ofl Syllabus BA4032: Entrepreneurship Development Unit I: Entrepreneural Competence Entrepreneurship Concept — Entrepreneurship as a Career — Entrepreneurial Personality - Characteristics of Successful Entrepreneurs — Knowledge and Skills of an Entrepreneur. Unit I: Entrepreneural Environment Business Environment - Role of Family and Society - Entrepreneurship Development Training and Other Support Organisational Services - Central and State Government Industrial Policies and Regulations. 9 Unit III: Business Plan Preparation ry Study - Criteria for Selection of Product - Ownership - Capital Sources of Product for Business - Prefeasi Budgeting- Project Profile Preparation - Matching Entrepreneur with the Project - Feasibility Report Preparation and Evaluation Criteria. " 9 Unit IV: Launching of Small Business Operations Planning - Market and Channel Selection - Growth Finance and Human Resource Mobilisation - Strategies - Product Launching — Incubation, Venture capital, Start-ups. 9 Unit V: Management of Small Business ‘ion of Business Units - Monitoring and Evaluation of Business - Business Sickness - Preven! tion and Rehal “Effective Management of small Business - Case Studies.Contents , 22, Environmental Analysis Intemational 76 preneins in 76 * 2 3 fi 3 i 5 z 3 z 4 325. Conducting Feasibility Sudies 86 3 2 Roma § Ss ace rein : Fi : x 3 3 2 ve Eee wa aye ra Cearnrean : cess of Project Evaluation a ii eeeeasiormemer aor Z 3h erases : oo ” it 4: Launching of Small Business oS 2 cece aes tpreaen Step for Lunching of Sel Business 133 ‘act Oy sect Sa fa : 3 ketone 8 Scone ban Eines 3 & 3 Basins EnvicomeatinTamtNedy 3542, Mane of Ptnesip Fis toebation and Venture Capita 4 Tr Stanups : ag an T Company i of Small Business # altuna te a a Bim xeerecal Compete Un 1) jon of Entrepreneur water in the dese souming their respons SMtemaise An entrepreneur as the ability to identify the needs of consumers andthe society at large, andthe Smbition to setup an enterprise fo ‘ese needs ough prodicing nd marketing new products and Services by bringing togetier the available Ind, wealth, and labour. person who buys factor services at certain prices with (ILO), “Enzepreneure are those people who have the [According to International Labour Organisa Together with the necessary resources to take advantage of “ily to ee and evaluate business opportuni them and inate appropriate action to ensure sue According to McClelland, “An entepreneur is someone who exer jrodction and produces more than what he can consume in onder to sel (or exchan fousehold) income”, ne who discovers innovative ideas, advance In ober words, an entrepreneur saeee, tad follows its feat persteny with unig spin. In is way. they taste the success and show the [eu meaning ofthe word ‘entepreneut, These eniepreneurs, having the iniaing and aetion-aking ability are Fesponsile forthe existence of eilferent succesful ventures, are opportnity-seckers and selfish people, but in ceality “There isa misconception about entrepeen (the "heeds ofthe people” they ae highly diven peopl ying t find Characteristics of Successful Entrepreneur Independence: Entrepreneurs are independent persons who like to be “decision makers" “decision implemeaters”. They prefer to iniate with their own effort. They always Taine ban king directions from others. They feel comfortable with profits or ever thei own decisions 3) Risk-Taking: Entrepreneurs inflcneed by uncertainty. They m favourable instead of leaving the hings on fate ever step back while taking a chance of risk, Ther decision-making is not ht sincere and honest ater to ensure thatthe eventual result isSE het on idesiny. They ave te ai ap omataed her cal hei ipocs They havea frm bel tht cir destiny is reputed and designed oy te ‘Once they commit a ofthe enterprise and are ted othe venture by intial Ability of Mind: Personal preferences are not entertained by entrepreneurs. They pee tives environmental on proceed as per the situation. Emotional approach decisions ofa particular issue, Generally, they think an entrepreneur to deal with uncertainties. They ¥y to them. They are known to complete the given work ight and talent enables an eneepreneur to the ability to face al the dificult sittions an i ly cet te i take corrective actions a “They are elle ses takers Sis nena nse They cle res tater a ty deal wih pycoloial well 2 a new markt oe ‘reative production methods and marks 12) Leadership: Lees mes on reasis a Toup of people to achieve common goal trough proper aa ten min i pec i ae ar ae serena Compete 1.1.3. Types of Entrepreneurs trepreneur: These types of entepreneu ing new