EPM ALL NOTES

CHAP 1
MEANING
: The concept of entrepreneurship is an age-old phenomenon that relates to
the vision of an entrepreneur as well as its implementation by him.
Entrepreneurship is a creative and innovative response to the environment. It is
also the process of setting up a new venture by entrepreneur. Entrepreneurship
is the mixture of many qualities and skills such as imagination, risk taking ability
to harness factors of production i.e land, labour, technology and various other
intangible factors. Entrepreneurship can be described as process of establishing
an enterprise.

Characteristics/Nature of Entrepreneurship
Entrepreneurship is a creative and innovative action process of entrepreneur
towards establishing an enterprise.
Following are some of the main characteristics of entrepreneurship:
1) Innovation the essence of Entrepreneurship: Entrepreneurship is an
innovative function as it involves doing things in a new and better way.
Innovation is the process of doing new things
2) Economic Activity: Entrepreneurship is basically concerned with the
economic activities i.e production and distribution of goods and services.
3) Creation of Value: Entrepreneurship is virtually a creative and a purposeful
activity. It leads to creation of new products, services, approaches, resources,
technologies, and markets that contribute some value to a community or
marketplace.
4) Risk Bearing: Risk is an inseparable element of entrepreneurship. An
entrepreneur assumes the uncertainty of future. In the pursuit of profit, there
is possibility of loss also.
5) Dynamic Process: Entrepreneurship is a dynamic function. Flexibility is the
tool towards successful entrepreneur.

Role of Entrepreneurship in Economic Development:

The major role of entrepreneurship in economic development of an economy is
discussed as follows:
1) Promotes Capital Formation: Entrepreneurial growth encourages capital
formation. It helps in mobilising idle savings of the public through issue of
securities which ultimately results in productive utilisation of resources
2) Employment Generation: Entrepreneurship generates employment
opportunities in the country by promoting small scale business. It not only
results in self employment but provides opportunity for others to get the jobs
according to their skills, knowledge and capabilities.
3) Balanced Regional Development: Entrepreneurs help to remove regional
disparities through setting up of industries in less developed and backward
areas. In a way they get the advantage of government’s grants, subsidies and
other benefits by promoting the industry in the backward areas by providing
large number of benefits
4) Wealth Creation: Entrepreneurship stimulates equitable redistribution of
wealth and income in the interest of the country to more people and
geographic areas thereby giving benefit to larger sections of the society.
Entrepreneurial activities also generate wealth in the economy and give a
multiplier effect.

3. Functions of an Entrepreneur:
The functions of an entrepreneur are broadly classified in the following
categories:
(A) Entrepreneurial Functions
1. Innovation: Schumpeter defines entrepreneur as an innovator who
introduces new combinations of means of production. In today‟s modern
business innovation plays an important role.
2. Risk Taking: Risk taking is also the important function of an entrepreneur.
Risk taking refers to take responsibility for loss that may occur due to
unforeseen contingencies of the future.
(B) Promotional Functions
1. Idea Evolving: The foremost function of an entrepreneur is to conceive the
idea to start a profitable and rewarding venture. He should be competent
enough to discover new and innovative ideas and commercially exploit them.
2. Detailed Investigation: After confirming the feasibility in terms of costs and
benefits entrepreneur will estimate total demand for the product. There may
be certain players already in that type of market, therefore he will firstly
determine his plan of action and then enters into the market.
(C) Managerial Functions:
1. Planning: Planning is the most important managerial function of
entrepreneur. It is pre- determined course of action to accomplish the given
objectives of an enterprise. An entrepreneur has to decide in advance what is
to be done, how it is to be done, when it is to be done, where it is to be done,
by whom it is to be done and so on.
2. Organising: The organizing function of an entrepreneur refers to bringing
together various factors of production for the successful execution of his
planning. He makes objective selection of individuals in conformity with their
skill in solving specific problem.

