1. 1.

Chracteristics of enterpreneurs

a.An eye for opportunity: Many entrepreneurs start by finding a need and quickly
satisfying it.

b.Independence: Even though most entrepreneurs know how to work within the
framework for the sake of profits, they enjoy being their own boss.

c.An appetite for hard work: Most entrepreneurs start out working long, hard hours with
little pay.

d.Self-confidence: Entrepreneurs must demonstrate extreme self-confidence in order to

cope with all the risks of operating their own business.

e.Discipline: Successful entrepreneurs resist the temptation to do what is unimportant

or the easiest but have the ability to think through to what is the most essential.

f.Judgment: Successful entrepreneurs have the ability to think quickly and make a wise
decision.

g.Ability to accept change: Change occurs frequently when you own your own
business, the entrepreneur thrives on changes and their businesses grow.

h.Make stress work for them: On the roller coaster to business success the entrepreneur
often copes by focusing on the end result and not the process of getting there.

i.Need to achieve: Although they keep an "eye" on profits, this is often secondary to the
drive toward personal success.

j.Focus on profits: Successful entrepreneurs always have the profit margin in sight and
know that their business success is measured by profits. Is this your profile or would you
rather do your job, pick up your paycheck and leave the headaches to someone else?
Most of us, quite easily, choose the later.

2. Role of entrepreneur in economic development

Why is the country that has such a strong knowledge advantage lagging behind others in
overall economic development? While Indians the world over are recognized for the
central role they are playing in the IT revolution, they themselves do not even have
uninterrupted power supply. It seems our economic progress is more drived by it's
endorsement by the stock market than by real and distributed value it has created. The
lack of entrepreneurial initiatives, the large debt burden and the bureaucratic red tapism
can be accorded as obstacles to the growth and development of India. We understand
reforms, we all understand liberalization –but what we need here is discipline,
considering the licensing and regulatory nightmares faced by potential Indian
Entrepreneurs. The challenges faced by an entrepreneur in the 21st century emphasize the
need for a spirit of risk taking and Initiative.

Entrepreneurship is not all about opportunism, the potential start up dreamers need to
pick up an important business problem right from the outset. The Millennium Indian
Entrepreneur faces a challenge to create a spirit in the form of continuous, careful but
rapid experimentation and capturing opportunities that emerge. In an economy as big as
India there is always money to encourage an Entrepreneur. Media Tycoon Ted Turner's
jocular one liner," My son Is an Entrepreneur " That's what you are called when you don't
have a job, couldn't ring truer, in contrast, if you take the prevalent Indian business
scenario into perspective. consider any domain of business operation creating ripples
from airlines to organized retail to telecom to software, I would venture safely to state
that the big poppa pop on the block today is none other in most cases but a virtual
unknown, someone who would most likely have been pooh poohed before he or she
swept the rug of complacence from beneath the traditional players unsuspecting feet. The
names are ubiquitous and the success stories scripted are legends in their own right and
by every right that could exist.Take the undisputable king of calls, Sunil bharti mittal,
whose company Bharti enterprises boasts of a humongous market capitalization of
Rs.727 Billion. He was an entrepreneur then and remains now. Take the ingenious
examples of Subhas Chandra, Exemplary kiran Mazumdar Shaw, News channel czars,
Pronoy Roy and Raghav Behl to the world icons of software Azim Premji and Narayan
Murthy the galaxy of India's Entrepreneurial superstars is as drawn out as it is illustrious.
Not surprisingly that this years Forbes listing of the wealthiest has more billionaires
additions from India than any other nation, apart from the U.S. This spoke loudly of the
role of entrepreneurs in the economic Development of India. on an Economic tangent, if
we were to come remotely close to that very-Elusive 'Developed' nation status then
poverty has to necessarily bid adieu. Ten million jobs need to be in order by the year
2020 as estimated by CII and NASSCOM. So, Entrepreneurial contribution towards this
cause assumes critical

3.When you compare managers and entrepreneurs you need to first look at the definitions
of both titles. A manager is someone who directs a team and an entrepreneur is someone
who organizes, manages, and assumes the risks of a business or enterprise. With these
definitions you can surmise that an entrepreneur can be a manager but a manager cannot
be an entrepreneur. The reasons for this are plentiful, but it basically comes down to the
type of person you are. If you like to control all aspects of a situation then you are
generally a manager, but if you are someone who works through problems with people
then you are more likely an entrepreneur.

