UNIT - 1

ENTREPRENEURSHIP

Entrepreneur meaning: Entrepreneurship - types of entrepreneurship -Traits

of entrepreneurship - Factors promoting entrepreneurship - Barriers to
entrepreneurship- The entrepreneurial culture - Stages in entrepreneurial
process - women entrepreneurship and economic development - SHG

SECTION - A

1. Who is an Entrepreneur ?

Any person who starts is own business is called entrepreneur a person

who buys factors of production at certain prices with a view to selling his
product at uncertain prices in future.

2. Define an entrepreneur ?

F.H. Kight also in his book "Risk, Uncertainty and Profit" ,says
entrepreneurs or always specialised a group of persons who wear risk and deal
with uncertainty.

3. State the meaning of entrepreneurship.

Entrepreneurship is the purpose activity of an individual or group of

associated individuals, undertaken to initiate, maintain, or earn profit by
production and distribution of economic goods and services.
4. Define Entrepreneurship.
A.H. Cole has defined entrepreneurship as "The purpose
activity of an individual or group of associated individuals,
undertaken to , maintain, or earn profit by production and
distribution of economic goods and services.
5. What is entrepreneurial culture?
Entrepreneurial culture can be described as an
environment where someone is motivated to innovate,
create and take risks. In a business, an entrepreneurial
culture means that employees are 'encouraged to brainstorm
new ideas or products.
6. Who is women entrepreneur

A Women who innovate, emitate or adopted business activity or

known as entrepreneurs

7. What is women entrepreneur

Women entrepreneurs may be defend as the women or group of

women who take initiative, to set up a business enterprise and to run it
smoothly

8. Define women entrepreneur

Women entrepreneurs are those who generate business idea, set up

an organisation, combined the factors of production, operate the unit
undertake and handle problems involved in operating a business
enterprise

9. Give the concept of women entrepreneurs

According to Schumpeter's concept “Women who innovate emitate or

adopt the business activity” are known as women entrepreneurs

10. Write a short note on development of women entrepreneurship

Women entrepreneurs may be defined as the women or group of

women who take initiative to set up a business enterprise and run it
smoothly. Women constitute only 5.2 percentage of the total self
employed persons in India majority of them have opted for agriculture,
industries, handicrafts, handlooms and cottage based industry but it has
improved it is a healthy signed at women participation in
entrepreneurship is increasing.

11. What is SHG

SHG is a group of rural poor who have volunteered to organise

themselves in a group of eradication of poverty of the members the
agreed to save regularly and converted savings into a common fun known
as the group Corpus.
 SECTION - B

1. Explain the characteristics of Entrepreneurship.

Entrepreneurship is an ideal combination of multifarious competencies it

is a complex and multi-dimensional concept the following are the
important characteristics of entrepreneurship

Risk bearing: Entrepreneur involved in starting a new and different

which is also risky

Innovation: Entrepreneurship is a creative activities entrepreneur

introduces something new to the economy. It may be in your product to
new method of producing a new raw material a new market not it
exploited new organisation etc.

Decision making: Decision is a chords of action which is consciously

chosen from among a multiple of alternative to achieve the desired result
entrepreneurship involves both risk and uncertainty. So decision making
is crucial on the part of entrepreneurs to set up and run the enterprise
successfully.

Achievement orientation: An Entrepreneur must be achievement

oriented. Two things are important for entrepreneurs such as doing things
in a better way and the making under uncertainty. These things cannot be
attend unless he does not have motivation to achieve them.

Organisation building: Entrepreneurship implies the skill to build an

organisation such skill enables on self to multiply by delegation of
authority to others. Organisation Building is not critical skill needed for
entrepreneurship because it provides for the in economic use of other
innovation

Accepting challenges: Challenges of being an entrepreneur include being

comfortable with change and uncertainty making a bewildering number
of decisions facing tough economic choices, being comfortable with
taking risk, needing many different skills and challenge and being
comfortable with the potential of failure.
2. State the qualities of a entrepreneur

A close analysis of the concept of entrepreneur made in the

proceeding paragraph reveals the following as the qualities/traits of your
successful entrepreneur