TYPES OF ENTREPRENUERSHIP
Types of Entrepreneurs: The various types of entrepreneurs are classified as
under:
1. According to the Type of Business
i) Business Entrepreneur: Business entrepreneurs are individuals who conceive
an idea to introduce a new product or service in the market and then start a
business to materialize their idea into reality.
ii) Trading Entrepreneur: Trading entrepreneur is one who undertakes trading
activities and is not concerned with the manufacturing work of goods
iii) Industrial Entrepreneur: An entrepreneur, who sets up his own industrial
unit, is called Industrial Entrepreneur. He explores the opportunities to set up
his business

According to the Use of Technology

i) Technical Entrepreneur: A technical entrepreneur is essentially an
entrepreneur of “craftsman type.” These entrepreneurs focus on
production rather than marketing.
ii) ii) Non-Technical Entrepreneur: An entrepreneur who is not
concerned with the technical aspect of the product is called non-
technical entrepreneur

Clarence Danhof
These entrepreneurs are classified into four types:
i) Innovative Entrepreneur: Innovative entrepreneurs are one who
introduce new goods, innovates new methods of production,
discovers new markets and brings them together to create value.
ii) ii) Adoptive or Imitative Entrepreneurs: Those entrepreneurs who are
ready to adopt successful innovations created by innovative
entrepreneurs are called adoptive entrepreneurs. Instead of
innovating the changes themselves, they just imitate the technology
and techniques innovated by others.

INTRAPRENEUR

An intrapreneur is an employee with entrepreneurial skills and is

responsible for developing innovative ideas, products, or services for
their company. Their goal is to enhance the sustainability of the
business and help it stay ahead in the competition.

The employer provides such passionate job crafters, also known as

inside entrepreneurs, the resources and capabilities needed to
complete the project. Intrapreneurs also get the freedom and
flexibility to work without worrying about the risks or rewards. Part
of their task involves exploring company policies, analyzing market
trends, and making changes to or introducing new concepts.
CHAP 2
Factors responsible to the Success of Entrepreneurship:
The success of entrepreneurship is dependent on certain important factors.
Some of the important factors are:
Economic Factors
These factors are important in influencing the economic stability and growth of
a country. They are the factors that are crucial in ensuring your company sees
its expected progress and attains its objectives.

Capital
To start your entrepreneurial journey, you would need capital for many
reasons. First off, you would need land, a place where you can start your
company. You would need raw materials to create the product or service. You
would also need machines to process those raw materials.

Infrastructure
The infrastructure available in your city, village or town will go a long way in
having an impact on the growth of your entrepreneurial venture. A location
with quick and easy access to communication tools and the latest technology
will help boost your business or company.

Labour
For a business to see growth and success, you will require skilled labour. The
quality of labour should be given importance over the quantity of labour.
However, the availability of quality labour at an efficient cost would be a bonus.
Choose a location that will be able to provide the labour population you
require.

Raw Material
Just as important as labour is raw material procurement. When choosing the
location for your business make sure it is near the raw material source. While it
is possible to transport the raw material through a supply chain, such
requirements would increase expenses
Market
The market plays an important role in ensuring the growth of your business.
The size of the market, as well as the marketing techniques used, are both
important. A market is a place where entrepreneurs and consumers interact. It
is a place where buying and selling take place.

Non-Economic Factors
Various non-economic factors come into play in affecting the growth of
entrepreneurship. Some of these are:

Social Mobility
Social mobility is an important factor in the growth of a business. The society
where you are starting your entrepreneurship journey should be an accepting
one.

Education
Education has an important role to play in defining your entrepreneurial
journey. This may be formal or informal education. While one should acquire
the degrees required to start a business, this opportunity may not be accessible
to all.

Entrepreneurship Legitimacy
All societies in the world come with their terms, norms, and regulations. The
entrepreneur must learn to adapt himself and his business to society. There are
cultures and traditions passed down through generations that cannot be
ignored in totality

Attitude of the Society

The attitude of society is another factor that should be considered for the
growth of entrepreneurship. For entrepreneurs to flourish, society should learn
to accept changes.

Cultural Value
The cultural values of a country also impact the growth of entrepreneurship. If
the culture has a leaning toward the growth of the economy and money-
making business, there are higher chances of entrepreneurs flourishing in the
country.

Conclusion
There are many factors affecting entrepreneurial growth and some of these
factors can be classified into economic and non-economic factors. Both factors
play important roles in ensuring the growth of a business or company. The
economic factors are such as capital, infrastructure, raw material, labour, and
market. Without these economic factors a business can’t grow and earn profit.

