SJB Institute of Technology: Department of Electronics & Communication Engineering

Technological Innovation Management & Entrepreneurship/18ES51
||Jai Sri Gurudev ||

Sri Adichunchanagiri Shikshana Trust®
SJB INSTITUTE OF TECHNOLOGY

Accredited by NBA & NAAC with ‘A’ Grade
No. 67, BGS Health & Education City, Dr. Vishnuvardhan Road
Kengeri, Bangalore – 560 060
Department of Electronics & Communication

Engineering
Technological Innovation Management & Entrepreneurship [18ES51]
MODULE - 3
Notes (as per VTU Syllabus)
5th SEMESTER – B. E
Academic Year: 2022 – 2023 (ODD)
Course Coordinator : Dr. Sunitha Y N
Designation : Assistant Professor

VTU-Syllabus
Technological Innovation Management &
Entrepreneurship/18ES51
Module-1 Management
Management: Nature and Functions ofManagement- Importance, Definition, Management
Functions, Levels of Management, Roles of Manager, Managerial Skills, Management &
Administration, Management as a Science, Art & Profession
(Selected topics of Chapter 1, Text 1).
Planning: Planning-Nature, Importance, Types, Steps and Limitations of Planning; Decision

Making- Meaning, Types and Steps in Decision Making
(Selected topics from Chapters 4 & S, Text 1). L1,L2
Module-2 Organizing and Staffing

Organizing and Staffing: Organization-Meaning, Characteristics, Process of Organizing,
Principles of Organizing, Span of Management (meaning and importance only),
Departmentalisation, Committees-Meaning, Types of Committees; Centralization Vs
Decentralization of Authority and Responsibility; Staff"mg-Need and Importance,
Recruitment and Selection Process
(Selected topics from Chapters 7, 8 & 11,Text 1).
Directing and Controlling: Meaning and Requirements ofEffective Direction, Giving

Orders; Motivation-Nature of Motivation, Motivation Theories (Maslow's Need-Hierarchy
Theory and Herzberg's Two Factor Theory); Communication - Meaning, Importance and
Purposes of Communication; Leadership-Meaning, Characteristics, Behavioural Approach of
Leadership; 93 Coordination-Meaning, Types, Techniques of Coordination; Controlling
Meaning, Need for Control System, Benefits of Control, Essentials ofEffective Control
System, Steps in Control Process.
(Selected topics from Chapters 15to 18and 9, Text 1). Ll,Ll
Module-3 Social Responsibilities of Business

Social Responsibilities of Business: Meaning of Social Responsibility, Social
Responsibilities ofBusiness towards Different Groups, Social Audit, Business Ethics and
Corporate Governance
Dept. of ECE/SJBIT Page 2
(Selected topics from Chapter 3, Text 1).
Entrepreneurship: Definition ofEntrepreneur, Importance ofEntrepreneurship, concepts of

Entrepreneurship, Characteristics of successful Entrepreneur, Classification of Entrepreneurs,
Myths of Entrepreneurship, Entrepreneurial Development models, Entrepreneurial
development cycle, Problems faced by Entrepreneurs and capacitybuilding for
Entrepreneurship
(Selected topics from Chapter 2, Text 2). Ll,L2
Module-4 Family Business

Family Business: Role and Importance ofFamily Business, Contributions of Family Business
in India, Stages of Development of a Family Business, Characteristics of a Famity-owned
Business in India, Various types of fumily businesses
(Selected topics from Chapter 4,(Page 71-75) Text 2).
Idea Generation and Feasibility Analysis- Idea Generation; Creativity and Innovation;
Identification of Business Opportunities; Market Entry Strategies; Marketing Feasibility;
FinancialFeasibilities; Political Feasibilities; Economic Feasibility; Social and Legal
Feasibilities; Technical Feasibilities; Managerial Feasibility, Location and Other Utilities
Feasibilities.
(Selected topics from Chapter 6(Page No. 111-117) & Chapter 7(Page No. 140-142), Text 2)
Ll,L2
Module-5 Business model

Business model- Meaning, designing, analyzing and improvising; Business Plan - Meaning,
Scope and Need; Financial, Marketing, Human Resource and Production/Service Plan;
Business plan Formats; Project report preparation and presentation; Why some Business Plan
fails?
(Selected topics from Chapter 8 (Page No 159-164, Text 2)
Financing and How to start a Business? Financial opportunity identification; Banking

sources; Nonbanking Institutions and Agencies; Venture Capital - Meaning and Role in
Entrepreneurship; Government Schemes for funding business; Pre launch, Launch and Post
launch requirements; Procedure for getting License and Registration; Challenges and
Difficulties in Starting an Enterprise
(Selected topics from Chapter 7(Page No 147-149), Chapter 5(Page No 93-99) & Chapter
8(Page No. 166-172) Text 2)
Project Design and Network Analysis: Introduction, Importance ofNetwork Analysis,

Origin ofPERT and CPM, Network, Network Techniques, Need for Network Techniques,
Steps in PERT, CPM, Advantages, Limitations and Differences.

