its ... i Concept of Entrepreneur, Manager, Intrapreneur 1.1.1 Concept of Entrepreneur 1.1.2. Concept of Manager 1.1.3 Concept of Intrapreneur 1.1.4 Difference Between Entrepreneur, Intrapreneur, Manager -2 Entrepreneur and Entrepreneurship : Meaning, Definition, Evolution 1.2.1 Meaning and Definition of Entrepreneur 1.2.2 Meaning and Definition of Entrepreneurship 1.2.3 Evolution of Entrepreneurship 1.2.4 Characteristics of Entrepreneurship 1.2.5 Need and Importance of Entrepreneurship 1.3. Types of Entrepreneurs, Qualities and Functions of Entrepreneur 1.3.1 Types of Entrepreneur 1.3.2. Quolities of Entrepreneur 1.3.3. Functions of Entrepreneur _ 14 Factors influencing Entrepreneurship ; Psychological, Social, Economical and Environmental Factors oo Growth and pirtagalol iG. earl Business BA, 4874Entrepreneurship and Small Business Management 1.1 Concept of Entrepreneur, Manager, Intrapreneur 1.4.4. Concept of Entrepreneur : Term entrepreneur is derived from the French word ‘entrependret undertakes an activity. It was only in the early 1700s, when French ribed an ‘entrepreneur’ as one who bears ris uncertain prices which is probably clo: Re ard Cantillon, de: ain prices and selling at pplied today term ‘entrepreneur’ is one who organises and manages a the risk for the sake of profit. 9 An entrepreneur is a person who starts an enterprise. This he searching for opportunities but also by responding to the ch immediate environment wherein he operates and, thi changes in the way of doing business. He is a person. initiatives, skills and creativity in planning, organising an to unpredicted and uncontrollable situations. technique of making a new commodity or cre Definitions of the term Entrepreneur product to resell it at an uncertain price and using the resources while consequ (2) Webster: JEntrepreneurship and Small Business Management ____ Entrepreneurial Perspective. 4.4.2 Concept of Manager _1.1,.2 Concept of Manager EE ¢ The entrepreneur invents while the manager administers. * The entrepreneur sees opportunities, the manager sees predicaments, the entrepreneur develops something based on an observed opportunity and the manager runs an organisation. * A manager is one who deals with everyday affairs and operates an active venture, * Manager must use entrepreneurial talents in order to manage and invent new things. 1.1.3 Concept of Intrapreneur * The term “intrapreneur’ was termed in America during the seventies. Many senior executives of huge companies in America left their jobs to start their own ventures because their employers in these corporations were not open to new ideas. These executives turned entrepreneurs’ attained phenomenal success in their new endeavours, Some of them were in fierce competition to the corporations they left a few years ago. These kinds of entrepreneurs came to be known as intrapreneurs. Such business brain drain is a global phenomenon and is not only confined to the United States. Manufacturers throughout the world started devising ways of stopping their brilliant ‘executives from leaving their companies. * An American management expert, Gifford Pinchot III wrote his famous book. “Intrapreneuring” in 1985 and used the term ‘intrapreneurs' to explain the people who left their well paid executive positions to start their own enterprises. © Gifford Pinchot Il recommended that deep-rooted companies must learn to make use of the entrepreneurial abilities within to avoid stagnation and rejection. Intrapreneurs bring in novel products, services and methods which allow the company to expand and do well in a changing environment. What was needed, is a system and an organisation culture within a big organisation that would enable the executives to work like businessmen. These people are driven not by financial gain but by a deep need of personal accomplishment. Thus, firms must give such people with sufficient financial resources and the independence essential for the growth and use of their ideas. paals aglazyac| These people with their innovations and dedication are perceived as a valuable asset to the organisation, inspiring others. = .Business Management __Entrepreneurial Perg egan practising the intrapreneur concept Pinchot’s idea, International Busines anies in America t Even befo giant, implemented the idea of Indep ompt nits (I Each unit is promoted and run by an executive (intraprene ‘an independent entrepreneur Over one dozen such divisions are ne Pinchot inche working in this company. The very well known of these units is th manufacturing and marketing personal computers with a sales inco than 5 billion dollars. ’ In the same way, General Motors (GM) opened SaturEntrepreneurship and Small Business Management [Sr. No.