1

L02.Char
act
eri
sti
csofEnt
repr
eneur
sandEnt
repr
eneur
ialSki
ll
s

Ent
repr
eneur
ialcompet
enci
es/Char
act
eri
sti
csofSuccessf
ulEnt
repr
eneur

Ent
repr
eneur
shi
phasbeenoneoft
hemostpr
omi
singmanagementr
esear
ch
f
iel
ds(
Wor
tman,
1987)
,wi
tht
heent
repr
eneuratt
hecent
reofent
repr
eneur
shi
presear
ch.
Ent
repr
eneur
spl
ayapi
vot
alr
olei
ntheeconomi
cdev
elopmentofaNat
ion.Most
count
ri
esar
eact
ivel
ypur
sui
ngt
hedev
elopmentofent
repr
eneur
ialski
l
lsi
nthei
ryout
h
t
hrough st
ruct
ured educat
ionalpr
ogr
ams.I
ndi
aisal
so cogni
zantoft
hisi
mpor
tant
st
rat
egy and i
s an act
ive par
tneri
nthe gl
obali
nit
iat
ivei
n est
abl
i
shi
ng a st
rong
ent
repr
eneur
ialwor
kfor
ce.Ent
repr
eneur
ialcompet
enci
escanbedef
inedasunder
lyi
ng
char
act
eri
sti
cs.Al
lcur
rentr
esear
cht
hati
nvol
vesent
repr
eneur
ialcompet
enci
esi
mpl
i
cit
ly
pr
esumes t
hatent
repr
eneur
s ar
e di
ff
erentf
rom non-
ent
repr
eneur
sint
erms oft
he
compet
enci
est
heypossess.

Acompet
encei
sacer
tai
nchar
act
eri
sti
candqual
i
tyofper
sons,whi
chr
esul
tsi
n
ef
fect
iveand/
orsuper
iorper
for
mancei
naj
ob.

1.I
nit
iat
ive-act
ingoutofchoi
cer
athert
hancompul
sion,
taki
ngt
hel
eadr
athert
han
wai
ti
ngf
orot
her
stost
art
.

2.SeesandAct
sonOppor
tuni
ti
es-A mi
ndsetwher
eonei
str
ainedt
olookf
or
busi
nessoppor
tuni
ti
esf
rom ev
ery
dayexper
iences.Recal
l‘
oranges’
exampl
e.

3.Per
sist
ence-A‘
nev
ersaydi
e’at
ti
tude,notgi
vi
ngupeasi
l
y,st
ri
vi
ngI
nfor
mat
ion
seeki
ngcont
inuousl
yunt
ilsuccessi
sachi
eved.

4.Knowi
ng-Knowi
ngwhoknows,consul
ti
ngexper
ts,r
eadi
ngr
elev
antmat
eri
aland
anov
eral
lopennesst
oideasandi
nfor
mat
ion.

5.Concer
nforHi
gh Qual
i
tyofWor
k-At
tent
ion t
o det
ail
s and obser
vance of
est
abl
i
shedst
andar
dsandnor
ms.

6.Commi
tmentt
oWor
kCont
ract
-Taki
ngper
sonalpai
nst
ocompl
eteat
askas
schedul
ed.

7.Ef
fi
ciencyOr
ient
ati
on-Concer
nforconser
vat
ionoft
ime,
moneyandef
for
t.
 2

8.Sy
stemat
ic Pl
anni
ng- Br
eaki
ng up t
he compl
ex whol
eint
o par
ts,cl
ose
exami
nat
ionoft
hepar
tsand i
nfer
ri
ng aboutt
hewhol
e;e.
g.si
mul
taneousl
y
at
tendi
ngt
opr
oduct
ion,mar
ket
ingandf
inanci
alaspect
s(par
ts)oft
heov
eral
l
busi
nessst
rat
egy(
thewhol
e).

9.Pr
obl
em sol
vi
ng-
Obser
vingt
hesy
mpt
oms,
diagnosi
ngandcur
ing.

10.
Sel
f-
conf
idence-Notbei
ngaf
rai
doft
her
isksassoci
atedwi
thbusi
nessand
r
ely
ingonone’
scapabi
l
iti
est
osuccessf
ull
ymanaget
hese.

