Entrepreneurship Development and Leadership Entrepreneurial Motivation : motivating factors, Types of startups; Characteristics of entrepreneurial leadership, Components of Entrepreneurial Leadership; Factors influencing entrepreneurial development and. motivation, Entrepreneurial Opportunities and challenges, Entrepreneurship process. Types of Enterprises and Ownership Structure: small scale, medium scale and large-scale enterprises: Meaning and definition (evolution), role of small enterprises in economic development; proprietorship, Policies governing SMEs, partnership, Ltd. companies and co-operatives: their formation, capital structure and source of finance. 2.1 Entrepreneurial Motivation : Motivating Factors 2.1.1 Meaning - Motivation The term motivation has been derived from the word ‘motive’. Motivation is the process that activates or directs our behavior towards achieving our goals. Motives are expressions of a person's goals or needs. Motive is always internal to us and is externalized via behaviour. 2.1.2 Definition : Motivation ‘According to Bernard and Steener, Motivation Is regarded as “An inner state that energizes activities ‘and directs or channels behavior towards the goal". Motivation is the process that arouses action, sustains the activity in progress and that regulates the pattern of activity: Scanned with CamScannerEntrepreneurship Development & Leadersh Entrepreneurship and E-Business (MU) ivation 2.1.3. Definition : Entrepreneurial Motiva rocess that activates and motivates be defined as the p! The entrepreneurial motivation may hievement oF hs | the entrepreneur to exert higher level of efforts for the acl his hee | entrepreneurial goals, In other words, the entrepreneurial motivation refers to the forces or drive within ay entrepreneur that affect the direction, intensity, and persistence of his / her voluntary behavior as entrepreneur. So to say, a motivational entrepreneur will be willing to exert a Particular level of effort (Intensity), for a certain period of time (persistence) toward a | particular goal (direction). Entrepreneurial motivations are necessary steps of getting individuals to become entrepreneurs, 2.1.4 Motivational Theories Masiow’s Need Hierarchy Theory actualization clad needs Scanned with CamScannerEntrepreneurship and E-Business (MU) 2:3__ Entrepreneurship Development & Leader: (a) Basic Physiological Needs ; The physiological needs relate to the survival and maintenance of human life, These needs include such things as food, clothing, air, water and other necessaries of life which are biological in nature. These are the primary needs. (b) Safety and Security Needs : After satisfying the ‘physiological needs, people want the assurance of maintaining a given, economic level. They want job security, personal bodily security, security of source of income, provision for old age, insurance - against risks, etc. (©) Social Needs : Man is a social being. He is, therefore, interested in conversation, sociability, exchange of feelings and grievances; companionship, recognition, belongingness, etc. (qd) Esteem and Status Needs : These needs embrace such things as self- confidence, independence, achievement, competence, knowledge and success. These needs boost the ego of individual. They are also known as egoistic needs. They are concerned with prestige and status of the individual. (e) Self-Fulfillment Needs : The final step under the need priority model is the need for self-fulfillment or the need to fulfill what a person considers to be his mission in life. It involves realizing one's potentialities for continued self-development and for being creative in the broadest sense of the word. After his other needs are fulfilled, a man has the desire for personal achievement. 2. McClelland’s Three Need Model According to David MCClelland, as a result of a person's cognitive pattern and environment, a person experiences three types of needs. He gave a three needs model of motivation. These three types of needs are: achievement, power and affiliation. They are as follows : (2) Need for achievement : This refers to ones desire to excel, advance and grow in life, (b)_ Need for power: This refers to ones desire to Influence or dominate others and situations; (0) Need for affiliation : It refers to establishing a friendly, healthy and close interpersonal relationships. Scanned with CamScanner| Bntreprenurshp Development Leadon, Entrepreneurship and 6-Business (MU) Mecletiand's theory of needs Noed for Neod for Neod for achievement power affliation Drive to excel} To control others |}: Friendship Achieve in relation|] To get desire |]. Good relationship toa things done set of standards strive to succeed Fig, 2.1.2 : McClelland’s Three Needs Motivational Theory McClelland also suggests that these three needs may simultaneously be acting on an individual. But, in case of an entrepreneur, the high need for achievement is found dominating one. mis view, the people with high need for achievement are characterised by the following: (@)_ They set moderate, realistic and attainable goals for them. (b) Prefer to situations in which they can find solutions for solving personal responsibility, ()_ They need concrete feedback on how well they are doing. (4) They have need for achievement for attaining personal accomplishment. (e) They look for challenging tasks. Entrepreneurial motivation may be defined as a set of motives such as high need to achieve, moderate need for power and low affiliation motive which induce people to set up and run their own’ enterprises. Apart from these, entrepreneurs have other behavioural dimensions such as, tolerance for ambiguity, problem solving, creativity, etc 2.1.5 Entrepreneurial Motivation Factors * Several research studies have been conducted to identify the factors that inspire entreprenuers. * — The motivating factors can be classified into two categories 1. Internal factors 2. External Factors Kael Scanned with CamScanner=a Entrepreneurship and E-Business (MU) Entrepreneurship Development & Leadersh internal Factors ‘These include Desire to do something new Become independent Achieve what one wants to have ina life Poe pie Be recognized for one's contribution One's educational background 6. One's occupational background and experience in the relevant field. External Factors These include 1. Assistance from Government 2. Financial assistance from institutions 3. Availability of technology and/or raw materials 4. Encouragement from big business units 5. Heavy demand for product 2.2 Types of Start-ups * A term startup is used for a young company founded by one or more entrepreneurs to develop a unique product or service and bring it to market. Nowadays, more and more individuals are interested in becoming entrepreneurs and therefore open their own business. * Astartup is a company working to solve a problem where the solution is not obvious and success is not guaranteed, 1. Lifestyle start-up : Work to live your passion. It is founded by entrepreneurs. They live their preferred life and work for themselves, Examples of these are freelancers or web designers who have passion for their work. 7 2. Small business start-up : Work to feed the family ‘These are the Small businesses. Their main objective is to provide only a comfortable life for their family. ¥ vn Scanned with CamScannerentrepreneurship and F-Pusino (muy 3. 