INTRODUCTION Do you know that there are millions of unemployed youth in the country and by the time you

graduate, this number would ha e increased substantially! Do you want to be part of that group which keeps knocking from pillar to post, checking with employment e"changes, relati es, friends, and neighbours and still not able to get a #ob to their liking and then settle for a second or third rate #ob! $ou can also choose to be like %r& 'atel of Nirma who was a chemist(s assistance and has a Rs& )*++ crore company today& Did you know that the original %r& ,ata was a cobbler! -nd now has stores in more than .+ countries all o er the world& Or you could be like Dhiru bhai -mbani who started life as a clerk in a /rench company in -den& 0e was not born into a business family nor did he possess an %,degree and yet, he is a household name in India and figures in the /orbes list of the richest -sians& 1akshmi %ittal, the steel giant, 2atbir ,hatia of 0otmail fame and Narayan %urthy of Infosys are some other names in the endless list you could choose from& If your answer is yes then you can definitely opt for a career in entrepreneurship& -nd let us remind you that this career opportunity is not only for boys but also for girls 3 all those girls who think smart, are ready to act and script the story of their own life 3 like 2hehna4 0ussain or Ritu 5umar or 5iran %a#umdar 2haw&

6NTR6'R6N6UR20I' -2 C-R66R O'TION The ast ma#ority of human beings direct their acti ities towards earning a li ing, generating wealth and impro ing their standard of li ing& $ou can choose your career from two broad categories of options 7 8age 6mployment or 6ntrepreneurship& The term 9career( signifies a continuous, e er e ol ing, e er e"panding opportunity for personal as well as business growth and de elopment& 8e may define entrepreneurship as a career in your own business :$O,; rather than wage employment :<O,; &If you opt for a #ob then you ill work for others& In case you opt for entrepreneurship you will be your own boss& In case of wage employment one is engaged in routine work carried on for others for which he recei es salary or wages& 0e has to follow instructions and e"ecute plans laid down by his superior& One can choose to be employed in =o ernment 2er ice or the 'ublic 2ector or the 'ri ate sector& 2ome of the main differences between entrepreneurship and wage employment career options are as under> Wage Entrepreneurship 8ork for Others /ollow Instructions Routine <ob 6arning is fi"ed, ne er negati e generally surplus Does not create wealth =D' Employment Own ,oss %ake own plans Creati e acti ity Can be negati e sometimes, Creates 8ealth, contributes to

Can choose from3 Can choose from3 =o ernment ser ice Industry 'ublic 2ector Trade or 'ri ate 2ector 2er ice 6nterprise In the conte"t of employment generation the three terms3 Income generation, 2elfemployment and 6ntrepreneurship are often used interchangeably& Income generation is the initial stage in the entrepreneurial process in which one tries to generate surplus or profit& They are often taken on part3 time or casual basis to supplement income e&g& a man with some surplus money might put his money in a fi"ed deposit account in a bank or a chit 3fund to earn some interest& Self-employment is the second stage in the entrepreneurial process and refers to an indi idual(s fulltime in ol ement in his own occupation& e&g& a person who starts a tea shop and remains happy and satisfied and has no plans to add on any other items like samosas, buns, soft drinks etc& or to grow in any other manner:e&g& supplying tea?coffee?sandwiches to others in the icinity;& Entrepreneurship is the terminal stage of the entrepreneurial process wherein after setting up a enture one looks for di ersification and growth& -n entrepreneur is always in search of new challenges& -n entrepreneur is not a routine businessman he might not ha e resources but he will ha e ideas& 0e is inno ati e and creati e& 0e can con ert a threat into an opportunity& 2mall businessmen might shut3 down or change his business if he anticipates losses but an entrepreneur will try again after analy4ing the situation& On the other hand an entrepreneur can lea e a perfectly running business to start another enture if he so desires& /unctionally all entrepreneurs are self3employed and income generating persons but the re erse is not true3 all self3 employed and income generating persons are not

