of the enterprise
assumes all
risks and
uncertainty
involved in running the
enterprise.

A manager as a
servant does
not bear any
risk involved in
the enterprise.

The reward an
entrepreneur
gets for bearing
risks involved
in the enterprise
is profit which
is highly
uncertain.

A manager gets
salary as
reward for the
services
rendered by
him in the
enterprise.
Salary of a
manager is
certain and
fixed.

Entrepreneur
himself thinks
over what and
how to produce
goods to meet
the changing

But, what a
manager does is
simply to
execute the
plans prepared
by the

 6.
Qualificati
ons

demands of the
customers.
Hence, he acts
as an innovator
also called a
change agent

entrepreneur.
Thus, a
manager simply
translates the
entrepreneurs
ideas into
practice.

An
entrepreneur
needs to
possess
qualities and
qualifications
like high
achievement
motive, originality in
thinking,
foresight, risk
-bearing ability
and so on.

On the contrary,
a manager
needs to
possess distinct
qualifications
in terms of
sound
knowledge in
management
theory and
practice.

EDP is primarily designed to induce motivation and competence among young

prospective entrepreneurs. So the cause and curriculum of Entrepreneurship
Development programme will be so designed that it will induce motivation and
competency. The course curriculum of EDP should be designed to cover the
following aspects:

It will give general introduction to entrepreneurship.

It will afford motivational training.
It will increase managerial skill of the entrepreneur,
It makes entrepreneur to have expert knowledge on various support systems
and procedure.
It will give fundamental idea on project feasibility study.
It will encourage plant visit to afford practical knowledge to entrepreneurs.
After deciding on course contents and curriculum on EDP, the next important task
is to decide various phases of EDP. There are three different phases of EDP like:

Pre-training phase
Training phase
Follow-up phase
1. Pre-training phase:Pre-training phase consists of all activities and preparation
to launch training programme. Pre-training phase of EDP consists of the following
activities :
Selection of entrepreneurs for the training protgramme.
Arrangements of infrastructure are for the programme like selection of place
of training.
Deciding guest faculty for the programme from education industry and
banks.
Taking necessary steps for inauguration of programme.
Formation of selection committee to select trainees from the programme.
Making provision with regard to publicity and campaigning for the
programme.
2. Training Phase:The primary objective of training programme is to develop
motivation and skill or competency amongst the potential entrepreneurs. Care
should be taken to impart both theoretical and practical knowledge to various
trainees. The training phase of EDP will be so designed that it will answer the
following questions:

(a) Whether the attitude of the entrepreneur has been tuned towards the proposed
project or no.
(b) Whether the trainee has been motivated to accept entrepreneurship as a career.
(c) How the trainee behaves like an entrepreneur.

(d) Whether the trainee has sufficient knowledge on resources and technology or
not.
(e) What kind of entrepreneurial traits he lacks and what steps should be taken to
set it.
3. Follow-up Phase:Follow up phase of EDP has been termed as post-training
phase. The ultimate objective is to develop competent entrepreneurs.

So that they can start their project. Post-training phase is a review phase of training
programme. It consists of reviewing of work in the following manner:
Review of pre-training work
Review of actual training programme
Review of post training programme so that cost effectiveness of the present
programme can be evaluated.

. What are entrepreneurial competencies? Name any three.

Entrepreneurial competencies are the skills necessary for an entrepreneur to

venture into an enterprise

organize and manage an enterprise ably and competently

realize the goal for which the enterprise is established

These competencies help and entrepreneur to successfully venture into an enterprise.

These can be broadly classified under the following categories.(Choose any three of the following competencies)

Behavioral competencies
i.

Initiative

ii.

Systematic planning

iii.

Creativity and innovation

iv.

Risk taking and Risk Management

v.

Problem solving

vi.

Persistence

vii.

Quality performance

viii.

Information management

ix.

Persuation and influencing abilities

Enterprise launching competencies

Enterprise managing competencies.

2. What do you understand from the term Behavioral Competencies?

1.
Behavioral competencies are certain basic competencies to be acquired by the entrepreneur.
2.

The behavioral competencies acquired will determine the type of behavior exhibited by the entrepreneur in
performing various tasks in the discharge of his functions.

3.

Some of these competencies are latent in the entrepreneur, which ned to be identified, nurse and nurtured.

4.

Others are acquired through training and practice.

5.

These are basic competencies that need to be acquired by all the entrepreneurs irrespective of the size,
location, economic and social dimension.

The behavioral competencies include the following.

i.

Initiative

ii.

Systematic planning

iii.

Creativity and innovation

iv.

Risk taking and Risk Management

v.

Problem solving

vi.

Persistence

vii.

Quality performance

viii.

Information management

ix.

Persuation and influencing abilities

EDPs
A Programme designed to help a prospectiveEntrepreneur would achieve the following
objectives :
Identify abilities
.Analyse the environmental setup of small scale businessand industry.
Fulfilling his entrepreneurial motives.
Acquiring skills & capabilities.
Motivating
Arranging sources of help and provide support systemsand procedures
To provide training assistance.
Prepare him to face the uncertainitiesinvolved in running a business.
Develop a broad vision about thebusiness.
Develop passion for integrity and honesty.
Make him learn compliance with law.
Need and Relevance of EDPs
It is now believed that Entrepreneurs are madenot born.EDPs are based on this
belief that they caninculcate relevant attributes ignite the
dormantskills and talents, change the outlook andconvert the ideas into action
through thesystematic and organised training.They tend to change the personality
of theparticipants.
Role & Contribution of EDPs inIndia
Great role in increasing the supply of newentrepreneurs to accelerate the process
of industrialisation.
Elimination of Unemployment & Poverty
Balanced Regional Development
Utilisation of local resources
Large scale employment can reduceunrest and violence amongst the youth asthey
would be gainfully employed.

Phases of EDPs
Pre-training phaseIdentification & Selection of Entrepreneurs(written test, personal interviews)
Designing of course curriculum
Selection of necessary tools, techniques andarrangement of Infrastructure.
Arranging Guest Speakers after finalisingtraining syllabus.

Training Phase
To develop need for achievement in employees i.emotivation.
Is the person mentally prepared to undertake riskand uncertainity?
Does the person have the right attitude ?
What kind of entrepreneurial traits the trainee lacksthe most?
Whether the trainee possesses the requisiteknowledge of technology & resources

Post training phase

Ultimate objective is to prepare the participants tostart their own enterprise.
This is basically the follow up phase.
i.e follow up meeting of the officials of EDP with theparticipants.
To see how far the objectives have been achieved.
Are there any drawbacks.
Suggesting guidelines for framing future policies toimprove performance.
Assistance in selection location of unit.Help in bringing the trainees in
touch withfinancial institutions.
Evaluation of EDP
To review the first three phases.To help expedite the process of borrowingfrom
the Institutions.Few problems:Faced difficulties in getting finance.Procedures
for getting plot, power connection time consuming