ATMIYA UNIVERSITY,

FACULCTY OF BUSINESS AND COMMERCE

DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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ATMIYA UNIVERSITY,
FACULCTY OF BUSINESS AND CAMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL
BBA EFB SEM-1
ENTREPRENEOUSHIP DEVELOPMENT

MODULE-2 ENTREPRENEURSHIP IN INDIA

 Evolution of Entrepreneurship in India
 Types of Entrepreneurs
 Competencies and Characteristics of an Entrepreneur
 Entrepreneurial Value: Values, Attitude and Motivation
 Importance of Intrapreneur in every organization

TOPIC-1 EVOLUTION OF ENTREPRENEURSHIP IN INDIA

Entrepreneurship has been in vogue right from ancient times in India. During
the medieval and early modem periods, it did not have the same vigour that
was experienced in the contemporary period in the Western countries.
Rather, the people who took to entrepreneurship during the British rule had to
face insurmountable problems.
In this unit we would look into the factors that were mainly responsible for
dampening the entrepreneurial spirit in India.
Certain policy decisions were made during that period, which were
detrimental to any kind of enterprise by the Indian people.
Yet, in certain parts of India, despite the unfavourable conditions, Indian
entrepreneurship could not be curbed.

TRACES OF ENTREPRENEURSHIP IN ANCIENT INDIA

Indian society, prior to the Muslim and British rule, was confined to villages
with its base in the rural economy.
A village, or at the most, a group of adjacent villages within a particular area
was the primary object of focus.
This was due to minimalist demands of the people. The nature of
consumption, therefore, was far less diversified, in comparison to that during
the later periods.
This self-sufficient characteristic of the rural society & economy, in fact,
protected the artisans from external pressures of competition.
 ATMIYA UNIVERSITY,
FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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In view of this situation, manufacturing activities were localized and less
specialized.
They continued to remain at a nascent stage for long and the situation was
more or less uniform all over the subcontinent.
Even though this was general situation during the period, Historians like
Romila Thapar have a different perspective.
They point out "building of roads opening up the subcontinent and attempting
to develop a uniform system of administration" during the Mauryan period and
"the occupation of north western India by non-Indian people" as factors that
gave rise to the Mercantile Evolution of Entrepreneurship in India community

GROWTH OF ENTREPRENEURSHIP IN ANCIENT INDIA:

In ancient India, Guilds became an increasingly important factor in the urban
life, both in their role in "organization of production and in shaping of public
opinion".
Artisans, being unable to compete with the guilds in their individual capacity,
had no alternative but to join them. Besides, the Guilds offered general
security and social status. Guilds, like present day companies, had to register
in a particular locality and had to take prior permission from the authorities in
order to shift their location.
Artisans of different crafts formed different Guilds. There were Guilds of
potters, metal workers, carpenters, and so on of others.
To cope with the demand for certain commodities, Guilds had to, at times, hire
labour and slaves. Guilds framed rules of work, maintained quality of finished
products and fixed prices to safeguard both the interests of the customer and
the artisan.
There were Guild courts to control the behaviour of its members. It even
interfered with the private affairs of its members. The Guild, because of its
association with a particular caste, had little problem in having a constant
supply of members.
Offspring of members belonging to a caste or a sub-caste often had no other
option but to joining the same profession as did their elders. It was only during
the period of transition when a caste or a sub-caste as a whole changed its
occupation was there a threat to the Guild.
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FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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Manufacturing activity took place in areas where raw material was easily
found, or where there was a tradition of a particular craft. Artisans migrated to
these areas from the surrounding places.
This was more so especially with the spinning and weaving of cotton and silk.
Guilds also played the role as centres of technical education. Besides
imparting knowledge related to a specific craft, it also improved upon it.
The Guilds took out processions with banners and insignia on festive
occasions. It was a kind of publicity.
They also made their presence and concern felt by donation to charitable
causes and to religious institutions. Though the Guild leaders were powerful
figures in the urban life they did not cherish political ambitions. Politics was
considered the prerogative of the King.

ENTREPRENEURIAL SCENARIO
With the establishment of british imperial rule in India, rate of extraction and
exploitation further increased, though in a much more invisible and
sophisticated way.
Earlier during the Moghul rule, the surplus produce and resources were
concentrated in the towns within the country but with the coming of the
European rulers the surpluses and resources of the subcontinent were drained
to other countries converting 'India into a colony.
After India's subjugation, the policies and the measures adopted by the British
were primarily to extract maximum surplus from the hinterland of the
subcontinent.
It was, of course, done in a much more sophisticated way than an outright
plunder. By the settlement of 1793, the land revenue in Bengal was
permanently fixed. The low prices at which jute and indigo were obtained
from the peasants were very calculated methods of extraction.