11.
Ass
ert
iv
enes
s-Conv
eyi
ngemphat
ical
l
yone’
svi
si
onandc
onv
inc
ingot
her
sofi
tsv
alue.

12.
Per
suasi
on-El
i
cit
ingsuppor
tofot
her
sint
hev
ent
ure.

13.
UseofI
nfl
uenceSt
rat
egi
es-Pr
ovi
dingl
eader
shi
p.

14.
Moni
tor
ing-Ensur
ingt
hepr
ogr
essoft
hev
ent
ureaspl
anned.

Concer
nforEmpl
oyeeWel
far
e-Bel
i
evi
ngi
nempl
oyeewel
l
bei
ngast
hekeyt
o
compet
it
ivenessandsuccessandi
nit
iat
ingpr
ogr
ammesofempl
oyeewel
far
e.

Vi
sion— Thesuccessf
ulent
repr
eneurhast
heabi
l
ityt
oseet
heendr
esul
tsofgoal
s
whi
l
ewor
kingt
oachi
evet
hem andi
scompl
etel
ydedi
cat
edt
omaki
ngt
hisv
isi
ona
r
eal
i
ty.Det
ermi
nat
ion—Thesuccessf
ulent
repr
eneurmustbecompl
etel
ydet
ermi
nedt
o
succeedev
enwheni
tmeanst
aki
ngr
isks.
Mot
ivat
ion—Thesuccessf
ulent
repr
eneurhast
hedesi
ret
owor
khar
dandl
etsv
eryl
i
ttl
e
geti
nthewayofmaki
ngv
isi
oni
ntor
eal
i
ty.
Focus—Thesuccessf
ulent
repr
eneuri
ssel
f-
disci
pli
nedandhast
heabi
l
ityt
ost
ickt
oa
schedul
eanddeadl
i
nes.
Dev
oti
on—Thesuccessf
ulent
repr
eneurhasahi
ghdegr
eeofcommi
tmentt
othei
deas
andbel
i
efsonwhi
cht
hepr
ojecti
sfounded.
Ski
l
ls— Thesuccessf
ulent
repr
eneurmusthav
etheski
l
lsnecessar
ytodev
elopt
he
pr
oductorser
viceort
otakeani
deaandf
igur
eitout
Per
sev
erance—Thesuccessf
ulent
repr
eneurmusthav
ethewi
l
li
ngnesst
okeepgoal
sin
si
ghtandt
owor
ktowar
dthem despi
teobst
acl
es.
Adapt
abi
l
ity— Thesuccessf
ulent
repr
eneurmusthav
etheabi
l
ityt
ocopewi
thnew
si
tuat
ionsandf
indcr
eat
ivesol
uti
onst
opr
obl
ems.
 3

Or
gani
zat
ion — Thesuccessf
ulent
repr
eneurknowshi
sorherown st
rengt
hsand
weaknessesandassembl
est
her
ightt
eam andr
esour
cest
oaccompl
i
shgoal
s.
Cr
eat
ivet
hinki
ng— Thesuccessf
ulent
repr
eneurhast
obeabl
etot
hinkt
hrought
he
i
nnov
ati
vei
deaanddeal
wit
hthemanyv
ari
abl
esf
aci
ngt
hebusi
ness.
Passi
on—Thesuccessf
ulent
repr
eneurhast
oreal
l
ylov
ewhatheorshei
sdoi
ng.
Fl
exi
bil
i
ty— Thesuccessf
ulent
repr
eneurmustbeadapt
abl
etochangi
ngdemandsof
t
hebusi
ness,
empl
oyeesandcust
omer
s.
Anent
repr
eneuri
sahi
ghl
yachi
evementor
ient
ed,ent
husi
ast
icandener
get
ic
i
ndi
vi
dual
,whohasf
oll
owi
ngchar
act
eri
sti
cs.
1.Ent
repr
eneur
sar
eact
ionor
ient
ed,hi
ghl
ymot
ivat
edi
ndi
vi
dual
swhot
aker
iskst
o
achi
evegoal
s.
2.Ent
repr
eneur
s wi
l
lhav
e unwav
eri
ng det
ermi
nat
ion and commi
tment
.They at
e
cr
eat
iveandr
esul
t-
ori
ent
ed.Theywor
khar
dinr
etur
nforper
sonalandf
inanci
al
r
ewar
ds.
3.Ent
repr
eneur
sacceptr
esponsi
bil
i
tieswi
thent
husi
asm andendur
ance.
4.Ent
repr
eneur
s hav
e sel
f-
conf
idence;t
heyar
e dedi
cat
ed,set
ti
ng sel
f-
det
ermi
ned
goal
sandmar
ket
sfort
hei
rideasr
espondi
ngt
oexi
sti
ngmar
ket
.
5.Ent
repr
eneur
sar
ethi
nker
sanddoer
s,pl
anner
sandwor
ker
s.
6.Ent
repr
eneur
scanf
orseet
hef
utur
e,asasal
esman’
sper
suasi
veness,af
inanci
al
t
alentf
ormani
pul
ati
ngf
unds,
asanaudi
tor
set
c.,
7.Ent
repr
eneur
sdependont
hei
ntel
l
igence,i
magi
nat
ionandst
rengt
hofpur
poseof
t
hei
ndi
vi
dual
.
Thechar
act
eri
sti
csofanent
repr
eneurt
hatcont
ri
but
etot
hesuccessar
ethe
r
esul
tofhi
sachi
evementmot
ivat
ion.Ther
efor
easuccessf
ulent
repr
eneurmustbean
i
ndi
vi
dualwi
tht
echni
calcompet
ence,i
nit
iat
ive,goodj
udgment
,int
ell
i
gence,l
eader
shi
p
qual
i
ties,sel
f-
conf
idence,ener
gy,posi
ti
ve at
ti
tude,cr
eat
iveness,f
air
ness,honest
y,
t
act
ful
nessandemot
ional
stabi
l
ity
DI
STI
NCTI
ONBETWEENASENTREPRENEURANDAMANAGER
Poi
ntor Ent
repr
eneur AManager
Di
sti
nct
ion
1. Goal An ent
repr
eneur st
art
s a Butt
hemai
nai
m ofamanager
 4