(Selected topics from Chapters 20, Text 3). Ll,L2,L3
Course Outcomes:
After studying this course, students will be able to:
1. Understand the fundamental concepts of Management and Entrepre neurship and

opportunities in order to setup a business
2. Identify the various organizations' architecture
3. Describe the functions of Managers, Entrepreneurs and their social responsibilities
4. Understand the components in developing a business plan
5. Recognize the various sources of funding and institutions supporting entrepreneurs.
TextBooks:
1. Principles of Management - P.C Tripathi, P.N Reddy, McGraw Hill Education,

fYhEdition, 2017. ISBN-13:978-93-5260-5354.
2 Entrepreneurship Development Small Business Enterprises- Poomima MCharantimath,

Pearson Education 2008, ISBN 978-81-7758-260-4.
3. Dynamics ofEntrepreneurial Development and Management byVasant Desai. HPH 2007,

ISBN: 978-81-8488-801-2.
4. Robert D. Hisrich, Mathew J. Manimala, Michael PPeters and DeanA. Shepherd,

''Entrepreneurship", S1h Edition, Tata Mc-Graw HillPublishing Co.Ltd.- New Delhi, 2012
Reference Book:
1. Essentials of Management: An International, Innovation and Leadership perspective by

Harold Koontz, Heinz Weihrich McGraw Hill Education, I01h Edition 2016. ISBN- 978-93-
392-2286-4.

INDEX SHEET
SL.
PAGE
NO TOPIC
NO.
.
VTU Syllabus 1
MODULE – 3
Social Responsibilities of Business: Meaning of Social Responsibility,

1 5
Social Responsibilities ofBusiness towards Different Groups,
2 Social Audit, Business Ethics and Corporate Governance 10

Entrepreneurship: Definition ofEntrepreneur, Importance
3 ofEntrepreneurship, concepts of Entrepreneurship, Characteristics of 21
successful Entrepreneur,
Classification of Entrepreneurs, Myths of Entrepreneurship,
Entrepreneurial Development models, Entrepreneurial development
4 30
cycle, Problems faced by Entrepreneurs and capacitybuilding for
Entrepreneurship
5 Question Bank. 39
Exercise / Additional Questions (Problems) / Assignment

6 -
Questions / University Questions.

Module-3 Social Responsibilities of Business
Syllabus:
Social Responsibilities of Business: Meaning of Social Responsibility, Social
Responsibilities of Business towards Different Groups, Social Audit, Business Ethics and
Corporate Governance
(Selected topics from Chapter 3, Text 1).
Entrepreneurship: Definition of Entrepreneur, Importance of Entrepreneurship, concepts of

Entrepreneurship, Characteristics of successful Entrepreneur, Classification of Entrepreneurs,
Myths of Entrepreneurship, Entrepreneurial Development models, Entrepreneurial
development cycle, Problems faced by Entrepreneurs and capacity building for
Entrepreneurship
(Selected topics from Chapter 2, Text 2). Ll,L2
What is Social Responsibility?
Social responsibility is a moral obligation on a company or an individual to take decisions or

actions that is in favor and useful to society.
Social responsibility in business is commonly known as Corporate Social Responsibility or

CSR.
For any company, this responsibility indicates that they acknowledge and appreciate the goals
of the society, and therefore, would support them to achieve these goals.
Advantages of Social Responsibility
A company can boost its morale and enhance work culture when they can engage their
employees with some social causes. There are many factors that can have a positive impact
on the business while delivering social responsibilities. Such few factors are
• Justification for existence and growth

• The long-term interest of the firm
• Avoidance of government regulation
• Maintenance of society
• Availability of resources with business
• Converting problems into opportunities
• A better environment for doing business
• Holding business responsible for social problem
Disadvantages of Social Responsibility
Like there are many advantages of social responsibility there are similarly many
disadvantages for business. Few factors are mentioned below.
• Violation of profit maximization objective
• Burden on consumers
• Lack of social skills
Types of Social Responsibilities
Following Are the Different Types of Social Responsibilities:
(1) Economic Responsibility
• Every business is engaged in economic activities.
• So, the prime social responsibility of every business should be economic

responsibility.
• Hence, they should sell products and service which can satisfy the need of the society.
(2) Legal Responsibility
• The company should comply with the political and legal environment of the country.
• The company should consider protecting the environment.
(3) Ethical Responsibility

• This type of responsibility expects a certain type of behavior or conduct from the
company.
• This behavior may not be documented by law.
(4) Discretionary Responsibility
• These are voluntary actions taken by the entities in case of natural calamities, helping
poor people etc.
• They help them by providing a charitable contribution, education activities etc.
• It prevents investments of charitable funds into speculative activities.
Social Responsibilities for Different Interest Groups
(1) Responsibility Towards the Shareholders
• Shareholders are the owners of the company.
• The company should make all the efforts to maximize and protect shareholder’s
wealth.
• Sharing of useful information with the shareholders, utilization of funds etc.
(2) Responsibility Towards the Workers
• Workers are the key persons behind company success.
• Management of the enterprise must provide the proper working conditions to the
workers.
• Workers should get fair salaries and wages.
(3) Responsibility Towards the Consumers
• It is the consumer who buys the company’s product & services.
• So, it is the responsibility of the company to provide the right quality, right quantity
with the right price to the consumer.
• There should not be the unfair trade practices like adulteration, poor quality, courtesy
to the customers etc.
(4) Responsibility Towards the Government & Community

