eae E f eo Introduction Concept, meaning and definiti n of Entrepreneur and Entrepreneurship. Evolution of Entrepreneurship, Role of Entrepreneurship in economic Development; Managerial vs entrepreneurial approach; Classification and types of Entrepreneurs. Characteristics and qualities of successful Entrepreneurs; Women Entrepreneurs; Corporate & Social entrepreneurship. 1.1. Entrepreneur and Entrepreneurship 1.1.1 Entrepreneur Entrepreneur is derived from the French word entreprendre, meaning “to undertake”. ‘An entrepreneur is basically an innovator who tries to develop new technology, products, markets etc. Jean-Baptist Say, Says that: Definition of Entrepreneur: “Entrepreneur is someone who takes resources from a lower level of productivity and raises them to a higher level.” An entrepreneur performs following functions: © Generation of business idea ‘© Converting idea into reality © Establishment of enterprise © Organization and Management of the productive enterprise ©. Risk taking © Supply of capital Scanned with CamScanner¥¥ _Entrepreneurship and £-Du> o _ Decision making Arranging resources © Maintaining good relations with the existing a! © Securing adequate financial resources © Development of narket for the prodiicts. © Dealing with competition © Management of customers and suppliers relation We can classify the function of an entrepre: 1. Entrepreneurial Function 2. Primary Function 3. Other Functions 3. Entrepreneurial Function Determination of objectives Idea generation Implementation of project Market research Recruitment of manpower Procurement of machinery Procurement of raw material Raising of funds Primary Functions @ Planning (©) Organizations of land, labor and capital (© Decision Making (@)_ Management Other Functions (a) | Risk taking (2) Develop venture (©) Decide strategies to start venture ind potential investors, neur under the following heads ; Scanned with CamScanner wit LadEntrepreneurship and E-Business (MU) Superviso and control Analyze opportunity Functions of ‘entrepreneur, Stratogios 0 start venture Develop venture business plan’ Acquire resources: Fig. 1.1.1 : Functions of Entrepreneur 1.1.2. Entrepreneurship * Definition of Entrepreneurship: Entrepreneurship is the process of creating a new enterprise with an aim of making profit. + Entrepreneurship refers to a process of actions an entrepreneur undertakes to establish his business. + _ Benjamin Higgins has defined entrepreneurship as “the function of foreseeing investment and production opportunity, organizing an enterprise to undertake a new production process, raising capital, hiring labour, arranging for the supply of raw materials, and selection to managers for the day-to- day operation of the enterprise”. * Prof. Roa and Mehta defined Entrepreneurship as “Entrepreneurship can be described as creative and innovative response to the environment.” 1.2 Evolution of Entrepreneurship * First stage of entrepreneurship is Ancient Period: Entrepreneurship is the process of creating a new enterprise with an aim of making profit. * Entrepreneurship refers to a process of actions an entrepreneur undertakes to establish his business. Marco Polo has signed an agreement with the capitalists to sell their products. ¥ Scanned with CamScanner14 Introduction Entrepreneurship and E-Bus iness (MU) Iii the contract merchant adventurer took a loan at 22.5% rate including insurance. Capitalist was the passive risk bearer and merchant adventurer took the active role in trading, bearing all physical and emotional risks. turer successfully sold the goods and completed the trip, the When the merchant advent list taking most of them up to 75%, while the merchant | profits were divided with the capital adventurer settled for the remaining 25%. the evolution of entrepreneurship can be related with the relationship © In 17%century, preneurs. Entrepreneur is the person who signed the contract between risk and entre| agreement with the government to provide a service or supply products that have been determined. ‘The contract price is fixed. Then, the entrepreneurs are fully responsible for the gains and losses of the business. John law, a Frenchman was one of the entrepreneurs in that period, ‘The founder of the royal bank of France and the Mississippi Company, which had an exclusive franchise to trade between France and the new world. Monopoly on French trade eventually led to collapse of the company. Richard Cantillion, an economist defines entrepreneurs earlier. In his view, the entrepreneur is risk insurers. Merchants, farmers, craftsmen, and so is an entrepreneurs. They buy things at a certain price and sell it ata price that is uncertain, with the risks In the 18th century, the person with capital was differentiated from the one who needed capital. The entrepreneur was distinguished from the capital provider. One reason for this differentiation was the industrialization occurring throughout the world. Eli Whitney was an American inventor best known for inventing the cotton gin. This was one of the key inventions of the industrial Revolution. Thomas Edison, the inventor of many inventions. He was developing new technologies and was unable to finance his inventions himself. Edison was a capital user or an