forthe enter reducing the eos of tal and error. they may be appropriate srepeeneurs have ‘uring any modifica cnterprise uni there i an the ene jv) Drone Entrepreneur: Such enrepencirs do ot believe in making any changes in thc production ara ey an sven bear loser bt refs wo change their pevaling methods and technics. the Types of Business: Entrepreneur vary based heir mate of business, which ae a8 the individuals who dream abouts completely different product or nto realty By establishing a business ene Such eneprencurs do not manufacture but purchase the product from the ight o customers or se retailers ese enreprencurs are manufactures or producers who analyse the curent iri ands and needs of the consumers, and produce goods and services to satisfy dem in an “These are the eniepreneurs who have the capabilities to organise‘and Sach carprencurs ae skilled and experienced to manage al elated setivites land crop ulivaion, aranging fries, technologies used, rz These entrepreneurs dsccy sell kinds of product to the consumers or retail ‘ns, A fage numberof retail enepreneurs are prevalent is Inaba They ae like owners of shops of medicine, repreneur: Enveprencurs, belonging a. They ae engaged in delivering all types of hotels, hospitals, beauty parlours chology Used: Today the world is growing with much faster pace than earlier, The new “decloped and ated by the people are bringing miraculous changes and growth tthe frayan Moorthy and Stephen Joe, who use modern technology, stay abead of ied as: "They posiess craftsmanship inal enepreneu ‘Designing new and tc ae more ineined easing the organisational the service sector are known as service rice: tothe customers, For example, ars can beea pow energies. MBA Thin Semester (EarepeneipDesclopmeny AUC ike techialenuepreneur, they art not related withthe technica Moment 00 e5ting Tatkeng Seep Tor ya ont ata he sles f the products oF srvices, are those people who stat new business rose and proceed with establishment ot i agents’. In modern time, these iy mraiable. These are imaginative and energetic individuals wg Wns and conve tem no eatepreneil Vee ‘Tevefore enteprenedr may be cateporsed as: “Groth Entrepreneur: Such enlreeeneus ceaialy choose the business enterprise with hi Sr bie nepaeu oss sn expan ther snes in fae, 4 SoperGronth Entrepreneur: Those entepreneus who have experienced extensive growth in the 2 oroes ae known a super growth entrepreneus. High rate of profitability, capital gearn termine the satus and growth of he enterprise = ceueprecus, led in ating oF agua aves the sume leon. Veron poveres isan cee sc secs Tse foenmen sees weed oro ieee bec alan ane ing and managing entepreneutal see an exception few years back, with success. Like any general petition from already established Accadng to Level of Modation: Level of motivation defines two types of ‘vo ype of entrepreneurs ‘ers because thy are realy inttet viduals who are atcted a business ‘sift They hae song dese to beso es RY ShOOE this path only for their self- to become entepreneur, eoeu like Aditya Bila, Dhrubal Ambani Eneprnesril Comptes When the Government or state undertakes any the capital and production le who starts his enterprise for the pe mixed up with young starters. The ‘They enjoy diversity ro be a keen approach Portfolio Entrepreneur: Su in th ‘A significant level of rand are ca ing. and ean be observed between these . the entrepreneurs can be a follows: ry wishes to make the world a better place lay a high sense of integrity and ethics in Tuey believe tht companies that are morally and ethically corect and work Fae vnc are always rewarded. An example ofthis personality type is Anita Roddick who isthe ‘Body Shop. cuts wth advisor ype of personality offer advice and help to the customers, Ji and that they should personality possess high energy and charisma Tike tha round such qualities, The personal brand of the entrepreneurs ¥y Shekhar Sharma who is the Tounder of mobile payments type are considered to be extremely creative and often Wf agencics and web designing that requie creativity eativity and talent ofthe enteprencurs frm the basis of ‘Adams i an example ofthis type of personality. ry: Entrepreneurs of this type of personality possess a high sense of curio ome vision and oulouk regarding the future which forms the basis of ther businesses. They believe fn las forthe future and working accordingly. Bill Gates is an example of this (ype of centepreneu vii) The Fireball: The fireball entrepreneurs are optimistic and are always full of energy and ie. Their busneses also revolve ayound sh qualities ofthe enucprencu. The customers of such busines believe thatthe company is strong and has what takes to get the job done but in a tively and igh spine way. For example. te publisher of Foes magazine, Malcolm Forbes is one och entrpreneu.(MBA Third Semester Eaveprecunbip Developmen) AUC 135 the essence of entrepreneurship, The founder of General fe regarded egal issues, wade et, should be possessed by an he shlled at every tures and related plans in order to know the wowledge necessary for an entrepreneur: owls o Fase Mongcmefe Konto Law scenario, it woud be pines fran entrepreneur to iit @ ut comprehending the underlying academic knowledge and ic lo examine the circumstanes propel Entrepreneur well Song academic tecnica Knowledge can undersand the tends and develop We satepies © estence of Financial mansgeme ancial management 3), Koomledge of Operations Managem succes oc allure, despite the econom tepreneurs also come under the law. Entrepreneurs which may afect the functioning oftheir organisation, dangerous, same isthe enepreneur without knowledge nepreneur ean take the help of the legal system in safeguarding efter eos pres. 5) Basie Computer Knowledge: An enteprene ld be able to operate comput fave basic knowledge. a ms, sofware” and. hard with computer system issues, internet. He should 1s essential for an Skills of an Entrepreneur at some import ration Skil fie assistant for administrative work. But, AePFENEUS Mus possess. administrative. ‘They need to be capable of handling all the actives such og tion, managing recivables, invoices pining, cc, “The eaepeser woul beable 0 sae the nw vente Tseugh elective fchievement of shared vision ve ermeen pers ly affects person or object. The state of “This kindof conflict ends up giving adverse ies, coueprencurs have to deal with diferent peor ee import for entepencr oom terpersonal sls node 1 over telephone of face-to-ate. The i) Speaking Skills: Mostly peo commie very ve ene seeing oils realy in lucnce the person the enteprener is dealing ae Is: One of the biggest reasons of misunderstandings Between pr soupMBA Thr Semester (Eavetencunip Development AUC 1.16, Functions of Entrepreneur 116 of enrpeneus cane understood withthe elp of following pins iene i forthe organisation, the enepreneu is o define the ob objectives should be laid-down clearly. Most Z 7 Sbjct th early. Most appropri, the nteprencut ‘manufacturing, trading or service ly Kecping in view the objectives. btsn the machinery and equipment ods and services Beer he procurement Sf machines enteprenut flowing “Technolgy dese Aftersales eric facie sad ) Waray ped tn erprecar hs to manufac Tseeerene tas to manufactre a prc, he mst ave a Stalled market soa oct moc lysis of the product. The te demand and supply ofa pest, price, aso he target make et basis of ownership by th enrepreneurs. 8) Recruitment of Manpower: An cotrepreneur is also respoasible for the manpower plannin ‘organisation. During the reersitment procedure, an entrepreneur hast function the following at an int how they uoderstand and view themselves sede tis pattern of incral and external measurable tate and the interaction between person and Understanding entepreneural personaly is the most commoa need among different scholars and socialists, but many conlets and issues have always been thee, sociated with he concep of personality attributes is de have been discovered by fesearchers that can be themselves ar unsoocersfulenvepreneut, rng the eneprencuil olcome, which may be in dhe form of behaviours, {he observed behaviours. FOr frond wa) is an oppertunisy forthe rerearches. AS per a broad definition of the trepreneurip shoud the corporate a wel a the social enteprencurs, and pansion sas to eos the indivi limit and practice enueprencurship within the {A peristent esearch has been conducted by the researches {lutbues ofthe entrepreneurs ean be associated tothe succes doing tings, entrepreneurs help i solving diferent seas iis bot posible witout unigu ats and abies, Dilfeent personality as of enceprencur ae as By developing new products o innovating new method lows ‘Sul Confdence: Enrepreneuts must have sel-belif and confidence towards thir busines, product and seeraaiis can be schieved when one knows that they are providing quality products at reasonable ces,MBA Thin Semester (Eazereneeni ey are lays rea He st feed by ne is able 10 Mf cc 1.18. Advantages of Becoming an Entrepreneur advanazes of fing an enteprenetr can Be hi es the birth of entrepreneurial, © monetary freedom of an entreprenevt and bis incerity towards the bus society. Ther fe, which cannot be sensed by wealth-centie ind at its downfall then the enreeeneu