| Characteristics 3. {Tendency to Gets hand dirty; \Action: may distress | employee by , doing their work | but when required, all of a sudden. | does’ .Sr. No. [ characteristics Attitude Towards Risk: Use of Market hip and Small Business Management Entrepreneur Likes reasonable risk; invests a lot but expects to be successful. Creates needs; creates products that cannot be Entrepreneurial Per Intrapreneur Likes reasonable risks; usually not afraid of being fired, so sees little personal risk. Does own market research andEntrepreneurship and Small Business Management Entrepreneurial Perspective — sreneurial Perspective Besides, Kuratko and Hodgetts (2004) define entrepreneurship as @ process of innovation and creation through the four dimensions of the individual, organization, environment and the process of collaboration with networks in government, education and institutional. In a way, entrepreneur comes before entrepreneurship. It is concerned with the development and co-ordination of entrepreneurial operations. The word ‘entrepreneurship’ usually means to assume. It owes its foundation to the western societies, But even in the west, it has gone through changes from time to time. In the early 16th century, the word was used to signify army leaders. In the 18th century, it was used to signify a dealer who buys and sells goods at tentative prices. x Towards 1961, Schumpeter, used the term innovator, fc an entrepreneur. Two hundred years before, the concept of entrepreneurship was shaded. only rrent years that entrept ified,Entrepreneurs! preneurship and Small Business Management 1.2.3 Evolution of Entrepreneurship the Earliest period, definition of entrepreneurship began as early as the who comes to the Middle East for trade. Marco Polo has signed an agr ith the capitalists to sell their products. In the contract merchant adventurer t 3 loan at 22.5% rate including insurance. Capitalist was the passive risk be merchant advent urer took the active role in trading, bearing all p! ‘emotional risks. When the merchant adventurer successfully sold the go completed the trip, the profits were divided with the capitalist taki up to 75%, while the merchant adventurer settled for eEntrepreneurship and Small Business Management Entrepreneurial Perspective In 19thand 20th century, entrepreneurs are not always associated with the management. According to Mertiam-Webster's online dictionary, an entrepreneur is one who organizes, manages, and assumes the risk of a business or an enterprise. The entrepreneur organizes and manages an enterprise for personal gain. The materials consumed in the business, for the use of the land, for the services he employs, and for the capital he requires, Andrew Carnegie is one of the best examples of this definition. Carnegie, who descended from a poor Scottish family, made the American Steel Industry one of the wonders of the industrial world. In the middle of the 20th Century, the function of the entrepreneurs is to recreate or revolutionize the pattern of production by introducing an invention. Innovation, the act of introducing some new ideas, is one of the most difficult tasks for the entrepreneur. For example, Edward Harriman, who reorganized the railroad in the United States and John Morgan, who developed his large banking house by feorganizing and financing the nation’s industries. Besides, the Egyptian who designed and built great pyramids out of stone blocks weighing many tons each, to laser beams, supersonic planes and space stations. In 21st century, entrepreneurs are known as a hero for Free Enterprise market. Entrepreneur of the century created many products and services and is willing to face a lot of risks in the business. According to Kuratko and Hodgetts, most people say entrepreneurs are pioneers in creating new businesses. In the year 2005, Hisrich, Peter and Shepherd regarded entrepreneur as an organizer who controls, systematize, purchases raw materials, arranges infrastructure, throw in his own inventiveness, expertise, plans and administers the venture. The future of entrepreneurship will be growth with development of technologies. The modern technologies and internet have improved the ways of conduct of business. Entrepreneurs now have the luxury of putting their business idea into action through the click of button. 19Entrepreneurship and Small Business Management Entrepreneurial Pers 1.2.4 Characteristics of Entrepreneurship 1, Economic and Dynamic Activity: * Entrepreneurship is an economic activity because it involves the formation creation of a venture to create wealth and guarantee an optimum use of resources, * Since this value creation activity is performed constantly in the midst of uj 2. Related to Innovation: ony. aa involves a non-: eee search for new concepts.Entrepreneurship and Small Business Management Entrepreneurial Perspective « Even though different tycoons might have unique characteristics of their own, they yet share some common traits, It is the way one thinks and acts and, thus, can survive in any situation, be it business or government: 7. Entrepreneurship as a Discipline: Entrepreneurship is a discipline with an information based theory which is the result of composite factors, namely, socio-economic, psychological, technological, legal and other factors. It is active in nature and one burdened with high risks involving a synthesis of capital, technology and human skills. 