entrepreneur, not a provider or a venture capitalist. In 19%and 20% century, entrepreneurs were not distinguishing from mangers and were viewed mostly from managers and from economic perspective. According to Merriam- Webster's online dictionary, an entrepreneur is one who organizes, manages, and assumes the risk ofa business or an enterprise. ij | | Scanned with CamScannerEntrepreneurship and E-Business (MU) Introduction + The eritrepreneur organizes and manages an enterprise for personal gain. The materials consumed in the business, for the use of the land, for the services he employs, and for the capital he requires, + Andrew Carnegie Is one of the best examples of this definition. Carnegie, who descended from a. poor Scottish family, made the American Steel Industry one of the wonders of the industrial world. + In the middle of the 20% Century, the function of the entrepreneurs is to recreate or revolutionize the pattern of production by introducing an invention. Innovation, the act of introducing some new ideas, is one of the most difficult tasks for the entrepreneur. For example, Edward Harriman, who reorganized the railroad in the United States and John Morgan, who developed his large banking house by reorganizing and financing the nation’s industries. Besides, the Egyptian who designed and built great pyramids out of stone blocks weighing many tons each, to laser beams, supersonic planes and space stations. + In 21* century, Entrepreneurs are known as a hero for Free Enterprise market. Entrepreneur of the century created many products and services and is willing to face a lot of risks in the business, According to Kuratko & Hodgetts, most people say entrepreneurs are pioneers in creating new businesses. In the year 2005 Hisrich, Peter and Shepherd regarded entrepreneur as an organizer who controls, systematize, purchases raw materials, arranges infrastructure, throw in his own inventiveness, expertise, plans and administers the venture. * The Future of entrepreneurship will be growth with development of technologies. The modern technologies and internet have improved the ways of conduct business. Entrepreneurs now have the luxury of putting their business idea into action through the click of button. 1.3 Role of Entrepreneurship in Economic Development * Economic development Is often defined as a process in which the real per-capita income of a nation increases over a period of time but then the question arises that what causes this development? There are innumerable factors that cause the economy of a country to develop and entrepreneurship is one among them. Scanned with CamScanner. and E-Business (MU) L ntrepreneurship for economic Entrepreneurship. eto that of other factors widely | We will try to find out what ig the significance of ¢1 development? Does it add an importan levelopment? nomist assigned no significance to entrepreneurial 01 independent influenc agreed to promote economic d the foremost classical ect in his monumental work, in determinant of economic development and ‘Adam Smith, role in economic development i According to him capital formation was the mal this largely depended on the ability of the people to save more and invest more in a country is so it was notat all entrepreneurs who held in economic development rather it was the ability to save and invest or what we call capital formation wh zed the entrepreneurs as the key figure in economic development. _ ich led to economic development. Schumpeter visuali Schumpeter economic development consists of employing resources in a different way in doing new combination of means of production. Hence it is the entrepreneur who locates ideas and puts them into effect in the process of economic development. Hence the entrepreneur becomes the agent of change in society. It has been realized that for achieving the goal of economic development it is necessary to increase entrepreneurship in the country. Itis the entrepreneurs of a country who explore the potential of the countries available resources and what are those resources, land, labor, technology and capital, The entrepreneur searches for ch: lange, ii rind Change, sees need and then brings together the manpower, a - terial equired to respond the Opportunity what he sees, ese entrepreneurs use the resour rces and i Produce goods and services out of them, Optimum use of resources : It is the res) urces, Ponsibility of "eSources atthe fullest extent, 'y of the entrepreneur to make use of iene Scanned with CamScannerEntrepreneurship and E-Business (MU) 7 Introduction + Improvement in per capita Income : Entrepreneurs locate and exploit opportunities. It converts idle resources like road, labor and capital into national income and wealth in the form of goods and services. + Employment Generation : Entrepreneurs generate employment both directly and indirectly. Entrepreneurship helps to reduce the unemployment problem in the country. Entrepreneurship is the source of livelihood to those who do not neither have capital to earn interest on nor have the land to earn rent, + Improvements in living standards : Entrepreneurs set up industries which remove scarcity of essential commodities and introduce new products. Production of goods on mass scale helps to