Entrepreneurship Development Notes

Entrepreneurship Development(A7084) B.
Tech (IT-C) III-I Semester
Unit-1: Entrepreneurship: Importance and role of entrepreneurship, Qualities of an

entrepreneur, Functions of entrepreneur, Theories of entrepreneurship, Stimulants of
entrepreneurship and Barriers to entrepreneurship, Ethics and Social Responsibility, Role of
entrepreneur in economic development.
Entrepreneurship: Entrepreneurship is the ability and readiness to develop, organize and
run a business enterprise, along with any of its uncertainties in order to make a profit. The
most prominent example of entrepreneurship is the starting of new businesses.
 According to Peter F. Drucker “Entrepreneurship is defined as a systematic innovation,
which consists in the purposeful and organized search for changes, and it is the
systematic analysis of the opportunities such changes might offer for economic and
social innovation”.
 According to Ricardo Cantillon “Entrepreneurship entails bearing the risk of buying
at a certain price and selling at uncertain prices.”
 In the words of Joseph A. Schumpeter “Entrepreneurship is any kind of innovative
function that could have a bearing on the welfare of an entrepreneur.”
 According to Robert K. Lamb “Entrepreneurship is that form of social decision
making performed by economic innovators.”
 As per A.H.Cole “Entrepreneurship is the purposeful activity of an individual or a group
of associated individuals, undertaken to initiate, maintain or aggrandize profit by
production or distribution of economic goods and services.”
Concept of Entrepreneur: The word ‘entrepreneur’ is derived from the French verb
enterprendre. It means “to undertake.” In the early 16th century, the Frenchmen who
organised and led military expeditions were referred to as “entrepreneurs.” Around 1700
A.D., the term was used for architects and contractors of public works.
Definition of Entrepreneur: The entrepreneur is defined as someone who has the
ability and desire to establish, administer and succeed in a startup venture along with risk
entitled to it, to make profits. The best example of entrepreneurship is the starting of a new
business venture. The entrepreneurs are often known as a source of new ideas or innovators,
and bring new ideas in the market by replacing old with a new invention.
According to Schumpeter, “Entrepreneurs are business leaders and not simple owners of
capital. They are men of vision, drive and talent, who spot out opportunities and
promptly grasp them for exploitation”.
The Entrepreneur is a change agent that acts as an industrialist and undertakes the risk
associated with forming the business for commercial use. An entrepreneur has an unusual
foresight to identify the potential demand for the goods and services.
Y S N Murthy, VCE Page 1 of 97

Entrepreneurship Development(A7084) B. Tech (IT-C) III-I Semester
An entrepreneur who starts new business comes with an innovative idea of making a
particular product or unique services to the society in order to serve them better or to create
ease in their lifestyle.
Characteristics of Entrepreneurship: Entrepreneurship is characterized by the
following features:
1. Ability to take a risk: Starting any new venture involves a considerable amount of
failure risk. Therefore, an entrepreneur needs to be courageous and able to evaluate and
take risks, which is an essential part of being an entrepreneur.
2. Innovation: It should be highly innovative to generate new ideas, start a company and
earn profits out of it. Change can be the launching of a new product that is new to the
market or a process that does the same thing but in a more efficient and economical way.
3. Visionary and Leadership quality: To be successful, the entrepreneur should
have a clear vision of his new venture. However, to turn the idea into reality, a lot of
resources and employees are required. Here, leadership quality is paramount because
leaders impart and guide their employees towards the right path of success.
4. Open-Minded: In a business, every circumstance can be an opportunity and used for
the benefit of a company. For example, Paytm recognised the gravity of demonetization
and acknowledged the need for online transactions would be more, so it utilised the
situation and expanded massively during this time.
5. Flexible: An entrepreneur should be flexible and open to change according to the
situation. To be on the top, a businessperson should be equipped to embrace change in a
product and service, as and when needed.
6. Know your Product: A company owner should know the product offerings and also
be aware of the latest trend in the market. It is essential to know if the available product
or service meets the demands of the current market, or whether it is time to tweak it a
little. Being able to be accountable and then alter as needed is a vital part of
entrepreneurship.
Importance of Entrepreneurship: Entrepreneurship holds immense significance in
fostering economic development, acting as a driving force for industrialisation and growth.
According to Joseph Schumpeter, a nation’s economic progress is intrinsically tied to its
capacity for innovation, which, in turn, hinges on the distribution of entrepreneurial talent
within its population. While technical advancements are essential, their transformation into
economic development relies on the entrepreneurial acumen of individuals who effectively

organize and utilize capital, labour, and technology. Experts emphasize that economic
development doesn’t occur spontaneously based solely on favourable economic conditions;
it necessitates entrepreneurial activity as a catalyst. The abundance of activities seen in
prosperous countries can be attributed to the presence of enterprising individuals
Entrepreneurs play a pivotal role in creating new enterprises that invigorate the economy and
revitalizing established businesses, which collectively form the economic framework. Their
impact on economic development manifests in several ways, as they initiate and sustain
growth by bringing innovative ideas to life, creating job opportunities, and fostering
competition, all of which contribute to a thriving economy. Entrepreneurs initiate and sustain
the process of economic development in the following ways:
1. Creation of Employment: Entrepreneurship generates employment. It provides an
entry-level job, required for gaining experience and training for unskilled workers.
2. Innovation: It is the hub of innovation that provides new product ventures, market,
technology and quality of goods, etc., and increase the standard of living of people.
3. Impact on Society and Community Development: A society becomes greater
if the employment base is large and diversified. It brings about changes in society and
promotes facilities like higher expenditure on education, better sanitation, fewer slums, a
higher level of homeownership. Therefore, entrepreneurship assists the organisation
towards a more stable and high quality of community life.
4. Increase Standard of Living: Entrepreneurship helps to improve the standard of
living of a person by increasing the income. The standard of living means, increase in the
consumption of various goods and services by a household for a particular period.
5. Supports research and development: New products and services need to be
researched and tested before launching in the market. Therefore, an entrepreneur also
dispenses finance for research and development with research institutions and
universities. This promotes research, general construction, and development in the
economy
6. Capital Formation: Entrepreneurs effectively mobilize idle savings from the public
by issuing industrial securities. This results in the productive utilization of national
resources, increasing the rate of capital formation, which is essential for rapid economic
progress. They are instrumental in wealth creation.
7. Improvement in Per Capita Income: Entrepreneurs identify and capitalize on
opportunities, converting latent and idle resources like land, labour, and capital into

national income and wealth through the production of goods and services. This boosts
the Net National Product and per capita income, important indicators of economic
growth.
8. Generation of Employment: Entrepreneurs contribute to employment both directly
and indirectly. Through self-employment and the establishment of various business units,
they offer job opportunities to millions, helping to alleviate unemployment issues
9. Balanced Regional Development: Entrepreneurs, both in the public and private
sectors, play a crucial role in reducing regional disparities in economic development.
They establish industries in underdeveloped areas, taking advantage of concessions and
subsidies offered by the government. This has put lesser-known regions on the map of
economic development.
10. Economic Independence: Entrepreneurship is vital for national self-reliance. By
manufacturing indigenous substitutes for previously imported products and promoting
exports, entrepreneurs reduce dependence on foreign countries. This ensures economic
independence, which is crucial alongside political independence.
11. Backward and Forward Linkages: Entrepreneurial initiatives set off a chain
reaction with several backward and forward linkages. For instance, the establishment of a
steel plant leads to the growth of ancillary units and increased demand for raw materials
like iron ore and coal. This expansion positively impacts various industries, creating a
self-sustaining ecosystem.
Role of Entrepreneurship: The following are the roles of entrepreneurship:
1. Initiating and leading business activities: Entrepreneurs have the ability to
identify business opportunities, launch new businesses, and grow existing ones. They are
also responsible for providing direction and vision to their teams in order to ensure
success.
2. Allocating employees’ duties: Entrepreneurs must be able to allocate tasks
efficiently among team members in order to maximize efficiency and minimize costs.
This requires being able to prioritize tasks, delegate responsibilities, and motivate staff
members in order to drive results.
3. Forecasting business changes: By anticipating future trends and industry shifts,
entrepreneurs can stay ahead of the competition and create strategies that will help them
succeed even in a changing market.

4. Creating jobs: Through their businesses, entrepreneurs create employment

opportunities for other people which helps stimulate economic growth. They must be
able to manage their workforce in order to ensure that they are achieving the desired
results.
5. Identifying business opportunities: Entrepreneurs must always be looking for
new opportunities to grow their businesses and create new products or services. They
must be able to recognize potential markets, trends, and technologies in order to
capitalize on them in a timely manner.
6. Creating and sharing the wealth: By growing their businesses, entrepreneurs
generate wealth which can then be shared with employees, investors, and local
communities. This helps improve living standards while creating more jobs and
investments back into the local economy.
7. Improving the standard of living: Through job creation and innovations,
entrepreneurs help improve the quality of life for people in their local communities by
providing better infrastructure and services.
8. Taking up and reducing business risk: Entrepreneurs must be willing to take
risks in order to pursue their business goals while being aware of the potential rewards
and consequences. They must also strive to limit any potential risks by maintaining
financial discipline within their businesses.
9. Building strategic partnerships: By forging meaningful relationships with
customers, suppliers, partners, and other stakeholders, entrepreneurs can create synergies
that lead to increased profitability and success.
10. Digitalizing business operations: In today’s digital world, entrepreneurs must be
able to leverage technology in order to remain competitive. This includes leveraging the
latest tools and platforms in order to streamline processes and increase efficiency.
11. Globalization: Entrepreneurship has been a driving force behind globalization. It has
facilitated the expansion of businesses into international markets, contributing to
increased trade and cultural exchange.
12. Education and Knowledge Transfer: Entrepreneurs often share their
experiences and knowledge with others through mentorship, networking, and educational
programs. This helps foster a culture of entrepreneurship and encourages future
generations to pursue entrepreneurial endeavours.

Qualities of an entrepreneur: Successful entrepreneurs often possess a unique set of

qualities and characteristics that enable them to identify opportunities, take calculated risks,
and build and grow successful businesses. While there is no one-size-fits-all formula for
entrepreneurship, here are some key qualities commonly found in entrepreneurs:
1. Vision: Entrepreneurs typically have a clear and compelling vision of what they want to
achieve. They can see opportunities and possibilities that others may overlook and are
driven by their long-term goals.
2. Passion: Passion is a driving force for entrepreneurs. They are deeply passionate about
their ideas, products, or services, which fuels their determination and commitment, even in
the face of challenges.
3. Risk Tolerance: Entrepreneurs are willing to take calculated risks. They understand
that entrepreneurship involves uncertainty and are prepared to face setbacks and failures
along the way.
4. Resilience: Resilience is crucial in entrepreneurship. Entrepreneurs bounce back from
failures, learn from their mistakes, and persevere through difficult times. They see
setbacks as opportunities for growth.
5. Adaptability: The business landscape is constantly changing, and successful
entrepreneurs are adaptable. They can pivot their strategies, embrace change, and adjust to
new circumstances and market conditions.
6. Creativity: Entrepreneurs are often creative thinkers. They come up with innovative
ideas, solutions, and approaches to problems. Creativity allows them to stand out in
competitive markets.
7. Problem-Solving Skills: Entrepreneurs are adept at identifying and solving problems.
They are resourceful and find practical solutions to the challenges they encounter.
8. Leadership: Entrepreneurial ventures require effective leadership. Entrepreneurs can
inspire and motivate their teams, set a clear direction, and make critical decisions.
9. Networking: Building a network of contacts and relationships is essential in
entrepreneurship. Entrepreneurs often connect with mentors, advisors, and potential
partners to gain insights and support for their ventures.
10. Self-Discipline: Entrepreneurship often involves setting one's schedule and managing
time effectively. Entrepreneurs must have the self-discipline to stay organized, set
priorities, and follow through on tasks.

11. Market Awareness: Successful entrepreneurs have a deep understanding of their

target markets. They conduct market research, stay updated on industry trends, and are
customer-focused.
12. Financial Acumen: Entrepreneurship involves managing finances effectively.
Entrepreneurs need to understand budgeting, cash flow management, and financial
planning to ensure the sustainability of their ventures.
13. Decision-Making: Entrepreneurs make critical decisions daily. They are capable of
making informed and timely decisions, even when facing uncertainty.
14. Customer-Centric Approach: Entrepreneurs prioritize customer satisfaction and
understand the importance of delivering value to their customers. They listen to feedback
and use it to improve their products or services.
15. Persistence: Entrepreneurship can be challenging, and success often takes time.
Entrepreneurs have the persistence and determination to stay the course and not give up
easily.
16. Ethical Values: Many successful entrepreneurs adhere to strong ethical values and
principles in their business dealings. They build trust with customers, employees, and
partners.
Functions of an Entrepreneur: The responsibility of an entrepreneur spans the entire
organization. To become a successful business owner, he must perform his functions
effectively. These functions are discussed in brief below:

1. Entrepreneurial Functions: The following are the functions:
a) Innovation: An entrepreneur constantly innovates new and existing products. They

continuously update their organization by upgrading technology and trends. It
includes activities like:
Example: E-bikes and E-cars are great examples of innovation in the transportation
sector.
b) Risk-taking: Risk is choosing one among various alternatives, the result of which
is unpredictable. Risk bearing is the pre-requisite function of an entrepreneur.
However, he tries to mitigate the risk to become successful. This is because they can
only earn huge profits by bearing greater risk.
Example: Drew Houston, who owns Dropbox, took a massive risk by not selling his
business to Apple. However, things turned out in his favour, and Dropbox became a
billionaire company.
c) Decision-making: Another function of an entrepreneur is taking decisions for the
organization. The major ones include:
Example: Decisions regarding Mergers, Acquisitions, Expansion and Contraction of
the business.
2. Promotional Functions: The following are the functions:
a) Investigation of an Idea: An entrepreneur investigates the market needs and

wants and then discovers a unique business idea. He not only finds one such idea but
a number of ideas.
Example: Ola and Uber are amazing examples of this entrepreneurial function.
b) Detailed Investigation: After finding a bunch of business ideas, entrepreneurs
critically analyze each one of them. Also, they forecast the business idea’s future
potential and growth possibilities. On completing the detailed investigation, he
proceeds with the most suitable one.
Example: Before launching any product, the board conduct a detailed market survey.
c) Assembling Resources: Next function is to assemble the required resources to
implement the selected idea. Entrepreneur arranges everything from facility location
to installation of machinery and manpower.
Example: Recruitment and Material sourcing are prevalent examples of this function.