Management v
ent
ure byset
ti
ng up a new i
stor
enderhi
s ser
vice i
n an
ent
erpr
ise f
or hi
s per
sonal ent
erpr
ise al
ready set up by
gr
ati
fi
cat
ion. someone.
2.St
atus Ent
repr
eneuri
stheownerof Amanageri
stheser
vanti
nthe
ent
erpr
ise. ent
erpr
ise.
3.Ri
sk AsEnt
repr
eneurbear
sal
lri
sks Amanagerbei
ngaser
vantdoes
anduncer
tai
ntyi
nvol
vedi
nthe notbearanyr
iski
nvol
vedi
nthe
ent
erpr
ise. ent
erpr
ise.
4.Rewar
ds Ent
repr
eneur f
or hi
s r
isk A managerr
ecei
ves sal
aryas
bear
ing r
ole he r
ecei
ves r
ewar
d f
or ser
vice r
ender
ed
pr
ofi
ts.I
tisonl
yuncer
tai
nand whi
chi
sfi
xedandr
egul
arcan
i
rr
egul
arbutcanatt
imesbe nev
erbenegat
ive.
negat
ive.
5.I
nnov
ati
on Asani
nnov
atorhei
scal
l
edas A managerexecut
ivet
hepl
ans
changeagentwhoi
ntr
oduces of t
he ent
repr
eneur
. Thus a
goods and ser
vices t
o meet manager t
ransl
ates t
he i
deas
changi
ng needs of t
he i
ntopr
act
ice.
cust
omer
.

Ent
repr
eneur
ialSki
ll
s

SomeEnt
repr
eneur
ial
Ski
l
lsYouMustHav
eforSuccessAswi
thanyspor
t,hav
ing
t
her
ightat
ti
tudesandchar
act
eri
sti
cscancar
ryy
ouonl
ysof
ar.Youal
soneedt
heski
l
ls
t
hat wi
l
l hel
p y
ou succeed. Howev
er, unl
i
ke per
sonal char
act
eri
sti
cs and
at
ti
tudes—whi
chcanof
tenbehar
dori
mpossi
blet
ochange—ent
repr
eneur
scanacqui
re
ski
l
lsi
ftheyar
ewi
l
li
ngt
olear
nthem.Addi
ti
onal
l
y,t
heycanhi
repeopl
etowor
kfort
hem
who hav
ethe needed ski
l
ls.Ei
therway
,the f
oll
owi
ng ski
l
ls ar
eimpor
tanti
fthe
ent
repr
eneur
’sbusi
nessi
stosucceed.