improve the standard of living of a common man. * Economic independence : Entrepreneurship is essential for national self-reliance. Businessman exports goods and services on a large scale and earns foreign exchange for the country. Import substitution and export promotion help to ensure the economic independence of the country. * Increases productivity : the entrepreneur through massive small scale and large scale industries, it helps in growing productivity in the enterprise. The entrepreneur plays a vital role through good relation. * Contribution to GDP : Increase in the Gross Domestic Product or GDP is the most common definition of economic development. The income is generated in the process of production. So, entrepreneurs generate income via organization of production be it agriculture, manufacturing or services. Income generated is distributed among the factors of production where land gets rent, labour gets wages and salaries, capital gets interest and the profit to the entrepreneur, * Reduces unrest and tension : An entrepreneur plays a crucial role in solving tensions and problems and tries to minimize it. Tents. aan Scanned with CamScanneresmunes ip. ui Introd W entrepreneuiship and E-Business (MU) 1 luctio 1.4 Managerial Vs Entrepreneurial Approach and responds to it by starting an enterprise, An Entrepreneur introduces new Ideas, carries | ‘on new activities, coordinates the factors of production and describes how the business Entrepreneur : We have discussed that an entrepreneur Is a person who searches for change should run, © Manager : A manager is one who deals with day-to-day affairs of a going concern and operates in an existing enterprise. Managers use entrepreneurial skills in order to mange change and innovation to effectively deal with uncertain external environment of business. Table 1.4.1 Entrepreneur Manager Innovation | Entrepreneurship is another name of | A manager is an employee of the innovation, Entrepreneur works to find | business organization. He cannot new methods, products. etc. operate independently. ' | Venture | An entrepreneur sets up a new venture | A manager only runs existing units. Creation | and runs it. Status | An entrepreneur starts and runs his| A manager needs not to be an venture independently; He is self: | innovator. He deals with the day-to- employed and is his own boss. day affairs of a going concern. Risk An entrepreneur takes calculated risks. He | A manager takes less risk as compare taking _| is responsible for failure and financial loss. | to an entrepreneur. He is less tolerant touncertainty. Reward | An entrepreneur is motivated by profits. | A manager is motivated by rewards He may even suffer a loss, or incentives. His salary cannot be negative. Change | An entrepreneur is responsible to external | A manager may not very receptive to environments and Is always prepared to | change, unless he is enterprising, change. fechinoateeg Scanned with CamScannerW entrepreneurship and E-Business (MU) 1. 1.5 Clas: Introduction ication and Types of Entrepreneurs Notall entrepreneurs are alike this was observed by Clarence H., then based on the basis of a study of American agriculture, classified entrepreneurs Into four types. Types of Entrepreneurs 1. Innovative Entrepreneurs These were entrepreneurs who work to break the status quo and constantly engage themselves in doing things differently and are called innovators. They innovate by introducing new goods, finding new methods of production, discovering new markets or reorganizing the enterprise. ‘These entrepreneurs work only when a certain level of development has already been achieved and hence people look for change and improvement in their existing goods and services. So such entrepreneurs are mostly found in developed countries. | 2. Imitative Entrepreneur ‘These entrepreneurs adopt successful innovations introduced by innovating entrepreneurs elsewhere and are flexible to adopt their ideas. They do not innovate but only imitate techniques and technology innovated by others. Such entrepreneurs are generally found in underdeveloped countries where they imitate new combinations of factors of production already prevalent in developed countries. 3. Fabian Entrepreneurs j ‘These are entrepreneurs who bring any kind of change in their enterprise with great caution. | These people are lazy, shy and lack the will to adopt new methods of production. They i imitate only when they are confident that failure to imitate the change will result in loss in business. These entrepreneurs are with the following features. (a) Adopt and follow conventional approaches (© Cautious | (b) Belong to family business q (4) Exhibit resistance to risk (e)_ Firm, rigid and fundamental approach Scanned with CamScannerIntroduction F_enerepreneurst 4, Drone Entrepreneurs «These entrepreneurs are ones who refuse to make any change in thelr business oe if tt rieans lost to business. So these people just do not change no matter what. They are ready to suffer losses but are not ready to make changes in their existing production methods, se of positive of funds, lack of skilled labor, lack of proper infrastructures the » Becaus ‘ons in underdeveloped economies are less conducive to the emergence of con entrepreneurs especially the innovative entrepreneurs. In developing and underdeveloped economies non innovative entrepreneurs like the imitative, Fabians and drones are generally noticed. Entrepreneurs in such regions are not innovators but are imitators who copy the innovations made by the innovative entrepreneurs of the developed countries. {As imitation requires lesser funds than innovation therefore it is considered that developing countries have more of imitative entrepreneurs. ies of Successful Entrepreneurs 1.6 Characteristics and Quali Personality of the entrepreneurship plays a very important role in success of his business. Following are some of the qualities required to be a good entrepreneur. 