EDP OBJECTIVES AND NEED

Concept of Entrepreneurial Development Programme (EDPs) Entrepreneurial
Development Programme (EDP) means programme designed to develop
entrepreneurial ability among individuals. In other words, EDP means a
programme which aims to strengthen the entrepreneurial ability of prospective
entrepreneur.

Objectives of EDPs
The main aims and objectives of entrepreneurial development programmes are
as follow:
i. Develop entrepreneurship and strengthen the entrepreneurial base
and quality.
ii. ii. Promote and develop small scale businesses that encourage self
employment.
iii. iii. Analysing surrounding environment to identify the opportunities
lying in the environmental set up.
iv. iv. Help prospective entrepreneurs to select the type of business and
product to run an enterprise.
v. v. Train individuals to prepare project proposal or business plans.
vi. vi. Educate prospective entrepreneurs about the process of setting an
enterprise.
vii. vii. Inform about the sources from where entrepreneurs can get the
financial and other supports for starting an entrepreneurial activity.
viii. viii. Developing the entrepreneurial competencies which result in
superior business performance.
ix. ix. Identification of necessary characteristics of entrepreneurship and
inculcate the required ones.
 x. x. Develop first-generation entrepreneurs who want to start their own
business, but required some guidance and assistance.
xi. xi. To establish the fact that entrepreneurs are made, not born.

NEED
Need of Entrepreneurship Development Programme
Entrepreneurship Development Programme means a programme conducted to
help a person in strengthening his entrepreneurship motive and in acquiring
skill and capabilities required for promoting and running an enterprise
efficiently. It is a programme which is conducted with a motive to promote
potential entrepreneurs, understanding of motives, motivational pattern, their
impact on behaviour and entrepreneurship value is termed as
entrepreneurship development programme.
The need of EDP is as follows:
1. It helps in developing entrepreneurs
2. It helps entrepreneurs in developing and improving their skills
3. EDP is a tool of industrialisation and path to economic growth through
entrepreneurship
4. EDP helps in dispersal of economic activities in different regions by
providing training and other support to local people
5. It provides opportunities for self-employment and entrepreneurship
careers
6. EDP develops motivation, competence and skills necessary for successful
launching, management and growth of the enterprise
7. EDP, by inculcating entrepreneurship capabilities and skill in the trainees,
creates a new generation of entrepreneurs

Stages/ Phases of Entrepreneurial Development Programmes (EDPs)

Entrepreneurial Development Programme is divided into various stages
to fulfil its objectives and following are the stages of EDPs:
i. Pre-Training Phase: During this phase of EDPs, preparation of
conduct is done. This stage of EDP includes: Identification and
 selection of prospective entrepreneurs through various
procedures like conducting psychological test, thematic aptitude
test, and interviews, etc.
Arrangements of necessary equipments and sources to organise
the programme.
 Formation of various committees for the smooth conduct of
training programme.
 Pre-survey of potential entrepreneurial opportunities.
 Devising the course content for the programme.

ii. ii. Training Phase: At this stage, prospective entrepreneurs are

provided with the necessary training to run the enterprise
successfully. During training phase, efforts are made to change
the behaviour and attitude of the entrepreneurs. Focus is on
development of need for high achievement or motivation to
take initiatives and become a successful entrepreneur. This
phase aims at answering questions like; what are his basic traits,
what kind of competencies s/he requires, how s/he behaves in
complicated situations, what kind of knowledge and skills
trainees possess.

iii. iii. Evaluation Phase: Whether the underlying objectives of the

EDP are achieved or not? This evaluation is done at this phase of
entrepreneurial development programme. At this phase,
assessment is done about the entrepreneurial orientation of the
participants. It is evaluated that how far prospective
entrepreneurs are ready to start their own enterprise. During
the follow-up process, review of various components of EDPs is
done.

