INTRODUCTION

Concept of Entrepreneurship:

The word “entrepreneur” is derived from the French verb enterprendre, which means ‘to
undertake’. This refers to those who “undertake” the risk of new enterprises. An enterprise is
created by an entrepreneur. The process of creation is called “entrepreneurship”.

Entrepreneurship is a process of actions of an entrepreneur who is a person always in search

of something new and exploits such ideas into gainful opportunities by accepting the risk and
uncertainty with the enterprise.

According to Kuratko D F and Hodgetts R M _ “The process of organizing, managing

and assuming the risks of a business.”

Koontz & Fulmer said _The ability of a person to see a business opportunity, to get
together the capital needed to take advantage of the opportunity, and to start a business,
taking the risk of failure in the hope of reaping the rewards of success.”

Characteristics of Entrepreneurship:

Entrepreneurship is characterized by the following features:

1. Economic and dynamic activity:

Entrepreneurship is an economic activity because it involves the creation and operation of an

enterprise with a view to creating value or wealth by ensuring optimum utilisation of scarce
resources. Since this value creation activity is performed continuously in the midst of
uncertain business environment, therefore, entrepreneurship is regarded as a dynamic force.

2. Related to innovation:
Entrepreneurship involves a continuous search for new ideas. Entrepreneurship compels an
individual to continuously evaluate the existing modes of business operations so that more
efficient and effective systems can be evolved and adopted. In other words, entrepreneurship
is a continuous effort for synergy (optimization of performance) in organizations.

3. Profit potential:
“Profit potential is the likely level of return or compensation to the entrepreneur for taking
on the risk of developing an idea into an actual business venture.” Without profit potential,
the efforts of entrepreneurs would remain only an abstract and a theoretical leisure activity.
4. Risk bearing:
The essence of entrepreneurship is the ‘willingness to assume risk’ arising out of the creation
and implementation of new ideas. New ideas are always tentative and their results may not
be instantaneous and positive.
An entrepreneur has to have patience to see his efforts bear fruit. In the intervening period
(time gap between the conception and implementation of an idea and its results), an
entrepreneur has to assume risk. If an entrepreneur does not have the willingness to assume
risk, entrepreneurship would never succeed.

Entrepreneurial Process:
Entrepreneurship is a process, a journey, not the destination; a means, not an end. All the
successful entrepreneurs like Bill Gates (Microsoft), Warren Buffet (Hathaway), Gordon
Moore (Intel) Steve Jobs (Apple Computers), Jack Welch (GE) GD Birla, Jamshedji Tata and
others all went through this process.

To establish and run an enterprise it is divided into three parts – the entrepreneurial job, the
promotion, and the operation. Entrepreneurial job is restricted to two steps, i.e., generation
of an idea and preparation of feasibility report. In this article, we shall restrict ourselves to
only these two aspects of entrepreneurial process.
 1. Idea Generation: To generate an idea, the entrepreneurial process has to pass

through three stages:

a. Germination: This is like seeding process, not like planting seed. It is

more like the natural seeding. Most creative ideas can be linked to an

individual’s interest or curiosity about a specific problem or area of study.

b. Preparation: Once the seed of interest curiosity has taken the shape of a

focused idea, creative people start a search for answers to the problems.

Inventors will go on for setting up laboratories; designers will think of

engineering new product ideas and marketers will study consumer buying

habits.

c. Incubation: This is a stage where the entrepreneurial process enters the

subconscious intellectualization. The sub-conscious mind joins the

unrelated ideas so as to find a resolution.

2. Feasibility study: Feasibility study is done to see if the idea can be commercially
viable.

It passes through two steps:

a. Illumination: After the generation of idea, this is the stage when the idea is

thought of as a realistic creation. The stage of idea blossoming is critical because

ideas by themselves have no meaning.

b. Verification: This is the last thing to verify the idea as realistic and useful for

application. Verification is concerned about practicality to implement an idea and

explore its usefulness to the society and the entrepreneur.

