RMD Sinhgad School of Engineering

Department of Computer Engineering

Entrepreneurship
Development
Entrepreneurship Development

Names of Students Roll No.

1. Harshada Narule BE_B_109

2. Nauman Aijaz BE_B_110
3. Payal Pawale BE_B_130
4. Sneha Punde BE_B_136
Entrepreneurship

 The word "entrepreneur" is derived from a French root

‘entreprendre’, meaning, "to undertake” and is commonly used to
describe an individual who organizes and operates a business or
businesses, taking on financial risk to do so.
 The term "entrepreneur" seems to have been introduced into
economic theory by Cantillon (1755)
 An entrepreneur is a person who starts an enterprise
 An entrepreneur is a person who starts an enterprise. He searches
for change and responds to it. Entrepreneur is someone who
perceives opportunity, organizes resources needed for exploiting
that opportunity and exploits it.
  Entrepreneurs use personal initiative, and engage in calculated
risk-taking, to create new business ventures by raising resources
to apply innovative new ideas that solve problems, meet
challenges, or satisfy the needs of a clearly defined market.“ 
 Four aspects of being an entrepreneur
today
1. Involves creation process.
2. Requires devotion of time and effort.
3. Involves rewards of being an entrepreneur.
4. Requires assumption of necessary risks
Characteristics of Entrepreneur
 be passionate about achieving their goals
 Have a spirit of adventure (in fact, the word "adventure" is
derived from the Latin word meaning "to venture")
 Have a strong need to achieve and seek personal accomplishment
 Be self-confident and self-reliant, be goal-oriented
 Be innovative, creative, and versatile
 Be persistent
 Be hardworking and energetic
 Have a positive attitude
 Be willing to take initiative
 Have a strong sense of commitment
Individual
Political Factors Economic Factors
factors

Factors Affecting
Entrepreneurship

Technological
Social Factors Ecological Factors
Factors
 Barriers to Entrepreneurial
ENVIORNMENTAL BARRIERS
 Raw material
 Labour
 Machinery
 Land and Building
 Infrastructure Requirements
 Financial Barriers
PERSONAL BARRIERS:
 Lack of Confidence
 Lack of dependability on others
 Lack of Motivation
 Lack of patience
 Inability to Dream Sense of embarrassment
SOCIETAL BARRIERS
 Pressure from community
 Pressure from Family
 Pressure from peer group
Classification of Entrepreneur

Classification of Entrepreneurs on the basis of

 Type of business
 Use of Technology
 Motivation
 Growth Stages in Development
 Others
Type of business:
 Business entrepreneur: Convert ideas into reality; deal with both
manufacturing and trading aspect of business.
 Trading entrepreneur: Trading means buying the finished product from
the producer and selling off to the customer directly or through a
retailer. He has to identify potential market, create demand through
extensive advertisement of his product and thus inspire people to buy.
 Industrial entrepreneur: Undertakes manufacturing activities only; new
product development etc (textile, electronics, etc)
 Corporate entrepreneur: Interested in management part of
organisation; exceptional organising, coordinating skills to manage a
corporate undertaking (Ambani, Tata families)
 Agricultural entrepreneur: Production and marketing of agricultural
inputs and outputs (Dairy, horticulture, forestry)
Use of Technology
 Technical entrepreneur: Production oriented, possesses innovative
skills in manufacturing, quality control etc.
 Non technical entrepreneur: Develops marketing, distribution
facilities and strategies
 Professional entrepreneur: Uses the proceeds from sale of one
business to start another one. Brimming with ideas to start new
ventures
Motivation
 Pure entrepreneur: Pure entrepreneur is one who may or may not
possess an aptitude for entrepreneurship but is tempted by the
monetary rewards or profits to be earned from the business venture.
He is status-conscious and wants recognition.
 Induced entrepreneur: Incentives, concessions, benefits offered by
government for entrepreneurs motivates him. Most of the
entrepreneurs who enter into business are induced entrepreneur as
various kinds of financial, technical and managerial facilities are
provided by the government to promote entrepreneurship.
 Motivated entrepreneur: Sense of achievement and fulfillment
motivate him
 Spontaneous entrepreneur: Born entrepreneurs with inborn traits of
confidence, vision, initiative. These entrepreneurs start their
business out of their natural talents.
Growth
 Growth entrepreneur: One who enters a sector with a high growth
rate; is a positive thinker.
 Super growth entrepreneur: One who enters a business and shows a
quick, steep and upward growth curve in terms of liquidity of funds,
profitability. Stages in Development
 First generation entrepreneur: Innovator, risk taker, among the firsts
in family to enter business
 Modern entrepreneur: One who undertakes those ventures which go
well along with the changing demand and adapt to change and
dynamic market
 Classical entrepreneur: He is stereotype entrepreneur whose aim is to
maximize his economic returns at a level consistent with survival of
the firm with or without the element of growth.
Others Area- Rural and Urban entrepreneur

