https://www.youtube.com/watch?

v=zRLQwiXSRZk (ICICI)
https://www.youtube.com/watch?v=KzLpryLUYsk (Indra Nooyi)
https://www.youtube.com/watch?v=H6UGSmbccM8

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

MASTER OF BUSINESS ADMINISTRATION (MBA)
Entrepreneurship and Small Business Management Course Code : MS
207 L-4 Credits - 4
Unit I
Entrepreneurship: Concept and Definitions; Entrepreneurship and
Economic Development;
Classification and Types of Entrepreneurs; Entrepreneurial
Competencies; Factor Affecting
Entrepreneurial Growth Economic, Non-Economic Factors; EDP
Programmes; Entrepreneurial Training; Traits/Qualities of an
Entrepreneurs; Entrepreneur; Manager Vs. Entrepreneur. (14 Hours)
Unit II
Opportunity / Identification and Product Selection: Entrepreneurial
Opportunity Search and
Identification; Criteria to Select a Product; Conducting Feasibility
Studies; Project Finalization; Sources of Information. (14 Hours)
Unit III
Small Enterprises and Enterprise Launching Formalities : Definition
of Small Scale; Rationale;
Objective; Scope; Role of SME in Economic Development of India;
SME; Registration; NOC from
Pollution Board; Machinery and Equipment Selection; Project Report
Preparation; Specimen of Project Report; Project Planning and
Scheduling using Networking Techniques of PERT / CPM; Methods of
Project Appraisal. (14 Hours)
Unit IV
Role of Support Institutions and Management of Small Business :
Director of Industries; DIC;
SIDO; SIDBI; Small Industries Development Corporation (SIDC); SISI;
NSIC; NISBUED; State
Financial Corporation SFC; Marketing Management; Production
Management; Finance Management;

Human Resource Management; Export Marketing; Case Studies-At

least 4 (four) in whole course.
(14 Hours)
Text Books
1. Kuratko, D.F. & Hodgetts, R.M. ( 2009). Entrepreneurship: Theory,
Process and Practice. Thomson
Press
2. Charantimath, P. (2009). Entrepreneurship Development: Small
Business Enterprises. Pearson
References Books
1. Desai, Vasant (2009). Small-Scale Industries and
Entrepreneurship. Himalaya Publishing House,

Entrepreneurship and Small Business Development

Subject Code: MS-207

Entrepreneurship: Concept & Nature

The word entrepreneur is derived from a French word that was originally used to refer
to leaders of military expeditions.
Early entrepreneurs provide men and materials needed by feudal lords to wage wars.
The term entrepreneur for a person who bears uncertainty and risk.
Entrepreneurship is meant the function of seeking investment and production
opportunity, organizing an enterprise to undertake a new production process, raising
capital, hiring labour,arranging the supply of raw materials, finding site, introducing a
new technique, discovering new resources of raw materials and selecting top
managers for day to day operations of the enterprise.

An Entrepreneur as a Person who unites all the factors of production Land, Labor,
Capital etc and earn profits after making payments for these factor of productions.

Entrepreneur: Refers to the person who set up his business

Entrepreneurship: process of setting up own business unit.

Entrepreneurship means the functions of seeking Investment and production
opportunity organizing an enterprise to undertake a

New production process

Raising capital
Hiring labour

Arranging the supply of raw-materials

Funding sites
Introducing new technology
Discovery new source of raw materials
Selecting top managers.

Enterprise: it is the outcome of entrepreneurship.

According to Joseph A. Schumpeter-An Entrepreneur as organizer or coordinator
or as Innovator Introduction of a new product
Introduction of a new method of production
Opening of a new market
Discovery of a new source of supply of raw-materials
Carryout of the new firm of organization of any Industry.
An Entrepreneur should be
Hard working
Desire for high achievement
Highly optimistic
Independence
Good organizer
Innovative
Team spirit

WHO IS AN ENTREPRENUER?
He is a person who develops and owns his own enterprise
He is a moderate risk taker and works under uncertainty for achieving the goal.
He is innovative
He peruses the deviant pursuits
Reflects strong urge to be independent.
Persistently tries to do something better.
Dissatisfied with routine activities.
Prepared to withstand the hard life
Determined but patient
Exhibits sense of leadership
Also exhibits sense of competitiveness
Takes personals responsibility
Oriented towards the future.
Tends to persist in the face to adversity

Convert a situation into opportunity.

