Professional Documents
Culture Documents
Entrepreneurship Management BMS
Entrepreneurship Management BMS
TYBMS
Paper Pattern
Section I
Concepts (3*5- 15 marks) Case study (15 marks)
Section II
Any three 10 marks each (with or without internal options)
*Reference book: Entrepreneurship and Management of Small & Medium Enterprise by Sunny Fernandes
What is Entrepreneurship?
Capacity to take risks Ability to own and organize Desire and capability to INNOVATE and diversify
Who is an Entrepreneur?
A person who organizes and manages a business undertaking, assuming the risk for the sake of profit.
Definitions of Entrepreneur
J.B. Say
An Entrepreneur is one who brings together the factors of production and combines them into a product.
E.E. Hagen
An entrepreneur is an economic man who tries to maximize his profits by innovations. Innovations involve problem-solving and gets satisfaction from using his capabilities in attacking problems.
Concept of Entrepreneurship
ENTREPRENEU R
PERSON
ENTREPRENEURSH IP
ENTERPRISE
OBJECT
An Individual
Definitions of Entrepreneurship
Joseph Schumpter:
Entrepreneurship as defined essentially consists in doing things that are not generally done in the ordinary course of business routine.
Peter Drucker:
Entrepreneurship occurs when resources are redirected to progressive opportunities not used to ensure administrative efficiency. He further states that entrepreneurship is not natural; it is not creative. It is work. Entrepreneurship requires entrepreneurial management.
Creativity Innovation Interpersonal skills Leadership Team Building Achievement, Motivation Problem Solving Goal Orientation Risk taking and decision making ability Positive Self Concept
Continued
Commitment Locus of control Self confidence Ability to mobilize resources Mental ability Business Planning Business secrecy Human Relations Ability Technical Knowledge
Classification
Based on Functional Characteristics Based on Type of Business Based on Use of Technology Based on Motivation
Based on Growth
Based on Stages of Development Based on Area Based on Gender Based on Role of Operation
Functional Characteristics
Fabian Entrepreneur
Drone Entrepreneur
Type of Business
Business Entrepreneurs: Printing house, Garments, etc Trading Entrepreneurs: Export- Import
Industrial Entrepreneurs : Electronics , Machine tools, etc Corporate Entrepreneurs: Eg: Ambani
Agricultural Entrepreneurs: Dairy, Plantation, etc
Use of Technology
Motivation
Pure Entrepreneurs: Psychological and economic rewards Induced Entrepreneurs: Incentives, Concessions
Growth
Growth Entrepreneurs: high growth industry Super- Growth Entrepreneurs: growth performance is shown by liquidity of funds and profitability
Stages of Development
Others
Based on Area
Urban Entrepreneurs Rural Entrepreneurs
Intrapreneurship
Making Big Companies More Entrepreneurial
Introduction
It is a creation of a system which will provide selected executives a status within the organization similar to that of an entrepreneur in the society.
Intrapreneur is defined as any of the dreamers who do. Intrapreneurship involves the development of independent units designed to create a market, and expand innovative services, technologies or methods within the organization. Some companies who promote intrapreneurial activities are General Motors, IBM, Dupont ,etc.
Characteristics of Intrapreneur
Self Confiden t
Self Motivate d
Intrapreneur
Innovate s Process es
Proactiv e
Risk Taking
Organization operates on frontiers of technology Trial and Error Encouraged No opportunity parameters Resources available and accessible Multi discipline team work approach Long time horizon Volunteer Program Appropriate Reward System Sponsors available Support of top Management
Intrapreneur
Only operator of the business not owner. Moderate Risk. Primary motive is independence, and ability to advance in the organization, and rewards. Serves oneself, organization and customers. Financial support from organization May get increment, or reward but does not own the rewards Big enterprise or a new unit of a big company
Primary motive is independence, opportunity to create, and make money. Serves oneself and customers.
WOMEN ENTREPRENEURSHIP
Introduction
They are a woman or group of women who initiate, organize & operate a business enterprise. According to Marshal, any woman or group of woman who innovates, initiates, or adopts an economic activity may be called a woman entrepreneur. According to Government of India, it is an enterprise owned & controlled by woman or a woman having a minimum financial interest of 51% of the capital in the enterprise and giving at least 51% of the employment generated in the enterprise to women.
