ENTREPRENEURSHIP

Unit I
Introduction
Entrepreneurship is the process of designing, launching, and running a new business,
often initially as a small business. It involves identifying a need in the market and
developing a product or service to meet that need.
Entrepreneur is a person who has possession of a new enterprise, venture or idea and
assumes significant accountability for the inherent risks and the outcome.
Types of Entrepreneurs based on Clarence Danhof classification
1. Innovative
2. Imitative
3. Fabian
4. Drone
 Entrepreneur

Characteristics. Charms/Benefits
1. Visionary 1. Total Control (Own Boss)
2. Rish-taker 2. Financial independence
3. Resilient 3. Personal growth
4. Creative 4. Flexibility
5. Passionate 5. Impact on society
6. Persistent 6. Freedom to innovate
7. Flexible 7. Autonomy
8. Resourceful 8. Networking
9. Leadership 9. Legacy
10. Goal-oriented
Entrepreneurial Competencies
Personal competencies Enterprise management competencies

1. Initiative 1. Manage business

2. Ability to see and act on Opportunities 2. Protect the business
3. Persistence 3. Manage customer credit and collection
4. Information seeking 4. Manage finances
5. Concern for high quality work
5. Manage business records
6. Commitment to work
6. Manage sales efforts
7. Commitment to efficienct
8. Systematic planning 7. Manage human resources
9. Problem solving 8. Promote product/services
10. Assertiveness
11. Persuasion
12. Use of influence strategies
Key Qualities of an Entrepreneur

1. Inner drive to succeed

2. Strong belief in self
3. Search for new ideas and innovation
4. Openness to change
5. Competitive by nature
6. Higly motivated and energetic
7. Accepting constructive criticism and rejection
Functions of an entrepreneur
1. Innovation 1. Procuring raw material
2. Idea generation 2. Procuring equipments/machinery
3. Assumption of Risk
3. Decision making
4. Organising and Management
5. Market research and selection of 4. Recruitment, selection and placement
product line of manpower
6. Determination of objective 5. Leading
7. Determination of the form of the 6. Managing growth
venture
7. Support to social environment
8. Managing funds
9. Selection of location 8. Economic growth
Factors affecting Entrepreneurship

1. Economic: Capital,Credit,Funds,etc.
2. Socio-economic:Education,Security,Social mobility,etc.
3. Personal: Desire,Control,Experience,etc
4. Political
5. Deregulation/Privatization
6. Internal control system: Efficiency of resources,etc
7. Govt. Incentives and Subsidies
8. Impact of ethical value system
9. Increasing demand for variety
10. Impact of service sector
11. Work Environment
12. Availability of resources: Manpower,Equipment,Funds,etc.
13. Career transition
14. Entrepreneurial education
 Legal Environment for Entrepreneurship
1. Companies Act, 2013
2. Foreign Exchange Management Act, 1999
3. The Factories Act, 1948
4. Industrial Disputes Act, 1947
5. Payment of Gratuity Act, 1972
6. Industries (Development and Regulation) Act, 1951
7. Prevention of Food Adulteration Act, 1954
8. Essential Commodities Act, 2020
9. The Standards of Weights and Measures Act, 1987
10. Trade Marks Act, 1999
11. Bureau of Indian Standards Act, 1986
12. Consumer Protection Act, 2019
13. Environment Protection Act 1986
14. Competition Act, 2002