A manager is someone who is what is known as a micro-manager. They like to control

all aspects of their workplace. Each person is given their assigned tasks and a manager
will look over your shoulder until you finish it. They do not like to give up control
enough to find out if you could do it on your own because they think if you make a
mistake that it will come down on them.
 Unfortunately, with this attitude the people who work for a manager are less likely to
grow in their career and will either stagnate or leave the company or position quickly.
This will help to perpetuate the feelings of the manager that no one can measure of to him
in their skill levels. This type of demeanor works well when you have a person that needs
to be consistently supervised. Someone who can't take a task and see if through on their
own, they need to have it explained to them step by step.

An entrepreneur is generally considered a leader versus a manager. They will give people
tasks and a deadline and generally leave them alone until it is completed. They will trust
people to get the job done without having to constantly look over their shoulder. When
they hire someone they believe that they have hired someone who is qualified to handle
the tasks before them, so they don't think they should have to ask for status reports on an
hourly basis. The people who work for them are normally intelligent individuals who will
move up quickly in the company, because their boss has helped to build their confidence
and it will be noticed by not only their boss but other people within the company. This
type of manager believes that it is important to have people with varied skill sets because
it will only enhance his own skills and abilities.

Of the two different types of managers mentioned, it is normally more productive to work
for a leader versus a manager. You will be able to improve your skill set and to move up
within the company because you have learned good managerial skills from a true leader.
Learning how this type of person manages an office will help you to be able to become a
leader within the company and it will help you in all facets of your life.

4. Type of business
•Business entrepreneur: Convert ideas into reality; deal with both manufacturing
and trading aspect of business (Small trading and manufacturing business)

•Trading entrepreneur: Undertakes trading activities; concerned

with marketing (Domestic and international level)
•Industrial entrepreneur: Undertakes manufacturing activities only;
new product development etc (textile, electronics, etc)

•Corporate entrepreneur: Interested in management part of organisation;

exceptional organising, coordinating skills to manage a corporate undertaking
(Ambani, Tata families)

•Agricultural entrepreneur: Production and marketing of

agricultural inputs and outputs (Dairy, horticulture, forestry)
 Use of Technology
•Technical entrepreneur: Production oriented, possesses innovative
skills in manufacturing, quality control etc.
•Non technical entrepreneur: Develops marketing, distribution
facilities and strategies

•Professional entrepreneur: Uses the proceeds from sale of one

business to start another one. Brimming with ideas to start new
ventures

Motivation
•Pure entrepreneur: Psychological and econ
•Induced entrepreneur: Incentives, concessions, benefits offered
by government for entrepreneurs motivates him
•Motivated entrepreneur: Sense of achievement and fulfillment
motivate him
•Spontaneous entrepreneur: Born entrepreneurs with inborn traits
of confidence, vision, initiative

Growth
•Growth entrepreneur: One who enters a sector with a high growth
rate; is a positive thinker
•Super growth entrepreneur: One who enters a business and
shows a quick, steep and upward growth curve

Stages in Development
•First generation entrepreneur: Innovator, risk taker, among the
firsts in family to enter business

•Modern entrepreneur: Who considers feasibility of business, which

can adapt to change and dynamic market

•Classical entrepreneur: One who gives more importance to

consistent returns than to growth; concerned about customer and
marketing needs
•Area- Rural and Urban entrepreneur

•Gender/Age- Men and Women entrepreneur

•Scale- Small and Large scale entrepreneur

5. The Nature and Importance

of Entrepreneurs

Evolution of the term

Entrepreneur
•Earliest Period – Go Between
•Middle Ages – Actor or manager of big
productions
•17th Century – Contractor for the
government
•18th Century – Separate from financier
•19th & 20th Centuries – Evolved from
manager to innovator

Definition of Entrepreneurship
•Entrepreneurship is the process ofcreating
something new with value by devoting the
necessary time and effort, assuming the
accompanying financial, psychic, and
social risks, and receiving the resulting
rewards of monetary and personal
satisfaction and independence

Entrepreneurial Decision Process

•Entails a movement from something to
something
•A change from the current lifestyle to a new
lifestyle, a decision to become an
entrepreneur by leaving present activity

Change from Present Lifestyle

•Two conducive work environments
•R&D
•Marketing
Disruption of Work Environment

Role of Entrepreneurship in
Economic Development
•The product evolution process is the

process through which innovation develops and commercializes through entrepreneurial

activity

•The critical point in the product evolution

process is the intersection of knowledge and
a recognized social need .

