Entrepreneurship Incubation Unit 1

Presented By :
Dr. Raj Kumar Singh

Professor , HOD (Deptt. Of Commerce), Head (R & D) & Chairperson
Centre for Entrepreneurship , Innovation & Skill Development
(CEISD)
School of Management Sciences
Varanasi
Entrepreneur
 Entrepreneur word is Derived from French Word
“Enterprendre” means “To Undertake”
 It was applied to leaders of military expeditions in the early 16th
Century
 In 1790 AD it was used in the context of other types like
Architecture and Contractors of public work
 Oxford English Dictionary in 1887 states that entrepreneur
simply is the director or manager of a public musical institutions,
one who puts entertainments especially musical performance
 In 1933, the word entrepreneur had a place in the business and
would mean “one who takes an enterprise especially a contractor
acting as intermediary between capital and labour”
 Then the concept was further upgraded as Entrepreneurship is
an undertaking of enterprise and one who coordinates capital
and labour for the purpose of production is an entrepreneur.
 Emergence of this becomes the Entrepreneurial Class
Prof(Dr) Raj Kumar Singh , Professor, HOD ,
Head(R&D), Chairperson-Centre For
Entrepreneurship,Innovation & Skill Development
(CEISD) , SMS , Varanasi 2
Concept of Entrepreneur
 Richard Cantillon (1755) : Entrepreneur is a person who pays
a certain price for a product resources while consequently
assuming the risk of enterprise.
 Adam Smith (1776) : Entrepreneur is an individual who
undertook the formation of an organization for commercial
purpose with unusual foresight who could recognize
potential demand for goods and services reacting to
economic change , becoming the economic agents who
transformed demand into supply.
 J. B. Say (1803) : Entrepreneur is one who possessed certain
arts and skills of creating new economic enterprises, yet a
person who had exceptional insight into society’s need and
was able to fulfil them. Entrepreneur is the co-ordinator and
organizer of resources to Singh
Prof(Dr) Raj Kumar design a business
, Professor, HOD , enterprise.
 Carl Menger (1871) : Entrepreneur is the change agent who
transforms resources who transforms resources into useful
goods and services often creating the circumstances that
leads to industrial growth .
 Joseph Schumpeter (1934) : Entrepreneurs is a force of
creative destruction whereby established ways to get the
things done. It is a process and entrepreneurs as innovators
who use the process to shatter the status quo through the
new combinations of resources and new methods of
commerce.
 Peter F. Drucker (1985) : Entrepreneurship occurs when
resources are redirected to progressive opportunities not
used to ensure administrative efficiency .The redirection of
resources distinguishes the entrepreneurial role from that of
the traditional Prof(Dr)
management role.
Raj Kumar Singh , Professor, HOD ,
Economic Approach Theory
 This view point gives emphasis that
Entrepreneurship is basically concerned with the
different economic activities and meant for the
economic enrichment and growth where the
economic conditions are most favourable. Here
the Economic Incentives are the main drive for
the entrepreneurial activities.
 Entrepreneurship is the process of initiating a
new venture , organizing the resources it requires
and assuming the risks it entails. Thus the word
‘Entrepreneurship’ is derived from the 17th century
French word “Entreprendre” which refers to the
individuals who were undertook the risk of new
enterprise. Prof(Dr) Raj Kumar Singh , Professor, HOD ,
Sociological Approach Theory
 Sociologists consider the entrepreneurship as
a process of role performance . Entrepreneurs
are expected to be governed by the wishes of
the society , customs, ethics, values etc.
 Entrepreneurship is inhibited by the social
system , which denies opportunities for the
creative facilities . The forces of customs ,
values, the rigidity of status, distinctness of
new ideas and of the exercise of intellectual
curiosity , combine to create an atmosphere
inimical to experiment and innovation.
Sociologists argue that entrepreneurship is most likely to
emerge under a specific social culture. According to
them social sanctions, cultural values and role
expectations are responsible for the emergence of
entrepreneurship . Socio - Cultural value channel
economic action that gives birth to entrepreneurship. As
per the Sociological Theory the concept of innovation
and its corollary development embraces five functions:
 Introduction of a new good
 Introduction of a new method of production
 Opening of New Market
 Conquest of new source of supply of raw materials and
 Carrying out of a new organization of any industry
 Thomas Cocharan (1965) : Entrepreneurs represents
society’s model personality. Their performance depends
upon their own attitude towards their occupations , the
role expectations of sanctioning groups and the
occupational requirements of the job. Society’s values
are the most important determinant of the attitude and
role expectations.
 Peter Marris (1967) : Entrepreneurship requires to
assemble or reassemble from what is available very
concrete kind of imagination to see what others have
missed , sensitivity to business and social environment
rest in industrial development and entrepreneurial
courage . These are the important factors that make an
entrepreneur Prof(Dr)
. Raj Kumar Singh , Professor, HOD ,
Psychological Approach Theory
According to the Psychologists, entrepreneurship is
most likely to emerge when a society has sufficient
supply of individuals possessing particular psychological
characteristics. The main characteristics which motivate
and drive people towards entrepreneurial activities :
 An urge to do something
 To fulfill a dream
 An institutional capacity to see things in a new way
(Vision)
 Energy of will and mind to overcome fixed habits of
thoughts
 The capacity to withstand social opposition
 The high needProf(Dr)
for Raj
achievement
Kumar Singh , Professor, HOD ,
 David C McClelland (1961) : It is the high need for
achievement which drives people towards
entrepreneurial activities . Achievement motive is
basically measured through the child rearing practices
which stresses standards of excellence , material
warmth, self –reliance ,training and low father
dominance . Individuals with high achievement motive
tend to take keen interest in situations of high risk ,
desire for responsibility and desire for a concrete
measure of task performance.
 E. E. Hagen ( 1964) : Withdrawal of the status respect as
the trigger mechanism for changes in personality
formation . Status withdrawal is the perception on the
part of members of some social group in the society
whom they respect and whose esteem they value.
Anthropological Theory
This theory says that entrepreneurship has essentially to