Importance of Entrepreneurship:

Entrepreneurship offers the following benefits:

Benefits of Entrepreneurship to an Organization:

1. Development of managerial capabilities:

The biggest significance of entrepreneurship lies in the fact that it helps in

identifying and developing managerial capabilities of entrepreneurs. An

entrepreneur studies a problem, identifies its alternatives, compares the

alternatives in terms of cost and benefits implications, and finally chooses the best

alternative. This exercise helps in sharpening the decision making skills of an

entrepreneur. Besides, these managerial capabilities are used by entrepreneurs in

creating new technologies and products in place of older technologies and

products resulting in higher performance.

2. Creation of organizations: Entrepreneurship results into creation of

organizations when entrepreneurs assemble and coordinate physical, human and

financial resources and direct them towards achievement of objectives through

managerial skills.

3. Improving standards of living: By creating productive organizations,

entrepreneurship helps in making a wide variety of goods and services available to

the society which results into higher standards of living for the people.

Possession of luxury cars, computers, mobile phones, rapid growth of shopping

malls, etc. are pointers to the rising living standards of people, and all this is due

to the efforts of entrepreneurs.

4. Means of economic development: Entrepreneurship involves creation and use of

innovative ideas, maximization of output from given resources, development of

managerial skills, etc., and all these factors are so essential for the economic

development of a country.
Factors affecting Entrepreneurship:

Entrepreneurship is a complex phenomenon influenced by the interplay of a wide

variety of factors. Some of the important factors are listed below:

1. Personality Factors: Personal factors, becoming core competencies of

entrepreneurs, include:

(a) Initiative (does things before being asked for)

(b) Proactive (identification and utilization of opportunities)

(c) Perseverance (working against all odds to overcome obstacles and never

complacent with success)

(d) Problem-solver (conceives new ideas and achieves innovative solutions)

(e) Persuasion (to customers and financiers for patronization of his business and

develops & maintains relationships)

(f) Self-confidence (takes and sticks to his decisions)

(g) Self-critical (learning from his mistakes and experiences of others)

(h) A Planner (collects information, prepares a plan, and monitors performance)

(i) Risk-taker (the basic quality).

2. Environmental factors: These factors relate to the conditions in which an

entrepreneur has to work. Environmental factors such as political climate, legal

system, economic and social conditions, market situations, etc. contribute

significantly towards the growth of entrepreneurship.

For example, political stability in a country is absolutely essential for smooth

economic activity.Frequent political protests, bandhs, strikes, etc. hinder

economic activity and entrepreneurship. Unfair trade practices, irrational

monetary and fiscal policies, etc. are a roadblock to the growth of

entrepreneurship. Higher income levels of people, desire for new products and
sophisticated technology, need for faster means of transport and communication,

etc. are the factors that stimulate entrepreneurship.

Thus, it is a combination of both personal and environmental factors that

influence entrepreneurship and brings in desired results for the individual, the

organization and the society.

Types of Entrepreneurs:

Depending upon the level of willingness to create innovative ideas, there can be

the following types of entrepreneurs:

1. Innovative entrepreneurs: These entrepreneurs have the ability to think newer,

better and more economical ideas of business organization and management. They

are the business leaders and contributors to the economic development of a

country. Inventions like the introduction of a small car ‘Nano’ by Ratan Tata,

organized retailing by Kishore Biryani, making mobile phones available to the

common may by Anil Ambani are the works of innovative entrepreneurs.

2. Imitating entrepreneurs: These entrepreneurs are people who follow the path

shown by innovative entrepreneurs. They imitate innovative entrepreneurs

because the environment in which they operate is such that it does not permit

them to have creative and innovative ideas on their own.Such entrepreneurs are

found in countries and situations marked with weak industrial and institutional

base which creates difficulties in initiating innovative ideas.In our country also, a

large number of such entrepreneurs are found in every field of business activity

and they fulfill their need for achievement by imitating the ideas introduced by

innovative entrepreneurs .Development of small shopping complexes is the work

of imitating entrepreneurs. All the small car manufacturers now are the imitating

entrepreneurs.
3. Fabian entrepreneurs:

The dictionary meaning of the term ‘Fabian’ is ‘a person seeking victory by delay

rather than by a decisive battle’. Fabian entrepreneurs are those individuals who

do not show initiative in visualizing and implementing new ideas and innovations

wait for some development which would motivate them to initiate unless there is

an imminent threat to their very existence.