• Enterprises must follow the laws and regulations of the country/ state in which it is
operating.
• The organization should interact with society to know what they require.
• It should maintain proper infrastructure, proper disposal system and should not cause
harm to the society in any manner.
What Is a Social Audit?
• A social audit is a formal evaluation of a company’s procedures and endeavors with

regards to corporate social responsibility and societal impact.
• It assesses how well a company is meeting its CSR objectives and provides an
opportunity to identify areas for improvement.
• Social audits exert a strong influence on impacting the public relations image of
companies as businesses strive to maintain a delicate balance between their social
initiatives and providing value to its investors and shareholders.
Items Examined in a Social Audit
The scope of a social audit can vary and be wide-ranging. The assessment can include social
and public responsibility but also employee treatment. Some of the guidelines and topics that
comprise a social audit include the following:
• Environmental impact resulting from the company's operations
• Transparency in reporting any issues regarding the effect on the public or

environment.
• Accounting and financial transparency
• Community development and financial contributions
• Charitable giving
• Volunteer activity of employees
• Energy use or impact on footprint
• Work environment including safety, free of harassment, and equal opportunity
• Worker pay and benefits

• Nondiscriminatory practices
• Diversity
Advantages of Social Audits
Social audits provide a multitude of advantages, including encouraging democracy and the
sharing of opinions by employees and community members, and identifying challenges faced
by certain marginalized or disadvantaged groups. In addition, they can also be used to better
support the human resources and social capital of the organization and promote collective
decision making.
The disadvantages of social audit might include follows:
• Time and organizational effort required to set-up social accounting systems.
• Cost of outside resources such as interviewers and social auditors.
• Unless embedded in organization culture, there is a danger of it becoming a one-off

paper exercise.
• Achieving recognition by stakeholders and others of the value of Social Audit.
• Identification of and obtaining views and opinions of non-stakeholders who may be

potential stakeholders.
• Exclusion of potential participants if the process is made complicated and confusing

through involvement of professionals.
• Lack of standards for the Social Audit process and recognized qualifications for social
auditors may damage the credibility of the process.
• Perception of organisation manipulating or hijacking stakeholder views.
Ethics
• Ethics can be said to be ‘the field of study that is concerned with values, standards,
morals,principles etc., which are used to base ones decisions or actions. It is a
discipline tries to set up criteria for “good” and “bad” behavior/actions, and to
evaluate the motives for these actions, and the consequences.

•
Ethics is a branch of philosophy that involves systematizing, defending, and
recommending concepts of right and wrong conduct. Ethics seeks to resolve questions
of human morality by defining concepts such as good and evil, right and wrong, virtue
and vice, justice and crime.
• Ethics deals with fundamental issues of practical decision making, and its major
concerns include the nature of ultimate value and the standards by which human
actions can be judged right or wrong
Business Ethics
Business Ethics is a form of Applied Ethics. It originates from individuals, organizational

statements or from the legal system. It can be said to be the attitude, culture and manner of
doing business by the business community. It is a framework of contemporary organizational
standards, principles, sets of values and norms that govern the actions and behavior of an

individual in the
business organization.
According to Andrew Crane, “Business ethics is the study of business situations, activities,
and decisions where issues of right and wrong are addressed.” Business ethics are those
principles, policies or philosophies that are concerned with moral judgment &good conduct
as they are applicable
to business situation.
Business Ethics is a branch of ethics which prescribes standards of how the business is to be
carried out. It lays down guidelines for the company’s response and accountability to its
various stakeholders. It gives a deeper understanding of what is good and bad, what is moral
and immoral or
what actions are right or wrong in the operations of a business with respect to its customers,
employees, investors, society and all other stakeholders – in order to protect them from harm
and damages to their interests.
Features of Business Ethics
To develop a better understanding for Business Ethics, we should examine the key features:
1. Code of conduct: Business ethics is the code of conduct which businessmen should follow
while conducting their normal business activities.
2. Based on moral and social values: Business ethics is based on well-accepted

moral/principal values. It suggests moral of conduct for businessmen. They include self-
control, service to society and fair treatment to social groups and not to harm/ exploit others.
3. Provides basic framework: Business ethics provides the framework within which business
is to be conducted. It suggests legal, social, moral, economic and cultural limits within which
business has to be operated. It suggests what is good and what is bad in business.