Motivational Factors
Economic necessity
Self Actualization
Independence Government policies and programmes Educational Qualification Self identity and social status Family occupation Success stories Self satisfaction
Facilitating Factors
Adequate financial facilities
Innovative thinking Network of contacts Cooperation of family Support of family
Continued
Push Factors
Desire to do something new in life Need for independence Availability of finance Concessions and subsidies
Pull Factors
Death of husband or father Financial problems Family responsibilities
Forced
Trends
New industrial policy recommends product and process oriented courses for women Nationalized banks advance loans to women on preferential basis SIDC provides loans, subsidies and grants to small scale women entrepreneur National Alliance of Young Entrepreneurs (NAYE) assist
Problems faced
Lack of Independence Family Responsibilities Social Attitude Low Mobility High cost of Production Lack of Education Low need for Achievement Shortage of finance Inefficient Arrangement for Marketing and Data Shortage of Raw Material Stiff Competition Lack of managerial and marketing skills Lack of Technical Know how Low risk bearing capability
Special Schemes
Seed Capital Scheme National Equity Fund Finance Corporation Scheme Prime Ministers Employment Guarantee Scheme, Central Governments Scheme for Educated Unemployed Women Industries Fund Scheme Single Window Scheme Joint Loan Scheme District Industries Centre Scheme Training and Extension Services Scheme for Refinance Assistance to Women Entrepreneurs
There are 2,60,000 SHGs in India. A Self help group is a small, economically homogenous and significant group of rural/urban poor, voluntarily formed to save and mutually agreed to contribute to a common fund to be lent to its members. It is a collection of 20 members who form a group facilitated by a NGO, MFO or a bank. It helps women save on daily basis. These groups may set up micro enterprises.
Theories of Entrepreneurship
Economic Theory
Entrepreneurship and economic growth take place when the economic conditions are favorable Economic incentives are the main motivators for entrepreneurial activities Economic incentives include taxation policy, industrial policy, sources of finance and raw material, infrastructure availability, investment and marketing opportunities, access to information about market conditions, technology etc
Sociological Theory
Entrepreneurship is likely to get a boost in a particular social culture. Societys values, religious beliefs, customs, taboos influence the behaviour of individuals in a society The entrepreneur is a role performer according to the role expectations by the society
Psychological Theory
Entrepreneurship gets a boost when society has sufficient supply of individuals with necessary psychological characteristics. The psychological characteristics include need for high achievement, a vision or foresight, ability to face opposition. These characteristics are formed during the individuals upbringing which stress on standards of excellence, self reliance and low father dominance.
Such people are not influenced by money or external incentives They consider profit to be a measure of success and competency According to McClelland, a person has three types of needs at any given time, which are: Need for achievement (get success with ones own efforts) Need for power (to dominate, influence others) Need for affiliation (maintain friendly relations with others) The need for achievement is the highest for entrepreneurs
Theory by Joseph Schumpeter who believes that entrepreneur helps the process of development in an economy He says that an entrepreneur is the one who is innovative, creative and has a foresight According to him, innovation occurs when the entrepreneur Introduces a new product Introduces a new production method Opens up a new market Finds out a new source of raw material supply Introduces new organisation in any industry
Continued..
The theory emphasizes on innovation, ignoring the risk taking and organizing abilities of an entrepreneur Schumpeters entrepreneur is a large scale businessman, who is rarely found in developing countries, where entrepreneurs are small scale businessmen who need to imitate rather than innovate
Creative Innovation or change Withdrawal of Status Respect Four different Personalities arise:
Retreatist : Indifferent Ritualist: Defensive Reformist: Rebel Innovator: Creative
Economic Factors Social Factors Psychological Factors Cultural Factors Personality Factors Government
Economic Factors
Capital Labour Raw Materials Market
Social Factors
Social norms and values Role Models Social Pressure Respect and Status Security
Psychological Factors
Need for Achievement Withdrawal of Status Respect