Abi
li
tyt
oPl
an:Theabi
l
ityt
opl
ani
sakeyski
l
lforent
repr
eneur
s.Theymustbeabl
eto
dev
elop pl
ans t
o meetgoal
sinav
ari
etyofar
eas,i
ncl
udi
ng f
inance,mar
ket
ing,
pr
oduct
ion,sal
es and per
sonnel(
hir
ing and mai
ntai
ning pr
oduct
ive and sat
isf
ied
 5

empl
oyees)
.

Communi
cat
ionSki
ll
s:Ent
repr
eneur
sshoul
dbeabl
etoexpl
ain,
discuss,
sel
landmar
ket
t
hei
rgoodorser
vice.I
tisi
mpor
tantt
obeabl
etoi
nter
actef
fect
ivel
ywi
thy
ourbusi
ness
t
eam.Addi
ti
onal
l
y,ent
repr
eneur
sneedt
obeabl
etoexpr
esst
hemsel
vescl
ear
lybot
h
v
erbal
l
yandi
nwr
it
ing.Theyal
soshoul
dhav
est
rongr
eadi
ngcompr
ehensi
onski
l
lst
o
under
standcont
ract
sandot
herf
ormsofwr
it
tenbusi
nesscommuni
cat
ion.

Mar
ket
ingSki
ll
s:A busi
ness’
ssuccessorf
ail
urei
sver
ydependentonwhet
hert
he
busi
nessr
eachest
hemar
ket(
it
spot
ent
ialcust
omer
s),
int
erest
sthemar
ketandr
esul
ts
i
nthosei
nthemar
ketdeci
dingt
obuy
.Manyent
repr
eneur
swhof
ail
edst
art
edwi
than
i
nnov
ati
vegoodorser
vicet
hatwi
thpr
opermar
ket
ingcoul
dhav
ebeenv
erysuccessf
ul.
Goodmar
ket
ingski
l
ls—t
hatr
esul
tinpeopl
ewant
ingt
obuyy
ourgoodorser
vice—ar
e
cr
it
ical
forent
repr
eneur
ial
success.

I
nter
per
sonalSki
ll
s:Ent
repr
eneur
sconst
ant
lyi
nter
actwi
thpeopl
e,i
ncl
udi
ngcust
omer
s
andcl
i
ent
s,empl
oyees,
financi
all
ender
s,i
nvest
ors,
lawy
ersandaccount
ant
s,t
onamea
f
ew.Theabi
l
ityt
oest
abl
i
shandmai
ntai
nposi
ti
ver
elat
ionshi
psi
scr
uci
alt
othesuccess
oft
heent
repr
eneur
’sbusi
nessv
ent
ure.

Basi
cManagementSki
ll
s:Theent
repr
eneurmustbeabl
etomanageev
erycomponent
ofabusi
ness.Ev
eni
fent
repr
eneur
shi
remanager
stoat
tendt
odai
l
ydet
ail
s,t
heymust
under
standi
fthei
rbusi
nesshast
her
ightr
esour
cesandi
fthoser
esour
cesar
ebei
ng
usedef
fect
ivel
y.Theymustensur
ethatal
ltheposi
ti
onsi
nthei
rbusi
nessar
eoccupi
ed
byef
fect
ivepeopl
e.

Per
sonalEf
fect
iveness:I
n or
dert
o handl
ethe pr
essur
es oft
hei
rbusyl
i
fest
yles,
ent
repr
eneur
smusthav
etheabi
l
ityt
omanaget
imewel
landt
otakecar
eofper
sonal
busi
nessef
fi
cient
ly.Becausef
ir
sti
mpr
essi
onsar
esoi
mpor
tant
,ent
repr
eneur
smust
al
sopayat
tent
iont
osucht
hingsasper
sonalappear
anceandt
elephoneski
l
ls.For
exampl
e,t
hinkoft
hedi
ff
erencei
nthei
mpr
essi
onmadebysomeonewhoanswer
sthe
phonebysay
ing,“
Yeah?
”ver
sussay
ing,”
Comput
erSuppor
tSer
vices,t
hisi
sAl
ex.How
mayIhel
pyou?
”Addi
ti
onal
l
y,ent
repr
eneur
sbenef
itagr
eatdealbybei
ngawar
eoft
hei
r
ownst
rengt
hsandweaknesses.
 6

Team Bui
ldi
ngSki
ll
s:Becauseent
repr
eneur
susual
l
yassembl
eat
eam ofski
l
ledpeopl
e
whohel
pthem achi
evebusi
nesssuccess,t
heymustbeabl
etoef
fect
ivel
ydev
elopand
managet
het
eam.

