Subject - Entrepreneurship

Unit-1
Introduction to Entrepreneurship

Chapter - 1

1. Introduction to Entrepreneurship
1.1 Entrepreneur / Entrepreneurship
1.2 Characteristics of Entrepreneur
2. Types of Entrepreneurship
3. Importance of Entrepreneurship
A. Economic
B. Opportunities for Entrepreneur
4. Qualities of an Entrepreneur
A. Personality Traits
B. Managerial Traits
5. Role of Entrepreneurs in Economic Development
6. Stages of Entrepreneurial Process
7. Functions of an Entrepreneur
A. Innovation
B. Risk and Uncertainty Bearing
8. Small Business Venture & Entrepreneurship
8.1 Small Business
8.2 Problems of Small Enterprises in Nepal and Global
9. Women Entrepreneurship
9.1 Concept of Women Entrepreneurship
9.2 Qualities of Women Entrepreneur
9.3 Importance of Women Entrepreneurship
9.4 Problems / Obstacles in Women Entrepreneurship
10. Entrepreneurial Motivating Factor
A. Internal Factors
B. External Factors
11. MCCLelland's Achievement Theory of Needs
1. Introduction to Entrepreneurship

1.1 Entrepreneur / Entrepreneurship

Entrepreneur
The word entrepreneur is derived from the french word ‘entreprendre’ it means “to undertake”
and literally translated means “between-takes” or “go-between”.
Entrepreneur is an individual who takes risks and starts something new.
● Development of Entrepreneurship
➔ Earliest Period
➔ Middle Ages
➔ 17th Century
➔ 18th Century
➔ 19th & 20th Century
​Entrepreneurship
Entrepreneurship is the process of creating something new with the value of devoting the
necessary time and effort, assuming the accompanying financial, psychic and social risk and
receiving the resulting rewards of monetary and personal satisfaction and independence.

​ 1.2 Characteristics of Entrepreneur

(a) Develop New Market
(b) Discover New Sources
(c) Mobilize Capital Formation
(d) Introduce New Technologies
(e) Create Employment

(a) Develop New Market ​- ​Entrepreneurship is concerned with creation of new

markets with new ideas. Generally, New ventures start as a small Business such
ventures satisfy unfulfilled needs in the market. They produce something new of
value. They develop new markets and new customers.
(b) Discover New Sources ​- ​Entrepreneurship involves a continuous search for new
ideas. Entrepreneurship compels individuals to continuously evaluate the existing
modes of business operations so that more efficient and effective systems can
be evolved and adopted. In other words, entrepreneurship is a continuous effort
for synergy (optimization of performance) in organizations.
(c) ​Mobilize Capital Formation - ​Entrepreneurship is concerned with ability of the
private funds to move across national boundaries in pursuit of higher returns.
This mobility depends on the absence of currency restriction on the inflows and
outflows of capital.
(d) ​Introduce New Technologies - ​Entrepreneurship helps Entrepreneurs to
remain continuously involved in innovation and creativity. They produce ​products
to suit the changing needs of the customers. They also establish research and
development facilities to innovate. They possess technical knowledge and
experience. They are agents of change.
 (e) C​ reate employment - ​Entrepreneurship provides employment opportunities to
the large pool of a variety of employees. New business ventures increase the
income level. It provides employment to special focus groups such as women &
disadvantaged persons.

2. Types of Entrepreneurship
(a) Administrative Entrepreneurship
(b) Opportunistic Entrepreneurship
(c) Acquisitive Entrepreneurship
(d) Incubative Entrepreneurship
(e) Imitative Entrepreneurship
(f) Private Entrepreneurship
(g) Public Entrepreneurship
(h) Individual Entrepreneurship
(i) Mass Entrepreneurship

(a) Administrative Entrepreneurship - Administrative techniques and function,

Total Quality Management, Job redesigning, Participative Management increase
overall organizational efficiency.
(b) Opportunistic Entrepreneurship -
➔ Hit it while iron is hot.
➔ Opportunity while environmental change
➔ It identifies, exploits and executes the opportunity in the first hand.
Example; Induction stoves.
(c) Acquisitive Entrepreneurship -
➔ Learn from other competencies
➔ Acquires something new of value front.
➔ Entrepreneurship is sustainable in the environment.
(d) ​Incubative Entrepreneurship -
➔ Generates and nurses new ideas and ventures within the organization.
➔ They pursue and help getting differentiated technologies to promote
creations innovations.
➔ Creates product differentiation in the market.
Example; Microsoft, Samsung, etc.
(e) ​Imitative Entrepreneurship -
➔ Imitates a good or service operating in the market under a franchise
agreement.
➔ It is the medium that spreads technology over the world.
➔ It also adopts an existing technology with minor modification appropriate
to the local condition.
(f) Private Entrepreneurship -
 ➔ Initiated under private sector
➔ Government gives various support services through private and public
concerns that encourage private initiative in taking entrepreneurial
ventures.
➔ A mutual relationship between private and public sectors would make
economical development speedy and balanced.
(g) Public Entrepreneurship -
➔ Undertaken by the government through its various development agencies.
➔ All countries developed or underdeveloped, take public initiative in
venture ideas to fulfil the initial deficiency of private entrepreneurs.
(h) ​Individual Entrepreneurship -
➔ Undertaken by an individual or a family with personal initiative.
➔ For the need of day to day personal requirements.
➔ Small fund investment.
(i) Mass Entrepreneurship -
➔ Emerges in an economy where a favorable climate of motivation and
encouragement exist.
➔ It Increases small and medium enterprises in a country.

3. Importance of Entrepreneurship
A. Economic
(a) Capital Formation
(b) Employment Creation
(c) Increased Productivity
(d) Balanced Development
(e) Equitable Distribution of Income
(f) Export Promotion
(g) Industrialization
B. Opportunities for Entrepreneur
(a) Independence
(b) Better Life Style
(c) Profi​t