4. Drone entrepreneurs:

The dictionary meaning of the term ‘drone’ is ‘a person who lives on the labor of

others’. Drone entrepreneurs are those individuals who are satisfied with the

existing mode and speed of business activity and show no inclination in gaining

market leadership. In other words, drone entrepreneurs are die-hard

conservatives and even ready to suffer the loss of business.

5. Social Entrepreneur:

Social entrepreneurs drive social innovation and transformation in various fields

including education, health, human rights, workers’ rights, environment and

enterprise development.

They undertake poverty alleviation objectives with the zeal of an entrepreneur,

business practices and dare to overcome traditional practices and to innovate. Dr

Mohammed Yunus of Bangladesh who started Garmin Bank is a case of social

entrepreneur.

Functions of an Entrepreneur:

The important functions performed by an entrepreneur are listed below:1.

Innovation:An entrepreneur is basically an innovator who tries to develop new

technology, products, markets, etc. Innovation may involve doing new things or

doing existing things differently. An entrepreneur uses his creative faculties to do

new things and exploit opportunities in the market. He does not believe in status

quo and is always in search of change.

2. Assumption of Risk: An entrepreneur, by definition, is risk taker and not risk

shirker. He is always prepared for assuming losses that may arise on account of

new ideas and projects undertaken by him. This willingness to take risks allows an

entrepreneur to take initiatives in doing new things and marching ahead in his

efforts.

3. Research: An entrepreneur is a practical dreamer and does a lot of ground-

work before taking a leap in his ventures. In other words, an entrepreneur

finalizes an idea only after considering a variety of options, analyzing their

strengths and weaknesses by applying analytical techniques, testing their

applicability, supplementing them with empirical findings, and then choosing the

best alternative. It is then that he applies his ideas in practice. The selection of an

idea, thus, involves the application of research methodology by an entrepreneur

.4. Development of Management Skills: The work of an entrepreneur involves the

use of managerial skills which he develops while planning, organizing, staffing,

directing, controlling and coordinating the activities of business. His managerial

skills get further strengthened when he engages himself in establishing

equilibrium between his organization and its environment.However, when the size

of business grows considerably, an entrepreneur can employ professional

managers for the effective management of business operations.

5. Overcoming Resistance to Change: New innovations are generally opposed by

people because it makes them change their existing behavior patterns. An

entrepreneur always first tries new ideas at his level.It is only after the successful

implementation of these ideas that an entrepreneur makes these ideas available to

others for their benefit. In this manner, an entrepreneur paves the way for the

acceptance of his ideas by others. This is a reflection of his will power, enthusiasm

and energy which helps him in overcoming the society’s resistance to change.
6. Catalyst of Economic Development: An entrepreneur plays an important role in

accelerating the pace of economic development of a country by discovering new

uses of available resources and maximizing their utilization.To better appreciate

the concept of an entrepreneur, it is desirable to distinguish him from an

entrepreneur and promoter.

Some Myths about Entrepreneurship:

Over the years, a few myths about entrepreneurship have developed. These are as under:

(i) Entrepreneurs, like leaders, are born, not made:The fact does not hold true for the simple
reason that entrepreneurship is a discipline comprising of models, processes and case studies.
One can learn about entrepreneurship by studying the discipline.

(ii) Entrepreneurs are academic and socially misfits: Dhirubai Ambani had no formal
education. Bill Gates has been a School drop-out. Therefore, this description does not apply
to everyone. Education makes an entrepreneur a true entrepreneur. Mr. Anand Mahindra,
Mr. Kumar Mangalam Birla, for example, is educated entrepreneurs and that is why they are
heroes.

(iii) To be an entrepreneur, one needs money only: Finance is the life-blood of an enterprise
to survive and grow. But for a good idea whose time has come, money is not a problem.

(iv) To be an entrepreneur, a great idea is the only ingredient:A good or great idea shall
remain an idea unless there is proper combination of all the resources including
management.

(v) One wants to be an entrepreneur as having no boss is great fun:It is not only the boss who
is demanding; even an entrepreneur faces demanding vendors, investors, bankers and above
all customers.