The characteristics of an unique entrepreneur are :
Need for achievement

High need for power

Independence
Propensity to take risk
Personal modernity
Support
Entrepreneurship is not the proprietary quality of any caste or
community. Many may possess the qualities, but are baffled with too
many questions why, what and how to get about
Starting new venture.

WHAT Information Needed?

- Prospects and scope of a particular industry or business

- Technical details
- Quantum of investment etc.
- Information about different field about the particular trade
- Purpose of being the business
- Responsibilities towards customers, employees, society etc.
- For marketing of your product be aware of strength and weakness of
your product.
- Factors offering market demand
- Cost and model of distribution etc.
- Manufacturing process
- Plant and machinery
- Availability of new materials
- Production costs
- Manpower
- Fund requirement of work

Nature of Entrepreneurship
Economic Activity: Entrepreneurship involves creation of value
and wealth leading to economic activity.
Creative Activity: He recognizes the need to change and involves
in innovation.

 Dynamic Process: Flexibility is the stick of success for

entrepreneurship.
Purposeful activity
Risk Element:
Organization Building:
Gap Filling Function:

Entrepreneurial Functions:
Managerial Function

Planning
Organizing
Staffing
Directing
Controlling

Promotional Functions
Identification and Selecting of Business Ideas
Preparation of Business Plan or Project Report
Requirement for Finance

Commercial Functions
Production/Manufacturing
Marketing
Accounting
Accounting is the art of recording, classifying and summarizing in a
significant manner and, in terms of money,trnsactions and events which are,
in part at least of financial character and interpreting the result thereof. Thus
accounting involves a process consisting of the following five stages:

Recording the Transactions

Classifying the Transactions
Summarizing the Transactions
Preparing the Final Accounts
Analyzing and Interpreting the Results

TYPES OF ENTREPRENEURS
Clarence Danhop (1949)-On the basis of study of American Agriculture, he
classified entrepreneurs into four types:

Innovating EntrepreneursInnovating entrepreneurs are one who introduce new goods, inaugurate
new method of production, discover new market and recognize the
enterprise.

Imitative EntrepreneursImitative entrepreneurs do not innovate the changes themselves, they

only imitate techniques and technology innovated by others.

Fabian EntrepreneursFabian entrepreneurs are characterized by very great caution and skepticism
in experimenting any change in their enterprise. They imitate only when it
becomes perfectly clear that to do so would result in a loss of the relative
position in the enterprise.

Drone Entrepreneurs-

These are characterized by a refusal to adopt opportunities to make changes

in production. Such entrepreneurs may even suffer from losses but they are
not ready to make changes in their existing production methods.

ENTRPRENEURS AND ECONOMIC DEVELOPMENT

Economic development, achieved largely through productivity

growth, is very important to both developed and developing nations.

However, even though we know that higher productivity leads to

improved economic outcomes (for example, higher income, more
choices to the consumers, better quality products,etc.), there has been
no consensus among researchers about either the desired path of
development or the role of state in economic development.

The role of the state in economic development began to change

dramatically with the advent of the Industrial Revolution.
In the West, the resulting industrialization and economic development
were based on the establishment of individual property rights that
encouraged the growth of private capital.

Competition and individual enterprise thrive in this environment

because individuals pursue their self-interest of survival and wealth
accumulation.

 The instinct to survive under competitive pressures yields innovation

and productivity increases, which eventually lead to both increased
profits for business and lower prices to consumers.

Formation of Capital
Optimum Utilization of Resources
Generation of Employment
Improvement in Standard of living of people
Balanced Regional Development
Increase in per Capita Income:
National Self-reliance:
Equitable Distribution Economic Power:
Formation of Capital:
Entrepreneurs by placing profitable business proposition attract
investment to ensure private participation in the industrialization
process.
The otherwise idle savings are channelized for investment in business
ventures which in turn provides return. Again the savings are invested
giving a multiplier effect to the process of capital formation.

Balanced Regional Development:

The entrepreneurs always look for opportunities in the environment.
They capitalize on the opportunities of governmental concessions,
subsidies and facilities to set up their enterprises in undeveloped
areas.
The setting up of still plant at Tata nagar, Reliance Petrochemicals at
Jamnagar (Gujarat) have resulted in the development of Good
Township and peripheral regional development. Thus entrepreneurs
reduce the imbalances and disparities in development among regions.

