MANAGEMENTANDENTREPRENEURSHI

MANAGEMENT&ENTREPRENEURSHI P
B.
E.,
VSemester
,Elect
ronics&Communi cat
ionEngi
neer
ing
[AsperChoi
ceBasedCr edi
tSystem (
CBCS)scheme]
[Subjectcode:15EC51]

MODULE–3a
SOCI
ALRESPONSI
BILI
TIESOFBUSI
NESS

SOCI
ALRESPONSI
BILI
TY
MEANI
NGOFSOCI
ALRESPONSI
BILI
TY
DEFI
NITI
ON:Soci alresponsi
bil
it
yist heidea thatbusinessesshould bal
anceprof
it
-
maki
ngactiv
iti
eswi t
hact i
vi
ti
esthatbenef
itsociet
y;i
tinv
olvesdevel
opi
ngbusinesseswi
th
aposi
ti
verel
ationshiptothesoci
etyinwhi
cht heyoperat
e.

Soci
alr
esponsi
bil
i
tyi
sanebul
ousi
deaandhencei
sdef
inedi
nvar
iousway
s.
Adol phBerl
e!hasdef inedsocialresponsi
bil
it
yast hemanager
'sresponsi
venesstopubl i
c
consensus.Thi smeanst hattherecannotbet hesamesetofsoci alresponsi
bil
i
ties
appli
cabletoal lcountri
esi nallti
mes.Thesewoul dbedeter
minedi neachcasebyt he
customs,reli
gions,t r
adit
ions,levelofindustr
ial
i
sationandahostofot hernormsand
standardsaboutwhi chthereisapubl i
cconsensusatanygiv
entimeinagi vensoci
ety.
Accordi
ngtoKeithDavi
s,'t
het er
m" soci
alresponsibi
l
ity"r
efer
stotwotypesofbusiness
obl
igati
ons,
viz.
,(a)t
hesoci
o-economicobli
gation,
and( b)t
hesoci
o-humanobl
igat
ion.
The socio-economic obli
gati
on of ev er
y business ist o see t hat t
he economic
consequences ofi t
s acti
ons do notadv ersel
y affectpubl
ic welfare.Thisincl
udes
obli
gati
onst opr omoteemploy mentop-opport
unit
ies,tomaintaincompet i
ti
on,tocurb
i
nflat
ion,etc.Thesocio-humanobl i
gati
onofev erybusinessist onur t
ureanddev el
op
humanv alues(suchasmor al
e,cooper
ati
on,mot i
vat
ionandself
-real
izati
oninwork).
Everybusi nessf i
rmi spar tofat otaleconomi candpol i
ticalsy
st em andnotani sl
and
withoutf oreignrelat
ions.Iti satt hecent reofanet wor kofr el
at i
onshipst opersons,
gr
oupsandt hings.Thebusi nessmanshoul d, t
heref
ore,considert
hei mpactofhi sacti
ons
onal lt
owhi chhei sr
elated.Heshoul doperatehisbusi
nessasat rusteeforthebenefitof
hi
sempl oyees, i
nvest
ors,consumer s,thegovernmentandt hegeneralpublic.Hist
askist o
medi at
eamongt heseinterests,t
oensur ethateachgetsasquar edealandt hatnobody's
i
nterestsar eundulysacrifi
cedt othoseofot hers.

SOCI
ALRESPONSI
BILI
TYOFBUSI
NESSTOWARDSDI
FFERENTGROUPS:

Socialresponsibil
i
t yofbusinessr eferstoitsobl i
gati
ontot aket hosedecisionsand
perf
ormt hoseact ionswhichar edesi r
abl
eint ermsoft heobject
ivesandv aluesofour
soci
ety.Real i
tyi st hat
,despite dif
feri
ng argumentsr el
ati
ng to socialr
esponsi bi
li
ty,
busi
nessent erpri
sesar econcernedwi t
hsocialresponsi
bil
i
tybecauseoft heinfluenceof
cert
ainexternalforces.

CBI
T-ECE,
KOLAR 1
 MANAGEMENTANDENTREPRENEURSHI
P

Busi
nessent
erpr
iseshav
eresponsi
bil
it
ytowar
ds

1.
Towar
dst
heConsumerandt
heCommuni
ty
2.
Towar
dsEmpl
oyeesandWor
ker
s
3.
Towar
dsShar
ehol
der
sandOt
herBusi
nesses
4.
Towar
dst
hegov
ernment
Abusi
nessman'
ssoci
alr
esponsi
bil
i
tiest
oeachoft
hesepar
ti
esar
ebr
ief
lyenumer
ated
bel
ow.
Towar
dst
heConsumerandt
heCommuni
ty
1.Producti
onofcheapandbet t
er-
quali
tygoodsandser
vicesbydevel
opi
ngnew ski
l
ls,
i
nnov at
ionsandtechni
ques,bylocati
ngf act
ori
esandmarket
satproperpl
acesandby
rat
ional
izi
ngtheuseofcapi
talandlabor
.
2.Level
li
ng outseasonalvari
ati
onsi
n employmentand product
ion t
hrough accur
ate
for
ecast
s,pr
oducti
onscheduli
ngandpr
oductdiv
ersi
fi
cat
ion.
3.Deciding pr
ior
it
ies ofpr
oduct
ion i
nthe count
ry'
sint
erestand conser
ving nat
ural
resour
ces.
4.Pr
ovi
dingf
orsoci
alaudi
t(seesect
ionbel
ow)
.
5.Honor i
ngcont r
act sandfollowinghonestt radepractices.Somei mportantbutdi shonest
tradepr acti
cesar e:maki ngmi sleadi
ngadv i
sement scal cul
atedt odeceivet hepur chaser:
mi sbrandingofar ticleswithr espectt otheirmater i
al.impediment s,qual i
ty,origi
n,et c.
;
selling r
ebuiltorsecondhand goodsasnew;pr ocuring businessort radesecr etsof
compet i
torsbyespi onage,briberyorot hermeans:r estraini
ngfreeandf aircompet i
tionby
ent eri
ngintocombi nat i
onagr eement s;usingcontainerst hatdonotgi veacor rectideaof
thewei ghtandquant ityofapr oduct;maki ngfal
secl ai
msofbei ngan"aut horizeddeal er"
.
"manuf acturer"or"i
mpor ter"ofcer t
aingoods;givingpr oduct smi sl
eadi
ngnamessoast o
givet hem a v al
ue whi ch theydo notpossess;decl ari
ng oneselfi nsolventt hrough
quest i
onablefinancial mani
pul at
ions.
6.Maki ngrealconsumerneedsast hecr i
ter
ionf orselecti
ngmessagest obegi v
enby
productadverti
sement s.Nearlyallcurrentadverti
singseekst ocreatewant s.Thus.peopl e
nolongerbuysoapt omaket hem clean.Theybuyt hepromiset hatitwoul dmaket hem
beauti
ful.Toothpastei sboughtnott okillbacteri
abutt ocreatewhi t
et eeth.Carsar e
boughtf orpresti
ger atherthant ravel.Evenf oodstuffssuchasor angesar eboughtf or
vi
tali
ty,notnut rit
ion.Thi s kind ofadv ert
isi
ng pr omotes ov er-consumpt ion,forces
consumer st oconstant l
ycompar et hemselvesnegat ivel
ywi thot hers,createsint hem
di
ssatisfact
ionwiththeol dandout moded.andmakest hem feelthatwi t
houtapar ticul
ar
brandofapr oducttheyar el
oser s.
7.Pr
event
ingt
hecr
eat
ionofmonopol
i
es.Monopol
i
esar
ebadi
nthatt
heymaket
he

CBI
T-ECE,
KOLAR 2
 MANAGEMENTANDENTREPRENEURSHI
P

communityfacehighpri
ces,shortsuppl
yandinfer
iorqual
i
tyofgoods.I
nequal
it
iesof
wealthdi
str
ibut
ionareaccent
uatedandthestandar
dsofpubli
cmorali
tydet
eri
orateas
bri
bingt
he
j
udges.l
egisl
ator
sandthegov
ernmentt
ogai
nfav
orsbecomesv
erycommon.8.Pr
ovi
ding
f
orafter
-sal
eservi
ci
ng.
9.Ensur
inghygi
eni
cdisposalofsmokeandwast
eandv
olunt
ari
l
yassi
sti
ngi
nmaki
ngt
he
townenvir
onmentaest
heti
call
ysat
isf
ying.
10.Achiev i
ngbet
terpubli
cr el
ati
ons(thati
s,cr
eat
ingamor efavor
abl
eatti
tudet
owards
the ent
er pri
se)by gi
ving tot he community
,true,adequat
e and easi
lyint
ell
i
gibl
e
i
nformationabouti
tsworking.
11.Suppor
ti
ngeducat
ion.sl
um cl
ear
anceandsi
mil
arot
herpr
ogr
ams.
Towar
dsEmpl
oyeesandWor
ker
s
1.Afai
rwaget ot
hewor ker
s(andnotmer
elyonedetermi
nedbymar
ketf
orcesofsuppl
y
anddemand),
whichispossi
bleonl
ywhent
hebusinessmaniswi
l
li
ngt
oacceptavol
untar
y
cei
li
ngonhisownprofi
ts.
2.Justselect
ion,t
rai
ningandpromoti
on(
wit
houtanydi
scr
imi
nat
ionongr
oundsofsex,
race,
rel
i
gionandphy si
calappear
ance)
.
3.Soci
alsecur
it
ymeasur
esandgoodqual
i
tyofwor
kli
fe.
4.Good human relati
ons (
i.e.
,mai
ntai
ning i
ndust
ri
alpeace,creati
ng condi
ti
ons for
col
l
ecti
vebar
-gai
ning,educat
ingwor
ker
stopr oducet
hei
rownleadershi
pandparti
cipat
ive
management
).
5.Freedom, sel
f-
respectandsel f-
real
i
zati
on.Abusinessmanshoulddev otehi
sknowledge
andabi li
tynotonlyt omaki nghisworker'
sli
femoreaf f
luent
,butalsot omakingi
tmor e
sati
sfyingandrewar ding.Thereshoul
dheanawar enessthatthequali
tyofman'sli
feisas
i
mpor tantasthe-quant i
tyofhi
smat er
ialweal
th.
6.Increasei
nproducti
vit
yandef f
ici
encybyr
ecogni
ti
onofmer
it
,bypr
ovi
dingoppor
tuni
ti
es
forcreati
vet
alentandincent
ives.
Towar
dsShar
ehol
der
sandOt
herBusi
nesses
1.Pr
omot
inggoodgov
ernancet
hroughi
nter
nal
account
abi
l
ityandt
ranspar
ency
.
2.Fair
nessinr el
ati
onswi t
hcompet i
tors.Compet i
ti
onwi thriv
albusi nessmenshoul d
al
waysbef ai
randheal thy,basedonr ulesofet hicsandf ai
rplayratherthanonr ul
esof
warf
are.Busi
nessmensomet imestreatthei
rrivalsasenemi esandt r
yt ohar m eachother
bymalici
ouspropaganda,pri
ce-cut
ti
ng, i
nterf
erenceinpr oduct
ionanddi st
ributi
on.
Towar
dst
hegov
ernment
1.Shunni
ngact
ivepar
ti
ci
pat
ioni
nanddi
recti
dent
if
icat
ionwi
thanypol
i
tical
par
ty.
2.Obser
vingal
lthel
awsofl
andwhi
chmayhav
ethef
oll
owi
ngobj
ect
ives:
(
a)Topr
ovi
dedi
rect
iont
otheeconomi
candbusi
nessl
i
feoft
hecommuni
ty.