Leader
shi
pSki
ll
s:Oneoft
hemosti
mpor
tantl
eader
shi
pski
l
lsanent
repr
eneurmust
hav
eist
heabi
l
ityt
odev
elopav
isi
onf
ort
hecompanyandt
oinspi
ret
hecompany
empl
oyeest
opur
suet
hatv
isi
onasat
eam.Theexpr
essi
on“
peopl
ewoul
drat
herbel
ed
t
hanmanaged”appl
i
esespeci
all
ywel
ltoanent
repr
eneur
ialv
ent
ure.Fewent
repr
eneur
s
possessev
eryski
l
lneededt
oensur
ebusi
nesssuccess.Forexampl
e,t
heyof
tenl
ookt
o
out
sideexper
tsf
orhel
pinar
eassuchasst
rat
egi
cpl
anni
ng,account
ingandf
inances,
cont
ract
sandl
egal
issues,
andspeci
ali
zedmar
ket
ing.

L03.ENTREPRENEURI
ALPROCESSANDI
MPORTANCEOFENTREPRENEURSHI
P

Def
ini
ti
on:
 The 
Ent
repr
eneur
 i
s a change agentt
hatact
s as an i
ndust
ri
ali
stand
under
takest
her
iskassoci
atedwi
thf
ormi
ngt
hebusi
nessf
orcommer
cialuse.An
ent
repr
eneurhasanunusualf
oresi
ghtt
oident
if
ythepot
ent
ialdemandf
ort
hegoods
andser
vices.

The ent
repr
eneur
shi
pis a cont
inuous pr
ocess t
hatneeds t
o be f
oll
owed by an
ent
repr
eneurt
opl
anandl
auncht
henewv
ent
uresmor
eef
fi
cient
ly.
 7

Ent
repr
ene
uri
alPr
oce
ss

1.Di
scov
ery
/Ident
if
icat
ionandEv
aluat
ion:
 Anent
repr
eneur
ialpr
ocessbegi
nswi
tht
he
i
dea gener
ati
on,wher
eint
he ent
repr
eneuri
dent
if
ies and ev
aluat
es t
he busi
ness
oppor
tuni
ti
es.Thei
dent
if
icat
ionandt
heev
aluat
ionofoppor
tuni
ti
esi
sadi
ff
icul
ttask;
an
ent
repr
eneurseeks i
nput
sfr
om al
lthe per
sons i
ncl
udi
ng empl
oyees,consumer
s,
channelpar
tner
s,t
echni
calpeopl
e,et
c.t
oreacht
oanopt
imum busi
nessoppor
tuni
ty.
Oncet
heoppor
tuni
tyhasbeendeci
dedupon,
thenextst
epi
stoev
aluat
eit
.

Anent
repr
eneurcanev
aluat
etheef
fi
ciencyofanoppor
tuni
tybycont
inuousl
yaski
ng
cer
tai
nquest
ionst
ohi
msel
f,suchas,
whet
hert
heoppor
tuni
tyi
swor
thi
nvest
ingi
n,i
sit
suf
fi
cient
lyat
tract
ive,ar
ethepr
oposedsol
uti
onsf
easi
ble,i
sther
eanycompet
it
ive
adv
ant
age,
whatar
ether
iskassoci
atedwi
thi
t.Abov
eal
l
,anent
repr
eneurmustanal
yze
hi
sper
sonalski
l
lsandhobbi
es,whet
hert
hesecoi
nci
deswi
tht
heent
repr
eneur
ialgoal
s
ornot
.

2.Dev
elopi
ngaBusi
nessPl
an:
 Oncet
heoppor
tuni
tyi
sident
if
ied,anent
repr
eneurneeds
t
ocr
eat
eacompr
ehensi
vebusi
nesspl
an.Abusi
nesspl
ani
scr
it
icalt
othesuccessof
 8

anynew v
ent
uresi
ncei
tact
sasabenchmar
kandt
heev
aluat
ioncr
it
eri
atoseei
fthe
or
gani
zat
ioni
smov
ingt
owar
dsi
tssetgoal
s.