An entrepreneur’s life will be much simpler, since he works for himself. The truth is working
for others are simpler than working for oneself. One thinks 24 hours a day to make his
venture successful and thus, there would be a punishing schedule.

Features of Entrepreneurship:
Entrepreneurship is the tendency of a person to organize the business of his own and to
run it profitably, using various traits like leadership, decision making, innovation,
managerial caliber etc. Entrepreneurship is a set of activities performed by an
entrepreneur In a way, entrepreneur precedes entrepreneurship. The main features of
entrepreneurship are as follows :

(i) Economic Activity: Although classical economists like Adam Smith and Richard
Cantillon and many others didn’t recognize entrepreneurship as an economic activity but
since last few decades entrepreneurship is catching up and is primarily becoming an
economic function because it involves creation and operation of an enterprise.
(ii) Innovative Activity: According to Schumpeter, entrepreneurship is essentially a
creative and an innovative activity. There are five ways of being innovative.
(a) The introduction of a new good;
(b} The introduction of a new method of production ;
(c) Opening of a new market;
(d) The conquest of a new source of supply of raw-material;
(e) The creation of a new organization of an industry.
Schumpeter’s entrepreneur combines already existing materials and thereby produces
something novel and innovative. It is only at that very moment when someone
actually puts together such a combination that he is engaged in entrepreneurship. He
suggests that it is very useful to study the constitutive parts of entrepreneurship,
different motives that drive the entrepreneur and the main types of innovative
behavior that entrepreneurship may result in.

Entrepreneurs tend to tackle the unknown; they do things in new and different ways’
they weave old ideas into new patterns; they offer more solutions than exercises.
However, just to be innovative is not enough unless that innovation is carried into
production to benefit consumers.

(iii) A Function of High Achievement: McClelland identified two features of

entrepreneurship, (a) doing things in a different and better way; (b) decision making
under uncertainty. People having high need for achievement are more likely to
succeed as entrepreneurs. Psychological theories assert that people’s capacity for
entrepreneurship is decisively influenced by the way they are socialized as children.

David McClelland stressed that entrepreneurs are highly motivated by challenging and
competitive work situations.
(iv) Creative and Purposeful Activity: Entrepreneurship is virtually a creative, and
purposeful activity. Entrepreneurship is a creative response to the changing
environment. Earning profit may not be the sole objective but introduction of
something creative and new is the purpose of entrepreneurship. The benefit of this
creativity must be enjoyed by people at large.

(v) Entrepreneurship: An Organizing Function : As J.B. Say says : The entrepreneurs

function is to combine the productive factors, to bring them together. According to
him, an entrepreneur is one, who combines the land of one, the lab our of another,
and capital of yet another, and thus, produces a product. By selling the product in the
market, he pays interest on capital, rent on land, wages to labourers and what
remains is his profit. Thus, J.B. Say clearly distinguishes between the role of a capitalist
as a financer and the entrepreneur as an organizer.

Marshall also advocated the significance of organization among the services of special
class of business undertakers.
(vi) Entrepreneurship: A function of Risk-Bearing: Richard Cantillon, an Irishman living
in France, defined entrepreneur who buys factors of production with a view to sell it
at uncertain prices in future. Cantillon concerned of an entrepreneur as a bearer of
non-insurable risk. Thus, Cantillon introduces elements of direction and speculation
into the function of entrepreneurship.
Entrepreneurship is a dynamic and multi-dimensional concept. It is both an art as well
science. It is more an art than science. In short, Entrepreneurship is what
entrepreneurs do.
Need for and Significance of Entrepreneurs in India!
The entrepreneurs are considered ‘change agents’ in the process of industrial and
economic development of an economy. The premium mobile role that entrepreneurs
play in promoting industrial and economic development of an economy is well
adduced across the countries.
In a sense, entrepreneurs are the ‘spark plug’ who transform the economic scene of an
economy. For example, Japan and United States are developed because of their
entrepreneurial development and Bangladesh and Nepal are underdeveloped because
of lack of their entrepreneurial development.
Within India itself, Gujarat and Punjab are developed because of their entrepreneurial
development and Bihar and Odisha are backward or underdeveloped because of the
lack of entrepreneurial development. Thus, with entrepreneurs societies prosper,
without them they are poorer.
In fact, the need for entrepreneurs in an economy can be imbued with multiplicity of
justifications as listed below:
a. Entrepreneurs promote capital formation by mobilising the idle saving of the
people.
b. They create immediate and large-scale employment by establishing small- scale
enterprises. Thus, they reduce the unemployment problem in the country, i.e., the
root cause of all socio-economic problems.