7. Introduction

Women Entrepreneurs may be defined as the women or a group of women who

initiate, organize and operate a business enterprise. Government of India has
defined women entrepreneurs as an enterprise owned and controlled by a women
having a minimum financial interest of 51% of the capital and giving at least 51% of
employment generated in the enterprise to women. Like a male entrepreneurs a
women entrepreneur has many functions. They should explore the prospects of
starting new enterprise; undertake risks, introduction of new innovations,
coordination administration and control of business and providing effective leadership
in all aspects of business.

Push-Pull factors and Women in business

Women in business are a recent phenomenon in India. By and large they had confide
themselves to petty business and tiny cottage industries. Women entrepreneurs
engaged in business due to push and pull factors. Which encourage women to have
an independent occupation and stands on their on legs. A sense towards independent
decision-making on their life and career is the motivational factor behind this urge.
Saddled with household chores and domestic responsibilities women want to get
independence Under the influence of these factors the women entrepreneurs choose
a profession as a challenge and as an urge to do some thing new. Such situation is
described as pull factors. While in push factors women engaged in business activities
due to family compulsion and the responsibility is thrust upon them.

Problems of Women Entrepreneurs in India

Women in India are faced many problems to get ahead their life in business. A few
problems cane be detailed as;

1. The greatest deterrent to women entrepreneurs is that they are women. A kind of
patriarchal – male dominant social order is the building block to them in their way
towards business success. Male members think it a big risk financing the ventures
run by women.

2. The financial institutions are skeptical about the entrepreneurial abilities of

women. The bankers consider women loonies as higher risk than men loonies. The
bankers put unrealistic and unreasonable securities to get loan to women
entrepreneurs. According to a report by the United Nations Industrial Development
Organization (UNIDO), "despite evidence that women's loan repayment rates are
higher than men's, women still face more difficulties in obtaining credit," often due to
discriminatory attitudes of banks and informal lending groups (UNIDO, 1995b).

3. Entrepreneurs usually require financial assistance of some kind to launch their

ventures - be it a formal bank loan or money from a savings account. Women in
developing nations have little access to funds, due to the fact that they are
concentrated in poor rural communities with few opportunities to borrow money
(Starcher, 1996; UNIDO, 1995a). The women entrepreneurs are suffering from
inadequate financial resources and working capital. The women entrepreneurs lack
access to external funds due to their inability to provide tangible security. Very few
women have the tangible property in hand.

4. Women's family obligations also bar them from becoming successful

entrepreneurs in both developed and developing nations. "Having primary
responsibility for children, home and older dependent family members, few women
can devote all their time and energies to their business" (Starcher, 1996, p. 8).The
financial institutions discourage women entrepreneurs on the belief that they can at
any time leave their business and become housewives again. The result is that they
are forced to rely on their own savings, and loan from relatives and family friends.

5. Indian women give more emphasis to family ties and relationships. Married
women have to make a fine balance between business and home. More over the
business success is depends on the support the family members extended to women
in the business process and management. The interest of the family members is a
determinant factor in the realization of women folk business aspirations.

6. Another argument is that women entrepreneurs have low-level management

skills. They have to depend on office staffs and intermediaries, to get things done,
especially, the marketing and sales side of business. Here there is more probability
for business fallacies like the intermediaries take major part of the surplus or profit.
Marketing means mobility and confidence in dealing with the external world, both of
which women have been discouraged from developing by social conditioning. Even
when they are otherwise in control of an enterprise, they often depend on males of
the family in this area.

7. The male - female competition is another factor, which develop hurdles to women
entrepreneurs in the business management process. Despite the fact that women
entrepreneurs are good in keeping their service prompt and delivery in time, due to
lack of organisational skills compared to male entrepreneurs women have to face
constraints from competition. The confidence to travel across day and night and even
different regions and states are less found in women compared to male
entrepreneurs. This shows the low level freedom of expression and freedom of
mobility of the women entrepreneurs.

8. Knowledge of alternative source of raw materials availability and high negotiation

skills are the basic requirement to run a business. Getting the raw materials from
different souse with discount prices is the factor that determines the profit margin.
Lack of knowledge of availability of the raw materials and low-level negotiation and
bargaining skills are the factors, which affect women entrepreneur's business
adventures.