General Employment:
This is the real charm of being an entrepreneur. They are not the job
seekers but job creators and job providers. With the globalization
process the government jobs are shrinking leaving many unemployed.
In the circumstances, the entrepreneurs and their enterprises are the
only hope and source of direct and indirect employment generation.
Employment is generated directly by the requirement of the large
enterprises and indirectly by ancilliariation and consequential
development activities.

Improvement in Standard of Living of people

Entrepreneurial initiative through employment generation leads to
increase in income and purchasing power which is spent on
consumption expenditure. Increased demand for goods and services
boost up industrial activity.
Large scale production will result in economies of scale and low cost
of production. Modern concept of marketing involves creating a
demand and then filling it.
New innovative and varying quality products at most competitive
prices making common mans life smoother, easier and comfortable
are the contribution of entrepreneurial initiative.

Increase in per Capita Income:

Entrepreneurs convert the latent and idle resources like land, labor and
capital into goods and services resulting in increase in the national
income and wealth of a nation.
The increase in national income is the indication of increase in net
national product and per capita income of the country.

National Self-reliance:
Entrepreneurs are the corner stores of national self-reliance. They help
to manufacture indigenous substitutes to imported products which
reduce the dependence on foreign countries.

 There is also a possibility of exporting goods and services to earn

foreign exchange for the country. Hence, the import substitution and
export promotion ensure economic independence and the country
becomes self-reliance.

Equitable Distribution Economic Power:

The modern world is dominated by economic power. Economic power
is the natural outcome of industrial and business activity. Industrial
development may lead to concentration of economic power in few
hands which results in the growth of monopolies.
The increasing number of entrepreneurs helps in dispersal of
economic power into the hands of many efficient managers of new
enterprises. Hence setting up of a large number of enterprises helps in
weakening the evil effects of monopolies.
Thus, the entrepreneurs are key to the creation of new enterprises that
energies the economy and rejuvenate the established enterprises that
make up the economic structure.

'Nobody wants to start an industry in India'

We are one of the very few emerging economies in the world with a current
account deficit. That is because nobody wants to start an industry in India. You

can't get permissions, and once you get it, politicians interfere all the time, says
Dilip Kapur, Founder & President, Hidesign.
Kapur started his business with just Rs 25,000 in 1978. Today, his leather
business is an international brand worth more than Rs 150 crore (Rs 1.5 billion)
with 84 exclusive showrooms (72 in India and 12 international) and a distribution
network of over 2,000 stores in 23 countries. More than 1,500 people work for
Hidesign.
After doing his Masters in Economics and PhD in International Affairs from the
prestigious Princeton University, Kapur started designing leather bags as a
hobby and then turned his passion into a successful business enterprise.
Because we started off as rebels, we were able to create more innovative
things. Whether it is in music, literature or even in business, rebels have
innovated, says Kapur.
In an interview with Shobha Warrier at Hidesigns Pondicherry factory, Dilip
Kapur talks about the trials and tribulations of being a manufacturer in India, the
current economic scenario and prospects for the Indian economy.
How do you assess the current Indian and global economic situation?
Today the global and Indian economy are connected. But as India is such a huge
country it does not necessarily mean we should be dragged down by the global
economy. But blaming the global economy for our economic problems is rubbish.
We should blame ourselves.
That is why I feel disappointed. Our current account deficit is massive. We are
one of the very few emerging economies in the world that has a current account
deficit.
That is because nobody wants to start an industry in India. You can't get
permissions, and once you get it, politicians interfere all the time. This will remain
a major issue.
Some economists say that India can be the services capital of the world.
Can you ignore manufacturing and rely only on services to grow?
We are such a huge country so how can we go on living servicing other people?
At this stage of our economy, industry is very critical.