CBI
T-ECE,
KOLAR 3
 MANAGEMENTANDENTREPRENEURSHI
P

(
b)Tobr i
ngaboutharmonybet
weent
hel
i
mit
edent
erpr
isei
nter
estandt
hewi
dersoci
al
i
nter
estofthecount
ry.
(
c)Topr
ovi
desaf
eguar
dagai
nster
rantbusi
nesspr
act
ices.
(d)To compelbusi
ness to playfai
rto al
lpar
ti
cipant
sint
he economy
—empl
oyees,
shar
ehol
ders,
minor
it
yshareholder
s,et
c.
(e)Toprev
entoppressi
onorexploit
ati
onoft
heweakerpar
tner
sinbusi
ness,suchas
employ
ees,mi
nor
it
ysharehol
der
s,etc.
(
f)Toenfor
cemaxi
mum product
ionaccor
dingt
othepr
ior
it
yofsect
orsandpr
oduct
ion
l
i
neslai
ddownbyt
hegov
ernment.
(
g)Toal
l
ocat
eli
mit
edr
esour
cesaccor
dingt
osoci
alpr
ior
it
iesandpr
efer
ences.
(
h)Toenf
orcedi
str
ibut
ivej
ust
ice,
especi
all
ytoweakersect
ionsoft
hecommuni
ty.
(
i)Toi
mpl
ementr
ural
upl
i
ftandsecur
ebal
anceddev
elopmentoft
hecount
ry

SOCI
ALAUDI
T
A socialaudi
tis a syst
emati
c study and eval
uation ofthe organi
zat
ion’
s soci
al
perf
ormance as di
sti
ngui
shed f
rom its economic performance.The term "soci
al
perf
ormance"ref
erstoanyorgani
zati
onalacti
vit
yt hateffect
sthegeneralwelfar
eof
soci
ety.
BENEFI
TS
1.I
tsuppl
iesdat
af orcompari
sonwi
tht
heorgani
zati
on’
ssocialpoli
ciesandst
andar
ds.
Themanagementcandeter
minehowwel
li
tisl
i
vinguptoi
tssocialobj
ecti
ves.
2.Itdevel
opsasenseofsoci alawar
enessamongal lempl
oyees.I
ntheprocessof
prepar
ingr
eport
sandrespondingtoevaluat
ions,empl
oyeesbecomemoreawareofthe
social
impl
i
cati
onsoft
heiract
ions.
3.I
tpr
ovi
desdat
aforcompar
ingt
heef
fect
ivenessofdi
ff
erentt
ypesofpr
ogr
ammes.
4.Itpr
ovidesdataaboutthecostofsoci
alprogr
ammes,sothatthemanagementcan
rel
atet
hisdatat
obudgets,
avai
labl
eresour
ces,
companyobj
ect
ives,
etc.
5.I
tprov
idesinf
ormati
onf
oref
fect
iver
esponset
oext
ernalgr
oupswhi
chmakedemands
ontheor
ganizat
ion.
LI
MITATI
ONS
Asoci alaudi
tisaprocessaudi
tratherthananaudi
tofr
esults.Thi
smeanst hatasoci
al
auditdetermi
nesonlywhatanorganizat
ionisdoi
ngi
nsocialareasandnottheamountof
soci
algoodt hatr
esult
sf r
om theseact i
vi
ti
es.Anaudi
tofsoci alresul
tsisnotmade
because:
1.They ar
e di
ff
icul
tto measur
e.I
f.f
orexampl
e,f
oll
owi
ng a company
's S.
C./
S.T.

CBI
T-ECE,
KOLAR 4
 MANAGEMENTANDENTREPRENEURSHI
P

employmentprogr
ammeinacer
tai
nregi
on.t
her
eisafalli
nthevi
olentcr
imerat
eby4per
cent
,iti
sdif
fi
cultt
omeasur
ehowmuchofthebenef
iti
scausedbythispr
ogramme.
2.Thei
rclassi
fi
cat
ionunder"
good"or"bad"isnotuni
ver
sall
yaccept
ed.I
not herwor
ds,the
samesoci alr
esultmaybecl assedas" good"accor
dingtooneopinion,andas" bad"
accor
dingtoan-ot
her.
3.Mostofthem occurout
sidetheorgani
sat
ion,maki
ngi
tdi
ff
icul
tfort
heor
gani
sat
iont
o
secur
edatafrom t
heseout
sidesources.
Eventhoughsocialresul
tscannotbepr oved,anauditofwhatisbei ngdonei ssti
ll
consi
dereddesi
rabl
e,becausei
tshowst heamountofef f
ortt
hatabusinessismakingi
n
areadeemedbenef i
cialtosoci
ety.Furt
her,i feff
ortcanbemeasur ed,theninf
ormed
j
udgementscanbemadeaboutpot enti
alresults.
Socialaudi
tscanbemadeei t
herbyinternalexpert
s,outsi
deconsultants,oracombinat i
on
ofthet wo.Theint
ernalaudi t
orhast headv ant
ageoff amil
iar
it
ywi ththebusiness,buthis
j
udgement smaybei nfluenced bycompanyl oy
alti
es.Anout sideconsul t
anthast he
advantageofanout si
der '
sv i
ew,buthel acksfamili
ari
tywithorganisati
onalacti
vit
ies,so
hemayov erl
ooksigni
ficantdata.Inanycase,i fauditi
nfor
mat i
oni stober el
easedt othe
publi
c,theoutsi
deauditorhasmor ecredibi
li
ty.
Thereisadi
ffer
enceofopi nionont heissuewhet hersocialaudi tshoul
dbemadepubl icby
meansofasoci alperfor
mancer eportornot.Somesayt hatt hesereport
sar etoovague
andinconcr
etetosat i
sfythepubl icandany onecanf i
ndr easonsf orcri
ti
cisi
ngaf ir
m's
perf
ormance,whichcanincr easesocialconfl
ict.Butsomeot hersassertt
hatthesereport
s
contr
ibut
etopublicunderstandingfortheyreplacerhetori
cwi thf act
s.
TheTat aIronandSteelCompanyi sthefirstindustri
alorgani
sati
oninIndiat
ohav ecarri
ed
outasoci alauditofitsperfor
mancei n1979.Thesoci alauditwasconduct edbya
commi tt
eeundert hechair
manshi pofJust i
ceS. P.Kotval
,for
merChiefJusticeofMumbai
HighCour t.Thecommi t
tee'
stermsofr eferencewer et oexamineandr epor
twhether,and
theextentt owhichthecompanyhadf ul
fill
edt heobjecti
vescontai
nedi ncl
ause3Aofi t
s
Arti
clesr egardi
ngitssocialandmor alr esponsibi
li
ti
est otheconsumer s,empl oyees,
shareholders,soci
etyand thel ocalcommuni t
y.TheCommi tteeini t
sr epor
tpr ai
sed
TISCO's socialwelfare work and made a numberofsuggest ions toi mprovei t
s
programmes.