c. They promote balanced regional development by establishing small-scale

enterprises in rural, remote and less developed regions.
d. They help reduce the concentration of economic power.
e. They promote the equitable redistribution of wealth, income and even political
power in the interest of the country.
f. They encourage effective resource mobilization of capital and skill which might
otherwise remain unutilized and idle.
g. They, by establishing industries, induce backward and forward linkages which
stimulate the process of economic development in the country.
h. Last but no means the least; they also promote country’s export business, i.e. an
important ingredient to economic development.

Mr. Rahul Bajaj, Chairman & Managing Director of Bajaj Auto extols the need for and
significance of entrepreneurs in India in these words: “If we could have an
entrepreneur in every family, India’s economy would sky rocket. We would then be
able to take our rightful place as an economic super power in the community of
nations. Entrepreneurs create jobs. They create wealth. They create products and
services.”

One way, perhaps the most plausible way, of examining and appreciating the role of
entrepreneurs in economic development in India is to see their contribution to
country’s total production, employment, and exports.

It is interesting to mention that entrepreneurs by establishing small-scale enterprises

contribute 35 per cent of gross value of the output in the manufacturing sector, about
80 per cent of the total industrial employment and about 40 per cent of total exports
of the country. A cross-country (for example, Japan and Bangladesh) and cross-region
(for example, Gujarat and Odisha) examination confirm that with entrepreneurs we
prosper, without these we are poorer.
Difference between Entrepreneurship and Management:
Though entrepreneurship and management are closely related terms in business, there is a
considerable difference between both processes. Management encompasses the large spectrum of
organizational studies. Putting it simple, management explains each aspect of organizations and
it discusses organization and coordination of activities in order to achieve a desired set of
objectives. The scholar Harold Koontz, once highlighted management as an art that talks about
how to get things done from people. He emphasized the importance of formal groups in this
process. Therefore, management discusses overall organizational function in order to achieve
desired objectives. Provided that, the interconnection between management and entrepreneurship
is set as entrepreneurship proceeds to management. Because in entrepreneurship, entrepreneurial
opportunity recognition is highlighted as predecessors of business formation. But, in general,
entrepreneurship highlights business creation and thus management is required to achieve
objectives of an entrepreneurial venture.

Definitions of Entrepreneurship and Management:

• Entrepreneurship, to some, is the creation of enterprises. But the accepted definition of

entrepreneurship highlights the opportunity recognition as the heart of entrepreneurship.
• Management refers to the overall organizational activity that defines the coordination
activity and effective utilization of scarce resources to achieve final objectives.
Processes:

• The entrepreneurial process includes the steps such as entrepreneurial opportunity

recognition, feasibility analysis, business planning and running the business.
• The management process includes the steps of planning, leading, organizing, and
controlling.
Contemporary Aspects:

• Contemporary entrepreneurship includes social entrepreneurship, venture growth,

entrepreneurial cognition, international entrepreneurship, etc.
• Contemporary management practices include delegation of authority, flexible
organizations, and team management.
The Extent of Disciplines:

• Management is a wide spectrum of organizational studies. It includes all.