entrepreneurs& If seen on a continuum, income generation, self3employment and entrepreneurship can be considered as the initial, middle and final stages of the entrepreneurial growth process& Income generating e"perience encourages self3employment, which in turn facilitates graduating into entrepreneurship& 6NTR6'R6N6UR -n entrepreneur is a person who starts an enterprise& 0e searches for change and responds to it& - number of definitions ha e been gi en of an entrepreneur3 The economists iew him as a fourth factor of production along with land labour and capital& The sociologists feel that certain communities and cultures promote entrepreneurship like for e"ample in India we say that =u#aratis and 2indhis are ery enterprising& 2till others feel that entrepreneurs are inno ators who come up with new ideas for products, markets or techni@ues& To put it ery simply an entrepreneur is someone who percei es opportunity, organi4es resources needed for e"ploiting that opportunity and e"ploits it& Computers, mobile phones, washing machines, -T%s, Credit Cards, Courier 2er ice, and Ready to eat /oods are all e"amples of entrepreneurial ideas that got con erted into products or ser ices& 2ome definitions of an entrepreneur are listed below> Stems: from the /rench word 9entrependre( meaning one who undertakes or one who is a 9go3between( Richard Cantillon> -n entrepreneur is a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while conse@uently admitting the risk of enterprise&

J.B. Say> -n entrepreneur is an economic agent who unites all means of production3 land of one, the labour of another and the capital of yet another and thus produces a product& ,y selling the product in the market he pays rent of land, wages to labour, interest on capital and what remains is his profit& 0e shifts economic resources out of an area of lower and into an area of higher producti ity and greater yield& Schumpeter: -ccording to him entrepreneurs are inno ators who use a process of shattering the status @uo of the e"isting products and ser ices, to set up new products, new ser ices& Da id !cClleland> -n entrepreneur is a person with a high need for achie ement :N3-ch;& 0e is energetic and a moderate risk taker& "eter Druc#er> -n entrepreneur searches for change, responds to it and e"ploits opportunities& Inno ation is a specific tool of an entrepreneur hence an effecti e entrepreneur con erts a source into a resource& $il%y: 6mphasi4es the role of an imitator entrepreneur who does not inno ate but imitates technologies inno ated by others& -re ery important in de eloping economies& &l%ert Shapero> 6ntrepreneurs take initiati e, accept risk of failure and ha e an internal locus of control& '. "inchot> Intrapreneur is an entrepreneur within an already established organi4ation&

6NTR6'R6N6UR20I' 6ntrepreneurship can be described as a process of action an entrepreneur undertakes to establish his enterprise& 6ntrepreneurship is a creati e acti ity& It is the ability to create and build something from practically nothing& It is a knack of sensing opportunity where others see chaos, contradiction and confusion& 6ntrepreneurship is the attitude of mind to seek opportunities, take calculated risks and deri e benefits by setting up a enture& It comprises of numerous acti ities in ol ed in conception, creation and running an enterprise& -ccording to "eter Druc#er 6ntrepreneurship is defined as 9a systematic inno ation, which consists in the purposeful and organi4ed search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social inno ation&( 6ntrepreneurship is a discipline with a knowledge base theory& It is an outcome of comple" socio3economic, psychological, technological, legal and other factors& It is a dynamic and risky process& It in ol es a fusion of capital, technology and human talent& 6ntrepreneurship is e@ually applicable to big and small businesses, to economic and non3 economic acti ities& Different entrepreneurs might ha e some common traits but all of them will ha e some different and uni@ue features& If we #ust concentrate on the entrepreneurs then there will be as many models as there are entures and we will not be able to predict or plan, how

and where, and when these entrepreneurs will start their entures& 6ntrepreneurship is a process& It is not a combination of some stray incidents& It is the purposeful and organi4ed search for change, conducted after systematic analysis of opportunities in the en ironment& 6ntrepreneurship is a philosophy3 it is the way one thinks, one acts and therefore it can e"ist in any situation be it business or go ernment or in the field of education, science and technology or po erty alle iation or any others& RO16 O/ 6NTR6'R6N6UR IN 6CONO%IC D6A61O'%6NT The industrial health of a society depends on the le el of entrepreneurship e"isting in it& - country might remain backward not because of lack of natural resources or dearth of capital :as it is many times belie ed; but because of lack of entrepreneurial talents or it inability to tap the latent entrepreneurial talents e"isting in that society& 6ntrepreneurs historically ha e altered the direction of national economies, industry or markets3 <apan, 2ingapore, 5orea, Taiwan to name a few& Economic De elopment - 6ntrepreneurship is basically concerned with creating wealth through production of goods and ser ices& This results in a process of upward change whereby the real per capita income of a country rises o ertime or in other words economic de elopment takes place& Thus entrepreneurial de elopment is the key to economic de elopment& In fact it is one of the most critical inputs in the economic de elopment of a region& It speeds up the process of acti ating factors of production leading to a higher rate of economic growth, dispersal of economic acti ities and de elopment of backward regions& If a region is unable to throw up a sufficient number of entrepreneurs then alien entrepreneurs usually step in to pro ide goods and ser ices needed by the people& 0owe er the profits