2.3 Characte 6 trepreneurship Development & Leaders, The owner follows less ambitious goals and does these types of start-ups are hairdressing salons, grocery stores, bakeries, among others, think of scaling the business. Examples Buyable start-up : Acquisition target The main goal of such business: Positive results that catch thelr attention. This type of startup is very common in wey solutions development companies and mobile. An example of this was the purcha Instagram by Facebook. is tos IL the business to large companies ater achieving Se of Social start-up: Driven to make a difference The main goal of social entrepreneurs is to make a difference in society and make a better world. Thus, the main objective is not to gain profit, but rather to contribute positively to the community. One example is the charity or charitable institutions. Scalable startup - Born to be big These entrepreneurs are very ambitious and believe from the beginning that they can change the world with their business idea. They try to find a” model scalable and repeatable business" in order to draw the attention of investors. Google, Uber and Facebook are some of the eexamples of these type of startups. ig business start-up - Innovate or evaporate The large companies have finite life duration. They have the main objective of innovation. A business that falls into this category develop products or services that are quickly recognized by the market and becomes revolutionary. Due to the market changes, the user preferences, Competitive pressures, these businesses tend to create new innovative products for new users of different markets. To ensure their survival and growth, corporations need to keep inventing new business models. This challenge requires entirely new organizational structures and skills, tics of Entrepreneurial Leadership Today, having just leadership or entrepreneurship qualities by business managers is not enough for success of enterprises, Managers need to have both leadership and entrepreneurship qualities in order to be successful. At this point, the concept of entrepreneurial leadership emerges. Entrepreneurial leadership Is a new and modern type of leadership that is a combination of leadership qualities and spirit of entrepreneurship. Scanned with CamScanneree WF _sntrepreneurship and E-Business (MU) 7 Entropreneurship Development & Leadership pefinition : Entrepreneurial Leadership ‘According to Alvarez. and Barney, “entrepreneurial leadership 1s a type of leadership that consists of actions towards establishment of a business at the individual Tevel, actions towards following the innovations at the organizational level and actions towards benefiting from the opportunities that are distinguished at the market level.” appeared by blending the leadership potential with ip model. In entrepreneurial leadership, the leader ¢ Entrepreneurial leadership is a concept entrepreneurial spirit. It is a new leaders! also has the entrepreneurial qualities. Entrepreneurship Pro-activeness Innovativoness Risk-taking Enrepenevalcesostp | —af Peformance 1 Leadership Technical Psycho-emotive Ethical Fig. 2.3.1: Entrepreneurial leadership Model + Entrepreneurial leadership refers to the entrepreneur status of a leader. In other words, entrepreneurial leadership can be used for a leader who has the characteristics such as taking risks, evaluating the opportunities, being innovative, productive, interchanging and strategic. In short, entrepreneurial leadership, it is a combination of leadership and entrepreneurship. Entrepreneurial Leadership = f (Entrepreneurship + Leadership) Some of the common entrepreneurial leadership characteristics are as follows : 1. Confidence : Entrepreneurial leaders are ina situation where they are trying something new and they're not sure of success. They're constantly stretching themselves and that requires confidence. Confidence s equal to or even more important than competence to succeed as a leader. eaKneted Scanned with CamScannerEntreprenourship and E-Business (MU), 8__ Entrepreneurship Development & inimasl have an understanding of their own emotions, personality, strengths and weaknesses can | | | Self-Awareness : Self-Awareness {s essential for Entrepreneurial Leadership. Leaders why better engage with employees and clients, 3. Understanding and Committing to Life Goals : Entrepreneurial leaders allow their strong sense of passion and purpose to drive themselves and inspire those around them. This helps them stay focused and motivates employees and partners to produce their best efforts to help make it a reality 4. Risk taking nature : Entrepreneurial leader must be ready to take risk, venture into new | areas and provide strategic direction and inspiration to their team. Integrity : Integrity is one of the most important qualities of entrepreneurial leadership. Itis | about remaining true to one’s own values and vision and standing up for what they believe in, even in the face of opposition. 6. Managing and Motivating Subordinates ; Managing and motivating people is probably one of the most important entrepreneurial leadership skills. It directly influences productivity because of its impact on staff morale 7. Developing Subordinates : Entreprencurial leaders are committed to developing the people ‘who work for them. They help employees develop their own talents and skills. They know it's essential to help employees grow, so that the business can flourish into the future 8. Team Management/Development : The cornerstone of a successful enterprise is strong and effective teams. Entrepreneurial leaders ensure that team morale remains high. 9. Innovation, Creativity and Entrepreneurship : Entrepreneurial leaders are constantly being creative and innovative to get better. 10. Vision : A successful entrepreneurial leader has a clear vision. He knows exactly where he wants to go and how to get there. They communicate their vision to the team and work with them to make the vision a reality. 11. Flexibility : Entrepreneurial leaders must be flexible and he should change with the plans for progress of work. 12. Humility : Entrepreneurial leaders should be humble. They should be looking at themselves the mistake in the business failure, Ifthe business {s successful, it should not seen only as his ‘own success. At the same time, employees should be aware of the success as their own success, 13, Focus : Entrepreneurial leaders should focus on business success. They should be consumed their time and energy in this way. pees ‘Scanned with CamScanneroo W entrepreneurship and E-Business (MU) 2, Entrepreneurship Development & Leadershi 44, Decisiveness : Entrepreneurial leaders must make better decisions that will benefit the business. 45. Ownership : Entrepreneurial leaders are the owner of Its own success. They take control of external pressures. They must adopt this condition. 416, Positivity : Entrepreneurial leaders look positively these events. And they employees to be positive. 17, Ability to Listen : Entrepreneurial leaders are good a listener. They listen their employ and provide feedback. provide their ees 18, Perseverance : When the going gets tough, the entrepreneurial leader perseveres. True entrepreneurs simply don't quit, they keep going tll they find what they’re looking for. 19. Communication skills : The leader is able to clearly articulate their ideas, and the plan to achieve common goals. They encourage communication between departments and across levels. They avoid ambiguities and generalizations, and are able to avoid conflict and misunderstanding due to poor communication. Table 2.3.1 shows difference between common managerial leadership and entrepreneurial leadership. Table 2.3.1 : Difference between common manageri leadership and entrepreneurial leadership sr.| Enterpreneur Manager Entrepreneurial Leader No, 1 | Locatesnewideas | Maintains current | Leverages core business while exploring | operations new opportunities | | 2 | Starts a business Implementsthe | Starts businesses within an ongoing | business organization | 3 | Opportunity driven | Resource driven | Capacity and opportunity driven; leverages capacities and builds new ones to expand opportunity domain 4 | Establishes and Plans, organizes, | Establishes a vision and empowers others implementsa vision | staffs,controls__| to carry it out, 5 | Builds an Enhances Maintains entrepreneurial ability as organization around | efficiency of | organization grows ; ensures culture, the opportunity organization. structure systems are conductive to entrepreneurship ; removes barriers WE lett ce Scanned with CamScannerYF Entrepreneurship and E-Business (MU) 2-11 Entrepreneurship Development & Leadership 2.5.1 Economic Factors the most direct and immediate influence on to necessity when ic factor affecting Economic environment exercises entrepreneurship. This is likely because people become entrepreneurs due there are no other jobs or because of opportunity. Three important economl entrepreneurship growth are capital, labor, raw material and market. 