BUSI
NESSETHI
CSANDCORPORATEGOVERNANCE
BUSI
NESSETHI
CS
Busi nesset hicsistheappl i
cati
onofmor alpri
ncipl
est obusinessprobl
ems.Howev er
,
ethicsext endbey ondthequestionoflegali
tyandinvolvethegoodnessorbadnessofan
act.Ther efore,anactionmaybel egal
lyrightbutethical
lywrong.Forexample,asmall
vil
lagecommuni t
ylocatedtwentymil
esf r
om theclosesturbanshoppi
ngareahasasingle
grocer '
sshop.Theowneroft heshopcanchar geanyexor bi
tantpri
ceforhisproduct
thoughl egallybutnotethi
call
y.
Sex
ualhar
assment
,di
scr
imi
nat
ioni
npayandpr
omot
ionandt
her
ightt
opr
ivacyar
esome

CBI
T-ECE,
KOLAR 5
 MANAGEMENTANDENTREPRENEURSHI
P

ot
heri
ssuesspeci
all
yrel
evantt
othest
udyofet
hics.
Sexualhar assmenti nt hewor kplacecanbedef inedasunwel comesexualadvances,
sexualfavororotherv erbalorphy sicalconductofasexualnat ur
e.Alt
houghthel
andmar k
j
udgmentoft heSupr emeCour tint hecaseofVi shaka&ot hersvsStateofRajasthan
makesi tamandat or
ydut yoftheempl oy ertopr ev entthi
smi sconductatt
heworkplace,i
t
doesnotappeart hatthesensitivi
tyoft oday'sor gani sat
ionshaskeptpace.Thenegat i
ve
aspectsofsexualhar assmentar e:cost lylawsui ts,decreased pr
oducti
vi
ty,i
ncreased
absenteei
sm, lowermor aleandhi gherst affturnov er.
Discr
iminat
ionagainstwomeni npayandpromot i
onoppor t
unit
iesisalsounet
hical
,whi ch
conti
nuestoexistdespit
et herebeingt
heEqualRemuner at
ionAct,1976.Oneofthemost
commonl ycit
edreasonsf orthelackofpromoti
onsofwomeni stheglasscei
l
ingeffecta
term usedforarti
fi
cialbarri
ersbasedonat ti
tudinalororganisati
onalbiast
hatprev ent
quali
fi
ed women f rom progressi
ng intheorgani sat
ion i
nto seni
ormanagementl ev el
posit
ions.
Employees'ri
ghttopr
ivacyrai
sesseveralquesti
ons,someofwhichar
e:"
Canacompany
ref
usetohi r
esmokersand/ormakecur rentsmokersquitsmoki
ng"
?and"
Canacompany
conductdrugtest
sonitsprospect
iveemployees"
?
Itshoul
d be remembered t hatt he corpor
ate" shi
eld"whi ch pr
otect
s a company '
s
managementfrom unli
mitedl egalli
abil
it
ydoesnotpr ot
ectitagainstunl
imit
edpubl i
c
condemnat
ionfori
tsunethicalandimmor alacti
ons.Thecr edi
bil
i
tyofabusinessdepends
onitshi
ghbusi
nessethi
csandi nt
egri
ty.
Howdoesamanagerdecidewhati
set
hicalorunet
hical
?Ther
ear
efouri
mpor
tantf
act
ors
whi
chaff
ecthi
sdeci
sion.

 Gov
ernmentl
egi
sl
ati
on.

 Busi
nesscodes.(Butbei
ngv ol
unt
aryi
nnat
uret
hesecodes,t
houghpoi
ntedt
owi
thpr
ide,
ar
eusuall
yignor
edinpracti
ce.)

 Pressur
egroups.(Forexampl
e,i
nrecentyear
sIndi
ancarpeti
ndust
ryhasbeenf
aci
ng
consumerboycot
tfrom t
hewestf
oremploy
ingchi
l
dlabor
.)

 Per sonalv aluesoft hemanagerhi mself.(Butamanagerwi thstr

ongper sonalv alues
most l
yf i
ndshi msel finadilemmawhenanunet hicalcourseofact i
onbecomeshi sonl y
choi cetoachi evethecompany '
sgoal.Thi
shaspr ompt edmanymaj orbusinesshouses, to
teachexecut ivesthei mport
anceofr emaini
ngtruet otheirconv i
cti
ons,whetherrootedi n
or ganizedr eli
gionorper sonalmor al
it
y,amidt heconf l
ictingdemandsandt empt ations
theyconf rontwhent aki
ngdeci si
ons.New approaches( e.g.,aski
ngparti
cipantstowr i
te
theiraut obiogr aphies,asiftheyareattheendoft heirli
ves)ar ebei
ngtri
edt omaket hem
i
nspi ri
ngdeci sion-makers,withasenseofmor ali
ty."Under-promiseover-
deli
ver"i
samuch
-reveredmot toatInfosys.Thecompanycanexcusei ncompet encebutnotlackofethics.)

CORPORATEGOVERNANCE
Thet
erm"
cor
por
ategov
ernance"i
susedt
odenot
etheext
entt
owhi
chcompani
esr
uni
n

CBI
T-ECE,
KOLAR 6
 MANAGEMENTANDENTREPRENEURSHI
P

anopenandhonestmanneri nthebestinter
estofal lst
ake-holders.Thekeyelementsof
goodcor porat
egovernancear et r
anspar
encyandaccount abili
typrojectedthr
oughacode
whichincorporat
esasy stem ofchecksandbal ancesbetweenal lkeyplayer
s,viz
.,boar
dof
di
rector
s, audi
tor
sandst ake-
holders.I
nBri
tai
n,foll
owingcorporat
escandal si
ntheearly
1990s,acommi
tt
eewasappointedin1991undert
hechai
rmanshi
pofSi
rAdr
ianCadbur
yto
prepar
eacodeforbestcor
porategover
nance.Maj
orr
ecommendati
onsoft
hiscommitt
ee
areasunder
:
•Non-executi
vedir
ector
swhosemostimportantrol
eistobringanindependentj
udgementt
o
bearonissuesofstrat
egy,per
for
mance,
resources,
etc.shouldbepickedthr
oughaformal
sel
ecti
onpr ocessonmerit
s.
•Companiesshouldhaveremuner
ati
oncommi
tteesconsist
ingwholl
yormainl
yofnon-
execut
ivedi
rect
orswhichshoul
drecommendt
ot heboardexecut
ivedir
ect
ors'
emolument
s.
Companiesshoul
dhaveaudi
tcommitt
eesconsi
sti
ngofmini
mum 3non-
execut
ivedi
rect
ors
tor
eportonanymatt
errel
ati
ngtof
inanci
almanagement
.
•Audi
tpar
tner
sshoul
dber
otat
edandt
her
eshoul
dbef
ull
erdi
scl
osur
eofnon-
audi
twor
k.
Thisisavol
unt
arycodeandhasonl
ysomemor al
pressur
eoftheLondonStockExchange
requiri
ngcompani
estoment i
onint
hei
rannual
repor
twhethert
heyarefol
lowi
ngthecode,
andi fnot,
why.
Benef
it
sofGoodCor
por
ateGov
ernance
I
.Itcr
eat
esov
eral
lmar
ketconf
idenceandl
ong-
ter
mtr
usti
nthecompany
.
2.I
tleadst
oani
ncr
easei
ncompany
'sshar
epr
ices.
3.I
tensur
est
hei
ntegr
it
yofcompany
'sf
inanci
alr
epor
ts.
4.I
tmaxi
mizescor
por
atesecur
it
ybyact
ingasawhi
stl
ebl
ower
.
5.I
tlimi
tst
hel
i
abi
l
ityoft
opmanagementbycar
eful
l
yar
ti
cul
ati
ngt
hedeci
sion-
maki
ng
pr
ocess.
6.I
timprov
esst r
ategi
cthi
nki
ngatthet
opbyi nduct
ingi
ndependentdi
rect
orswhobr
inga
weal
thofexper
ienceandahostofnewi
deas.
MANAGEMENT&ENTREPRENEURSHI P
B.
E.,
VSemester
,Elect
ronics&Communi cat
ionEngi
neer
ing
[AsperChoi
ceBasedCr edi
tSystem (
CBCS)scheme]
[Subjectcode:15EC51]

MODULE–3b
ENTREPRENUERSHI
P
ENTREPRENEUR
Meani
ngandev
olut
ionofconcept
:
Thet
erm"
Ent
repr
eneur
"isdef
inedi
nvar
iet
yofway
s.I
tvar
iesf
rom count
ryt
ocount
ry,

CBI
T-ECE,
KOLAR 7
 MANAGEMENTANDENTREPRENEURSHI
P

t
imet
oti
meandt
hel
evel
ofeconomi
cdev
elopment
.
Thewor d"
entr
epr
eneur"isderiv
edf rom t
heFr
enchverb"ent
repr
endr
e"whi
chmeans"to
under
take"
.In16t
hcent ur
y ,t
heFr enchmenwhoorgani
zedandl edmil
i
tar
yexpedi
ti
ons
wereref
err
edtoas"ent
repreneurs"
.
Inearl
y18thcentur
y,Fr
encheconomistRichar
dCant i
l
lonusedthewor dentr
epreneurto
busi
ness.Si
ncethenthewordentr
epreneurisusedtoonewhot akestheri
skofst at
ing
neworgani
zati
onorbusi
nessori
ntroduci
nganewi dea,pr
oductorserv
icetosoci
ety.
Accordi
ng t
o Joseph Schumpeter"An ent
repreneurin an advanced economy,is an
i
ndivi
dualwhointr
oducessomethingnewintheeconomyamet hodofproducti
onnotyet
test
edbyexper i
enceint hebranchofmanuf actureconcerned,aproductwi thwhich
consumersarenotyetfamil
i
ar,anewsourceofr awmat er
ial
sorofnewmar ketsandthe
l
ife”
.Accor
dingl
ytohimt hef
uncti
onsofanentr
epr eneur
shi
par e:
I
ntr
oduct
ionofnewpr
oductI
ntr
oduct
ionofnewmet
hodsofpr
oduct
ion
•Dev
elopmentofnewmar
ket
sandf
indi
ngf
reshsour
cesofr
awmat
eri
alsand
•Maki
ngchanges
Cant i
l
londefinedentr
epreneuras"Theagentwhobuy sf actor
sofpr oduct
ionatcer tai
n
pricesinordertocombinethem i
ntoapr oductwi
thaviewt osell
i
ngi tatuncertai
nprices
i
nf ut
ure"
.Tosummar i
es,"anentr
epreneuristheper
sonwhobear sr i
sk,uni
tesv ar
ious
factorsofproducti
on,toexplor
etheper cei
vedoppor
tuniti
esinor dertoev okedemand,
createwealthandemployment".