 Gender/Age- Men and Women entrepreneur

 Scale- Small and Large scale entrepreneur
 Concept of Entrepreneurship

Enterprise Entrepreneurship Entrepreneur

Person Process of Action Object

Entrepreneurship
• Entrepreneurship can be described as a process of action an
entrepreneur undertakes to establish his enterprise.
• Entrepreneurship is a dynamic process of vision, change, and
creation. It requires an application of energy and passion towards the
creation and implementation of new ideas and creative solutions.
• Entrepreneur Entrepreneurship Person Process Organiser
Organisation Innovator Innovation Risk-bearer Risk-bearing capacity
Motivator Motivation Creator Creation Visualiser Vision Leader
Leadership Imitator Imitation
Role of Entrepreneurship in Economic Growth
Rate of economic progress of the country depend upon the rate of innovations
which in turn depend upon the distribution of entrepreneurial talent in the
population.
Entrepreneur initiate and sustain the process of economic development in
following ways
• Capital formation
• Improvement in per capita income
• Generation of Employment
• Balanced regional development
• Improvement in living standards
• Economic Independence
• Backward and Forward linkages
 Reasons for Entrepreneurship Development
• Increase in national production and productivity in different sectors : Indian entrepreneurs
should work to increase the national production in primary, secondary and tertiary sectors.
They should work to increase employment. They must be able to generate wealth from
both national and international markets. They should produce such goods and services
which can substitute the imports. They should give more effort for increasing export of
goods and services.
• Balanced regional development : Industrial setup in urban and semi-urban areas to the
migration of people from rural areas to big cities which has created pressure on the
Government to provide housing and other facilities to the people.In order to reduce this
imbalance, Government has provided facilities to encourage entrepreneurs to setup new
ventures in rural areas.
•  Re-investment of profit : The objective of re- investment of profit for the betterment of
the productivity and welfare of the community.
• Decentralization of economic power : The main drawback of large scale enterprises is the
centralisation of economic power. In order to achieve equal distribution of wealth and
balanced economic growth.
• Solving the problem of unemployment and under- employment : In large scale
industries, the problem of unemployment and underemployment is more. It is so due to
lack of capital and increase in labour force. The highly educated and technically
experienced peoples get dissatisfied and frustrated with their job. In order to solve this
socio-economic problem of India, Government has taken step towards the development
of such programmes. Besides setting up of large scale industries, small scale industries
are encouraged to setup, which can provide large number of employment with the same
amount capital investment, compared to the large scale industries.
• Harnessing youth vigour : When government cannot provide work to the educated and
highly qualified youths, to earn their livelihood, they turn up to violent activities. In
order to reduce their frustration, anger and disappointment, the development of
entrepreneurs is necessary in India. They provide self-employment work to the youth,
to earn their living. Thus, they are diverted from destructive activities by
entrepreneurial motivation to work for the country.
• Intra-preneurship is defined as entrepreneurship within an existing business set– up.
Intra-preneurship is corporate entrepreneurship.When a corporation indulges in
entrepreneurial activities, like diversification into new businesses, it is called intra-
preneurship.
EDP:Entrepreneur Development programme