1.2.5 Need and Importance of Entrepreneurship 1. Development of Managerial Capabilities: * The major importance of entrepreneurship is in the fact that it assists in recognising and building managerial capabilities of entrepreneurs. * An entrepreneur studies a problem, recognises its alternatives, evaluates the options in terms of cost and benefits and finally selects the best option. * This assists in increasing the decision making skills of an entrepreneur. Besides, these managerial skills are used by entrepreneurs in forming new technologies and products instead of older technologies and products ending in higher performance. 2. Creation of Organisations: * Entrepreneurship results into formation of organisations when entrepreneurs gather and organise physical, human and financial materials and direct them towards achievement of objectives through managerial abilities. 3, Improving Standards of Living: * By forming productive organisations, entrepreneurship assists in creating a variety of goods and services accessible to the society which results into higher standards of living for the people. * Having luxury cars, computers, mobile phones, rapid growth of shopping malls, etc. are indicators to the rising living standards of people, and all this because of the efforts of entrepreneurs. 4. Means of Economic Development: * Entrepreneurship involves formation and utilisation of inventive ideas, maximisation of output from given materials, development of managerial skills, etc., and all these factors play very important role in the economic development of a country. 111Entrepreneurship and Small Business Management Entrepreneurial Bf 1.3 Types of Entrepreneurs, Qualities and Functions of Entr 1.3.4. Types of Entrepreneur 1. Innovative Entrepreneur: These are the ones who invent the new ideas, new products, ni methods or processes, discover potential markets and reorganize structure, i These are the industry leaders and contributes significantly towards the development of the country. a / for goods and services. They are aoe ready to take a risk because they car at a considerably low price, Imitating Entrepreneurs: The imitating) entrepreneursentrepreneurship and Small Business Management Entrepreneurial P Qualities of Entrepre rding to David McClelland, an entrepreneur is an achiever who following characteristics or qualities: 1 Innovativity: An entrepreneur is very innovative. His creativity leads him to seek out new opportunities and to try out new ideas, . Extremely Energetic: ‘As compared to an ordinary individual, an entrepreneur isRisk-bearing Function: The functions of an entrepreneur as risk bearer are particular in nature, The entrepreneur assumes all probable risks of business which surfaces | the cha of changes in he choices of consumers, conter ae aryEntrepreneurship and Small Business Management Entrepreneurial Perspective 4.4 Factors influencing Entrepreneurship : Psychological, Social, Economical and Environmental Factors Entrepreneurs are visionary, creative, confident, opportunity seeker, relation builder, and risktaker individuals who decided to ditch the nine-to-five lifestyle to set-up their own businesses, taking on financial risks in the hope for profit. But what is the making of such individuals? What factors play behind the scenes to produce them? Entrepreneurship, in fact, is a complex phenomenon influenced by the interplay of many distinct factors. Some of these factors are as follows: 1, Economic Factors: The economic environment exercises the most direct and immediate influence on entrepreneurship. This is likely because people become entrepreneurs due to necessity when there are no jobs. “In countries where the economy is poorer, or where unemployment rates are high, citizens turn to starting their own small businesses where they see opportunity," Trilby Rajna of Approved Index said. Economic factors impacting entrepreneurship include: Capital: Capital is one of the most important factors, yet one of the biggest barriers when launching a new business. Entrepreneurs require capital to start risky ventures and also require instant capital to scale up the business quickly if the idea is found to be successful. There are however numerous ways to fund a new venture including bank loans, crowdfunding, and bootstrapping. (b) Labour: The availability of labour impacts entrepreneurship. Nevertheless, the quality rather than the quantity of labour influences the emergence and growth of entrepreneurship. Raw Materials: The necessity of raw materials consisting of natural resources hardly needs any emphasis for establishing any industrial activity and the emergence of entrepreneurship. The absence of raw materials adversely affects the entrepreneurial development. 