1. Future Vision The entrepreneur should have a good foresight about future market situation. The entrepreneur also has knowledge about external business environment. Without a vision for the future of his venture, entrepreneur would just be working aimlessly without reaching any point of success. 2. Innovation Innovation refers to generating a new idea with which we can start a business and earn Profit. In today's highly competitive business environment, it is only the innovators who survive and success, Continuous innovation isthe only road to success in the global economy. nnovation can be in the form of a product or itcan be also in the form of process. 3. Communication Skills An entrepreneur needs to communicate with different people like customers, suppliers, creditors, employees etc,, he must be able to express his ideas and strategies effectively. It is very important that the sender and receiver of the message are being understood perfectly. — Scanned with CamScannerEntrepreneurship and E-Business (MU) : 4, Technical Knowledge An entrepreneur should have sufficient technical knowledge about the products and his plan to produce. An entrepreneur should be updated with the latest technology to be in pace with the market. 5. Hard Work An entrepreneur should be ready to work hard. It is more necessary when a new venture is started. An entrepreneur has to work for long hours. Many a times he has to handle the main areas of business independently. Ability to take risk s This is the first and foremost trait of entrepreneurship. The entrepreneur is true risk bearer of any business. Starting any business involves a considerable amount of risk of failure. Therefore, the courage and capacity to take the said risk are essential for an entrepreneur. 7. Highly Optimistic An entrepreneur should always think positively. He/she should always be hopeful and confident about the market situations even in failure times. This positive attitude helps him to run his/her business successfully. 8, Planner Planning is also one of the important functions of an entrepreneur. A company without a plan out proper planning. is alike a ship without a direction. Big businesses cannot operate wil 9. Self Confidence An entrepreneur should have self-confidence. He/she should have positive desires to achieve his/her goals. Such self confidence keeps him strong and motivated to face various obstacles. 10. Leadership Asingle person cannot perform all the tasks and therefore it is important to bring some more people to do it This makes leadership very important as a leader provides a required direction to the efforts of the employees. Without proper leadership, everyone would be working independently without achieving the desired results, 11, Quick Decision Maker The entrepreneur also should be quick decision maker. Taking too much time in decision making can lead to loss of good business opportunities which would be costly in today's highly competitive business environment. Tech inoatedge Scanned with CamScannerYW entrepreneurship and E-Business (mu) Introducti 1.7. Women Entrepreneurs ‘Women have been regarded as the nuclel of a nation and the builder of its destiny. ‘The emergence of women entrepreneur In the economy is an indicator of women’s economic independence. Women entrepreneurship is the process in which women initiate a business, gather aij resources, undertake risks, face challenges, provides employment to others and manages the business independently. Approximately 1/3 rd of the entrepreneurs in the world are women entrepreneurs. ‘Women entrepreneurship refers to business or organization started by a woman or group of women. } * Women entrepreneur: Women, who initiate, organize and run a business. 1 * According to Schumpter, Women who innovate, imitate or adopt a business activity are a women entrepreneur, | * According to the Government of India, an enterprise owned and controlled by'a wonian having a minimum financial interest of 51% of the capital and giving at least 51% of the employment generated in the enterprise to women. : ; * Qualities of Women Entrepreneurs : 0° Ambitious 0 Hard work 0 Accept challenges © Foresighted © Motivator © Optimistic © Intelligent © Conscious © Patience wit Scanned with CamScannerIntroduction Entrepreneurship and tusiness (MU) Developing Equal Statue In Society Be Independent ‘Nood ot ‘Women Enveprena- urship ‘ncroaso Confidence ‘and Positivity Increasing isk Taking ‘Abily Better Eaucation and Anaronees, Croato Employment (Cpportunitis) Fig. 1.7.1: Need of