 Capacity to take risk

 Capacity to work hard

 Energetic drive

 Self confidence, intelligence and knowledge

 Ability to forsee future

 Willingness to change

 Ability to mobilize resources

 Ability to build up organisation and administer

 Ability to take decisions

 Willingness to take responsibility

 Innovativeness

 Desire for high achievement

 Capacity to solve problem

3. List out the barriers to entrepreneurship

Entrepreneurs face many challenges. Of them, most important

one's are detail below:

Change and uncertainty

Entrepreneur deals with future which is uncertain and subject to. Being an
entrepreneur he is expected to be comfortable with change and
uncertainty. Otherwise he may get into trouble.
Bewildering number of decisions

As Stated already entrepreneur must make a number of decisions in the

cause of conduct of his business. Sometimes he may find it difficult to
take timely decision due to too much of work etc. It may make the
entrepreneur to take tough economic choices and dealing with the reality
of failure

Comfortable with taking risk

Business is always subject to changes. With changes come uncertainies

and risk. So entrepreneur must be comfortable with change and taking
risk.

Need many different skills and challenge

Entrepreneur need many different skills and talents to meet the challenges
that may occur due to change in technology, fashion, taste of customers,
policy of government, etc. It may not be possible for entrepreneurs to get
the acquainted with all types of skills and talent

Ready to accept failures

Entrepreneur must becompatible with the potential of failure as stated

already carrying on a business is not an easy job which is exposed to
many kinds of risk. So he should always be prepared to manage the
failures

4. Describe the characteristics of entrepreneurial culture

The characteristics of entrepreneurial culture:

 Growth through excellence and innovation

 Collective responsibility of experimentation

 Job execution is incomplete without improvement

 Competence upgraded and nurtured continuously

 Inclusion of innovation for performance evaluation, growth and

rewards

 Participative and inclusive

 Openness to new ideas

 Support of risk taking

 Long term focus

 Innovative problem solving and performance improvement

 Rest taking is essence of business

 Simple flexible and evolving systems

 Quick approval mechanism for innovative ideas

5. Explain the functional women entrepreneur

Being an entrepreneur women also should perform all the functions

which can entrepreneur is expected to perform in establishing an
enterprise. Functions of entrepreneurs generally involved Idea generation
and screening, determining of objectives, preparation of project,
analysing product, deciding the form of organisation, promoting an
enterprise, raising funds, recruiting men, arranging formations and
materials etc and running the business.

Besides whether men or women and entrepreneurs is expected to perform

the functions brought under the following three categories:

i. Risk bearing

ii. Organisation

iii. Innovation

Fredrick harbisonin his article has innumerated the following as the

functions of a women entrepreneur:

 Exploring the prospects of starting new enterprise

 Undertaking of risk and handling of uncertainties

 Introduction of new innovations

 Limitation of successful ones in existence

 Coordination administration and control of business activities

 Supervising and leading in all aspects of the business.

6. What are the strategies for developing women entrepreneur ?

Success Strategies for Female Entrepreneurs:

For business owners, time is critical. It is easy to get caught up in day-to-

day activities and have little time left to focus on the strategic, long-term
vision of growing your business. During this workshop you will be
guided through a process of reflection, vision and planning, and
leveraging your entrepreneurial experiences. During this interactive
workshop, you will:

➤ Visualize your business three years from now

➤ Formulate a process to establish interim goals and strategies

➤ Identify resources to assist you in reaching business goals

➤ Develop an appropriate action plan to grow your business.

7. Discuss the role of entrepreneur in economic development.

Entrepreneurs play a significant role in the economic development

of a nation. They are the most important input for the com development
of a nation. Economic development is impossible with the existence and
development of entrepreneurs in a society A County may possess
immense natural resources and a vast population Role of entrepreneurs in
economic development:

I. As Innovators:

 Introduction of new combinations in the production means

 Technological progress

 Leading the organisation.

 Implementation of skills.
II. As generators of employment opportunities

III. As developers of economy

 Capital formation

 Generation of employment

 Promotion of Balanced regional developmeni

 Reduction of concentration of economic power.

 Effective use of resources.

 Inducing of Backward and forward linkages

 Promoting export trade

8. Discuss about the goals and objectives of the self-help group?

Goal of SHGs

The goal of Self-help groups (SHG) is to become an effective age

change. They serve as a platform to establish the banking with the p
which is reliable, accountable and a profitable business. SHG enables
livelihood opportunities for village women through micro-credit with the
existing banks in the area.

Objectives of SHGs

 To enable the poor and marginalized to have access to micro-credit

with bank linkages via enterprising Self Help Groups.

 To promote the concept of SHGs by sensitizing bankers, the

Government and NGOs

 Generally raising awareness.

 SECTION-C

1. Explain the classification of entrepreneurs.

Entrepreneurs are classified into,

Based on their behavior:

Nascent entrepreneur: A nascent entrepreneur is an individual who is in

the process of starting a new business. The concept of nascent
entrepreneur appears to reflect most closely the complex entrepreneurial
process.

Novice entrepreneur: A novice entrepreneur is an individual who has no

prior business ownership experience as a business founder, inheritor of a
business, or a purchaser of a business.

Habitual entrepreneur: A habitual entrepreneur is an individual who

has prior business ownership experience. A nascent entrepreneur can
either be a novice entrepreneur or a habitual entrepreneur.

Habitual entrepreneur: A habitual entrepreneur is an individual who

has prior business ownership experience. A nascent entrepreneur can
either be a novice entrepreneur or a habitual entrepreneur.

Serial entrepreneur: A serial entrepreneur is an individual, who has sold

or closed an original business, established another new business, sold or
closed that business, and continues, and continues this cycle of
entrepreneurial behavior.

Portfolio entrepreneur: A portfolio entrepreneur is an individual who

retains an original business and builds a portfolio of additional businesses
through inheriting, establishing, or purchasing them. He is one who
grows by leaps and bounds. He is an aggressive entrepreneur and always
looks for diversifying his business by adding new lines of business every
now and then.
I. Based on American agriculture

Innovative entrepreneurs: Innovative entrepreneurs look at the

opportunity for introducing a new technique of new commodity or a new
market or even reorganize the enterprise They are competitive and
possess inventiveness, which enable them to new products production
process

Imitative entrepreneurs: They are also independent entrepreneurs. They

adopt successful innovative innovative entrepreneurs They do not involve
inventing new prodes method eis. They simply imitate the inventions
made by the introduced b innovators

Fabian entrepreneurs: Fabian entrepreneurs are characterized by

growing caution and scepticism in practicing any change in their
organization They are easily adaptable to the changing environment.
They adapt Then only when they realize that failure to adopt will lead to
collapse of the enterprise

Drone entrepreneurs: Drone entrepreneurs are characterized by refusal

to adopt and use opportunities to make changes in productive. They are
conservative. They always feel comfortable with their fashioned
technology of production.

II. Based on the type of business

Business entrepreneurs: Business entrepreneurs are individuals. They

normally work alone and so they are also known as solo operations.
Business entrepreneurs conceive an idea of a new product or service and
start a business to produce that product or service

Trading entrepreneurs: Trading entrepreneurs are undertaking trading

only. They do not normally carry out production activities. They identify
potential markets, activate demand for their products and create a desire
in the minds of buyers to buy their products.

Industrial entrepreneurs: They are essentially manufacturers who

identify the needs of customers and tailors to produce goods will
ingenuity to meet the marketing needs. Industrial entrepreneurs called
product-oriented entrepreneurs.

Corporate entrepreneur: Corporate entrepreneurs are innovative in

ganizing and managing a corporate body. They are called promoters They
have special skills in planning, organizing, developing and managing a
corporate enterprise.

Agricultural entrepreneurs : Agricultural entrepreneurs involve in

ancultural activities such as raising and marketing of crops, fertilizers
other inputs of agriculture. They are motivated to increase the
productivity of agriculture

II. Based on technology adopted

Technical entrepreneurs: Technical entrepreneurs as the name implies

worried more about production and quality of good produced. They not at
all bothered about marketing They improve the techniques of oduction.
They possess production skills. This is their greatest mength. They are
technically educated/experience

Non-technical entrepreneurs: Non-technical entrepreneurs are

macerned with the technical aspects of the product, which they are
dealing. They are concerned more about marketing rather than
production.

Professional entrepreneurs: A professional entrepreneur are those who

av interested in establishing an enterprise not with an idea to manage is
but to sell it after it is set up and starts functioning

IV. Based on motivation:

Pure entrepreneurs : Pure entrepreneurs are individuals and are

motivated by psychological and economic rewards. They undertake work
to attain personal satisfaction in work, ego or status

Induced entrepreneurs: Governments all over the world offer various

Incentives to induce the people to undertake entrepreneurial tasks such as
assistance, concessions, subsidies, and infrastructure facilities to start a
venture

Motivated entrepreneurs : Motivated entrepreneurs are new

entrepreneurs who are motivated by the desire for self-fulfillment. They
start ventures due to the possibility of producing and marketing new
products in the market

Spontaneous entrepreneurs: Spontaneous entrepreneurs are those

persons who possess natural talents. They are born and not made
entrepreneurs. They are very bold and take initiative to start the venture.

V. Based on development stage

First generation entrepreneurs: First generation those persons who

possess innovative skill. He is an innovator skill combines his skill and
technology to produce a good marketable product or service

Modern entrepreneurs: Modern entrepreneurs keenly watch the

changes in demand and start a venture to fulfill the current marker needs.
They always produce goods and services per the changing needs of the
time. They adopt changes very quickly.

Classical entrepreneurs: Classical entrepreneurship are who are

concerned more about customers as well as market. They take business as
an integral part of life. They normally start a venture of those persons
self-supporting nature.

2. Explain the factors influencing entrepreneurship.

The factors, which influence the emergence of entrepreneurship in

economy. For the purpose of analysis, these factors are grouped into

 Internal factors

 External factors

Internal factors: Internal factors consist of characteristics and behaviour

of an individual. They relate to the personality of a individual to become
an entrepreneur and contribute mush to the growth of entrepreneurship.
Internal factors are:

 Demographic factors

 Age

 Sex

 Order of birth

 Education

 Nationality

 Cultural background

 Personal factors

 Technical skills

 Managerial skills

 Entrepreneurial skills

 Leadership skills

 Personal values

 social factors

 Community

 Parental epitome

 Support of family

 Culture

 Personal qualities

 Need for success

 Risk-taking

 Desire for freedom

 Accepting of uncertainty

 Cultural factors

 Dynamism

 Collectivism

 Individualism

 Avoiding ambiguity

 Environmental factors

 Unemployment

 Resources

 Political science

 Opportunity for development

External factors: The external factors that influence a person to become

an entrepreneur consist of the following:

Social environment: It reflects the whole social, political and

psychological atmosphere within which entrepreneurs must include the
social value of a particular country at s particula clan structure, the
educational system and the like.

Cultural environment: It depends much upon the values aspirations of

the people Entrepreneur cannot act contrary. Moderation and values of
the people in the society. The environment tames entrepreneurship and its
extent

Technological environment: Science and technology contribute to the

development of entrepreneurship. They have given ample for the new
entrepreneurs Applied science contributed number devices, machines,
methods etc to make life worth living. Economic environment It relates to
the economic background individual which constitute the factors that
influence the size business and the ability to take risks Legal environment
Legal environment consult Legal Casio by various axis under the Indian
constitution. These he strictly followed by entrepreneurs from the stage of
the establishment of the concerns till their closure
Political environment: Political environment has great bearing
government policies, which are the major influencing face
entrepreneurship in a countryside Each political party in our a different
identifies

3. Explain the stages in the entrepreneurial process?

The Stages in the entrepreneurial process are:

Idea generation

The entrepreneur begins to wonder why there is not available: product or

service, why not improve certain things, how to generate income to cover
their expenses, etc.

Decision making and business planning

A critical point in the entrepreneurial process is deciding to start the

project. Be active and stay motivated are the main factors for
entrepreneur to start landing his idea.

Project creation

The project is conducted when the entrepreneur decides to seek and

obtain resources. Getting financiation main obstacles to start a business.
is difficult, and perhaps one of the main obstacles to start business

Management and control

The entrepreneur should strive to maintain revenue growth before

worrying about having a nice office. Managing a business is not easy, but
the experience that entrepreneurs acquire over time will surely eas the
handling of all resources.
4. Describe the problems faced by women entrepreneurs.

"Women entrepreneurs are those who generate business ideas, set

up an organization, combine the factors of production, operate the unit,
undertake risks and handle problems involved in operating a business
enterprise"

Problems faced by women entrepreneurs:

Problem of finance: The main challenge, which women entrepreneurs

face is getting the funding they need to start and grow their business.
Access to capital is a serious issue for minorities and women
entrepreneurs

Conflict between work and family: Another challenge that women

entrepreneurs, particularly, face is the conflict between work and family
Although this issue can, and does, arise for male entrepreneurs also, it is
especially acute for women because many child-rearing and family
responsibilities fall on them Being an entrepreneur can be a 24*7 (24)
hours a day, 7 days a week) commitment Running a successful business
often means finding a healthy balance between work and family lives.

Shortage of raw material: scarcity of raw materials is yet another

challenge that women entrepreneurs face. They suffer from higher prices
and lower discount rates

Stiff competition Women entrepreneurs face intense compotution for

their goods from organized sector and male entrepreneurs. This is berause
they not enough funds to spend on advertisement canvessing, and
publicising their products.

Limited mobility: In our country the mobility of women is highly

limited on account of various reasons. They cannot travel freely from one
place to another for business reasons. In order to set up an organisation an
entrepreneur has to get sanctions at very levels from various government
departments of all which required free mobility this is not possible in
India

Low literacy rate among them: Rate of literacy among women is very
low in India education is important for a person to be aware of latest
technology, business trends, market knowledge etc. Just create additional
problem for women entrepreneurs in sitting up and running business
enterprises.

Male dominated society: Male domination still the order of the day in
our country equality between sexes is only on paper, speeches,
constitution etc. In practice still women are considered weak in all
respects. Maine the society dominate the business world and men in the
families do not permit the females to star their Ventures.

Lack of motivation: Fear of failure is too much and men. This creates no
motivation in them. Hence lack of motivation among women
entrepreneurs is considered as another barrier which stands in the
development of a women entrepreneurs.

Low achievement need: Need for achievement is the most important

prerequisite for success in entrepreneurship. In India earth to achieve is
licking it acts as another Barry to succeed in the adventure

Low risk bearing capability: Generally women in India are confined to

the 4 walls of the house. They are less educated and that's economically
backward this reduces the risk bearing capability while running the
enterprise.

Discrimination in upbringing: Right from yearly childhood girls are

thought not to be aggressive or independent. Initially they depend upon
parents, later upon husbands and in old age upon sons. They are
discourages to move out of the family and take a date business

5. How are Self Help Group formed ?

Formation of SHGs

Generally, a Self Help Group consists of 12 to 20 persons. However, in

difficult areas like deserts, hills and areas with scattered and sparse
population and in case of minor irrigation and disabled persons, this
number may be from 5-20 The difficult areas have to be identified by the
State Level SGSY Committee and the above relaxation membership will
be permitted only in such areas. Generally all members of the group
should belong to families below the poverty line. However, if necessary a
maximum of 20% and exceptional cases, where essentially required, up to
a maximum of 30% of the members in a group may be taken from
families marginally above the poverty line living contiguously with BPI
families and if they are acceptable to be BPL members of the group. This
will help the families of occupational groups like agricultural laborers
marginal farmers and artisans marginally above the poverty fine, or who
may have been excluded from the BPL list to become members of the
Self Help Group.However, the APL members will not be eligible for the
subsidy under the scheme. The group shall not consist of more than one
member from the same family A person should not be a member of more
than one group. The BPL families actively participate in the management
and decision-making, which should not be ordinary be entirely in the
hands of APL families Further. APL members of the Self Help Group
shall not become office bearers (Group Leader. Assistant Group Leader
or Treasurer of the Group