earned by these entrepreneurs are usually not ploughed back but repatriated to their place of origin& -s a result de elopment in that region cannot take place& Dr& %&%& -khori refers to this practice as 9The 1eech 6ffect(& The abo e reiterates the importance of entrepreneurship de elopment for fuelling economic growth of a region& 6ntrepreneurship begets and also in#ects entrepreneurship by starting a chain reaction when the entrepreneur continuously tries to impro e the @uality of e"isting goods and ser ices and add new ones& 6&g& when computers came into the market there was continuous impro ement in the models, their functions etc& like first generation computers, personal computers, laptops, palmtops etc& Not only had this fostered the de elopment of the software industry, computer education institutes, computer maintenance and stationery units etc& but also other industries like banking, railways, education, tra el, films, medical and legal transcriptions, business process outsourcing :,'Os; etc& In this manner by harnessing the entrepreneurial talent a society comes out of traditional lethargy to modern industrial culture& India needs entrepreneurs to capitali4e on new opportunities and to create wealth and new #obs& Education - Towards the end of the si"ties, two significant contributions were made in the field of entrepreneurship &One was that there is a positi e linkage between entrepreneurship and economic de elopment and the other was regarding the emergence of a strong hypothesis that entrepreneurship can be de eloped through planned effortsB& Conse@uently planners reali4ed that absence of a strong entrepreneurial base acts as a serious handicap in the industrial de elopment of a region& The identification and de elopment of first generation entrepreneurs through 6ntrepreneurial De elopment 'rogrammes is an important strategy& There is a growing reali4ation that presence of resources and fa ourable go ernment policies cannot automatically

manufacture economic de elopment& It is the entrepreneurial spirit of the people, which can transform the economy of that region& ,oth the @uantity and @uality of entrepreneurs are of utmost significance for achie ing the goal of economic de elopment& The myth that entrepreneurs are born with some innate traits is fortunately no longer held& $ou will learn more about this in the lesson on moti ation& %any research studies ha e brought out that entrepreneurship can be taught and learned& 6ntrepreneurship is a discipline and like all disciplines it has models, processes and case studies, which can help an indi idual to study this sub#ect& The necessary competencies re@uired of a successful entrepreneur can be ac@uired through training and de elopment& Numerous courses in entrepreneurship are being taught all o er the world in schools and colleges, seminars and conferences are being organi4ed and 6D's are being conducted& The thinking today is why #ust create managers why not create people who can absorb managers& One can ac@uire the traits and learn the skills for becoming an entrepreneur e&g& a person can learn to be achie ement oriented, self3 confident, perse erant etc& which are all part of the characteristics of a successful entrepreneur& /UNCTION2 O/ 6NTR6'R6N6UR -n entrepreneur fre@uently has to wear many hats& 0e has to percei e opportunity, plan, organi4e resources, and o ersee production, marketing, and liaison with officials& %ost importantly he has to inno ate and bear risk& The main functions of an entrepreneur are as follows> (. Inno ation> Inno ation is one of the most important functions of an entrepreneur according to 2chumpeter& -n entrepreneur uses information, knowledge and intuition to come up with new products, new methods of reducing costs of a product, impro ement in design or function of a product, disco ering new markets or new ways of organi4ation of

