Unit1: Introduction to Entrepreneurship

Definition of Entrepreneur, Entrepreneurial Traits, and Entrepreneur vs. Manager, Entrepreneur

vs. Intrapreneur. The Entrepreneurial decision process. Role of Entrepreneurship in Economic
Development, Ethics and Social responsibility of Entrepreneurs. Opportunities for Entrepreneurs
in India and abroad. Woman as Entrepreneur.
Case Study:- Entrepreneurship---Luck or Persistence

Unit II: Creating and Starting the Venture

Sources of new Ideas, Methods of generating ideas, creating problem solving, product planning
and development process.
Case Study: - 180s

Unit III: The Business Plan

Nature and scope of Business plan, Writing Business Plan, Evaluating Business plans, Using and
implementing business plans. Marketing plan, financial plan and the organizational plan,
Launching formalities.
Case Study:-(1) Dealing with the Competition, (2) A New Spin On Music.(Kuratko)

Unit IV: Financing and Managing the new venture

Sources of capital, Record keeping, recruitment, motivating and leading teams, financial
controls. Marketing and sales controls. E-commerce and Entrepreneurship, Internet advertising
Case Study: - Darshan Enterprises

Unit V: New venture Expansion Strategies and Issues

Features and evaluation of joint ventures, acquisitions, merges, franchising. Public issues, rights
issues, bonus issues and stock splits.
Case Study: - Satyam and GE
Unit1: Introduction to Entrepreneurship

Definition of Entrepreneur

Entrepreneur (Oxford Dictionary) – Person who undertakes an enterprise with chances of

profit or loss.
(As I have understood, Entrepreneur is a person who undertakes a business activity of which he
has no background and faces considerable risks in the process. If either of the two elements, i.e.,
“no background” or “considerable risk” is missing in the venture, it is no entrepreneurship).
Enterprise (Oxford Dictionary) – Bold Undertaking
Entrepreneur – (New Encyclopedia Britannica) – An individual who bears the risk of
Operating business in the face of uncertainty about the future conditions.
Common Meaning – one who starts his own, new and small business
Entrepreneurship – It is a philosophy or process through which an entrepreneur seeks
innovation and employment.
Entrepreneur Entrepreneurship Enterprise
Person Process or Philosophy Object
Dissecting the word we get
Entre – Enter Pre – Before Neur – Nerve Centre
Entrepreneurship can also be described as a creative and innovative response to the
environment.
Entrepreneurship Theories
1600 – French verb – Entreprendre – to undertake.
1700 – Person bearing Risk or Profit in a fixed price contract (Risk)
1725 – Richard Cantillon – Person bearing risks is different from Capital Supplier (Risk)
1803 – J. B. Say – Shifts economic resources out from an area of lower to higher
productivity & greater yields (Value Addition)
1934 – Joseph Schumpeter – Innovator and develops untried technology (Productivity &
Innovation)
1961 – David McClelland – Highly motivated, energetic, moderate risk taker (Need for
achievement)
1964 – Peter Drucker – Searches for change, responds to it & exploits as opportunity
(Opportunity Focused)
1980 – Karl Vesper – Behaviour Perceptions– Economists, Psychologists, Businessmen,
Politicians (Environment)
1983 – Gifford Pinchot – Intrapreneur
1985 – Robert Hisrich – Creating something different with value, devoting time & effort,
assuming risks (FPS); results– rewards and satisfaction (Leadership & Vision)
Please note that key word in Entrepreneurship is RISK. Any venture where risk is mitigated
due to any reason does not qualify to be called entrepreneurship.
Entrepreneurs are people who create new business activity in the economy and bear
considerable business risk in the process. This is often done by starting new companies.
But they can also create new business activity by introducing a new product or creating a
new market
Some other related facts about Entrepreneurship
• Entrepreneurs are made; they aren’t born.

(This statement is more of public posturing than fact. Essential characteristics of an

entrepreneur, i.e., ambitiousness, capacity to take moderate risks, organizing ability, persistence,
vision, etc, cannot be taught in any school. These are inborn characteristics of a person. Know
this fact but don’t write it in the answer sheet).

• Incubator organization is an organization that supports entrepreneurs

• Venture Capitalists – VCs are like bankers, but since they aren’t subject to strict
regulations as bankers, they take greater risks in making investments – organized as
formal businesses, they expect to reap 25– 30% annually and get more actively
involved in the ventures than bankers do.

• Angels are private individuals who invest directly in firms and receive equity stake
in return – they act as advisers to founders.

• Don’t confuse entrepreneurship with running a business. Every person launching a

business is not an entrepreneur. A businessman’s son taking over his established
family business or starting another factory in neighboring town is no entrepreneur
because he is well trained in matters of that business by virtue of constant exposure
since childhood. He has support of family and friends in terms of finance and
advice should going gets tough. With his training, professional and personal
contacts and financial backing, risk element and uncertainty are almost missing in
such business. Whereas, a farmer’s son, venturing to open a grocery or even
‘pan shop’ is an entrepreneur because he is stepping into an uncharted