• Entrepreneurship is one part of management.
DISTINCTION BETWEEN ENTREPRENEUR AND MANAGER
Differences between the entrepreneurs and managers:
There are some differences between the entrepreneurs and the managers. The following table
will be helpful in understanding the differneces between the entrepreneurs and managers:-
Points Entrepreneurs
The main motive of an
entrepreneur is to start a venture
Motive by setting up an enterprise. He
understands the venture for his
personal gratification.
An entrepreneur is owner of the
Status enterprise
An entrepreneur being the
Risk-bearing owner of the enterprise assumes
all risks and uncertainty
involved in running the
enterprise.
The reward an entrepreneur gets
Rewards for bearing risks involved in the
enterprise is profit which is
highly uncertain.
Entrepreneur himself thinks
over what and how to produce
Innovation goods to meet the changing
demands of the customers.
Hence, he acts as an innovator
also called a ‘change-agent’
An entrepreneur needs to
possess qualities and
Qualifications qualifications like high
achievement motive, originality
in thinking, foresight, and risk-
bearing ability and so on.
Differentiate between the Entrepreneurs and Intrapreneurs.
Managers
The main motive of a manager is to
render his services in an enterprise
already set up by someone else.
A manager is the servant in the
enterprise owned by the entrepreneur.
A manager as a servant does not bear
any risk involved in the enterprise.
A manager gets salary as reward for
the services rendered by him in the
enterprise. Salary of a manager is
certain and fixed.
But, what a manager does is simply
to execute the plans prepared by the
entrepreneur. Thus, a manager simply
translates the entrepreneur’s ideas
into practice.
On the contrary, a manager needs to
possess distinct qualifications in
terms of sound knowledge in
management theory and practice.
The terms Entrepreneur and the Intrapreneur might seem the same words to hear, but both the
terms have much differences including their spelling and characteristics. The differences
between these two terms have been shortly gleaned below:-

Differences Entrepreneur Intrapreneur

An entrepreneur is independent An intraprenuer is dependent on the

Dependency in his operations entrepreneur, i.e. the owner.

An entrepreneur himself raises Funds are not raised by the Intrapreneur.

Raising of Funds funds required for the
enterprise.

Entrepreneur bears the risk An intraprenuer does not fully bear the
Risk involved in the business. risk involved in the enterprise.

An entrepreneur operates from On the contrary, an intraprenuer operates

Operation out side from within the organization itself.

An entrepreneur begins his An intrapreneur sets up his enterprise after

Orientation business with a newly set up working someone else’s organization.
enterprise.

As an entrepreneur establishes An intrapreneur establishes his business

Experience new business, so he does not after gathering experiences through
possess any experience over the working in the other organizations.
business.

According to the above table, anyone can differentiate between the entrepreneur and intrapreneur
as both the terms are heterogeneous.
Benefits Of Entrepreneurship

Any individual, who possesses a business, firm, or venture, is known as an

entrepreneur. He or she is accountable for its development, the inherent risks and
returns associated with it. Entrepreneurship is defined as the practice of beginning a
new trade or reviving an existing business, for capitalizing on fresh opportunities.
Normally, entrepreneurship is a difficult proposition as many new businesses fail to
survive in their initial periods and never take off. The entrepreneurial activities for a
particular kind of business depends upon various factors and is quite specific on the
kind of business or firm being run. Whatever may be the course of action,
entrepreneurship has a lot of benefits both for the entrepreneurs and the society in
which these businesses are carried out. Some of these benefits include:

1. Opportunity to get control.

Owning a firm or a business endows the entrepreneurs with the independence and
opportunity to control their own business. They can aim to achieve targets that are
important to them. Entrepreneurship provides entrepreneurs a chance to take
decisions according to their own wishes.
2. Offers a chance to make a difference
Some people begin and put a lot of effort just to make a difference in society. This has
given rise to the concept of social entrepreneurship, which is a recent phenomenon.
Such people search for opportunities to serve a cause that is significant to them and
try to find pioneering solutions to some of the most pressing and challenging
problems of society.
3. To reap high Profits
Reaping high profits by being an entrepreneur is one of the most important factors
that motivate people to become one and take up all the challenges associated with it.
The profits their companies and businesses make play a vital role in any decision made
by entrepreneurs. Owning a business or a firm is the best way towards accumulation
of wealth.
4. Helps people work to their full potential
Many entrepreneurs find their work to be extremely enjoyable. They consider their
business as an instrument of self-actualization and self-expression. Owning a firm or a
business acts as a test for the creativity skills, abilities, and determination of an
entrepreneur and is taken up as a challenge towards success.