industry& Through inno ation, an entrepreneur con erts a material into a resource or combines e"isting resources into new and more producti e configurations& It is the creati ity of an entrepreneur that results in in ention :creation of new knowledge; and inno ation :application of knowledge to create new products, ser ices or processes&; 2ystematic inno ation means monitoring the following for inno ati e opportunity> The une"pected success or failure or any une"pected outside e ent, Ce&g& when the IT bubble burst the IT62 sector started growing&D Inno ation based on process need :e&g& plate based cameras, film based cameras, digital cameras; Changes in industry and market structure :e&g& ideo cassette ACD, DAD, ,lue ray disc; Demographics changes Ce&g& increasing number of working women and nuclear families in most metropolitan citiesD New knowledge Ce&g& 'entium chipD ). Ris# and uncertainty %earing: -ccording to 0o4elist an entrepreneur performs the function of risk and uncertainty bearing& 6 ery decision pertaining to de elopment of new products, adapting new technologies, opening up new markets in ol es risk& Decision3making in an en ironment of uncertainty re@uires anticipation of risk& 'rofit is said to be the reward for anticipating and taking such risks& 0owe er it is pertinent to mention that the entrepreneur is not a gambler, he only takes calculated risks& -n entrepreneur de elops the art of decision3making under conditions of uncertainty as a matter of sur i al&

*. +rgani,ation %uilding: -n entrepreneur has to organi4e men, material and other resources& 0e has to perform the functions of planning, co3ordination and control& 0e has to use his leadership @ualities to build a team, generate resources and sol e problems& 8ith his organi4ational skills an entrepreneur builds an enterprise from scratch, nurtures

it and makes it grow& 0is ision sows the seeds for a sound and ibrant organi4ation and synergies are built in he enterprise& -ccording to 5ilby in a de eloping country e en the imitator entrepreneurs are ery important and the entrepreneurial role encompasses the following> 'erception of market opportunities =aining command o er scarce resources 'urchasing inputs %arketing the products Dealing with bureaucrats %anaging human relations within the firm %anaging customer and supplier relations %anaging finance %anaging production -c@uiring and o erseeing assembly of the factory Industrial engineering Upgrading process and product Introducing new production techni@ues and products 6NTR-'R6N6UR s %-N-=6R R61-TION20I' -re all small entrepreneurs managers! -re all small business managers entrepreneurs! The terms entrepreneur and manager are many times used interchangeably yet they are different& -n entrepreneur starts a enture then a manager takes o er to organi4e and co3ordinate continuous production& -n entrepreneur is being enterprising as long as he starts something new then the routine day3to3day management of the business is passed on to the manager& The main differences between the two are summed up below>

'eter Drucker claims that the process of entrepreneurship is directing the use of resources to progressi e acti ities rather than for administrati e efficienciesE& This really clarifies the role of an entrepreneur from that of a manager& 'lease note that in most small businesses the entrepreneur who starts the enture also has to perform the role of a manager in nurturing it and making it grow and managers fre@uently ha e to think of new ways to capture markets, face competition etc&

-ostering Intrapreneurship: .he /e0 Competiti e Edge The pressures of competition stemming from globalisation and technological changes today are increasingly buffeting organisations& Due to the dynamic nature of modern organisations, it is imperati e that organisations and their mangers remain

recepti e to new ideas, approaches and attitudes& It is therefore the belief that rapid and cost effecti e inno ation is the primary source of lasting competiti e ad antage in the twenty first century& Intrapreneurship is increasingly becoming a term used in the business world to describe organisations that are willing to pursue opportunities, initiate actions and emphasise new, inno ati e products or ser ices& Intrapreneurship describes the process of de eloping new products, ser ices, and lines of business within an e"isting company& Integration of entrepreneurial skills into a large corporation(s strategic ision that nurtures a climate of radical or incremental inno ation& Intrapreneurship is allowing an atmosphere of inno ation to prosper& Intrapreneur is a person who focuses on inno ation and creati ity and who transforms a dream or an idea into a profitable enture, by operating within the organi4ational en ironment& Intrapreneurs, by definition, embody the same characteristics as the 6ntrepreneur, con iction, passion, and dri e& If the company is supporti e, the Intrapreneur succeeds& 8hen the organi4ation is not, the Intrapreneur usually fails or lea es to start a

new company& -n Intrapreneur thinks like an entrepreneur seeking out opportunities, which benefit the corporation& It was a new way of thinking, in making companies more producti e and profitable& Aisionary employees who thought like entrepreneurs& I,% is one of the leading companies, which encourages INTR-'R6N6UR& -n Intrapreneur is the person who focuses on inno ation and creati ity and who transforms a dream or an idea into a profitable enture, by operating within the organi4ational en ironment& Thus, Intrapreneurs are Inside entrepreneurs who follow their founder(s e"ample&