Entrepreneurial Traits
The highly motivated live for more than just earning money; they live to have an impact. Money
can only be so motivating before it becomes shallow and meaningless. The highly
motivated feel a deep sense of purpose and are compelled to manifest what they feel, vision and
seek. It is this deep feeling which fuels their motivation; after all, e-motion equates to energy in
motion.
1. Take full responsibility.
In a society quick to make excuses where people blame everything from their childhood to the
government for their lack of success, the highly motivated refuse to buy into any type of
mentality that would make someone other than themselves responsible for their success, or lack
of it. The highly motivated never give their power over to outside people, events for
circumstances.
Motivated individuals live by the simple mantra “it’s up to me.” They understand that other
opinions don’t have to become their reality, and make the choice to lay the future of their success
completely within their own grasp. The idea of being fully responsible may be daunting, but
more than daunting, the highly motivated find this pressure inspiring. Certainly there will be
things in life they cannot control, such as nature, the past and other people, but it is for this
reason they take full responsibility for directing their thoughts, emotions, choices and actions.
2. Live with clear intent.
The key ingredient which sets the highly motivated apart from others is they live their lives
intentionally. They are doing what they believe they were placed upon this earth to do. They
know their purpose, and they live it on purpose. Having a sense of purpose in life is one of the
most important elements in becoming a fully evolved human being. The exceptionally motivated
feel the most alive when they are doing what they love.
Because they live on purpose, their entire life is directed towards doing their job right and to the
very best of their ability. They love what they do, and it shows. Their conviction is as evident as
it is persuasive. It helps them draw the right people into their lives to partner with. Because they
live with clear intention, with their focus largely on bringing value into the lives of others, the
money takes care of itself.
3. Willingness to sacrifice.
The highly motivated rarely question if they are willing to pay the price to get them the success
they seek. The greatest difference between the successful and unsuccessful is finding out what it
will cost them to make their goals a reality. The successful are relentless in their efforts to
making their dreams a reality, and nor will they be heard complaining about the effort or time it
takes to do what they need to do. The successful are clear on the why’s of what they do.
Their why’s provide the deeper meaning responsible for sustaining their motivation. They
understand they can get practically anything they want out of life--if they are willing to pay the
price.
4. Stay focused.
All of us are overloaded with tasks, messages, emails, children, and partners vying for our time.
This is why the ability to stay focused is essential for achievement. All things are important, and
love should always come first, which is why the highly motivated remain clear on their priorities.
They know where and how to invest their time to achieve their big pay-offs down the road. They
organize their time in a way which allows them to focus on their passions while also being able
to sustain the support they need.
Motivated individuals create a supportive team to keep them focused and pointed in the direction
of their larger purpose. Again, motivation is contagious so it doesn’t matter who it is, whether it
is their love interest or business partner, everyone becomes an essential part of their journey. The
highly motivated stay close to their goals, involve those closest to them in their passions, and
create a crusade. They spend a significant amount of time focusing on and visioning their bigger
picture making it reality. Like any habit, staying focused becomes easier the more it is practiced.
5. Become an expert.
The highly motivated study their field with fervor and passion. They know it better than anyone
else and are on the continual search for knowledge. Many of these individuals find a way to
share their purpose in whatever forum best suited for them; coaching, mentoring, speaking,
teaching, blogging, writing, TV, Radio etc. They make it a point to share their information with
as many as possible. The exceptionally motivated believe in education, and in the idea that
people need to learn and love to learn.
6. Written and spoken maps.
The highly motivated put their dreams into written form. In doing this they create an action plan
which puts them on the path to where they want to go. They are well aware that goals which are
not written down are most often not achieved. When goals are written they become real, as if
writing them down creates a signed contract. Not only are they writing their goals down, but the
highly motivated also make use of “auto suggestion” and read their goals out loud daily.
Speaking them serves to reprogram their unconscious mind re-directing their thinking towards
their bigger picture. As they communicate their goals, their goals become real and they develop a
deeper belief in them, thereby, increasing their motivation to achieve them.

7. Keep going.
Passion drives perseverance. It may sound simple, but the highly motivated are truly passionate
about what they have set out to achieve because they can see the value it will have on those
whom they seek to benefit. Because the deeper purpose of their mission has the potential to bring
value to the world, thoughts of stopping or giving up never enter as ideas for consideration. The
highly motivated hold a vision of what they want, and do all they can to ensure their vision is
bulletproof to frustration, doubt, confusion, rejection and failures. The road to success is not an
easy one, but nor does it have to be arduous. The exceptionally motivated live for their mission,
which makes each part of their journey useful and worth it.
8. Don’t delay.
The highly motivated are acutely aware that time is limited. They understand they do not have
forever to live and manifest their dreams. The clock is ticking, the time is now, there are no time-
outs, and sooner or later their number is going to be called. Motivated individuals know this, but
rather than seeing this as something negative or depressing they use it to spur them on to go after
what they want as energetically and as passionately as possible.
Success is one thing, and for the exceptionally motivated it is a great thing, but what is even
more important to these individuals is having an impact. They are driven by a deeper emotional
component of serving a purpose larger than themselves. Having an impact is what drives the
desire to turn their purpose into a crusade. For this reason, they are willing to suffer, sacrifice and
succeed as long as their success brings value. It is their primary motivation to be free in
advancing their own lives and those of others. It is their desire to live uninhibited and to express
and fulfill their purpose. It is this deeply felt purpose which drives their motivation. They seek to
leave a legacy of great significance.

Entrepreneur vs. Manager

Entrepreneur vs. Intrapreneur
The Entrepreneurial decision process
Role of Entrepreneurship in Economic Development
Ethics and Social responsibility of Entrepreneurs
Opportunities for Entrepreneurs in India and abroad
Woman as Entrepreneur.