d) Financing the proposition: An entrepreneur ensures short- and long-term

finance sufficiency. He defines the capital structure of the organization. Also, it
identifies the sources from where the funds are to be raised and utilized.
Example: The decision of the entrepreneur to raise funds by diluting ownership
(Shares) or borrowing funds (Debentures).
3. Managerial Functions: The following are the functions:
a) Planning: On the managerial front, the entrepreneur sets the organizational goals.
And to accomplish these goals, they formulate short and long-term plans.
Example: Recently, Reliance separated its financial segment. Ambani did so to
achieve the aim of becoming India’s largest NBFC.
b) Organizing: The next function is the organization of resources to implement the
formulated plan. It includes all the resources like Manpower, Funds and Physical
Facilities. It effectively coordinates all the factors of production.
Example: NIKE has a unique organizational structure. It operates in a flat
organizational structure. The departments have the liberty to work independently
while maintaining quality and consistency.
c) Directing: An entrepreneur is a leader who leads their enterprise towards success.
He directs his team and guides them to achieve the preset organizational goals. Also,
he communicates his vision, mission and long-term goals with his team. Besides, he
allocates the duties and responsibilities with a clearly defined reporting relationship.
Example: Assigning roles and responsibilities considering the employee’s skills.
d) Staffing: Next managerial function is Staffing. Besides recruitment, the
entrepreneurs perform the following activities:
Example: Layoffs in the corporate world are making headlines lately. It is a part of
human resource planning in enterprises.
e) Controlling: Here, entrepreneurs practice control over the organization. He ensures
that the implementation of plans is as per the plan or not. In case of deviations, the
entrepreneur identifies and fixes them. It involves activities like:
Example: Comparing the quantity produced with the targets set in the production
plan.
4. Commercial Functions: The following are the functions:

a) Production: Entrepreneurs carry out production to produce goods. For this, they
make use of the factors of production. The type and size of the business will
determine its scale.
Example: Entrepreneurs operating on a small-scale offering handcraft produce
products on their own. Whereas, similar types of products are manufactured in the
plants at a large scale.
b) Marketing: Here, the entrepreneur tries to build a unique image of his products. He
uses various tools and strategies to differentiate the products in the market.
Example: Apple has positioned itself as a range of premium phones and accessories
in the electronics market.
c) Personnel: Yet another crucial function of an entrepreneur is managing the vital
resource in the organization, i.e., Human Resources. It involves activities like:
d) Accounting: Entrepreneurs are keen to know their financial positions while
conducting a business. For this purpose, they maintain accounts of all the transactions.
Example: The financial statements prepared at the year’s end reflect the current
financial position.
e) Finance: It is the blood of an enterprise. Thus, raising and arranging finance
becomes one of the important functions of an entrepreneur. It involves the following
activities:
Example: Tracking the performance by calculating various ratios like PR Ratio,
Operating Efficiency Ratio etc.
Theories of entrepreneurship: Entrepreneurship is a multifaceted field that has been
studied extensively, leading to the development of various theories and frameworks that help
explain the entrepreneurial process and behavior. Here are some prominent theories of
entrepreneurship:
1. Schumpeter's Innovation Theory: Developed by Austrian economist Joseph
Schumpeter, this theory emphasizes the role of innovation in entrepreneurship.
Schumpeter believed that entrepreneurs are individuals who introduce new products,
processes, or technologies, disrupting existing markets and driving economic growth
through a process he called "creative destruction."
Example: Apple Inc.; Explanation: Apple is known for its innovative products such as
the iPhone, iPad, and Macintosh computers. These innovations disrupted existing
markets and created new ones, exemplifying Schumpeter's creative destruction concept.

2. Opportunity-Based Theory: This theory posits that entrepreneurship arises when

individuals identify and exploit opportunities in the market. It focuses on the recognition
and pursuit of opportunities as a central driver of entrepreneurial behavior. Shane and
Venkataraman's Opportunity Theory is a well-known example.
Example: Airbnb; Explanation: Airbnb founders recognized the opportunity to create a
platform for people to rent out their homes and spare rooms to travellers. They
capitalized on this opportunity to disrupt the traditional hospitality industry.
3. Resource-Based Theory: This theory suggests that entrepreneurship is driven by
the possession and allocation of resources, both tangible and intangible. Entrepreneurs
leverage their unique set of resources to create and sustain competitive advantages.
Barney's Resource-Based View (RBV) is a seminal work in this area.
Example: Coca-Cola; Explanation: Coca-Cola's competitive advantage lies in its brand,
distribution network, and secret recipe. These intangible and tangible resources have
allowed the company to maintain a strong market position for over a century.
4. Psychological Trait Theory: This theory suggests that certain personality traits,
such as risk-taking propensity, self-confidence, and need for achievement, are common
among successful entrepreneurs. Proponents of this theory argue that individuals with
these traits are more likely to become entrepreneurs.
Example: Elon Musk (SpaceX, Tesla); Explanation: Elon Musk is known for his risk-
taking nature and self-confidence. These traits have driven him to start companies like
SpaceX and Tesla, both of which have transformed their respective industries.
5. Social Network Theory: This theory emphasizes the importance of social networks
and relationships in entrepreneurship. It suggests that entrepreneurs benefit from their
social connections, which can provide access to resources, information, and support.
Granovetter's "Strength of Weak Ties" concept is relevant here.
Example: LinkedIn; Explanation: LinkedIn is a professional social network that
leverages users' connections for job opportunities, networking, and business
development. It showcases the importance of social connections in the entrepreneurial
world.
6. Cultural and Institutional Theories: These theories explore how cultural norms,
values, and institutional frameworks influence entrepreneurial behavior. The Institutional
Theory, for example, highlights how formal and informal rules shape entrepreneurship in
different societies.

Example: Alibaba Group (China); Explanation: Alibaba, founded by Jack Ma, operates
within the unique cultural and institutional framework of China. It navigated China's e-
commerce market, shaped by government regulations and cultural preferences, to
become a global giant.
7. Effectuation Theory: Developed by Saras Sarasvathy, this theory focuses on how
entrepreneurs make decisions and take action under conditions of uncertainty.
Effectuation emphasizes the use of existing resources, flexible planning, and a focus on
affordable loss rather than expected returns.
Example: Dropbox Explanation: Drew Houston, the co-founder of Dropbox, initially
created the file-sharing service to solve his own problem. He used his existing resources
and collaborative partnerships to develop the product, embodying the principles of
effectuation.
8. Behavioural Theory: Behavioural theories of entrepreneurship examine the
cognitive and emotional aspects of entrepreneurial decision-making. They consider how
biases, heuristics, and motions influence the choices made by entrepreneurs.
Example: Netflix; Explanation: Netflix's transition from a DVD rental service to a
streaming platform was influenced by behavioural factors. The company's leaders
recognized the shift in consumer behavior and made strategic decisions accordingly.
9. Economic Theory: Traditional economic theories, such as neoclassical economics,
also offer insights into entrepreneurship by examining factors like supply and demand,
competition, and market structures. These theories provide a foundation for
understanding the economic aspects of entrepreneurship.
Example: Uber; Explanation: Uber's business model is grounded in economic principles
such as supply and demand. The platform matches ride providers with passengers
efficiently, demonstrating the application of economic theory in entrepreneurship.
10. Evolutionary Theory: This theory views entrepreneurship as an evolutionary
process where firms and industries adapt and change over time in response to
environmental pressures. It draws from concepts in biology, such as natural selection and
adaptation.
Example: Nokia; Explanation: Nokia, once a dominant player in the mobile phone
industry, struggled to adapt to the evolutionary changes in the smartphone market. This
example illustrates how firms must evolve to survive in dynamic environments.
Stimulants of entrepreneurship: Stimulants of entrepreneurship are factors or
conditions that encourage and promote the creation and growth of entrepreneurial ventures.

These stimulants play a crucial role in fostering an entrepreneurial ecosystem and

encouraging individuals to become entrepreneurs. Here are some key stimulants of
entrepreneurship:
1. Access to Capital: Adequate access to funding, including venture capital, angel
investors, and small business loans, provides entrepreneurs with the financial resources
necessary to start and grow their businesses.
Example: Flipkart, India's leading e-commerce platform, attracted substantial
investments from venture capital firms like Tiger Global and Accel Partners to fuel its
growth.
2. Supportive Regulatory Environment: Entrepreneurship thrives in environments
with clear and business-friendly regulations. This includes simplified business
registration processes, tax incentives, and regulations that promote innovation.
Example: The "Startup India" initiative by the Indian government provides tax benefits,
easier compliance, and faster patent examination for startups, creating a more favorable
regulatory environment.
3. Education and Training: Entrepreneurship education and training programs can
equip aspiring entrepreneurs with the skills and knowledge needed to launch and manage
successful ventures. This includes formal education at universities and specialized
entrepreneurship training programs.
Example: The Indian Institute of Technology (IIT) system offers entrepreneurship
programs and incubators like IIT Bombay's Society for Innovation and Entrepreneurship
(SINE).
4. Innovation Ecosystem: Regions with a strong culture of innovation, research
institutions, and technology hubs can stimulate entrepreneurship by providing access to
cutting-edge research, technologies, and talent.
Example: Bengaluru (Bangalore) is known as the "Silicon Valley of India" due to its
concentration of technology companies, research institutions, and startup incubators.
5. Mentorship and Networking: Mentorship and networking opportunities connect
entrepreneurs with experienced mentors, advisors, and peers who can provide guidance,
support, and valuable contacts.
Example: TiE (The Indus Entrepreneurs) is a global organization with chapters in India
that provides mentorship and networking opportunities for entrepreneurs.

6. Market Demand: Identifying market demand for new products or services can
stimulate entrepreneurship. Entrepreneurs often spot opportunities to address unmet
needs or create innovative solutions.
Example: Zomato, a popular food delivery and restaurant discovery platform, identified
the growing demand for food delivery services in India's urban areas.
7. Government Initiatives: Government-sponsored programs, grants, and incentives
aimed at fostering entrepreneurship can be significant stimulants. These programs may
include tax credits, subsidies, and grants for startups.
Example: Atal Innovation Mission (AIM) in India supports innovation and
entrepreneurship through programs like the Atal Incubation Centers (AICs).
8. Access to Technology: Easy access to technology, including the internet and digital
tools, lowers the barriers to entry for many types of businesses, encouraging
entrepreneurship in various industries.
Example: Atal Innovation Mission (AIM) in India supports innovation and
entrepreneurship through programs like the Atal Incubation Centers (AICs).
9. Cultural Support: Societal attitudes toward risk-taking, failure, and entrepreneurship
can influence individuals' willingness to start businesses. Cultures that celebrate
entrepreneurship and view failure as a learning experience often stimulate
entrepreneurial activity.
Example: India has a culture of entrepreneurship, with family-owned businesses often
passed down through generations, exemplified by companies like the Tata Group.
10. Infrastructure and Logistics: Reliable infrastructure, including transportation,
logistics, and communication networks, makes it easier for businesses to operate
efficiently and access markets.
Example: The Adani Group has invested in infrastructure development, including ports,
transportation, and energy, facilitating trade and economic activity.
11. Globalization: In a globalized world, entrepreneurs can tap into international markets
more easily, leading to increased opportunities for cross-border entrepreneurship.
Example: Infosys, one of India's leading IT services companies, has a global presence,
providing services to clients worldwide.
12. Industry Clusters: Geographic concentrations of related businesses and industries,
known as industry clusters, can stimulate entrepreneurship by providing access to
specialized resources, suppliers, and a skilled workforce.

Example: Infosys, one of India's leading IT services companies, has a global presence,
providing services to clients worldwide.
13. Diversity and Inclusion: Encouraging diversity and inclusion in entrepreneurship
can lead to a wider range of perspectives, ideas, and opportunities, ultimately stimulating
innovation and entrepreneurial activity.
Example: Nykaa, an Indian beauty and cosmetics retailer, offers a diverse range of
products catering to various skin tones and preferences.
14. Social and Environmental Trends: Entrepreneurship driven by social and
environmental concerns, such as sustainability and social impact, is on the rise.
Awareness of these issues can stimulate the creation of businesses that address these
challenges.
Example: Ola Electric, a subsidiary of Ola Cabs, is focused on electric mobility
solutions to address environmental concerns and promote sustainability.
15. Economic Conditions: Economic downturns can lead to an increase in
entrepreneurship as individuals seek alternative sources of income and identify new
business opportunities.
Example: During economic downturns, individuals in India often turn to
entrepreneurship to create small businesses, such as local food delivery services, to
generate income.
Barriers to Entrepreneurship: The problems or barriers to entrepreneurship can be
categorised as: The barriers are classified into following types:
1. Environmental Barriers: The following are the important environmental barriers to
entrepreneurship:
a) Non-Availability of Raw Material: Non-availability of raw materials
especially during peak season is one of the obstacles inhibiting entrepreneurship. This
leads to competition for raw material.
b) Lack of Skilled Labour: This is the most important resource in any organization.
Unfortunately, desired manpower may not be available in an organization. This is
either due to the lack of skilled labour or due to lack of committed or loyal employees
in the organization.
c) Lack of Good Machinery: Good machines are required for the production of
goods, because of rapid technological developments, machines become obsolete very

soon. Small entrepreneurs find it difficult to get large amount of cash for installing
modern machinery.
d) Lack of Infrastructure: Lack of infrastructure facilities is a major barrier to the
growth of entrepreneurship particularly in under developed and developing
economies. The infrastructural facilities include land and building, adequate and
cheap power, proper transportation, water and drainage facilities etc.
e) Lack of Fund: There are various methods by which an entrepreneur arranges for
funds, e.g., own savings, borrowings from friends and relatives, banks and other
financial institutions. Many people do not enter into entrepreneurial activities because
of lack of funds.
f) Other Environmental Barriers: Lack of business education, Lack of
motivation from government, corruption in administration, high cost of production
etc. are the other environmental barriers that inhibit the growth of entrepreneurship in
underdeveloped countries.
2. Personal Barriers: Personal barrier are those barriers that are caused by emotional
blocks of an individual. Some of the personal barriers may be outlined as below:
a) Unwillingness to Invest Money: Even though people have money, still they do
not come in entrepreneurship. They are not willing to take the risk of investing money
in business.
b) Lack of Confidence: Many people thing that they lack what it takes to become an
entrepreneur. They feel that they could not master all the skills. Thus, most people are
reluctant to become entrepreneurs.
c) Lack of Motivation: When an individual starts a new venture, he is filled with
enthusiasm and drive to achieve success. But when he faces the challenges of real
business or bears loss, or his ideas don’t work, he loses interest or motivation.
d) Lack of Patience: The desire to achieve success in the first attempt or to become
rich very soon is the prime motivating factor of modern youth. When such dreams do
not come true, they lose interest. This gradually drives to fail in business.
e) Inability to Dream: Entrepreneurs, who are short on vision or become satisfied
with what they achieve, sometimes lose interest in further expansion/growth of
business.
3. Social Barriers: The social attitude inhibits many people even from thinking of
starting a business. The important social barriers are as follows.