Women Entrepreneurship 1.7.1. Functions of Women Entrepreneurs 1. Coordination, administration and control Idea generation Supervision and leadership Completion of promotional formalities Raising funds 1.7.2. Types of Women Entrepreneurs 1, Affluent Entrepreneur They have wives and daughters of wealthy businessmen. They have sufficient financial aid. 2, Pull factor Entrepreneur ‘They are educated and living in urban areas. With or without experience they take the risk of anew enterprise. Their name is to become financially independent. We Hettoowtetet Pa atta ae RRS Scanned with CamScannerPush factor Entrepreneur They take up business to overcome financial difficulties. Widows or single women berg, entrepreneurs because of some certain scenarios but not by their willingness, 4 Rural Entrepreneur They belong to rural areas. They. choose a business with their resource and knowledge, 5. Self Employed Entrepreneur They are uneducated. They lie below poverty line. They choose small enterprise which | convenient to manage their family. Fig. 1.7.2 : Types of Women Entrepreneurs 1 1.7.3 Problems to Women Entrepreneurs in Society * Mobility problems * Lack of support from family members ‘* Male dominant society * Family responsibilities © Indian values and Ethics * Face technological obsolescence due to lack of support. ¢ They have to be dependent on men for doing work which requires muscularstrength. © Financial problems Scanned with CamScannerIntroduction ¥ Entrepreneurship and E-Business (MU) 1:15 —————— 1.8 Corporate and Social Entrepreneurship Corporate Entrepreneurship ‘* Corporate Entrepreneurship refers to entrepreneurial activities that occur within an existing organization, © It refers not only to the creation of new business ventures, but also to other innovative activities and orientations such as: © Development of new products © Development of new administrative techniques © Development of new strategies and competitive postures. © Development of new services, technologies ‘* Corporate Entrepreneurship: the pursuit of opportunity, within an established organization, without depending on the resources we currently control. 1.8.1(A) Types of Corporate Entrepreneurship * Entrepreneurship manifests in companies in two ways : 1. Corporate Venturing : creation, addition or investment into new businesses by an existing corporation. 2, Strategic Entrepreneurship : Strategic entrepreneurship is the use of entrepreneurial activities to achieve organization goals and objectives. Highly consequential innovations that are adopted in the firm's pursuit of competitive advantage. Corporate Entrepreneurship Corporate Venturing Internal Corporate Strategic Entrepreneurship © Strategic Renewal Venturing cd Regeneration ® Cooperative Corporate Redefinition Venturing * Organizational # External Corporate Rejuvenenation * Business Model Reconstruction Venturing Fig. 1.8.1 : Modes of Corporate Venturing Scanned with CamScannerIntroduction, Entrepreneurship and E-Business (MU) 6 ion, 1. Corporate Venturing a ‘* Internal Corporate venturing - new businesses created and owned by the corporation. * _ Cooperative corporate venturing - new businesses are created and owned by the corporation together with one or more external development partner, External corporate venturing - new businesses are created by parties outside the corporation and subsequently invested in through equity positions or acquired by the corporation. 2. Modes of strategic Entrepreneurship . * Strategic Renewal: Adoption of a new strategy or developing strategies to counters organization weakness that is leading to performance decline. * Sustained Regeneration: Regular and continuous introduction of new products or services into pre existing markets and entering new markets. Learning businesses that embrace change and willingly challenge competitors in battles for market share, Example banking sector. * Organizational Rejuvenation: A firm alters its internal processes, structures and or capabilities to sustain or improve its competitive standing. * Domain Redefinition: Business proactively creates a new product-market arena where it can enter as a pioneer that others have not recognized or actively sought to exploit. Example, Banks Facebook 1.8.2 Social Entrepreneurship * Teis an approach by individuals, groups, startup companies or entrepreneur in which they develop, fund and implement solutions to the social, cultural or environmental issues. * Social entrepreneurship is doing business for a soci selfless entrepreneurship. cause. It might also be referred to as * Social Entrepreneurship is a new area of entrepreneurship that involves nonprofit organizations, governments, and business that focuses on innovation, risk taking, and with Particular emphasis on bringing Positive transformation to the social problems that ultimately leads to social change, People. They don't measure thelr success in terms of profit alone. Success’ to social entrepreneurship means that they have improved the world, - Scanned with CamScanner¥ Entrepreneurship and E-Business (MU) 7 Introduction, 3. According to Greg Dees, co founder of the Center for the Advancement of Social Entrepreneurship at Duke University, “Social entrepreneurs are individuals with innovative solutions to society's most pressing social problems. They are persistent and ambitious, tackle major social issues and offer new Ideas for a wide-scale change.” Social entrepreneurs work as agents of change for the society. They look for opportunities, that include improving the systems, inventing new approaches, and also to create solutions that can change society for the better. A social entrepreneur can come up with new solutions to the problems of society, implement them on a large scale, and change the face of society. »2(A) Characteristics of Social Entrepreneur Creative : They think creatively and develop new solution that breaks the existing one. They find all the time new ways of approaching the problem. Social vision : Social entrepreneurs have far sighted vision for changing the society and add values to the society. Direct Action takes : Social entrepreneurs take the direct action when they are convinced with the idea or opportunity. Innovator : They are innovator of the system, process, design and methods for better results and simplification. 1.8.2(B) The importance of Social Entrepreneurship 1 2 Social Capital : the most important values created by social entrepreneurship is social capital i.e. the networks of relationships among people who live and work in a particular society, enabling that society to function effectively, Employment Development: the major economic value that social entrepreneurship creates is the job and employment creation. On an average one to seven percent of people employed in the social entrepreneurship sector. Equity Promotion : Social entrepreneurship fosters a more equitable society by addressing social issues and trying to achieve ongoing sustainable impact through their social mission rather than purely profit-maximization. Innovation ; Social enterprises develop and apply innovation important to social and economic development and develop new goods and services. Issues addressed include some of the biggest societal problems such as mental ill-health, crime and drug, HIV, abuse is confronted in innovative ways. ¥ Scanned with CamScanneros Introduction Entrepreneurship and E-Business (MU) ~~ 1,9 Factors Impacting Emergence of Entrepreneursh ors Impacting 9! et iP re ‘There are cet nsoabenk trepreneurship, one veopee nations. Several inimical factors are affecting the growth of entrep: p. he prospe . stain major factors that affect the growth of entrepreneurship. In many of the | | ‘ost of their inventions elther Iles in idle conditions or flow out to m They can be studied under the following heads shown In Fig. 1.9. 1.9.1 Economic Factor 4 Economic Factor Capital | Labour | Raw Material | Market | Infrastructure Fig. 1.9.1: Economic factor Capital Capital Is one of the most important prerequisite to establish an enterprise. Availability of Capital facilities for the entrepreneur to bring together the land of one, machine of another and raw material of yet another to combine them to produce goods. Capital is therefore, Tegarded as lubricant to the process of production, Labour entrepreneurship is encouraged Potential advantages of low-cost immobility, if there is a mobile and flexible labour force, And, the labour are regulated by the deleterious effects of labour Raw Material Entrepreneurship is encouraged only if there is an adequate supply of materi: how. Quality of product depends on the quali , material attracts more individual equires technical know_how for jn Market lals and know: availability of '™M enterprise 'Y of raw materials used, Easy IS towards entrepreneurs movation, hip. To a mode: The fact remains that the Probable rewards from entr Potential of the Market ‘Tmi | constitut ee es the major determinant of g Scanned with CamScanner‘ | | { ¥ Entrepreneurship and E-Business (MU) 19 Introduction The size and composition of market both influence entrepreneurship in their own ways: Practically, monopoly in a particular product in a market becomes more influential for entrepreneurship than a competitive market. Infrastructure Entrepreneurship development requires certain basic infrastructure like power, transportation, communication and technical information, Land and factory sheds at affordable rate, adequate supply of power, water, coal, and other sources of energy, transport facilities, and other facilities should be provided. 1.9.2. Socio-Economic Factors 1 3. Socio-Economic Factors Caste and religion factor | Attitude of society | Family background Fig, 1.9.2 : Socio-economic factors Caste and religion factor There are certain cultural practices and values in every society which influence the actions of individuals. These practices and value have evolved over hundreds of years. Religion and cast play a vital role in entrepreneurial development. Certain cast system encourages the entrepreneurship. Religious communities like Parsees, Marwari , Sindhees seem to have an affinity for entrepreneurial activity. Attitude of society A related aspect to these is the attitude of the society towards entrepreneurship. Certain societies encourage innovations and novelties, and thus approve entrepreneur's actions and rewards like profits. Certain others do not tolerate changes and in such circumstances, entrepreneurship