I
MPORTANCEOFENTREPRENEUR
Entrepr
eneurshipisthedynamicprocessofcr eati
ngincrement
alwealthandinnovati
ng
thi
ngs ofv alue thathav
e a beari
ng on the welfar
e ofan ent r
epr
eneur.Itprovi
des
civ
il
izat
ionwi thenormousamountofgoodsandser vicesandenhancest hegr
owt hof
socialwelf
are.Themanbehi ndtheent r
epreneurshi
pi sanactionori
entedandhi ghl
y
mot i
vat
edindividualwhoi
sreadytoachiev
egoal s.
M.Kirzner(
1973)observesent
repr
eneur
sas;“
onewhoper
cei
veswhatot
her
shav
enot
seenandactsuponthatper
cept
ion”
.
Thus,ent
repr
eneur
staketheeconomyandt
hesoci
etyt
hati
sthewhol
eci
vi
li
zat
iont
othe
st
ateofprogr
essandprosper
it
y.
Taki
ng thi
si nt
o consi
der
ati
on we can descr
ibe t
he Si
gni
fi
cance ori
mpor
tance of
entr
epr
eneurswhichi
sstat
edbel
ow

1.Gr
owt
hofEnt
repr
eneur
shi
p
Entrepr
eneurshi
pt headventofnew vent
ureparti
cul
arl
ysmal
lvent
uresinor
derto
mat
eri
ali
zetheinnovat
iveideasoftheent
repr
eneurs.Thus,
thegr
owt
horestabl
i
shmentof

CBI
T-ECE,
KOLAR 8
 MANAGEMENTANDENTREPRENEURSHI
P

smallent
erpr
isesi
ithespeci
fi
ccont
ri
but
ionofent
repr
eneur
shi
pini
nev
eryeconomyof
theworl
d.
Thestat
ist
icsrevealsthati
nUSA economynearlyhalfami l
l
ionsmal
lent
erpr
isear
e
est
abl
i
shedev er
yy ear
.Ourcount
ryi
snotanexcept
ioni
nthi
sregard.
2.ACr
eat
ionofj
oboppor
tuni
ti
es
Entr
epreneur
shi
pfir
mscont r
ibut
edal ar
geshareofnewjobs.Itpr
ovi
desent
ry-
lev
el
j
obssonecessar
yfurt
rai
ningorgai
ningexperi
encef
orunskil
l
edwor ker
s.
Thesmal lenter
pri
sesarctheonl
ysectorthatgenerat
eslar
geporti
onoftotalemploy
ment
ever
yy ear.Moreover
,ent
repr
eneur
ial
venturesprepareandsuppl
yexper
iencedlabortot
he
l
argeindustri
es.
3.I
nnov
ati
on
Entr
epreneurshi
pisthei
ncubat
oroft
hei
nnov
ati
on.I
nnov
ati
oncr
eat
esdi
sequi
l
ibr
ia
i
nthepresentstat
eofor der
.
Itgoesbeyonddi
scoveryanddoesimplement
ati
onandcommerci
ali
zat
ion,
ofi
nnov
ati
ons.
“Leap f r
og” i
nnovati
on, resear
ch, and devel
opment ar
e being cont
ri
but
ed by
entrepr
eneur
shi
p.
Thus,entr
epreneur
shi
p nur
sesinnovati
on t
hatpr
ovidesnew vent
ures,pr
oduct,
technol
ogy,mar ket,qual
i
tyofgoodetc.t
ot heeconomythati
ncreaseGr
ossDomest i
c
Productsandstandardofl
ivi
ngoft
hepeople.
4.I
mpactoncommuni
tydev
elopment
Acommuni t
yisbet
terof
fifi
tsempl
oymentbasei
sdi
ver
sif
iedamongmanysmal
l
ent
repr
eneur
ial
fir
ms.
Itpr
omot esabundantret
ail
facil
i
ties,
ahigherl
evelofhomeowner shi
p,fewerslums,
bett
er,sanit
ationstandardsandhigherexpendi
tureofeducati
on,r
ecreati
onandr el
igious
acti
vi
ties.Thus,ent
repreneur
shi
pleadstomor estabi
li
tyandahigherquali
tyofcommuni ty
l
ife.
5.
Consequenceofbusi
nessf
ail
ure
Thecol
lapseoflar
geindustr
yalmosthasirr
esi
sti
bledamaget ot
hedev el
opmentof
st
ateandt othestateofeconomyandt othefi
nanci
alcondit
ionoftherel
evantpersons.
Theincumbentslostt
heirj
obs:suppli
ersandfi
nanci
ali
nsti
tut
ionsfaceacri
sisofrecover
y.
Customersaredepri
vedfrom goods,ser
vices,andt hegov ernmentlossestaxes.
Thi
scoul dnothappeni nthecaseoff ai
l
ureofent repreneurship.Ther
eshal lbeno
measurabl
eeff
ectupontheeconomyandnopol i
ti
cal r
epercussionst oo.
6.Pol
i
ticalandeconomi
cint
egr
ati
onofout
sider
s
Entr
epreneurshi
pist hemosteffect
ivewayofint
egrati
ngthosewhof eeldi
sposed
andali
enatedintothconomy .Minor
it
ies,migr
antsandwomenar esafel
yint
egrat
edinto
ent
repr
eneurshi
pt hatwil
lhelpl
odevelopawell-
composedplural
societ
y.
7.Spawnsent
repr
eneur
shi
p

CBI
T-ECE,
KOLAR 9
 MANAGEMENTANDENTREPRENEURSHI
P

Entrepr
eneurshi
pisthenursi
nggroundfornewi nexperi
encedadvent
urists.I
tisthe
fi
eldwher eaper soncanstarthi
s/heri
deaofv ent
ure,whichmaybeendedupi nagiant
enter
prise.All
thelargei
ndustr
ial
ventur
esstar
tedasasmal lent
repr
eneuri
alenterpr
ise.
Ther
efor
e,entr
epr
eneur
shippr
ov i
deswi
despect
rum ofv
enturesandentrepr
eneur
s
i
nev er
yeconomy .Thevastopenarenaofentr
epr
eneur
shipthus,act
sasi ncubatort
o
ent
repr
eneur
s.
8.Enhancesst
andar
dofl
iv
ing
Standar
dofli
vingi
saconceptbui
ltoni
ncr
easi
ngamountofconsumpt
ionofv
ari
ety
ofgoodsandserv
icesoverapar
ti
cul
arperi
odbyahousehol
d.
So i
tdependson avai
l
abi
li
tyofdiver
sif
ied product
si nthemar ket
.Ent
repr
eneur
shi
p
pr
ovi
desenormouski
ndspr
oductofv
ari
ousnat uresbythei
rinnov
ati
on.
Besides,itincreasestheincomeoft hepeoplewhoar eempl
oyedintheent
repr
eneuri
al
enterpri
ses.Thatal socapabl
eempl oyedper
sonstoconsumermoregoodsandservi
ces.
Ineffectentrepreneur
shipenhancesthest
andardofl
i
vingoft
hepeopl
eofacountr
y.
9.Pr
omot
esr
esear
chanddev
elopment
Entrepreneur
shipisinnov
ation and hence the i
nnov at
ed ideas ofgoods and
serv
iceshav etobetest
edbyexperi
ment ati
on.Ther
efore,
entrepr
eneurshipprovi
desfunds
forresearchanddev el
opmentwithuniversi
tiesandresearchinsti
tut
ions.Thispromotes
thegeneral devel
opmentofr
esearchanddev elopmenti
ntheeconomy .
Ent
repreneurshipisthepi
oneerzealt
hatprov
idesev
ent
si n ourcivi
l
izat
ion.Wear e
i
ndebtedtoitf orhav
ingpr
osper
it
yinev
eryar
enaofhumanli
fe-economic,t
echnol
ogi
cal
andcultur
al.
Theabov
ediscussi
oni
nanut
shel
lenumer
atest
hatt
remendous’cont
ri
but
ionsof
ent
repr
eneur
shi
p.

CONCEPTOFENTREPRENEURSHI
P:
Entrepreneurshi
pi sa processunder taken byan ent repreneurt o augmenthi s
businessi nt
erests.Someaut horsdefi
neitas" Entr
epreneurshi
pi sthei ndiv
isibl
epr ocess
fl
ourishes.whent heint
erli
nkeddimensionsofi ndi
v i
dualpsychologicalentrepreneurship.
entr
epr eneurtrai
ts.socialencouragement.businessoppor t
uniti
es.Gov er
nmentpol i
cies,
avai
labili
ty of resources and oppor t
unit
ies cov er
age towar ds t he common good.
developmentoft hesocietyandeconomy ".
Entr
epr
eneurshi
pli
esmor eintheabil
i
tytomini
mi zetheuseofresourcesandtoputt
hem
tomaximum advantage.Aboveall
,entr
epr
eneurshipintoday
'scontextisthepr
oductof
teamworkandtheabil
it
ytocreat
e,bui
ldandworkasat eam.
Entr
epreneurshipistheprocessofi dent
if
yingopport
uni
ti
esinthemar
ketplace,arr
angi
ng
theresour
cesr equir
edtopur suetheseopportuni
ti
esandinv
ert
ingt
heresourcestoexpl
oit
theopportuni
ti
esf orbet
tergains.
Hi
ggi
ns def
ined ent
repr
eneur
shi
p as "
the f
unct
ion of f
oreseei
ng i
nvest
ment and

CBI
T-ECE,
KOLAR 10
 MANAGEMENTANDENTREPRENEURSHI
P

product i
onopportunit
ies,organi
zinganenterpr
iset
oundert
akeanewpr oduct
ionprocess,
rai
singcapi t
al.hi
ringlabor,arr
angingthesuppl
yofrawmat er
ial
s,fi
ndingsit
e,int
roduci
ng
new t echni
que,discoveri
ngnew sour ceofraw mater
ial
sandselecti
ngt opmanager sfor
day-to-dayoperat
ion.
Cole'
sdefi
niti
onforentrepr
eneurshipi
s"t
hepurposef
ulacti
vi
tyofanindi
vi
dualora
gr
oup ofassociated i
ndi
vidualsundertakentoini
ti
ate,maint
ainororganizeprof
itby
pr
oducti
onordistr
ibuti
ngofeconomi cgoodsandservi
ces"
.
Riskbear
ing,innovati
ngandresour
ceor gani
zing,achiev
inggoalt
hroughproducti
onof
goodsorser vi
ces.Alltheabovedefini
ti
onshi ghl
ighttheri
skbeari
ng,innovat
ingand
resour
ceorganizi
ng,achi
evi
nggoalt
hroughproducti
onofgoodsorservi
ces.