2. Psychological Factors: Entrepreneurship is not for the faint of heart. But then for whom is it! What does it take for an individual to become an entrepreneur? While there isn't a single “ideal” entrepreneurial personality, one thing remains constant: an entrepreneurial spirit. This type of spirit entails many traits and characters that make 400 million entrepreneurs out of 7 billion people worldwide. 11s a ©preneurship and Small Business Management (a) Passion: * Starting up a new business is not an easy task to pull off and a consistent an constant commitment to theidee and #6 long hours it will require to turn it to success is essential. * Passion is the fuel of this commitment that motivates entrepreneurs to rise e the morning and put their blood, sweat, and tears into their business. for Achievement: are self-sta 10 achieve. This achievement r ters with a need te f financial gain only bu sarily driven by the incentives © e comes with the stay determined in jughout the process. Failure is then a mere lesson to learn from and conti . Social Factors: Social factors can go a long way in boos ly helpful society that made thi Europe.envepreneurship and Small Business Management Entrepreneurial Perspective 0 social Networks: interacting with the surrounding society and forming a reliable network is essential. social networks facilitate access to information and influence the quality, quantity, and speed of information reception thus help identify opportunities 4 Environmental Factors: The environment is the conditions, circumstances, etc. affecting a person’s life. It consists of the actors and forces that affect the success and sustaining of people and organizations. The emergence and development of entrepreneurship is not a spontaneous one but a dependent phenomenon of various environmental factors. These factors may have both positive and negative influences on the emergence of entrepreneurship. Positive influences constitute facilitative and conducive conditions for the growth of entrepreneurship, whereas negative influences create inhibiting conditions to the growth and development of entrepreneurship. Factors of Environment that Affect Entrepreneurship (a) Venture Capital Availability : (b) Presence of Experienced Entrepreneurs (c) Technically SkilledLabourForce = (d) Accessibility of Sup POTS. a) pradee sects i noitelerictt sig © (o} Accessibility of Customers on Nowy ENSt NS Gay si 5) BAe Pate gir etEntrepreneurial Per Role of Entrepreneur in Growth and Development of the Business j of economic growth of a country. It increas ship in India is a key contributor in the area of emplo » innovations and product improvement, Not only does it cr ent but it has also built a structure for large-scale empl portunities, { of a country by promoting capital form 2. improving the standard of living and ss entity, entrepreneurs invest their own’ form of debt equity, etc.) from investors, lend public wealth and allows people to benefit and growing businesses. 2 by nature and defini nslation is that when 4 andship and Small Business Management ___ Entrepreneurial Perspective business that locates in a less developed area will create both direct and + jobs, helping lift regional economies in many different ways. nbined spending by all the new employees of the new businesses and the g jobs in other businesses adds to the local and regional economic ntral and state governments promote this kind of regional development by jing registered MSME businesses various benefits and concessions. 4, GDP and Per Capita Income: + India’s MSME sector, comprised of 36 million units that provide employment for more than 80 million people, now accounts for over 37% of the country’s GDP. + Each new addition to these 36 million units makes use uf ce land, labour and capital to develop rodu rc4 Small Business Management Entrepreneurial Persp Community Development: development doesn’t always translate into community develogr, evelopment requires infrastructure for education and \thcare, and other public services. For example, you need highly educated and skilled workers in a cor attract new businesses. If there are educational institutions, technical: schools and internship opportunities, that will help build the pool of edi skilled workers. Loti 4 meentrepreneurship and Small Business Management Entrepreneurial Perspective _ Efficiency Improvements: sucessful entrepreneur may take revenue from an established business. This can guse creative destruction’ A phrase used to describe changes in the economy ~ which in the short-term could lead to firms going out of business and/or job losses. However, this potential for creative destruction also creates an incentive for an established business to adapt and increase their own