9. Knowledge of latest technological changes, know how, and education level of the
person are significant factor that affect business. The literacy rate of women in India
is found at low level compared to male population. Many women in developing
nations lack the education needed to spur successful entrepreneurship. They are
ignorant of new technologies or unskilled in their use, and often unable to do
research and gain the necessary training (UNIDO, 1995b, p.1). Although great
advances are being made in technology, many women's illiteracy, strucutural
difficulties, and lack of access to technical training prevent the technology from being
beneficial or even available to females ("Women Entrepreneurs in Poorest Countries,"
2001). According to The Economist, this lack of knowledge and the continuing
treatment of women as second-class citizens keeps them in a pervasive cycle of
poverty ("The Female Poverty Trap," 2001). The studies indicates that uneducated
women donot have the knowledge of measurement and basic accounting.

10. Low-level risk taking attitude is another factor affecting women folk decision to
get into business. Low-level education provides low-level self-confidence and self-
reliance to the women folk to engage in business, which is continuous risk taking and
strategic cession making profession. Investing money, maintaining the operations
and ploughing back money for surplus generation requires high risk taking attitude,
courage and confidence. Though the risk tolerance ability of the women folk in day-
to-day life is high compared to male members, while in business it is found opposite
to that.

11. Achievement motivation of the women folk found less compared to male
members. The low level of education and confidence leads to low level achievement
and advancement motivation among women folk to engage in business operations
and running a business concern.

12. Finally high production cost of some business operations adversely affects the
development of women entrepreneurs. The installation of new machineries during
expansion of the productive capacity and like similar factors dissuades the women
entrepreneurs from venturing into new areas.

How to Develop Women Entrepreneurs?

Right efforts on from all areas are required in the development of women
entrepreneurs and their greater participation in the entrepreneurial activities.
Following efforts can be taken into account for effective development of women
entrepreneurs.

1. Consider women as specific target group for all developmental programmes.

2. Better educational facilities and schemes should be extended to women folk from
government part.

3. Adequate training programme on management skills to be provided to women

community.

4. Encourage women's participation in decision-making.

5. Vocational training to be extended to women community that enables them to

understand the production process and production management.

6. Skill development to be done in women's polytechnics and industrial training

institutes. Skills are put to work in training-cum-production workshops.

7. Training on professional competence and leadership skill to be extended to women

entrepreneurs.

8. Training and counselling on a large scale of existing women entrepreneurs to

remove psychological causes like lack of self-confidence and fear of success.

9. Counselling through the aid of committed NGOs, psychologists, managerial

experts and technical personnel should be provided to existing and emerging women
entrepreneurs.

10. Continuous monitoring and improvement of training programmes.

11. Activities in which women are trained should focus on their marketability and
profitability.

12. Making provision of marketing and sales assistance from government part.
13. To encourage more passive women entrepreneurs the Women training
programme should be organised that taught to recognize her own psychological
needs and express them.

14. State finance corporations and financing institutions should permit by statute to
extend purely trade related finance to women entrepreneurs.

15. Women's development corporations have to gain access to open-ended

financing.

16. The financial institutions should provide more working capital assistance both for
small scale venture and large scale ventures.

17. Making provision of micro credit system and enterprise credit system to the
women entrepreneurs at local level.

18. Repeated gender sensitisation programmes should be held to train financiers to

treat women with dignity and respect as persons in their own right.

19. Infrastructure, in the form of industrial plots and sheds, to set up industries is to
be provided by state run agencies.

20. Industrial estates could also provide marketing outlets for the display and sale of
products made by women.

21. A Women Entrepreneur's Guidance Cell set up to handle the various problems of
women entrepreneurs all over the state.

22. District Industries Centres and Single Window Agencies should make use of
assisting women in their trade and business guidance.

23. Programmes for encouraging entrepreneurship among women are to be

extended at local level.

24. Training in entrepreneurial attitudes should start at the high school level through
well-designed courses, which build confidence through behavioral games.

25. More governmental schemes to motivate women entrepreneurs to engage in

small scale and large-scale business ventures.

26. Involvement of Non Governmental Organisations in women entrepreneurial

training programmes and counselling.

11. What’s the difference between an Entrepreneur and an Intrapreneur? and why
should I care?
“An Entrepreneur is someone who has the skills, passion and financial backing to create
wealth from new business opportunities and is willing to take full responsibility for its
success or failure.”