jt havea fined or epular icone trepreneur v/s Manager an invidvaliavolved in developing his/her own bus ‘ue arranged by hie le management level of hierarchy of man reported in large-sized Hosts desig iB ra Taserlve cretion of new le opportunites in the mark ly entrepreneurs perform ans with discovering of i esoures and techniques, and finally implementing the ideas, of various risks and uncerta and tuning it into a According to Joseph Schumpeter, “Entrepreneurship as defined es ‘ot generally gone inthe ordinary coure of business routine” hen resources are redirected to progressive le further states that entrepreneurship snot work, Entrepreneurship fequiresenteprenurial management, 12.2. Characteristics of Entrepreneurship ‘Thema characterises of entepreneraip ae a fllows nomic activity which encompasses start-up and totally value-riented a well as profi-eiemed sed process where a person of a group of persons Wand selling diferent innovative products and services of enteprencursip i 0 eater for the vices forthe use ofthe consumers andthe society re products and serves. azure of enrepeneuriip it “inovation” Envepeneus always ty 12 now tery wel athe on who docs not prone depending upon 1.2.3. Types of Entrepreneur Entrepreneurial Decision-Process 1 defined sequen Feasible oppomnt ‘options. These opportunities. should match theMWA Tht Smee Enueteeuip Developmen AUC Tieng td Ealing Opry be Desig Resins Pan to be business plan, entepreseurs must carefull rds organising and is tems and om senna mero prc te ers cures incang siled and experienced employees and workers wit emotion and formation, networks, protected patents, atest technology, and brand i enterprise. This isthe most ail manage and grow the enerpse, of natural and phy ‘entrepreneurial activites. It helped remain viable, Inflation, sng power, and exchange rates are sl Compaence ‘some ofthe important factors which provide economy a a whole i) Tani Pot Aanff policy ps entrepreneurial activites. High taf rates alfect dem are necessary to encourage enteprencril ac ur (ax holiday. ser this scheme, goverament creates favourable envtonment by participating in terms of tance in economic ocviies already undertaken by the entrepreneurs. snnepreneuial levels ate highly inflaenced by culture. Religion is also highly otentamt counties being more prone 10 entrepreneurial growth than oer nations. ‘would be appreciated and praised in a county find accumulation of wealh would be wrested a Setby the state. chological and Sociological Factors: inguishable and can be analysed togeth repreneurshi that specially concent : tors: Countries wih high ichnologcal growth also tend to have high penvural grow. This is becuse new technology offers people the opportunity (0 commercial ene i) Educational Factors: There are Lundereducated counties. The dsnet difere experience. Motivation: Motivations the act of stimulating someone or oneself to got a desired course of ation, 0 et button to get he desired results. neursip in highly edacsted soi level of growth and success Wat enepreners. Maa Tn Semester (Enupreneaip Developmen) AUC 1.2.6. Role of Entrepreneurship in Economi 1.26. deny animpotant ole in economic developmen Development roe of them are as follows: Tras Coons Exp Tae 's00ds trough manofacturing excess products can be exported to foreign counties, nibution inthe national income. For example the ‘company, HCL, Godt, Fi ej gmrny, HCL. Ga, Pipa an any [Economic development is encouraged th mrepreneurs, Entrepreneurs throu sea facinate We cistoners: They eee Competence Unt ” improved economic growth. This economic ion: Through innovation, entepreneurs bringin new ideas, prodvts and techniques fr the “atancement ofthe sclety at large. They explore the werld and invoduce new concepts and phiosophics to ‘Become more competent and upgraded In this way they share thei arin economic devs 9) Production Evolution rrepreneurs always keep their eyes and eas open f ‘conta look forward We their procetes. Production evolution involv {ators production proceses. The eolepreneus identify and merge potenti technolo (ahain fo the creation of new products and services. Finally these new products and services are offered profit organisation Uh ovement schools 1.2.7. Problems of Entrepreneurship cpporniles and problems In moder worl, there are mamerous wctncver been an easy task for entepreeur. I als brings in several ‘options of lenders, investors and banks. Business must be prepared wo take up Hsks. Risk can once, poor gully ef product, no market valu, et. Both financial and emotional setbacks may arse de te haneces lle Hence. he entepreneur should estimate the amount of finance which he can sk with 3) Weak Management: Inadequate management of business venture i another big, problem in Chehrensantip. Tis may be due to lack of pasion undetermined objectives, and poor technique of ifesance measurement and conto, te. Such Kind of poor management may Tead the vente towards Te termination or closing. In order to effectively manage the venture, requiged business information should te Siciuy sadied by an entrepreneur. Inentepreneuship, iis very crcial to understand the business Sins and ts products before investing tone). Recrutng and reaniog competent emplyecs is also icessary forthe elective management ofthe venue[ Det Gastar Wacnde Ths ble exhibits Because most beginners sig ‘Taal peopl state busipess atthe age of 2510 30, ofthe performers. They age also observable and mes [An individual who is ready to take cenain amount of nepreneural venue Is known as an enteprener. [According to Spencer and Spencer, “A competency as an underlying characteristic of help to develop enaprene ‘ally tloted fo rteson referenced effective andlor superior performance in job ve “Therefore, entrepreneurial competences are comprised of colletion se which can be sbisned through management Wining and development programmes and, which fc generation of exceptional performance and escalate prof and work egret penn dive him jew to execute all the entrepreneurial functions efficienly, an entrepreneur should possess these ius known ab entepreneurial competencies, Such abuts and behaviours calls. for nothing Tess than excellence infers of entrepreneurial performance. According to Bid, “Enteprencurial competencies ae defined a undesying characteristics possessed by & foton which sult in new ventures eration, survival, and/or gow 420. Entrepreneur versus Entrepreneurship The term entepeeneuship and ener Ios identical. Hence, Enxtepencnip con fe ictal comet ee net decane Fas eneqrenury ae regarded a a tan 1.32. Major Entrepreneurial Competencies s [An entreprene withthe help of competency requirements. Specific core competencies are ‘pecme a recopnsed or known person. Difleeat competences required ia at 1) Superlatendence: An entepreneur should be able 10 manage the resources or pro provide maximum output with he minimum costs, All the activites of the of Supervised by hiner.‘MBA Third Sener (Eneprauip Developmen) AUC Major Entepreneeriat Competence Conceal Taking Prete Foe 3) Deesve: An etepreneur should po ion-makiog power to become successful ‘Sometimes he/she has to take several nd of on ‘Any kind of uncertainty or doubt by the ce decisions in a resolte and determined e success in business canbe attained only ifthe entrepreneur is enterprising and and appetite for success is essential, Casal or unconcerned sporoaeh will ot Nove nd unconventional ideas ae the main reasons for ating succes in busines. ln onder pnd eauepreneur must be ingenious and always ty to find ster means fo impos tepreacurs are based on the clear set of values and and ullooks havea impact en all the actions taken ty edb rigtng: Th evepeneur i eady to emply te, uconenod eign, dink of Sant work they esuling in proressive hanes or comida dere illing to try or open to new ideas without any preconceived notions. oe who understands the imponance of networking in a vty which is capable of providing access te right ff Self Competency perp Worm scopy which al es ane ole the pen eemiSatengn and weaknescs One es omar wi thes can nance a are the personal tris and chart Sense data ‘witout any definite and. implicit understanding. ‘being conscious of sme events happening around equred fom a person can evalste whether be has these repel cnolders who ay Jono lave he company or may change hans as nd when eu eto sgn any document. Fo this ich iv wed forthe pups of owners ofthe company have inte Ubi. ach shareholder.sl exsece Es and Sectors diferent types of shares, an abo fase Funds FOm ether mount of fee to the coopera ‘ontibutio oro ‘owned and managed by its members ot customers who buy the let payin coeperave organisation, shout accumulating cpita and each member has ‘ery evononical a well se ‘There are wo things which are very establishment ofa Joint cot befor the stit-up of company. contol Tor the post of diectors. Whi ton: The management and ownership io work seriously towards ther respon Cooperatives are service-oriented organisations. They provige non-profit services ‘members. However, they can eam profits by rendering their services to outsiders oer fon canbe formed very easily. A group often individuals with ‘tzansaion by. geting M ropitered with the Registrar of — ahd