5. Offers a chance to pursue their interests.

Most entrepreneurs don’t believe their work to be actual work. Most of them
establish businesses closely associated with their interests. As such, there is no
particular age for retirement of entrepreneurs.
With all these benefits people now consider the alternative of running their own small
businesses rather than doing jobs for others.
To gain self-confidence: One of the major reasons why startups are failing miserably is
lack of self confidence in the leaders or the entrepreneurs. It is important to note that
only if one has faith in themselves, will they be able to gain the trust of others. Hence,
as an entrepreneur, one must have self-confidence on the decisions taken. This will
not only test your confidence in key decision making process but also boost your
morale to believe in your decision.
Provide room for introspection: The program will help you learn how to respond in
testing times, allowing you to take charge of the situation. This will enable you to
identify your flaws and drawbacks and work on them to enhance your entrepreneurial
and leadership skills.
Work as a team: An entrepreneur or a leader is not a one man army. They may
provide direction but it requires a team to execute the decision taken by the one with
authority. Hence, the program will help you in understanding the significance of team
building. It will allow you to identify the quality of each individual in your team and
use their positives to benefit the project.
Build your analytical skills: As a leader or an entrepreneur, it is important to have a
good analytical knowledge about the business and the project that you are heading.
This aids in adopting reductive measures to minimize the chances of committing a
mistake on the work front. Through the program, one can learn to take evaluative
decisions that are beneficial for the company.
Interact with other leaders: The program will not just limit you to learning the key
benefits about leadership and entrepreneurship skills, but will provide ample
exposure by initiating interaction with other leaders, giving you room to draw
inferences from their experience and co-exist with them to understand the issue of
conflict of ideas and ways to resolve them.
1. A flexible schedule
So many people begrudge the office routine that it’s called the “9-to-5 grind.” As an
entrepreneur, you have the opportunity to break out of that cycle and create your
own schedule. Start your day early if you’re a morning person, work later in the day if
you prefer evenings, and take an afternoon jog whenever the fancy strikes.
This scheduling power isn’t just freeing, it also may be healthier as well. One study
conducted by the National Center for Biotechnology Information found that a results-
based work atmosphere (where the focus is on results rather than working a certain
number of hours) leads to greater mental and physical wellness.
2. Autonomy
Digital news outlet Quartz reported on the multiple studies that have demonstrated
the link between autonomy and job satisfaction. It turns out that employees who
have more control over their work tend to be more engaged and less emotionally
exhausted. Just another perk of being your own boss!
3. Creating a career that aligns with your values
Aligning your personal values with career values is an intensely gratifying experience.
Someone who believes in respecting the environment, for instance, would probably
find a career in renewable energy incredibly fulfilling.
You don’t have to find that perfect job; create it! Entrepreneurship allows you to
fashion a life and career that directly align with your core values, like helping others,
saving the environment, or putting family first.
4. Constant growth and development
Starting a company forces you to constantly improve your skillset, from marketing to
closing deals to creating Excel reports. There is always more to learn and apply to your
business, which can prevent complacency and encourage constant professional
growth.
5. Meeting like-minded peopleBusinessman Jim Rohn said, “You are the average of
the five people you spend the most time with.” By becoming an entrepreneur, you will
join a group of ambitious and helpful people who believe in bettering themselves and
the world. It isn’t hard to imagine that these connections will push you to become a
better person along the way.
Plus, there are plenty of opportunities to connect with mentors, brainstorm with
fellow professionals, and reach out for help during tough times. No one succeeds
 alone, but with a supportive network of likeminded people, entrepreneurs don’t need
to.