a) Low Status: The society things that entrepreneurs are the people who exploit the
society. Thus, the attitude of the society towards entrepreneurs is not positive.
b) Custom and Tradition of People: Most people want a real job. Even parents
who are entrepreneurs wouldn’t like their children to be entrepreneurs. Thus, lack of
support from society and family hinders the growth of entrepreneurs.
Ethics and Social Responsibility: An enterprise must earn profits for its own survival,
for expansion, for bearing the risks and finally for the prestige of its management. But profit
cannot be the sole objective of the entrepreneur. It is a means and not an end. No enterprise
can last long unless along with earning profits, it continues to fulfil its obligations to the
society. The ultimate objective of every enterprise has to be the good of the people. Business
must be run by the people through the people and for the people. An entrepreneur must take
risks with his or her own capital in order to sell and deliver products and services while
expending greater energy than the average businessperson in order to innovate.
An entrepreneur is very much linked with society. Since any venture owes its existence to
society, it has to function under the overall control and discipline of the society. Any
business, which is injurious to any segment of the society, can neither be tolerated nor
allowed to continue. Every enterprise is required to perform and satisfy certain obligations
which it owes to the society and the performance of which is essential for its own survival
and the well-being of the society. It is the obligation of an enterprise which it owes to the
different segments of the society that determine its objectives. Besides earning profit, an
entrepreneur has to satisfy the requirements of various other groups of people.
Obligations of the Entrepreneur to the Different Segments of the Society:
Possible organizational stake holders are illustrated in figure5.3. Balancing the demands of
these various stakeholders is, as you can well imagine, a difficult process because they often
have a wide range of needs and conflicting expectations.
a) Employees: Employees need security of job, higher wages, full employment, better
conditions of work and opportunities for self-development and promotion. They also
desire their work itself to be rewarding and to contribute something good to the
society in general. Management, as a part of its social responsibilities, is expected to
provide for their social security, welfare, grievances settlement machinery and sharing
of excess profits.
Responsibility Towards Employees:
 Fair wages and salaries

 Adequate Basic Facilities like safe drinking water, electricity, canteen,

hygienic toilets.
 Skill development programmes.
 Good and safe working environment.
 Retirement benefits and pension schemes
 Collective bargaining
 Insurance cover
 Medical facilities
b) Stockholders: An entrepreneur must provide safe, fair adequate and stable long-
run rate of return and steady capital appreciation to the shareholders for their
investments. It must also provide regular, accurate and adequate information about the
working of the company.
Responsibility Towards Shareholders:
 A fair return on investment.
 Safety of invested capital.
 Regular and complete information about the performance and progress of the
company.
 Regular Payment if dividend
c) Suppliers: Dealings with the suppliers should be based on integrity, impartiality
and courtesy. Terms and conditions regarding delivery of goods and payment of
prices must be reasonably fair. Producers may make available to the suppliers the
benefits of their information and research so as to promote indigenous growth or for
the improvement of the quality of their products.
Responsibility Towards Suppliers, Creditors:
 Maintain healthy and co-operative inter-business relationship between different
businesses.
 Provide accurate and relevant information to creditors.
 Payment of price of materials on time.
 Prompt payment of interest on borrowed funds.
 Producing original documents for credit processing.
d) Customers: In the words of Henry Ford, an entrepreneur must provide, “those
goods and services which the society needs at a price which the society can afford to
pay.” Entrepreneurial ventures must meet the requirements of the customers of

different classes, tastes and with different purchasing power at the right time, place,
and price and in right quality. An entrepreneur should act as a friend and guide to the
customer. He must try to protect consumers’ interest at all costs. He must guard
against adulteration, poor quality, lack of service and courtesy to the consumer,
misleading and dishonest advertisement, underweighting, supply of stale goods, etc.
Responsibility Towards Customers:
 Charge reasonable price for products or services.
 Supply of right quality of goods in right quantity.
 No use of manipulated or false advertisements.
 Avoid unfair selling practices.
 Fair guarantee of product
e) Government: Entrepreneurs must abide by the laws of the country in their true
spirit. The must conduct their affairs as may cause the minimum possible social
damage such as air or water pollution. They must help in the proper implementation
of all social improvement policies adopted by the Government. They must pay taxes
honestly and promptly.
Responsibility towards Government:
 Payment of corporate tax in correct amount with no manipulation of profit
figures.
 To avoid corrupting public servants by offering bribe.
 To encourage fair trade practices.
 To avoid monopoly practices.
f) Trade Associations and Competitors: An entrepreneur should develop
healthy inter-business relationships with fellow-entrepreneurs. He must adopt fair
trade practices regarding prices, quality, terms and conditions of sale and after-sales
service. The policy of under-cutting or restricted trade practices should be avoided.
An entrepreneur must patronise business associations to ensure development of
healthy business practices.
g) Community: The entrepreneurs should manage their business with such
competence and skill that it inspires confidence and pride in the mind of the people.
They must encourage democratic institutions and assist national integration.
Enterprise, on the whole, should act on the ideas of social justice without
discrimination of any kind. Business must set high standards of morality and put in all

efforts to minimise social damage. It must help in bringing about a cultural, social and
economic revolution in the society and lead to the economic growth of the backward
regions of the world.
Responsibility Towards Public in General:
 Help the weaker section of the society.
 Creation of job opportunities.
 Improvement in living standards.
 Building of basic infrastructure like roads, sewerage.
 Health and educational development schemes.
 To make best use of society’s resources for their welfare.
Role of entrepreneurs in Economic Development: An Entrepreneur plays a vital
role in economic growth of a country. He collects and exploits the natural and human
resources and then through innovation he utilizes these resources in an optimal manner. He
provides or generates lot of employment amongst people and bring stability in economy.
1. Organising of Society’s Productive Resources: The important role of
entrepreneurship is the optimum uses of productive resources of the country for the
benefits of the people. James Burna observes that an entrepreneur is the organiser of
society’s productive resources. While explaining the contribution of entrepreneurs Prof.
Karvar writes, the services of an entrepreneur are such which a paid manager cannot
perform. In the absence of entrepreneurs, all the productive resources remain idle.
2. Production of New Articles: Entrepreneur performs important role in producing
and presenting new products in the market. He innovates and identifies the possibility of
producing new products on the basis of innovation.
3. Development of New Production Technique: Entrepreneur uses the new
methods of production techniques, and brings in the market varieties of products at
reasonable prices. He makes efforts to bring improvement in the present technology of
production.
4. Promotes Capital Formation: In a developing economy, the entrepreneur only can
promote capital formation by investing in industrial activities. The entrepreneurial
activity is the base for the development of capital market in a country like India.
5. Contributes towards Creation of Industrial Climate: Entrepreneur plays
important role in building industrial climate in the country. He motivates other
entrepreneurs also to invest in industrial activities.

6. Contributes towards Providing Employment: Entrepreneur introduces new

products and new techniques. This results into the development, new industries, leading
to opportunities for direct and indirect employment to the people.
7. Contributes towards Increasing Standards of Living of People: The
entrepreneurs have development and diversified new techniques and new products
according to the needs of the time. This has given opportunity for the people to consume
different kinds of items of their choice. The uses of substitute products have increased.
This way, the enterprise news has contributed towards increasing the standard of living
of the people.
8. Ambassador of Social Changes: Entrepreneurs are ambassadors of social changes
in an economy. New inventions cultivated scientific outlook among the people leaving
their traditional beliefs and attitudes.
9. Removal of Regional Disparities: Entrepreneurs contribute towards removal of
geographical imbalances and economic backwardness. Really speaking an entrepreneur
bears the risk in setting up industry in backward areas of the country in is efforts for
balanced development of the country.
Unit-2: Institutional Support: Role of Government: Role of IDBI, SIDBI, SIDO, NIESBUD,
DIC, Entrepreneurship Development Institute, T-Hub (Telangana Hub).
Institutional Support: Institutional support for entrepreneurship refers to the various

programs, policies, organizations, and resources provided by government agencies, non-profit
organizations, and educational institutions to foster and promote entrepreneurship. These
initiatives aim to create a conducive environment for aspiring entrepreneurs, startups, and
small businesses to thrive. Here are some key aspects of institutional support for
entrepreneurship:

a) Access to Funding: Governments and financial institutions often provide funding

opportunities, including grants, loans, and venture capital, to help entrepreneurs secure
the necessary capital to start and grow their businesses.
b) Incubators and Accelerators: Institutions like universities, research centers, and
private organizations often establish incubators and accelerators to offer mentorship,
resources, and workspace to early-stage startups. These programs help entrepreneurs
refine their business ideas and accelerate growth.
c) Business Support Services: Government agencies and non-profits offer various
business support services, including business counseling, legal advice, and accounting
services, to assist entrepreneurs in navigating the complexities of starting and running a
business.
d) Training and Education: Educational institutions and entrepreneurship centers
provide training programs, workshops, and courses to equip aspiring entrepreneurs with
the necessary skills and knowledge to succeed in business.
e) Regulatory Assistance: Government agencies may simplify regulatory processes
and offer guidance to entrepreneurs on compliance with business regulations, licenses,
and permits.
f) Networking Opportunities: Institutions organize networking events, conferences,
and meetups that connect entrepreneurs with mentors, investors, and peers. These
networks facilitate collaboration and knowledge-sharing.
g) Research and Innovation Support: Research institutions often collaborate with
startups to advance technological innovation. They may provide access to research
facilities, patents, and expert knowledge.
h) Access to Markets: Institutions may assist entrepreneurs in accessing domestic and
international markets by providing export support, trade missions, and market research.
i) Intellectual Property Protection: Support may be offered to help entrepreneurs
protect their intellectual property through patents, trademarks, and copyrights.
j) Incentives and Tax Benefits: Governments may provide tax incentives, subsidies,
and grants to encourage entrepreneurship, particularly in specific sectors like technology
or clean energy.
k) Ecosystem Building: Institutions play a role in building and nurturing
entrepreneurial ecosystems by fostering collaboration among startups, investors, and
academia. They help create an environment where entrepreneurship can thrive.

l) Diversity and Inclusion Initiatives: Institutional support may include programs

and initiatives aimed at promoting diversity and inclusion in entrepreneurship, ensuring
that underrepresented groups have equal access to resources and opportunities.
m) Monitoring and Evaluation: Institutions may conduct research and evaluation to
assess the impact of their entrepreneurship support programs and make necessary
improvements.
n) Public-Private Partnerships: Collaboration between government agencies, private
organizations, and non-profits often results in more comprehensive and effective support
for entrepreneurs.
Role of government in supporting entrepreneurship: The various types of help
extended by different support agencies of the government.
1. Credit Support: Of all the elements that go into a business, credit is perhaps the most
crucial. The best of plans can come to naught if adequate finance is not available at the
right time. MSEs need credit support not only for running the enterprise and operational
requirements but also for diversification, modernization/up gradation of facilities, capacity
expansion, etc. Government of India recognized the need for a focused credit policy for
MSEs in the early days of promotion of MSEs.
2. Marketing Support: In today’s world, marketing is much more than mere selling.
Small enterprises can hardly match the advertising might or distribution reach of a large
corporation. In India, small units sell best in limited or neighbourhood markets or when
they are meeting a low volume specialized demand which no large player can effectively
cater to. Increasingly, now, the endeavour is to build the marketing activity of small units
around their competitive advantage, i.e. products which are labour intensive, items which
cater to niche markets, low-volume high- margin products, sub-assembly tasks,
outsourcing jobs, and ancillarization
3. Entrepreneurship Development: Beginning with psychological de-freezing and
achievement motivation techniques, knowledge is imparted to participants on the scope
and potential of different items, which can be manufactured in a small scale industry, its
technical feasibility, economic viability and commercial prospects as a self-employment
venture. Efforts are directed not only to inform but to enable them to determine and
identify all these themselves. Thus, they are led towards an entrepreneurial decision of
product browsing and identification.