“An Intrapreneur is someone who manages that business with entrepreneurial flare in
line with the expectations of the shareholders.”

Immediately we can start to see a difference. The Entrepreneur is typically a visionary

who spots an opportunity in the marketplace and has the passion, guile and contact base
to set the wheels in motion. The Intrapreneur has passion and drive but also has the
operational skills of running the “clockwork” of the business to enable a good idea to be
turned into commercial reality. He is the “inside entrepreneur”.

Both “preneurs” set themselves aside from employees in a number of ways but perhaps
the most significant is in their relationship with the business. It’s a question of
committment over involvement. Employees are involved, “preneurs” are committed. A
little bit like the egg and bacon breakfast, the chicken is involved but the pig is
committed.

I’m busy setting up a new business and haven’t got time to worry about this.
What’s this got to do with me?

There is a very simple answer to this:

Not every small business needs an Entrepreneur, but every business needs an
Intrapreneur.

In the same way that the seed of a business idea needs an Entrepreneur to shape and
cultivate it, so the Entrepreneur needs the Intrapreneur to pluck from his grasp those
seeds of opportunity, convert them in to a viable commercial plan and then manage that
plan to a profitable reality.

Without the intrapreneur, ideas entrepreneurs and small business are doomed to fail.

So before you go any further, ask yourself which you are, Entrepreneur or Intrapreneur,
and take action accordingly.

10. ENTREPRENEURIAL MOTIVATION

It should be interesting for you to know that the word ‘motivation’ has its
origin in the Latin word ‘movere,’ meaning "to move." Psychologically, it
means an inner or environmental stimulus to action, forces or the factors that
are responsible for initiation, sustaining (and restraining/abstaining from)
behaviour.
You will be amazed to learn that different people engage in the same
behaviour for different reasons (see the Box entitled, ‘Different Reasons’), that
there may, in fact, be more than a reason, a constellation of various influences,
and, that the reasons for continuing the same behaviour may be different from
the ones that triggered it off at the first place. In other words, motivations may

be diverse, multiple and dynamic.

OTHER

The different types of business entrepreneurs are discussed below:

In the initial stages of economic development, entrepreneurs tend to be shy and humble
but as the development process picks up speed, they tend to become more enthusiastic
and confident. They help make the business environment healthy and development
oriented. Highly enthusiastic and innovative entrepreneurs exist only in developed
countries as level of their -economic and technological development has reached a certain
level whereas in developing and under-developed countries, imitative entrepreneurs are
more successful.

However, the various types or entrepreneur are classified as under :

(1) According to the Type of Business :

(i) Business entrepreneur ; Business entrepreneurs are those entrepreneurs who

conceive the idea of a new product or service and then translate their ideas into reality.
Entrepreneur examines the various possibilities of sources of finance, supply of labour,
raw-materials or finished product as the case may be.

Business entrepreneur may be undertaking the trading business or manufacturing

business but initially the size of the business is very small. As the entrepreneur flourishes,
he tends to expand his business.

(ii) Trading entrepreneur : As the very name indicates trading entrepreneur is

concerned with trading activities and not manufacturing. Trading means buying the
finished product from the producer and selling off to the customer directly or through a
retailer.

A trading entrepreneur has to be creative enough as he has to identify the market. He has
to identify potential market, create demand through extensive advertisement of his
product and thus inspire people to buy his product. For this is inevitable for him to find
out the desires, tastes and choices of his customer in domestic as well as international
market.

(iii) Industrial entrepreneur : As the very name indicates, an industrial entrepreneur is

one who sets up an industrial unit. He perceives the opportunity to set up his unit,
complies with necessary formalities of getting license, power connection, pollution
control clearance (if the need be) arrange initial capital, providing securities and
guarantees to the financial institutions, making payment of wages and supply necessary
technical know-how. An industrial entrepreneur has the ability to convert economic
resources and technology into a considerably profitable venture. Manufacturer of leather
products, textiles, electronics, food items and the like are industrial entrepreneurs.

(iv) Corporate entrepreneur : Corporate entrepreneur is the one who plans, develops
and manages a corporate body. He is a promoter, an essential part of board of directors,
an owner as well as an entrepreneur. He gets his corporate body registered under the
requisite Act which gives his company the status of separate legal entity.