As India becomes less competitive, it will not be attractive for services. Many
American companies have started doing back end work there itself. Also, you
don't need so many people to run the services except a few cases like the hotel
industry. Do you feel manufacturing has to be the backbone of an
economy?
I have nothing against services. How will you do services when you don't have
good infrastructure like roads, power and connectivity?
As a manufacturer, how have the last few years been for you?
The consumer in India is full of optimism and confident of a better tomorrow. He
is reluctant to shop. So, for people like us who deal directly with consumers, do
not see a problem. Hidesign has only been growing.
As an industrialist, I don't see any of the ups and downs the nation experiences.
Our consumers are only increasing. I will give you the numbers and then, you will
see there is no recession in India. In 2013, we have registered 39 period growth
compared to the same period in 2012. Our growth at Shoppers Stop is 69%. Do
you call this recession time? (laughs)
We hear that Indian consumers are crying about inflation, and you say,
Indian consumers are on a buying spree. Is it not because your target
consumer is from the upper strata of society? Does not your growth
reinforce the theory that the rich are getting richer and the poor getting
poorer?
Quite possible. Also, the aspiration levels of the upper middle class also are
increasing. Ten years ago, our customers were actors, CEOs and foreigners
living in India.
Today, the upper middle class in India also buys our bags, and not just the upper
class. If a woman is single and earns Rs 30,000 a month, she still aspires for a
Rs 5000 bag! That is why I said the aspiration levels have changed.

Life in turmoil for 1,500 Kingfisher

Airlines employees.

"Why are you calling me? What is there to know about a Kingfisher Airline
employee?" snaps Sujata Nair. She is one of the nearly 1,500 people still on the
Kingfisher Airlines (KFA) payroll who are desperately clinging to the hope that
the "king of good times" will eventually pay them their dues.
After relenting to talk about life after KFA, she talks of an incident, "My father
underwent dialysis. It was only then that we learnt KFA had stopped paying our
medical insurance premiums," she says. "I had to borrow from friends to pay the
hospital bills."

The line appearing on the homepage of KFA's website (flykingfisher.com) seems

to sum up the life of Nair and the airline's other employees: "We have suspended
all future bookings till further notice". At the end of 2012, Vijay Mallya's airline
crumpled under a Rs 7,000-crore debt burden. Many employees, who have
pending wages of Rs 25-50 lakh each, hope that the court or the government will
direct Mallya to pay them because "he has the money".
Over 75 per cent of KFA employees have found jobs after accepting huge pay cuts.
"Seniors took a hit of 40-50 per cent. Even people with salaries of Rs 25,000 had
to accept jobs for Rs 12,000," says Vikas Sharma, who claims to be better off
because he lives in a joint family.

Mr.Rana Kapoor (President)

The Associated
Chambers
of
Commerce
and
Industry
of
India (ASSOCHAM) is one of the apex trade associations of India. The

organization represents the interests of trade and commerce in India, and

acts as an interface between industry, government and other relevant
stakeholders on policy issues and initiatives. The goal of this organization
is to promote both domestic and international trade, and reduce trade
barriers while fostering conducive environment for the growth of trade
and industry of India.
Early introduction of Goods and Services Tax and Direct Taxes Code will
help revive the sagging economic growth which declined to a decade low
of 5 per cent last fiscal, newly elected Assocham President Rana Kapoor
said.
The vision for a sustainable and equitable growth model can be
actualized by directing our collective efforts towards achieving:
Economic Security of India as also the underlying issues of Livelihood
Security, Energy Security, Ecological Security and National Security
which form part of Pragatisheel Bharat ki Paanch Chunautiyaan.To
address these five important challenges, there is a need for concerned
collaborative approach by the Government in partnership with private
entrepreneurs to drive economic transformation to address Indias social
and economic challenges.

LIVELIHOOD SECURITY-Broad-basing the benefits of economic

growth; ensuring basic livelihood facilities such as education, food,
health and employment to the citizens of India.
ECONOMIC SECURITY-Opening growth avenues by slashing subsidies
decontrol of petroleum prices, GST and DTC implementation, attracting
capital flows etc.
ENERGY SECURITY-Intervening with timely reformist measures
needed to ensure fuel linkages, price decontrol, building
alternative/sustainable sources of energy etc.
ECOLOGICAL SECURITY-Achieving sustainable growth
implementing action plans and fast-track clearance of key projects.

by

NATIONAL SECURITY-Modernizing Indias air, land and sea defence

facilities-an issue of prime importance for India considering the geopolitical constraints.