.he need for Intrapreneurship Intrapreneurship is important for organisational sur i al, growth, profitability and renewal

especially in larger organisations& De eloping intrapreneurs philosophy in organi4ation results in rapid growth in the number of new and sophisticated competition a sense of distruct of traditional management and e"odus of money of the best employees who are lea ing the organi4ation in order to start their own companies& It also assists in the creation of a workforce that can help maintain its competiti eness and promote a climate conduci e to high achie ement& /inal credo for companies intrapreneurship concepts are> implementing

Creating a climate where e eryone has the potential to create new things& F =oing outside for talent and resources& F De eloping internal markets for ideas& That is easier to accomplish in small companies than in large ones, in part, because large companies ha e greater geographic differences and bureaucracies& Why is Intrapreneurship more important no0 than e er %efore1

Organisations are finding it harder and harder to sur i e by merely competing& They are, therefore, increasingly looking towards their Intrapreneurs to take them beyond competition to create new businesses in new markets& G-s competition intensifies, the need for creati e thinking increases& It is no longer enough to do the same thing better&&& no longer enough to be efficient and sol e problems& /ar more is needed& Now business has to keep up with changes&&& -nd that re@uires creati ity& That means creati ity both at a strategic le el and also on the front line, to accompany the shift that competiti e business demands&&& from administration to true entrepreneurshipE 36dward ,ono What causes or retards Intrapreneurship1 The primary factors retarding Intrapreneurship are> .he costs of failure too high2 and the re0ards of success are too lo0& Intrapreneurs need to be gi en the space in which to fail, since failure is an una oidable aspect of the Intrapreneurial process& This is not to say that organisations should simply condone failure, but rather that organisations need

to begin to measure and attribute failure to either Intrapreneur fault, or circumstances beyond the Intrapreneurs control 3 and punish and reward accordingly& 2imilarly, the rewards for success are usually inade@uate 3 few organisations pro ide rewards for Intrapreneurs that e en closely appro"imate the rewards a ailable to the 6ntrepreneurial counterparts& %ost incenti isation systems need to be upgraded accordingly&

Inertia caused %y esta%lished systems that no-one is 0illing to change& %ost organisations are go erned by implicit and e"plicit systems, and in many cases people are reluctant to change them& Intrapreneurs are met with Hthis is the way weI e always done it around hereH, Hif it ainIt broke, donIt fi" itH, and Hchanging it now would #ust take too much effort&&&H %any organisations use their e"isting systems to pro e they already ha e the Hright answerH Csee abo eD, effecti ely dousing creati ity& 3ierarchy& Organisational hierarchies are what create the need to ask for permission 3 the deeper the hierarchy, that harder it is to get permission for anything new&

0ierarchies also tend to create narrow career paths and myopic thinking, further stifling creati ity and inno ation& 'eople lower down in the hierarchy ha e a tendency to become dis3empowered through ha ing to ask permission, e entually de eloping the H ictim mentalityH that causes reacti ity& Elements of a successful strategy De elop the ision& %ust ha e complete and une@ui ocal support of the ,oard of Directors and C6O& 6ncourage inno ation& Radical inno ation> takes e"perimental and determined ision& Incremental inno ation& 2ystematic e olution of a product or ser ice into newer markets& Top management support Intracapital needed

-acilitators of intrapreneurship: BD2upport of the top management& 1atitude to operate freely to those who ha e already e"hibited Intrapreneurial abilities& Includes freedom to induct or remo e any member of the Intrapreneurial team, freedom to select suppliers, etc&

)DThe freedom to fail .DThe ability of the management to condone mistakes and create an atmosphere of learning for them& JDTransparency K Communication& %anagement must be able to clearly articulate the company(s ob#ecti es and what it e"pects from the workforce& *DRecognition& The management also needs to recogni4e, mentor, and encourage people who demonstrate intrapreneurial traits& Intrapreneurial ision on the part of the intrapreneur, the ability to get the intrapreneurial team to own the ision, fostering team work, accepting the brutal reality, taking prompt and proacti e actions, and making timely decisions are essential for Intrapreneurial success& Resource constraints and time pressure also bring out the best of intrapreneurial inno ation&