A. Economic -
Economic development implies sustainable increase in quality of life. It encompases
increases in per capita income, educatio, health & environmental protection. The role of
entrepreneurs has been important in the economic development of many countries. They
spot new opportunities. They pull together human, capital, material & information
resources to convert opportunities into new ventures.
Entrepreneurship is the driving force for economic development. It plays a critical role in
economic development in the following ways :-
 (a) Capital Formation ​- Capital is an important factor for economic development.
Capital formation is addition made to the stock of physical & human capital.
Entrepreneurs stimulate investment interest in new ventures to mobilize idle
saving of people. They fuel economic growth.
(b) Employment Creation - Entrepreneurship creates employment opportunities of
self & others. New business ventures are an important employment opportunity.
Unemployment goes down, income levels increase. They provide employment to
special focus groups, such as women & dis-advantaged persons.
(c) Increased Productivity - Entrepreneurs innovate. They make effective
utilization of resources. They even relocate resources. This leads to increase in
production & productivity. The use of new technology facilitates productivity
increases. The rate of economic growth increases and potential resources get
effectively exploited.
(d) Balanced Development - Entrepreneurs start new ventures in various parts of
the country. Incentives & facilities granted by the government serve as an
attraction for starting business in backward regions. This promotes balanced
regional development with local resources, get utilized.
(e) Equitable Distribution - ​Entrepreneurs stimulate equitable distribution of wealth,
income & political power. By starting risky new ventures & running them
successfully, they help reduce concentration of wealth, income & political power
in the hands of big houses & global enterprises. Local Ownership & control is
ensured. Self-empowerment increases.
(f) Export Promotion - Entrepreneurs develop new products to cater to the needs
of foreign customers. They tailor their products to the changing needs &
preferences of foreign customers. They carve a niche in foreign markets. Export
bring valuable foreign exchange. It is needed to maintain equilibrium in balance
of payments.
(g) Industrialization - Entrepreneurship activities, the prime source of
industrialization provide employment opportunities. Underemployed, people in
agriculture more to industries. People learn new skills & earn more income.
Products become cheaper & of good quality. New products are invented &
marketed. New technology develops.

B. Opportunities for Entrepreneur -

Aspiring entrepreneurs can come up with ideas all day long, but not every idea is
necessarily a good idea. For an idea to be worth pursuing, we must first determine
whether the idea translates into an ​entrepreneurial opportunity.​ Entrepreneurial
opportunity is the point at which identifiable consumer demand meets the feasibility of
satisfying the requested product or service. In the field of entrepreneurship, specific
criteria need to be met to move from an idea into an opportunity. It begins with
developing the right mindset—a mindset where the aspiring entrepreneur sharpens his
or her senses to consumer needs and wants, and conducts research to determine
whether the idea can become a successful new venture.
 (a) Independence - Independence includes ambitions, goal, persistence and
energy. For an entrepreneur, independence is the biggest opportunity which
makes them ambitious towards their goal.
(b) Better Life Style - ​A lifestyle entrepreneur is an individual who creates a
business for the purpose of changing their lifestyle instead of making profits. This
type of ​entrepreneur usually wants to create a business because they are
passionate about it and believe that it will be personally rewarding for them.
(c) Profit - Profit works as a signal to the entrepreneur in several ways. Most
entrepreneurs start businesses to solve problems, offer alternatives to
consumers or satisfy needs that are not being met. They develop business plans
around their ideas and then implement them.

4. Qualities of an Entrepreneur
A. Personality Traits
(a) Dynamic
(b) Intellectual and Competent
(c) Vision
(d) Flexibility
(e) Sense of Responsibility
(f) Good Character
(g) Take Initiatives
B. Managerial Traits
(a) Technical Knowledge
(b) Organizational Ability
(c) Human Relation
(d) Power of Judgement
(e) Ability to Integrate
(f) Other Traits

A. Personality Traits
(a) Dynamic - ​Entrepreneurship should be dynamic in nature. Entrepreneurship
changes as well as ready for change. An entrepreneur must be changed
according to the needs, wants & requirements.
(b) Intellectual and Competent - ​Intellectual means a person have good brain,
skills, well educated in nature. Entrepreneurs are those who compete, all those
problem comes into organization.
(c) Vision - Vision means the long term goal to develop an entrepreneur. Firstly,
entrepreneurs should develop goals when starting up in any organizational
activities.
(d) Flexibility - Flexibility refers to the ability of adjustment in any condition which
happens in an organization. We must be adjustable & adoptable in nature.
 (e) Sense of Responsibility - In an organization, suppliers in any condition. To be
customers, suppliers in any condition. To be responsible for all those work like
tak pay etc.
(f) Good Character - In organization, startup phase to behave a well character in
front of organization for the betterment of long term entrepreneur personality.
(g) Take Initiatives -

B. Managerial Traits
(a) Technical Knowledge - ​Technical skills is knowledge of and proficiency in
activities involving methods, processes, and procedures. Thus, it involves
working with tools and specific techniques. It is the ability to use the specialized
knowledge, procedures, and techniques of a field of activities.
(b) Organizational Ability - A successful entrepreneur has management skills to
accurately research his market and develop a comprehensive, multi-year
business plan. This includes accounting for growth and development, taking
employees, financing operations and marketing and running or overseeing the
day to day business functions.
(c) Human Relation - An entrepreneur must possess human relation traits.
Communication skill for an entrepreneur is must. An entrepreneur must be able
to convey ideas and information to others and receive information and ideas from
others effectively.
(d) Power of Judgement - An entrepreneur must have a skill of judgement. He must
be able to recognize opportunities and threats and then select an appropriate
course of action to tackle them efficiently so that the organization can benefit
them.
(e) Ability to Integrate - An entrepreneur must have conceptual skill. He must have
the ability to coordinate and integrate all of an organization’s interests and
activities.
(f) Other Traits - An entrepreneur possesses several managerial traits such as
ability to learn from mistakes, willingness to take a leap of faith. Trust in and
respect for the team. Ambition and self-confidence
.

5. Role of Entrepreneurs in Economic Development

(a) Capital Formation - ​A country can attain economic development only when
there is more amount of investment and production. Entrepreneurs help in
channeling their saving and saving of public to productive resources by
establishing enterprises. They promote capital formation by channeling the
saving of the public to productive resources.
(b) Generation of Employment - Entrepreneurs employ labour for managing their
business activities and provide employment opportunities to a large number of
people. They remove unemployment problems.
 (c) Improvement in Per Capita Income -​ Entrepreneurs help to increase the per
capita income of the country in various ways and facilitate development of
backward areas and weaker sections of the society.
(d) Reduces Concentration of Wealth - Economic power is the natural outcome of
industrial and business activity. Industrial development normally leads to
concentration of economic wealth which results in the growth of monopolies. In
order to redeem this problem a large number of entrepreneurs need to be
developed, which will help to reduce the concentration of wealth amongst the
population.
(e) Balanced Regional Development - Entrepreneurs help to remove regional
disputes through setting up of industries in less developed and backward areas.
The growth of industries and business in these areas lead to a large number of
public benefits like road transport, health, education, entertainment, etc. setting
up of more industries lead to more development of backward regions and thereby
promotes balanced regional development.
(f) Resource Mobilization - Entrepreneurs help to mobilize and utilize local
resources like small savings and talents of relatives and friends, which might
otherwise remain idle and unutilized. Thus they help in effective utilization of
resources.
(g) National Self - reliance
(h) Harnessing Natural Resources
(i) Backward and Forward Linkages
(j) Sense of Purpose

6. Stages of Entrepreneurial Process

I. Conducting Opportunity Analysis
II. Developing the Plan and Setting up the Company
III. Acquiring Financial Partners and Sources of Funds
IV. Determining Resources Required and Implementing the Plan
V. Scaling and Harvesting the Venture