4. Technology Upgradation: Small enterprises are regarded for their labour intensity
and the capability to work with local resources. In the past, this has often led to less
emphasis on technology. Run-of-the-mill coupled with functional packaging and
inadequate, finishing has at times led to small sector products being labelled as being sub-
standard. This has a cascading impact on competitiveness. In the Indian context, a desire
to cut initial costs led to hand-me-down machines being purchased. As small enterprises
realized the need to link up with large ones, they are having a re-look at technology
options which would improve productivity, effectiveness, and competitiveness.
5. Technical Training: Various agencies provide technical training to SSIs for
upgrading the technical skills of their employees in specific areas. This is imperative to
ensure that SSIs produce quality products which can compete well against the products of
the large industrial enterprises and multinational corporations.
6. Industrial Infrastructure: Government agencies have provided the following types
of industrial infrastructure to SSIs:
a) Export Processing Zones (EPZ): EPZ are special areas designated for
providing export production or the processing of manufactured products at low cost.
Each EPZ has certain basic infrastructural facilities available like developed land
sites, standard designated factory buildings, roads, power, water, and drainage.
b) Industrial Parks: The new focus in the specialized industrial clusters, both for the
domestic and the export market, is on the development of industrial or technology
parks. In this initiative, the government has created electronics hardware technology
parks, software technology parks, biotech parks, etc.
c) Integrated Infrastructural Development Centers (IIDCs): IIDCs aim at
augmenting infrastructural facilities in the rural and backward areas with a special
emphasis upon the linkage between agriculture and industry. The DODCs have
proximity to the rail head and road links, availability of water, telecommunications
facilities, etc. for SSI and tiny units.
IDBI: IDBI was established in July 1964 under an Act of Parliament, the Industrial
Development Bank of India Act, 1964. It was created as a wholly-owned subsidiary of the
Reserve Bank of India (RBI) with the primary objective of promoting industrial and
infrastructure development in the country.
Role of IDBI in supporting Entrepreneurship: IDBI's role in supporting
entrepreneurship is critical as it provides entrepreneurs and businesses with access to

essential financial resources, advisory services, and support. By financing projects, promoting
innovation, and facilitating access to capital, IDBI contributes significantly to economic
growth, job creation, and the overall development of the nation. Its focus on key sectors and
support for small-scale industries and MSMEs make it a vital institution for fostering
entrepreneurship and industrial development in India.
Composition structure of IDBI:
 Board of Directors: Comprising a chairman, managing director, and several directors.
 Management Team: Including senior executives, managers, and staff.
 Branches and Offices: Operating across India with a network of branches and regional
offices.
 Workforce: Can employ several thousand people.
Objectives of IDBI: The objectives are:
a) Promoting Industrial Development: IDBI's primary objective is to promote and
develop industries in India. It aims to accelerate the pace of industrialization and
economic growth.
b) Fostering Entrepreneurship: IDBI plays a pivotal role in fostering
entrepreneurship by providing financial and developmental support to businesses,
especially in the industrial and infrastructure sectors.
c) Facilitating Access to Capital: One of IDBI's key goals is to facilitate access to
capital for entrepreneurs and businesses by offering various financial products and
services tailored to their specific needs.
d) Supporting Infrastructure Development: The bank actively supports the
development of crucial infrastructure projects in sectors such as power, transportation,
telecommunications, and more.
Functions of IDBI: The functions are:
a) Project Financing: IDBI provides long-term financing for industrial and
infrastructure projects. It assesses project proposals, conducts feasibility studies, and
offers term loans to eligible borrowers.
b) Working Capital Assistance: IDBI extends working capital finance to businesses
to meet their short-term operational needs, ensuring they have the necessary liquidity to
manage day-to-day operations effectively.

c) Refinancing: The bank acts as a refinancing institution, refinancing loans extended by

other financial institutions and banks. This helps promote industrial lending across the
country.
d) Promotion of Small Industries: IDBI plays a crucial role in promoting small-scale
industries by providing financial assistance and support to micro, small, and medium-
sized enterprises (MSMEs).
e) Corporate Finance: IDBI offers corporate finance services such as underwriting of
shares and debentures, syndication of loans, and merchant banking services to support
businesses in their financial endeavours.
f) Investment Banking: The bank provides investment banking services, including
advisory services for mergers and acquisitions, corporate restructuring, and assisting
companies in raising capital through IPOs and other means.
g) Resource Mobilization: IDBI mobilizes resources from various sources, both
domestic and international, to fund industrial and infrastructure projects and initiatives.
h) Foreign Investment Promotion: IDBI facilitates foreign investment in India by
providing financial and advisory support to foreign investors and businesses looking to
establish a presence in the country.
i) Project Appraisal: IDBI conducts comprehensive project appraisal to assess the
feasibility and viability of projects seeking financial assistance, ensuring that funds are
allocated to sustainable ventures
j) Policy Formulation: The bank actively participates in policy formulation related to
industrial and infrastructure development. It collaborates with government agencies to
shape policies that support entrepreneurship and economic growth.
k) Risk Management: IDBI employs risk management practices to assess and mitigate
risks associated with its lending and investment activities, ensuring the prudence of its
financial support.
l) Social Responsibility: IDBI engages in corporate social responsibility (CSR)
initiatives by supporting social and community development programs, contributing to
the well-being of society and communities where it operates.
SIDBI: The Small Industries Development Bank of India (SIDBI) is a financial institution
in India that plays a crucial role in promoting and supporting entrepreneurship, especially in
the small and medium-sized enterprises (SMEs) sector. Here's an overview of SIDBI's
inception, objectives, functions, and its role in entrepreneurship:

Inception of SIBDI: SIDBI was established on April 2, 1990, through an act of the
Indian Parliament. It was created to address the specific financial and developmental needs of
SMEs in India. SIDBI was set up as a wholly-owned subsidiary of the Industrial
Development Bank of India (IDBI) initially but later became an independent institution.
Role in SIDBI in supporting Entrepreneurship: SIDBI plays a pivotal role in
supporting entrepreneurship in India, particularly in the SME sector. It provides
entrepreneurs with access to essential financial resources, advisory services, and
developmental programs. By offering various financial products, credit guarantees, and
venture capital support, SIDBI fosters entrepreneurship, innovation, and job creation. Its
focus on promoting SMEs aligns with the government's vision of inclusive economic growth
and self-employment opportunities for a diverse range of entrepreneurs.
Composition structure of SIDBI:
 Board of Directors: Comprising a chairman, managing director, and several directors.
 Management Team: Including senior executives, managers, and staff.
 Branches and Offices: Operating across India with a network of branches and regional
offices.
 Workforce: Can employ several thousand people.
Objectives of SIDBI: The following are the objectives
a) Promoting Entrepreneurship: One of the primary objectives of SIDBI is to
promote entrepreneurship by providing financial and developmental support to SMEs
and startups.
b) Supporting Small and Medium Enterprises (SMEs): SIDBI focuses on the
development and growth of SMEs, recognizing their critical role in the Indian economy,
employment generation, and entrepreneurship.
c) Facilitating Access to Capital: SIDBI's goal is to facilitate access to financial
resources, including loans and credit, for SMEs and startups, helping them overcome
financial barriers.
d) Promoting Innovation: The institution encourages innovation and technology
adoption among SMEs by providing financial assistance to ventures that prioritize
research and development.
Functions of SIDBI: The following are the functions:

a) Financial Support: SIDBI provides various financial products and services,

including loans, credit facilities, and equity support, to SMEs and startups. It offers both
term loans and working capital assistance.
b) Refinancing: Similar to IDBI, SIDBI acts as a refinancing institution, refinancing
loans extended by other financial institutions and banks to SMEs. This helps promote
SME lending across the country.
c) Venture Capital: SIDBI manages a venture capital arm that invests in innovative and
high-growth potential startups. It supports entrepreneurship by providing equity
financing to early-stage ventures.
d) Credit Guarantee Schemes: SIDBI offers credit guarantee schemes that enable
SMEs to access credit without providing collateral or with reduced collateral
requirements, making it easier for them to secure loans.
e) Microfinance Initiatives: SIDBI supports microfinance institutions (MFIs) that
provide financial services to micro-enterprises and self-help groups. This empowers
grassroots entrepreneurship and self-employment.
f) Entrepreneurship Development Programs: SIDBI conducts entrepreneurship
development programs, workshops, and training sessions to equip aspiring entrepreneurs
with the necessary skills and knowledge to run successful businesses.
g) Technology Upgradation: SIDBI promotes technology upgradation among SMEs
by providing financial assistance for modernization and adoption of new technologies.
h) Cluster Development: The institution supports the development of industrial
clusters and networks, which can help SMEs access shared resources, technology, and
markets.
SIDO: The Small Industries Development Organization (SIDO) is an agency in India
dedicated to promoting and supporting entrepreneurship, particularly in the small and micro-
enterprise sector. Here's an overview of SIDO's inception, objectives, functions, and its role
in entrepreneurship:
Inception Of SIDO: SIDO was established in 1954 under the Ministry of Small Scale
Industries (now the Ministry of Micro, Small, and Medium Enterprises or MSMEs) by the
Government of India. Its creation was a response to the need for focused support and
development of small-scale industries in the country.
Role in of SIDO in supporting Entrepreneurship: SIDO plays a critical role in
promoting entrepreneurship and supporting small and micro-enterprises in India. By offering

a range of services, including training, technical assistance, market access, and credit
facilitation, SIDO empowers entrepreneurs to establish and grow their businesses. Its focus
on skill development, technology adoption, and policy advocacy aligns with the government's
efforts to promote entrepreneurship, create employment opportunities, and foster economic
growth, particularly in the MSME sector.
Composition structure of SIDO:
 Director/Head: Typically led by a director or head.
 Regional Offices: May have regional offices in different states or districts.
 Workforce: Employs professionals, consultants, and support staff.
Objectives of SIDO: The following are the objectives:
a) Promoting Entrepreneurship: The primary objective of SIDO is to promote
entrepreneurship by encouraging the establishment of small-scale enterprises and
providing support for their growth.
b) Supporting Small and Micro-Enterprises: SIDO focuses on the
development and growth of small and micro-enterprises, recognizing their vital role in
employment generation, poverty alleviation, and entrepreneurship.
c) Facilitating Skill Development: SIDO aims to enhance the skills and
capabilities of entrepreneurs through training programs, skill development initiatives,
and technical education.
Functions of SIDO: The following are the functions:
a) Entrepreneurship Development: SIDO offers entrepreneurship development
programs, workshops, and training to aspiring and existing entrepreneurs. These
programs equip individuals with the necessary skills and knowledge to start and
manage businesses.
b) Technical and Managerial Assistance: SIDO provides technical and
managerial assistance to small and micro-enterprises. This includes support in areas
such as technology adoption, quality improvement, and production efficiency.
c) Market Access: The organization helps entrepreneurs access markets by
facilitating market linkages, organizing exhibitions, and promoting the marketing of
products produced by small enterprises.
d) Infrastructure Development: SIDO supports the development of industrial
infrastructure and industrial estates, which provide a conducive environment for
small-scale industries to operate

e) Credit Facilitation: SIDO assists entrepreneurs in accessing credit and finance by

collaborating with financial institutions and banks. It helps entrepreneurs secure loans
and credit facilities for their businesses.
f) Cluster Development: The organization promotes the development of industrial
clusters, which can lead to economies of scale, shared resources, and enhanced
competitiveness for small enterprises.
g) Technology Upgradation: SIDO encourages the adoption of modern technology
and machinery by small enterprises. It provides guidance on technology selection and
implementation.
h) Research and Development: The organization conducts research and
development activities to identify opportunities and challenges for small-scale
industries. It also facilitates technology innovation.
i) Policy Advocacy: SIDO actively participates in policy formulation related to
small-scale industries. It collaborates with government agencies to advocate for
policies that support entrepreneurship and economic growth.
NIESBUD: The National Institute for Entrepreneurship and Small Business Development
(NIESBUD) is an autonomous institution under the Ministry of Micro, Small and Medium
Enterprises (MSME), Government of India. It focuses on promoting entrepreneurship and the
development of small and medium-sized enterprises (SMEs) in India. Here's an overview of
NIESBUD's inception, objectives, functions, and its role in entrepreneurship:
Inception of NIESBUD: NIESBUD was established in 1983 with its headquarters in
Noida, Uttar Pradesh, India. It was founded to provide training, research, and consultancy
services to foster entrepreneurship, skill development, and SME growth in the country.
Role in of NIESBUD in supporting Entrepreneurship: NIESBUD plays a vital
role in promoting entrepreneurship and SME development in India. It serves as a training
hub, knowledge resource, and facilitator for aspiring and existing entrepreneurs. Its programs,
consultancy services, and policy advocacy efforts contribute to the growth of the
entrepreneurship ecosystem in the country. By enhancing the skills and knowledge of
entrepreneurs and supporting the development of SMEs, NIESBUD helps create job
opportunities, stimulate economic growth, and foster innovation and competitiveness in the
MSME sector.
Composition structure of NIESBUD:
 Director/Head: Led by a director or head.

 Faculty and Instructors: Employs a team of faculty, trainers, and instructors.

 Training Centers: Operates training centers across India.
 Research Wing: May have researchers and policy experts.
 Workforce: Size varies based on the scope of activities.
Objectives of NIESBUD: The following are the objectives:

a) Promoting Entrepreneurship: The primary objective of NIESBUD is to promote
entrepreneurship by providing training, support, and resources to aspiring and existing
entrepreneurs.
b) Capacity Building: NIESBUD aims to enhance the skills and capabilities of
entrepreneurs and professionals, enabling them to become successful business leaders
and managers.
c) SME Development: The institution focuses on the development and growth of small
and medium-sized enterprises (SMEs) by providing them with the necessary knowledge
and support.
d) Research and Policy Advocacy: NIESBUD conducts research and advocates for
policies that support entrepreneurship and SME development. It contributes to shaping
policies related to MSMEs.
Functions of NIESBUD: The following are the functions:
a) Entrepreneurship Development Programs: NIESBUD offers a variety of
entrepreneurship development programs and training courses designed to equip
individuals with the skills and knowledge needed to start and manage businesses
effectively.
b) Skill Development: The institute conducts skill development programs and
workshops to enhance the technical and managerial capabilities of entrepreneurs and
professionals.
c) Consultancy Services: NIESBUD provides consultancy and advisory services to
entrepreneurs and SMEs, offering guidance on various aspects of business management,
including marketing, finance, and technology adoption.
d) Research and Publications: The institution conducts research on entrepreneurship
and SME-related issues, producing publications, reports, and case studies to disseminate
knowledge and best practices.

e) Incubation Support: NIESBUD supports the establishment of business incubators

and entrepreneurship development centers to nurture startups and innovative ventures.
f) Policy Advocacy: The institute advocates for policies and measures that promote
entrepreneurship, ease of doing business, and the growth of SMEs at the national and
state levels.
g) Networking: NIESBUD fosters networking and collaboration among entrepreneurs,
industry associations, government agencies, and other stakeholders in the
entrepreneurship ecosystem.
DIC: District Industries Centre (DIC) is a government agency in India responsible for
promoting and supporting entrepreneurship at the district level. Here's an overview of DIC's
Inception of DIC: DICs were established as part of India's industrial policy framework in
the late 1970s and early 1980s. They were created to facilitate the development of small-scale
industries and promote entrepreneurship at the district level. Each district in India typically
has its own DIC.
Role in of DIC in supporting Entrepreneurship: DICs play a crucial role in
fostering entrepreneurship and SME development at the grassroots level. They serve as a
local point of contact for aspiring and existing entrepreneurs, providing them with
information, support, and access to resources. DICs contribute to job creation, economic
development, and the growth of SMEs within their respective districts. By offering a range of
services and support mechanisms, they enable individuals to translate their entrepreneurial
aspirations into viable businesses that benefit the local economy.
Composition structure of DIC:
 General Manager/Director: Led by a general manager or director.
 Entrepreneurship Development Officers: Employed to work directly with
entrepreneurs.
 Incubation Units: Some DICs may have dedicated units.
 Cluster Development Units: If present, may vary in size.
Objectives of DIC: The following are the objectives:
a) Promoting Entrepreneurship: The primary objective of DIC is to promote
entrepreneurship by facilitating the establishment and growth of small-scale industries in
the district.

b) Supporting SMEs: DICs focus on the development and support of small and
medium-sized enterprises (SMEs), recognizing their significant contribution to
employment generation and economic growth.
c) Economic Development: DICs aim to contribute to the economic development of
the district by fostering entrepreneurship, creating employment opportunities, and
encouraging industrial growth.
Functions of DIC: The following are the functions:
a) Entrepreneurship Development: DICs provide guidance and support to aspiring
entrepreneurs in the district. They offer information, training, and advisory services to
help individuals start and manage businesses.
b) Facilitating Access to Resources: DICs help entrepreneurs access essential
resources, including finance, land, and infrastructure. They assist in obtaining necessary
licenses and approvals.
c) Credit Facilitation: DICs collaborate with banks and financial institutions to help
entrepreneurs secure loans and credit for their business ventures. They assist in preparing
project reports and obtaining financial assistance.
d) Skill Development: DICs organize skill development programs, workshops, and
training sessions to enhance the technical and managerial skills of entrepreneurs.
e) Technology Transfer: DICs facilitate the transfer of technology to small-scale
industries by providing information on available technologies and assistance in adopting
new processes and machinery.
f) Cluster Development: DICs promote the development of industrial clusters within
the district. Clusters create a synergistic environment where businesses can share
resources and benefit from proximity.
g) Market Linkages: DICs help entrepreneurs access markets by facilitating marketing
support, participation in exhibitions and trade fairs, and connecting them with potential
buyers.
h) Policy Advocacy: DICs work with government authorities to advocate for policies
and measures that support entrepreneurship, ease of doing business, and the growth of
SMEs at the district level.
i) Monitoring and Evaluation: DICs monitor the progress of small-scale industries
in the district, evaluate their performance, and provide feedback and support for
improvement.