FACTORS AFFECTING ENTREPRENEURIAL GROWTH

1. ECONOMIC FACTORS
Lack of adequate overhead facilities:
Profitable innovations require basic facilities like transportation,
communication power supply etc. They reduce cost of production and
increase profit.
Non availability of capital
Inventions are capital oriented. In less developed countries most capital
equipment have to be imported which involves foreign exchange which
acts as a difficult problem.
Great risk
Risk is high in case of less developed countries as there is lack of reliable
information, markets for good and services is small etc.

 Non availability of labor and skills

Though there is abundant labor supply there is generally scarcity of
skills.
2. Non-Economic Factors
Social Mobility:
It involves the degree of mobility, both social and geographical, and
the nature of mobility channels within a system.
The opinion that the social mobility is crucial for entrepreneurial
emergence is not unanimous
Some hold the view that a high degree of mobility is conducive to
entrepreneurship.

Marginality: Social marginality is the designation of a person or group

as peripheral to the main group or groups of society; the status of being
part insider and at the same time part outsider in a society or social
group.
A group of scholars hold a strong view that social marginality also
promotes entrepreneurship.
They believe that individuals or group on the perimeter of a given
social system or between two social systems provide the personnel
to assume the entrepreneurial roles.
They may be drawn from religious, cultural, ethnic, or migrant,
minority groups, and their marginal social position is generally
believed to have psychological effects which make
entrepreneurship particularly attractive for them.
Psychological factors:
Need Achievement-To the best of our knowledge, the best known
of primarily psychological theories is David McClellands (1961)
theory of need achievement.

 According to David McClelland, a constellation of personality

characteristics which are indicative of high need achievement is
the major determinant of entrepreneurship development.
Therefore, if the average level of need achievement in a society is
relatively high, one would expect a relatively high amount of
entrepreneurship development in that society.

INFLUENCING ENTERPRENURESHIP
The emergence of entrepreneurs in a society depends upon closely
interlinked social, religious, cultural, psychological, and political and
economic factors.
FAMILY TRADITION:
Individuals who for some reason, initiate, establish maintain and expand
new enterprises generate entrepreneurship in society. It is observed that
entrepreneurs grow in the tradition of their families and society and
accept certain values and norms from these sources.
RELIGIOUS, SOCIAL AND CULTURAL FACTORS:
Religious, social and cultural factors also influence the individual taking
up an entrepreneurial career, in some countries there is religious and
cultural belief that high profit is unethical. This type of belief inhibits
growth of entrepreneurship.
PSYCHOLOGICAL FACTORS:
The psychological factors like high need for achievement, determination
of unique accomplishment, self confidence, creativity, vision, leadership
etc, promote entrepreneurship among individuals. On the other hand
psychological factors like security, conformity and compliance, need
for affiliation etc restrict promotion of entrepreneurship.
POLITICAL FACTORS:

The political and also the political stability of country influence the
growth of entrepreneurship. The political system, which promotes free
market, individual freedom and private enterprise, will promote
entrepreneurship.
ECONOMIC POLICIES:
The economic policies of the government and other financial institutions
and the opportunities available in a society as a result of such policies
play a crucial role in exerting direct influence on entrepreneurship. In
view of the haphazard development of economic zones, Government is
encouraging the entrepreneurs to establish their business in backward and
tribal areas. This is primarily to arrest the migration of people from the
villages to cities and to create employment opportunities locally.
Government is promoting such development by giving incentives like tax
holidays (both sales and income), subsidized power tariff, raw materials,
transportation cost etc.

Difference between an Entrepreneur and a Manager

Qualities for an Entrepreneur
Disciplined
These individuals are focused on making their businesses work, and
eliminate any hindrances or distractions to their goals. They have
overarching strategies and outline the tactics to accomplish them.
Successful entrepreneurs are disciplined enough to take steps every
day toward the achievement of their objectives.
2. Confidence
The entrepreneur does not ask questions about whether they can
succeed or whether they are worthy of success. They are confident
with the knowledge that they will make their businesses succeed.
They exude that confidence in everything they do.
3. Open Minded

