MODERN BUSINESS

PRACTICES

Prepared by DEEPALI MITTAL (SDJIC)

 UNIT 5:
ENTREPRENEURSHIP
DEVELOPMENT (10%)
 DEFINITION

• Little Oxford Dictionary

“An entrepreneur is a person who
accepts the responsibility to run a
business with all the possibilities of
profit and loss.”
• Peter F. Drucker
“An entrepreneur is always in search of
change, responds to it and derives
benefit by using it as an opportunity.”
 Characteristics of Entrepreneur
1. Entrepreneur sets up a Business Unit
2. Entrepreneur is different from a manager, a
Technician or an Administrator
3. Entrepreneur is an Individual or a Group of
Individuals
4. Entrepreneur bears Risks of Business
5. Entrepreneur co-ordinates Factors of Production
6. Economic Gain is the basic Objectives of the
Entrepreneur
7. Entrepreneur is a Man who Innovates
8. Entrepreneur is a Vehicle of Change
9. Entrepreneurs Activities are Beneficial to the
Society as a Whole
10. Entrepreneur is Energetic
11. Entrepreneur is a Man of Mental Capabilities
12. Entrepreneur possesses Human Relations Ability
 Entrepreneurship Development

• The French Economist J.B. Say is of the opinion

that Entrepreneurship development refers to the
movement of available resources from the low
productivity fields to the higher productivity fields.
 Characteristics of Entrepreneurship
Development
• It is a Process
• It is a Goal-oriented Activity
• It is a Creative Activity
• It includes development elements of Risks
• It aims at Economic Welfare, also
• Entrepreneurship development and Innovation are
closely interconnected
• It requires Proper Management
• It is a Result-oriented Activity
• It is Professional Activity
• A number of alternative forms of Business
Organisation are available
• The qualities of Entrepreneurship and
development of Entrepreneurship can be
improved
• Some Complementary Services are Essential for
the Growth of Entrepreneurship Development
 Needs for Entrepreneurship
Development
1. Life-line of a country for Entrepreneurship
Development
2. For Rapid Industrialization and Attaining Higher
Economic Growth Rate
3. For Reducing Regional Disparities
4. Optimum Utilization of Local Resources
5. Towards a Decentralized Economy
6. For the development of future industrial projects
7. For the eradication of Poverty and
Unemployment
8. For the protection against Industrial Monopoly
9. For the Development of Women
Entrepreneurship
10. For social Benefits
11. For Self Employment
 Process of Entrepreneurship
Development
1. Change or Context
2. Idea of Venture
3. Opportunity
4. Selection & Establishment of new Venture
5. Resources
6. Management
7. Strategy
 Meaning of Start-up
• It is an entrepreneurial venture of company which
is generally newly emerged, fast growing
business to meet needs and demand by
developing and offering an innovative product,
process or service.
 Definition

• An entity shall be considered as a “start-up”.

– Up to 5 years from the date of its
incorporation/registration.
– If its turnover for any of the financial years
has not exceed Rs. 25 crores, and
– It is working towards innovation
development, development or
commercialization of new products, process
or services driven by technology or
intellectual property.
 Role of Start up in Entrepreneurship
Development
1. Adopts innovations
2. Pro-activity into society
3. Competitive dynamics
4. Generates Employment Opportunities
5. Encouragement for research
6. Wealth creation and sharing
7. Helps to expand the business
8. Balanced regional development
THANK YOU!