CHARACTERI
STI
CSOFSUCCESSFULENTREPRENEUR:
Theprocessofent
repr
eneurshi
pisacomplexonehavingmulti
dimensi
onalchar
act
eri
sti
cs.
Thefol
lowingar
esomeoft hecommonlyacceptedcharact
eri
sti
cssuggest
edbyexper
ts.
(
i)I
nnov
ati
on
Entrepr
eneurshi
pinvolvesinnov
ati
onofnewt hi
ngstoef
fectdy
namicchangesandgood
successineconomy.Itshouldcr
eatecondi
ti
onsforgr
owt
hoftheeconomy.
(
II
)Ri
sk-
taki
ng
Riski
sainbuil
tel
ementofanybusi
ness.Ent
repr
eneur
shi
pshoul
dber
iskbear
ingt
ocat
er
uncer
tai
ntyoff
utur
e.
(
ii
i)Ski
ll
fulmanagement
Entr
epreneur
shi
p brings togethervari
ous f
uncti
ons oft
he management—pl
anni
ng,
or
ganizi
ng,st
aff
ing,
direct
ing,contr
oll
i
ngandleadi
ng.
(
Iv)Or
gani
zat
ion
I
tbr
ingst
oget
herv
ari
ousf
aci
l
iti
esofpr
oduct
ionf
oranef
fi
cientandeconomi
cal
use.
(
v)Deci
sionmaki
ng
Deci
sion-maki
ngi saver
yv i
talchar
act
eri
sti
cofanentr
epreneur
shi
p.Taki
ngdeci
sionsat
al
ll
evelsandstagesofanentrepr
eneur
shi
pisarout
inet
ask.
(
vi)Maki
ngt
heent
erpr
iseasuccess
Entr
epreneur
shipi
smainlyaneconomicacti
vi
tyasitdeal
swithcreati
ngandoperati
ngan
ent
erpri
se.i
tinv
olv
esinsati
sfyi
ngtheneedsofcust
omer swit
hthehelpofproducti
onand
di
str
ibut
ionofgoodsandservi
ces.Thi
smakestheenterpr
iseasuccess.
Ther
earecommonquali
ti
esorskil
l
sf oundi
nsuccessfulentr
epreneurs,expansi
onoft
he
word'
ENTREPRENEUR'
givesagoodideaofsuccessf
ulentr
epreneurs.
E-Ef
fect
iveCommuni
cat
or
N-Negot
iat
ingski
l
ls.

CBI
T-ECE,
KOLAR 11
 MANAGEMENTANDENTREPRENEURSHI
P

T-Tot
alCommi
tment/Ti
memanagement/Tact
ical
/Team man
R-Ri
sk-
taki
ngabi
l
ity/Resour
cef
ul/Responsi
ble
E-Emot
ional
Stabi
l
ity/Et
hical
P-Pr
obl
em sol
vi
ng/Pat
ience/Passi
on/Per
sev
erance
R-Rel
ati
ons-
Human&publ
i
c/Real
i
sti
c/Resul
t-
ori
ent
ed
E-Ener
get
ic/Endur
ance
N-Net
wor
kingabi
l
ity
.
E-Excel
l
encei
n'Economi
cs'
U-Under
standshowt
oadmi
nist
erandor
gani
ze/Unambi
guous
R-Real
innov
ator
.

CLASSI
FICATI
ONOFENTREPRENEURS
Entr
epreneur
sinbusi
nesscanbebroadl
ycl
assi
fi
edbasedoncr
it
eriali
ke-stagesof
economicdev
elopment,t
ypesofbusi
ness,
useoft
echnol
ogy,ar
ea,
age,genderandsoon:

CBI
T-ECE,
KOLAR 12
 MANAGEMENTANDENTREPRENEURSHI
P

Amongallt
hediff
erenttypesofent
repr
eneur
s,weshal
ldi
scusst
hef
ir
stt
ype,as
descr
ibedbyDanhof,anAmerican:
1.I
nnov
ati
veEnt
repr
eneur

 Aninnov
ati
veentrepr
eneuri
sonewhoi nt
roducesanewproductoranewt
echni
que
oranewmar ketandcanre-
organi
zet
heenterpri
sei
fneeded.

 Theyaregener
all
yaggressi
veinexper
iment at
ionandseizeoppor
tuni
ti
es.-Theyar
e
capabl
eofconvert
ingatt
ract
ivepossi
bil
i
tiesintopr
act
ice.

 Theyrai
semoneyt ostar
tanenterpri
se,assembl
et hevari
ousfactor
s,chooset
he
ri
ghtemployeesandsettheor
ganizati
ongoing.I
nnovat
iveentr
epreneur
saremore
commonlyfoundindevel
opedcountri
es.

CBI
T-ECE,
KOLAR 13
 MANAGEMENTANDENTREPRENEURSHI
P

 Thi
si s because such ent
repreneur
s can wor
k onl
y when a cer
tai
nlev
elof
dev
elopmentisalr
eadyachieved.
2.I
mit
ati
veEnt
repr
eneurorAdopt
iveent
repr
eneur-

 Imitati
ve ent
repreneur
s aret hose who adoptorcopy successf
uli
nnov
ati
ons
createdbyinnovati
veentr
epreneurs.

 Theydonoti nnov
atethechangest
hemsel
ves,butonl
yimi
tat
etechni
quesand
technol
ogyi
nnovat
edbyother
s.

 Imit
ati
veentrepr
eneursaremorecommonl yfoundindevel
opingcount
ri
esbecause
peoplether
epr ef
ert oimit
ateproducts,t
echnol
ogy,knowledgeandskil
lal
ready
avai
labl
einmor eadvancedcount
ries.

 Theyar
enev
ert
hel
essi
mpor
tantf
ort
hedev
elopmentofpoorcount
ri
es.
3.Fabi
anEnt
repr
eneur

 FabianEnt
repr
eneur
sar
ethosewhoar
ever
ycaut
iousandar
eskept
icalaboutany
changes.

 t
heyhav
enei t
herthewi
l
ltoint
roduceanynewchangesnort
hedesi
ret
oadoptnew
met
hodsinnovat
edbyother
s,unl
esspushedtot
hewall.

 t
heyar
egener
all
ydr
ivenbycust
om,
rel
i
gion,
tradi
ti
onandpastpr
act
ices.

 t
heyi
mit
ateorbr
ingi
nchangesonl
ywheni
tisaquest
ionofsur
viv
al.
4.Dr
oneEnt
repr
eneur
s

 Dr
oneent
repr
eneur
sar
ethosewhoar
ehi
ghl
yresi
stantt
ochanges.

 Theyr
efuset
oadopt
,imi
tat
eormakechangesi
npr
oduct
ionmet
hods,comewhat
may.

 Theychooset
osi
nkr
athert
hani
mit
ateorbr
ingi
nchanges.

 Theymayev
ensuf
ferf
rom l
ossesbutpr
efert
ost
ickt
otr
adi
ti
onal
way
s.

 Such(
oldf
ashi
oned)ent
repr
eneur
sar
efoundpl
ent
yinI
ndi
a.

 I
deal
Jawa,
amot
orbi
kecompanybasedi
nMy
sor
eisanexampl
e

MYTHSOFENTREPRENEURSHI
P

Ent
repreneurshipisacareerwhichisgaini
ngpopular
it
yworldwidebutstil
lisn’tvery
wellunder
stoodwhi chiswhytherearesomanymy t
hsregardi
ngthiscareeropti
on.Al ot
ofpeoplebeli
ev ethesemy thstobet r
uewhi chiswhytheydon’tpursuetheirambi t
ionof
bei
nganent repreneurdespitehavingagreatidea.So,i
fyou’r
esti
llconfused,don’twor r
y,
we’
v egotthemostcommonmy thsdebunkedforyou.

1.Ent
repr
eneur
sar
ebor
n,notmadThi
sist
hemostcommonmy
tht
hatdet
erspeopl
e

CBI
T-ECE,
KOLAR 14
 MANAGEMENTANDENTREPRENEURSHI
P

fr
om becomi ngentrepr
eneur s.However,t
hisiscomplet
elyunt
rue.Anormalpersonwi t
h
anideawhi chsol
vesapr oblem thesociet
yisdeali
ngwithcanbecomeanent r
epreneurif
hewor ksoncer t
ainski
ll
s.I foneisreadytodev el
oponleader
shipandmanagerialski
ll
s
andisn’tscar
edtotakerisks,onecanaimt obecomeasuccessfulent
repr
eneur
.

2.Al
lyouneedi
smoney

This mythi s notcompl etelyjust

if
ied because y ou mayhave greatinvest
ors
pumpinginalotofmoneyi ntoy ourventur
ebutifyou’reideadoesn’
tappealtothepeople,
theywil
lnotbuyy ourproductorser vi
ce.Thus,moneymi ghtbeimportantbutiti
smor e
i
mportanttousethemoneywi selyinpl
aceswher eiti
sr equir
ed.

3.Ent
repr
eneur
sar
eusual
lycol
legedr
op-
out
s

Thisi
sacommondi sbel
i
evebecausegr eatpeopleli
keMar kZuckerberg,Mukesh
AmbaniandSt eveJobshav emanagedt obecomesuccessf ulentrepr
eneurswi t
houta
col
legedegree.Howev er
,aformalandeducatedbackgroundonlyhelpsanentrepreneurt
o
understandconceptsandthebusinessbett
er.Anent r
epreneurbecomesonebecauseof
hi
sideaanddev el
opedskil
l
ssetandnothiscoll
egedegr ee.

4.Youneedanoutoft
heboxi
deat
ost
artup

Thi
sisanothermy t
haboutentrepreneur
shi
pwhichneedstobedebunked.Itistrue
thaty
ouneedani deat odeveloponbutt heideadoesn’
tneedtobeacompl etel
ynewor
i
nnovativeone.Runningar est
aurant,schooloranyki
ndofabusinessoraddingv al
uet o
analreadyexist
ingideawhi chsolvesproblemsofthesociet
ycanalsoserveasagr eat
baseforentr
epreneurship.

5.Hav
ingnobosst
hebestf
eel
ing

Alotofpeopleconsiderentrepreneur
shi
pbecauset heybeli
evetheywillgettoset
thei
rownt er
msatwor kandl eadat eam.Howev er,t
hismightnotbeaf avourablescenari
o
foreveryventur
e.Withideaslikeleadershipcoachescat chi
ngup,itisprovedt hateven
entr
epreneurswholeadat eam requir
ehelpfrom superi
orsinordertosucceed.

6.Youneedt
heper
fectt
imi
ng

People often commentsay i

ng t
hatitis actuall
yl uckwhi ch wil
lmake you a
successfulentr
epr eneur
.Theybeliev
ethati
tisimportantthatthetimeisri
ghtanddestiny
i
si nyourf avour.Howev er,thehist
oryofentr
epreneurshaspr ovedt hi
st obeabsolute
rubbi
shassuccessf ulpeopleli
keReidHoff
man, t
hefounderofLi nkedI
n,gotsuccessonly
l
aterintheirl
if
einspi teofabr i
l
li
anti
dea.

7.St
art
ingabusi
nessi
sn’
tthatdi
ff
icul
t
Al otofentr
epreneur
sweseear en’
tcoll
egepassoutswhichhasl
edtothecommon
bel
iefthatentrepr
eneurshi
pisn’
tverydif
ficul
ttoachiev
e.Inst
eadofattendingri
gor
ous
cl
asses,theyconcent
r at
edondevel
opingaskill
ssetandanideawhicht
hey’vegrownonl
y

CBI
T-ECE,
KOLAR 15
 MANAGEMENTANDENTREPRENEURSHI
P

duetothei
rhardwork.Atypi
calent
repr
eneurf
ail
smanyt
imesbef
ores/
hecansucceed
anddef
eati
ngfai
lur
eisn’
tev
eryone’
scupoftea.

ENTREPRENEURI
ALDEVELOPMENTMODELS
The model
sfort
he dev
elopmentoft
he ent
reneur
shi
pfal
lint
he f
oll
owi
ng
cat
egori
es
1.Psy
chol
ogi
calmodel
s
2.Soci
ologi
calModel
s
3.I
ntegr
atedModel
s
1.Psy
chol
ogi
calmodel
s
McCl
ell
andi
n1961hasgi
venaSi
gni
fi
cat
ionofdet
ermi
nant
sofent
reneur
shi
p.
I
nthismodelheascribesi
mpor
tancet
otheachi
evementmot
iveswhi
chear
li
err
elat
ed
‘
’
chi
ldrear
ingpr
act
ices”
ButD.G Wint
eri
n hi
smodelhasascr
ibed i
thasi
ntr
insi
cdet
ermi
nantoft
he
achi
evementmoti
ve
Nowchangei nmot i
vati
onisseenpri
mari
lyasaresultoftheideologi
calar
ousalof
the t
alentneed forachievements among t
he adul
ts.Af t
eri dent
if
ying achi
evement
ori
ent
ationasthekeyv
ariabl
esinthedevel
opmentofentr
eneurship.
McCl
ell
andSuggestMoti
vat
ion-
Trai
ningPr
ogrammeaspolicymeasurewhi
chwil
lmake
t
heentr
eneur
sreal
lywi
l
li
ngandtheeagertoexpl
oitt
henewoppor
tuni
ti
espr
ovi
ded.
Ever
ettHagen’
stheoryofSoci
alChangeLaysemphasi
son“Creat
ivePer
sonal
it
y”as
casualli
nkinentrepr
eneur
ialbehavi
orand“St
atuswit
hdrawal
”asdeter
minantofcr
eati
ve
Personal
ity
.
Hagenel aborat
elyexpl
ainsthecasualSequenceEntr
epreneur
ialbehavi
or.Buthis
modelofEnt r
epreneurshi
pfail
st ogiv
eanypositi
vev ar
iabl
eforthedev el
opmentoft he
entr
epreneur
ship“stat
uswi t
hdrawal”woul
doccuri nthenatur
alEvolut
ionaryprocessof
thesociet
yandnotbyanydel i
berateat
tempt.
JohnKunkelin1965consideredEntrepreneur
ialsupplybysuggesti
ngabehav ior
ist
model
.HismodelSuggestthatEntrepreneuri
albehaviori
st hefuncti
onofthesurroundi
ng
ofSocialStr
ucture,Both Pastand t he Present
,and can r eal
ly be i
nfl
uenced by
mani
pulati
ngeconomicandsocialincenti
ves.
Kunel
sModelisbaseduponExper
iment
alPsy
chol
ogy
,whi
chi
dent
if
iessoci
ologi
cal
v
ari
abl
esasthedet
ermi
nantofEnt
repr
eneur
ial
suppl
y.

2.Soci
laogi
calModel
FrankW Young’
stheor
yofEnt r
epr
eneurshi
pisatheoryofchangebasedupont
he
soci
ety
’sinCor
porati
onofrel
ati
vesub-gr
oup.Therel
ati
venssofSubgroupwhichasal
ow

CBI
T-ECE,
KOLAR 16
 MANAGEMENTANDENTREPRENEURSHI
P

st
atusinal argerSoci
etywi
lll
eadtoEntrepr
eneuri
albehavi
or,i
fthegr
ouphasbet
ter
i
nsti
tut
ional
resourcest
hanot
hersi
ntheSociet
yatthesamelevel
.
Young’
smodelofent
repr
eneurshi
psuggest
sthecr
eat
ionofsuppor
ti
ngi
nst
it
uti
on
i
nSoci
etyast
hedet
ermi
nantofEnt
repreneur
shi
p.
3.I
ntegr
atedmodel
T.
VRaoi
n1975“
Ent
repr
eneur
ial
disposi
ti
on”hasi
ncl
udedt
hef
oll
owi
ngf
act
ors
1.Needf ormoti
vei
sthedynamicwhi
chforthepr
ospect
iveEntr
epr
eneur
,hasgr
eat
est
possi
bil
i
tyofachi
evi
ngt
hegoalsi
foneper
for
msthoseact
ivi
ti
es.
2.Longterminvol
vementisthegoalei
theratthi
nki
ngleveloratt
heact
ivi
tyl
evel
,in
Ent
repr
eneur
ial
acti
vit
ythati
svi
ewedastargett
obeful
fi
ll
ed.
3.Personal
,Socialand mat
eri
alresour
ceswhi
ch het
hinksar
erel
ated t
o ent
ryand
Successint
heareaofEntr
epr
eneur
ialact
ivi
ty
4.Soci-
pol
i
ticalsy
stem t
obeper
cei
vedassui
tabl
eforest
abl
i
shmentanddev
elopmenthi
s
enter
pri
se.

ENTREPRENEURI
ALDEVELOPMENTCYCLE

Entrepreneurs are notjustborn,they can be devel

oped and t rai
ned t
o
undertakev entures.Howev er
,ever
ybodydoesnothav ethepot enti
altobecomean
entr
epr eneur.Entrepr
eneuri
aldevel
opmentisessenti
all
yaneducat i
onalpr
ocessand
anendeav orinhumanr esourcedevel
opment.Itisaprocessinwhi chpersonsar
e
i
njected wi t
h mot i
vati
onaldr i
ves ofachiev
ementand si t
uations especial
l
yin
business/enterpri
seundertaki
ngs.

Inmanydev el
opingcount r
iesandespeciallyincertainbackwar dareasoft hese
count
ri
es,thesocio-economi cenvir
onmenthasnotbeenconduci vetot heemergence
ofent
repreneuri
altalents.Ithasbeenexperiencedt hatentr epreneurshav eori
ginated
fr
om allstr
ataofsoci ety,butentrepreneur
ialabili
ti
es/tal entshav er emainedlatent
andhence,al otdependsonact ivat
ingtheset alents.I
ti s,ther ef
ore,necessar yto
i
denti
fy,motiv
ate,strengthenandsuppor tpeoplepossessi ngt heset al
ents.

Inmanydev el
opingcount r
iesandespeciallyincertainbackwar dareasoft hese
count
ri
es,thesocio-economi cenvir
onmenthasnotbeenconduci vetot heemergence
ofent
repreneuri
altalents.Ithasbeenexperiencedt hatentr epreneurshav eori
ginated
fr
om allstr
ataofsoci ety,butentrepreneur
ialabili
ti
es/tal entshav er emainedlatent
andhence,al otdependsonact ivat
ingtheset alents.I
ti s,ther ef
ore,necessar yto
i
denti
fy,motiv
ate,strengthenandsuppor tpeoplepossessi ngt heset al
ents.

I
n or
der t
o accel
erat
e f
ormat
ion of i
ndi
genous ent
erpr
ises, i
magi
nat
ive

CBI
T-ECE,
KOLAR 17
 MANAGEMENTANDENTREPRENEURSHI
P

developmentprogrammesandpol i
ciesbackedupbysoundi nst
it
uti
onalsupportar
e
necessary,
asithasbeenrecogni
sedthat,entr
epr
eneursdonotr espondspont
aneouslyt
o
avai
lablebusi
nessopport
unit
iesdespitev
ariousi
nducement
s, schemesandpr ogrammes
topromoteandassistt
hem.Itisnecessar
yt ohav
eanef f
ect
ivemechani sm,oncetheyar
e
i
dentifi
ed.

Entr
epreneurshiprequiresanenv i
ronmenti nwhi chanent repreneurcanl earnand
di
scharge necessar yf uncti
ons. For an ent r
epreneur ial devel
opment ,i ntell
i
gence,
motivati
on,knowl edge,st i
mul at
ion,sustained ef for
t s,human f actor
,gov ernment
assi
stanceandsuppor tandoppor tuni
tyarethepre-requisites,asentrepreneur
shipcannot
grow inv acuum.The pr ocessofent r
epreneuri
aldev elopmentemphasi son t r
aini
ng,
educati
on, r
eori
entati
onandcr eati
onofconduci v
eandheal thyenvi
ronmentf orthegr owth
ofenterpr
isesEntrepreneurshi
pDev el
opmentincorporatesf ourbasicissues':
a.Theav
ail
abi
li
tyofmat
eri
alr
esour
ces,
b.Thesel
ect
ionofr
ealent
repr
eneur
s,
c.Thef
ormat
ionofi
ndust
ri
aluni
ts,
and
d.Thepol
icyf
ormul
ati
onf
ort
hedev
elopmentoft
her
egi
on(
s).
Ent r
epreneur ialskil
lscanbedev el
opedt hroughi nculcat
ingent repreneur i
alt r
aits,
i
mpar ting the r equired knowl edge,dev eloping t he technical
,financi al,mar keti
ng and
manager i
alskills,andbui l
dingt heentrepreneurialat ti
tude.Thepr ocessofent repreneurial
developmenti nv olv
esequi ppingaper sonwi tht hei nfor
mat i
onnecessar yf orent er
prise
buil
ding and shar peni
ng hi s ent r
epreneur i
alski ll
s.The obj ective ofent repreneurial
developmenti st omot ivateaper sonf orent r
epr eneur i
alcareerandt omakehi m capable
ofper ceivi
ng and expl oiti
ng successf ull
y,theoppor tuni
ti
esf orent erprise.Thus,i tis
regardedasat oolofi ndustrial
i
zationandasol uti
ont ounempl oymentpr oblem.One
trai
nedent repr eneurcangui deot heronhow t ost artthei
rownent er pr
ises.Thef igure
shows ent repreneur i
aldev el
opment cy cle" consi st
ing of simul at ory,suppor t and
sustainingaspect sforentrepreneurshipdev elopment .

Fi
g:Ent
repr
eneur
ialDevel
opmentCycl
e
1. Ent r
epr eneurialeducation
2. Plannedpubl icit
yforent r
epr eneuri
al opport
unities
3. Identifi
cat i
onofpot entialent r
epreneurst hr
oughsci enti
fi
cmet hod
4. Mot ivationaltrai
ningtonewent r
epreneur s
5. Hel pandgui danceinsel ecti
ngpr oduct sandpr epari
ngpr oj
ectreport
s
6. Maki ngav ai
labletechno-economi cinformati
onandpr oductsprofi
les
7. Evolvingl ocallysuit
ablenewpr oduct sandpr ocesses
8. Av ail
abi l
it
yofl ocalagencieswi thtrainedpersonnel forcounseli
ngand
promot i
ons
9. Creatingent repreneurialforum
10.Recognitionofent r
epreneur

CBI
T-ECE,
KOLAR 18
MANAGEMENTANDENTREPRENEURSHI
P CBSC

1. Registrat
ionofuni t
2. Arrangingf inance
3. Providingl and, shed,power ,water,et
c.
4. Guidancef orsel ect
ingandobt ai
ning
machi nery
5. Suppl yofscar cerawmat er i
als
6. Get ti
ngl i
censes/i mportlicenses
7. Pr ovidingcommonf acil
i
ties
8. Gr antingt axr eli
eforothersubsi dy
9. Of feri
ngmanagementconsul t
ancy
10. Helpmar ketingpr oduct
11. Providingi nformat i
on

1.Helpmoder nizati
on
2.Helpdiversi
f i
cati
on/expansi on/subst i
tut
eproducti
on
3.Addit
ional f
inancingf orf ul
lcapacityuti
li
zati
on
4.Deferr
ingrepay ment/i nterest
5.Di
agnost i
cindust ri
alext ension/consul t
ancysource
6.Producti
onuni tslegislations/policychange
7.Productreservati
on/cr eat i
ngnewav enuesformarketi
ng
8.Quali
tytestingandi mpr ovi
ngser v
ices
9.Need-basedcommonf aci l
itycent
re

PROBLEMSFACEDBYENTREPRENEURS

Entr
epreneursf
aceanumberofpr obl
emsi nthepromot
ionofuni t
sand
dur
ingproducti
on,mar
keti
ng,di
str
ibuti
on,pr
ocurementofr
awmateri
al,andavai
l
ing
ofi
ncenti
vesoffer
edbytheStat
egov er
nment.

Thepr obl
emsofent r
epreneursmaybedividedint
ot wogroups-externaland
i
nter
nal.Externalpr
oblemsar ethose,whi
chresul
tf r
om fact
orsbeyondt hecont rol
ofentrepreneurswhil
ei nt
ernalproblemsar
et hose,whicharenoti nfluencedby
ext
ernalfactors.

Thepr oblemsofi ndustr

ies, whet herint hesmal lsectororinorganizedsect or
areal mosti denti
cal.
Howev er,
givent hatt heor gani
zedi ndustr
yi sfinancial
lyv ery
strongandi tsresourcesl ar
ge,itcant heref or e,faceitsproblemsmor eeffectiv
el y
.
Owi ngt oit
sweakf i
nancialstr
uct ure,ther esour cesoft hesmal lsectorarelimited.
Whi l
et helargesectorcanempl oyt rainedandexper i
encedmanager s,int hesmal l
i
ndust r
y ,i
tspropri
etororpartnersori ft heuni tisacompany ,it
sdirect
orordi rectors
themsel veshavetot akecareofal lthepr obl ems.Thel argesectorcani nfl
uencei ts
rawmat eri
alsuppli
ers,i
tscust omer sandatt imesev ent hegov ernmenti nframi ng
i
tspol i
cies,butthesmall ent
repreneuri shel plessi nthisrespect.

I
.Int
ernal
Probl
emsofEnt
repr
eneur
s

CBI
T-ECE,
KOLAR 19
MANAGEMENTANDENTREPRENEURSHI
P CBSC

1.Pl
anning
a)Technicalfeasibili
ty
 Inadequat et echni
calknow-how.
 Locat i
onal disadvant
age
 Out datedpr oducti
onpr ocess
b)Economi
cvi
abi
li
ty
 Highcostofi nput .
 Break-ev enpoi nttoohigh
 Uneconomi csi zeofpr oject
 Choiceofi dea
 Feeblest ructur e
 Faultyplanni ng
 Poorpr ojecti mpl ement ation
 Lackofst rategi es
 Lackofv ision
 Inadequat econnect ions
 Lackofmot i
vat i
on
 Under estimat ionoff inancialrequi
rement
s
 Undulyl argei nv estmenti nfi
xedassets
 Ov er
est i
mat i
onofdemand

2.I
mpl
ement
ati
on

Costover
-r
unsr
esul
ti
ngfrom delay
singet
ti
ngl
i
censes,sanct
ionsandsoonand
i
nadequat
emobi
li
zat
ionoffi
nance.

