Business Planning

And
Entrepreneurship
Management
ASSISTANT PROFESSOR
MS. SWATI PATIL
Example of Tilak mehta

https://www.youtube.com/watch?
v=al9UoAuKU7M
 The Secret of getting ahead
is getting Started.

- MARK TWAIN
 Unit 1

FOUNDATION OF ENTREPRENEURSHIP DEVELOPMENT

 ENTREPRENEUR

Definition By Peter Drucker >>>

OPPORTUNITY
 ENTREPRENEUR
CHARACTERISTICS QUALITIES

▪Creative ▪ Creative Thinking

▪ Innovators ▪ Inter Personal skills

▪ Dynamic ▪ Leadership

▪ Leadership ▪ Confidence

▪ Team Building ▪ Technical knowledge

▪ Problem Solving ▪ Flexibility

▪ Risk Taking & Decision Making Ability ▪ Decisiveness

▪ Motivation & Achievement ▪ Motivator

▪ Ability to mobilise resources ▪ Ability to Marshal Resources

 NEED OF ENTREPRENEURSHIP
DEVELOPMENT
⮚Boost Economic Activities (Creating Employment opportunity, Developing backward areas & Improving
standard of Living)

⮚Capital Formation ( Utilisation of natural resources & the creator of Wealth)

⮚ Provides Balanced Development (Balanced Regional Development- Urban & Rural)

⮚Contributes to Economic Development (Optimum use of resources)

⮚Improved standard of living (Industrial Activities distribute more money)

⮚Establish New enterprise (Promising Business opportunity)

⮚Ensures higher investment (Recycle profits into higher investments)

⮚Earn Foreign Exchange(Specialise in Overseas transactions)

⮚Generates employments (Jobs Offers directly or indirectly)

 IMPORTANCE AND SIGNIFICANCE OF
GROWTH OF ENTREPRENEURIAL ACTIVITIES

⮚Capital Formation

⮚Employment Generation

⮚Balanced Regional Development

⮚Increasing the Export Trade

⮚Improvement in the standard of living

⮚Consumer Benefit

⮚Government Revenue

⮚Reduction in Income Inequality

⮚Economic Independence
ENTREPRENEURSHIP
 CONCEPT & MEANING OF
ENTREPRENEURSHIP

ENTREPRENEUR ENTREPRENEURSHIP
Person Process
Organiser Organisation
Creator Creation
Leader Leadership
Motivator Motivation
Communicator Communication
 BARRIERS TO
ENTREPRENEURSHIP
❖Environmental Barriers
1.Raw Material 2. Labour 3. Machinery 4. Land & building 5. Financial barriers

❖Personal Barriers
1.Lack of Confidence 2. Lack of Motivation 3. Lack of patience 4. Lack of dependability
on others
 External Influences on
Entrepreneurship Development
Social Factors

•Legitimacy Of Entrepreneurship

•Social Mobility

•Security

Cultural Factors (Customary practices & Beliefs)

•Traditionally Engaged Business

•Business School Students

•Consumerism

•Local Community
 External Influences on
Entrepreneurship Development
Political Factors
•Unstable Political Conditions

•Government support to Economic development

•Taxes

•Availability of infrastructure & Utilities

Economic Factors

•Purchasing Power

•Economic Slow Down

 External Influences on
Entrepreneurship Development
Personal Factors
•Hard work & Persistence

•Ability to minimize risk

•Business & Contingency Planning

•NEED-orientation
Role of Culture in
Entrepreneurship Development
Vision, Values, Norms and Traits are conducive for development of the economy

Culture of a Business

Business Ethics

Productivity culture

Total Quality Culture

Organizations Culture
 THEORIES OF
ENTREPRENEURSHIP
 JOSEPH SCHUMPETER'S
INNOVATION THEORY
•Creative activity of doing things
•An Entrepreneur is the one who innovates.
•Motivated and talented class of people
•Potentially profitable opportunity & try to exploit it
•Innovation Involves Problem Solving & Entrepreneur is a problem solver.
•Distinction between Innovation & Invention
 JOSEPH SCHUMPETER'S
INNOVATION THEORY
•Introduction of a New Product or Introduction of new quality in existing product
•New Method of Production
•New Market
•New source of supply of Raw Material
•Monopoly position or the breaking up
•Entrepreneur Is a Change Agent
•Entrepreneurial function in Economic Development
 CRITICISM OF JOSEPH SCHUMPETER’S
THEORY
•Vigorous type of Entrepreneurs (limited Resources leads to limited results)

•Relevant to developing countries (Agrarian Economy into an Industrial Economy)

•Emphasis on Innovative functions ( Ignores Organising & Risk Taking Aspects)

•Incomplete Explanation (Individual is an Entrepreneur only when he carries out new

Innovation)
 THEORY OF HIGH ACHIEVEMENT
BY MCCLELLAND
⮚N-Ach (Need for Achievement) ⮚Take calculated risk and want to win
⮚Need for Power
⮚Need for Affiliation ⮚Not motivated by Money

⮚Critical to Economic Development

⮚Developed by David McClelland
⮚Individual’s need for achievement refers to the
need for personal Accomplishment
⮚Drive to excel
⮚Strive for success
⮚Achieve a set of standards
⮚Inner Spirit
⮚Contrasted with Gamblers
⮚McClelland found achievement motivation was lower
among underdeveloped countries
⮚Ambitions build up achievement pressure in the
individual
 THEORY OF HIGH ACHIEVEMENT
BY MCCLELLAND
PSYCHOLOGICAL FACTORS CHARACTERISTICS & ATTITUDES
•Self Study, Goal Setting & interpersonal Support •Achievement important than material & financial
rewards
•Personal Responsibility
•Personal satisfaction via task or aims
•Interest in situations of moderate risk
•Security not prime nor is status
•Future Possibilities
•Feedback is essential
•Task performance
•Constantly seek improvements
•Energetic
•Opportunity to set & achieve goals
•Organisational skill
 X-EFFICIENCY THEORY BY
LEIBENSTEIN
⮚Harvey Leibenstein
⮚Gap filling Theory
⮚Degree of inefficiency on the use of resources
⮚Given set of inputs –productive potential identified
⮚Resources are used are used in the wrong way or wasted
 THEORY OF PROFIT BY KNIGHT
⮚F.H. Knight:- Risk, Uncertainty & Profit, Book
⮚Risk Bearing & dealing with Uncertainty
Features:
• Pure Profit
• Situation of Uncertainty
• Risk-bearing capability
• Identification of Socio-Economic & psychological factors
• Use of Consolidation technique
 THEORY OF SOCIAL CHANGE
BY EVERETT HAGEN
⮚Economic Development –As a process of technological change

⮚Entrepreneur as a creative problem solver

⮚Withdrawal of Status
Four Types of Events
THEORY OF SOCIAL CHANGE
BY EVERETT HAGEN
Four Different Types of Personality
 Thank You
Date: 27-07-2023