efficiency. For example, in response to Uber taxi services, it created an incentive for e shed taxi-firms to develop their own apps. Dynamic Efficiency: Entrepreneurs can make radical changes and introduce new technologies which significantly move on an industry. s For example, Henry Ford's novel use ‘of assembly lines enabled a drastic cut in the average cost of producing a motor car. His efficiency savings forced other carmakers to follow suit. oirirnds rrotengulgind °.t New Markets: art? ihGcidcte: YEAGER, FASIRVOIGFONY pAlwe Entrepreneurs can often ‘redefine the rules’ of an’ established industry. For example, in the 1990s, if you wanted to rent @ room, you would scour newspaper ads and have to make a decision based on 40 words of text. However, the new service y ly scan through dif bilities and gap Homes nT cerepreneurship and Small Busine agement pat a time when many cosmetiog et-up refrain from animal testing. It pro he the industry standard, ; may take a risk and provide a community, offering steam trains for tourists and locals, w business for more than the costs of in niteer led railway preneur can sell his F continued to grow and develop the business, Role of Entrepreneurship in Economic Devel:Entrepreneurship and Small Business Management Entrepreneurial Perspective Balanced Regional Development: The expansion of industry and business give a lot of public profits like transport amenities, health, education, entertainment etc. When the industries give their focus in selected cities, development gets restricted to these cities only. When the type of new entrepreneurs grows at a quicker rate, in view of raising competition in and around cities, they are compelled to establish their ventures in the smaller towns. This, in turn, helps in the development of backward regions also. . Dispersal of Economic Power: The flip side of industrial development is that it may lead to concentration of economic powers in a few hands. This gives rise to emergence of monopolies to the detriment of a free and competitive marketplace. Therefore, developing a large number of entrepreneurs is the need of the hour. This is so, since it not only helps in dispersing the economic power amongst the population but also in weakening the harmful effects of monopoly. wee Better Standards of Living: *od), Entrepreneurs play a vital role in achieving a higher rate of economic growth. : They are able to produce and supply quality goods at lower cost, accord requirements of the community at large. a As the prices of commodities decreases, the consumers get the p goods for their satisfaction. In this way, they help improve ‘the the people. a . Creating pee Apart from combining the factors a he also in tr new combination of factors. He always tries techniques of producing goods and seEntrepreneurial Perspective “Entrepreneurship and Small Business Management 4.6 Problem of Unemployment and Importance of Wealth Creation introduction ployment : Ant ‘oblem of unemployment. * India as a nation is faced with massive Pr Definition of Unemployment ined “as a state of worklessness ‘Unemployment can be defi for a man who is fit and willing to work" Itis a condition of involuntary and not voluntary idleness. Creating new jobs is a critical task and plays an important role in the economy. Drop in the financial market hits job market and creates unemployment. India has the largest population of youth in the world with about 66% of the population under the age of 35, so impact of declining financial market is the worst in India. Though education level in the recent years has increased but skill development is still a crucial issue. Moreover, poverty, limited access to skill based education, work experience are some of the major factors that lead to unemployment and ‘underemployment. Features of Unemployment in India -@ Some features ‘of unemployment in India have been identified as follows: 1, Theincidence of unemployment is much higher in urban areas than in rui 2. Unemployment rates for women are higher than those of men. 3. The incidence of unemployment among the educated is much higher than the overall unemployment. 94. There is greater unemploy! other major sectors. a Unemployment in India is characterised by chronic or disguised unemployment. dia is facing the problem of structural unemployment also. Types of Unemployment in India unemployment problem in India is divided in the following © ral areas. ment in the agricultural sector than in industrial and when we talk of employed people, we mean those who have work it the year. But this may not possible for all. ‘work is seasonal even though agricultural activities are performed sar, During the peak agricultural seasons (when the crop is ready people are required for work. Similarly in the sowing, weeding n period, more labour is required.Entrepreneurial « Employment therefore increases at this time. In fact we will find that there is hardly any unemployment in rural areas during these peak agricultural seasons. However, once these seasons are over the agricultural workers, especially those who do not own land or whose land is not sufficient to meet their basic requirement (these are Jandless labourers and marginal farmers. respectively), remain unemployed. This type of unemployment is known as seasonal unemployment. 