EDI: The Entrepreneurship Development Institute of India (EDII) is an autonomous

institution in India dedicated to promoting entrepreneurship and supporting the growth of
startups and small and medium-sized enterprises (SMEs). Here's an overview of EDII's
Inception of EDI: EDII was established in 1983 in Ahmedabad, Gujarat, India. It was
founded as a national resource organization with the support of various institutions, including
the Industrial Development Bank of India (IDBI), the State Bank of India (SBI), and the
Government of Gujarat. Its creation was in response to the need for specialized training,
research, and development in entrepreneurship and SME management.
Role in of EDI supporting Entrepreneurship: EDII plays a pivotal role in
promoting entrepreneurship and SME development in India. It serves as a hub for
entrepreneurship education, research, and support. By offering a diverse range of programs,
incubation support, and consultancy services, EDII empowers entrepreneurs to transform
their ideas into successful businesses. Its focus on skill development, innovation, and policy
advocacy aligns with the government's efforts to foster entrepreneurship, create job
opportunities, and drive economic growth. EDII's impact extends beyond India, as it actively
contributes to the global discourse on entrepreneurship and SME development.
Composition Structure of EDI:
 Director/Head: Led by a director or head.
 Faculty and Trainers: Employs faculty, trainers, and instructors.
 Incubation Center: Typically has dedicated staff for incubation support.
 Research and Publication Unit: May have researchers and publication staff.
 Workforce: Size depends on program offerings and activities.
Objectives of EDI: The following are the objectives:
a) Promoting Entrepreneurship: The primary objective of EDII is to promote
entrepreneurship by providing training, support, and guidance to aspiring and existing
entrepreneurs.
b) Supporting SMEs: EDII focuses on the development and growth of SMEs,
recognizing their importance in job creation, economic development, and fostering
innovation.

c) Research and Development: The institution conducts research and development

activities in the field of entrepreneurship, SME management, and related areas to
generate knowledge and best practices.
d) Policy Advocacy: EDII advocates for policies and measures that support
entrepreneurship, ease of doing business, and the growth of SMEs at the national and
state levels.
Functions of EDI: The following are the functions.
a) Entrepreneurship Development Programs: EDII offers a wide range of
entrepreneurship development programs and training courses for aspiring and existing
entrepreneurs. These programs cover various aspects of business management, including
business planning, finance, marketing, and innovation.
b) Incubation and Start-up Support: The institute provides incubation support for
start-ups, offering infrastructure, mentorship, access to networks, and other resources to
help them grow and succeed.
c) Skill Development: EDII conducts skill development programs and workshops to
enhance the technical and managerial skills of entrepreneurs, ensuring they have the
capabilities needed to run successful businesses.
d) Consultancy Services: The institution offers consultancy and advisory services to
entrepreneurs and SMEs, providing guidance on various aspects of business
management, strategy, and growth.
e) Research and Publications: EDII conducts research and publishes reports, papers,
and case studies on entrepreneurship and SME-related topics. It disseminates knowledge
to a wide audience.
f) Policy Research and Advocacy: EDII engages in policy research and advocacy
efforts to influence policies and regulations in favour of entrepreneurship and SME
development.
g) Networking and Collaboration: The institute fosters networking and
collaboration among entrepreneurs, industry associations, government agencies, and
other stakeholders in the entrepreneurship ecosystem.
h) International Partnerships: EDII collaborates with international organizations and
institutions to exchange knowledge, best practices, and expertise in entrepreneurship
development.

T-Hub(Telangana Hub): T-Hub, short for Telangana Hub, is one of India's leading
startup incubators and innovation centers. Located in Hyderabad, Telangana, T-Hub was
launched in 2015 with the support of the Telangana government, academic institutions,
industry partners, and other stakeholders. Its inception and role in entrepreneurship are as
follows:
Inception of T-Hub: T-Hub was inaugurated on November 5, 2015, by the Telangana
government with the aim of fostering innovation, entrepreneurship, and technology-driven
startups in the state. It was established to create a vibrant ecosystem for startups and to
position Hyderabad as a hub for innovation and technology in India.
Role of T-Hub in Supporting Entrepreneurship: T-Hub plays a crucial role in
fostering entrepreneurship and innovation in Telangana and across India. It provides startups
with the necessary resources, mentorship, and networking opportunities to transform their
ideas into viable businesses. T-Hub's focus on technology-driven startups aligns with India's
aspirations to become a global technology and innovation hub. The incubator's role goes
beyond providing physical infrastructure; it actively nurtures startups, connects them with
potential investors and corporate partners, and creates an environment that encourages
collaboration and innovation. T-Hub has become a flagship institution in India's startup
ecosystem, contributing significantly to the growth of entrepreneurship and the development
of technology-driven ventures in the country.
Composition Structure of T-Hub:
 CEO/Managing Director: Led by a CEO or managing director.
 Incubation Team: Employs professionals for incubation support.
 Startup Support: Staff involved in mentorship and networking.
 Corporate Partnerships: Teams collaborating with corporations.
 Program Managers: Staff managing various programs and events.
Objectives of T-Hub: The following are the objectives:
a) Promoting Entrepreneurship: T-Hub's primary objective is to promote and
support entrepreneurship by providing a nurturing environment for startups and early-
stage companies.
b) Fostering Innovation: T-Hub focuses on fostering innovation by encouraging
collaboration between startups, industry, academia, and government agencies.
c) Supporting Technology Startups: The incubator aims to support technology-
driven startups and help them scale their operations and reach global markets.

Functions of T-Hub: The following are the functions:

a) Incubation: T-Hub provides physical infrastructure, co-working spaces, and
incubation support to early-stage startups. It offers startups access to office spaces,
meeting rooms, and other facilities.
b) Mentorship: The incubator connects startups with experienced mentors, industry
experts, and advisors who provide guidance and support in various aspects of business
development.
c) Access to Funding: T-Hub helps startups access funding by connecting them with
investors, venture capitalists, and angel investors. It also conducts pitch sessions and
investor meetings.
d) Startup Programs: T-Hub organizes various startup programs, bootcamps,
hackathons, and accelerator programs to help startups refine their business models and
product offerings.
e) Corporate Partnerships: T-Hub facilitates collaborations between startups and
established corporations to encourage innovation, research, and product development.
f) Global Outreach: T-Hub has partnerships and collaborations with international
organizations, governments, and institutions to promote global exposure and market
access for startups.
g) Innovation Ecosystem: T-Hub actively contributes to building an innovation
ecosystem in Telangana by collaborating with academic institutions, industry
associations, and government agencies.
h) Technology Innovation: T-Hub focuses on technology innovation by supporting
startups in emerging sectors such as information technology, biotechnology, artificial
intelligence, and more.

Unit-3: Women Entrepreneurship: Role & Importance, Functions of women entrepreneur,

Profile of Indian Women Entrepreneur, Problems of Women Entrepreneurs, Women
Entrepreneurship Development in India and in Foreign Countries.
Concept of Women entrepreneurs: They may be defined as a woman or a group of

women who initiate, organise and run a business concern. Women entrepreneurs are those
women who think of a business enterprise, initiate it, organise and combine factors of
production, operate the enterprise and undertake risks and handle economic uncertainty
involved in running it.
Definition of Women Entrepreneurs by Different Authors:
 Schumpeter – “Women entrepreneurs are those women who innovate, initiate or adopt a
business activity”.
 Government of India – “A woman entrepreneur is defined as an enterprise owned and
controlled by a woman having a minimum financial interest of 51 percent of the capital
and giving at least 51 percent of the employment generated in the enterprise to women.”
 Frederick Harbison – “Any women or group of women which innovates, initiates or
adopts an economic activity may be called women entrepreneurship”.
 In short, women entrepreneurs are those women who think of a business enterprise,
initiate it, organise and combine factors of production, operate the enterprise and
undertake risks and handle economic uncertainty involved in running it.
 According to Government of India, “A Woman enterprise is the one owned and
controlled by a woman having minimum financial interest of 51% of the capital and
giving at least minimum 51% of generated employment to women”.
Women Entrepreneurship: Women entrepreneurship refers to the process of creating,
managing, and developing a business enterprise by a woman or group of women. It involves
the identification of opportunities, developing and executing business strategies, managing
financial resources, and taking calculated risks to achieve business objectives.
Women Entrepreneurship implies a process in which a female initiate, lead, own and organize
an enterprise or industry and give employment to others and also contribute in improving the
standard of living of their families. When a woman legally owns and operates an enterprise,
holding a minimum of 51% share capital and employs more than 51 percent of women, is a
women-led enterprise and the initiative is women entrepreneurship.
Role of women entrepreneurship: It has been recognized that a Women Entrepreneur
is vital and also, untamed way to achieve economic growth from the last few decades.

Women Entrepreneurs have shifted from the orthodox style of business to a non-traditional
approach that increased their knowledge and education related to the higher activities
associated with the business.
1. Job Creation: Women-owned businesses contribute to employment generation,
providing job opportunities for themselves and others in the community. This reduces
unemployment rates and boosts economic growth.
Example: A woman in India starts a small-scale textile manufacturing business,
employing local women and contributing to job creation in her community.
2. Economic Growth: Women entrepreneurs stimulate economic growth by starting and
growing businesses, contributing to GDP, and driving innovation and competition in
various sectors.
3. Empowerment: Entrepreneurship empowers women by giving them financial
independence, decision-making authority, and control over their economic resources.
This empowerment can lead to greater gender equality and improved social status.
Example: A woman-owned restaurant adapts to changing consumer preferences during
the COVID-19 pandemic by offering online ordering and delivery services, showcasing
resilience in the face of adversity.
4. Innovation: Women entrepreneurs bring fresh perspectives and innovative ideas to the
business world. Their diverse experiences and viewpoints often lead to the development
of new products, services, and business models.
5. Community Development: Women entrepreneurs often invest in their local
communities. They support local businesses, contribute to community development
initiatives, and play active roles in philanthropy.
Example: A women-led social enterprise in Latin America produces handmade crafts,
reinvesting profits into local schools and healthcare facilities.
6. Role Models: Successful women entrepreneurs serve as role models for others,
inspiring more women and girls to pursue entrepreneurship as a viable career path.
Example: A successful woman entrepreneur becomes a mentor and advocate for
aspiring female business owners, inspiring others to pursue entrepreneurship.

7. Social Impact: Many women entrepreneurs focus on social and environmental issues,
starting businesses that address critical challenges such as education, healthcare, poverty
alleviation, and sustainability.
Example: A woman entrepreneur in Southeast Asia establishes a healthcare startup that
delivers affordable medical services to underserved rural areas, improving access to
healthcare.
8. Diversity and Inclusion: Women entrepreneurs promote diversity and inclusion in
the business world. Their presence in leadership positions contributes to a more diverse
and balanced workforce.
Example: A woman CEO of a tech company actively promotes diversity and gender
equality within her organization, resulting in a more inclusive workplace culture.
9. Global Competitiveness: Women-led businesses enhance a country's global
competitiveness by fostering innovation, diversifying industries, and expanding market
reach.
Example: A female founder of an e-commerce platform expands her business to
international markets, contributing to her country's global competitiveness.
10. Networking and Collaboration: Women entrepreneurs often engage in
networking and collaboration, leading to the formation of support networks, mentorship
opportunities, and partnerships that benefit their businesses and the broader
entrepreneurial community.
Example: Women entrepreneurs form industry-specific networks and collaborate on
joint ventures, enhancing their businesses' reach and impact.
11. Family and Work-Life Balance: Women entrepreneurs may prioritize work-life
balance and flexible work arrangements, influencing business practices and contributing
to a healthier work culture.
Example: A woman entrepreneur pioneers flexible work arrangements and family-
friendly policies in her company, setting a positive example for work-life balance
12. Education and Skill Development: Women entrepreneurs actively participate in
entrepreneurship education and skill development programs, helping to enhance their
knowledge and expertise in business management.
Example: A woman entrepreneur sponsors vocational training programs for women in
her community, equipping them with valuable skills for entrepreneurship.

13. Policy Advocacy: Women entrepreneurs advocate for policies and measures that
support gender equality, access to funding, and the removal of barriers to
entrepreneurship.
14. Rural and Micro-Enterprise Development: Women entrepreneurs often play a
vital role in rural and micro-enterprise development, especially in areas with limited
economic opportunities.
15. Resilience and Adaptability: Women entrepreneurs exhibit resilience and
adaptability, overcoming challenges and setbacks to achieve their business goals.
Example: A woman-owned restaurant adapts to changing consumer preferences during
the COVID-19 pandemic by offering online ordering and delivery services, showcasing
resilience in the face of adversity.
Importance of women entrepreneurship: The importance of women entrepreneurs
cannot be overstated, as their contributions have far-reaching effects on economic
development, gender equality, and societal progress. Here are some key reasons highlighting
the importance of women entrepreneurs:
1. Innovation and Creativity: Women entrepreneurs bring fresh ideas and innovative
solutions to the market. Their unique perspectives and experiences drive creativity and
lead to the development of new products and services.
2. Market Expansion: Women entrepreneurs tap into underserved markets and
consumer segments, expanding market reach and boosting economic opportunities for
both businesses and consumers.
3. Social Impact: Many women-led businesses prioritize social impact, addressing
critical issues such as education, healthcare, environment, and poverty alleviation. Their
ventures contribute to the betterment of society.
4. Diverse Leadership Styles: Women often bring different leadership styles,
emphasizing collaboration, empathy, and inclusive decision-making. This diversity
enriches corporate cultures and enhances workplace dynamics.