do with connecting two spheres in the society between
which there exists a difference in value, something
which is cheap in one sphere, may be expensive in
another sphere. Entrepreneurship a bridge which tries
to integrate diversified values and minimize the huge
discrepancy in value.

Libenstein’s X-Efficiency Theory
X-Efficiency is basically the degree of

inefficiency in the use of the resources
within the firm ; it measures the extent
to which the firm fails to realize its
productive potential.

Dynamic Entrepreneurship Innovation Theory
As per this theory the Entrepreneurs are the

catalysts that disrupts the stationary circular flow of
the economy and thereby initiates and sustains the
process of development.

Harward School Theory
Entrepreneurship comprises any

purposeful activity that intimate,
maintain or develop a profit – oriented
business in interaction with the internal
situation of the business or with the
economic, political and social
circumstances surrounding the business.
Theory of High Achievement
Entrepreneurship is doing things in a

new and better way and decision
making under uncertainty with stress on
the need for achievement or
achievement orientation as the most
directly relevant factor for explaining
economic behavior.
Max Weber’s
Entrepreneurial energies are

generated by the adoption of
exogenously – supplied religious
belief.

Theory of Cultural Value
On the process of economic

development, entrepreneurs are not
seen as being deviant or super normal
individuals but rather as representing
society’s modal personality molded by
the inherent culture.

Concept of Entrepreneurship
 Entrepreneurship is the process that involves all
actions an entrepreneur undertakes to establish
an enterprise to give reality to his business idea.
It’s a creative and innovative response to the
environment.
 Entrepreneurship is a composite skill, the
resultant of a mix of many qualities and traits.
These includes imagination readiness to take
risks, ability to bring together and put to user
other factors of production, capital, labour , land ,
as also intangible factors such as the ability to
mobilize scientific and technological advances.
Definitions of Entrepreneurship
Higgins B.
Entrepreneurship is meant to the function of seeking
investment and production opportunity , organizing
and enterprise to undertake a new production
process, raising capital . hiring labour , arranging the
supply of raw materials , finding site, introducing a
new technique and commodities , discovering new
sources of raw materials and selecting top mangers of
day to day operations of the enterprise .
This definition deals with the functions of an
entrepreneur .These functions included handling
economic activity, undertaking risk, creating some
thing new and organizing and coordinating resources.
John Kaso and Howard Stavenson
Entrepreneurship is an attempt to create value
through the recognition of business opportunity,
the management of risk taking appropriate to the
opportunity and through the communicative and
managerial skills to mobilize human , financial
and material resources necessary to bring a
project to complete.
In this definition , entrepreneurship is treated as
a dynamic and risky process. It incorporates the
capital , technology and human talent .
Entrepreneurial process itself is the result of art
and science.
Schumpeter Joseph .A.
Entrepreneurship as defined essentially consists
in doing things that are not generally done in the
ordinary course of business routine.
In this definition , Schmpeter emphasized on the

innovation process to be undertaken by the
Entrepreneur. Entrepreneur is required to gather
resources , organize talent and provide leadership
to make the business a commercial success.

Ronstadt. Robert
Entrepreneurship is the dynamic process of
creating incremental wealth. This wealth is
created by individuals who assume the major risk
in terms of equity , time and or career
commitment of providing value for some product
or service. The product or service itself may or
may not be new or unique but value must
somehow be infused by the entrepreneur by
securing and allocating the necessary skills and
resources.
This definition identifies the creation of value
creation is a risky process but entrepreneurs has
to reduce the risks intern of equity and time.
Drucker, Peter, F.
Entrepreneurship is a systematic innovation
which consists of the purposeful and organized
search for changes and in a systematic analysis of
the opportunities such changes might offer for
economic and social innovation.
Entrepreneurship occurs when resources are
redirected to progressive opportunities not used
to ensure administrative efficiency.
Entrepreneurship is not natural , It is not
creative, It is a work. Entrepreneurship requires
Entrepreneurial Management. Specifically,
entrepreneurial management requires policies
and practices in four major areas.
Types of Entrepreneurship
Opportunity Based Entrepreneurship :
An entrepreneur perceives a business opportunity
and chooses to pursue this as an active career
choice.
Necessity based Entrepreneurship:

An entrepreneur is left with no other viable
option to earn a living, It is not the choice but
compulsion , which makes him/her choose
entrepreneurship as a career.
Phases of Entrepreneurship
 Initial Phase :
Creation of awareness about the entrepreneurial
opportunities based on survey
 Development of Phase :
Implementation of training programmes to
develop motivation and management skills.
 Support Phase :
Infrastructure support of counseling and
assisting to establish a new enterprise and to
develop existing units.
Nature & Characteristics of Entrepreneurship
Entrepreneurship is expected to identify the
environmental changes as an opportunity and
uses the factors of production to produce new
goods and services. They are motivated to
 Initiative and Promotion of New Establishment