(v) Agricultural entrepreneur : Agricultural entrepreneur is the one who is engaged in

the agricultural activities. He uses latest technology to increase the productivity of
agriculture and also adopts mechanisation.

(2) According to Motivation :

(i) Pure entrepreneur : Pure entrepreneur is one who may or may not possess an
aptitude for entrepreneurship but is tempted by the monetary rewards or profits to be
earned from the business venture. He is status-conscious and wants recognition.

(ii) Induced entrepreneur : Induced entrepreneur is attracted by the various incentives,

subsidies and facilities offered by the government. 'An entrepreneur is not born' —this is
no doubt true as every person can be trained to become a good entrepreneur. Most of the
entrepreneurs who enter into business are induced entrepreneur as various kinds of
financial, technical and managerial facilities are provided by the government to promote
entrepreneurship. An entrepreneur can develop himself much more by attending EDPs
and they can make a stand in the market. Import restrictions, allocation of production
quotas to SSIs, reservation of products for small industry etc. have forced many young
people to set up a small industry.

Non-Resident Indians (NRIs) and educated unemployed seeking self-employment or

newly married bridegrooms by taking financial support of their in-laws may be described
as induced entrepreneur. This class of entrepreneur accounts for maximum number of
failures because there is no proper screening of misfits.

(3) According to the Use of Technology :

(i) Technical entrepreneur : The strength of a technical entrepreneur is in his skill in

production techniques. He concentrates more on production than on marketing. He
possesses craftsman skill in himself which he applies to develop and to improve the
technical aspect of the product.

(ii) Non-technical entrepreneur : Unlike technical entrepreneur, non-technical

entrepreneur is not concerned with the technical aspect of the product rather he spends
more time in developing alternative strategies of the marketing and distribution to
promote his business. His target is not to change the production technique but how to
increase the demand of the product in which he is dealing.

(iii) Professional entrepreneur : Professional entrepreneur means an entrepreneur who

is interested in floating a business but does not want to manage or operate it . Once the
business is established, he sells it out and catches on to float a new business.

(4) According to Stages of Development :

(i) First generation entrepreneur : First generation entrepreneur are those entrepreneurs
who do not possess any entrepreneurial background. They start an industrial unit by
means of their own innovative skills.

(ii) Second generation entrepreneur : Second generation entrepreneur are those

entrepreneurs who inherit the family business firms and pass it from one generation to
another.

(iii) Classical entrepreneur : A classical entrepreneur is a stereotype entrepreneur

whose aim is to maximize his economic returns at a level consistent with the survival of
the unit but with or without an element of growth.

(5) Classification Given by Danhof :

(i) Innovating entrepreneur : Innovative entrepreneurs are generally aggressive and

possess the art of cleverly putting the attractive possibilities into practice. An innovating
entrepreneur is one who introduces new goods, inaugurates new methods of production,
discovers new market and re-organises the enterprise. He arranges money, launches an
enterprise, assembles the various factors, chooses the competent managers and sets his
enterprise go.

Schumpeter's entrepreneur is of this type. His entrepreneur belongs to that nation which
has wide industrial base, modern banking facilities, rich infrastructure, up to date
technology and the like. Innovative entrepreneurs do not exist in developing economies
where lack of capital, technological know-how block the path of innovativeness.

In developed countries, people are highly developed and consistently look forward for
change. They want to consume such products which do not commonly exist in the world.
They want progress as they have achieved high level of development. Innovating
entrepreneur played a key role in the rise of modern capitalism, through their enterprising
spirit, hope of making money, and ability to recognise and exploit opportunities.

(ii) Imitative entrepreneurs : Imitative entrepreneurs are characterised by readiness to

adopt successful innovations inaugurated by successful innovating entrepreneurs.
Imitative entrepreneurs do not imitate the changes themselves, they only imitate
techniques and technologies innovated by others. Such entrepreneurs are significant for
under-developed economies because they put such economies on high rate of economic
development. Entrepreneurs prefer to imitate the technology already existing somewhere
in the world.

However, the talent of imitative entrepreneurs should not be under-estimated. Even

imitative entrepreneurs are revolutionary and agents of change. They have ability to do
things which have not been done before even though, unknown to them, the problem may
have been solved in the same way by others. Innovative entrepreneur is creative, while
imitative entrepreneur is adoptive.