An ent
repr
eneurmustdedi
cat
ehi
ssuf
fi
cientt
imet
owar
dsi
tscr
eat
ion,t
hemaj
or
component
sofabusi
nesspl
anar
emi
ssi
onandv
isi
onst
atement
,goal
sandobj
ect
ives,
capi
tal
requi
rement
,adescr
ipt
ionofpr
oduct
sandser
vices,
etc.

3.Resour
cing:
 Thet
hir
dst
epi
ntheent
repr
eneur
ialpr
ocessi
sresour
cing,wher
eint
he
ent
repr
eneuri
dent
if
iest
hesour
cesf
rom wher
ethef
inanceandt
hehumanr
esour
cecan
bear
ranged.Her
e,t
heent
repr
eneurf
indst
hei
nvest
orsf
ori
tsnew v
ent
ureandt
he
per
sonnel
tocar
ryoutt
hebusi
nessact
ivi
ti
es.

4.Managi
ngt
hecompany
: 
Oncet
hef
undsar
erai
sedandt
heempl
oyeesar
ehi
red,t
he
nextst
epi
stoi
nit
iat
ethebusi
nessoper
ati
onst
oachi
evet
hesetgoal
s.Fi
rstofal
l
,an
ent
repr
eneurmustdeci
det
hemanagementst
ruct
ureort
hehi
erar
chyt
hati
srequi
redt
o
sol
vet
heoper
ati
onal
probl
emswhent
heyar
ise.

5.Har
vest
ing:
 Thef
inalst
epi
ntheent
repr
eneur
ialpr
ocessi
shar
vest
ingwher
ein,an
ent
repr
eneurdeci
desont
hef
utur
epr
ospect
soft
hebusi
ness,i
.e.i
tsgr
owt
hand
dev
elopment
.Her
e,t
heact
ualgr
owt
hiscompar
edagai
nstt
hepl
annedgr
owt
handt
hen
t
he deci
sion r
egar
ding t
he st
abi
l
ity ort
he expansi
on ofbusi
ness oper
ati
ons i
s
under
takenaccor
dingl
y,byanent
repr
eneur
.

Theent
repr
eneur
ialpr
ocessi
stobef
oll
owed,agai
nandagai
n,whenev
eranynew
v
ent
urei
stakenupbyanent
repr
eneur
,ther
efor
e,i
tsanev
erendi
ngpr
ocess.
 9

Aspect
soft
heEnt
repr
eneur
ialPr
ocess
1. 2. 3. 4.
I
dent
if
icat
io Dev
elopmen Det
ermi
nat
io Management
n and t of t
he n ofr
equi
red of r
esul
ti
ng
ev
aluat
ionof busi
ness r
esour
ces ent
erpr
ise
t
he pl
an
oppor
tuni
ty

 Oppor
tuni
ty  Ti
tl
epage  Det
ermi
ne  Dev
elop
assessment  Tabl
e of r
esour
cesneeded management
 Cr
eat
ion and cont
ent
s  Det
ermi
ne st
yle
l
engt
h of  Execut
ive exi
sti
ng  Under
stand key
oppor
tuni
ty Summar
y r
esour
ces v
ari
abl
es f
or
 Ri
sk and  Maj
orsect
ion  I
dent
if
yresour
ce success
per
cei
ved v
alue 1.Descr
ipt
ion of gaps and  I
dent
if
y
ofoppor
tuni
ty busi
ness av
ail
abl
e pr
obl
ems and
 Ri
skandr
etur
ns 2.Descr
ipt
ion of suppl
i
ers pot
ent
ial
ofoppor
tuni
ty I
ndust
ry  Dev
elop access pr
obl
ems
 Oppor
tuni
ty 3.Technol
ogy t
o needed  I
mpl
ement
v
ersus per
sonal pl
an r
esour
ces cont
rol
syst
ems
ski
l
lsandgoal
s 4.Mar
ket
ingpl
an  Dev
elop gr
owt
h
 Compet
it
ive 5.Fi
nancepl
an st
rat
egy
env
ironment 6.Pr
oduct
ionpl
an
7.Or
gani
zat
ion
pl
an
8.Oper
ati
onal
plan
9.Summar
y
 10

I
mpor
tanceofEnt
repr
eneur
shi
p

Theent
repr
eneurwhoi
sabusi
nessl
eaderl
ooksf
ori
deasandput
sthem i
nto
ef
fecti
nfost
eri
ngeconomi
cgr
owt
handdev
elopment
.Ent
repr
eneur
shi
pisoneoft
he
mosti
mpor
tanti
nput
sint
heeconomi
cdev
elopmentofacount
ry.