 Entrepreneurs realize that every event and situation is a business

opportunity. Ideas are constantly being generated about workflows
and efficiency, people skills and potential new businesses. They have
the ability to look at everything around them and focus it toward their
goals.
4. Self Starter
Entrepreneurs know that if something needs to be done, they should
start it themselves. They set the parameters and make sure that
projects follow that path. They are proactive, not waiting for someone
to give them permission.
5. Competitive
Many companies are formed because an entrepreneur knows that they
can do a job better than another. They need to win at the sports they
play and need to win at the businesses that they create. An
entrepreneur will highlight their own companys track record of
success.
6. Creativity
One facet of creativity is being able to make connections between
seemingly unrelated events or situations. Entrepreneurs often come up
with solutions which are the synthesis of other items. They will
repurpose products to market them to new industries.
7. Determination
Entrepreneurs are not thwarted by their defeats. They look at defeat as
an opportunity for success. They are determined to make all of their
endeavors succeed, so will try and try again until it does. Successful
entrepreneurs do not believe that something cannot be done.
8. Strong people skills
The entrepreneur has strong communication skills to sell the product
and motivate employees. Most successful entrepreneurs know how to
motivate their employees so the business grows overall. They are very

good at highlighting the benefits of any situation and coaching others

to their success.
9. Strong work ethics
The successful entrepreneur will often be the first person to arrive at
the office and the last one to leave. They will come in on their days off
to make sure that an outcome meets their expectations. Their mind is
constantly on their work, whether they are in or out of the workplace.

10. Passion
Passion is the most important trait of the successful entrepreneur.
They genuinely love their work. They are willing to put in those extra
hours to make the business succeed because there is a joy their
business gives which goes beyond the money. The successful
entrepreneur will always be reading and researching ways to make the
business better.
Successful entrepreneurs want to see what the view is like at the top
of the business mountain. Once they see it, they want to go further.
They know how to talk to their employees, and their businesses soar
as a result.

Entrepreneurial Competencies
A competency may be defined as underlying characteristics of a
person which results in effective performance of a job.
It may be include such motives, traits.skills.aspects of ones selfimage or a body of knowledge which one uses in the practical life.
Only knowledge can not ensure success.
Success depends upon the ability or skills of using the acquired
knowledge for achieving desired results.
Skills refer to practical application or use of the knowledge.

 Thus, performance depends upon both knowledge and skills.

The personality of the person making use of knowledge and skills
important in this context.
Personality represents the, whole person, concept.
It includes perception, learning and motivation.

Elements of Entrepreneurial Competencies

Knowledge
Skills
Motives and traits

KNOWLEDGE
Innovation is possible only through knowledge.
In simple words, knowledge means collection of information and
retention of facts an individual store in some parts of his brain.
Creative process provides imagination, germinates ideas, nurtures
them and develops them successfully
But innovation is the development process which translates an idea
into an application.
It requires persistence in analytical working out the details of product
design or service, and to develop marketing, obtain finances and plans
operations.

SKILLS

Skill is ability to demonstrate a system and sequence of behaviours that are

functionally related to attaining a goal. An Entrepreneur is required to have
certain skills which are as follows:
Anticipatory Skills-foresight into a constantly changing
environment.
Visioning Skills-inducing a group to act in accordance with the
leaders purposes or the shared purposes of larger group.
Value Congruence Skills-the need to be in touch with employees
economic,safety,psychological,spiritual,,aesthetic and physical needs
in order to engage people on the basis of shared motives, values and
goals.
Empowerment Skills-the willingness to share power and to do so
effectively.
Self Understanding Skills-introspective or self knowledge skills as
well as framework within which leaders understand both their needs
and goals and those of their employees.
MOTIVES AND TRAITS
Motives deals with current concern for a goal, state or condition appearing in
fantasy which drives, directs and select behaviour of Individual.
In simple words, motive represents thoughts related to a particular goals or
state.
Trait may be defined as a disposition or characteristic way in which a person
responds to a set of stimuli.
Such responses represent intelligence, enthusiasm, strength, bravery,
integrity and self-confidence.
An entrepreneur provides leadership to his enterprise and so he must possess
the leadership traits. He/She should be
Adaptable to situations faced
Alert to social environment

 Ambitious and achievement oriented

Assertive
Co-operative
Decision maker
Dependable
Dominant
Energetic
Self-confident
Tolerant of stress
Willing to assume responsibility.
TYPES OF ENTREPRENEURIAL COMPETENCIES

Behavioural competencies
Initiative
Creativity and innovation
Risk-taking and risk management
Problem solving and decision-making
Persistence-----faith of the Entrepreneur to the system with confident.
Quality of work performance
Information seeking
Systematic planning
Persuasion competency-mobilizes the resources

ENTERPRISE LAUNCHING COMPETENCIES

Opportunities exist in the environment but not all of us are
sensitive.Similarly, resources are available to all the members of the
society.
Besides economic insight for sensing opportunities in the area,
prospective entrepreneurs may have to develop the capability of
selecting a suitable project, formulating project reports, arranging the
plant machinery etc.
They should also identify and avail the facilities and resources needed
to launch their enterprise.