(iii) Fabtan entrepreneur : Fabian entrepreneurs are cautious and skeptical in

experimenting change in their enterprises. Such entrepreneurs are shy, lazy and lethargic.
They are imitative by nature but are not determined and also lack power. They imitate
only when it becomes perfectly clear that failure to do so would result in a loss of the
relative position of the enterprise.

(iv) Drone entrepreneur : Drone entrepreneurs are characterised by a refusal to adopt

opportunities to make changes in production formulae even at the cost of severely
reduced returns. They can suffer loss but are not ready to make changes in their existing
production methods. When competition increases, they are pushed out of the market as it
becomes uneconomical for them to exist and operate in a competitive market.

(6) According to Capital Ownership :

(i) Private entrepreneur : When an individual or a group of individuals set up an

enterprise, arrange finance, bear the risk and adopt the latest techniques in the business
with the intention to earn profits, he or the group is called us private
entrepreneur/entrepreneurs.

(ii) State entrepreneur : As the name indicates, state entrepreneur means the trading or
industrial venture undertaken by the state or the government itself.

(iii) Joint entrepreneur : Joint entrepreneur means the combination of private

entrepreneur and state entrepreneur who join hands.

(7) According to Gender and Age :

(i) Man entrepreneur

(ii) Woman entrepreneur

(iii) Young entrepreneur

(iv) Old entrepreneur

(v) Middle-aged entrepreneur

(8) According to Area :

(i) Urban entrepreneur

(ii) Rural entrepreneur

(9) According to Scale :

(i) Large scale industry entrepreneur

(ii) Medium scale industry entrepreneur

(i) Small scale industry entrepreneur

(ii) Tiny industry entrepreneur.

9. ENTREPRENEURIAL COMPETENCIES
As noted in the introduction, every career draws on the competencies of an
individual. Some of these competencies may be general and some peculiar to
the chosen career. You may understand competencies to mean abilities and
skills. However, we would desist from calling these as personality traits as
such a conceptualization only reinforces the mistaken belief that entrepreneurs
are born rather than made. We believe that recognition of these competencies
as abilities and skills makes entrepreneurship as a teachable and learnable
behaviour. In this section we orient you towards a set of entrepreneurial
competencies developed by the Entrepreneurship Development Institute of
India (EDI) Ahemdabad. These competencies were identified by a thorough
research procedure based on critical analysis of the case studies of the
successful entrepreneurs. We also annex a questionnaire that you can use to
evaluate your score on each of these competencies. We would also suggest
how you might improve on your scores.
_______________________________________________
3.2.1 ENTREPRENEURIAL COMPETENCIES
IDENTIFIED BY THE EDI
(i) Initiative- acting out of choice rather than compulsion, taking the lead
rather than waiting for others to start.
3
(ii) Sees and Acts on Opportunities- A mindset where one is trained to
look for business opportunities from everyday experiences. Recall
‘oranges’ example.
(iii) Persistence- A ‘never say die’ attitude, not giving up easily, striving
Information seeking continuously until success is achieved.
(iv) Knowing- Knowing who knows, consulting experts, reading relevant
material and an overall openness to ideas and information.
(v) Concern for High Quality of Work- Attention to details and
observance of established standards and norms.
(vi) Commitment to Work Contract- Taking personal pains to complete
a task as scheduled.
(vii) Efficiency Orientation- Concern for conservation of time, money and
effort.
(viii) Systematic Planning- Breaking up the complex whole into parts, close
examination of the parts and inferring about the whole; e.g.
simultaneously attending to production, marketing and financial
aspects (parts) of the overall business strategy (the whole).
(ix) Problem solving-Observing the symptoms, diagnosing and curing.
(x) Self-confidence- Not being afraid of the risks associated with business
and relying on one’s capabilities to successfully manage these.
(xi) Assertiveness- Conveying emphatically one’s vision and convincing
others of its value.
(xii) Persuasion- Eliciting support of others in the venture.
(xiii) Use of Influence Strategies- Providing leadership.
(xiv) Monitoring- Ensuring the progress of the venture as planned.
(xv) Concern for Employee Welfare- Believing in employee well being as
the key to competitiveness and success and initiating programmes of
employee welfare.
The self-administered questionnaire in the annexure to this chapter would help
you measure where you stand on these competencies. Given that these
competencies matter in entrepreneurial success. EDI estimates that
development of these competencies can substantially (as much as 33%) bring

down incidence of business failures/industrial sickness.