2. Voluntary Unemployment: People who are unwilling to work at prevailing wage rate and people who get a continuous flow of income from their property or any other sources and need not to work, such people are voluntarily unemployed. 3. Frictional Unemployment: Unemployment attributable to the time required to match production activities with qualified resources. Frictional unemployment essentially occurs because resources, especially labour, are in the process of moving from one production activity to another. Employers are seeking workers and workers are seeking employment, the two sides just haven't matched up. Hence unemployment of the frictional variety increases. This mismatch is largely the result of limited information, which is often compounded by geographic separation between producer and resource. Cyclic Unemployment: Cyclic unemployment is based on a greater availability of workers than there are jobs for workers, It is usually directly tied to the state of the economy. > Lower demand for products due to lack of consumer confidence, disinterest, or reduction in end user spending results in the workforce cutting back on production. Since production is reduced, companies that retail such products may also cut back on workforce, creating yet more cyclical unemployment. ra . Disguised Unemployment: There are also instances where we find too many people working when so many are not required. Ih agriculture we may find that all members of the family work. It is possible that 3- 4 people can do a given work in the farm, but we find that the entire family of say 10 people doing the job. This may be because the excess people are not able to find employment elsewhere, so rather than remain unemployed they prefer to do the work alongwith others. This is known as disguised unemployment, 1.25* This occurs when more than the necessary numbers of people are employed for: specified work. * Disguised unemployment is found in agriculture because of the lack employment opportunities elsewhere. Similarly disguised unemployment can be found in industry and offices as well. Cau: and Consequences of Unemployment in India ea ee * The major cause of unemployment in India is the slow speed of development. The GDP growth rate is still slow even after seventy two years of independence. + The major causes which have been responsible for the wide spread unemployment _ can be spelt out as under. 1. Rapid Population Growth: * It is the leading cause of unemployment in rural India. In India, particularly in rural areas, the population is increasing rapidly. It has adversely affected the unemployment situation largely in two ways. © Inthe first place, the growth of population directly encouraged the unemployment by making large addition to labour force. It is since the rate of job expansion could never have been as high as population growth would have required. * Secondly, the quick population growth indirectly affected the unemployment situation by reducing the resources for capital formation. * Any rise in population, over a large absolute base as in India, implies a large absolute number. It means large additional expenditure on their rearing up, maintenance, and education. As an outcome, more resources get used up in private consumption such as food, clothing, shelter and so on and in public consumption like drinking water, electricity, medical and educational facilities. This has reduced the opportunities of diverting a larger proportion of incomes to saving and investment. 2. Limited Land: Land is the gift of nature. It is always constant and cannot expand like population growth. © India’s population is increasing rapidly, therefore, the land is not sufficient for the growing population. As a result, there is heavy pressure on the land. In rural areas, most of the people depend directly on land for their livelihood. Land is very limited in comparison to population. ¢ It creates the unemployment situation for a large number of persons who depend on agriculture in rural areas. 