UNIT I

ENTREPRENEURSHIP
PART A (2 Marks)

1. Who is an Entrepreneur? Or Define Entrepreneur?

2. What are the characteristics of an Entrepreneur?
3. What is Innovation?
4. State the difference between Entrepreneur and Manager?
5. Write any two function of an Entrepreneur?
6. What are the types of Entrepreneur?
7. What is imitative Entrepreneur?
8. What is Fabian Entrepreneur?
9. What is Drone Entrepreneur?
10. What is Intrapreneur?
11. What is the difference between Entrepreneur and Entrepreneurship?
12. Define Entrepreneurship?
13. Write the difference between Entrepreneur and Intrapreneur?
14. What are the characteristics of Entrepreneurship?
15. What is gap filling function?
16. What is managerial and leadership function?
17. What any five barriers of Entrepreneurship?
18. What are the factors affecting Entrepreneurship growth?
19. List the economic factors that affects the Entrepreneurial growth?
20. What are the non-economic factors?

PART B (16 Marks)

1. What do you understand by the term ‘entrepreneur’? Give the main characteristics of an
entrepreneur.
2. Explain the main functions performed by the entrepreneurs.
3. Explain the types of entrepreneurs.
4. Briefly explain the concept of entrepreneur. How does an entrepreneur differ from a
manager?
5. What is meant by Intrapreneur? How will you distinguish intrapreneur from entrepreneur?
6. Write notes on a) Innovative Entrepreneurs
b) Intrapreneur
c) Imitative Enrepreneur
7. What are the Barriers of entrepreneurship?
8. Explain in Brief the factors affecting the growth of entrepreneurship.
9. Explain how non-economic factors help in developing entrepreneurship.
10. Give a brief account of the origin of the entrepreneurial concept

UNIT – 1
ENTREPRENEURSHIP
Enterprise
• An unit of economic organization or activity;
– Especially a business organization
• A systematic purposeful activity
– Agriculture is the main economic enterprise among rural Indian people.

Entrepreneurship
• It is the act of being an entrepreneur.

Entrepreneur
• “One who undertakes innovations, finance and business acumen * in an effort to transform
innovations into economic goods”.

Importance of entrepreneurship
 1. Greater employment opportunities to unemployed youth.
2. Increase in per capita income.
3. Higher standard of living and increased individual saving.
4. Revenue to the government in the form of income tax, sales tax, export duties, import duties and
balanced regional development.

Why should you become an entrepreneur?

• You will be your own boss and boss to other people and make decisions that are crucial to the
business’ success or failure.
• You will have the chance to put your ideas into practice.
• You will make money for yourself rather than for someone else.
• You may participate in every aspect of running a business and learn and gain experience in a
variety of disciplines.
• You will have the chance to work directly with your customers.
• You will have the personal satisfaction of creating and running a successful business.
• You will be able to work in a field or area that you really enjoy.
• You will have the chance to build retirement value.
Difference between a manager and an entrepreneur

Concepts of Entrepreneurship
1. It has assumed super importance for accelerating economic growth both in developed and
developing countries.
2. It promotes capital formation and creates wealth in country.
3. It is hope and dreams of millions of individuals around the world.
 4. It reduces unemployment and poverty and its a pathway to prosper.
5. It is the process of searching out opportunities in the market place and arranging resources
required to exploit these opportunities for long term gains.
6. It is the process of assuming, planning, organizing opportunities. Thus it is a risky business
enterprise.
7. It may be distinguished as an ability to take risk independently to make utmost earnings in the
market.
8. It is a creative and innovative skill and adapting response to environment of what is real.

Classifications of Entrepreneurs
1. Based on Functional Characteristics
Innovative, Imitative / adoptive, Fabian, Drone
2. Based on the Developmental Angle
Prime mover, Manager, Minor innovator, Satellite, Local trading
3. Based on Types of Entrepreneurial Business
Manufacturing, Wholesaling, Retailing, Service
4. Based on Nine Personality Types of Entrepreneurs
The Improver, The Advisor, The Superstar, The Artist, The Visionary, The Analyst, The
Fireball, The Hero, The Healer
5. Based on the School of Thoughts on Entrepreneurship
Assessing personal qualities
The Great Person School of Entrepreneurship
The Psychological Characteristics School of Entrepreneurship
Recognising opportunities
The Classical School of Entrepreneurship
Acting and Managing
The Management School of Entrepreneurship
The Leadership School of Entrepreneurship
Reassessing and Adopting
The Intrapreneurship school of Entrepreneurship

1. Based on Functional Characteristics

 Innovative Entrepreneur
• New goods
• New methods of production
• Discover new markets
• Reorganise their enterprises
Entrepreneurs in this group are characterised by an aggressive assemblage of information for
trying out a novel combination of factors.

Imitative / Adoptive Entrepreneur

• Do not innovate themselves
• But imitate techniques and technology innovated by others
In these groups are characterised by their readiness to adopt successful innovations by
successful entrepreneurs.
Such entrepreneurs are particularly suitable for underdeveloped economies as adoption saves cost
of trial and error.

Fabian Entrepreneur
Such entrepreneurs display great caution and skepticism in experimenting with any change in their
enterprise.
They change only when there is an imminent threat to the very existence of their enterprise.
Drone entrepreneur
Such entrepreneurs are characterised by a die-hard conservatism and may even be prepared to
suffer the loss of business

2. Based on the Developmental Angle

Prime mover
This entrepreneur sets in motion a powerful sequence of development, expansion and
diversification of business.
Manager
Such an entrepreneur does not initiate expansion and is content just staying in business.
Minor innovator
 This entrepreneur contributes to economic progress by finding better use for existing
resources.
Satellite
This entrepreneur assumes a supplier's role and slowly moves towards a productive
enterprise.
Local trading
Such an entrepreneur limits his enterprise to the local market.

3. Based on Types of Entrepreneurial Business

Manufacturing: Produces the products that can be sold using resources and supplies
Example: Apparel and other textile products, chemical and related products, electronics
and other electrical products, industrial machinery and equipment
Wholesaling: Sells products to middle man
Retailing: Sells products directly to the people who use or consume them.
Service: Sells services rather than products

4. Based on Nine Personality Types of Entrepreneurs

The Improver
If you are in this mode, you are focused using your company as a means to improve the world.
Your overarching motto is: Morally correct companies will be rewarded working on a
noble cause.
Personality alert: Be aware of your tendency to be a perfectionist and over-critical of
employees and customers.
Ex: Anita Roddick, founder of the body shop.
The Advisor
This personality will provide an extremely high level of assistance and advice to customers.
Motto is: The customer is right and we must do everything to please them. Companies built
by advisors become customer focused.
Personality alert: Advisors can become totally focused on the needs of their business and
customers that they may ignore their own needs and ultimately burn out.
Ex: John W. Nordstrom, founder Nordstrom.
The Superstar: The business is centered on the charisma and high energy of the super star CEO.
 Ex: Donald Trump, CEO of Trump hotels & Casino resorts
The Artist: Highly creative type. Demanding creativity such as web design and ad agencies.
Ex: Scott Adams, creator of Dilbert.
The Visionary: Based on future vision and thoughts.
Ex: Bill Gates, founder of Micro soft Inc.
The Analyst: Focus on fixing problem in a systematic way. Often the basis for science,
engineering or computer firms.
Ex: Intel founder, Gordon Moore.
The Fireball: A business owned and operated by a fireball is full of life, energy and optimism.
Ex: Malcolm Forbes, Publisher of forbes company.