4. Needs willing acceptance for enforcement: Business ethics cannot be enforced by law or
by force. It must be accepted as self-discipline by businessmen. It should come from within
the businessmen.
5. Education and guidance required for introduction: Businessman should be given proper
education, guidance and training in order to motivate them to follow ethical business
practices.
6. Not against profit making: Business Ethics is not against fair profit making. However, it is
against profiteering by cheating and exploiting consumers, employees or investors. It
supports expansion of business activities but by fair means and not through illegal activities
or corrupt practices.
IMPORTANCE OF ETHICS IN BUSINESS
Ethics is important for any business, big or small, for its long-term success. Following are the
benefits of ethics for any business:
1. Decision Making: It is our means of deciding a course of action. Without it our actions
would be random and aimless.
2. Standardizing Behaviour of Employees: Business Ethics is about standard of behavior in

workplace, with partners, colleagues, customers etc. Many companies have standard code of
ethics which everyone in the organization has to follow.
3. Greater Customer Satisfaction: Customer will be satisfied only if the business follows all
the business ethics. Business ethics is needed to make business activities fair to consumers. It
checks business malpractices and offers protection to consumers.
4. More Responsible Behaviour: Business ethics is needed in order to make businessmen

conscious as regards their duties and responsibilities towards consumer and other social
group.
Improved Confidence of Stakeholders: Business ethics is needed in order to improve the

confidence of consumers as regards quality, price, reliability etc. of goods and services

supplied. It also helps in retaining confidence of stakeholders like financial institutions,

shareholders, buyers, suppliers etc.
6. Protecting Rights: Business ethics is needed for the protection of rights of consumers at the
business level such as right to health & safety, right to be informed, right to choose, right to
be heard etc.
7. Enhanced Corporate Image: Business ethics is needed in order to create good image of
businessmen in the society and also for avoiding public criticism. Ethical business gets public
support while unethical business is criticized by all. Public will be ready to invest or lend
money only if they are convinced that the organization is following fair business practices.
8. Cordial Relationship and Support: Business ethics is needed in order to develop cordial
and friendly relations between business and society.
9. Long Term Survival and Growth: Organizations doing business ethically will continue to
survive & prosper for the long time. Hence, it is important for the growth & development of
the business in the long term.
10. Uniform Behaviour Across Organisation: Ethics in business are important most of all
because we pass them on to others. We have the ability to show others the correct way to act
and behave by remaining ethical in the way we live.



Meaning of Entrepreneur
The entrepreneur is defined as someone who has the ability and desire to establish, administer
and succeed in a startup venture along with risk entitled to it, to make profits.

The best example of entrepreneurship is the starting of a new business venture. The
entrepreneurs are often known as a source of new ideas or innovators and bring new ideas in
the market by replacing old with an invention.
Importance of Entrepreneurship:
• Creation of Employment- Entrepreneurship generates employment. It provides an

entry-level job, required for gaining experience and training for unskilled workers.
• Innovation- It is the hub of innovation that provides new product ventures, market,
technology and quality of goods, etc., and increase the standard of living of people.
• Impact on Society and Community Development- A society becomes greater if the

employment base is large and diversified. It brings about changes in society and
promotes facilities like higher expenditure on education, better sanitation, fewer
slums, a higher level of homeownership. Therefore, entrepreneurship assists the
organisation towards a more stable and high quality of community life.
• Increase Standard of Living- Entrepreneurship helps to improve the standard of

living of a person by increasing the income. The standard of living means, increase in
the consumption of various goods and services by a household for a particular period.
• Supports research and development- New products and services need to be

researched and tested before launching in the market. Therefore, an entrepreneur also
dispenses finance for research and development with research institutions and
universities. This promotes research, general construction, and development in the
economy.
Characteristics of Entrepreneurship:
Not all entrepreneurs are successful; there are definite characteristics that make
entrepreneurship successful. A few of them are mentioned below:
• Ability to take a risk- Starting any new venture involves a considerable amount of
failure risk. Therefore, an entrepreneur needs to be courageous and able to evaluate
and take risks, which is an essential part of being an entrepreneur.
• Innovation- It should be highly innovative to generate new ideas, start a company

and earn profits out of it. Change can be the launching of a new product that is new to

the market or a process that does the same thing but in a more efficient and
economical way.
• Visionary and Leadership quality- To be successful, the entrepreneur should have a

clear vision of his new venture. However, to turn the idea into reality, a lot of
resources and employees are required. Here, leadership quality is paramount because
leaders impart and guide their employees towards the right path of success.
• Open-Minded- In a business, every circumstance can be an opportunity and used for

the benefit of a company. For example, Paytm recognized the gravity of
demonetization and acknowledged the need for online transactions would be more, so
it utilized the situation and expanded massively during this time.
• Flexible- An entrepreneur should be flexible and open to change according to the

situation. To be on the top, a businessperson should be equipped to embrace change in
a product and service, as and when needed.
• Know your Product-A company owner should know the product offerings and also
be aware of the latest trend in the market. It is essential to know if the available
product or service meets the demands of the current market, or whether it is time to
tweak it a little. Being able to be accountable and then alter as needed is a vital part of
entrepreneurship
Characteristics of Successful Entrepreneurs
1. Curiosity
 Successful entrepreneurs have a sense of curiosity that allows them to
continuously seek new opportunities. Rather than settling for what they think
they know, curious entrepreneurs ask challenging questions and explore
different avenues.
 In Entrepreneurship Essentials, entrepreneurship is described as a “process of
discovery.”
 Without the drive to continuously ask questions and challenge the status quo,
valuable discoveries can easily be overlooked.
2. Structured Experimentation