I. Conducting Opportunity Analysis - ​An entrepreneurial process begins with the

idea generation, wherein the entrepreneur identifies and evaluates the business
opportunities. Conducting opportunity analysis is a different task; an
entrepreneur seeks input from all the persons including employees, consumers,
channel partners, technical people etc. to reach an optimum business
opportunity. (Or, The potential entrepreneur and the strength, weakness,
opportunity and threat present in the business environment).
II. Developing the Plan and Setting up the Company - Once the opportunity is
analyzed, an entrepreneur needs to create a comprehensive business plan. An
entrepreneur must dedicate his sufficient time towards its creation, the major
components of a plan are mission and vision statement, goals and objectives,
 capital requirement, a description of products and services, etc. and setting up
the company.
III. Acquiring Financial Partners and Sources of Funds - The third step in the
entrepreneurial process is resourcing, wherein the entrepreneur identifies the
sources from where finance and financial partners can be arranged. Here , the
entrepreneur finds the investors for its new venture and the personnel to carry
out the business activities.
IV. Determining Resources Required and Implementing the Plan -​ Once the
sources of funding and financial partners are acquired, the next steps is to
determine resources required and implementing the plan to achieve the sets
goals. (Or, After the acquisition of a partner the next step is to determine the
resources required for the operation of the business. These resources include the
man, machine, materials, equipment and with these resources the plan is
implemented).
V. Scaling and Harvesting the Venture -​ The final step in the entrepreneurial
process is scaling and harvesting the venture wherein, an entrepreneur decide
on the future prospects of the business i.e. its planned growth and then the
decision regarding the stability or the expansion of business operation is
understandable. Accordingly, by an entrepreneur.

7. Functions of an Entrepreneur
A. Innovation
➔ The unexpected success or failure of any unexpected outside event.
➔ Innovation based on process need.
➔ Changes in industry and market structure
➔ Demographic changes
➔ New knowledge
B. Risk and Uncertainty Bearing
➔ Perception of market opportunities.
➔ Going command over scarce resource risk.
➔ Purchasing inputs.
➔ Marketing the products.
➔ Dealing with bureaucrats (government).
➔ Managing human relations within the rewards firms.
➔ Managing customer and supplier relation.

8. Small Business Venture & Entrepreneurship

8.1 Small Business
Sometimes called a small business, a small-scale enterprise is a business that employs
a small number of workers and does not have a high volume of sales. Such enterprises are
generally privately owned and operated sole proprietorships, corporations or partnerships. The
legal definition of a small-scale enterprise varies by industry and country.
In the context of Nepal, if employers then 20 employees. There may be contributions of
women and minorities, small enterprises such as privately owned restaurants, law firms,
bakeries, dry cleaners, construction contractors, etc.

8.2 Problems of Small Enterprises in Nepal and Global

(a) Finance
(b) Raw Materials
(c) Idle Capacity
(d) Technology
(e) Marketing
(f) Infrastructure
(g) Government Regulations
(h) Tax Policies
(i) Skilled Manpower
(j) Managerial Personnel

(a) Finance - In case of Nepal and other globalized countries, there is a lack of
finance for the small enterprises. They lack sufficient capital for their operation.
(b) Raw Materials - The small enterprises require a small amount of raw materials
suppliers do not want to supply small amounts of raw materials and it creates
problems for the small scale enterprises.
(c) Idle Capacity - The small enterprises have fixed and constant capacity due to
lack of finance and raw material. They can be operated to a limited capacity only.
(d) Technology - Technology changes each second. It is a matter of cost. The small
scale enterprise cannot afford the technology which is a great problem to its
operation.
(e) Marketing - The scope of marketing of small scale business enterprise is very
limited. It sells its product to the local or particular market only and is competitive
with other markets due to lack of resources.
(f) Infrastructure - This is one of the major problems for small scale enterprises.
There is a lack of infrastructure like freight & logistic facilities, plant & machinery
etc. to be operated in a better manner.
(g) Government Regulations - A variety of government regulations to the operation
of small scale enterprise creates problems for them. They have to fulfill a lot of
formalities for registration and operation which creates the problem of overcost.
(h) Tax Policies - Although, the small scale enterprise earns only a little, a high
portion of income goes to taxation. This creates no profit to the small enterprise.
(i) Skilled Manpower - The small scale enterprises are established with low capital
and by the people who are not skillful. so , lack of skilled manpower is another
problem of small scale enterprises.
 (j) Managerial Personnel - All the activities of small scale enterprises are managed
by the owners themselves. The hiring of managers is a costly fact. Hence, such
types of enterprises lack managerial personnel.

9. Women Entrepreneurship

9.1 Concept of Women Entrepreneurship

Women Entrepreneur may be defined as a woman or group of women who initiate,
organize and run a business enterprise.
The Government of Nepal has defined women entrepreneurs as owning and controlling
an enterprise with a woman having a minimum financial interest of 51% of the employment
generation in the enterprise to women.
According to J.Schumpeter, “Women who innovate, initiate or adopt business activity are
called women entrepreneurs.”
According to Ruhan J.Ailee, “Women entrepreneurship is based on women participation
in equity and employment of a business enterprise.”

9.2 Qualities of Women Entrepreneur

(a) Accept Challenges
(b) Ambitious
(c) Hard Work
(d) Patience
(e) Motivator
(f) Adventurous
(g) Conscious
(h) Educated
(i) Intelligent

(a) Accept Challenges - Women entrepreneurs have the capacity and quality of
accepting business challenges in a quick and flexible manner. They are able to
accept risk.
(b) Ambitious - Women entrepreneurs are highly ambitious. They have high
ambition and desire to achieve the goal of their business.
(c) Hard Work - Women entrepreneurs are highly committed to high work. They
prefer to work hard to achieve their goal.
(d) Patience - The patience power of women entrepreneurs is very high. They are
able to tolerate ups and downs available in a business environment.
(e) Motivator - Women entrepreneurs act as good motivators. They can motivate
others better than male through their p
(f) Adventurous - The women entrepreneurs are highly adventurous. They are
conscious of their knowledge and effort.
 (g) Conscious - Women entrepreneurs are highly conscious. They work consciously
to their duty. They are those who work perfectly.
(h) Educated - ​Women entrepreneurs are highly educated. They are devoted to the
knowledge and education about business.
(i) Intelligent - Women entrepreneurs are sharp minded and bear a high level of
intelligence.

9.3 Importance of Women Entrepreneurship

1. Women are better connectors and possess proficiency in networking.
2. Women are perfectionists and never settle for average results.
3. Multitasking has been in their blood since ages.
4. They build businesses that deliver value for multiple stakeholders - customers,
employees, investors and founders.
5. Women think success comes from hard work not just from being “awesome”.
6. Women share the credit. They build companies where employees feel valued for
their contributions and input.
7. They work in a calculated and use thought out manner.
8. Women know the clear methodology to balance profession and personal life.

