A.

Introduction

Entrepreneurship can change the way we work

and our lifestyle. If successful, their disruptive
innovations may improve our standard of living, add to national income, create social change, community
development and in addition to creating wealth with their entrepreneurial ventures, they also create the
conditions for a prosperous society.

Lesson

Types of Entrepreneurship

1. Small Scale Entrepreneurship

As the name itself suggests that these types of enterprises are only suitable in areas where the
capital and resources are limited and scale of business are certainly small

Example: Grocery store, salons, tea stalls, etc.

2. Scalable Startup Entrepreneurship

A “scalable startup” takes an innovative idea and searches for a scalable and repeatable
business model that will turn it into a high growth, profitable company. Not just big but huge. It does that
by entering a large market and taking share away from incumbents or by creating a new market and
growing it rapidly.

Example: Facebook, Instagram and online shopping for electronics, lawn business (landscaping)

3. Large Company Entrepreneurship

Through offering new products and sustaining innovation, these companies variant around their
core product. When they launch a new product in the market, it must be given the importance to the
customer needs and demands as well as using advanced technology. Often, we recognize that these
types of companies do this by partnering with or buying innovative companies.

Examples: Microsoft, Google, Samsung, BMW, etc.

4. Social Entrepreneurship

Social entrepreneurs are real innovators. They create products and services which solve social
needs and problems. Their main focus is to keep the world safe. Profit maximization is not their theme.
Under these categories of entrepreneurship may be non-profit, profit, or hybrid.

Example: Community project, non-profit organization, cooperative

Functions of Entrepreneurship

1. Innovation

An entrepreneur is basically an innovator who tries to develop new technology, product

and markets. Innovation may involve doing new things or doing existing things differently. an
Entrepreneur uses his/her creative facilities to do new things and exploits opportunities in the
market. He/she does not believe in the status quo and is always in search of change.

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 2. Assumption of Risk

An entrepreneur by definition is a risk taker. He/she is always prepare for assuming losses
that may arise on account of new ideas and projects undertaken by him/her.This willingness to
take risks allows an entrepreneur to take initiatives in doing new things and marching ahead in
his/her efforts

3. Research

An entrepreneur is a practical dreamer and does a lot of ground-work before taking a leap
in his/her ventures. In other words, an entrepreneur finalizes an idea only after considering a
variety of options, analyzing their strengths and weaknesses by applying analytical techniques,
testing their applicability then choosing the best alternative. it is then that he/she applies his/her
ideas in practice. The selection of an idea, thus, involves the application of research methodology
by an entrepreneur.

4. Development of Management Skills

The work of an entrepreneur involves the use of managerial skills which he/she develops
while planning, organizing, staffing, directing, controlling and coordinating the activities of
business. His/her managerial skills get further strengthened when he/she engages himself/herself
in establishing equilibrium between his/her organization and its environment.

5. Overcoming Resistance to Change

New innovations are generally opposed by people because they make them change their
existing behavior patterns. an entrepreneur always first tries new ideas at his/her level. it is only
after the successful implementation of these ideas that an entrepreneur makes these ideas
available to others for their benefit. This is a reflection of his/her power, enthusiasm and energy
which helps him/her in overcoming the society’s resistance to change.

6. Catalyst of Economic Development

an entrepreneur plays an important role in accelerating the pace of economic

development of a country by discovering new uses of available resources and maximizing their
utilization.

Role of Entrepreneurship in Economic Growth

Entrepreneurs boost economic growth by introducing innovative technologies, products, and

services. Increased competition from entrepreneurs challenges existing firms to become more
competitive. Entrepreneurs provide new job opportunities in the
short and long term.

1. Wealth Creation and Sharing

By establishing the business entity, entrepreneurs
invest their own resources and attract capital in the form
of debt, equity etc from investors, lenders and the public
and allows people to benefit from the success of
entrepreneurs and growing businesses.

2. Create Jobs
Any business start-up requires human resources
that could fulfill the demand of the company thereby
making earning for themself. Thus it’s very much
important for an entrepreneur to seek a maximum

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 number of employees to work that could help each other in a vice-versa manner. Hence it’s
proven that with each new startup by entrepreneurs more and more people will get employed.

3. Balanced Regional Development

Entrepreneurs setting up new businesses and

industrial units help with regional development
by locating in less developed and backward
areas. The growth of industries and
businesses in these areas leads to
infrastructure improvements like better roads
and rail links, airports, stable electricity and
water supply, schools, hospitals, shopping
malls and other public and private services
that would not otherwise be available.

4. GDP and Per Capita Income

Gross Domestic Product (GDP) is the

monetary value of all finished goods and services
made within a country during a specific period. GDP
provides an economic snapshot of a country, used to
estimate the size of an economy and growth rate.
GDP can be calculated in three ways, using
expenditures, production, or incomes.

5. Standard of Living
Entrepreneurs raise the standards of living of people
by providing them new, better and improved products. They
supply goods having additional features at reasonable
prices. They also remove scarcity of essential commodities
and introduce new products which lead to variety in
consumption.

6. Export

Any growing business will eventually want to

get started with exports to expand their business
to foreign markets. This is an important ingredient
of economic development since it provides access
to bigger markets and leads to currency inflows
and access to the latest cutting-edge technologies
and processes being used in more developed
foreign markets.

7. Community Development
Community development requires
infrastructure for education and training,
healthcare, and other public services. For example
you need highly educated and skilled workers in a
community to attract new businesses. If there are
educational institutions, technical training schools
and internship opportunities that will help build the
pool of educated and skilled workers.

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