 Along with curiosity comes the need for structured experimentation. With
each new opportunity that arises, an entrepreneur must run tests to determine
if it’s worthwhile to pursue.
 For example, if you have an idea for a new product or service that fulfills an
underserved demand, you’ll have to ensure customers are willing to pay for it.
To do so, you’ll need to conduct thorough market research and run meaningful
tests to validate your idea and determine whether it has potential.
3. Adaptability
 The nature of business is ever-changing. Entrepreneurship is an iterative
process, and new challenges and opportunities present themselves at every
turn. It’s nearly impossible to be prepared for every scenario. Entrepreneurs
need to evaluate situations and adapt so their business can keep moving
forward when unexpected changes occur.
4. Decisiveness
 To be successful, an entrepreneur has to make difficult decisions and stand by
them. As a leader, they’re responsible for guiding the trajectory of their
business, including every aspect from funding and strategy to resource
allocation.
 Being decisive doesn’t always mean having all the answers. If you want to be
an entrepreneur, it means having the confidence to make challenging decisions
and see them through. If the outcome turns out to be less than favorable, the
decision to take corrective action is just as important.
5. Team Building
o A great entrepreneur is aware of their strengths and weaknesses. Rather than
letting shortcomings hold them back, they build well-rounded teams that
complement their abilities.
o In many cases, it’s the entrepreneurial team, rather than an individual, that
drives a venture toward success. When starting your own business, it’s critical
to surround yourself with teammates who have complementary talents and
contribute to a common goal.
6. Risk Tolerance

o Entrepreneurship is often associated with risk. While it’s true that launching a
venture requires an entrepreneur to take risks, they also need to take steps to
minimize it.
o While many things can go wrong when launching a new venture, many things
can go right. The key, according to Entrepreneurship Essentials, is for
entrepreneurs to actively manage the relationship between risk and reward and
position their companies to “benefit from the upside.”
o Successful entrepreneurs are comfortable with encountering some level of risk
to reap the rewards of their efforts; however, their risk tolerance is tightly
related to their efforts to mitigate it.
7. Comfortable with Failure
• In addition to managing risk and making calculated decisions,

entrepreneurship requires a certain level of comfort with failure.
• It’s estimated that nearly 75 percent of new startups fail. The reasons for
failure are vast and encompass everything from a flawed business model to a
lack of focus or motivation. While many of these risks can be avoided, some
are inevitable.
• Successful entrepreneurs prepare themselves for, and are comfortable with,
failure. Rather than let fear hold them back, the possibility of success propels
them forward.
8. Persistence
o While many successful entrepreneurs are comfortable with the possibility of

failing, it doesn’t mean they give up easily. Rather, they see failures as
opportunities to learn and grow.
o Throughout the entrepreneurial process, many hypotheses turn out to be
wrong, and some ventures fail altogether. Part of what makes an entrepreneur
successful is their willingness to learn from mistakes, continue to ask
questions, and persist until they reach their goal.
9. Innovation
• Many ascribe to the idea that innovation goes hand-in-hand with

entrepreneurship. This is often true—some of the most successful startups

have taken existing products or services and drastically improved them to

meet the changing needs of the market.
• Innovation is a characteristic some, but not all, entrepreneurs possess.
Fortunately, it’s a type of strategic mindset that can be cultivated. By
developing your strategic thinking skills, you can be well-equipped to spot
innovative opportunities and position your venture for success.
10. Long-Term Focus
• Finally, most people think of entrepreneurship as the process of starting a

business. While the early stages of launching a venture are critical to its
success, the process doesn’t end once the business is operational.
• In Entrepreneurship Essentials, it’s stated that “it’s easy to start a business, but
hard to grow a sustainable and substantial one. Some of the greatest
opportunities in history were discovered well after a venture launched.”
• Entrepreneurship is a long-term endeavor, and entrepreneurs must focus on the
process from beginning to end to be successful in the long run.
Classification of Entrepreneurs
(a) Based on Functional Characteristics.
• Innovative Entrepreneur: Such an entrepreneur introduce new goods or new methods

of production or discover new markets or reorganize their enterprises.
• Imitative or adoptive entrepreneur: such entrepreneur do not innovate themselves but

imitate techniques and technology innovate by others
• Fabian entrepreneur: Such entrepreneur display great caution and skepticism in

experimenting with any change in their enterprise.
• Drone entrepreneur: Such entrepreneurs are characterized by a die-hard conservatism

and may even be prepared to suffer the loss of business.
(b) Based on the Development angle
• Prime mover: This entrepreneur sets in motion a powerful sequence of development,

expansion and diversification of business.