EXPLOITATION DURING THE BRITISH COLONIAL RULE

Compared to the large volumes of merchandise exported, the amount of
merchandise imported was proportionately less.
What was imported to counterbalance the export was detrimental to Indian
economy while it was a stimulus to the British economy.
Goods that were imported to India were factory made products for mass
consumption.
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FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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It created a market for itself also in the rural areas affecting the traditional
cottage industries which resulted in more unemployment and siphoning out of
money.
There was hardly any import of machinery to enable the native entrepreneurs
to set up industries to produce commodities for mass consumption.
At least till the beginning of the World Wars, the Indian entrepreneurship was
faced with insurmountable hurdles purposely erected to protect British
interests.
A large part of the export had to compensate for the induced import of services
and duties for the stores given to government of India by the government of
Britain.
The home charges that the government of India had to incur were to meet the
expenses for civil and military administration (much of it for military
operations outside India to protect British imperial interests) stores purchased
in Britain, and the interest on loans given to India for its so called
development such as construction of railways and canals for irrigation.
Both the railway and irrigation projects were indirect boosters to the British
economist as it was a great stimulus to the heavy engineering industries in
Britain. Moreover, the railway network and irrigation projects were so
designed that those who were to directly benefit were only badly affected.
The manner in which I the projects were constructed was entirely oriented for
export trade at the cost of ruining the food producing peasant economy.
 ATMIYA UNIVERSITY,
FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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TOPIC-2 TYPES OF ENTREPRENEURS

Entrepreneurs are people who establish a venture around innovation to change

the world. Entrepreneurs are innovators capable of taking risks and possess
specific skill sets like communication, leadership, business management and
technical skills. Entrepreneurship is establishing, developing, organising and
managing a business venture while bearing any of its risks to generate profits.
As there are different businesses, there are also many types of
entrepreneurship.
In this article, we will discuss 12 different types of entrepreneurship and learn
about the characteristics of entrepreneurship.

THE DIFFERENT TYPES OF ENTREPRENEURSHIP

People have different visions, goals, dreams and aspirations for the type of
business they want to create. For some, hard work is the success factor and for
some having enough capital results in a successful venture. Some
entrepreneurs give social good priority over other aspects.
Learning about the type of entrepreneurship a company follows can help you
decide whether you can survive their work culture. The type of
entrepreneurship affects the working environment and the qualities of the
entrepreneur. For example, if you are looking to work in a company that
fosters creativity and innovation, applying for a job in imitative or social
entrepreneurship will not serve the purpose. For you, the ideal workplace
would be companies following technology or innovative entrepreneurship.
Here are 12 different types of entrepreneurship:
1. Small business entrepreneurship
Small businesses represent an overwhelming majority of Indian
entrepreneurial ventures. People who establish small business
entrepreneurship make profits to support their families and live a modest
lifestyle.
As small businesses are small and lack the innovative factor, they fail to attract
venture capital for smooth running. These people usually fund their ventures
themselves or take up loans from friends and family members. The employees
are usually local people or family members.
Local hairdressers, grocery shops, milk booths, plumbers, carpenters and small
boutiques are part of the small business entrepreneurship.
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FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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2. Large company entrepreneurship

Companies with a finite life cycle display large company entrepreneurship.
These companies sustain because of innovation and it is the best choice for
advanced professionals who know how to sustain innovation.
When you work in a large company, you are likely to be a part of a large C-
level executive team. The products these companies offer are different variants
around their core product.
Small business entrepreneurship witnessing accelerated growth can become
large company entrepreneurship in no time. This is also possible when a large
company acquires them.

3. Scalable startup entrepreneurship

This type of entrepreneurship starts with a unique idea that can bring a change.
From creating a business plan to launching it, scalable startup
entrepreneurship recognises what is missing in the market and creates a
solution.
Such business usually receives funding from venture capitalists who provide
funding based on the uniqueness of the idea. They hire specialised employees
because they seek rapid expansion and high returns.

4. International entrepreneurship
In international entrepreneurship, entrepreneurs conduct business activities
across the Indian national boundaries.
This could either be opening a sales office in another country or exporting
goods from India to a foreign country. International entrepreneurship is
beneficial when the demand for goods and services is declining in the
domestic market and the demand arises from the international market.
Usually, international entrepreneurs sell products in the Indian market until
they reach the maturity stage and then sell them in the foreign market to earn
profits.
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FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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5. Social entrepreneurship
Social entrepreneurship is a type of entrepreneurship in which entrepreneurs
recognise a social problem and tailor their activities to create social value.
Such entrepreneurs develop services, solutions or products to solve critical
social issues and bring about social change.
This social change could be related to environment conservation, animal rights
protection or philanthropic activities for the underserved community.
The motivating factor of social entrepreneurship is achieving social benefits.
Working in a social enterprise means prioritising transformative social change
while ensuring financial sustainability.
These organisations use ethical practices such as conscious consumerism and
corporate social responsibility to facilitate success. Instead of making profits
and earning wealth for the owners, social entrepreneurship aims to make the
world a better place to live.