ENTERPRISE MANAGEMENT COMPETENCIES

Various managerial functions such as purchasing, production,
marketing, finance, industrial relations, personnel management, growth
and development etc.are crucial for the entrepreneurs.
Their efficient performance is an important determinant of the success
and sustenance of an enterprise. Management skills of potential
entrepreneurs also raise their result expectancy.

ENTREPRENEURSHIP DEVELOPMENT PROGRAMME (EDP)

Entrepreneurial development is a process in which the persons are
prepared to face business uncertainties and risks. This is possible with
proper education, training, motivation, orientation and re-orientation of
entrepreneurs.

 EDP means a programme designed to help young entrepreneurs in

strengthening their entrepreneurial motive and in acquiring skills and
capabilities necessary for their entrepreneurial role effectively.
EDP means inculcating entrepreneurial traits into a person, imparting
the required knowledge, developing the technical, financial, marketing
and managerial skills and building the entrepreneurial attitude.
EDP is a continuous process of training and motivating entrepreneurs so
as to enable them to start new business ventures.

Characteristics
Knowledge
Vision
Planning
Organizing
Co-ordinating
Controlling
Hard work
Dynamism

Objectives of EDP
To identify the potential entrepreneurs
To develop necessary knowledge and skills among the participants.
To develop and strengthen entrepreneurial quality and motivation
To provide follow up assistance

 To analyze environmental issue related to small industry and small

business.
To understand the process and procedure of setting up of small
enterprise
To select project and products
To formulate project reports
To develop in entrepreneurs the art of communication and coordination
To enables the entrepreneurs to build an effective organization to
achieve enterprise goals
To train the entrepreneur to understand environmental threats and
opportunities.
To train the entrepreneur to take strategic decision to survive and grow
in the competitive world.

Role and Contribution of Entrepreneurship Development

Programmes in India:
Elimination of Unemployment and Poverty
Balanced Regional Development
Utilization of Local Resources
Prevention of Slums in Urban Areas
Diffusion of Tension Among Youths

Phases/Steps in EDP
PRE-TRAINING PHASE
Selection of faculty or resource persons for imparting training.

 Design of course curriculum

Advertisement for inviting application
Selection/identification of suitable participants
Arrangement of infrastructure for training
TRAINING PHASE
During this phase, instructions in the pre-determined curriculum are
imparted to develop skills among participants.
The trainers endeavour to bring desirable changes in the behaviour of
the trainers.
During the programme, the trainees get practical exposure in
conducting market survey, preparation of project report and sometimes
even marketing of products.
This facilitates in understanding buyer and consumer behaviour,
negotiation skills, payment terms and other ground level conditions.
It also comprises self analysis, product selection, planning launching
and managing enterprises.
POST-TRAINING PHASE OR FOLLOW UP STAGE
Post training period reveals drawbacks in the pre-training and training phases
and suggest guidelines for framing future policy. The various aspects of post
training phase include the following activities:
Follow-up meeting of the officials of EDP organizations with the
participants or trainees
Correspondence with the trainees.
Counseling and guidance of the trainees.
Escorts service to the trainees.
Assistance in projection report preparation.

 Assisting in selecting location of the unit.

Helping in bringing the trainees in touch with the financial institutions

EVALUATION OF EDP
To review the pre-training work.
To review the process of training
To review the post training approach

UNIT-II

OPPORTUNITY/IDENTIFICATION AND PRODUCT SELECTION:

Small and Medium Enterprises play a vital role for the growth of Indian
economy by contributing 45% of the industrial output, 40% of exports, 42
million in employment, create one million jobs every year and produces more
than 8000 quality products for the Indian and international markets. As a

result, MSMEs are today exposed to greater opportunities for expansion and
diversification
across
the
sectors.
The Indian market is growing rapidly and Indian industry is making
remarkable progress in various Industries like Manufacturing, Precision
Engineering, Food Processing, Pharmaceuticals, Textile & Garments, Retail,
IT, Agro and Service sectors. SMEs are finding increasing opportunities to
enhance their business activities in core sectors.