5. Empowering Women: Women entrepreneurs serve as role models and mentors,

inspiring other women to pursue their entrepreneurial dreams. Their success stories
empower women to break barriers and achieve their full potential.
6. Sustainable Practices: Women entrepreneurs are often champions of sustainable
and ethical business practices, contributing to environmental conservation and
responsible corporate citizenship.
7. Community Engagement: Women entrepreneurs frequently engage with their
communities, supporting local initiatives, and contributing to the overall well-being of
their neighbourhoods.
8. Global Competitiveness: Women-owned businesses expand into international
markets, boosting a nation's global competitiveness and helping it tap into the global
economy.
9. Balancing Work and Family: Women entrepreneurs often excel in managing
work-life balance, setting an example for flexible work arrangements and family-friendly
policies.
10. Policy Advocacy: Women entrepreneurs actively advocate for policies that promote
gender equality, access to financing, and support for women-owned businesses, leading
to a more favorable business environment.
11. Enhancing Diversity in Leadership: Women entrepreneurs break the glass
ceiling in leadership roles, contributing to greater diversity at the highest levels of
organizations.
12. Long-term Vision: Women entrepreneurs often focus on sustainable, long-term
growth, contributing to the stability and prosperity of their businesses and communities.
13. Cultural and Social Change: Women entrepreneurs challenge cultural and societal
norms, paving the way for more inclusive and gender-equal societies.
14.Driving Entrepreneurship Ecosystems: Women entrepreneurs participate
actively in building and strengthening entrepreneurship ecosystems, fostering
collaboration and supporting startups.
15. Economic Resilience: Women entrepreneurs contribute to economic resilience by
diversifying the business landscape. Their businesses are often in various sectors, making
the economy less vulnerable to fluctuations in specific industries.
Functions of women entrepreneurs: Women entrepreneurs perform a variety of
functions within their businesses and the broader entrepreneurial ecosystem. These functions

are essential for the growth and success of their ventures. Here are some key functions of
women entrepreneurs:
1. Business Concept Development: Women entrepreneurs conceptualize and
develop business ideas, identifying opportunities in the market and assessing their
feasibility.
2. Business Planning: They create comprehensive business plans that outline the
company's mission, vision, goals, strategies, and financial projections.
3. Resource Mobilization: Women entrepreneurs secure the necessary resources,
including capital, talent, and technology, to start and operate their businesses effectively.
4. Business Operations: They oversee day-to-day business operations, ensuring
smooth functioning, production, and service delivery.
5. Marketing and Sales: Women entrepreneurs develop marketing strategies, promote
their products or services, and engage in sales and customer relationship management.
6. Financial Management: They manage finances, budgeting, accounting, and
financial reporting to maintain the financial health of the business.
7. Human Resource Management: Women entrepreneurs recruit, train, and manage
employees, fostering a positive work environment and ensuring workforce productivity.
8. Innovation and Product Development: They drive innovation by developing
new products, services, or processes to stay competitive and meet evolving customer
needs.
9. Risk Management: Women entrepreneurs assess and manage business risks,
implementing strategies to mitigate potential challenges and crises.
10. Market Research: Women entrepreneurs conduct market research to understand
consumer preferences, industry trends, and competitive landscapes.
11. Social and Environmental Responsibility: Many women entrepreneurs
incorporate social and environmental responsibility into their business practices, aiming
for sustainability and positive social impact.
12. Leadership and Decision-Making: They provide leadership, make strategic
decisions, and set the direction for their businesses.
13. Continuous Learning: They engage in continuous learning and skill development to
adapt to changing market dynamics and industry trends.
14. Global Expansion: Women entrepreneurs may expand their businesses
internationally, seeking opportunities in global markets.
15. Crisis Management: In times of crisis, such as economic downturns or global health
emergencies, women entrepreneurs adapt their strategies and navigate challenges
effectively.
16. Brand Building: They work on building a strong brand identity and reputation,
which can lead to customer loyalty and competitive advantage
Profile of Indian Women Entrepreneur: Indian women entrepreneurs have made
significant strides in various sectors and have played a vital role in the country's economic
growth. While it's challenging to generalize, here is a profile of Indian women entrepreneurs
based on some common characteristics and trends:
1. Diverse Backgrounds: Indian women entrepreneurs come from diverse
backgrounds, including urban and rural areas, various educational qualifications, and
different socioeconomic strata. This diversity contributes to the richness of ideas and
innovations in their businesses.
2. Education: Many Indian women entrepreneurs hold advanced degrees in fields such
as engineering, medicine, business administration, and more. Their educational
qualifications equip them with the skills and knowledge necessary to start and manage
businesses successfully.
3. Motivation: A significant number of Indian women entrepreneurs are motivated by a
desire for financial independence, societal impact, and the pursuit of their passions.
Some also enter entrepreneurship to balance work and family life.
4. Industry Diversity: Indian women entrepreneurs can be found in a wide range of
industries, including technology, healthcare, education, fashion, e-commerce, and
agriculture. They have successfully ventured into both traditional and cutting-edge
sectors.
5. Tech-Savvy: Many Indian women entrepreneurs leverage technology, especially
digital platforms and social media, to reach a wider audience and scale their businesses.
6. Challenges: Indian women entrepreneurs often face gender-related challenges such as
limited access to funding, societal expectations, and work-life balance issues. However,
they have been resilient in overcoming these hurdles.
7. Supportive Ecosystem: Over the years, India has seen the emergence of various
initiatives, organizations, and government schemes aimed at supporting women
entrepreneurs. These include mentorship programs, financial incentives, and networking
opportunities.

8. Social Impact: A notable trend among Indian women entrepreneurs is their focus on
social impact and sustainability. Many of them are involved in businesses that address
pressing social issues, including education, healthcare, and environmental sustainability.
9. Networking: Women entrepreneurs in India often engage in networking and
collaboration with other entrepreneurs, both male and female, to share experiences and
knowledge, which helps in their personal and professional growth.
10. Success Stories: There are several well-known Indian women entrepreneurs who
have achieved remarkable success, such as Kiran Mazumdar-Shaw (Biocon), Naina Lal
Kidwai (formerly with HSBC), and Falguni Nayar (Nykaa), to name a few. These
success stories inspire and motivate other women to pursue entrepreneurship.
11. Global Reach: Some Indian women entrepreneurs have expanded their businesses
globally, tapping into international markets and establishing themselves as global leaders
in their respective fields.
Problems of Women Entrepreneurs: Basic problem of a woman entrepreneur is that
she is a woman. Women entrepreneurs face two sets of problems specific to women
entrepreneurs. These are summarized as follows.
1. Shortage of Finance: Women and small entrepreneurs always suffer from inadequate
fixed and working capital. Owing to lack of confidence in women’s ability, male members
in the family do not like to risk their capital in ventures run by women. Banks have also
taken negative attitude while lending to women entrepreneurs. Thus, women entrepreneurs
rely often on personal saving and loans from family and friends
2. Shortage of Raw Material: Women entrepreneurs find it difficult to procure material
and other necessary inputs. The prices of many raw materials are quite high.
3. Inadequate Marketing Facilities: Most of the women entrepreneurs depend on
intermediaries for marketing their products. It is very difficult for the women
entrepreneurs to explore the market and to make their product popular. For women, market
is a ‘chakravyuh’.
4. Keen Competition: Women entrepreneurs face tough competition from male
entrepreneurs and also from organized industries. They cannot afford to spend large sums
of advertisement.
5. High Cost of Production: High prices of material, low productivity. Underutilisation
of capacity etc. account for high cost of production. The government assistance and
subsidies would not be sufficient for the survival.

6. Family Responsibilities: Management of family may be more complicated than the

management of the business. Hence she cannot put her full involvement in the business .
Occupational backgrounds of the family and education level of husband has a direct
impact on the development of women entrepreneurship.
7. Low Mobility: One of the biggest handicaps for women entrepreneur is her inability to
travel from one place to another for business purposes. A single woman asking for room is
looked upon with suspicion. Sometimes licensing authorities, labour officials and sales tax
officials may harass them.
8. Lack of Education: About 60% of women are still illiterate in India. There exists a
belief that investing in woman’s education is a liability, not an asset. Lack of knowledge
and experience creates further problems in the setting up and operation of business.
9. Low Capacity to Bear Risks: Women lead a protected life dominated by the family
members. She is not economically independent. She may not have confidence to bear the
risk alone. If she cannot bear risks, she can never be an entrepreneur.
10. Social Attitudes: Women do not get equal treatment in a male-dominated society.
Wherever she goes, she faces discrimination. The male ego stands in the way of success of
women entrepreneurs. Thus, the rigid social attitudes prevent a woman from becoming a
successful entrepreneur.
11. Low Need for Achievement: Generally, a woman will not have strong need for
achievement. Every woman suffers from the painful feeling that she is forced to depend on
others in her life. Her preconceived notions about her role in life inhibit achievement and
independence.
12. Lack of Training: A women entrepreneur from middle class starts her first
entrepreneurial venture in her late thirties or early forties due to her commitments towards
children. Her biggest problem is the lack of sufficient business training.
13. Lack of Information: Women entrepreneurs sometimes are not aware of
technological developments and other information on subsidies and concessions available
to them. They may not know how to get loans, industrial estates, raw materials, etc.
Women Entrepreneurship Development in India: The development of women
entrepreneurship in India is influenced by a multitude of factors that collectively create an
environment conducive to women starting and growing businesses. Here are several key
factors contributing to the development of women entrepreneurship in India:

1. Government Initiatives: Government schemes and programs specifically designed

to support women entrepreneurs, such as Stand-Up India, Mudra Yojana, and the Women
Entrepreneurship Platform (WEP), provide financial incentives, access to credit, and
mentorship opportunities.
Example: The Stand-Up India scheme, launched by the Government of India, provides
loans to women entrepreneurs, particularly those from marginalized communities, to
start greenfield enterprises. For instance, a woman from a disadvantaged background
can avail of a loan to start a small manufacturing unit or a retail store.
2. Access to Finance: Initiatives like microfinance and self-help groups have improved
women's access to credit and capital, enabling them to start and expand their businesses.
Example: Microfinance institutions like SEWA Bank and Bandhan Bank have empowered
women in rural and urban areas to access microloans, enabling them to invest in small
businesses. Many women have used these loans to start businesses such as tailoring,
dairy farming, or food vending.
3. Digital Transformation: The proliferation of the internet and smartphones has
facilitated e-commerce and online business models, lowering entry barriers for women
entrepreneurs.
Example: Richa Kar, the founder of Zivame, an online lingerie store, leveraged e-
commerce and digital marketing to create a successful online business catering to
women's intimate wear needs.
4. Networking and Support Systems: The emergence of women-focused
entrepreneurial networks, incubators, accelerators, and mentorship programs provides
women with guidance and resources.
Example: The Indian Women Network (IWN), an initiative by the Confederation of
Indian Industry (CII), provides a platform for women entrepreneurs to connect, share
experiences, and gain insights from successful women leaders in various industries
5. Role Models: Successful women entrepreneurs serve as inspirational role models,
motivating others to pursue entrepreneurial endeavours.
Example: Falguni Nayar, the founder of Nykaa, an online beauty and cosmetics retailer,
serves as an inspirational role model for aspiring women entrepreneurs. Nykaa has
become a successful e-commerce platform catering to beauty and wellness products.

6. Diverse Industry Opportunities: Women are venturing into diverse sectors,

including technology, healthcare, fashion, agriculture, education, and more, reflecting the
wide array of opportunities available.
Example: Women in rural areas benefit from skill development programs offered by
organizations like the Self-Employed Women's Association (SEWA). These programs
equip them with skills for various trades and crafts, enabling entrepreneurship.
7. Legal and Policy Support: Legal reforms and policies that address gender
discrimination, maternity leave, and workplace safety contribute to a more supportive
environment for women in entrepreneurship.
Example: The Maternity Benefit (Amendment) Act in India mandates that women
employees are entitled to paid maternity leave, ensuring job security and encouraging
women to continue their careers or entrepreneurship after childbirth.
8. Access to Training and Workshops: Various organizations offer training,
workshops, and capacity-building programs specifically designed for women
entrepreneurs to enhance their skills and knowledge.
Example: Organizations like the National Institute for Entrepreneurship and Small
Business Development (NIESBUD) offer training and skill development programs for
women entrepreneurs, covering topics such as business planning and financial
management.
9. Corporate Initiatives: Many large corporations have diversity and inclusion
programs that encourage and support women entrepreneurs in their supply chains and
partnerships.
Example: Corporations like Hindustan Unilever Limited (HUL) have supplier diversity
programs that actively seek out and support women-owned businesses as suppliers. This
inclusion benefits women entrepreneurs by providing access to corporate markets and
resources.
Women Entrepreneurship Development in Foreign Countries: Women
entrepreneurship development in foreign countries is a global phenomenon characterized by
the growth of businesses owned and led by women. This development has been driven by
various factors, including changes in societal norms, government policies, access to education
and finance, and women's increasing participation in the workforce. Here's an overview of
women entrepreneurship development in foreign countries:

1. Changing Societal Attitudes: Many foreign countries have witnessed a shift in

societal attitudes toward gender roles, with greater acceptance of women pursuing
entrepreneurial ventures and leadership roles in businesses.
2. Government Initiatives: Governments in numerous foreign countries have
implemented policies and initiatives to support women entrepreneurs. These include
financial incentives, access to credit, and programs to enhance women's entrepreneurial
skills.
3. Access to Education: Improved access to education and vocational training has
empowered women with the knowledge and skills needed to start and manage businesses
effectively.
4. Access to Finance: Microfinance institutions, government-backed loans, and
women-focused investment funds have expanded women's access to capital, enabling
them to invest in their entrepreneurial ventures.
5. Networking and Support Ecosystem: Foreign countries often have a supportive
ecosystem with women-focused business networks, incubators, accelerators, and
mentoring programs that provide guidance, resources, and networking opportunities.
6. Digital Transformation: The global digitalization trend has opened up
opportunities for women entrepreneurs to leverage technology, e-commerce platforms,
and online marketing to reach a wider customer base.
7. Diverse Industry Opportunities: Women entrepreneurs in foreign countries are
venturing into a wide range of industries, including technology, healthcare, agriculture,
fashion, and services, reflecting the diversity of entrepreneurial opportunities.
8. Globalization: Access to international markets has become more attainable for
women entrepreneurs due to globalization, enabling them to compete globally and
expand their businesses.
9. Role Models: Successful women entrepreneurs in foreign countries serve as
inspirational role models, motivating other women to pursue entrepreneurial careers.
10. Sustainability and Social Entrepreneurship: Many women entrepreneurs are
leading businesses with a focus on sustainability and social impact, addressing
environmental and societal challenges through their ventures.
11. Cross-Border Collaboration: International networks and partnerships facilitate
cross-border collaboration and trade, further expanding the horizons for women
entrepreneurs.