6. Environmental entrepreneurship
It is also known as ecopreneurship and green entrepreneurship. Profit
generation and a concern for the environment drive the primary goal of such
businesses. An ecopreneur adopts highly environmentally responsible business
values and practices.
They also try to replace the existing product or services with products that are
environmentally safe to use. In short, environmental entrepreneurship
prioritises the business impact on people and the environment besides profits.
Impact blogging, publishing an audiobook and creating SaaS software are a
few examples of environmental entrepreneurship as they protect the
environment by not cutting trees.

7. Technopreneurship
Technopreneurship is what you get on uniting technology with
entrepreneurship. It is also known as technology entrepreneurship.
A technopreneur merges entrepreneurial talent and skills with the technical
prowess to develop a business that thrives on the intensive use of technology.
Technopreneurs undertake calculated risks that have chances of earning
profits. In short, these are entrepreneurs who have the ability to revolutionise
the prevailing economic conditions and introduce breakthrough products for
the customers.
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FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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The foundation of the products and services of such a business is technology.
Such a business prefers to employ creative and technology-savvy people who
are passionate about bringing technological change.

8. Hustler entrepreneurship
A hustler entrepreneur is a self-starter motivated by their goals and aspirations
to succeed in entrepreneurship. Such people start small and work hard to grow
their business.
Instead of using money or capital to achieve their business goals, they put in
their best efforts.
They never wait for opportunities to come because they create opportunities.
Hustlers do not have a give-up attitude, have a big risk-taking appetite and are
always ready to face challenges.

9. Innovative entrepreneurship
The foundation of innovative entrepreneurship is inventions and new ideas.
These entrepreneurs can think about novel ways of doing business and have
the potential to turn a new idea into a successful venture.
They are business leaders and contribute significantly to the economy.
Moreover, such companies strive to make life better by providing products,
solutions and services which other companies have not.
Innovative entrepreneurship is ambitious and requires significant investment
to turn a new idea into a breakthrough service or product.

10. Imitative entrepreneurship

This entrepreneurship mimics or imitates existing business ideas and works
hard to improve them. Such companies imitate already functioning products
and services in the market, usually under a franchise agreement. Such
entrepreneurs have no interest in innovation, though they are ready to work on
and improve the existing processes.
Imitative entrepreneurship works by adopting current technologies worldwide
and modifying their existing technologies to suit the local conditions.
Fast food companies and multinational conglomerate companies are the best
examples of enterprises running on imitative entrepreneurship.

11. Researcher entrepreneurship

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FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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Researchers are those who conduct in-depth research on the market and
opportunities before launching their business.
Such entrepreneurs believe that with the right set of information and
preparation, they have a higher chance of achieving success in their
entrepreneurial business.
Rather than their instinct, they rely on facts, data and logic. Before launching
their business, they require a detailed plan and in-depth report of the research
findings to minimise the probability of failure.

12. Cyberpreneurship
Cyberpreneurs or cyber entrepreneurs are people who leverage the benefits of
information technology to do business.
They come up with new ideas to provide products and services to customers
via the internet.
These people understand the digital age and remove the hassle of going to a
physical store. Such entrepreneurship exists only online and is known as a
virtual business.
Ecommerce stores and over-the-top (OTT) entertainment platforms fall in the
category of cyberpreneurship.
 ATMIYA UNIVERSITY,
FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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TOPIC-3 COMPETENCIES AND CHARACTERISTICS OF AN

ENTREPRENEUR

10 CHARACTERISTICS OF AN ENTREPRENEUR

Entrepreneurs may lead different types of business ventures, but the basic
entrepreneur characteristics they need are quite the same. The following traits, if
nurtured, can help you become a successful entrepreneur:

1. Passion

More often than not, entrepreneurs are extremely passionate about their work. It is
this passion that maintains momentum during times of uncertainty. To become a
more passionate business leader, you should focus more on the meaning of your
work. Have a system to consistently remind yourself and your team that you are
trying to solve a problem rather than just making more money.

Knowing that your commitment makes an impact may give you the drive you need
to continue when doubt settles in or when the business gets difficult. Passion is what
keeps you focused on your objective.

2. Motivation

Entrepreneurs need motivation to constantly push their skills to stay relevant in a

dynamic market. To build motivation, you can start by looking at things at the
micro-level. Set and achieve small goals to build a ladder towards larger ones.
Maintain morale and confidence throughout your journey. Celebrate your small wins
and keep a positive mindset.

Optimism facilitates creativity. When coupled with motivation, it enables you to

develop new concepts and ideas. Use every opportunity or failure to analyse your
shortcomings and take conscious measures to avoid them in the future.
Entrepreneurs are dreamers with a plan of action. Keep your end goals in mind to
stay motivated.

3. Product or service knowledge

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FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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Entrepreneurs should know what products or services they want to offer and who
their target audience is. Clearly identify the category of your products or services
and be very clear about how they are beneficial to your customers. Study customer
needs thoroughly before building solutions.

You should constantly study your market to understand what customers need and
promote the exact features that set you apart from your competitors. Talk to your
clients and use their feedback to make changes and adjust your position as and when
required.

4. Risk management

Entrepreneurs inevitably have to take risks. When faced with a difficult situation,
you should make informed decisions after planning for all eventualities. As an
entrepreneur, risk-taking is a must if you wish to emerge above your competition.
With time, you improve at managing risks and recovering from failures. This further
increases your level of comfort with challenges and helps you take your business to
greater heights.

Always treat your journey as a learning process, and give equal importance to both
your successes and your failures along the way. Keep your goal in mind and commit
to consistent engagement.

5. Self-confidence

Entrepreneurs invest their time and resources in a particular initiative because they
are confident about creating something better than what the market has to offer. The
road to their goals may have poorly defined grey areas, but ultimately, those who
persevere are the ones who succeed.

To bolster self-confidence, it helps to meditate upon your intent and speculate the
future of your business venture. You can also practise affirmation by reminiscing
your accomplishments and the hurdles you jumped en route.

6. Money management

Entrepreneurs need to keep track of the financial situation of their business, its past
record and future targets. Even if you hire an accountant, you are the final decision
maker. You should be well aware of the financial situation of your business to be
able to make sound decisions.
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FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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Practise basic money management skills by preparing a budget and committing to it.
Invest available funds into the development of your business, but take only
calculated financial risks during investments. Consult experts to understand the
impact of your financial decisions in detail. The internet is also a treasure trove for
free financial advice and guidelines. You should select your sources carefully and
spend time learning the basics of financial management.

7. Vision

Entrepreneurship involves knowing what you want to achieve, setting a goal and
working towards it through tangible milestones. Vision is what defines the identity
of an organisation. Not only does it keep you driven, but it also fuels general
motivation across the workplace and encourages everyone involved to work towards
the success of a venture.

You may start by identifying what your professional goals are and how they align
with your vision. Following this, you may set milestones and plan an achievable
timeline to guide your actions. This allows you to witness your progression and
helps keep you committed to your goals. Prioritising your tasks keeps you from
feeling overwhelmed and lets you stay true to your vision in the long run.

8. Decision-making ability

Entrepreneurs often need to make quick decisions and take actions. To improve
decision-making skills, always avoid reacting spontaneously to situations and
circumstances. Understand all facets of a problem, inform yourself of its nuances
and then proceed to action. Assess the impact of a decision you intend to take and
avoid rushing into it at all costs. You can also narrow your options through a simple
pros and cons list.

9. Adaptability

In the infant stages of a business, entrepreneurs often have to manage multiple

aspects of the business like finance, marketing and sales simultaneously. Flexibility
in your schedule, as well as in your thinking, is crucial to continue growing in
challenging situations. To increase your adaptability, approach all activities, be it
personal or professional, with an open mind and be open to changing your ways if
required. Experiment with new methods and embrace new trends to enhance your
ability to adapt.
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FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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10. Ability to network

The ability to make connections and seize opportunities as and when they appear is
crucial to successful entrepreneurship. Interacting with new people facilitates access
to resources or knowledge that may otherwise be out of your reach. It allows you to
learn from the success and failure of others, promote what you bring to the table and
expand your business.

Although business relationships often have many superficial aspects to them, strive
to build genuine relationships with clients and other professionals in your field. Try
to make friends and acquaintances as part of running your business. If you come
across someone who may benefit another person in your network, connect them.
They will probably remember you and return the favour somewhere down the line.
 ATMIYA UNIVERSITY,
FACULCTY OF BUSINESS AND COMMERCE
DEPARTMENT OF MANAGEMENT
STUDY MATERIAL

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TOPIC-4 ENTREPRENEURIAL VALUE: VALUES, ATTITUDE AND

MOTIVATION

TOPIC-5 IMPORTANCE OF INTRAPRENEUR IN EVERY

ORGANIZATION