A prototype is an early sample or model built to test a concept or process or to act as a thing
to be replicated,

A daily wage labourer who turned

multimillionaire
The 39-year-old, the fifth child of an illiterate labourer couple and
only the second of their eight to be educated, now helms various
ventures that bring in a turnover of between Rs 75 crore and Rs 90
crore.

Jubilee Hills is Hyderabad's most coveted address, and a drive past the
mansions here reveals why.
Some houses look elegant while many are hideous, but all are quite large.
JubileeHeights, the lavender-and-pink apartment block on road number 86, is
not imposing.
Neither is the first floor duplex apartment, the home of Mannam Madhusudana
Rao.

There is a stuffed toy tiger and a doll in a blue dress on a shelf. A picture of Shirdi
Sai Baba hangs on the wall, below a flat-screen TV in the living room - familiar
kitsch found in many a middle-class home. Yet, the house is a powerful symbol of
having arrived.
"I had come to this area earlier, when I was in the eighth or ninth grade, to help
my brothers who were working as masons at the house of the Nagarjuna
Constructions chairman (AVS Raju)," says Rao, founder and managing director
of MMR Infra Projects.
That's when he started dreaming about living here, his assistant Kumaraswamy
interjects. Rao corrects him. "I decided to live here only now. When I was
working here, I could not even dream of it," says the soft-spoken entrepreneur
dressed in an ill-fitting brown jacket and trousers with a slight sheen and a pale
yellow shirt.
He says he got the house "cheap" four years ago, paying "2.5". I must have looked
puzzled because he immediately adds, "2.5 CR (Rs 2.5 crore), madam." The house
measures 4,000 square feet, he says, with a hint of pride.
The pride in Rao, someone who otherwise comes across as approachable but
confident, is hardly misplaced.
The 39-year-old, the fifth child of an illiterate labourer couple and only the
second of their eight to be educated, now helms various ventures that bring in a
turnover of between Rs 75 crore and Rs 90 crore.
The journey he has traversed covers much more than the 400 kilometres between
his village, Palukuru in Andhra Pradesh's Prakasam district, and the capital.

Attributing the ongoing market carnage to global cues, ICICI Bank chief
Chanda Kochhar on Wednesday said the country has many positives like high
forex reserves, and low current account and fiscal gaps, which can help it
weather the ongoing volatilities.

"What we are seeing today is the volatility caused by global factors. I would
say that at this point in time, we must remember that we are better placed to
weather this volatility," Kochhar, the managing director and chief executive of
the country's largest private sector lender, said

The markets have seen in the last few days a massive rout, wiping out over Rs
8 trillion of investor wealth.

"We are living in a globalised world. Whatever happens in global markets

does impact the risk appetite and does impact capital flows," Kochhar said
referring to the bloodbath in the market following worries emanating from
China.

Stating that she expects the country to remain resilient and will tide over the
current turmoil, Kochhar cited the strong forex reserves of over $380 billion
and the narrowing current account gap as the bulwarks of the country.

This Monday when the market tanked close to 6 per cent, to assuage the wounds,
Reserve Bank Governor Raghuram Rajan had said the economy was better placed
than many others with a strong fiscal position.
A lower CAD, fiscal deficit and over $380 billion in forex reserves coupled with
lower oil prices and falling inflation are the biggest strengths of the domestic
economy, Rajan added.
Kochhar further said that "we are not relying too much today on capital flows to
fund our imports".
"The country is heading in the right direction as far as fiscal deficit and inflation
are concerned. All these factors augur very well for us which give us the ability to
weather this volatility which we are seeing because of global circumstances,"
Kochhar said.
The Sensex tanked nearly 1,700 points on Monday despite the comments from
Rajan and Finance Minister Arun Jaitley during market hours, but gained some
lost ground on Tuesday recovering over 290 points but shed 317 points at the
close of trade today.
Apart from the bourses, the currency markets also witnessed extreme volatilities
with the rupee on Monday plunging to a fresh 2-year lows of 66.65. It, however,
recovered to 66.10 against the dollar on Wednesday, but opened weak today.