Economi
cdev
elopmentofacount
ryi
stheout
comeofpur
posef
ulhumanact
ivi
ty.
Economi
cdev
elopmenti
sahi
ghl
ydy
nami
cpr
ocesschar
act
eri
zedbyt
hepat
ter
nof
demandshi
ft
s,newpr
oduct
sar
eneeded,appearf
ort
hepr
oduct
ionofgoodswi
thi
na
count
ry.

Adev
elopi
ngcount
ryneedsent
repr
eneur
swhoar
ecompet
entt
oper
cei
venew
oppor
tuni
ti
esandar
ewi
l
li
ngt
oincurt
henecessar
yri
ski
nexpl
oit
ingt
hem.Adev
elopi
ng
economyi
srequi
redt
obebr
oughtoutoft
hev
ici
ousci
rcl
eofl
owi
ncomeandpov
ert
y.
Ent
repr
eneurcanbr
eakt
hisv
ici
ousci
rcl
e.Ent
repr
eneur
sandhel
pinggov
ernmentcan
changeadev
elopi
ngeconomyi
ndev
elopedeconomy
.

Empl
oymentGener
ati
on:Ent
repr
eneur
snotonl
ygi
veempl
oymentt
otheent
repr
eneur
butal
soasour
ceofdi
rectandi
ndi
rectempl
oymentf
ormanypeopl
einacount
ry.
Unempl
oymenti
sachr
oni
cpr
obl
em i
nmostoft
hedev
elopi
ngandunder
dev
eloped
count
ri
es. Ent
repr
eneur
s pl
ay an ef
fect
ive r
ole i
n r
educi
ng t
he pr
obl
em of
unempl
oymenti
nthe count
ry whi
ch i
ntur
n cl
ear
sthe pat
htowar
ds economi
c
dev
elopmentoft
henat
ion. 
Ent
repr
eneur
ialdev
elopmenti
slookedatasav
ehi
cl
efor
empl
oymentgener
ati
ont
hroughpr
omot
ionofsmal
lbusi
ness.

Pr
omot
esCapi
talFor
mat
ion:Ent
repr
eneur
smobi
l
izet
hei
dlef
undswhi
ch l
ead t
o
capi
talf
ormat
ion.Thef
undswhi
char
eusedbyent
repr
eneur
sisami
xoft
hei
rownand
bor
rowed.Thi
sleadst
ocr
eat
ionofweal
thwhi
chi
sver
yessent
ialf
ordev
elopmentofan
economy
.

Smal
lBusi
nessPl
anDy
nami
sm:Gr
eatdy
nami
sm i
soneoft
hequal
i
tiesoft
hesmal
l
andmedi
um ent
erpr
ises.Thi
squal
i
tyofdy
nami
sm or
igi
nat
esi
nthei
nher
entnat
ureof
t
hesmal
lbusi
ness.Thest
ruct
ureofsmal
landmedi
um ent
erpr
isesi
slesscompl
ext
han
t
hatofl
argeent
erpr
isesandt
her
efor
efaci
l
itat
esqui
ckerandsmoot
hercommuni
cat
ion
and deci
sion-maki
ng.Thi
sal
l
owsf
ort
hegr
eat
erf
lexi
bil
i
tyand mobi
l
ityofsmal
l
 11

busi
nessmanagement
.Al
so,
smal
lent
erpr
ises,
mor
eof
tenmakei
tpossi
blef
orowner
s,
whohav
east
rongerent
repr
eneur
ialspi
ri
tthanempl
oyedmanger
s,t
ounder
taker
isk
andchal
l
enges.

Bal
anced Economi
c Dev
elopment
:Smal
lbusi
ness pr
omot
ion needs r
elat
ivel
ylow
i
nvest
mentandt
her
efor
ecanbeeasi
l
yunder
takeni
nrur
alandsemi
-ur
banar
eas.Thi
s
i
ntur
ncr
eat
esaddi
ti
onalempl
oymenti
nthesear
easandpr
event
smi
grat
ionofpeopl
e
f
rom r
uralt
our
banar
eas.Si
ncemaj
ori
tyoft
hepeopl
ear
eli
vi
ngi
nther
uralar
eas,
t
her
efor
e,mor
eofourdev
elopmentef
for
tsshoul
dbedi
rect
edt
owar
dst
hissect
or.
Smal
lent
erpr
isesusel
ocalr
esour
cesandar
ebestsui
tedt
orur
alandunder
dev
eloped
sect
or