1. Capital Capital is one of the most important factors of production for the establishment of an enterprise. Increase in capital investment in viable projects results in increase in profits Which help in accelerating the process of capital formation. Entrepreneurship activity too gets a boost with the easy availability of funds for investment. 2. Labor Easy availability of right type of workers also effect entrepreneurshi nces the emergence and growth of entrepreneurship. The The quality rather than quantity of labor influer problem of labor immobility can be solved by providing infrastructural facilities including efficient transportation. ‘The quality rather quantity of labor is another factor which influences the emergence of entrepreneurship. Most less developed countries are labor rich nations owing to a dense and even increasing population. But entrepreneurship is encouraged if there is a mobile and flexible labor force. 3. Row Material In the absence of raw materials, neither any enterprise can be established nor can an entrepreneur be emerged. It is one of the basic ingredients required for production. Shortage of raw material can adversely affect entrepreneurial environment. Without adequate supply of raw materials no industry can function properly and emergence of entrepreneurship to is adversely affected. 4. Market The role and importance of market and marketing is very important for the growth of entrepreneurship. In modern competitive world no entrepreneur can think of surviving in the absence of latest knowledge about market and various marketing techniques. With all of the social networks, digital publications, and online groups and forums, finding and reaching a targeted market has now become easler or cheaper. Techiouteags Scanned with CamScannerEntrepreneurship and E-Business (MU) 2 trepreneurship Development & Leadersh, 2.5.2 Social Factors Social factors can have a significant Impact on a person's likelihood to pursye entrepreneurship. 1, Family background A family background in entrepreneurship is one of the most influencing factor that motivates @ person to take up entrepreneurship. For those who have a positive experience with their own family business, they may be more likely to pursue their own ventures in the future, and they may see the entrepreneurial route as more customary and less unconventional or. risky. 2. Education Education enables one to understand the outside world and equips him with the basic knowledge and skills to deal with day-to-day problems. In any society, the system of education has a significant role to play in inculcating entrepreneurial values, In India, Our educational methods have not changed much even today. The emphasis is till on preparing students for standard jobs, rather than marking them capable enough to stand on their feet 3. Attitude of a society Certain societies encourage innovations and novelties, and thus approve entrepreneurs’ 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. 4. Cultural value Motives impel men to action. Entrepreneurial growth requires proper motives like profit- making, acquisition of prestige and attainment of social status. Ambitious and talented men/women would take risks and innovate if these motives are strong, The strength of these motives depends upon the culture of the society. If the culture is economically or monetarily oriented, entrepreneurship would be applauded and praised. In the Jess developed countries, people are not economically motivated. Monetary incentives have relatively less attraction, Men with organizational abilities are, therefore, not dragged into business, They use their talents for non-economic end. Scanned with CamScannerEntrepreneurship and E-Business (MU) 13__Entrepreneurship Development & Leaders 5, Psychological factors Perhaps the most direct factors impacting a person's likelihood to become an entrepreneur or at least a successful one, are in fact psychological. While a person's upbringing can influence their psychological factors like creativity, risk tolerance, drive, and leadership, these can also be personality traits that are deeply rooted in who a person Is, regardless of outside factors. 6. Creativity and Ideas Having creativity and new ideas obviously play a huge part in a person’s entrepreneurial journey, as entrepreneurship often sparks out of creative innovation. 7. Need Achievement The theory states that people with high need-achievement are distinctive in several ways. They like to take risks and these risks stimulate them to greater effort. The theory identifies the factors that produce such people. The ‘need achievement’ is conditioned more by social and cultural reinforcement rather than by parental influence and such related factors. 8, Leadership and Inspiring Others Leadership is one aspect of entrepreneurship that no founder can avoid, as an entrepreneur is in charge of turning an idea into a business. Oftentimes, entrepreneurs become accidental leaders and learn these leadership skills “on the job,” but it's never too early to prepare. 9. Motives Other psychological theories of entrepreneurship stress the motives or goals of the entrepreneur. Besides wealth, entrepreneurs seek power, prestige, security and service to society. Sokenon-monetary aspects such as independence, persons’ self-esteem, power and regard of the society play an important role in entrepreneurship growth. Apart from all these factors Government actions such as creating basic facilities, utilities and services to promote entrepreneurship also plays an important role in emergence of entrepreneurs. 2.6 Entrepreneurial Opportunities and Challenges 2.6.1 Entrepreneurial Opportunities * Entrepreneurial opportunities are usually defined as situations where products and services can be sold at a price greater than the cost of their production. An ‘entrepreneurial opportunity’, thus, isa situation where entrepreneurs can take action to make a profit, WF Tekinoateegs Scanned with CamScanner \7 ¥ Entrepreneurship and E-Business (MU) 2-14 Entrepreneurship Development & Leadership Some recent drivers for change in the entrepreneurial space include new funding options, technological advancements, globalization, and industry-specific economics. Increased access to capital through social media sources like crowdsourcing Is having g significant impact on entrepreneurship in that it enables underserved people ang communities to start and own a business to become entrepreneurs. ‘Technological advancements continue to provide new opportunities, ranging from drones to artificial intelligence, advancements in medical care, and access to learning about new technology. For example, drone technology is being used to map and photograph real estate, deliver products to customers, and provide aerial security and many other services. Cell Phones have spawned many new business opportunities for a wide range of cell phone accessories and related products, ranging from cell phone cases to apps that help make our cell phones faster for business and personal use! Increased globalization drives entrepreneurship by allowing importing and exporting to flourish. Globalization also helps spread ideas for new products and services to a world market instead of a local or regional market. Combined with the Internet and computer technology, even small businesses can compete and sell their products around the globe. Economic factors could include a strong economy that fuels other businesses. For example, growth in the housing market fuels, growth for many housing-related products and services, ranging from interior decorating to landscaping as well as furniture, appliances, and moving services. 