STARTUP FROM NOTES ASSIGNMENT

CHAP 3
. Introduction
Project management is a special branch of management which is different from
others based on a variety of factors which include the organisation structure,
the process of planning and control, human relations etc. It is basically aimed
at producing an end-product that will result some change for the benefit of an
enterprise.
3. Meaning and Definition of a Project:
The PMBOK (Project Management Body of Knowledge) has defined a project as
“A temporary endeavour undertaken to create a unique product, service, or
result”. It is usually a one-time activity with a well defined set of desired end
results.
. The project is deemed to be completed when methods of improvement has
been achieved. Thus, it is not necessary that the term „project‟ is always
specifically used as project. Take the examples of Lok Sabha/Assembly or
Panchayat elections.
A project is neither a physical objective nor an end result-but one which is to
do with goings. It includes:
 any non- repetitive activity;
 a low-volume, high variety activity;
 a temporary endeavour undertaken to create a unique product or service; 
any activity with a start and finish
;  A unique set of co-ordinated activities, with definite starting and finishing
points, undertaken by an individual or organisation to meet specific
performance objectives within schedule, cost and performance parameters.

Characteristics of a Project:
A project is an economic activity with well defined objectives and having a
specific beginning and an end. It can be defined as a scientifically evolved work
plan devised to achieve a specific objective within a stipulated time. A project
should be well defined and also includes the considerations of various
alternative proposals, investigating, engineering and marketing considerations
etc.
1) Well defined objectives: Every project must have well defined set of
objectives. No project can be without set of objectives. Once these
objectives are accomplished, the project ceases to exist. Needless to say
 that a project is deemed to be completed when the whole things are
completed and performing satisfactorily.

2) Life Span of the Project:

A project has a limited span of time. It cannot go on and forever. The life
of the project may be a few days, a few months or a few years but it
cannot continue endlessly. It has to come an end.
3) Single Entity:
A project is generally treated as one single entity. Instead of
contributions from many different people, it can still be regarded as one
whole thing. The activities may be performed by different people, but all
activities are interrelated and are being performed to serve a common
purpose.
4) Team Work:
A project is single entity and calls for team work. For the successful
implementation of planning and strive towards achievement of common
goal, the activities of different people are integrated and coordinated.
Everyone should feel important and contribute towards the attainment
of common goal.
5) Life Cycle:
Every project has its own life cycle which starts from growing stage,
maturity stage and declining stage. All the stages are closely linked with
each other and provide the logical reasoning for the beginning of next
stage
6) Uniqueness:
Each project has its unique characteristics. It can be exactly similar with
any other project even if the plants are exactly identical. The location of
the project, its infrastructure, human resources and various other
agencies make each project unique.

. Project Life Cycle and its Phases:

Every project has a life span which may be divided into various broad phases.
The attention that a particular project receives is not uniformly distributed
throughout it life span, but varies from phase to phase. It is, therefore,
necessary to study the various phases in the life of a project. Each project has
five stages from start to end.
These stages are:
1. Conception Phase
2. Definition Phase
3. Planning and Organising Phase
4. Implementation Phase
5. Project Clean-up/Termination Phase

Let‟s discuss these phases one by one:

1. Conception Phase:
This is the phase during which the project idea is conceived. The idea may
be generated in the mind of entrepreneur while tackling and solving many
problems of the business. These problems may be non-utilisation of
available funds, plant capacity, technology, man power, expertise or
expectations of the existing customers from the enterprise. Whatever the
situation, the ideas must be put in writing and given some shape before
these can be considered and compared with competitive ideas.

2. Definition Phase:
In the phase the idea generated during the conception phase is developed.
Facts relating to the idea are collected and presented. A document is
produced describing details of the project, necessary information relating
to customers or financial institutions to make up their minds on the project
idea. If this phase is not properly done, it will increase the risk content of
the project. And sometimes hasty decisions may prove disastrous for the
project.

3. Planning and Organising Phase:

Although this phase starts after definition phase, but in practice it starts
with the conception of an idea. Planning, as it is often defined, is making
the decision in advance. If planning is not properly done, it may fatal the
objective of starting a project. During this phase the firm deal with the
action steps to convert its ideas into reality. Some organisations also
prepare „Project Execution Plan‟ for the successful implementation of the
project

4. Implementation Phase:
This is a very important phase of the project where the people actually see
the project first time. Implementation phase for a project involves setting
up of manufacturing facilities. It has a high need for coordination and
control. All techniques of project management are applied for the
successful implementation of the project.
5. Project Clean-up/Termination Phase:
This is a transition phase in which projects actually starts working. This
phase is considered as clean-up because the project personnel have to
perform clean up task like drawings, documents, files, operation and
maintenance manuals, catalogues are given to the clients or the owners of
the project. To satisfy customers, clients and contractors, the experts are to
undertake many test runs

The Project Manager:

In order to make the project successful it must be managed by a competent
project manager. He takes the responsibility for planning, implementing, and
completing the project. He is in direct touch with clients and has to determine
and implement the strategies to meet the requirements of the clients. He is
instrumental in ensuring the satisfaction of clients. The basic job of the project
manager is to visualize the entire project from inception to closure and to have
the ability to ensure that this vision is realized.

Roles and Responsibilities of Project Manager:

Managing projects requires application of knowledge, skills, tools and
techniques to project activities in order to meet the project objectives. The
project manager does this by performing some tasks at various stages of the
project. Each aspect of a project is managed by using the corresponding
knowledge area. These knowledge areas are discussed in detail as follows:
1) Integrating and Managing Project Activities: The project is initiated, planned
and executed in parts. There is need to coordinate different activities of the
project. Project manager is required to introduce integration management
system so that all these activities should be properly managed. He is concerned
with identifying and defining the work of the project and then combining and
integrating with the appropriate processes
2) Defining the Scope of the Project: The main objective of the project
management is the successful implementation of the project. Therefore project
manager has to ensure accomplishment of the project by defining and
controlling various activities of the project. For completing this task he has to
define the scope of the project, which may include the following: o Collect the
requirements of the project from the clients and determine the project scope
accordingly.
3) Project Time Management: The primary motive of the project manager is to
develop and control the project schedule. Every project has a timeline by which
it is expected to be completed. It is the responsibility of the project manager to
complete the project within a scheduled timeline. For achieving this objective
he has to perform various functions which are given as under: o Identify all the
work activities that need to be scheduled to produce the project deliverables. o
4) Estimating and Controlling Cost: It is the duty of the project manager to
estimate the project cost and complete it within the approved budget. It is an
important task of project manager because if the actual expenditure would
increase the budgeted figures, he is answerable to the top management.
5) Ensuring Project Quality: A project manager has to ensure project quality.
Project quality is defined as the degree and standard to which a project
satisfies its objectives and requirements i.e. it must be completed on time and
with all the work in the project scope completed within the planned budget.

CHAP 4
. Introduction and Concept of Project Identification:
Project identification is the first step in setting up an enterprise. Identification
of a suitable project is very crucial decision as the ultimate success of an
entrepreneur depends upon the right selection of the right project. Project
identification is concerned with the collection of data, compilation and analysis
of economic data for the eventual purpose of locating possible opportunities
for investment and development. So project identification is finding out
business opportunities which are feasible and promising.
According to Thomas J.Watson
“Opportunity never knocks on the door. You have to knock on opportunity‟s
door and they are all around” A lot of opportunities exist in the environment;
the only thing we have to do is to grab them. First of all, environment is to be
analyzed for perceiving the opportunities available and after that proper
identification of opportunities, it has to be done in the given environment. The
next step is to select the best from the available. Now the question arises „Why
it is necessary to identify and select an opportunity‟? The simplest way to
answer this question is to appreciate the need for project identification.

Project selection:
After studying profit potential of each project and preparing prioritization list,
entrepreneur will come to know the overall rating of the different project
ideas. The project with maximum rating will be the most feasible in comparison
to other projects. The process involved in selecting a project out of some
prospects is also described as “Zeroing in process”. While selecting a project,
the entrepreneur should keep in mind about the Location, Technology, Size of
investment, Equipment, and Marketing of project.

Project Formulation
Project Formulation Concept
“Project Formulation” is the processes of presenting a project idea in a
form in which it can be subjected to comparative appraisals for the purpose of
determining in definitive terms the priority that should be attached to a project
under sever resource constraints.

Contents of a Project Report

Following are the contents of a project report.
1. General Information
A project report must provide information about the details of the industry to
which the project belongs to. It must give information about the past
experience, present status, problems and future prospects of the industry. It
must give information about the product to be manufactured and the reasons
for selecting the product if the proposed business is a manufacturing unit
2. Executive Summary
A project report must state the objectives of the business and the methods
through which the business can attain success. The overall picture of the
business with regard to capital, operations, methods of functioning and
execution of the business must be stated in the project report. It must mention
the assumptions and the risks generally involved in the business.
3. Organization Summary
The project report should indicate the organization structure and pattern
proposed for the unit. It must state whether the ownership is based on sole
proprietorship, partnership or joint stock company. It must provide information
about the bio data of the promoters including financial soundness. The name,
address, age qualification and experience of the proprietors or promoters of
the proposed business must be stated in the project report.
4. Project Description
A brief description of the project must be stated and must give details about
the following:
 Raw material requirements,
 Target of production,
 Area required for the workshed,
 Power requirements,
 Fuel requirements,
 Water requirements,
If the business is service oriented, then it must state the type of services
rendered to customers. It should state the method of providing service to
customers in detail.
5. Marketing Plan
The project report must clearly state the total expected demand for the
product. It must state the price at which the product can be sold in the market.
It must also mention the strategies to be employed to capture the market. If
any, after sale service is provided that must also be stated in the project. It
6. Project Implementation
Every proposed business unit must draw a time table for the project. It must
indicate the time within the activities involved in establishing the enterprise
can be completed. Implementation schemes show the timetable envisaged for
project preparation and completion.
7. Social responsibility
The proposed units draws inputs from the society. Hence its contribution to the
society in the form of employment, income, exports and infrastructure. The
output of the business must be indicated in the project report.

. Sources of Finance:
It is worth noting that long term financial requirements should be met from
the long term sources, medium term requirements from the medium term
sources and short term requirements from the short term sources. Therefore, a
project manager must maintain proper balance in the long term, medium term
and short term sources of funds. Sometimes, it is difficult to differentiate in the
long term and medium term sources. Certain businesses use the funds
acquired from the short term sources for the purchase of fixed assets. But it is
not considered proper as per the principles of project management because it
decreases the liquidity of business and the problem of prompt payment may
arise. Similarly, if the funds acquired from the long term sources are used for
fulfilling short term requirements, it will be misutilisation of funds as the funds
of business will remain unutilized which will reduce profitability.

 Loans from Financial Institutions:

Generally, the companies raise a large portion of their funds by issuing equity
shares, preference shares and debentures for the achievement of their
objectives including project expansion, modernization, diversification etc. But
due to increase in the cost of projects, the industrial units have to depend on
medium term and long term loans. For the fulfillment of their requirements for
medium term and long term loans a number of financial institutions have been
established at the state level, national and international levels. In India, the
financial institutions established at the national level include Industrial
Development Bank of India (IDBI), Industrial Finance Corporation of India (IFCI),
Industrial Credit and Investment Corporation of India (ICICI), Industrial
Reconstruction Corporation of India, (IRCI), Life Insurance Corporation of India
(LIC), General Insurance Corporation (GIC), Unit trust of India (UTI). Besides, at
the state level State Financial Corporations (SFCs) and State Industrial
Development Corporation (SIDC) have been established.

PROJECT EVALUATION

Any good business practice will have a method for monitoring, reviewing, and
analyzing results, and in project management, that’s where the evaluation step
comes in.
Project evaluation is the systematic assessment of a project’s worth or merit,
usually intending to determine whether it was successful. This can be done
during or after the project is completed, and it involves looking at different
factors such as time, cost, and resources used.

Project Evaluation Methods

There are three points in a project where evaluation is most needed. While you
can evaluate your project at any time, these are points where you should have
the process officially scheduled.

1. Pre-Project Evaluation
In a sense, you’re pre-evaluating your project when you write your project
charter to pitch to the stakeholders. You cannot effectively plan, staff and
control a new project if you’ve first not evaluated it. Pre-project evaluation is
the only sure way you can determine the effectiveness of the project before
executing it.

2. Ongoing Project Evaluation

To make sure your project is proceeding as planned and hitting all of the
scheduling and budget milestones you’ve set, it’s crucial that you constantly
monitor and report on your work in real-time. Only by using project metrics
can you measure the success of your project and whether or not you’re
meeting the project’s goals and objectives.

3. Post-Project Evaluation
Think of this as a postmortem. Post-project evaluation is when you go through
the project’s paperwork, interview the project team and principles and analyze
all relevant data so you can understand what worked and what went wrong.
Only by developing this clear picture can you resolve issues in upcoming
projects.