Thegr
owt
hofi
ndust
ri
esandbusi
nessi
nthesear
easl
eadt
oal
argenumberofpubl
i
c
benef
it
sli
ker
oadt
ranspor
t,heal
th,educat
ion,ent
ert
ainment
,et
c…Set
ti
ngupofmor
e
i
ndust
ri
esl
eadst
o mor
edev
elopmentofbackwar
dregi
onsand t
her
ebypr
omot
es
bal
ancedr
egi
onal
dev
elopment
.

I
nnov
ati
onsi
nEnt
erpr
ises:Busi
nessent
erpr
isesneedt
obei
nnov
ati
vef
orsur
viv
aland
bet
terper
for
mance.I
tisbel
i
evedt
hatsmal
l
erf
ir
mshav
ear
elat
ivel
yhi
ghernecessi
ty
andcapabi
l
ityt
oinnov
ate.Thesmal
l
erf
ir
msdonotf
acet
heconst
rai
ntsi
mposedby
l
argei
nvest
menti
nexi
sti
ngt
echnol
ogy
.Thust
heyar
ebot
hfr
eeandcompel
l
edt
o
i
nnov
ate.

Ent
repr
eneur
shi
pdev
elopmenti
saccel
erat
ingt
hepaceofsmal
lfi
rm’
sgr
owt
hinI
ndi
a.
Ani
ncr
easednumberofsmal
lfi
rmsar
eexpect
edt
oresul
tinmor
einnov
ati
onsand
maket
heI
ndi
ani
ndust
rycompet
eint
hei
nter
nat
ional
mar
ket
.

Bet
terst
andar
dsofl
iv
ing:Ent
repr
eneur
spl
ayav
italr
olei
nachi
evi
ngahi
gherr
ateof
economi
cgr
owt
h.Ent
repr
eneur
sar
eabl
etopr
oducegoodsatl
owercostandsuppl
y
qual
i
tygoodsatl
owerpr
icet
othecommuni
tyaccor
dingt
othei
rrequi
rement
s.When
t
hepr
iceoft
hecommodesdecr
easest
heconsumer
sgett
hepowert
obuymor
egoods
f
ort
hei
rsat
isf
act
ion.I
nthi
swayt
heycani
ncr
easet
hest
andar
dofl
i
vingoft
hepeopl
e.

Sel
f-
Rel
iance:Ent
repr
eneur
sar
ethecor
nerst
oresofnat
ionalsel
f-
rel
i
ance.Theyhel
pto
manuf
act
ure i
ndi
genous subst
it
utes t
o i
mpor
ted pr
oduct
s whi
ch r
educe t
he
 12

dependenceonf
orei
gncount
ri
es.Ther
eisal
soapossi
bil
i
tyofexpor
ti
nggoodsand
ser
vicest
oear
nfor
eignexchangef
ort
hecount
ry.Hence,t
hei
mpor
tsubst
it
uti
onand
expor
tpr
omot
ion ensur
e economi
cindependence and t
he count
rybecomes sel
f-
r
eli
ance.

Faci
li
tat
esOv
eral
lDev
elopment
:Ent
repr
eneur
sactascat
aly
ticagentf
orchangewhi
ch
r
esul
tsi
n chai
nreact
ion.Once an ent
erpr
ise i
s est
abl
i
shed,t
he pr
ocess of
i
ndust
ri
ali
zat
ioni
sseti
nmot
ion.Thi
suni
twi
l
lgener
atedemandf
orv
ari
oust
ypesof
uni
tsr
equi
redbyi
tandt
her
ewi
l
lbesomanyot
heruni
tswhi
chr
equi
ret
heout
putoft
his
uni
t.Thi
sleadst
oov
eral
ldev
elopmentofanar
eaduet
oincr
easei
ndemandandset
ti
ng
upofmor
eandmor
euni
ts.I
nthi
sway
,theent
repr
eneur
smul
ti
plyt
hei
rent
repr
eneur
ial
act
ivi
ti
es,t
huscr
eat
inganenv
ironmentofent
husi
asm andconv
eyi
ngani
mpet
usf
or
ov
eral
ldev
elopmentoft
hear
ea