Tip: If you would like to connect with fellow entrepreneurs while developing your
skills, find your nearest Community Futures regional office and sign up for a business
workshop now!
6. Unexpected and thrilling experiences
If you are considering becoming an entrepreneur, you probably appreciate the value
of the unexpected. Not knowing exactly how the day is going to play out when you
wake up is exciting, especially when compared to the predictable and monotonous
schedule of a traditional office job. Another related benefit: responding to unexpected
situations teaches you to live in the moment and be more present.
7. Choosing who to work with
Entrepreneurs can choose which clients to work with, employees to hire, and
partnerships to pursue. If having control over business relationships appeals to you,
the entrepreneur life may be the perfect fit.
8. Greater self-confidence
Nothing boosts your confidence more than battling self-doubt and coming out on top.
Many entrepreneurs become more confident in their self-sufficiency as time goes on
and they see what they are truly capable of.
9. Leadership experience
Self-discipline, communication skills, passion, optimism, patience, and unrelenting
work ethic. Building a company from the ground up hones these leadership traits,
which means that entrepreneurship can transform you into an inspiring leader both
professionally and personally.
10. The best “offices”
Digital nomads are becoming increasingly common. These types of entrepreneurs
often combine fun travel with online business, and work from cafes, hotels, and co-
working spaces in the coolest cities around the globe, which can make for some neat
“offices.” Even if you aren’t trekking the world, the ability to work from a local park, a
beautiful café, or even a home office (while wearing pajamas), is incredibly tempting.

Basic elements of the process of Motivation:

Motivation Theories:
The importance of motivation to human to human life and work can be judged by the number of
theories that have been propounded to explain people’s behavior. They explain human
motivation through human needs and human nature. Prominent among these theories and
particularly relevant to entrepreneurship are Maslow’s Need Hierarchy Theory and McClelland’s
Acquired Needs Theory.

Maslow’s Need Hierarchy Theory:

Maslow’s theory is based on the human needs. These needs are classified into a sequential
priority from the lower to the higher. According to him, all the human needs are classified into
the five needs-clusters as shown in the following figure...
 1. Physiological Needs or Basic Needs: these needs are basic to human life and include
food, clothing, shelter, air, water and other necessities of life. They exert tremendous
influence on human behavior. Entrepreneur also being a man needs to meet his
physiological needs for survival. Hence, he /she are motivated to work in the enterprise to
have economic rewards to meet the basic needs.
2. Safety and security Needs: after satisfying the physiological needs, the next needs felt
are called safety and security needs. These needs find expression in such desires as
economic security and protection from physical dangers. Meeting these needs requires
more money and, hence, the entrepreneur is promoted to work more on his/her enterprise.
Like physiological needs, these become inactive once they are satisfied.
3. Social needs: Man is a social animal. These needs, therefore, refer to belongingness. All
individuals want to be recognized and accepted by others. Likewise, an entrepreneur is
motivated to interact with fellow entrepreneurs, his employees and others.
4. Esteem Needs: these needs refer to self-esteem and self-respect. They include such needs
which indicate self-confidence, achievement, competence, knowledge and independence.
In case of entrepreneurs, the ownership and self-control over enterprise satisfies their
esteem needs by providing them status, respect, reputation and independence.
5. Self -Actualizations: the final step under need hierarchy model is the need for self-
actualization. This refers self-fulfillment. The term self-actualization was coined by Kurt
Goldstein and means to become actualized in what one is potentially good at. An
entrepreneur may achieve self-actualization in being a successful entrepreneur.
In Maslow’s theory, needs are arranged in a lowest to the highest hierarchy. The second need
does not dominate unless the first is reasonably satisfied, and the third need does not dominate
until the first two needs have been reasonably satisfied. This process goes on till the last need.
This is because man is never satisfied. If one need is satisfied another need arises. Once a need is
satisfied, it ceases to be a motivating factor. For entrepreneurs, it is mainly social, esteem, and
self-actualization needs which motivate them to work more and more satisfying them.

McClelland’s Acquired Needs Theory

According to David McClelland, a person acquires three types of needs as a result of
one’s life experience. These three needs are:

1. Need for Affiliation: These refer to needs to accomplish and maintain friendly and warm
relations with others.
2. Need for power: These mean the one’s desire to dominate and influence others by using
physical objects and actions.
3. Need for achievement: this refers to one’s desire to accomplish something with own
efforts. This implies one’s will to excel in his/her life.
McClelland also suggests that these three needs may simultaneously be acting on an individual.
But, in case of an entrepreneur, the high need for achievement is found dominating one. In his
view, the people with high need for achievement are characterized by the following:

i. They set moderate, realistic and attainable goals for them.

ii. Prefer to situations in which they can find solutions for solving personal
responsibility.
iii. They need concrete feedback on how well they are doing.
iv. They have need for achievement for attaining personal accomplishment.
v. They look for challenging tasks.