1.26| Agriculture: jn rural society agriculture is the only means of employment. However Most the rural people are engaged directly as well as indirectly in agricultural éperation. But, ture in India is basically a seasonal affair. It provides employment facilities to ‘the rural people only in a particular season of the year, 4 For example, during the sowing and harvesting period, people are fully employed S al ~ and the period between the post harvest and before the next sowing they remain ynemployed. It has unfavourably affected their standard of living, Fragmentation of Land: In India, due to the heavy pressure on land of large population results the fragmentation of land. It creates a great obstacle in the part of agriculture. As land is fragmented and agricultural work is being hindered, the people who depend on agriculture remain unemployed. This has an adverse effect on the employment situation. It also leads to the poverty of villagers. Backward Method of Agriculture: The method of agriculture in India is very backward. Till now, the rural farmers follow the old farming methods. ‘As a result, the farmer cannot feed properly many people by the produce of his farm and he is unable to provide his children with proper education or to engage them in any profession. It leads to unemployment problem. Decline of Cottage Industries: In rural India, village or cottage industries are the only means of employment particularly for the landless people. They depend directly on various cottage industries for their livelihood. But, nowadays, these are adversely affected by the industrialisation process. Actually, it is found that they cannot compete with modern factories in matter or production. As a result, the village industries suffer a serious loss and gradually lead to closing down. Owing to this, the people who work in there remain unemployed and are unable to maintain their livelihood. Defective Education: The day-to-day education is very defective and is confined within the class room only. Its main aim is to acquire certificates and degrees only. The present educational system is not job oriented, it is degree oriented, It is defective on the ground that is more general then the vocational. Thus, the people who have got general education are not capable to do any work. They are to be alled as good for nothing on the ground that they cannot have any job here; they an find the ways of self employment. It leads to unemployment as well as underemployment, 1.27irship and Small Business Mané . ransport and Communication: ta ri Fier ati in rural areas, there a no cele aie of transpory, communication, Owing to. this, the village peop! i} : IO are not engag agricultural work remain unemployed. It is peat pets we to start business for their livelihood and they are confined only within the limited boy of the village. f transp i hat the modern means o} * Itis aoe and commerce. Since there is lack of transport and COMMUNication way rural areas, therefore, it leads to unemployment problem among the villagers, 9. Inadequate Employment Planning: * The employment planning of the government fion growth. . Hee ct two crore people are added yearly to a existing Population But the employment opportunities did not increase See! to the Propoty rate of population growth. As a consequence, a great difference is visible betwee | the job opportunities and population growth. On the other pen itis a very difficult task on the part of the Government to offer adequate job facilities to all the people. + Besides this, the government also does not take adequate step in this direction, The faulty employment planning of the Government expedites this problem to great extent. As a result the problem of unemployment is increasing day by day. 1.6.4 Importance of Wealth Creation by an Entrepreneur jort and communication are the it is not adequate in comparison * The optimistic effect of entrepreneurship on economic performance has been Teferred to as the ‘Schumpeter’ effect. New firms create (new) jobs, leading toa subsequent decrease in unemployment. * Entrepreneurs may influence economic performance in different ways. They often play a vital role in the early evolution of industries by way of introducing new Products or processes and, in the long term, enhancing productivity through increased competition. * New entrants in the market may also create knowledge about what is technically Viable and what consumers prefer by introducing variations of existing products and services in the market. Further, self-employed individuals tend to work fo! longer hours than wage-earning people and may be more productive as thel income is more clearly linked to their working effort. 