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• Professional entrepreneur:

He an entrepreneur who starts a business until but does not carry on

business for a long period. He sells out the running business and start
another venture.

C. On the basis of motivation:

• Pure entrepreneur:

He believe in their own performance while undertaking business

activities. They try hard to prove their excellence in ventures.

• Induced entrepreneur:

He is an entrepreneur who induced to take up an entrepreneurial activity

which is done with a view to avail some benefits from the government.

• Motivated entrepreneur:

These entrepreneurs are motivated by their desire to make use of their

technical, professional expertise and skills.

• Spontaneous entrepreneurs:

These entrepreneurs are motivated their desire for self-employment and

to achieve or prove their excellence in job performance.

D. On the basis of stages of development

• First generation entrepreneur:

He is the one who start an industrial unit by means his own innovative
ideas and skills. He is essentially an innovator.

• Modern entrepreneur:

He is an entrepreneur who undertakes those ventures according to the

modern marketing needs

• Classical entrepreneur:

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 He is the one who develop self-supporting venture for the satisfaction of
customer needs. He does not undertake any innovation.

E. Classical by Clarence Danhof:

• Innovative entrepreneurs:

These types of entrepreneurs are very innovative. They show a high

tendency of undertaking risk. They are generally aggressive on
experimentation and cleverly put maximum attractive possibilities into
practice.

• Adoptive or imitative entrepreneurs:

These entrepreneurs are ready to adopt successful innovation created by

innovative entrepreneurs. Imitative entrepreneurs do not innovate any
changes themselves. They only imitate technology and techniques
innovated by others.

• Fabian Entrepreneurs:

These entrepreneurs are traditionally in nature. They would be cautious.

They neither introduce new changes nor adopt methods that are
innovated by other entrepreneurs. They are shy and lazy. They are not
much interested in risks.

• Drone entrepreneurs:

Drone entrepreneurs are those who refuse to adopt and use opportunities
to make changes in production. They would not change the method of
production that has already been introduced. They follow the traditional
methods of production.

3.6 Functions of an entrepreneur

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• Innovation

An entrepreneur is basically an innovator who tries to develop new

markets, product, technology etc. Innovation may involve doing new
things or doing existing things. An entrepreneur uses his creative
faculties to do new things and to exploit opportunities in the market. He
does not believe in status and is always in search of change.

• Assumption of risk

An entrepreneur is a risk taker and not risk shirker. He is always

prepared for assuming losses that may arise on account of new projects
and ideas that are undertaken by him. This willingness to take risks
allow an entrepreneur to take initiative in doing new things and
marching ahead in his efforts.

• Catalyst to economic development

An entrepreneur plays an important role in accelerating the pace of

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

• Research

Entrepreneur finalizes an idea only after considering a variety of

options, analysing their weakness and strengths by applying analytical
techniques, supplementing them with empirical finding, testing their
applicability, and then choosing the best alternative.it is then that he
applies his ideas in optimum practice. The selection of an idea thus
involves the application of research methodology by an entrepreneur.

• Development of management skills

The entrepreneur work involves the use of managerial skills which he

develops while planning, organizing, staffing, directing, controlling and
coordinating the activities of business. His managerial skills get further
strengthens when he engages himself in establishing equilibrium
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 between his organization and its environment. When the size of business
grows an entrepreneur can employ professional managers for the
effective management of business operations.

3.7 Importance of entrepreneurship

• Entrepreneurs create jobs

Without entrepreneur jobs would not exist. Their ambition to continue

their business growth which eventually leads to the creation of new jobs.
As their business continues to grow even more jobs are created.

• Entrepreneurs innovate

Some technologies in today’s society have come from businesses. The

technological advances come out of a need to be solved, create
efficiencies.

• Entrepreneurs create change

Innovative ideas of entrepreneur will make the world change. They

might create a new product that take on the challenge to explore
something never explored before.

• Entrepreneurs add to national income

Entrepreneurship generates new wealth in an economy. New ideas,

products and services from entrepreneurs allow for the growth of new
markets and wealth.

• Improving standards of living

By creating productive organisations, entrepreneurship helps in making

wide variety of goods and services which are available to the society
which results into higher standards of living for the people.

• Means of economic development

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 Entrepreneurship involves maximisation of output from given
resources, creation and use of innovative ideas, development of
managerial skills etc. and all these factors are essential for the economic
development of a country.