2.6.2 Challenges to Entrepreneurs ‘The super competitive business world brings many challenges to entrepreneurs. Capital Management Cash flow as we all know is an integral part of all business ventures. If you manage your capital well, it allows you to stay in business long enough to make it as a business owner. However, instances are not rare when entrepreneurs struggle with bill payment while waiting for bills to get cleared. Delayed invoicing is a major trigger of these challenges of entrepreneurs. Scanned with CamScanner¥v Entrepreneurship and E-Business (MU) 2-15 __Entrepreneurship. Development & Leadership 2 Lack of Resources It’s easy to look at established players In the Industry and see how much equipment, resources and the staff they have at their disposal. In the beginning an entrepreneur may lack resources, But the lack of resources forces them to be creative and that's the competitive advantage. Team Building Another common problem of entrepreneurs is team building. How are you going to put your team together? How good of a recruiter are you going to be? Are you good at bringing in solid talent? You'll face the challenge of building a team when you realize you can‘t do it all. And it comes down to how well you build a team, Start with trust and develop strong collaborations with your team, But trust works both ways, so choose your people carefully ~ pick individuals that you are confident in and can become a resourceful work family member. Technical Know-How Let's say you're looking to start an online store but have no idea where to start. You learn through trial and error but fortunately for you, the internet is filled with tutorials and walkthroughs, helping you to navigate this terrain with ease. We're all a giant community of people holding each other's hands as you try new things. Technical know-how may be intimidating at first, but with time and practice you'll learn how to use the tools at your disposal, Broaden your horizon, make time for research and invest in practising what you learned. Many Different Hats Wearing many different hats is also one of the problems encountered by entrepreneurs. Many time an entrepreneur is under the impression that he will be in his office only overseeing how things are run and not be involved in the day-to-day operations. ‘That might become a reality later on down the road but in the early days he will be doing everything, Initially an entrepreneur could be the salesperson, the manufacturer, the distributor, the support, the manager and the one in charge of keeping it all together. ¥ pire Scanned with CamScanner¥ Entrepreneurship and E-Business (MU) Entrepreneurship Development & Leaderst Most people would just give up because they lack the ability to segment, create processes and delegate work. Wearing different hats in the beginning would allow you to understand your business and risks better, Fierce Competitors People will want to knock you out new entrepreneurs. Most of the new entrepreneurs will have to deal with some fierce competition and people that want to put you out of business, You're taking a piece of business away from them, and chances are they will find ways to put # stop to that. Find out who your competitors are, what they are offering, and what their strengths and weaknesses are. Then identify your target and step up your marketing game plan, Finding Customers Almost everyone thinks that customers just happen. If you build a business, they will come. This might be true if you're the only coffee shop in your city, or have an advantage in your demographic but for everyone else, you'll have to draw them in. Learn to market, tell stories, showcase your products and the benefits you offer your clients. You'll need to learn the skill of selling, and how to find new customers. 2.7 Entrepreneurship Process Entrepreneurship does not emerge spontaneously. Rather it is the outcome of a dynamic Process of interaction between the person and the environment. It is useful to break the entrepreneurial process into five phases : L 2 Discovery (or idea generation) Business planning Resourcing company formation/launch Harvesting (or growth) Scanned with CamScannerDeveloping a business plan Discovery Resourcing Entrepreneurial process 8 v Managing company Fig. 2.7.1 : Entrepreneurial process Table 2.7.1 : Entrepreneurial process sr. Stage Action No. 1. | Discovery Entrepreneur generates ideas, recognizes opportunities, and studies the market. 2. | Developinga | Develop a business plan : a detailed proposal describing the business Business plan | idea. 3, | Resourcing | The entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture startup, etc. company resources to achieve its goals/objectives 5, | Harvesting | The stage in which the entrepreneur decides on venture’s future growth, development, or demise | 4, | Managingthe | The stage in which the entrepreneur operates the business and utilizes . Discovery ‘An entrepreneurial process begins with the idea generation, wherein the entrepreneur identifies and evaluates the business opportunities. An entrepreneur seeks inputs from all the persons including employees, consumers, channel partners, technical people, etc. to reach to an optimum business opportunity. Once the opportunity has been decided upon, the next step is to evaluate it. Teeananaid Scanned with CamScanner¥ 2 5. Entrepreneurship and E-Business (MU) 2-18 _ Entrepreneurship Development & Leadership An entrepreneur can evaluate the efficiency of an opportunity by continuously asking certain Questions to himself, such as, whether the opportunity is worth investing in, is it sufficiently attractive, are the proposed solutions feasible, is there any competitive advantage, what are the risk associated with it. Above all, an entrepreneur must analyze his personal skills and hobbies, whether these coincides with the entrepreneurial goals or not. Developing a Business Plan Once the opportunity is identified, an entrepreneur needs to create a comprehensive business plan. A business plan is critical to the success of any new venture since it acts as a benchmark and the evaluation criteria to see if the organization is moving towards its set goals. Major components of a business plan are mission and vision statement, goals and objectives, capital requirement, a description of products and services, etc. Resourcing Im this step, the entrepreneur identifies the sources from where the finance and the human Tesource can be arranged. Here, the entrepreneur finds the investors for its new venture and the personnel to carry out the business activities. Managing the company Once the funds are raised and the employees are hired, the next step is to initiate the business operations to achieve the set goals. First of all, an entrepreneur must decide the management structure or the hierarchy that is required to solve the operational problems when they arise. Harvesting The final step in the entrepreneurial process is harvesting wherein, an entrepreneur decides on the future prospects of the business, ie. its growth and development. Here, the actual growth is compared against the planned growth and then the decision regarding the stability or the expansion of business operations {s undertaken accordingly, by an entrepreneur: The entrepreneurial process is to be followed, again and again, whenever any new venture is taxen up by an entrepreneur, therefore, it's an ever-ending process. i Scanned with CamScanner9. Entrepreneurship Development & Leadership WY Entreprenourship and E-Business (MU) 2.8 Types of Enterprises and Ownership Structure Small Scale, Medium Scale and Large-Scale