Entrpreneurship

Development
By
Prof Pradip Kr Pathak

Entrepreneurship
An Entrepreneur is a person who establishes
and manages his own entreprize or business.
The process of establishment &
Management is called entrepreneurship.
It is the most effective way of bridging the
gap between scientific inventions and
marketable product by creating new
enterprises.
An entrepreneur is a catalyst who brings in
this change.

Scope of Entrepreneurship
An entrepreneur has to take a number of decisions to set
up and run a new enterprise, e.g.:
(1)Decision to become an entrepreneur: The inner urge of a
person depends on the following needs:
To
To
To
To
To
To

prove oneself
be independent
do something unique
utilise skills
acquire greater economic reward
excel

2. Identification and selection of an opportunity

3. Business plan formulation & implementation
4. Entrepreneurial continum

Entrepreneurial continum
A series of decisions and actions have to be taken which requires
sight, attitude and requisite knowledge as well as skills as
follows:
Opportunities- Perception, Expansion, Contract
Growth & Expansion- Generation & allocation of funds
Change- Response, Addition/deletion of activities, Modification
in working strategy
Opportunities and growth & expansion leads to New product development
Product diversification or expansion
Research & development

Change leads to Strategic changes in price and marketing

New clientle
Change in product design, specification and qualities

Rewards for an
Entrepreneur

Freedom to work
Satisfaction of being own boss
Power to do things as he likes
Ownership and retirement assurance
Respect of family and friends

Penalties for an
Entrepreneur
Constraints of finances, laborers,
customers, suppliers control his
freedom
Frustration due to limited capital
Social & family life is affected due to
long hours of work
Frustration due to non-achievement
of full objectives
Risk of failure

Role of Entrepreneur in SocioEconomic Development

Employment Generation
Entrepreneurial Culture
Foreign exchange
Alternate profession
Competitive price
Exploitation of consumers (Restricting monopoly)
Ancillary Industries
Development of rural and backward areas
Diversification of Management
Distribution of ownership of business
Utilization of local skill and materials
Environmental control
Infrastructure development
Local employment

Qualities of an Entrepreneur

Need to achieve
Persevarence
Moderate risk taking
Ability to find and explore opportunity
Analytical ability
Using feedback
Facing uncertainty
Independence
Flexibility
Planning
Interpersonal skills
Motivators
Stress taking
Positive self concept
Orientation of future

Types of Entrepreneur
Innovative entrepreneurs-They
introduce new goods
Adaptive or imitative entreprenersThey adopt others innovations
Fabian entrepreneurs They are very
cautious & skeptic in experimenting
Drone entrepreneurs- They dont make
changes in production methods even
though they may suffer lossess.

Functions of an
Entrepreneur

Sensing entrepreneurial opportunities

Generation of business ideas
Converting idea into reality
Arranging resources
Supply of capital
Establishment of enterprize
Managing enterprize
Growth and development

Barriers to Entrepreneurship

Lack of a viable concept

Lack of market knowledge
Lack of technical skills
Lack of seed capital
Lack of business knowhow
Complacency and lack of motivation
Social stigma against business
Time pressures and distractions
Legal constraints, regulations, red tape
Monopoly & Protectionism
Inhibitions due to patents

Theories of
Entrepreneurship

Max Webers theory of social change

Hoselitz sociological theory
Trait theory
Economic theory
Schumpeters innovation theory
McClelland's psychological theory
Theory of social behaviour

Small Scale Industries