 Perceiving opportunities for profitable
investment
 Risk bearing
 Decision Maker
 Introduction of Innovation
 Provision of Capital
 Coordination of different factors of production
 The desire to found a private commercial
kingdom
 The will to conquer and prove his superiority and
 The joy of creating, getting things done or simply
of exercising one’s energy and ingenuity
 Industry oriented effort
 Performing social function
 Evolving out of coordination of various matters.
 Accelerating of economic development
 Re-direction of resources to progressive
opportunity
 Dynamism & Rapid Changes
 Continuity
 Individuality
 Recognized as pioneer of economic development
activity
 Purposeful Activity
 Creative Response to environment
 Gap Filling Function
 Optimum use of resources
 Information technology and communication
 R& D Technology
 Function of achievement
 Group leadership and managerial skills
 Organisation skills
 Function of Economical, Social and Political Structure
 Function of High Achievement
 Organisation Building Function
 Function of Managerial Skills And Leadership
 Function of Status Withdrawal
 Function of Social, Political And Economic Structure

Need of Entrepreneurship
 To raises productivity through commercialization
of new technical and other forms of innovations,
inventions and products.
 To promote Capital Formation
 To create Employment Opportunities through
establishment of new enterprises
 To do Balance Regional Development
 To reduce the concentration of economic power
 To do the equitable redistribution of wealth,
income and even political power
 To do the effective resource mobilization and
utilization of capital and skill
 To do the crucial role in the restructuring and
transforming economy
 To do the backward and forward linkages for the
economic development
 To Promote the Export & Import
 To Facilitates the transfer of technologies
 To Facilitates the proper utilization of resources
 To Improves the standards of living
 To Facilitates a balanced economic development
 To bring dynamism in industries by launching
innovative products and services
 To create new market and facilitates expansion
into international markets.
Function of Entrepreneurship
 Economic Growth Driver
 Balance Regional Development
 Employment Creation
 Capital Generation
 Export & Important Promotion
 Promotion of Secondary
Entrepreneurship
 Skill Development
 Intrapreneurship Development
 Gives platform to the Innovation,
Invention , New Product / Service
Development
 Distribution of Wealth
 Human Resource Development
 Natural Resource Management
 Value Creation
 Foreign Exchange Generation
 Technological development and transfer
 National Integrity and Stability
 Social Harmony
Enterprise
Entrepreneurial activity, especially when
accompanied by initiative and resourcefulness
through an organization or economic system
where goods and services are exchanged for
one another or for money. Every business
requires some form of investment and enough
customers to whom its output can be sold on a
consistent basis in order to make a profit.
Enterprise can be privately owned, not-for-
profit or state-owned.
The term “enterprise” has two common
meanings.
 Firstly, an enterprise is simply another

name for a business.
 Secondly, and perhaps more
importantly, the word enterprise
describes the actions of someone who
shows some initiative by taking a risk by
setting up, investing in and running a
business.Prof(Dr) Raj Kumar Singh , Professor, HOD ,
Look again at two key words above – initiative and risk.
 A person who takes the initiative is someone who “makes
things happen”. He or she tends to be decisive. A business
opportunity is identified and the person does something
about it. Showing initiative is about taking decisions and
being bold – not everyone is like that!
 Risk-taking is slightly different. In business there is no
such thing as a “sure fire bet”. All business investments
carry an element of risk – which is the chance or
probability that things will go wrong. At the worst, the risk
of an enterprise might mean the person making the
investment loses all his/her money or becomes personally
liable for the debts of the business.
 The trick is to take calculated risks, and to ensure that the
likely returns from taking a risk are enough to make the
gamble worthwhile.
 Someone who shows enterprise is an “entrepreneur”.
Journey of Term “ Entrepreneur”
Period Connotations & Meaning
Indus Valley Civilization No Connotation
Ancient India No Connotation
Early 16th Century Referred To Persons Engaged

In The Military Expeditions
Early 17th Century Extended To Persons engaged In

Engineering Activities such as Construction
and Fortifications
18th Century Persons Engaged In The Economic Aspect of

Human Activity
In Early 18th CenturyProf(Dr) RajThe

KumarTerm “ Entrepreneur”
Singh , Professor, HOD , was given by “Richard
Head(R&D), Chairperson-Centre ForCantillon” of France
Definitions of Entrepreneurs
 F.H.Knight :
Entrepreneur are a specialized group of person
who bear risks and deals with uncertainty.
 J.S. Mill :
Organizer who was paid for his non-manual type
of work
 Leon Walrus :
Entrepreneur is the coordinator of basic factors of
production and act as fourth factor of production
who combines other factors such as land, labour
and capital. Prof(Dr) Raj Kumar Singh , Professor, HOD ,
 Joseph Schumpeter :
The entrepreneurs in an advanced economy is an
individual who introduces something in the
economy-a method of production not yet tested
by experience in the branch of manufacturer
concerned , a product with which consumers are
not yet familiar, a new source of raw material or of
new markets .
 Peter F. Drucker :
One who always searches for the changes ,
respond to it and exploit it as an opportunity.
Innovation is the specific tools of entrepreneurs,
the means by which they exploit changes as an
opportunity for a different business or a different
service. Prof(Dr) Raj Kumar Singh , Professor, HOD ,
 Walker:
Entrepreneur is one who is endowed with more
than average capacities in the taks of organizing
and coordinating the various other factors of
production
 Robert D. Hisrich :
The person who is going to establish a successful
new business venture must also be a visionary
leader – a person who dreams great dreams
 Encyclopedia Americana :
An entrepreneur is a businessman who assumes
the risk of bringing together the means of
production including capital, labour and material
and receives his reward in profit from the market
value of his Prof(Dr)
product. Raj Kumar Singh , Professor, HOD ,
 International Labour Organisation :
Entrepreneur are people who have the ability to see
and evaluate business opportunities together with the
necessary resources to take advantage of them and to
intimate appropriate action to ensure success.
 Cantillon :
Entrepreneur is the agent who buys means of
production at certain prices in order to combine them
into a product that he is going to sell at prices that are
uncertain at the moment at which he commits himself
to his costs. The entrepreneur function is of risk
taking and uncertainty bearing and who act as a
dealer who purchases the means of production for
combining them into marketable products.
 J.B. Say :
The entrepreneur is the economic agent who

unites all means of production, the labour force
of the one and the capital or the land of the others
and who finds in the value of products his results
from their employment reconstitution of the
entire capital that he utilizes and value of the
wages, the interest and the rent which he pays as
well as profits belonging to himself.

Characteristics of Entrepreneurs
 Visionary
 Change Agent
 Self Confidence
 Energy Level
 Calculated Risk Taker
 Need for Achievement
 Risk for Ambiguity
 Locus of Control
 Desire to create one’s own Destiny
 Desire to make a difference
 Desire to reach one’s full potential
 Desire to contribute to society
 To do what one’s enjoy
 Organizational Ability
 Out of Box Thinker
 Creativity
 Innovator
 Independence
 Team Builder
 Integrity and Reliability
 Initiative and Responsibility
 Tolerance for Failure
Essential attributes (traits) and Skills of an
Entrepreneur
 Visionary
 Dare To Dream
 Hard & Efficient Worker
 Highly Optimistic
 Never Let Success Go To Head
 Independence
 Foresight
 Intelligent
 Emotional Stability
 Good Organiser
 Creative
 Innovative
 Sound Knowledge
 Preservance through Continuous Effort
 Team Spirit
 Passionate
 Conceptually Strong
 Set Clear Goals
 Curiosity For Learning
 Information Seeker
 Strive For Excellence
 Build Self Confidence
 Looking For Opportunity
 Futuristic Planner
 Futuristic Planner
 Willingness to Change
 Quality Conscious
 Problem Solving Approach
 Persuasiveness
 Effective Monitoring
 Employee Welfare Orientation
 Effective Strategists
 Assertive Behaviour
 Human Relation Ability
 Motivator
 Initiator Prof(Dr) Raj Kumar Singh , Professor, HOD ,
 Risk Taker
 Spirit of Accepting The Challenge
 Sense of Conviction
 Resourcefulness
 Ability to Manage Failure
 Build Core Competencies & Excellence
 Work Ethics
 Building Strong Organisational DNA
 Professional Integrity
 Professional Honesty
 Flexible Approach
 Professional Maturity
 Be a Role Model
 Administrative Ability
Skills of an Entrepreneur
 Individual Skills
 Functional Skills
 Knowledge Skills
 Analytical Skills
 Problem Skills
 Negotiation Skills
 Interpersonal Thinker
 Communication Skills
 Business Skills
 Behavioural Skills
 Risk Management
Group Skill :
 Ability to Work Together
 Ability to Learn Together
 Ability To use Task Forces/Project Teams
 Ability To Work In Unstructured Situation
 Ability To Work With Scarce Resource Base
 Technical Skill
 To know about the Technology
 Ability to Relate Technology With New Product
Development
 Technical Business Management
 Ability to Update Technology
Business Skill
 Planning & Goal Setting
 Decision Making
 Marketing
 Finance
 Accounting
 Management
 Control
 Negotiation
 Venture Launch
 Managing Growth
 Innovation Skill
 Value Creation Skill
 Market Sensing Skill
 Organisational Development Skill
 Right People Selection SkillSingh , Professor, HOD ,
Prof(Dr) Raj Kumar
 Network & Alliance Development Skill
Communication Skill
 Be Flexible
 Be Open in Communication
 Not To Blow Your Own Trumpet
 Pit Intelligence In Words
 Emphasise On The Issues
 Effective Communication
 Self Awareness
 Empathy
 Responsiveness
 Alertness
 Timeliness
 Proficiency
 Clarity
 Focus
 Compassion
 Positive Attitude
 Presentation
 Listen Willingly & Actively
 Illustrative Communications
 Clarity
 Good Knowledge of Languages
 Self Awareness
 Social Awareness
 Appreciating Validating Others
 Understanding Other’s Role
 Building Positive Relationship With Friends & family
 Taking Responsibility & Coping
Prof(Dr) Raj Kumar Singh With
, Professor, HOD , Stress
Functions of an Entrepreneur
 Innovation
 Risk Taking
 Organisation and Management
 Business Decisions
 Perception and Forecasting of market
opportunities
 Gaining command over scarce resources
 Purchasing inputs
 Marketing the products
 Dealing with the officials
 Managing human resource
 Managing Customers and Suppliers relations
 Managing Finance
 Managing Production
 Acquiring and overseeing the assembly of the
factory
 Industrial Engineering
 Upgrading Process and Product
 Introducing new production techniques and
products
 Leadership
Managerial Function
 Planning
 Organizing
 Staffing
 Directing
 Controlling
 Strategic Management
 An Eye on Competitors
Promotional Function :
 Identification and Selection of Business Idea
 Preparation of Business Plan or Project Report
 Arrangement for Finance
Commercial Functions :
 Production/Manufacturing
 Marketing
 Accounting
 Management of Raw Material and Machines

Types of Entrepreneurs
 Innovative Entrepreneur :
They are characterized by effective assemblage of
information and the analysis of results originated
from different sets of combinations. They raise money
to launch a new innovative enterprise , assemble the
various innovative factors, select top executives and
set the organization operational in an innovative
manner.
 Imitating Entrepreneur :
These entrepreneurs are those entrepreneurs who are
unable to innovate the changes themselves but they
are capable enough to imitate the techniques and
technology innovated by the innovating
entrepreneurs.
 Fabian Entrepreneur :
These entrepreneurs are shy and lazy in their working.
Their dealings are guided by the customs, religion,
tradition and past practices. Fabian Entrepreneurs are
always conscious in their dealings and believe in
skepticism in initiating any change.
 Drone Entrepreneurs :
These entrepreneurs are those who are due to their rigid
approach not inclined to bring changes in their production
system as demanded by the change in consumer
preferences , technological innovations, economic and
social behavior of the prospective customers. Market
always provided opportunities to the entrepreneurs but
this type of entrepreneurs generally fail to use these
opportunities in profitable ways.
Classification of Entrepreneurs
According to type of Business :
 Trading Entrepreneurs
 Industrial Entrepreneurs
 Corporate Entrepreneurs
 Agricultural Entrepreneurs
 Retail Entrepreneurs
 Service Entrepreneurs
 Re-engineering Entrepreneurs
 Service Entrepreneurs
 Healthcare Entrepreneurs
According to use of Technology
 Technical Entrepreneurs
 Non-Technical Entrepreneurs
 High-Tech Entrepreneurs
 Low-Tech Entrepreneurs
 BPO
 KPO
 LPO
 IT Entrepreneurs
 E-Entrepreneurs
According to Motivation
 Spontaneous Entrepreneurs
 Induced Entrepreneurs
 Motivated Entrepreneurs
 Forced Entrepreneurs
 Accidental Entrepreneurs
According to the growth
 Growth Entrepreneur
 Super-growth Entrepreneur
 Aspiring Entrepreneur
 Lifestyle Entrepreneur
 Serial Entrepreneurs
According to stage of development
 First Generation
 Second Generation
 Third Generation
 Modern Entrepreneurs
 Inherited Entrepreneurs
 Classical Entrepreneurs
According to Area
 Urban
 Rural
 Global
 National
 Regional
 Local Prof(Dr) Raj Kumar Singh , Professor, HOD ,
According to Sector
 Engineering
 Agriculture
 Handicraft
 Khadi
 Handloom
 Services
 Automobile
 Pharmaceutical
 FMCG

 Capital Goods
 Telecommunication
 IT & ITES
 Education
 Healthcare
 Hospitality
 Banking
 Microfinance
 Logistic
 Social Entrepreneurs
 Export etc.
According to Organisation
 Sole Proprietary
 Partnership
 Limited Liability Partnership
 Private Limited
 Public Limited
 NGOs
 Non-Profit Organisation
 Government Organisation
 Public
 Public Sector Organisation
 Joint Entrepreneurs
 Intrapreneurs
According to Age and Gender
 Man
 Women
 Young
 Old
 Middle Aged
According to size of Enterprise
 Cottage Entrepreneurs
 Micro Entrepreneurs
 Small Scale Entrepreneur
 Medium Entrepreneurs
 Large Entrepreneurs
Difference between Entrepreneurship & Entrepreneur
Entrepreneur Entrepreneurship
(Refer To A Person) (Refer To A Process)
Entrepreneur is an administrator Entrepreneurship is an

administration
Risk Bearer Risk bearing activity

Innovator Process of Innovation
He combines factors of production Process of use of factors of
production
Initiator Process of taking initiative

Leader Action of Leadership
Planner Planning
Programmer Action
Entrepreneur Entrepreneurship
(Refer To A Person) (Refer To A Process)
Communicator Communication
Creator Creation
Visualizer Vision
Technocrat Technology
Decision Maker Decision
Risk Taker Risk Taking
Motivator Motivation
Difference between Entrepreneur & Manager
Bases of Entrepreneurs Professional Managers
Difference
Motive Start a venture by setting up Render Services in already
an Enterprise for his established enterprise
personal gratification
Status Owner of the Enterprise Employee of the Enterprise

Risk Bearing Bear All Risk & Uncertainty Does Not Bear All Any Risk
Rewards In form of profit which is In form of salary which is
uncertain certain & fixed
Innovations Act as a Change Agent Execute The Plan & Translate
Ideas into Practices
Qualifications Not Specifically Needed Specifically Needed
Time Long Horizon Short Term Basis
Orientation
Bases of Entrepreneurs Professional Managers
Difference
Failure & Mistakes Treat as Learning Experience Try To Avoid Mistakes
Decision Free To Take Decision Depends On Owners
Who They Serves Self & Customers Others
Attitude Towards May Change The System Protect & Nurture The
Systems System
Relations With Transaction & Deal Making Through Hierarchy