Enterprises A business can range from a single proprietor enterprise to a large corporation which employs thousands of workers across multiple countries, Based on the scale of business, enterprises are classified as 1. Microscale 2. Small scale 3. Medium scale 4, Large-scale 2.8.1 Definition of Micro, Small and Medium Enterprises in India + There exists several definitions of the term small and medium enterprises (SMEs), varying from country to country and varying between the sources reporting SME statistics. * 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: 1. Manufacturing Enterprises : The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries. The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery. 2. Service Enterprises : The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment. The commonly used criteria at the international level to define SMEs are the number of employees, total net assets, sales and investment level. Classification based on Number of employees No. of employees | Type of industry | 0 Self employed 2-9 Micro 10-49 Small 20 - 249 Medium Scanned with CamScanner coarseness 5Entrepreneurship and E-Business (MU) 2-20 _Entrepreneu i Dene Leaders Classification based on Investment In the Indian context, micro, small and medium enterprises as per the MSME Developmen Act, 2006 are defined based on thelr investment in plant and machinery (for manufacturing enterprise) and on equipment for enterprises that provide services. For manufacturing Industries Type of industry Investment in plant and machinery Micro scale Does not exceed 25 Lakhs Small scale More than 25 lakhs but does not exceed 5 crores | Medium enterprise | More than 5 crores but dies not exceeds 10 crores Large scale More than 10 crores According to the Micro, Small and Medium Enterpises (MSME) Development Act of 2006, (india) 1. A micro enterprise is where the investment in plant and machinery does not exceed twenty five lakh rupees. 2, AMedium enterprise is where the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees, 3. A small enterprise is where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees. For service industries Type of industry Investment in equipment Micro scale Does not exceed10 Lakhs Small scale More than 10 lakhs but does not exceed 2 crores Medium enterprise | More than 2 crores but does not exceed 5 crores Large scale More than 5 crores Techtnowledat Scanned with CamScanner| ‘entrepreneurship and E-Business (MU) 2:21 _Entrepreneurship Development & Leadership t nthe case of the enterprises engaged in providing or rendering of services, 4, Amicro enterprise is where the investment in equipment does not exceed ten lakh rupees. 2, Assmall enterprise is where the investment in equipment Is more than ten lakh rupees but does not exceed two crore rupees. 3, Amedium enterprise is where the investment in equipment is more than two crore rupees but does not exceed five crore rupees. 2.8.2 Meaning : Small ,Medium and Large Scale Enterprise Small Scale Enterprise Small Scale industries, as the name suggests are the industries wherein the production process is undertaken at a small or say micro level. It is often set up by private individuals, usually with the help ahd support of their family members and hiring local workers who understand the work. Ituses simple machinery, tools and equipment. These industries play a crucial role in rural industrialization as well as in providing subsidiary employment to rural people. These industries do a one-time investment in machinery, plants, and industries which could be on an ownership basis, hire purchase or lease basis, Examples of SSI are manufacturing of Napkins, tissues, chocolates, toothpick, soft toys, leather material, paper bags, beauty parlor ete. A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore. Medium Scale Enterprise The category of medium scale enterprises is made up of enterprises which employ fewer than 250 persons. These enterprises emerge from the slow and steady growth of successful small businesses. As a company earns more revenue, it starts keeping aside the capital required for buildings, equipment, and recruitment of more employees. This eventually creates a bridge betweerf small businesses and big corporations. A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore. Large Scale Enterprise Industries which requires huge Infrastructure and manpower with an influx of capital assets are Large Scale Industries. In India, large-scale industries are the ones with a fixed asset of more than one hundred million rupees or Rs, 10 crores. Scanned with CamScannerFF _ Entrepreneurship and E-Business (MU) 22 _ Entrepreneurship Development & Leadershj foreign currency, ‘The Indian economy relies heavily on such industries for economic growth, generation of and the creation of job opportunities for millions of Indians. In Indla, the following heavy industries fall under the purview of large scale industries : Iron and Steel Industry Textile Industry Automobile Manufacturing Industry Over the last two decades, Information and Technology (IT) industry has evolved and has contributed huge revenues while creating thousands of jobs for Indians. Hence, many economists include it in the large-scale industry sector. Telecom Industry 2.8.3 Differences between a Small (and Medium Enterprise) and Large Entities The difference between small scale and large scale industries can be drawn clearly on the following grounds : 1. Small Scale Industries undertake manufacturing, processing and conversion of goods and involves investment in the fixed asset, ie, plant and machinery, up to a specified amount. Conversely, large scale industries imply those industries which is set up to manufacture consumer goods and capital goods on a substantial level, for which huge investment is made in the plant and machinery. ‘Small Scale Industries are labour intensive, as their dependency on the labour force is high, but they also require capital for its operation and expansion. On the contrary, Large Scale Industries are capital intensive, as they require huge capital investment to establish and operate it. When it comes to the geographical area, small scale industries are established in a limited area generally at the location from where the raw material and labour supply is easily available. On the contrary, large scale industries are set up In a vast area, indeed they are located in multiple locations in the country. ‘Small scale industries require skilled or semi-skilled workers. As against, skilled workers ar required in large scale industries and so proper training is given to the workers on the way it which they can operate machinery. wien Scanned with CamScannerbe WY _Entrepreneurship and E-Business (MU) Entrepreneurship Development & Leadership 5, Small scale industries use native technology for manufacturing the products. As against, large scale industries use advanced technology to create the products, so as to reduce the cost and maximize profit, 6, Small Scale Industries purchase raw material from the local suppliers and sometimes from external suppliers. In contrast, large scale industries procure raw materials from different suppliers from within and outside the country. 7, Small scale industries aim at generating employment opportunities with less investment. Contrastingly, the aim of large scale industries is to produce consumer goods and capital goods within the country, to make itself reliant. Table 2.8.1 : Summarizes the basic difference between small scale and large scale industry. Table 2.8.1: Summary : Small scale Vs. Large scale Industry ‘Sr. Asis for No.| comparison Small scale industry Large scale industry 1. | Meaning Small scale industry is an industrial undertaking in which there is a definite capital investment in its plant and machinery: Large scale industry encompasses big industrial units whose investment in their plant and machinery is beyond the limit specified by the Government. 