9.4 Problems / Obstacles in Women Entrepreneurship

1. Women entrepreneurs do not act like men.
2. Women owned startups receive significantly less investors.
3. Emotions and nurturing encourage development skills that can affect women’s
business.
4. Women often lack the support of other female business leaders.
5. Many women have to balance raising families with their business.
6. Women entrepreneurs are afraid of failure.

10. Entrepreneurial Motivating Factor

A. Internal Factors
(a) Desire to do something new
(b) Become independence
(c) Achieve what one to have in life
(d) Be recognized for one’s contribution
(e) One’s educational background
(f) Ambitious factors
(g) Competing factor

B. External Factors
(a) Government assistant and support
(b) Availability of labor and raw materials
(c) Encourage from big houses
 (d) Promising demand for product

A. Internal Factors
Those factors which are within an individual and act as a source of motivators to be an
entrepreneur are called internal factors.

(a) Desire to do something new - If the individual has desire to get or do something
new, then the individual is motivated towards achievement of goal and bear the
characteristics of entrepreneur. The desire to achieve or provide some motivates
an individual.
(b) Become independent - ​Entrepreneurs have freedom autonomy, some people
like to work in freedom. Entrepreneurship is a lifestyle rather than profession. The
desire to become independent motivates an individual.
(c) Achieve what one to have in life - The individual’s aspiration and self creation
desire to achieve motivates an individual. Individual motivation is brought when
there is desire to achieve what one has to achieve in life.
(d) Be recognized for one’s contribution - The expectation and fulfillment of the
recognition needs are the internal entrepreneurial motivating factor. It motivates
the individual towards being an entrepreneur.
(e) One’s educational background - The educational background of an individual
is the factor to motivate or demotivate an individual towards entrepreneurship.
Higher the level of education higher the motivation towards entrepreneurship.
(f) Ambitious factors - The ambition refers to the desire to reach the top of the
success. The ambitious are not present in every individual but those having the
ambitious factor are motivated toward entrepreneurship.
(g) Competing factor - If the market is monopoly, then there is no scope for
competition.

B. External Factors
The factors that are created by external bodies and are responsible for motivation
towards entrepreneurship are called external factors for motivation.

(a) Government assistant and support - The assistance and support from the
government can motivate the establishment of enterprises. The provision of
government to provide subsidies, no tax provision etc. encourages for the
establishment of enterprise.
(b) Availability of labor and raw materials - THe manufacturing industries require
labour and raw material and labour as required to manufacture goods and
services are the motivational factor for entrepreneurship.
(c) Encourage from big houses - Specially, the small and medium enterprise, if
motivated by the big industries through the way of accepting the raw materials
from these SMEs creates the base for the establishment of SMEs.
(d) Promising demand for product - The potential demand for the product and
services being manufactured motivate an individual towards entrepreneurship.
11. MCCLelland's Achievement Theory of Needs
MCCLelland of achievement motivation holds that people have three motives for
accomplishing things. The need for achievement and need for affiliation and need for power,
need for achievement and need for power drive entrepreneurship.
David MCCLelland (1917-1988) considered entrepreneurs as people who do things in a
better way and make decisions in times of uncertainty. The dream to achieve big things
overpowers monetary or other external incentives.
MccLelland’s experiment revealed that Traditional beliefs do not inhibit an entrepreneur
and that it is possible to internalize the motivation required for achievement orientation through
training training. The needs explained in this theory are as follows :-

1. Need for Achievement (Na ach) - The need for achievement of the
preconceived goals and mission are the motivational factors for the incorporation
of entrepreneurship. It is the most important need to drive entrepreneurship.
2. Need for Power (N pow) - The need for power, authority, freedom etc and the
freedom to have influence on others is another major factor to drive
entrepreneurship. The entrepreneur’s do not like to operate under the command
of others.
3. Affiliation need (N aff) - It is comparatively less important in case to drive
entrepreneurship. Entrepreneurs are self-assured but they require a part of love,
affection, support from the members of their society including friends, peers etc.

​Unit - 2
Entrepreneurial Process and Intrapreneurship

Chapter -2
1.​ ​Relationship between Intrapreneurship and Entrepreneurship
2. Difference between Entrepreneurs and Intrapreneurs
3. Critical Factors for Starting New Business
A. Personal Attributes
B. External Factors [Environmental Factors]
4. Entrepreneurial Process
5. Distinguish between Managerial and Entrepreneurial Decision Making
6. Concept of Intrapreneurship and its Growing Importance
1. Relationship between Intrapreneurship and Entrepreneurship
An entrepreneur is a person who organizes and manages a business
undertaking, assuming the risk for the sake of the profit. Intrapreneur is someone who is
an employee of a firm, but does all these things under the umbrella of the firm. The
person undertakes everything on their own initiative ideas & concepts.
The relationship is that entrepreneurship provides the platform for intrapreneurial
activities just as they are related by the word ‘in’ and ‘en’. Intrapreneurship is an
innovative display of skill and leadership qualities within an organized business set up,
all geared toward achieving the success of the business and increasing the profit status
of the business.

2. Difference between Entrepreneurs and Intrapreneurs

Basis Entrepreneur Intrapreneur

1. Meaning Entrepreneur refers to a Intrapreneur refers to an

person who set up his employee of the organization
business with a new idea or who is in charge of undertaking
concept. innovation in products, service,
process etc.

2. Approach Intuitive Restorative

3. Resource Use your own resources. Use resources provided by the

company.

4. Capital Raised by him. Financed by the company.

5. Enterprise Newly established. An existing one.

6. Dependency An entrepreneur is But, an intrapreneur is

independent in his dependent on his entrepreneur.
operations.

7. Risk Entrepreneur bears the risk An intrapreneur does not fully

involved in the business. bear the risk involved in the
business.

8. Operation An entrepreneur operates On the contrary, an intrapreneur

from outside. operates from within the
organization itself.

9. Work for Creating a leading position in Change and renew the existing
the market. organizational system & culture.
3. Critical Factors for Starting New Business
A. Personal Attributes
(a) Dynamic
(b) Intellectual and Competent
(c) Vision
(d) Flexibility
(e) Sense of Responsibility
(f) Good Character
(g) Take Initiatives
B. External Factors [Environmental Factors]
(a) Political Factor
(b) Legal Factor
(c) Economical Factor
(d) Technological Factor
(e) Sociological Factor

A. Personal Attributes
Personal attributes are those requirements within an individual that must be
considered before starting a new venture. They can be learned or experienced.