• Creation of organisations

Entrepreneurship result in creation of organisations when they assemble

and coordinate physical, human and financial resources and direct them
towards achievement of objectives through managerial skills.

3.8 Risk involved with Entrepreneurship

• Financial risk:

An entrepreneur invests money in an enterprise on the expectation of

getting attractive returns. But it may not click and end up in big financial
risk.

• Personal risk

Starting an enterprise and managing it is an important task. Entrepreneur

is supposed to devote most of his time and energy to get fully immersed
in it. His family life and social life are at risk.

• Career risk

As long as the business is going on well, everybody appreciates, once it

incur loss he may be forced to take up other employment opportunities.
But the would be employer doubts his efficiency and may not
accommodate him. Another career is a question mark.

• Psychological risk

The mental agonies, an entrepreneur is expected to face will always

haunt him throughout his life. Chances are high that he develops blood
pressure or becomes a heart patient or is likely to get ulcer. Once lost,
psychologically he may be beyond redemption.

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3.9Challenges of Entrepreneurship

• Lack of sufficient Infrastructural facilities

Infrastructure include sectors like power, roads, industrial park etc.

Infrastructure development will reduce the transportation cost and
enhance efficiency of the entrepreneur.

• Non- availability of capital

Capital is a must for mechanisation of the process, modernisation of the

process expansion of the business, diversification of the business,
conduct of research and development etc. Besides massive capital is
required as working capital.

• Great risk

Business is risky more over business done in an underdeveloped country

or a developing country is rather riskier. The cost details of the inputs
used may not be readily and reliably available and hence the cost of
figures might be wrong. The size of market and the purchasing power of
the people is also difficult to estimate.

• Non- availability of skilled labour

In India, even though the population size is huge, labour force is

supposed to be abundant but the reality is that employable person are
scared especially skilled labour.

• Entrepreneurship subject not given top priority

The early day’s entrepreneurship was nothing but mere laughed. But
now a days the entrepreneurs are admired and recognised but public
without entrepreneurship being introduced as a subject the upcoming
generation will not be able to catch the idea and dream about owing his

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 own organisation. Thus by teaching entrepreneurship and entrepreneur
is respected more and more entrepreneurial aspirants can be created.

• Lengthy and cumbersome procedure to start business

India in comparison to another country the pains and procedure of

starting a business is no longer cumbersome.

• Absence of technical know-how

It means that all of the recorded and unrecorded information and the
knowledge relating to the technology of the product.

3.10 Reasons why people become entrepreneurs;

Entrepreneurs are the dreamers who are energized to desire to pioneer, lead,
innovate and invest disruptive technologies and products. Years ago,
Indians only thought of following well defined career paths. The children
usually follow the desire of their parents and opted for a career that was
decided by their elders. Following further pushed the young generation
towards entrepreneurship.

• The desire to be their own boss and have better control

• The determination to take risks in the changed global environment

where unexplored new opportunities were present.

• The aim to develop and execute a plan right from the base level

• The aim to do well financially and take their growth better level

• They have the freedom to express their innovative ideas and knowl

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 Chapter- 4

Data analysis and Interpretation

4.1 Descriptive statistical analysis

4.2 Inferential statistical analysis

Data analysis and Interpretation

4.1 Statistical Analysis Descriptive

The collected data was processed and analysed within the time bounded of the
research plan. The data collected from 90 samples are analysed carefully and
interpretations are made accordingly. Diagrams such as pie chart and clustered
column are used for this purpose.

Table 4.1: Table showing gender wise classification of students

Gender No. of respondents Percentage

Male 27 30%
Female 63 70%
Total 90 100%
Source: Primary data

Table no 4.1 shows that 30% of the students are Male and 70% of the students are
Female.

Figure 4.1: Figure showing gender wise classification of students

0 0

30%

Male
Female

70%

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 Table 4.2: Table showing the age of students

Age class No of respondents Percentage

18-21 59 66%
21-24 30 33%
24-27 1 1%
Total 90 100%
Source: primary data

Table 4.2 shows, 66% of students belongs to the first age group that is 18-21. 33% of
students belongs to the second age group 21-24. Only 1% of students in third group

Figure 4.2: Figure showing the age of students

70%
66%

60%

50%

40%
33%

30%

20%

10%

1%
0%
18-21 21-24 24-27

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