3.Pr
oduct
ion

a)Pr
oduct
ionmanagement

 Inappr
opriateproductmix
 Poorqualitycontr
ol
 Poorcapaci t
yutil
izat
ion
 Highcostofpr oducti
on
 Poorinventorymai nt
enanceandr
eplacement
 Lackoftimelyandadequat emoderni
zati
onandsoon
 Highwast age
 Poorproduct i
on

b)Labormanagement

CBI
T-ECE,
KOLAR 20
MANAGEMENTANDENTREPRENEURSHI
P CBSC

 Exci
singhighwagest r
ucture
 Inef
fi
cienthandlingoflaborprobl
ems
 Excessivemanpower
 PoorLaborpr oducti
vit
y
 Poorlaborrelat
ions
 Lackoft r
ainedskill
edlaborortechni
cal
l
ycompet
entper
sonnel

c)Mar
ket
ingManagement

 Dependenceonasi nglecustomeroral i
mit
ednumberofcustomer
s/si
ngl
eor
ali
mi t
ednumberofpr oducts.
 Poorsalesreali
zati
on
 Defecti
veprici
ngpol i
cy
 Bookingoflargeordersatfixedpr
icesinaninf
lat
ionar
ymarket
 Weakmar ketorganizati
on
 Lackofmar ketfeedbackandmar ketresear
ch
 Unscrupul
oussal epurchasepract
ices

d)Fi
nanci
almanagement

 Poorr esour cemanagementandf inancial

planni
ng
 Faul tycost ing
 Dividendpol i
cy
 Gener alf inanci
alindiscipl
ine and applicat
ion offunds f
orunaut
hor
ized
pur poses
 Def ici
encyoff unds
 Ov ert rading
 Unf av orablegearingorkeepingadv ersedebtequi
tyrat
io
 Inadequat ewor ki
ngcapi tal
 Absenceofcostconsci ousness
 Lackofef fecti
vecoll
ectionmachinery

e)Admi
nist
rat
ivemanagement

 Overcentr
ali
zati
on
 Lackofprofessi
onali
sm
 Lackoffeedbacktomanagement(
managementI
nfor
mat
ionSy
stem)
 Lackofti
mel ydi
versi
fi
cat
ion
 Excessi
veexpendit
ureonR&D

I
I.
 Ext
ernal
Probl
emsofEnt
repr
eneur
s

a)I
nfr
ast
ruct
ure

 Locat
ion
 Power
 Water
 PostOff
iceandsoon

CBI
T-ECE,
KOLAR 21
MANAGEMENTANDENTREPRENEURSHI
P CBSC

 Communi cat
ion
 Non-avai
l
abil
ityori
rregul
arsuppl
yofcr
it
ical
rawmat
eri
alsorot
heri
nput
s
 Transpor
tbottl
enecks

(
b)Fi
nanci
al

 Capital
 Wor kingcapi tal
 Longt ermf unds
 Recov ery
 Mar keti
ngTaxat i
on
 Rawmat erial
 Industri
al andf inanci
alregul
ati
ons
 Inspections
 Technol ogy
 Gov ernmentpol icyAdminist
rati
vehur
dles
 Rampantcor ruption
 Lackofdi recti
on
 Compet i
tiveandv ol
ati
leenvir
onment

CAPACI
TYBUI
LDI
NGFORSTRONGENTREPRENEURSHI
P

Tobeasuccessf ulentr
epreneur
,indivi
dualsmustbui l
dcapaci
ti
esi nfourkey
str
ategicareas– Oper at
ional
,Management ,Financi
alManagement,andPer sonal
capacit
ies.
 Ent
r epr
eneurcapaci
tybuil
dinginvolvesdev el
opi
ngthecombinati
onofal l
fourcapacity element
s,t o pr
ovide t
he i ngredient
sf ora greatentrepr
eneur i
al
successsoup.

Someoft hesecapacit
iesaregainedt hr
oughexper i
encet hr
oughoutyour
career,whileother
sar elear
nedt hr
ougheducat i
onalavenues. Somesuccessful
entrepreneur
s are bor
n with st
rong per
sonal
itytrai
ts,and some behavior
s are
str
engt henedthr
oughlear
nedresponsesinthebusi
nessenv i
ronment.

Her
e aret he fourkey categori
es ofcapaci
ty bui
l
ding l
eadi
ng t
othe
dev
elopmentofsuccessf
ulent
repr
eneurs.

Oper
ati
onalCapaci
tyBui
ldi
ng

Havi
ngabr i
ll
iantunderstandi
ngofani ndustryandbusi nessatgr oundlevel
bui
ldsoperati
onalcapacit
y. Thisofcour
seinvolv
eswor kinginav ari
etyofbusi
ness
operat
ionsforaperiodoft imepr i
ortodiv
ingintoentrepreneurship.
 Thisiswhere
you gainvaluabl
ei nsi
ghti nt
o whatmakesbusi nessest i
ck. Under st
anding t
he

CBI
T-ECE,
KOLAR 22
MANAGEMENTANDENTREPRENEURSHI
P CBSC

dynamicsonthefl
oor,i
nt hecubi
cles,i
nthefi
eldandoutont her
oad,gi
vesy
out
he
perspect
iveonhowtolead,or
gani
zeandpl anf
oroperat
ions.

ManagementCapaci
tyBui
ldi
ng

Taking oper ati

onal experience one mor e step, gaining management
experiencei naf ieldorbusinesswi l
lbedirectl
yappli
cabl etomanagi ngyourown
business.  Thev aluabl
eexperiencey ougainmanagingoper ati
ons,resour
cesand
peoplewi llgiv
ey out heappli
cablet oolsf
ory ourownbusi ness.
 Wi t
haf ewyearsof
managementexper i
ence,y
ouwi l
lgainmanagementcapaci tyandanunder standing
ofresponsi bi
li
tiesandaccount abil
i
tiesatthatlevel
…allprecursor
st omanagingy our
owncompany .

Fi
nanci
alManagementCapaci
tyBui
ldi
ng

Throughacombi nati
onofwor kexperienceandeducat ion, youneedt obewel l
-gr
oundedandv ersedi nmanagi ngf inances.Youneedt obeabl etoaccurately
esti
mat eandbuildf i
nancialst
atement sandt ounder standt hem.  Wi t
hgainedskill
s,
youwi llneedtobeabl et oanaly zef i
nancialst at
ement s,looki ngattrendsand
i
ndicatorsandwhatt hoseallmeant oy ourbusi ness. Financi alr eport
sprovidekey
i
ndicatorsandi nformat i
onont hebusi ness’financialheal th…t her eisaweal thof
i
nformat i
on int he financi
alst atement s.
 Ot herpar ti
es,par tner s and fi
nancial
i
nstit
utionswil
lbel ookingatyouandy ourorgani zati
on’sabi l
itytomanagef i
nances.

Per
sonalCapaci
tyBui
ldi
ng

Ofextremeimpor t
ance,ify
oudon’ thavesomekeyper sonal,ent
repreneurial
tr
ait
sy oumaybecl osingupshopf ast.
 Somepeopl earebor nwi t
hstrongt r
ait
s
whil
e other behavi
or s can be pi cked up along the dev el
opment pat hway .
 
Demonstrat
ing str
ong t rai
ts and behavior
s such as dedication,persev erance,
ambiti
on,deter
minati
on,st r
ong-wil
l,openness,honest
y,tr
anspar ency,f
airness,etc
maymov eyoualongt hepathwaytobecomeasuccessf ul
entrepreneur.

……………………………….

CBI
T-ECE,
KOLAR 23
MANAGEMENTANDENTREPRENEURSHI
P CBSC

MODELQUESTIONPAPER
5thSemester,
B.E(CBCS)EC/TC/EI/BM/ ML
Cour
se:15EC51-ManagementandEnt r
epreneur shi
pDevelopment
Time:3hoursMax.Marks: 80
Not
e:(i
)AnswerFivefullquesti
onssel
ecti
nganyonef ullquesti
onfr
om eachModul e.
(ii
)Questi
ononat opicofaModul emayappearinei t
herit or2ndquest
s1st ion.

Modul
e-1

1a.Defi
nemanagement .Explainvari
ousfuncti
onsofmanager s.(
08Mar ks)
b.Expl
ainvar
iousRolesofmanager s.(08Marks)
Or
2a.Defi
neplanning.Compar eSt r
ategicpl
answi t
htact
ical
plans(05Mar ks)
b.whatisr
ati
onal deci
sions?Explainthestepsinvol
vedinrat
ionaldeci
sion(07Mar
ks)
making.
c.Expl
ainv
arioustypesofdeci si
ons.(04Marks)

Modul
e-2

3a.Explai
ntheprocessofor ganizi
ng.(08Mar ks)
b.Expl
ainNatur
eandi mport
anceofst affi
ng(04Mar ks)
c.Expl
ainthepr
ocessofRecr uitment.(04Mar ks)
Or
4a.Whatismeani ngofdirecti
on.Explainstepsinvolvedincont
rol
l
ing.(08mar
ks)
b.Defi
neLeadership.Expl
ainbri
ef l
yanyt woleadershipstyl
es.(
08mar ks)

Modul
e-3

5a.Explai
nSoci alaudit
.(06Mar ks)
b.Expl
ainBusinessEt hi
csandCor porateGov ernance( 06Marks)
c.WhoisanEnt r
epreneur?Explainthechar acteri
sticsofanEntrepr
eneur
.(06Mar
ks)
Or
6a.Explai
nv ar
iousclassifi
cat
ionofEnt r
epreneur s.(08marks)
b.Expl
ainproblemsf acedbyEnt repreneurs.(08mar ks

Modul
e-4

CBI
T-ECE,
KOLAR 24
MANAGEMENTANDENTREPRENEURSHI
P CBSC

7a.Explai
ntheroleofSmal l
scalei
ndustri
esi neconomi cdevel
opment .(06mar ks)
b.Expl
aintheimpactofWTOonsmal lscaleindustri
es.(04mar ks)
c.Expl
ainbri
efl
ythesicknessinSSIsector(06Mar ks)
Or
8a.Explai
nanytwoPol ici
es&SchemesofCent ral
–Lev elI
nsti
tutions.(
08Mar ks)
b.Expl
ainanytwoPolicies&SchemesofSt ate–Lev elI
nsti
tut
ions.(08Mar ks)

Module-5
9a.Explai
nproductplanningandDev el
opmentprocess.(08Marks)
b.Expl
ainProj
ectFeasibil
i
tyAnalysi
s.(08Marks)
Or
10a.Explai
nthecharacterist
icsofaproj
ect
.(04Mar ks)
b.Expl
ainstepsinv
ol v
edi nPERTandCPM wi thadvantagesandli
mit
ati
ons.(
12mar
ks)

CBI
T-ECE,
KOLAR 25