(a) Dynamic - Entrepreneur or the individual trying to start a new venture must be
dynamic competent enough to cope up with dynamism. He/ she should well know
the ways to overcome the change and implementation of the average. For the
benefit of himself as well his/ her potential customer.
(b) Intellectual and Competent - ​Entrepreneur should bear the intellectual and
competent ability and capacity. He/ she should have better knowledge for the
establishment of a new venture.
(c) Vision - Vision is the prerequisites requirement of the person. The entrepreneur
should have a far sighted vision about his/ her business as well as stakeholders.
Before entering into a new venture, he should predict the future of his/ her
business as well as ability to fulfill shareholder’s requirements.
(d) Flexibility - ​Entrepreneurs should be flexible enough to adapt to the change
occurring to the external environment.
(e) Sense of Responsibility - ​The new entrepreneur first finds himself responsible
for his potential business the needs to find responsible towards all the
stakeholders.
(f) Good Character - ​The entrepreneur should possess good character for being an
entrepreneur, an individual must be honestly and have a great passion.
(g) Take Initiatives - ​Before starting a new venture, initiative is required. It means
that any enterprise cannot be established if an individual does not take initiative.
Initiative is the action done to implement the plan.
 B. External Factors [Environmental Factors]
(a) Political Factor - Political factor has high influence on new ventures. The
political parties may restrict the establishment of new ventures if the goals are
found to be unsuitable to the welfare of the nation.
(b) Legal Factor - The legal provision i.e. regulations and rules for operating a
particular type of business are responsible for its influence on business. The
rules of the nation need to be followed for establishment of new ventures.
(c) Economical Factor - The economic factors relates to monetary transactions.
The change to exchange rate, tax rate, custom duty etc. needs to be considered
for the starting a new venture.
(d) Technological Factor - Technological factor is the major factor that requires
critical consideration. It is the major factor that influences the quality and quantity
of output. The new entrepreneur should examine the availability and accessibility
to the updated technology.
(e) Sociological Factor -​ Sociological factor consist of the following :
● Social structure - The social structure is social demographic
composition should be studied first to start a new venture. So as to focus
on the variation of demographic needs.
● Social values and convention - The norms, values, thinking pattern of
the people of the society towards your venture should be considered.
● Cultural structure - ​Society comprises mixed culture. The venture should
be established that suits the culture of the society.
● Culture aspiration - Finally the business enterprise should be
established to fulfill the needs & expectations of the society.

4. Entrepreneurial Process
An entrepreneur must find, evaluate and develop an opportunity by overcoming the
forces that resist the creation of something new. The entrepreneurial process involves all the
function activities and action linked with perceiving an opportunity and creating an organization
to pursue the.
The process has four distinct phases :-
(a) Identification and evaluation of the opportunity
(b) Developing a business plan
(c) Determine the resources required
(d) Manage the enterprise

(a) Identification and evaluation of the opportunity - Opportunity identification and

evaluation is a very difficult task. Mass entrepreneurs do not have formal mechanisms or
identifying business opportunities. Consumers are the best source of ideas for a new
venture. After identifying the opportunity, it must be carefully screened and evaluated.
The opportunity fitting the personal skills and goals of the entrepreneur must be
identified. It is important that the entrepreneur be able to put the necessary time and
effort required to make the venture succeed.
 (b) Developing a business plan - A good business plan must be developed in order to
exploit the defined opportunity. It is a very time consuming phase as a good business
plan is essential to determining the resources required. Obtaining those resources and
successful managing the resulting venture.
(c) Determine the ​resources required - The resources needed for addressing the
opportunity must be determined as this process starts with an appraisal of the
entrepreneur’s present resources. Care must be taken not to underestimate the amount
of variety of resources needed. The downside risks associated with insufficient
resources should also be assessed.
(d) Manage the enterprise - After resources are acquired, the entrepreneur must use them
to implement the business plan which involves implementing a management style and
structure, as well as determining the key variable for success. Some entrepreneurs have
differently managing and growing the venture they created.

5. Distinguish between Managerial and Entrepreneurial Decision Making

Basis Entrepreneurial Managerial

1. Status Owner of the enterprises. So he Servant of the enterprises, so

is free to decide on critical he should consult delegates of
matters of organization. supervision to take decisions.

2. Risks Bear all risks himself. Manager does not bear any
risk involved in the enterprise.

3. Qualification Creativity, farsightedness, Knowledge of management

technical knowledge and theory and practical
experience. experience.

4. Focus Focus on future vision and Focus on present realities.

perceive opportunity.

5. Reward Profits, which are highly Salary, which is certain and

uncertain and not fixed. fixed.

6. Emphasis Emphasis on the external Emphasis on the internal

environment. environment.

7. Innovation Entrepreneur himself thinks over A manager simply executes

what and how to produce goods plans prepared by the
to meet the changing needs of entrepreneur.
customers. Hence he acts as an
innovator/ change agent.

8. Authority Direct involvement, centralized. Delegates and supervises

hierarchical.
 9. Venture Creates new ventures. Works in an existing
organization.

6. Concept of Intrapreneurship and its Growing Importance

Intrapreneur is a person within the large organization who handles new ventures based
on creativity & innovation. They are not real owners in the business.
Intrapreneur is a person who practices intrapreneurship. A corporate manager who starts
a new initiative for their company which entails setting up a new distinct business unit and board
of directors can be recognized as an intrapreneur.
Intrapreneur is the act of behaving like an entrepreneur while working within a large
organization.
Intrapreneur is known as the practice of a corporate management style that integrates
risk taking and innovation approaches, as well as the reward and motivational techniques that
are more traditionally thought of as being the province of entrepreneurship.
Its importance are listed below :
(a) Growth
(b) Innovation
(c) Leadership
(d) Change
(e) Engagement

(a) Growth - The goal of intrapreneurship is to create the entrepreneurial mindset and its
infrastructure which needed to support growth. It takes a systems view of growth. It is a
framework for transformation. Intrapreneurship helps organizations to generate new
business growth.
(b) Innovation - Organizations need to set the innovation, the right people, the right process
and the right environment. Innovation and intrapreneurship are entwined.
Intrapreneurship provides an environment to support and sustain innovation over time.
(c) Leadership - Intrapreneurship requires a new set of competencies and behaviours.
Intrapreneurial leaders think and act differently, they have different motivations and
aspirations and they prefer working in a different work environment which makes them to
lead new growth initiatives. Intrapreneurship is one of the best ways to attract and retain
the entrepreneurial leaders.
(d) Change - Intrapreneurial leaders are change agents. They become the very change
they wish to see. Intrapreneurship enables organization to accelerate and change
management effectively.
(e) Engagement - Intrapreneurship provides a platform to engage in work that is
challenging and meaningful. Their passion and determination inspire others to get
involved and try new things as when they grow, the organization grows.
 Unit - 3
Creative Process for Business Ideas

Chapter - 3
1. Creative Process
2. Nature of Creative Process
3. Sources of New Ideas
4. Methods of Concerning Ideas

1. Creative Process
Creative does not just happen. It is a cognitive process that produces new ideas
or transforms old ideas into updated concepts and explains how an individual can form
random thoughts into an ideal combination or solution.
Every creative journey begins with a problem. It starts with a feeling of frustration,
the dull ache of not being able to find the answer. The feeling of frustration, the act of
being stumped is an essential part of the creative process.
The creative process that creates creativity consists of background or knowledge
accumulation, the incubation process, the idea experience and evaluation and
implementation.

(a) Background or Knowledge Accumulation - It is a sequential and continuous

process. Knowledge accumulation refers to collecting enough information by
brainstorming regarding business ideas.
(b) The Incubation Process - While the individual begins to process his ideas, he
begins to synthesize them using his imanization and behind to construct a
creation. In incubation, necessary connections are made in order to ‘lay’ the idea.
In this stage, we have the idea, but we’re just giving it some steam and energy in
order for it to fully materialize.
(c) The Idea Experience - The third step is the most exciting. The solution to the
problem is discovered. This is the time when the puzzle of an idea has come
together and there is no stopping its influence from coming out in creativity. The
solution suddenly appears. The moment can be unexpected. As the idea begins
to mature the individual has an excitement how to piece her thoughts together in
a manner that makes sense.
(d) Evaluation and Implementation - The final or last step is to modify test or
re-work on rough ideas to put them in final form. It is the last step of the creative
process, which means that idea has gone down on paper when an individual
 begins the process of transforming his/ her thoughts into a final product then the
idea or solution in the creative process model is implemented.

2. Nature of Creative Process

Creativity does not just happen. It is a cognitive process that produces new ideas or
transforms old ideas into updated concepts and explains how an individual can form random
thoughts into an ideal combination or solution.
The nature of creative process are :-
(a) Sequential Process
(b) Innovative Process
(c) Improvement Process
(d) Problem Solving Process
(e) Costly Process
(f) Conducted from Time to Time When Innovation Standardized
(g) Environment Adjustment Process
(h) Direction towards Success and Survival
(i) Time Consuming Process

(a) Sequential Process - ​Creativity process intakes a series of effort on a regular

basis without any gaps. The sequential execution of thinking is done one after
another.
(b) Innovative Process - ​As time passes, new technology or ideas need to be
adopted. Creative process brings the new innovative ideas to be competitive or
ahead of time.
(c) Improvement Process - ​Any creation is performed to ring betterment. If any sort
of negative deviation is found then the creativity process is done to improve it.
Hence, the creative process is also an improved process.
(d) Problem Solving Process - It is common for a business to face problem
corrective action adopted by the business to cure it through creative process.
Problem solving process and creative process are directly interrelated.
(e) Costly Process - Creative process is also a costly process. New ideas
developed through creative processes bring new necessities, which can be
equipment, technology, skilled workforce & many more.
(f) Conducted from Time to Time When Innovation Standardized - Globalization
has brought change in rapid force. Everyone wants to be in competition. So,
innovative ideas are standardized by the global market. In order to be in ction,
creative processes must be conducted from time to time.
(g) Environment Adjustment Process - Environment adjustment process is related
to change in environment and cope with the change.
(h) Direction towards Success and Survival - Creativity process brings new ways
of making success business through innovative ideas. This also helps to survive
in the global competitive market.
 (i) Time Consuming Process - Creativity lies in people. Brainstorming is not
automatically development, it takes a worthwhile time to be complete. Hence the
creative process is a time consuming process.

3. Sources of New Ideas

New products are the lifeblood of every business, if any business does not develop its
new product continuously it will die soon. For developing new products development powers. It
is important to have a great idea first and then the company can start the new product
development process. For getting great ideas there are four great sources which are follows :-
(a) Consumer
(b) Existing Companies
(c) Distribution Channels
(d) Research and Development

(a) Consumer - The potential consumer should be the final point of ideas for the
entrepreneurs, organization may get new business ideas through regular
listening to the consumer. Consumer complaints and try to minimize complaints
then it may give birth to a new product.
(b) Existing Companies - Entrepreneurs always constantly monitor the activities or
the competitors. What are competitor;s new products, services or processes,
what alternatives in the existing system are they bringing into the practice? What
do they want? What are competitors dissatisfied customers? Seeking answers to
such questions may help for development of new product services and
processes.
(c) Distribution Channels - Monitors of the distribution channels are familiar with
the needs of the market and hence can prove to be excellent sources of new
ideas. Not only do the channel members help in finding and unmet or partially
met demand leading to new products & services. They also help in marketing the
offering so developed.
These people are very eloys to the customer. They frequently listen to
customer complaints & suggestions. They also can notice the inconveniences of
customers and competitors attitudes and offerings. Hence this activity leads to
new ideas of starting a business.
(d) Research and Development - Entrepreneurs own research and development is
the largest source of new ideas. A formal and well of new equipped research and
development department enables entrepreneur development and development to
be successful new product ideas.
It is the formal department of any organization to generate new ideas.
Research and development department research according to the company’s
future plan and then come up with new ideas which complete its journey with the
commercial of the ideas (product).
Entrepreneurs can establish a separate unit for regular research and
development work as hire such an expert team for a specific research and
 development work or can find out a new combination of offerings uniquely in
their day to day activities.

4. Methods of Concerning Ideas

Idea serves as the basis for a new entrepreneurial venture. The following methods can
be used for generating ideas.

A. Brainstorming
B. Focus Group

A. Brainstorming
The brainstorming method allows people to be stimulated to greater creativity by
meeting with others and participating in organized group expectiencies. This has a greater
frequency of occurrence when the brainstorming effort focuses on a specific product or market
areas. The brainstorming or distributing the discussion. While using brainstorming, these four
rules should be followed.

I. No criticism is allowed by any one in the group, no negative comments or ideas

generated.
II. Freewheeling is encouraged. The worker thinks the idea the better.
III. Quantity of ideas is desired, the greater the number of ideas the greater the
likelihood of the emergence of useful ideas.
IV. Combinations and improvement of ideas are encouraged, ideas of others can be
used to produce yet another new idea.

B. Focus Group
The group of 8 to 14 participants is stimulated by common creativity from other
group members' creativity. A moderator leads a group of people through an open in
depth discussion and for a new product area, the moderator focuses the discussion of
the group in directive or a non-directive manner for conceptualizing and developing a
new product idea to fulfill a market needs for generating ideas, using focus group
method the results can be analyzed more quantitatively.
 ​Unit - 4
Business Planning Process

Chapter - 4
1. ​Concept of Business Plan
2. Business Planning Process
3. Critical Component of Business Plan
4. Organizational Challenges during Growth
5. Entrepreneurial Skills and Strategies

1. Concept of Business Plan

Business plan refers to the planning in the written form done for starting a new business.
Business plan is a written document prepared by an entrepreneur that describes all the relevant
external and internal elements involved in starting a new venture. It is an integration of
functional plans such as marketing, finance, manufacturing and human resource plan.
A business plan is a blueprint of a step by step process that would be followed to convert
a business idea into a successful venture. Every new business starter should make an efficient
and effective plan for the business to be successful.