2 | Industry type Labour-intensive industry Capital intensive industry 3 | Geographical area covered Small Large 4 | Skills required It requires semi-skilled labours. Itrequires highly skilled labours. 6 | Raw materials 5 | Technology Indigenous technology State-of-the-art technology used |_| Procured from the local suppliers Procured from various suppliers of raw materials are there from within and outside the country. Objective To generate employment opportunities with _—_less investment. To produce consumer goods and capital goods within the country; to make itself reliant. ¥en Scanned with CamScanner¥ Entrepreneurship and E-Business (MU) Entrepreneurship Development & Leader, 2.9 Role of Small Enterprises in Economic Development Small scale industries are the driving force of country’s economic growth and have ay | important effect on the economic activity, Its role in economic development has been discussey below: Small Scale Industries Provides Employment * SStuses labour intensive techniques. Hence, it provides employment opportunities toa large ‘number of people. Thus, reduces the unemployment problem toa great extent, * _SStaccounts for employment of people in rural sector and unorganized sector, * _ Teprovides employment to skilled and unskilled people in India, ‘The employment capital ratio is high for the SSI, _ SSI Facilitates Women Growth Tt provides employment opportunities to women in India, entrepreneurs, SSI Brings Balanced Regional Development * SSI promotes decentralized development of industries as most of the small scale industries are set up in backward and rural areas, * Ht removes regional disparities by indiistralizing rural and backward areas and brings balanced regional development. © Itpromotes urban and rural growth in India. ~ ¢ It helps to reduce the problems of congestion, slums, sanitation and pollution in cities by providing employment and income to People living in rural areas, * _ Teplays an important role by initiating the government to build the infrastructural facilities in rural areas, * _ Hthelps in improving the standard of living of people residing in suburban and rural areas in India, ¢ The entrepreneurial talent is tapped in different regions and the income is also distributed instead of being concentrated in the hands-of a few individuals or business families. Scanned with CamScanner‘y__Entrepreneurship and S__Entrepreneurship Development & Leadership + §SI Helps in Mobilization of Local Resources © Ithelps t i 7 ps to mobilize and utilize local resources like small savings, entrepreneurial talent, etc., of the e1 i of ° ntrepreneurs, which might otherwise remain idle and unutilized. Thus it helps in effective utilization of resources. Itpaves way for promoting traditional family skills and handicrafts. There fs a great demand. for handicraft goods in foreign countries. |e It helps to improve the growth of local entrepreneurs and self-employed professionals in small towns and villages in India. SSI Paves for Optimisation of Capital + SSI requires less capital per unit of output. It provides quick return on investment due to shorter gestation period. The payback period is quite short in small scale industries. SSI functions as a stabilizing force by providing high output capital ratio as well as high employment capital ratio. * It encourages the people living in rural areas. and small towns to mobilize savings and channelize them into industrial activities. SSI Promotes Exports * SSI does not require sophisticated machinery. Hence, it is not necessary to import the machines from abroad. On the other hand, there is a great demand for goods produced by small scale sector. Thus it reduces the pressure on the country’s balance of payments. * SSlearns valuable foreign exchange through exports from India. SSI Complements Large Scale Industries + 51 plays.a complementary role to large scale sector and supports the large scale industries. components, accessories to large scale’ industries and meets the * SSI provides parts, wr the large scale units. requirements of large scale industries through setting up units nea © Itserves as ancillaries to large Scale units. SSI Meets Consumer Demands wide range of products required by consu 4 of the consymers without creating a shortage ally us * Ss mers in India. produces a, e. a for goods. Hence, it SSI meets the demanc goo mi | serves as an anti-inflationary force by providing goods of de oo a ee Scanned with CamScanneri One evelopment & Leaders Entrepreneurship Di 2:26 ¥ Entrepreneurship and E-Business (MU) SSI Ensures Social Advantage: + SS{helps in the development of the society by reducing concentration of income and weal in few hands. 3 * _SSl provides employment to people and pave for independent living. * SSI helps the people living in rural and backward sector to participate in the process development. * Itencourages democracy and self-governance. Develops Entrepreneurship: ] * Ithelps to develop a class of entrepreneurs in the society. It helps the job seekers to turn out | as job givers, © Itpromotes self-employment and spirit of self-reliance in the society ‘* "Development of small scale industries helps to increase the per capita income of India in | various ways. * It facilitates development of backward areas and weaker sections of the society. * Small Scale Industries are adept in distributing national income in more efficient and equitable manner among the various participants of the society. 2.10 Proprietorship ¢ — It is a form of enterprise in which an individual invests his own capital, uses his own skills and intelligence in the management of his affairs. * An individual is solely responsible for the results of his operations. This type of enterprise is also known as “individual enterprise”. It is the oldest and simplest form of enterprise. He enjoys full control overall the affairs of the firm. 2.10.1 Features of Proprietorship Entrepreneur has sole ownership of his enterprise. So, he enjoys all rights and authorities, Ithas one man control. Individual is solely responsible for the profit or loss. The entrepreneur has unlimited responsibility, L a 3. 4. Procedural formalities are simple to establish the enterprise. 5. He starts his enterprise with either his own savings or with the funds or borrowed 6. Ithas limited life cycle, as on death of owner it may be wounded up Scanned with CamScannerDevelopment & Leadershy Entrepreneurship and E-Business (MU) 27_ Entrepreneurs! 2.10.2 Advantages of Proprietorship + Easy and simple formation « Smooth management - Promptness in decision making * Personal touch with customers/workers © Complete secrecy about important matters. © Very limited legal formalities. 2.10.3 Disadvantages of Proprietorship «Limited financial resources + Limited management ability, © Owner may not be capable of handling all parts of the business © Unlimited liability © Lack of continuity © Limited future for employees. 2.11 Policies Governing SMEs Many policies initiated by the federal government of India to contribute to the success of the SME sector: 1. PMEGP (Prime Minister’s Employment Generation Program) «The Prime Minister’s Employment Iteration Program (PMEGP)Launched by means of the Ministry of Micro, Small and Medium companies (MSMEs) in 2008-09, is a credit score-linked subsidy application for the production of employment in each the rural and urban areas of the nation, ‘© Upto now, the flagship software has efficiently furnished employment for 1,18,196 persons in the course of April-September 2015-16. Additionally, in the course of the period 2013-14 and 2014-15, a complete of 12,951 people and 74,871 folks, respectively, were employed in ‘special sectors. Scanned with CamScannerpen lopment & Leadershj [ ¥ Entrepreneurship and E-Business (MU) 2.28 Entrepreneurship Develop! 