cannot take root and grow. Similarly, some societies have an inherent dislike for any money-making activity. Family background This factor includes size of family, type of family and economic status of family, Background ofa family in business provides a source of industrial entrepreneurship. Occupational and social status of the family influenced mobility. Families with properties like land and house and having sound financial resources may support entrepreneurship among familly members. Wied Scanned with CamScannerIntrod Entrepreneurship and E-Business (MU) 1.20 Introduction 1.9.3 Psychological Factors ae See Inspiration for achievement prepares an entrepreneur to set higher goals and achieve them, ‘The important psychological factors influencing entrepreneurial growth may be outlined ag below. (a) Need for achievement is the desire to obtain excellent results by setting high standards i and striving to accomplish them. It is a consistent concern with doing things better. If the average level of need achievement in a society is relatively high, one would expect a relatively high amount of entrepreneurship development in that society. Achievement motivation training programmes organized by the small Industries Extension training Institute (SIET), McClelland argues that the need achievement can be developed through the intensive training programmes: (©) Withdrawal of Status Respect : When members ofa given social group perceive that they are not respected by the dominant groups in society, this triggers a personality change | that encourages entrepreneurial behaviors. (c) Willingness to take risks : Researchers have come to the conclusion that entrepreneurship who takes moderate risks earns higher returns on their assets than those who take no risks, (@) Motives: Other psychological theories of entrepreneurship stress the motives or goals of the entrepreneur, security and service to waa Non-monetary aspects such as independence, Person's self esteem, Besides wealth, entrepreneurs seek power, Prestige, power etc, als? triggers entrepreneursh: ip, Scanned with CamScannerWF Entrepreneurship and E-Business (MU) 1.9.4 Government Actions 1-21 «The government by its actions does influence the entrepreneurship development. Introduction + Any interested Government tn economic development promotes entreprenedrship by enacting some policies and strategies. + — By creating basic facilities, utilities and services, the Government can create a facilitative set up to establish enterprise. * Development of industrial estates, export promotion zones, special economic zones etc. aims + at promotion of entrepreneurial activities, * Government actions : 1 2. 3. 4, 5. Promotional schemes Government incentives, subsidies and grants Concession on Excise Duty Credit facility to MSME Micro Small and Medium Enterprises Development Act, 2006 Barriers to entrepreneurship Unfavorable family background Inadequate infrastructure facilities L Lack of education Lack of seed capital Lack of technical know how Legal constraints and regulations Unavailability of raw material, Absence of regular supply of power. Lack of attitude and tralning Monopoly Influence of gender , cast, custom ea Scanned with CamScanneraz as ag jusiness (MU) Entrepreneurs Review Questions ms Define Entrepreneurship and Entrepreneur, (Refer Section 1.1) Explain the role of Entrepreneurship in Economic development (Refer Section 1.3) Differentiate following two approaches. 1. Managerial and 2. Entrepreneurial (Refer Section 1.4) Explain different types of Entrepreneurs. (Refer Section 1.5) ‘What are the qualities of successful Entrepreneurs. (Refer Section 1.6) Write @ short note on women entrepreneur. (Refer Section 17) Explain comorate entrepreneurship. (Refer Section 1.8.1) Explain social entrepreneurship, (Refer Section 1.8.2) plain the different factors affecting the growth of entrepreneurship. (Refer Section 1.9) Scanned with CamScannerEntrepreneurship and E-Business (MU) 2-40 Entrepreneurship Development & Leadership, sr. Enterpreneur Manager Entrepreneurial Leader No. 6 Leads and inspires others Supervises and monitors others Develops and guides entrepreneurial individual ; bridges between individuals and groups with diverse expertise and orientation Orchestrates change in the competitive environment Maintains consistency and predictability Orchestrates change in both the organizational and competitive environment 2.4 Components of Entrepreneurial Leadership } Karcioglu and Yucel have conducted a study in order to identify personality characteristics of dimensions are as follows: Being a team player Vision Innovation Problem solving Being persistent Taking risks Adapting to changes Knowing the consumer needs Decisiveness entrepreneurial leaders and suggested that there are nine dimensions of entrepreneurial leadership. Entrepreneurial leadership must have qualities or characteristic features. These 2.5 Factors Influencing Entrepreneurial Development and technological development and education. Motivation Entrepreneurship is influenced by four distinct factors: economic development, culture, expect to see strong and consistent entrepreneurial growth, 'm areas where these factors are present, you can — Scanned with CamScanner