Others
Attention On Technology & Market On Inside of The

Organisation
Action Full Responsibility Delegate Actions

Entrepreneur Vs Intrapreneur

S. No. Bases of Differences Entrepreneur Intrapreneur
1. Dependency Independent in his Dependent on

operations. Entrepreneur
2 Raising of funds Himself raises funds for Funds are not raised
enterprise by him
3 Risk Bears the risk involved in Does not fully bear

business the risk
4 Operation Operates from outside Operates from

within

Indian Models in Entrepreneurship
 Unorganised Micro Entrepreneurship

 Gandhian Model of Swadeshi
 Family Business Model
 Agriculture Based Model
 Ancient Barter Business Model
 Government Run Entrepreneurship

Categorization of MSME
Definitions of Micro, Small & Medium Enterprises In
accordance with the provision of Micro, Small & Medium
Enterprises Development (MSMED) Act, 2006 the Micro,
Small and Medium Enterprises (MSME) are classified in
two Classes:
 Manufacturing Enterprises
The enterprises engaged in the manufacture or production
of goods pertaining to any industry specified in the first
schedule to the industries (Development and regulation)
Act, 1951) or employing plant and machinery in the process
of value addition to the final product having a distinct
name or character or use. The Manufacturing Enterprise
are defined in terms of investment in Plant & Machinery.
 Service Enterprises
The enterprises engaged in providing or rendering of
services and are defined in terms of investment in
equipment.
MSME Policy in India
Definition of MSME : (w.e.f. 01.07.2020)
Micro Enterprises :
Investment in Plant and Machinery or Equipment:
Not more than Rs.1 crore and
Annual Turnover ; not more than Rs. 5 crore
Small Enterprises :
Not more than Rs. 10 crore and
Medium Enterprises :
Not more than Rs. 50 crore and
Family Business Enterprises and Succession Planning
Family businesses are those where policy and
decisions are subject to significant influences by one
or more family units. This influence is exercised
through ownership and sometimes through the
participation of family members in management. It is
the interaction between two sets of organization,
family and business that establishes the basic
character of the family businesses and defines its
uniqueness.
3 Circle Model
 Family
 Ownership
 Management
Characteristics of family Business
 A group of people belonging to one or more families
run one business enterprises
 Position in family business is influenced by the
relationship the family members enjoy among
themselves
 Family exercises control over business in the form of
ownership or in the form of management of the firm
where family members are employed on key positions.
 Family exercises the influence on the firm’s policy
directions in the mutual interest of family and
business
 The succession of the family business goes to the next
generation
 Caste related family businesses enjoys dominant
culture.
Types of Family Businesses
 Family-Owned Business
 Family-Owned and Managed Business
 Family –Owned and Led Business
 Advantages of Family Business :
 Common Value
 Strong Commitment
 Loyalty
 Stability
 Decreased Costs
Succession Planning
 Families worldwide enjoy the pride, connection,
strategic advantage and the financial reward of having
a successful family business. How do you protect what
your family has worked so hard to build?
 Many family businesses look to succession planning
as the solution for ensuring the viability of the family
business. However, many business owners look at
succession as an event – a day in the life of their
business when they hand the reins to their children,
neices and nephews.
 Succession planning is an ongoing process that
includes critical decisions as well as careful planning
and preparation in order to successfully transition
ownership, leadership and management of the
business and the family's assets to successive
generations.
Continuity Planning & Succession
Continuity planning is the term that is used to look
at the whole of the family and the business and design
a custom plan that aligns with the family’s values,
builds a strong foundation for future business
success, prepares successors for increased leadership
and ownership responsibilities, and creates a
seamless transition to the next generation and
beyond. Successful continuity planning can foresee
the unique challenges faced by sibling teams, cousin
teams, and larger groups of owners/shareholders and
puts in place the structures to ensure strong
leadership and effective decision making, all while
protecting family relationships.
Six simple steps for succession in family businesses
 If you work in the family business sector, chances

are you run into the same statistics over and over
again:
 Seventy percent of family businesses fail or
sell before the second generation takes over
 Ninety percent of family businesses fail or sell
before the third generation takes over.
 Every family business is different, but the
characteristics of good succession planning are
universal. Here are six simple steps that your
business should incorporate.

Steps for Succession
 Step 1: Treat succession planning like it is urgent

 Step 2: Plan for a process, not an event
 Step 3: Rally around your family values
 Step 4: Hold meetings and discuss succession
 Step 5: Educate your family
 Step 6: Develop a written family constitution

Incubation , Incubation Process and Incubators
Business Incubation :
"Business incubation is a unique and highly flexible combination

of business development processes, infrastructure and people
designed to nurture new and small businesses by helping them
to survive and grow through the difficult and vulnerable early
stages of development."
Business incubation provide SMEs and start-ups with the
nurturing environment needed to develop and grow their
businesses, offering everything from virtual support, rent-a-desk
through to state of the art laboratories and everything in
between. They provide direct access to hands on intensive
business support, access to finance and experts and to other
entrepreneurs and suppliers to really make businesses and
entrepreneurs to grow.