128Entrey rial 4 Entrepreneurship is basically concerned with creating wealth through production of goods and services. This results in a process of upward change whereby the réal per capita income of a country rises over time, or in other words, economic development takes place. Thus, entrepreneurial development is the key to economic development. In fact, it is one of the most critical inputs in the economic development of a region. It speeds up the process of activating factors of production leading to a higher rate of economic growth, dispersal of economic activities and development of backward regions. If a region is unable to throw up a sufficient number of entrepreneurs, then, alien entrepreneurs usually step in to offer goods and services needed by the people. However, the profits earned by these entrepreneurs are usually ploughed back into their business. Entrepreneurship not only begets but also injects entrepreneurship by starting a chain reaction when the entrepreneur constantly tries to progress the quality of existing goods and services and add new ones. For example, when computers came into the market there was continuous improvement in their models, functions etc, namely, first generation computers, personal computers, laptops, palmtops etc. Not only did this foster the development of the software industry, computer education institutes, computer maintenance and stationery units etc., but also other industries like, banking, railways, education, travel, films, medical and legal transcriptions, business process outsourcing [BPOs] etc. Thus, by harnessing the entrepreneurial talent, a society comes out of traditional lethargy to modernise industrial culture. Today, India needs more entrepreneurs to capitalise on new opportunities for creating both wealth and new jobs. 1.29Points to Remember * Entrepreneurship is a process of innovation and creation through the Gimensions of the individual, organization, environment and the process Collaboration with networks in government, education and institution. * The Entrepreneur invents while the manager administers, * A manager is a person who deals with everyday affairs and operates an active venture, * Intrapreneurs are the people who left their well paid executive positions to start their own enterprises. Intrapreneurs bring in novel products, services and methods which allow the company to expand and do well in a changing environment. * There are different types of entrepreneurs -Innovative, Imitating, Fabian and Drone, This classification is done on the basis of the willingness of an entrepreneur to create and accept the innovative ideas. + Entrepreneurship, in fact, is a complex phenomenon influenced by the interplay of many distinct factors like: Economic, Psychological, Social and Environmental factors. + Entrepreneurship in India is a key contributor in the area of employment generation, innovations and product improvement. Not only does it create self- | employment but it has also built a structure for large-scale employment | ‘opportunities. * It contributes to the economic growth of a country by promoting capital formation, increasing per capita income, improving the standard of living and balanced growth by removing regional disparities. * Unemployment can be defined as a “state of worklessness for a man fit and willing to work" After Covid -19, the situation of unemployment has been more crucial than before. ¢ Today India needs more entrepreneurs to capitalise on new opportunities for creation of wealth and new jobs. 130multiple Choice Questions. preneur is @ person witha 4, Anentrel (6) high @ low (a) German (b) French ‘own enterprises. {@) Intrapreneurs (b) Entrepreneurs @) Causal Unemployment (Q) Seasonal Unemployment ‘ans. :(1)-(b), (2)-(b), (3)-(a), (4)-(@). (8) Match the Pairs Group-A 4. Risk Bearing 2. French Economist 3, Condition of Voluntary and Involuntary Idleness 4, Drone Entrepreneur 5, Psychological Factor affecting Entrepreneurship Development The term ‘entrepreneur’ is derived from the need for achievement. (co) complex (d) varied word ‘entrependre’ (©) Latin (d) Greek are the people who left their well paid executive positions to start their (c) Managers (d) Leaders is not a forceful unemployment. (b) Frictional Unemployment (d) Voluntry Unemployment Group-B (a) Unemployment (b) Reluctant to Change (©) Essence of Entrepreneurship (d) Richard Cantillon {e) Passion Ans. :(1)-(0), (2)-(d), (3)-(@), (4)-(6), )-(@)- © Answer in One Sentence Define Entrepreneur. What is Initrapreneur ? Define Innovative Entrepreneur. Define Entrepreneurship. 1.31 State any Two Causes of Unemployment in India,Entrepreneurship and Small Business Management Entrepreneurial (D) Fill in the Blanks. ‘ i 2. ppwn (a) (b) © d) (e) .. The term "intrapreneur” was termed in during the seventies. _ What are the factors influencing Entrepreneurship ? is one who deals with everyday affairs and operates an active ventu entrepreneurs are skeptical about the changes to be made in ti organization. Entrepreneurship is a process. unemployment is normally found in agriculture. Ans. : (1) Manager, (2) Fabian, (3) Continuous, (4) Seasonal, (5) America. Give point of differences between ‘Entrepreneur’ Intrapreneur, and Manager. Classify different types of Entrepreneurs and explain each with example. Explain the Evolution of Entrepreneurship. Explain the Role of Entrepreneurship in Growth and Development of the Small Business. Write Short Notes: | Intrapreneur Importance of Wealth Creation by an Entrepreneur Problem of Unemployment Functions of Entrepreneur Qualities of Entrepreneur Concept of Entrepreneur eco 1.32