• Manager: Such an entrepreneur does not initiate expansion and is content just staying
in business.
• Minor innovator: This entrepreneur contributes to economic progress by finding better

use for existing resources
• Satellite: This entrepreneur assumes a supplier’s role and slowly moves towards a
productive enterprise
• Local trading: Such an entrepreneur limits his enterprise to the local market.
(c) Based on the type of entrepreneurial business
• Manufacturing
• Wholesaling
• Retailing
• Service
(d) Based on the nine personality types of Enterpreneur
• The Improver
• The adviser
• The Superstar
• The artist
• The visionary
• The analyst
• The Fireball
• The Hero
• The healer
(e) Based on schools of Thought on Entrepreneurship.
Assessing personal qualities
1. The great person school of entrepreneurship

2. The psychological characteristics school of entrepreneurship
Recognizing opportunities
3. The classical school of entrepreneurship
Acting and Managing
4. The management school of entrepreneurship
5. The leadership school of entrepreneurship
Reassessing and adopting
Entrepreneurial Central focus of purpose Behaviors and skills Situation

model
Great person The entrepreneur has an Intuition, vigor, energy, Start up
School intuitive ability-a sixth persistence, and self
sense-and traits and esteem
instincts he is born with
Psychological Entrepreneurs have unique Personal values, risk Start up
characteristics values, attitudes and needs, taking needs for
school which drive them achievements, and
others
Classical school The central characteristic of Innovation, creativity Start up and
entrepreneurial behavior is and discovery early growth
innovation
Management Entrepreneurs are Production planning Early growth
school organizers of an economic people organization, and maturity
venture; they are people capitalization and
who organize own manage budgeting
and assume the risk.
Leadership Entrepreneurs are leaders Motivating, directing, Early growth
school of people; they have the and leading and maturity
ability to adapt their style
to the needs of people
Ideapreneurship In corporations' Alertness to Maturity and
school intrapreneurship is the opportunities, change
development of maximizing decisions

independent units to
create, market and expand
services.
6. The intrapreneur ship school of entrepreneurship
Myths of Entrepreneurship
1. Entrepreneurs are born, not made
2. Entrepreneurs Are academic and social misfits
3. Entrepreneurs Fit and ideal profile
4. All you need is money o be an Entrepreneurs
5. All you need is luck to be an Entrepreneurs
6. A great idea is the only ingredient in a recipe for success
7. My best friend will be a great business partner
8. Having no boss is great fun
9. I will definitely become successful
10. Life will be much simpler if I work for myself
Eentrepreneurial Development Models
1. Psychological models
2. Sociological models
3. Integrated models
Five stages for promoting small entrepreneurship are
1. Stimulation
2. Identification
3. Development
4. promotion

5. Follow up
Problems faced by Entrepreneurs and capacity building for

Entrepreneurship
1. Internal problems
2. External problems
3. Specific management problems.
Internal Problems:
1. Planning
(a) Technical feasibility
• Inadequate technical know-how
• Locational disadvantage
• Outdated production process
(b) Economic viability

• High cost of inputs

• Beak-even point too high
• Uneconomic size of project
• Choice of idea
• Feeble structure
Faulty planning
• Poor project implementation
• Lack of strategies
• Lack of vision
• Inadequate connections
• Lack of motivation
• Underestimation of financial requirements
• Overestimation of demand
2. Implementation
Cost over-runs resulting from delays in getting licences, sanctions, and so on, and
inadequate mobilisation of finance.
3. Production
(a) Production management
• Inappropriate product mix
• Poor quality control p0or capacity utilization
• High cost of production
• Poor inventory maintenance and replacement
• Lack of timely and adequate modernisation and so on
• High wastage
• Poor production
(b) Labour management

• Excising high wage structure
• Inefficient handling of labour problems
• Excessive man power
• Poor labour productivity
• Poor labour relations
• Lack of trained skilled labour or technically competent personnel
(c) Marketing management
• Dependence on a single customer or a limited number of customers/single or a limited

number of products
• Poor sales realisation
• Defective pricing policy
• Booking of large orders at fixed prices in an inflationary market
• Weak market organisation
• Lack of market feedback and market research
• Unscrupulous sale purchase practices
(d) Financial management
• Poor resource management and financial planning
• Faulty costing
• Dividend policy
• General financial indiscipline and application of funds for unauthorised purposes
• Deficiency of funds
• Over trading
• Unfavourable gearing or keeping adverse debt equity ratio
• Inadequate working capital
• Absence of cost consciousness

• Lack of effective collection machinery
(e) Administrative management
• Over centralisation
• Lack of professionalism
• Lack of feedback to management
• Lack of timely diversification
• Excessive expenditure on R and D
External Problems of Entrepreneurs:
(a) Intrastructural
• Location
• Power
• Water
• Post office and so on
• Communication
• Non availability or irregular supply of critical raw materials or other inputs
• Transport bottlenecks
(b) Financial
• Capital
• Working capital
• Long term funds
• Recovery
• Marketing
• Taxation
• Raw material