• A programme designed to help an individual in strengthening his

entrepreneurial motive and in acquiring skills and capabilities
necessary for playing his entreneurial role effectively.
EDP gives
• General introduction to Entrepreneurship
• Motivation Training
• Management Skills
• Support System and Procedures
• Fundamentals of Project Feasibility Study
Objectives of EDP
• To formulate project
• To select Project/Product
• To analysis the environment.
• To acquire the basic managerial skills
• To understand the process and procedure of setting up of
enterprise.
• Enable to communicate clearly and effectively.
• Enable to take decisions.
 Pre-training phase of EDP
Pre-training phase of EDP consists of the following activities :
• Selection of entrepreneurs for the training programme.
• Arrangements of infrastructure are for the programme like selection of
place of training.
• Deciding guest faculty for the programme from education industry and
banks.
• Taking necessary steps for inauguration of programme.
• Formation of selection committee to select trainees from the programme.
• Making provision with regard to publicity and campaigning for the
programme.
Training Phase
The primary objective of training programme is to develop motivation and
skill or competency amongst the potential entrepreneurs.
The training phase of EDP will be so designed that it will answer the
following questions:
(a) Whether the attitude of the entrepreneur has been tuned towards the
proposed project or no.
(b) Whether the trainee has been motivated to accept entrepreneurship as a
career.
(c) How the trainee behaves like an entrepreneur.
(d) Whether the trainee has sufficient knowledge on resources and
technology or not.
(e) What kind of entrepreneurial traits he lacks and what steps should be
taken to set it.
Follow-up Phase:

 Follow-up phase of EDP has been termed as post-training phase. The

ultimate objective is to develop competent entrepreneurs.
Post-training phase is a review phase of training programme. It consists
of reviewing of work in the following manner:
Assessment to judge how far the objectives of the programme have
been achieved.
Monitoring and follow up of earlier phases reveals drawbacks in the
earlier phases and suggests guidelines for framing the future policy.
Infrastructural support, Counselling and assistance in establishing new
enterprise and in developing the existing units can be reviewed.
 Entrepreneurial Process

The process has four distinct phases:

(1) Identification and evaluation of the opportunity,
(2) Development of the business plan,
(3) Determination of the required resources,
(4) Management of the resulting enterprise.
1.Identify and Evaluate an Opportunity
 Opportunity Assesment
 Real and Perceived Value of Opportunity
 Risk and Returns of Opportunity
 Opportunity Vs Personal Skills
 Competitive Enviornment
 2. Business Plan
 Business plan is a complete description of a business, giving
information on the product or service, marketing and finances. The
plan brings your main ideas into focus, helps you work out what you
want to achieve and how you are going to do it.
An effective business plan can:
• Identify if there is a market for your product/service
• Determine your competition and identify advantages
• Estimate start-up costs, income, expenses and profit
• Show if your business idea is worth pursuing Strategic and
Operational Planning
3.Resources Required Determine the
resources needed
• Determine the existing resources
• Identify the resource gaps and available suppliers
• Develop access to needed resources.
4.Manage the Enterprise

• After resources are acquired, the entrepreneur must use

them to implement the business plan.
• The operational problems of the growing enterprise
must also be examined.
• Implementing a management style and structure
• Establishing a control system so that any problem areas
can be quickly identified and resolved.
Entrepreneur Process Opportunity
evaluation (investment prospectus)
• Company's plan • Budget
• Execution • Financing plan
•  Need/problem • Market research
• Solution • Marketing
• Competitive position  • Business development
• Team • Forecasting
• Risk / reward profile • Sales planning
• Strategy Target • R&D management
• customer Business model • Operations management
• Position • People management
• Milestones / company objectives • Process and infrastructure
• Operating plan Company timeline • Budgeting Financing
• Staffing plan
Purpose of Entrepreneurial
Plan/Business Plan
• Business Plan explains the idea behind the business and spells out
how the product or services will be produced or sold.
• Business plans sets specific objectives and describes how the
business expects to achieve them.
• Business plan describes the background and experience of the
people running the business.
Thank You!