2. Technological know-how Centre techniques Programs (TCSP) 3 * Started as a part of the sector bank-funded projects, the sclence Centre methods Programme (TCSP), goals in promoting technical skill development among youth. * Ithelps in skilling manpower by offering opportunities to people at all stages — from tuition | dropouts to graduate engineers, 4 * As per this information record, released in trade Insider, the Rs. 2,200-crore TCSP receives i funding aid to the tune of $200 million from the sector bank. In keeping with evaluation stories carried out in 2014, the results of the software were encouraging. * And following its success rate, the DC (MSME) has made up our minds to upgrade the existing 18 technology centers (T'Cs) and in addition, mounted 15 new ones. * _ Ihas been begun in 2014, the science center methods program objectives of encouraging ‘echnical skill development among youth. It helps in Skilling manpower by offering ‘opportunities 3. Make-in-India policy f c f © +The Make in India which is one of the Government Policies launched with the aid of the top = Minister Narendra Modi with the purpose of reviving and selling development within the manufacturing sector. * The bold policy urges organizations within and external India to mount base in the manufacturing industry. Through the Make-in-India coverage, the government ambitions: © To create a hundred million jobs within the manufacturing sector by 2022 © Expand the development fee within the manufacturing sector as much as 12%-14% every year © Ensure sustainable progress with regard to the environment © Expand the proportion of the manufacturing sector from 16% to 25% through 2022 © _ Increase the growth of the manufacturing sector by using 12%-14% per annum © develop its share of GDP to 25% by way of 2025 4. MUDRA bank : Micro model development and Refinance company financial © institution Scanned with CamScanner\ _snirepreneurship and E-Business (MU) 2-29 _ Entrepreneurship Development & Leadership ‘As of January 12, 2016 (published in economic occasions dated January 12, 2016), the financial university has managed to refinance Rs.1,500 crore to micro Items by means of public sector banks. And of the Rs.1,500 crore refinanced, about Rs 800 crore was being taken by way of banks and the steadiness by way of micro-finance institutions (MFIs) and NBFCs. 2.12 Partnership Definition : A legal form of business operation between two or more individuals who share management and profits. Types of partnership A general partnership (GP) consists of partners who participate in the day-to-day operations of the partnership and who have liability as owners for debts and lawsuits. A limited partnership (LP) has one or more general partners who manage the business and retain lability for its decisions and one or more limited partners who don't participate in the operations of the business and who don't have liability. For example the limited partners serves investors only. Alimited liability partnership (LLP) extends legal protection from liability to all partners, including general partners. An LLP is often formed by partners in the same professional category, such as accountants, architects, and lawyers. The partnership protects parmers from liability from the actions of other partners. Types of Partners in a Partnership on ti Partners may be individuals, groups of individuals, companies, and corporations. Depending of parmership and the levels of partnership hierarchy, a partnership can es of partners, : General partners participate in managing the ner General partners and limited p partnership and often have liability for partnership debts and obligations. Limited partners invest but do not participate in management. Different levels of partners: For example, there may be junior and senior partners. These partnership types may have different duties, responsibilities, and levels of input and investment requirements. WF Jettanmtet Scanned with CamScanner“AC CR «© Limited companies fall into two categories : Public and Private Entrepreneurship and E-Business (MU) 30___Entrepreneurship Development & Leadership Forming a Partnership * Partnerships are usually registered with the state or states in which they do business, but the requirement to register and the types of partnerships available vary from state to state, * Partnerships use a partnership agreement to clarify the relationship between the partners, | what contributions, including cash, they will make to the partnership; the roles ang Tesponsibilities of the partners; and each partner's distributive share in profits and losses, * This agreement is often just between the partners; it's not generally registered with a state, 2.12.1 Advantages of Partnership There are several advantages of choosing to structure a business as a partnership, which include : * Partners can contribute capital. + Partners offer a built-in support system, * Shared responsibilities, * The business can benefit from more ideas and creativity of partners, + Business has access toa wider range of skill sets. * Possible taxation benefits. 2.12.2 Disadvantages of Partnership * There is shared control of the business. © There are shared profits. * You must compromise. © You both have joint liability. ‘© Danger of disagreement or conflicts. 2.13 Ltd. Companies and Co-operatives: their Formation, Capital Structure and Source of Finance 2.13.1 Ltd. Companies ¢ — Alimited company (LLC) is a general term for a type of business organization wherein owners’ assets and income are separate and distinct from the company's assets and income; known as 4 limited liability, * j wee Scanned with CamScanner¥ Entrepreneurship and E-Business (MU) 31 Entrepreneurship Development & Leadership Public Limited Company (PLC) APLC designates a company that has offered shares of stock to the general public. The buyers of those shares have limited lability. Meaning, they cannot be held responsible for any business losses in excess of the amount they paid for the shares. 2. Private Limited company (PVT) + Unlike a public company, in which anyone can buy shares, membership in a limited company is governed by a company's rules and law. + Aprivate limited company can be 1. “limited by shares" or 2, “limited by guaraitee.” + When limited by shares, a company is owned by one or more shareholders and managed by at least one director. + Inalimited by guarantee arrangement, a company is owned by one or more guarantors and = j managed by at least one director. + The primary benefit of a limited company is the separation of assets and income from the corporation and the owners and investors through limited liability. This means that if a company goes bust, shareholders can only lose as much as their original investment and no more; creditors or other stakeholdérs cannot claim owners’ personal assets or income. Because of limited liability, investors are more eager to risk capital since their losses are limited in that sense. 