Business incubation provides a nurturing,
instructive and supportive environment for
entrepreneurs during the critical stages of starting up
a new business. The goal of incubators is to increase
the chance that a start-up will succeed, and shorten
the time and reduce the cost of establishing and
growing its business. If successful, business
incubators can help to nurture the companies that
will form the true creators of a region’s or nation’s
future wealth and employment.
Incubators serve as a launching pad for young

and small businesses. Start-ups, which are innately
dynamic entities, need access to support, and
incubators are a means
Prof(Dr) of, Professor,
Raj Kumar Singh providing HOD , this.
Business Incubator
A business incubator is a Ecosystem created to
offer startups and new ventures access to the
resources they need, all under one roof. In
addition to a desk or office, incubators often
provide resident companies with access to expert
advisors, mentors, administrative support, office
equipment, training, and/or potential investors.
Most incubators are created as temporary
launching pads for new businesses, with the
expectation that participants will eventually
graduate and move out. However, not all
graduates are successful, unfortunately, and some
decide their business concept wasn’t viable and
shut down instead.
Incubators vs. Accelerators
Many people use the terms “Incubator” and “Accelerator”
interchangeably when the two types of program often have
different goals and different timeframes.
 Incubators vary, but most exist to help a founder or team
determine if a business concept is viable and then set them
up for success. Some incubators put a time-limit on how
long a company can stay in the space, but one to two years
is fairly typical. Some incubators take an equity stake and
others simply charge a fee to be in the space and able to tap
into the many available resources.
 Accelerators, on the other hand, are short-term, fast-paced,
structured programs lasting 3-4 months. Many accelerators
are competitive, limit the number of participants, and may
provide cash infusion up front or on achievement of a
milestone. Most companies hope that an accelerator will
put them on an aggressive growth trajectory
Innovation
The process of translating an idea or invention into a
good or service that creates value or for which
customers will pay. To be called an innovation, an idea
must be replicable at an economical cost and must
satisfy a specific need. Innovation involves deliberate
application of information, imagination and initiative
in deriving greater or different values from resources,
and includes all processes by which new ideas are
generated and converted into useful products. In
business, innovation often results when ideas are
applied by the company in order to further satisfy the
needs and expectations of the customers.
Types of Innovation
Product Innovation:
Products concern both material products and intangible services
such as services that meet customer needs and are thus acquired
by the customer. With product innovations, a company earns its
money and tries to differentiate itself from the competition.
Service Innovation:
Service innovations are like product innovations when it comes to
selling them directly to the customer, e. g. insurance or
management consultancy. Even if services are not actively sold,
as in the case of manufacturing companies, each company still
provides services to its customers, for example in logistics,
complaints, sales advice, etc., even if they are not actively sold.
This is also where innovation comes in when it comes to
differentiation and customer enthusiasm.
Business model Innovation :
The business model is the way a company functions and
earns money. The business model innovation encompasses
innovations in strategy, marketing, supply chains, value
creation, pricing or cost structures.
Process and Technology Innovation:
As the name implies, these are technological
innovations, such as the creation of products and services.
In principle, they are also process innovations. These
include, for example, production processes or IT
technologies for apps. Product innovations, quality
improvements or cost savings often go hand in hand with
process and technology innovations.
Organizational Innovation:
Organizational innovations affect the process and
organizational structure. These can be organizational
process innovations or management innovations, e. g. new
tools for measuring customer satisfaction or optimizing
delivery processes to reduce costs.
Social Innovation:
Social innovations are innovations where the benefit lies with
society and the purpose is not primarily profit. Examples include
innovation in education, poverty reduction, equal opportunities
and health.
Environmental Innovation:
All innovations that contribute to improving the environment are
environmental innovations. For example, environmentally
friendly products, contributions to environmental protection or
the avoidance of emissions.
Radical Innovations :
It is related with the new products, services or processes and
involve significant change and innovation. Accordingly, the
impact is also greater, for example, new markets can be created
as a result.

 Incremental Innovations :
These innovations are the optimization and further
development of existing products, services or processes.
The purpose and benefits are optimization of customer
benefit, cost reduction, repositioning, adaptation for
introduction into new markets or adaptation to new
circumstances such as new laws and standards.
 Sustaining Innovations:
Preserving or continuous innovation refers to the
improvement of existing, similar to incremental
innovation. This type of innovation focuses on current
customers and their needs.
 Disruptive Innovations:
Disruptive stands for detachment and disruption and
describes innovations that shape a new market. Disruptive
innovations mostly originate in the low-end segment, in
less attractive segments. However, as the maturity of
technology and products increases, they are gradually
attacking the mass market and thus replacing existing
services. Prof(Dr) Raj Kumar Singh , Professor, HOD ,
Innovation Management
Innovation management is the systematic
promotion of innovations in organizations and
includes tasks of planning, organization,
management and control. Innovation management
involves the process of managing an organization's
innovation procedure, starting at the initial stage
of ideation, to its final stage of successful
implementation. It encompasses the decisions,
activities and practices of devising and implementing
an innovation strategy. Innovation Management aims
to drive a sustainable innovation process or culture
within an organization. Oftentimes, these innovation
management initiatives utilize a disruptive method of
change to transform business.
Innovative management deals with all
measures to promote innovation in organizations
and to generate benefits, for example:
 New products and services to conquer new
markets.
 Improved products and services to stand out from
the competition.
 Improve internal processes to strengthen the
company from the inside or to save costs.
 Development of new business models to use new
sources of income

Entrepreneurship / Startups Lab
Entrepreneurship Lab /Startups Lab promoted by
Industry or Educational Institutions brings
technology and knowledge based solutions to the
entrepreneurial community with a specific focus on
early stage companies. Entrepreneurship Lab
understand the challenges of launching a startup.
Entrepreneurship Lab realizes that every Startup at
the beginning stages is critical and Entrepreneurship
Lab know how to use limited resources most
effectively. Entrepreneurship Lab are committed to a
plan that can clearly articulate, support, and execute
on, given the right tools. Having a realistic and
passionate mindset about venture combined with
some level of expertise, helps Entrepreneurship Lab
fill in the gaps.
Process of Functioning of Entrepreneurship / Startups Lab

Startups Launching and Test Marketing

Start Market Research With Friends and Family
The vast majority of market research starts with
discussing the idea for your product or service with
the people in your life. This conversation can be done
informally, over a meal or in the car, or it could consist
of a more targeted brainstorming session, trying to
mine the best ideas to enhance your creation. In
general, you just want to get a feel for whether or not
your idea has legs. Do other people think that there is
a need for it? Would they spend money on it? Is the
product or service something you could deliver?
Theoretically, the people in your life are going to be
the most positive about your new endeavor, so if the
answers to these questions aren’t generally “yes,” then
you may haveProf(Dr)
a problem
Raj Kumar Singhright
, Professor,out
HOD , of the gate.
Start With Friends and Family
The vast majority of market research starts with
discussing the idea for your product or service with
the people in your life. This conversation can be done
informally, over a meal or in the car, or it could consist
of a more targeted brainstorming session, trying to
mine the best ideas to enhance your creation. In
general, you just want to get a feel for whether or not
your idea has legs. Do other people think that there is
a need for it? Would they spend money on it? Is the
product or service something you could deliver?
Theoretically, the people in your life are going to be
the most positive about your new endeavor, so if the
answers to these questions aren’t generally “yes,” then
you may have a problem right out of the gate.
Small Scale Testing
Once you decide you want to move forward with your idea,
you’ll want to start market testing on a small scale. If you’re
creating a physical product, have prototypes made so that people
can test it out and give you feedback on its design and
functionality. Alternatively, if you’re creating a service, online
business or mobile app, make a simple, streamlined version and
have people start doing beta testing, providing thoughts on the
interface, ease of use and overall satisfaction. Use all of this
feedback to your advantage. Don’t outright dismiss criticism
without considering it, and remember that if multiple testers
have the same compliant, it’s probably a problem worth solving.
At this stage, you’ll also want to move outside the sphere of your
friends and family. You want to start getting the opinions of
people with whom you don’t have a personal relationship. For
this stage, you can have the people in your life enlist their friends
and family to provide feedback, or you can use social media to
recruit a list of volunteers. Hopefully, by getting these
unvarnished opinions, you can start to refine your creation so
that it’s suitable to be unveiled to the public at large.
Testing the Market Online
 The Internet is a virtually limitless resource for testing the
viability of your idea, and this research can be done in a
number of different ways. One of the best places to start is
with online forums that deal with topics that are related to
your product or service. Check out the most popular
forums on the topic, paying close attention to the number
of members and the frequency of posts. These metrics will
tell you how active the forum is, which will give you some
idea of how much public interest there is in your product.
 Additionally, online tools such as Google Insights, Google
Trends and the Google Keyword Planner will show you how
often people are searching for specific terms, where those
customers are located and whether the topics are growing
in popularity. To be sure, the data provided by these tools
won’t perfectly predict the success of your product or
service, but it can be incredibly useful as you start to
strategize the Prof(Dr)
best Raj ways to brand and market your creation.
Kumar Singh , Professor, HOD ,
Don’t Fear Competition
 After you’ve come up with a brilliant idea for a new product, you
may be disheartened to learn that there are already similar
products on the market. Rest assured, you’re likely to encounter
competition in one form or another, and the overall consumer
marketplace is becoming increasingly crowded.
 Far from being discouraged, however, you should actually be
excited to discover that your creation has competition. The fact
that there are already versions of your idea on the market means
that there is a need and a desire for it among consumers.
Additionally, a crowded marketplace should push you to be more
creative and work harder on your own endeavor. In order to
succeed, you just need to differentiate your product or service by
branding it in a new and unique way, helping it to stand out from
the crowd.
 All of this market research may not sound particularly exciting,
especially compared to the exhilaration you feel when you think
about your new innovation. Remember, however, that testing the
market is a necessary and important step. By taking the time to
do your research and plan your launch accordingly, you can give
your endeavor the best chance to succeed
 Launching of Product /Services in Limited Area
and Feedback of Response
 Formulate Further Strategy


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Entrepreneurship Incubation Unit 1

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Presented By :

Dr. Raj Kumar Singh

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Risk Bearer Risk bearing activity

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Risk Taker Risk Taking

Status Owner of the Enterprise Employee of the Enterprise

Failure & Mistakes Treat as Learning Experience Try To Avoid Mistakes

Decision Free To Take Decision Depends On Owners

Who They Serves Self & Customers Others

Relations With Transaction & Deal Making Through Hierarchy

Attention On Technology & Market On Inside of The

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Prof(Dr) Raj Kumar Singh , Professor, HOD ,

 Unorganised Micro Entrepreneurship

Prof(Dr) Raj Kumar Singh , Professor, HOD ,

 If you work in the family business sector, chances

Prof(Dr) Raj Kumar Singh , Professor, HOD ,

 Step 1: Treat succession planning like it is urgent

Prof(Dr) Raj Kumar Singh , Professor, HOD ,

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Prof(Dr) Raj Kumar Singh , Professor, HOD ,

Incubators serve as a launching pad for young

Prof(Dr) Raj Kumar Singh , Professor, HOD ,

Prof(Dr) Raj Kumar Singh , Professor, HOD ,

Prof(Dr) Raj Kumar Singh , Professor, HOD ,

Prof(Dr) Raj Kumar Singh , Professor, HOD ,

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Prof(Dr) Raj Kumar Singh , Professor, HOD ,

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