2. Business Planning Process

(a) Mission
(b) SWOT Analysis
(c) Setting Objectives
(d) Develop Premises
(e) Determine and Evaluate Alternatives
(f) Select a Course of Action
(g) Formulate Action Plan
(h) Budget

(a) Mission - business planning process starts with first identifying the mission of an
enterprise. Mission can be simply defined as the set of activities that needs to be
performed to achieve the goal of an enterprise. Every enterprise has a distinct set
of missions to achieve its goal.
(b) SWOT Analysis - SWOT Analysis can be defined as the internal analysis of an
enterprise, SWOT stands for Strength, Weakness, Opportunity and Threats.
Strength & opportunity where weakness and threats are negative aspects of an
 enterprise. The business entrepreneur should reduce the weakness and threats
with the help of SWOT Analysis.
(c) Setting Objectives - After identifying the strength, weakness, opportunity and
threats for an enterprise, the next process steps in the business planning process
is to set the objectives, while setting the objective. The entrepreneur must
analyze the strength , weakness, opportunity and threats that lie behind
depending upon whether it will be able to achieve the objectives or not which can
be only known through SWOT analysis.
(d) Develop Premises - After setting objectives the next steps is to develop
premises. Here, premises means the infrastructure. Infrastructure does not
include machinery, raw materials transportation etc. The premises should be
developed by considering the objectives set by the entrepreneur.
(e) Determine and Evaluate Alternatives - There are various alternatives available
to solve the particular problem. The alternatives available should first of all be
identified then each selected course of alternatives should be evaluated properly
to select the best source of alternatives available to solve a particular problem.
(f) Select a Course of Action - After determining and evaluating objectives, the
next process is to select a course of action to achieve the objectives. Here a
course of action means a set of activities that are to be done to achieve the
objectives of enterprises.
(g) Formulate Action Plan - When an appropriate set of action is selected, then this
set of action is needed to be implemented which lets the organization achieve its
objective.
(h) Budget - Budget is the summary of intended expenditures along with proposals.
For how to meet them. To achieve the objective, an appropriate budget needs to
be set that finance the actions.

3. Critical Component of Business Plan

(a) Industry, Customer and Competitor Analysis
(b) Company ad Product Description
(c) Marketing Plan
(d) Operational Plan
(e) Financial Plan
(f) Critical Risks

(a) Industry, Customer and Competitor Analysis - This section evaluates the
playing field in which the company will be competing. It includes the analysis of,
● What are the sizes of the target market segments?
● What are the trends for the industry as a whole?
● With what other industries do your services complete?
The greater asset is the customer. In this, the company must
convey the needs of its target customer. It must show how its product
 and services satisfy the needs to an extent that the customer will pay for
them.
It defines the competitive landscape of business, identifies who
the direct and indirect competitors are assenses their strengths &
weaknesses & provides competitive advantage.

(b) Company ad Product Description - ​The description of the company & product
should be included in the plan. Company description includes name of the
proposed company, background of the industry to which the proposed company
belongs, business concept of the company in terms of retail, wholesale,
manufacturing or service business, purpose of starting new company, objective
of the company in terms of results to be achieved, any uniqueness or distinctive
features of the company and so on.
(c) Marketing Plan - ​It describes generally the strategy to penetrate or develop the
target market, how much is planned to be sold, who the customers are, how the
services will be priced and how the services will be promoted. The marketing is
place, price, promotion & product.
(d) Operational Plan -​ It is a brief outline of the basis operations. It includes :
● How the service is to be provided?
● Where the supplies and raw material will be purchased?
● What after sales service is required?
● What land, buildings, facilities & equipment are required?
● What employee and mgmt plans are required?
(e) Financial Plan - ​It is the key component of the business plan. This is because
the process of creating a financial plan will force the team preparing the business
plan to examine all of the other key components of the plan. With this, they will
be able to describe their plan in monetary terms and detect any gaps or
unrealistic assumptions made earlier. The financial plan is a valuable tool for
creditors or government agencies when evaluating the partnership’s need and
use of funds. It consists of an income statement, cash flow statement, balance
sheet etc.
(f) Critical Risks - ​When starting a business, it is understood that there are risks
and problems associated with development. The business plan should make
certain assumptions about their factors. Identifying the problems during the
development and growth of the company is expected in the business plan. These
risks may include risk related to industry, company or employees. The company
should also take into consideration the market appeal of the company, the timing
of the product or development & how the financing of the initial operations is
going to occur.

4. Organizational Challenges during Growth

(a) Risk and Life Cycle Challenges
(b) Regulation Challenges
 (c) Delegation of Responsibilities Challenges
(d) Growth can Increase an Organizational Problem
(e) Profitability Challenges
(f) Customers may Get Ignored

(a) Risk and Life Cycle Challenges - Market changes, worries of recession,
unpredictability of the economy, dealing with lean and flush times, global market
forces like trade war, changes in laws, navigating legal issues, keeping up with all
the ever-changing tax laws, these all are the risk and life cycle challenges during
an organizational growth.
(b) Regulation Challenges - ​For an organization's growth, the challenges may be
permitting of new locations, over-regulation by municipal authorities, onerous
compliance requirements and government regulation.
(c) Delegation of Responsibilities Challenges - Several times, entrepreneurs
need to get personally involved in specific decisions, such as big-picture strategic
planning and hiring for key positions. The organizational challenge can be putting
all his trust on employees on running a job and if they mess it up sometimes it
can be bad because it makes his reputation bad.
(d) Growth can Increase an Organizational Problem - Organizational challenges
during growth can be staying relevant in today’s oversaturated market, more
businesses moving into the area and trying to compete with large companies for
a share of the market, competition from larger, better financed companies.
(e) Profitability Challenges - Profitability challenges can arise by building a steady
revenue stream, bringing in consistent revenue month to month, continually
generating revenue and creating a new revenue stream.
(f) Customers may Get Ignored - For an entrepreneur, the challenges may be
finding new customers and keeping the ones he already has, making sure to
describe items properly to never disappoint a customer, maintain the level of
attention to detail and quality that is expected, making sure our customers are
always satisfied.

5. Entrepreneurial Skills and Strategies

(a) Record Keeping and Financial Control

(b) Inventory Control
(c) Human Resources
(d) Marketing Skills
(e) Strategic Planning Skills

(a) Record Keeping and Financial Control - An entrepreneur must have a decent
understanding of his finances, profit margins, cash flow and funding. The more
comfortable he is with all of these numbers, the more confident he’ll be, and the
better decisions you’ll make.
 (b) Inventory Control - Inventory includes day-to-day accounting of a business
organization. It is necessary to make proper inventory transactions for better
financial management. An entrepreneur must possess these skills of inventory
control to run and grow his business.
(c) Human Resources - Being a great entrepreneur means being people-oriented
and having good communication skills along the way, he will surely need to
communicate with business partners, employees, and customers and integrate
all those human resources to be successful.
(d) Marketing Skills - Knowing how to take advantage of social media trends is vital
to any business trying to establish itself in a market. Social media evolves rapidly.
Entrepreneurs with the skills to stay on top of these changes and know how to
use them as an opportunity to get ahead of the competition have a greater
chance to be successful.
(e) Strategic Planning Skills - When structuring and growing a business, however,
it's important that the structure and growth strategy is based on sound business
sense and skills. A successful entrepreneur needs to have a solid strategy to
take their business from good to great.

Unit - 5
Overview of Social Entrepreneurship

Chapter - 5
1. ​Defining Social Entrepreneurship
2. Categorization of Social Entrepreneurial Organization
3. Dimension/ Components of Social Entrepreneurship
4. Approaches of Social Entrepreneurship

1. Defining Social Entrepreneurship

Social entrepreneurship are individuals with innovative solutions to society’s most
pressing social problems. They are ambitious and persistent, tacking major social issues and
offering new ideas of wide scale change.
 Social entrepreneurship is the attempt to draw upon business techniques to find
solutions to social problems. It may be applied to a variety of organizations with different sizes,
aims and beliefs.
Social entrepreneurs drive social innovation and transformation in various fields
including education, health, environment and enterprise development. They pursue poverty
alleviation goals with entrepreneurial zeal, business methods and the courage to innovate and
overcome traditional practices. A social entrepreneur builds strong and sustainable
organizations which are set-up as not-far-profits or companies.

2. Categorization of Social Entrepreneurial Organization

Social entrepreneurs recognize the social problems and use principles of
entrepreneurship to organize, create and manage a venture to make social change. Social
entrepreneurs develop innovative solutions to social problems and then implement them to a
large scale.

A. Non-Profit Organizations
(a) Imitative Non-Profit Organization
(b) Innovative Non-Profit Organization
B. For-Profit Organization
C. Hybrid Organization

A. Non-Profit Organizations - It is the organization formed for the purpose of serving a

public or mutual benefit rather than the pursuit of accumulation of owner or investor
profit. The non-profit sector is a collection of entities that are organizations, privatie as
opposed to governmental, nonprofit distributing, self-governing, voluntary and of public
benefit. The two types of non-profit organization are :-
(a) Imitative Non-Profit Organization - It is the introduction of a non-profit
organization into enemy or other systems that imitates the actions or working
plans, operations of others. It is the copied organization work for the welfare and
benefit of society and it develops its programs, plans in proper and such a way
that it can solve the social problems.
(b) Innovative Non-Profit Organization - ​These organizations create new
inventions to perform its activities. While a business entrepreneur might create
entirely new industries, a social entrepreneur develops innovative solutions to
social problems & then implements them on a large scale.
B. For-Profit Organization - It is an organization which aims to earn profit through its
operations and is concerned with its own interests and not those of public (non-profit
organization). It is usually an organization operating in the private sector which sets aim
that eventually helps the organization itself. Any donation which they receive will also be
subjected to the tax policies of the concerned country.
C. Hybrid Organization - Hybrid organizations combine the social welfare logic of
non-profit and the commerciallogic of a profit business, but are very difficult to finance. It
 is an organization that mixes elements, value, system and action logics of various
sectors of society i.e. public sector, private sector or voluntary sector. All hybrid
organizations generate both social and economic value and are organized by degree of
activity as it relates to (1) Motive, (2) Accounting & (3) Use of income.

3. Dimension/ Components of Social Entrepreneurship

(a) Social Mission
(b) Social Innovation
(c) Social Change
(d) Entrepreneurial Spirit
(e) Personality

(a) Social Mission - Social entrepreneurship is about targeting a social mission. A

social mission is about solving the social issue. The issue may be regarding the
minor or old age people. The mission may be to protect disableed people or to
eradicate illiteracy from the society or to protect the environment.
(b) Social Innovation - Social entrepreneurship is about bringing change in the
society through innovation. Social entrepreneurs implement the change in the
society through targeting their mission. They find out the new way to build up a
better society.
(c) Social Change - Change is a natural phenomenon. But to bring the change,
effort is required. Short term change is not beneficial, change should be
permanent and long term. Social entrepreneurship is the key for social change.
(d) Entrepreneurial Spirit - Similar to other entrepreneurial spirit, philosophy,
principles, social entrepreneurial also contains some philosophy and principles
applicable to the overall society. The philosophy and spirit are those which drive
the entrepreneur for bringing the change in the society.
(e) Personality - Various norms and values are present in the society which are
useless and create the hurdles for the society. The social entrepreneur is the one
who has the risk taking ability who doesn't give up until the change is brought to
the society.

4. Approaches of Social Entrepreneurship

Social entrepreneur is all about applying practical, innovative & sustainable approaches
that benefit society in general, with an emphasis on those who are marginalized and poor and it
is also a term that captures a unique approach to economic and social problems, an approach
that cuts across social sectors and discipline. Following are the basic approaches to social
entrepreneurship :-
(a) Social Entrepreneurship as an Educational Tools
(b) Social Entrepreneurship as a Profession
(c) Social Entrepreneurship as the Real World Experience
(d) Social Entrepreneurship as the Creation of Social Value and Public Goods
(e) Entrepreneurship as the New Knowledge of Social Sciences

(a) Social Entrepreneurship as an Educational Tools - Social entrepreneurship is

an educational tool. It is a medium through which individuals can aspire. Through
social entrepreneurship education about various sanitation, health, etc are
acquired. People learn about various processes and issues and get practical
knowledge to eradicate those problems.
(b) Social Entrepreneurship as a Profession - Social entrepreneurship is also a
profession similar to engineering, teaching etc. Profession is required for the
specified knowledge and skill. Similarly, social entrepreneurship also requires
skills and knowledge about the social aspect of the nation.
(c) Social Entrepreneurship as the Real World Experience - Social
entrepreneurship provides the real world experiences. It is an opportunity through
which the activities around the world are learned. In general entrepreneurship
only the aspects of the organization and the aspects of the near environment are
learned but in the social entrepreneur the broader aspects of the society is
learned.
(d) Social Entrepreneurship as the Creation of Social Value and Public Goods -
Being a social entrepreneur, it is a matter of identity. Social entrepreneurship has
its output as public goods. Those goods are for the welfare of the society. Social
entrepreneurship adds value to the society. It develops facilities, drainage
facilities, plantation of trees etc. in the society.
(e) Entrepreneurship as the New Knowledge of Social Sciences - Social
entrepreneurship is the new knowledge. It provides knowledge about social
science. Science is itself related to philosophy & principles.