2.13.1(A) Limited Company Benefits Filing as a limited company comes with a number of benefits. They include : + Alimited company and the people who run itare legally distinct. Alimited company structure provides a firewall between the finances of the company and its owners. Alimited company is allowed to own assets and retain any profits made after-tax. © Alimited company can enter into contracts on its own, re Scanned with CamScanner1 ‘Entrepreneurship Development & Leadership | Entrepreneurship and E-Business (MU) 2.13.2 Co-operatives * Who owns a business determines the type of entity it s. When an individual owns and operates a company, It's often a sole proprietorship. © When two or more people own a company, it’s often a partnership. When a company is owned and operated by the people who use its products and services and who benefit from what the company has to offer, i's known as a cooperative. Aside from the ownership structure, there are a few other distinct features that set cooperatives apart from other types of business. Definition “An autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise.” Purpose The purpose of a cooperative isto realize the economic, cultural and social needs of the organization's members and its surrounding community. Cooperatives often have a strong commitment to their community and a focus on strengthening the community they exist in or serve, When a co-operative does well financially or economically, the community served by the co- op benefits, not just a small group of shareholders. Characteristics 1. Cooperatives are Business Organizations * Cooperatives are organized by likeminded people to satisfy a particular group of economic needs like credit, banking, marketing, service, consumer distribution, and other services. * They work on business lines applying all business and management techniques. + They earn a surplus, whats called as profit to manage the institution. * As business organizations, they have to compete with other sectors of the economy, the private sector and the public sector. * Applying all business techniques, they strive to improve their volume of business year after year and they diversify their activities according to the needs and demands of the members, * This business character of cooperatives needs the application of entrepreneurial qualities to the business undertaken. For example, to run a marketing cooperative, the board or the leaders of such cooperative must know all the elements of marketing, Scanned with CamScannerEntrepreneurship and E-Business (MU) 33 _ Entrepreneurship Development & Leadership 2 Cooperatives are Soclal Organizations Cooperatives Is a combination of both economic service and social benefit. By being social organizations, cooperatives work to serve the poor and underprivileged in the community: One of the basic features to organize cooperatives of various kinds by various sections of the society is to avert exploitation, of all forms, It is the cooperatives which relieve the farmers from the exploitation of usurious money lenders, avert the exploitation of private traders, and protect the members from organized collusion. Hence, the entrepreneurship character is very much emphasized to extend more service benefits to the maximum population living in the specific area of operation. principles L 2 Voluntary membership: Any person who is willing to accept the responsibilities of co-op membership and who wishes to use the services of a cooperative is welcome to become a member. Democratic member control: Co-ops are controlled by their members. Members have control over setting policies for the co-op and making decisions for the cooperative. Member economic participation: Members contribute to the capital of the co-op democratically and equitably. Most of the capital of a co-op remains the property of the co-op and isn’t redistributed to members. Autonomy and independence: Co-ops are meant to be autonomous and democratically controlled, meaning they aren't subject to control by outside organizations. Education, training and information: A cooperative provides education and training to members and board members to allow them to contribute to the development of the co-op. Cooperatives also seek to inform and educate the public about the mission and operation of a co-op, Cooperation among cooperatives: Co-ops will often work together, creating regional, national and international structures that help to improve the community and create a better world. Concern for community: The policies approved by the members of a cooperative should help to develop the community around the co-op in a sustainable way. Scanned with CamScannerjusiness (MU) Entrepreneurship and Formation Cooperatives are often distinguished from a partnership in the scale of its membership, ix being quite large. © As equity and equality are among the founding principles of a cooperative, each member. ‘owner of a co-op gets one vote. The opinion of one co-op member does not have more weight than the opinion of another co-op member, * Cooperatives often elect a board of directors. The responsibilities of the board of a co-op include ensuring that the cooperative is working towards achieving its mission, setting up operational policies for the co-op and hiring any outside managers or other employees. * Members of a co-op's board are members of the cooperative itself. They are typically elected to the board by a member vote, Some board members also serve as officers, such as president, vice president, secretary and treasurer. Board officers have additional responsibilities and duties, which are usually described and outlined in the by-laws of the cooperative. 13.2(A) Types of Cooperatives ‘ Cooperatives can be large or small, can exist in a range of industries or sectors and can take multiple forms, based on who the member-owners of the co-op are, A few examples of cooperative types include: © Worker co-ops : Worker cooperatives are owned by the people who work for the company. Workers contribute to the co-operative through their labor and the work they do for the organization, Although worker co-ops can be in any industry or sector, many are in the retail and service industries. . © Producer co-ops : Producer cooperatives are owned by the producers of products who have joined together to market their products better or to streamline the production process. Agriculture cooperatives such as Blue Diamond or Land O'Lakes are examples of producer cooperatives. * Consumer co-ops : Consumer co-ops are owned by the customers who then purchase goods and services from the cooperative. Grocery co-ops are a well-known example of consumer cooperatives. * Purchasing co-ops : Purchasing co-ops are typically made up of several small businesses who have joined together to improve their purchase power and to get better discounts and oifers on products and services, © Hybrid co-ops: A hybrid cooperative is a combination of any of the four other types of co-op. Scanned with CamScannerness (MU) 2 | _sntrepreneurship and E 5 _ Entrepreneurship Development & Leadership 3.13-2(B) Advantages of Cooperatives 4, Usually fair returns for marketing of goods 2, Reduce Costs and Improve Products and Services 3, Motivation through helping each other 4, Productivity may increase due to share of potential profit 5, Develops harmony among people 6, Limited liability to share holders 7, Perpetual life 8, Less Taxation 2.13.2(C) Disadvantages of Cooperatives i 1.” Equal share in management can cause a slow bureaucracy and political friction. 2. Lack of Membership and Participation. May have more Government regulations 3. Obtaining Capital through Investors. Review Questions ] 0.1 What is meant by entrepreneurial motivation? Is it necessary for a successful entrepreneur? Discuss. (Section 2.1) Q.2 What are the factors that motivate people to go into business?( Section 2.1.5) Q.3 Explain theories of Motivation. (Section 2.1.4) Q.4 Explain different types of start-up with suitable examples. (Sectlon 2.2) @.5 What do you mean by entrepreneurial leadership? What are the main characteristics of entrepreneurial leadership? (Section 2.3) ©.6 Discuss Factors that influence entreprenoural davelopment and motivation. (Section 2.8) 7 What are the challenges faces by Entrepreneur in India? What are its solutions? (Section 2.7) WE Fettanuteest eae seereresee Scanned with CamScanner@.8 Explain step by step process of entrepreneurship? (Section 27) @.9 “SME's aie the driving force of economy Growth *. Explain the significance of this statement, @.10 Explain different types of Enterprise with suitable examples. (Section 2.8) Q.11 What do you mean by Proprietorship? What are the advantages and disadvantaged of if, (Section 2.9) Q. 12. Explain different types of partneiships that entrepreneur can choose for? Also write pros and cong of each. (Section 2.10) Q. 13 Differentiate between partnership and cooperatives. (Sections 2.12 and 2.13.2) goa Scanned with CamScanner