Unit-4: Project Management: Concept of project and classification of project, Project life
cycle identification, Project formulation, Project report, Project evaluation- profitability
appraisal, social cost benefit analysis, feasibility analysis, financial analysis and project
financing, Project implementation, Project completion
Project Management: Project management is the application of processes, methods,

skills, knowledge and experience to achieve specific project objectives according to the
project acceptance criteria within agreed parameters. Project management has final
deliverables that are constrained to a finite timescale and budget.
Project management is a process that allows project managers to plan, execute, track and
complete projects with the help of a project team. To do so, they must use project
management principles, skills, methodologies and tools to lead team members through each
of the project management steps which are known as the project lifecycle.
Project management is the planning, implementing, and monitoring of project activities to
meet project objectives, achieved by effectively controlling and balancing the constraint of
time, cost, and scope in producing quality deliverables that meet or exceed the expectations
of the project stakeholders.
Project Management is the set of practices involving the application of knowledge, skills,
processes, methods and tools to achieve specific project requirements according to the project
acceptance criteria within agreed budget and timeframe.
Concept of project: A project in any organization is collaboration across departments to
achieve a single well defined objective. The process of planning, organizing and managing
resources to achieve the organizational objective is called project management.
The basic definition of a project is: “an organizational initiative to achieve certain outcomes
within a timeframe and a budget.” Moreover, a project is conceived when business needs are
recognized in the processes being used within an organization. These needs are
the “gaps” that require to be filled in an effort to set the organization on a growth path. These
gaps are of strategic importance and could range from customer complaints, declining
revenues, or new, upcoming business opportunities.
Definition of Project: A project is defined as a specific, finite activity that produces a
visible and measurable result under specific preset requirements. A project is a temporary,
unique, and progressive attempt to produce a tangible or intangible result (a unique product,
service, benefit, competitive advantage, etc.). It usually includes a series of interrelated tasks

planned for execution over a fixed period and within specific requirements and limitations
such as cost, quality, performance, etc.
Project is defined as temporary but interrelated tasks undertaken to give a unique product or
service or result. Projects are different from other ongoing operations in an organization,
because unlike operations, projects have a definite beginning and an end - they have a limited
duration.
It attempts to implement desired change in an environment in a controlled way. By using
projects, we can plan and do our activities, for example:
 Build a garage.
 Run a marketing campaign.
 Develop a website.
 Organize a party.
 Go on vacation.
 Graduate a university with honours or whatever else we may wish to do.
Characteristics of a Project: The following are the characteristics of project.
The following are the characteristics of project.
1. Objectives: Every project is started with some objective or goal viz. time, budget,
quality, and quantity, when objectives are fulfilled project cause existing. You can
initially define the objectives of the project what actually need to achieve. Objectives
are the key characteristics of the project where you will see the progress of the project
and time to time analysis will show you the result of how much you have achieved.
2. Single entity: A project is one whole thing. This means that in a project although
different people contribute still is recognized as a single entity. The teams are often
specifically assembled for a single project.

3. Life Span: No project can be ceaseless and indefinite. It must have one and beyond
which it cannot proceed. Every project is invariably time-bound. At the time of
planning, you will see the time phase of the project where the team can work
independently on the project modules.
4. Require funds: Every project needs funds to reach the endpoint. Without adequate
funds, no project can be successfully implemented. Cost estimation is one of the
essential factors for any organization. So, calculating in advance the required funds for
the project will be very impactful.
5. Life Cycle: Each project has a life cycle with different stages like start, growth,
maturity, and decay. A project has to pass through different stages to get itself
completed.
6. Team Spirit: Team spirit is required to get the project completed because the project
constitutes different members having different characteristics and from various
disciplines. But to achieve common goal harmony, missionary zeal, team spirit is
necessary.
7. Risk and Uncertainty: The project is generally based on forecasting. So risk and
uncertainty are always associated with projects. There will be a high degree of risk in
those projects which are not properly defined. Only the degree of control over risk and
uncertainty varies with the project being conceived based on information available.
8. Directions: Project is always performed according to the directions given by the
customers with regard to time, quality and quantity, etc. The convenience of the supply
sides of economics such as labour availability ore resources and managerial talent etc.
are all secondary concerns, primary being the customer requirement.
9. Uniqueness: Each project is unique in itself, and it’s having own features. No two
projects are similar even if the type of organization is the same. The uniqueness of the
project can measure by considering the many factors like objectives, features of the
project, application of the project, etc.
10. Flexibility: Change and project are synonymous. A project sees many changes
throughout its life span. These changes can make projects more dynamic and flexible.
11. Sub-Contracting: Sub-contracting is a subset of every project and without which
no project can be completed unless it is a proprietary firm or tiny in nature. The more

complexity of a project the more will be the extent of contracting. Every project needs
the help of an outsider consultant, engineer, or expert in that field.
12. Cost: If the quality of the project is to be changed there could be an impact on the cost
of the project. The cost could increase if more resources are required to complete the
project quicker.
Classification of project: Every Project is different from one another. The projects can
be classified into various types:
1. Based on Ownership
a) Public Projects: These are the projects which are done by public projects. E.g.
Construction of Roads & Bridges, Adult Education Programmes, etc.
b) Private Projects: These are the projects which are undertaken by private
enterprises. Eg. Any business related projects such as a construction of houses by
real estate builders, software development, marriage contracts, etc.
c) Public Private Partnerships: These projects which are undertaken by both
government and private enterprises together. E.g., Generation of Electricity by
Windmill, Garbage Collection, etc.
2. Based on Investment
a) Large Scale Project: These projects involve a huge outlay or investments, say,
crores. Eg. Real Estate Projects, Road Construction of manufacturing facilities,
Satellite sending projects of ISRO, Unique Identification Number project of India,
etc.
b) Medium Scale Project: These projects involve medium level investment and are
technology oriented. Example: Computer industry and electronic industry.
c) Small Scale Project: These projects involve only a lesser investment. E.g.,
agricultural projects, manufacturing projects.
3. Based on Research in Academia
a) Major Projects: In academia, the major projects are those projects which involve
more than one year to 3 or 5 years and minimum funding of ` 3 lakhs in case of social
sciences and ` 5 lakh in case of sciences.
b) Minor Projects: The minor projects in academia are those projects which will be
completed within a year and have a maximum funding of ` 1 lakh in social science and
` 3 lakh in case of sciences.

4. Based on Sector
a) Agricultural Projects: These are the projects which are related to agricultural
sector like irrigation projects, well digging projects, manuring projects, soil upgrading
project, etc.
b) Industrial Projects: These are the projects which are related to the industrial
manufacturing sectors like cement industry, steel industry, textile industry, etc. For
example, technology transfer project, marketing project, capital issue project like IPO,
etc.
c) Service Projects: These are the projects which are related to the services sectors
like education, tourism, health, public utilities, etc. For example, adult literacy project,
medical camp, general health check up camp, etc.
5. Based on Objective
a) Commercial Projects: These projects are undertaken for commercial purpose and
return on investment is expected out these projects. For example, Toll roads based on
BOLT – Build Own Lease Transfer Model or BOOT – Build Own Operate and Transfer
Model, Product Launching project.
b) Social Projects: These projects are undertaken for social purposes and welfare of
the people is the aim of these projects. These projects are undertaken either by the
Government or Service oriented Non- Governmental Organizations. For example, Polio
immunization Project, Child Welfare Projects, Adult Literacy Projects, etc
6. Based on Nature
a) Conventional Projects: These projects are traditional projects which do not apply
any innovative ideas or technology or method. For example, conventional irrigational
projects, handicraft projects, etc.
b) Innovative Projects: These projects involve the use of technology, high R&D,
development of new products and services. These innovative projects can be further
classified into
c) Technology: Depending on the level of technological uncertainty at the time of
initiation of projects, the projects can be classified into: Low-Tech projects which relay
on the existing and well established base technologies; Medium-Tech projects which
rest mainly on existing base technologies but incorporate some new technology or
feature; High-Tech projects in which most of the technologies employed are new, but
existent, having been developed prior to the project’s initiation; and Super High- Tech

projects which are based primarily on new, not entirely existent technologies.
7. Based on Time
a) Long term projects: These projects take a very long duration to complete. These
projects are run for many years till the objective is reached. For example, Eradication
of diseases like Polio, Filaria, etc
b) Medium term projects: These projects take a medium term duration like 3 to 5
years. For example, Modernization projects, computerization of operations, etc.
c) Short term projects: These projects are executed within a short period, normally
within a year. For example, Pond cleaning project, health camps, software
development, etc.
d) Very short term projects: By very name you can understand that these projects
are completed within a very short period, say, within a day. For example, product
launch project.
8. Based on Risk
a) High Risk Projects: These projects involve a very high degree of risk, for
example, nuclear energy project, thermal energy project, satellite projects, etc. If the
project is not handled properly, the effect will be very adverse. Thus, high
precautionary measures are to be taken to commission these projects.
b) Low Risk Projects: These projects do not involve risk and they are carried out in
the normal course of action. For example, road and bridge construction, house
construction.
9. Based on Output: Based on output, projects are classified into quantifiable and non-
quantifiable ones.
a) Quantifiable projects: In these projects, the benefits / goals of which are
amenable for measurement. Quantitative expression of the outcomes is possible. It is
easy to understand and appreciate quantitative projects as it is easy to communicate
them. For instance, enterprises engaged in the production of various goods and
services come under this category.
b) Non-quantifiable projects: In these projects quantification of the benefits /
outcome may not always be possible as the impact of the project is spread over a longer
period. The benefits accrue to the intended beneficiaries in the long run. Projects
concerning health, education, and environment fall under this category.
Project life cycle: A project life cycle is a series of phases or stages that a project goes
through from its initiation to its completion. These phases help organizations and project
teams plan, execute, and control projects effectively. The specific phases and their names may
vary depending on the project management methodology or framework being used, but there
are common elements found in most project life cycles. Here's a general overview: The
project life cycle typically passes through four stages, viz., Initiating, planning, executing and
closing. The following figure shows the Project Life Cycle.
The starting point begins the moment the project is given the go- ahead. Project efforts starts
slowly, build to a peak and then declines to delivery of the project to the customer. The stages in
the project life cycle are discussed below:
1. Project Initiation Stage: In this stage, the specifications of the project are defined
along with the clear cut project objectives. Project teams are formed and their major
responsibilities are assigned. More specifically, this stage defines the goals,
specifications, tasks and responsibilities.
2. Project Planning Stage: In this stage, the effort level increases and plans are
developed to determine what the project will entail, when it will be scheduled, whom it
will benefit, what quality level should be maintained and what the budget will be. More
specifically, this stage will include planning schedules, budgets, resources, risks and
staffing.
3. Project Execution Stage: In this stage, a major portion of the project work takes
place. The physical product is produced (For eg., house, bridge, software program,
report, etc). Time, cost and specification measures are used for control. More
specifically, this stage will take care of status reports, changes, quality and forecasts.
4. Project Closure stage: This is the final stage which includes two activities, viz.,
delivering the outcome of the project to the customer and redeploying the project

resources. Delivery of the project might include customer training and transferring
documents. Redeployment usually involves releasing project equipment/ materials to
other projects and finding new assignments for team members. More specially, this
stage will undertake activities relating to training the customer, transfer of documents,
releasing resources, releasing staff and learning lessons.
Project Formulation: Project formulation can be defined as the systematic. step-by-
step development of a project idea for the eventual objective of arriving at an investment
decision. In fact it is a careful and scientific mechanism which enables the entrepreneur to
achieve the project objective with the minimum expenditure and adequate resources. This
makes it an analytical management aid. Project formulation helps not only in fighting with
the internal problems of project idea but a well formulated project is the best way of getting
financial assistance from various financial Project formulation will also be of great
assistance for obtaining necessary government clearances and in meeting the hurdles of
procedural formalities.
Steps in Project Formulation: The formulation of a good project proposal is not an
easy task. It requires a lot of exercise on the part of proposal formulator both before and
during the preparation of project proposal. Before writing a project proposal, the project
coordination or institution has to take care of following pre- project formulation aspects.
1. Review of past project proposals: A group that is involved in the formulation of
project proposal needs to review similar types of project proposal formulated by its own
institution or other institutions. This will give an idea about the strengths and
weaknesses to the project coordinator while thinking about formulating any project.
2. Consulting experts, consultants, and previous project coordinators: A
person or group formulating proposal could consult an expert in the area in which the
intended project is going to be formulated and even can appoint a consultant who could
be helpful in the preparation of the proposal. It is always better to consult a person who
has already completed similar type of projects which are being attempted. The project
coordinator formulating project proposal can consult his/her fellow colleagues who have
already formulated similar types of project proposals.
3. Review past project evaluation reports: Before formulating a proposal, it is
advisable to go through the reports prepared by a similar type of research
organizations/institutions. The project evaluation report, besides, providing the
components of project activities and strategies, will give details about the methodology,
evaluation, and impact assessment strategy.

4. Interact with the prospective beneficiaries: The project team can also interact
with the prospective beneficiaries to be benefited from the project interventions and
assess their need. It would be better if the coordinator could also interact with those who
have already received benefits from the similar types of projects.
5. Check statistical data/ report: The data regarding a previous similar type of
projects from various documents must be collected so that an appropriate project
strategy is formulated.
6. Hold focus group discussion: It is always better that the person who prepares a
proposal undertakes a focus group discussion with the beneficiaries or the prospective
clienteles or the stakeholders. If it is a training project for grassroots level
representatives e.g., urban local bodies, then the training organizer could conduct a
focus group discussion with the elected representatives and functionaries of urban local
bodies and assess their needs.
Project Report: A project report is a document that specifies the status of a project and
other related information. In other words, it is a report that includes all the details about a
project, navigating each step with great insight. This document helps to ascertain the
feasibility of the activities or plans taken to fulfill a particular project's objectives.
Components of Project Report: The following are the components:
1. Summary: As mentioned earlier, this section summarizes all information in the
project in a small paragraph, giving readers
insight into the report
2. Progress: The report provides you with the
metrics that show the project’s progress. The
report identifies the challenges that have emerged
while creating the report.
3. Risks: Every project is bound to face some
challenges at some point. It’s important to
identify those risks ahead of time and come up
with smart solutions that could help mitigate them. In the report, you must conduct a
detailed risk analysis and show the solutions that could help. The report also shows how
these risks affect the report.

4. Budget: How much capital you need for the project, whether you need investors to
raise more funds, and how you plan on allocating the budget to various steps in the
project are a few important things to include in your report.
5. Timeline: A timeline shows whether your project is on track and how fast you have
finished the tasks. Is your project behind, ahead, or on schedule? These details can be
found in the timeline section.
6. Resources: The next element is the resources — all that you have used to craft the
report. This must cover the machinery, equipment, and all types of tools used for
completing the project. It should also provide a summary of how you’ve allocated the
resources.
Types of Project Report: Here's a brief overview of eight of the most commonly
used types of reports; however, they are still vital to the smooth running of the project:
1. Status Reports: These provide an overview of the project's current status,
including progress, accomplishments, challenges, and upcoming tasks. They help
stakeholders stay informed about the project's health.
2. Progress Reports: Similar to status reports, progress reports focus on project
advancement, highlighting if the project is meeting planned milestones and adhering
to the schedule and budget.
3. Risk Reports: Risk reports detail the identification, assessment, and management
of project risks. They provide information on potential threats and mitigation
strategies.
4. Board/Executive Reports: Tailored for high-level decision-makers, these reports
summarize key project information in a concise and strategic manner. They focus on
the project's impact on the organization's goals and objectives.
5. Cost Benefit Analysis Report: This report assesses the financial feasibility and
return on investment (ROI) of a project. It compares the project's benefits to its costs
to determine if it's economically viable.
6. Resource Reports: Resource reports allocate and track the allocation of project
resources, including personnel, equipment, and materials, to specific tasks or
activities.
7. Variance Reports: These reports compare planned versus actual project
performance. They highlight deviations from the project plan, such as cost overruns or
schedule delays.

8. Quality Assurance/Quality Control Reports: These reports focus on the

project's adherence to quality standards and processes. They highlight any deviations
from established quality criteria and corrective actions taken.
9. Communication Reports: Communication reports summarize the project's
communication activities, including meetings, emails, and documentation, ensuring
that stakeholders are kept informed and engaged.
10. Milestone Reports: Milestone reports emphasize the achievement of significant
project milestones. They provide a snapshot of the project's progress at critical points
in its timeline.
11. Closure Reports: After project completion, closure reports document the project's
overall performance, lessons learned, and recommendations for future projects. They
serve as a valuable resource for continuous improvement.
12. Technical Reports: These reports provide in-depth technical information related to
project design, development, or implementation. They are often used in engineering
and research-based projects.
Steps to Write a Project Report: Creating a project report is crucial for determining
any project's success. Documenting all the steps in a project and sharing it with other
departments helps to learn the basic do's and don'ts whenever taking up any project.
Project report writing involves the following major steps:
1. Set the Objective: When initiating a new project, the first step is to set the
objective or goals. Once a company has identified its objectives, the process of
measuring its progress and success simplifies. Take a moment and list the reasons for
creating a project report. Having clear project objectives will help reduce work
redundancy and be on track for everyday tasks.
2. Recognize Your Audience: Not the entire world is the target audience for any
project. A project manager has to recognize the perfect audience to which the project
caters. It is extremely important to know the taste and preferences of the target
audience. What they like and dislike helps to draft a project report that is easily
understandable for the audience.
3. Know the Format: A corporate document mainly consists of a particular format. A
project progress report is also a formal document, and hence it needs to be drafted in a
format that has some labels and templates. However, it is upon the project managers
whether they choose a new report template or select any existing ones. It is always

better to select a comprehensive template that effectively conveys the agenda behind
the project report.
4. Data Collection: A project report is supposed to have sufficient data that can act as
proof of what activities have taken place. Data collection is a significant aspect of
creating a project report, as everything depends upon data. Accurate data constitutes a
major part of the project report, which estimates the successful and lagging segments
of a project through relevant data-driven insights. Data can be extracted from various
sources such as surveys, international agencies, case studies, interviews, etc.
5. Structure of the Report: The structure of the report basically talks about the
presentation of the report. A project status report should be prepared in a manner that
is comprehensive, consumable, visually approachable, and easy to understand.
6. Edit & Review: After the completion of the entire project report, project managers
read it to find any gaps to fill. Once the required edits are made, and the review is
done, the report gets a check to move forward.
Project Evaluation: Project evaluation refers to assessing an ongoing or completed
project based on the inputs gathered at each stage. The project assessment is carried out
with the aim to track the progress of a project and identify opportunities for improvement.
Steps in Project Evaluation: The following are the steps in project evaluation:
1. Define Objectives: Clearly state the evaluation goals and what aspects of the
project you're assessing.
2. Select Criteria: Determine the specific criteria and metrics for evaluating project
performance.
3. Gather Data: Collect relevant data and information related to the project's
performance.
4. Analyze Data: Examine the collected data to assess how well the project has met
its objectives and criteria.
5. Assess Stakeholder Satisfaction: Gather feedback from project stakeholders
to gauge their satisfaction with the project's outcomes and processes.
6. Make Recommendations: Based on your evaluation findings, make actionable
recommendations for project improvement or adjustments.
7. Communicate Results: Present the evaluation results and recommendations to
stakeholders effectively and transparently.

Methods of Project Evaluation: Imagine setting off on an exciting road trip.

You should check your vehicle before you depart, assess your journey at intervals, and
reflect on the experience after you return. Much like this road trip, the project
management journey also necessitates evaluation at the pre-project, mid-project, and
post-project stages. Let’s navigate through each step:
Stage-1: Pre-Project Evaluation: The pre-project evaluation, akin to the preparatory
check before a road trip, occurs before the project commences. It sets the stage for a successful
project by:
1. Feasibility check: Assessing the project’s feasibility in terms of available
resources, budget, and time.
2. Risk assessment: Identifying potential risks and strategizing mitigation plans.
3. Goal setting: Defining clear, measurable, and realistic project objectives.
4. Stakeholder analysis: Understanding and aligning stakeholder expectations

with the project’s objectives.
Stage-2: Mid-Project Evaluation: Just as periodic checks during a road trip help
ensure everything is running smoothly, a mid-project evaluation monitors the project’s
ongoing progress. It is instrumental in:
1. Performance tracking: Checking whether the project is on track to achieve its
objectives.
2. Risk management: Identifying and addressing new risks or challenges during
project execution.
3. Adjustment implementation: Making necessary adjustments to the project
plan based on performance and feedback.
4. Stakeholder communication: Updating stakeholders on the project’s status
and any changes in the project plan.
Stage-3: Post-Project Evaluation: After completing a road trip, reflecting on the
experience provides valuable insights for future trips. Similarly, a post-project evaluation
focuses on learning from the project’s outcomes to improve future projects. It includes:
1. Outcome assessment: Measuring the project’s outcomes against the initial
objectives.
2. Success validation: Determining the success or failure of the project based on
the defined criteria.

3. Lessons learned: Identifying strengths, weaknesses, opportunities, and threats

encountered during the project.
4. Future recommendations: Suggest future projects based on the evaluation
findings.
Social Cost Benefit Analysis: SCBA is an analytical method used in economics and
public policy to assess the social and economic impact of a project, policy, or program. It
involves comparing the costs and benefits, including non-monetary factors like
environmental and social impacts, to determine if an action is socially desirable.
Importance of Social Cost Benefit Analysis: The importance of social cost
benefit analysis has been explained with the help of the following factors that affect the
general masses as a whole.
1. Market Failure: Market failure when a big project is not affecting everyone but
only a few. A private firm would only look at profitability and related market prices
to take up a deal but the government has to look at other factors. To determine the
social cost in case of market failure and when market prices are unable to define
them. These social costs are known as shadow prices
2. Savings & Investment: Impact of the project on general savings and investment
level. A project that induces more savings are investment in an economy and not the
other way round.
3. Distribution & Redistribution of Income: The project should not lead to
accumulating income in the hands of a few but, it should equally distribute the
income.
4. Employment and Standard of Living: How a project affects employment and
standard of living will be taken into account as well. The deal should lead to increase
in employment and standard of living.
5. Externalities: Externalities are impacts of a project which can be both harmful and
beneficial. Therefore, both the effects are to be assessed before sanctioning a deal.
Positive-externalities could be in the form improvement in technology and negative-
externalities could be in the form of increase in pollution and destruction of ecology.
6. Taxes and Subsidies: In a general cost benefit calculation, taxes and subsidies are
considered as expenses and income respectively. Though in case of social-cost benefit
analysis, taxes and subsidies are considered as transfer payments.

Role of SCBA in project evaluation: The role of SCBA (Social Cost-Benefit

Analysis) in project evaluation is significant and multifaceted. SCBA is a systematic
method used to assess the social and economic impact of a project, policy, or program.
Here's how SCBA plays a crucial role in project evaluation:
1. Holistic Assessment: SCBA allows for a comprehensive evaluation of a project
by considering both monetary and non-monetary factors. It looks beyond financial
costs and benefits to include social, environmental, and quality-of-life impacts.
2. Informed Decision-Making: SCBA provides decision-makers with a well-
structured framework for evaluating the desirability of a project. It helps them
make informed choices by considering the broader societal consequences of the
project.
3. Resource Allocation: SCBA assists in efficient resource allocation by helping
decision-makers prioritize projects that deliver the greatest net benefit to society. It
ensures that resources are allocated to projects with the highest social value.
4. Risk Management: SCBA includes risk analysis, allowing project evaluators to
assess potential risks and uncertainties associated with the project. This helps in
making risk-informed decisions and implementing mitigation strategies.
5. Transparency and Accountability: SCBA promotes transparency in project
evaluation. It documents the methodology and assumptions used, making the
evaluation process transparent and subject to scrutiny. This enhances accountability
in decision-making.
6. Sustainability Considerations: SCBA encourages the consideration of long-
term sustainability. It assesses the project's impact on the environment and future
generations, ensuring that projects align with sustainability goals.
7. Equity and Distributional Analysis: SCBA assesses how the costs and
benefits of a project are distributed among different segments of society. This helps
identify potential inequalities and informs policies to promote equity.
8. Policy Evaluation: SCBA is used to evaluate the impact of policies and
programs on society. It helps policymakers assess whether a policy is achieving its
intended objectives and whether adjustments are needed.
9. Public Engagement: SCBA often involves stakeholder engagement and
consultation. This ensures that the concerns and perspectives of affected individuals
and communities are considered in the evaluation process.

10. Continuous Improvement: SCBA contributes to a culture of continuous

improvement in project management and policymaking. Lessons learned from
previous evaluations can inform future projects and policies.
11. Compliance and Regulation: In some cases, SCBA is a regulatory
requirement for certain projects, particularly those with potential environmental or
social impacts. It helps ensure that projects comply with relevant regulations.
Feasibility Analysis: A feasibility study is a thorough evaluation that takes into account
all of the important factors from a project proposal to ascertain the chances of success.
Return on investment indicates that the project will yield sufficient revenue to justify the
funding. This is one way to describe a company's success. The growth and prominence of
project management training have changed, and such changes are here to continue and
grow further. Several types of feasibility studies in project management help a project
foray further.
Types of Feasibility Studies: There are five types of feasibility studies based on the
area that is examined:
1. Technical Feasibility: This study takes stock of the technical resources available
to undertake a project from an organization’s perspective. It includes ensuring that the
technical resources are adequate, and the hardware and software requirements are met.
Technical feasibility will also include if proven technologies and methodologies exist
to support the proposed development.
2. Economic Feasibility: This assessment performs a cost/ benefits analysis of the
project before the financial resources are allocated. This type of study gives a clear-cut
idea of project credibility (viability) as well as the economic benefits to the
organization from the project.
3. Legal Feasibility: In this type of feasibility study, the legal requirements of the proposed
project are analyzed. Several parameters, ranging from zonal laws to data protection acts are
checked, and compliance mandates are mapped out.
4. Operational Feasibility: This study will help analyze and determine whether the
organization’s goals can be satisfied by completing the project.
5. Scheduling Feasibility: This is the most important assessment for project success. It
estimates the time necessary to complete the project after considering the organization’ s
capabilities and determines whether that amount of time is available.

Steps to conduct a feasibility study: The following stages are involved while
conducting any feasibility study, in general:
1. A preliminary analysis: This is like a pre-screening of the project. It helps discover
the viability of the project as well as identify any roadblocks if any.
2. Scope definition: This step includes outlining the project’s scope as well as its
potential impact on the organization.
3. Market research: This is an essential factor, as no project is begun without adequate
market research. A thorough analysis of the existing market and competition is done to
manage the project accordingly.
4. Financial assessment: In this stage, all the costs related to the project, including
equipment, man-hours, the financial risks, and the benefits associated with the project are
estimated and scrutinized.
5. Alternative solutions: Whenever any hiccups arise, the team should be well-
prepared to come up with a solution. This is an integral yet dynamic part of a feasibility
study.
6. Go/no-go decision: The final stage of a feasibility study is the course of action, in
other words, whether the project is worth proceeding with or not.
Financial Analysis: Financial analysis is a process of evaluating the financial
performance of a company. It involves analysing financial statements, ratios, and other
financial data to gain insights into the company's financial health. Importance of financial
statement analysis is seen in making informed decisions in businesses by identifying
strengths, weaknesses, opportunities, and threats in their financial performance.
Objectives of financial analysis: The primary objectives of financial analysis are to
assess the financial health and performance of an organization, make informed financial
decisions, and provide insights to various stakeholders. Here are the key objectives of
financial analysis:
1. Assess Financial Health: One of the primary objectives is to evaluate the financial
health of a company. Financial analysis helps determine whether the organization is
financially stable, capable of meeting its short-term and long-term obligations, and
solvent.
2. Measure Profitability: Financial analysis aims to assess the profitability of a
company by examining its income statement. This includes calculating various profit

margins like gross margin, operating margin, and net profit margin to gauge how
effectively the company generates profits from its operations.
3. Analyze Liquidity: Liquidity analysis is crucial to assess the company's ability to
meet its short-term financial commitments. By examining liquidity ratios like the current
ratio and quick ratio, financial analysis helps determine if the company has sufficient
liquid assets to cover its short-term liabilities.
4. