UNIT I

Definition, Evolution of Entrepreneurs & Entrepreneurship,

Concept of Entrepreneurship & Intrapreneurship,
Characteristics and skills of Entrepreneurs, Functions and
Types of Entrepreneurs, Growth of entrepreneurship in India.
DEFINITION
 MEDIEVAL AGE
• During the Harappa civilizations around 2700 BC, there was an internal and external trade culture.
Due to this, most foreign countries recognize Indian entrepreneurial skills.
• Moreover, the increase in trade occurred during the era of Mughal rule. The popularity of Indian
products, arts, crafts, Vedic tools, foods, and much more attracted attention from different parts of
the world.
• Different countries like UK, France and Portugal expanded their colonies in different parts of the
world.
• However, a significant entrepreneurial change occurred when the East India Company started its
business from the Bay of Bengal and later occupied parts of Bengal. It indirectly linked the entire
Indian state into one business ecosystem.
• There were some major downsides to the colonial mindset of England. However, it also played
some good aspects in developing entrepreneurship in India.

• https://www.youtube.com/watch?v=FyW7CUl9KDc&ab_channel=KhanAcademy
 MODERN AND PRE-INDEPENDENCE

• The first cotton textile mill was revolutionized in 1854 by an Indian

entrepreneur, Kawasji Dover. It was one of India’s boldest steps in the
modern development of entrepreneurship development.
• Jamsetji Tata founded the company Tata Group in the year 1868. With the
foundation of the Tata Group, he has created a bar for entrepreneurship
development in India.
• 1874 Cotton Mill by JRD Tata, TISCO by Dorabji Tata, 1932 Tata Airlines,
Tata Steel Plant, and more were high-rate businesses in India.
• At the same time, it has also played a major role in various independence
initiatives.
 POST-INDEPENDENCE

• Prime Minister Nehru adopted the economic structure line of the Soviet
Union.
• It gave a major push to the New Industrial Policy of 1956. Similarly, this
policy liberalized the bar and standards set by the British government, which
were the ultimate impediment to industrial development.
• Economic reforms were carried out in the initial phase of governance. Also,
prominent economists adopted the Mahalanobis model, which primarily aims
to support entrepreneurs.
 THE ESSENTIAL TRAITS OF AN ENTREPRENEUR
1. Resilience: Successful Entrepreneurs are resilient and able to recover from setbacks. They possess the
capacity to persevere through difficulties and continue forward motion.

Example: Byju's, an Indian ed-tech startup, faced multiple challenges in its early years, including difficulty
securing funding and building a user base. However, the company remained resilient and is now valued at over
$16 billion.
2. Innovation: Entrepreneurs who can innovate and think outside the box can create unique products or
services that stand out in the market.

Example: Ola, an Indian ride-hailing platform, was founded in 2010 as an alternative to traditional taxis. The
company's innovative business model has helped it become one of India's most successful startups.
3. Customer Focus: Successful entrepreneurs are often customer-focused, understanding the needs and
preferences of their target audience.

Example: Zomato, an Indian food delivery platform, has built its business on providing customers with a
seamless and convenient experience. The company has expanded rapidly in recent years and is now worth more
than $5 billion.
 THE ESSENTIAL TRAITS OF AN ENTREPRENEUR

4. Risk-taking: Entrepreneurs who are willing to take risks and pursue bold ideas
can create new opportunities and disrupt established industries.
Example: Paytm, an Indian digital payments platform, was founded in 2010 when
digital payments in India were still in their infancy. The founders of the company
took a risk on a new and untested business model, which has paid off handsomely.
Paytm is now one of the most valuable startups in India.
5. Adaptability: Successful Entrepreneurs must be able to adapt to changing
circumstances and respond to new challenges.
Example: During the COVID-19 pandemic, PharmEasy, an Indian healthcare
startup, was able to pivot its business model to meet the growing demand for online
medical consultations and prescription delivery.
 INTRAPRENEUR

• A person within a large corporation who takes direct responsibility for turning
an idea into a profitable finished product through assertive risk-taking and
innovation.
• Intrapreneurs have entrepreneurial skills blended with managerial skills but
operate within the confines of an organization.
Name some companies started by Intrepreneurs.

• Google
• Yahoo
• MySpace
• Facebook
• YouTube
• LinkedIn
• eBay
 Characteristics

• Results driven
• Ambitious
• Creative
• Original
• Self Confident
• Risk Tolerant
• Persistent
• Influencing
• High Energy
• Action oriented
• Interpersonal
• Innovative
 INTRAPRENEURIAL ACTIVITY

• Spotting ways to improve service

• Save time, money, or make life easier
• Visualizing variations of current products/services
• Realizing new communication avenues with customers
• Enhancing the quality
• New ways to get the job done quicker or smarter
 IMPLEMENTING THE INTRAPRENEURSHIP CULTURE

• Encourage employees to be creative and to look for new ways to improve your current way
of doing business
• Grant intrapreneurs something akin to ownership rights in the internal enterprises they create
• Encourage company-wide involvement by insisting on truth and honesty in marketing and
marketplace feedback
• Treat entrepreneurial teams as profit centers rather than as cost centers
• Allow team members a variety of options in jobs, innovation efforts, alliances, and
exchanges
• Encourage employees to develop through training programs
 What is an Entrepreneur?
• An entrepreneur is someone who sets off to
build their own business from scratch.
What is an Intrapreneur?
• An intrapreneur is an employee responsible
for innovating change at an existing
company. A sort of entrepreneur within the
business.
Trading Entrepreneur
• A person who undertakes business-related activities. These types of entrepreneurs usually buy
finished products in bulk from manufacturers at some discount. They then sell these products
directly or with the help of retailers or vendors with profits.
Manufacturing Entrepreneur
• Manufacturing entrepreneurs transform raw materials into finished products according to the
customer's needs.
• Agricultural Entrepreneur  who primarily do agricultural work.
• Technical Entrepreneur  who use to start and continue industries primarily based on science
and technology
• Non-Technical Entrepreneur non-tech entrepreneurs are those who work for innovations
using traditional methods. They create better relationships and meet customer needs.
• Private Entrepreneur  A private entrepreneur is the only person who plays the sole
proprietor role for a business venture and bears the risk associated with it.
• State Entrepreneur  the government is the sole owner of the enterprise and will bear all the
profits and losses involved with it.
• Joint Entrepreneurs  When a business or industrial undertaking is established and operated
jointly by the private entrepreneur and the government, it is called joint
entrepreneurship. However, the sharing percentages generally depend on the type of business
and the agreement between the two parties.
• Men Entrepreneurs  When any business venture is formed, managed and operated by men,
these men are referred to as men entrepreneurs.
• Women Entrepreneurs  When any business venture is formed, managed and operated by
women, these women are referred to as women entrepreneurs. Besides, if women have a
minimum 51 percent share of the capital, they can also be known as women entrepreneurs.
• Small-Scale Entrepreneur If an entrepreneur has invested up to a maximum of 1 crore in
starting an enterprise, including plant and machinery, such entrepreneur is called Small Scale
Entrepreneur.
• Medium-Scale Entrepreneur  If an entrepreneur has invested a minimum of 1 crore to a
maximum of 5 crores in starting an enterprise, including plant and machinery, then such
entrepreneur is called Medium Scale Entrepreneur.
• Large-Scale Entrepreneur If an entrepreneur has invested more than 5 crores in starting an
enterprise, including plant and machinery, such an entrepreneur is called a large-scale
entrepreneur. This includes any investment above 5 crores.
• Innovative entrepreneurs, also known as innovators, are the type of entrepreneurs who usually
come to the market with new ideas or innovations. Such entrepreneurs always try to innovate
and invest their time and money in research and development.
• Imitative entrepreneurs or imitating entrepreneurs are often called 'copy cats'. This is
because these entrepreneurs mainly follow and adopt the innovative entrepreneurs' existing
successful enterprise system.
• Fabian entrepreneurs are defined as those types of entrepreneurs who generally do not
seek to implement changes in their enterprise techniques. They are very careful in applying
any approach and cautious in exercising any change.
• Drone entrepreneurs are defined as entrepreneurs who do not like to adopt any changes in
their enterprise techniques. They strictly follow their traditional strategies or methods for
development, production or marketing.
FUNCTIONS OF ENTREPRENEURS
 PROGRAMS LAUNCHED AS PART OF THE STARTUP INDIA
INITIATIVE

1. Startup India Action Plan: On January 16, 2016, a Startup India Action
Plan was unveiled. The Action Plan comprises 19 action items spanning
across areas such as "simplification and handholding", "funding support
and incentives" and "industry-academia partnership and incubation".
2. Fund of Funds for Startups (FFS) Scheme: To meet the funding needs
of startups, the government established FFS with a corpus of ₹10,000
crore. The monitoring agency is DPIIT, and the operating agency is the
Small Industries Development Bank of India (SIDBI).
 PROGRAMS LAUNCHED AS PART OF THE STARTUP INDIA
INITIATIVE

3. Credit Guarantee Scheme for Startups (CGSS): The government has set up the Credit
Guarantee Scheme for Startups to provide credit guarantees on loans made to DPIIT-
recognized startups by Scheduled Commercial Banks, Non-Banking Financial Companies
(NBFCs), and Venture Debt Funds (VDFs) under SEBI-registered Alternative Investment
Funds. The purpose of CGSS is to provide credit guarantees up to a certain limit against loans
extended by member institutions (MIs) to finance eligible borrowers, namely DPIIT-
recognized startups.

4. Regulatory Reforms: Since 2016, the government has implemented over 50 regulatory
reforms to improve the ease of doing business, the ease of raising capital, and the compliance
burden on the startup ecosystem.
 PROGRAMS LAUNCHED AS PART OF THE STARTUP
INDIA INITIATIVE

5. Ease of Procurement: To facilitate procurement, central ministries and departments have

been directed to relax the prior turnover and prior experience in public procurement
requirements for all DPIIT-recognized startups, subject to meeting quality and technical
specifications. Additionally, the Government e-Marketplace (GeM) Startup Runway has been
created, which is a dedicated section for startups to sell products and services directly to the
government.
 ACTIVITY

• Share the life experience and stages of entrepreneur and Entrepreneur of

your own
• Start up initiative with sequence of steps in detail