• Industrial and financial regulations
• Inspections
• Technology
• Government policy
• Administrative hurdles
• Rampant corruption
• Lack of direction
• Competitive and volatile environment
Specific management problems
• Management deficiency
• Finance
• Manufacturing and technical problems
• Product planning
• Selection of equipment, plant and machinery
• Human resource development
• Technical know-how
• Preparation of project report
Capacity Building for Entrepreneurship
1. Create the right environment for success
2. Ensure that entrepreneurs have access to the right skills
3. Ensure that entrepreneurs have access o smart capital
4. Enable networking and exchange

Case study
Ratan N. Tata
One of the most renowned businessmen all over the World, Mr. Ratan Tata is the chairman of
the TATA GROUP since 1991. The several companies that are involved in this group are
Tata Consultancy Services, Tata Motors, Tata Chemicals, Tata Tele Services, etc. He is also
linked with numerous organizations within and outside India. Being associated with a
chairman of two of the number one private-sector-promoted philanthropic trusts for India he
is key personnel in Prime Minister’s Industry and Trade Council.
Mr. Tata is known to be the president of the Court of Indian Institute of Science. He is acting
as one of the trustees of Cornell University and the University of South California. Alcoa is
the company where currently a member of the Board of Director’s, and besides he is on the
advisory committee of JP Morgan Chase, Rolls-Royce, Mitsubishi Corporation etc. He is one
of the winners of the Padma Vibhusan in the year 2008 and continues to inspire young and
talented entrepreneurs in future years to come. Mr. Tata has brought a new vision to show the
way and has completely changed the perspective of entrepreneurship.
Lakshmi Narayan Mittal
Lakshmi Mittal is perhaps the greatest example of how a person can achieve exceptional
success even if he faces heavy struggles and hindrances at the early stages of his life. His
birthplace was in a village where at that time there were no basic facilities like water,
electricity etc. After that their family migrated to Calcutta where Mohan Lal Mittal, his father
build a mini steel factory which was not popular in the earlier days but as a smart business
owner, with an ability to determine threats to his own benefits, he has essentially made his
own brand name in the globe.
With his father’s support, he established a bigger steel factory “Ispat Indo” and that fetched
him grand results. His biggest and perhaps the most significant strength was taking over those
businesses which were running into huge losses and converting them into highly profitable
machines. In the year 1989, he acquired a firm in Trinidad and Tobago that was suffering
heavy losses and turned it into profit-making one. Under him, the steel firm Ispat Indo
transferred into Ispat International which was later on joined hands with International
Steel Group. This huge steel conglomerate has a net worth of approximately 22 million USD
and it runs across 14 countries.
Along with this, Mittal’s business sector have varied in shipping and delivery, coal, electrical
power, oil companies. But it has not been all that smooth sailing for him, his steel factory was
accused of non-friendly to the environment and unhealthy for labour work for which he had
to shut his business down temporarily but he overcame all odds to become a legendary
entrepreneur. He was awarded the “100 most influential people of the world” by Times .
Azim Premji
Mr. Premji is a famous business person who acts as the chairperson of Wipro Ltd. which
happens to be currently amongst the largest IT-enabled services enterprise on the planet. He
took over the business when he was only 21 years old, like Reliance it dealt only in a single
sector initially that is the production of hydrogenated oil but later on gradually it spread its
business that included light bulbs, toilet accessories, products related to hair care, bakery etc.
In the year 1977, the business incorporated its name to “Wipro”. Later on, he took over the
business into the computer hardware and software market and excelled in this business as
well.
Mr. Azim Hashim Premji’s biggest achievement is that his company was able to build
quality software at a cheap rate than compared to his foreign counterparts and thereby was
able to export them to the states. In order to achieve these desired results, he employed the
best possible engineers to whom he provided training of the highest quality and infrastructure
to fine tune their capabilities. In the year 1990 “Wipro” gained tremendous heights as a result
of which he was deservingly awarded one of the Greatest Entrepreneurs of all time by the
“Business Week” and no wonder he still exists as one of the millionaires businessmen on
earth.
Uday Kotak
Perhaps he is the most remarkable example of a very young entrepreneur making a gigantic
leap in his career without having significant experience.

He still stands out as an example setter for those who are trying to cement their feet in the
business sector. Uday Kotak is one of few businessmen who has a net worth of about 7.6
billion dollars.
He is the founder of the Kotak Mahindra Bank which was nationalized by the Reserve
Bank of India in the year 2003. This was possible because he created a brand name of his
own in the banking sector.
It was at the same time that he was awarded as the youngest and talented “Entrepreneur of the
Year” Not only that, Mr. Kotak is the owner of several other companies like Kotak Mahindra
Life Insurance, Kotak Securities, Kotak Prime, Kotak Capital and so on.
As a young and promising entrepreneur, he was ably supported by Anand Mahindra

financially hence the first business venture was named as Kotak Mahindra.
Initially, his journey began with automobile finance and gradually became the owner of one
of India’s premier retail online marketing networks, “FICOM”. He also designed a Pension
Account under the Brand new Pension Program also created the India Growth Fund.
However, initially, Kotak’s journey was not such smooth sailing, he had to face several
challenges in business but due to his exceptional entrepreneurial abilities, he did not take long
to recover through such situations and hence obtained his place as the best Indian bank of
their era.
Pratap C Reddy
Popularly known as Dr. Pratap Chandra Reddy is a famous cardiologist and a well-known
businessman too. He was the founder of the Apollo Hospital which later on went to become a
top branded private hospital that deals with patients of about 120 international locations.
Dr. Reddy modernized the health treatment system throughout India. He was the chief anchor
who brought about a massive change in the fortunes of private hospitals in the country.
Dr. Reddy was the chief architect is bringing some top Indian doctor’s across the globe under
one roof together and as a result of which Apollo Hospitals is now considered at an equal
footing with the world’s best private hospitals.
Dr.Reddy is a chief initiator in changing govt rules to match current medical needs. He
assisted to ease transfer limitations and made the federal govt take a more generous view on
body transplants among others. Till date, he continues to work towards his mission to remove
uncertainty and bring world-class class cost-effective medical treatment in our nation.
It is under his able management that the Apollo Team has performed humanitarian work
through ‘Save a Kid’s Center Foundation’ (SACH), the “CURE Foundation” for
melanoma care, the Indian Head Injury Foundation (IHIF), ‘Distance Medical Care
Advancement’ (DISHA) and several others that have changed the livings of several numbers
of million kids, differently-abled people, melanoma and mind stress sufferers.
Due to his stupendous contributions in the medical field he has received many awards, most
notably among them includes the ‘Padma Bhushan’ and one of the highest honors of India
“The Padma Vibhushan.”

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Technological Innovation Management & Entrepreneurship/18ES51

||Jai Sri Gurudev ||

SJB INSTITUTE OF TECHNOLOGY

Department of Electronics & Communication

Academic Year: 2022 – 2023 (ODD)

Course Coordinator : Dr. Sunitha Y N

Designation : Assistant Professor

(Selected topics of Chapter 1, Text 1).

Planning: Planning-Nature, Importance, Types, Steps and Limitations of Planning; Decision

(Selected topics from Chapters 4 & S, Text 1). L1,L2

Module-2 Organizing and Staffing

(Selected topics from Chapters 7, 8 & 11,Text 1).

Directing and Controlling: Meaning and Requirements ofEffective Direction, Giving

(Selected topics from Chapters 15to 18and 9, Text 1). Ll,Ll

Module-3 Social Responsibilities of Business

(Selected topics from Chapter 3, Text 1).

Entrepreneurship: Definition ofEntrepreneur, Importance ofEntrepreneurship, concepts of

(Selected topics from Chapter 2, Text 2). Ll,L2

Module-4 Family Business

(Selected topics from Chapter 4,(Page 71-75) Text 2).

Module-5 Business model

(Selected topics from Chapter 8 (Page No 159-164, Text 2)

Financing and How to start a Business? Financial opportunity identification; Banking

Project Design and Network Analysis: Introduction, Importance ofNetwork Analysis,

Dept. of ECE/SJBIT Page 3

(Selected topics from Chapters 20, Text 3). Ll,L2,L3

After studying this course, students will be able to:

1. Understand the fundamental concepts of Management and Entrepre neurship and

2. Identify the various organizations' architecture

3. Describe the functions of Managers, Entrepreneurs and their social responsibilities

4. Understand the components in developing a business plan

5. Recognize the various sources of funding and institutions supporting entrepreneurs.

1. Principles of Management - P.C Tripathi, P.N Reddy, McGraw Hill Education,

2 Entrepreneurship Development Small Business Enterprises- Poomima MCharantimath,

3. Dynamics ofEntrepreneurial Development and Management byVasant Desai. HPH 2007,

4. Robert D. Hisrich, Mathew J. Manimala, Michael PPeters and DeanA. Shepherd,

1. Essentials of Management: An International, Innovation and Leadership perspective by

Dept. of ECE/SJBIT Page 4

Social Responsibilities of Business: Meaning of Social Responsibility,

2 Social Audit, Business Ethics and Corporate Governance 10

Exercise / Additional Questions (Problems) / Assignment

Dept. of ECE/SJBIT Page 5

Module-3 Social Responsibilities of Business

(Selected topics from Chapter 3, Text 1).

Entrepreneurship: Definition of Entrepreneur, Importance of Entrepreneurship, concepts of

(Selected topics from Chapter 2, Text 2). Ll,L2

What is Social Responsibility?

Social responsibility is a moral obligation on a company or an individual to take decisions or

Social responsibility in business is commonly known as Corporate Social Responsibility or

Advantages of Social Responsibility

• Justification for existence and growth

Dept. of ECE/SJBIT Page 6

• The long-term interest of the firm

• Avoidance of government regulation

• Availability of resources with business

• Converting problems into opportunities

• A better environment for doing business

• Holding business responsible for social problem

Disadvantages of Social Responsibility

• Violation of profit maximization objective

• Lack of social skills

Types of Social Responsibilities

Following Are the Different Types of Social Responsibilities: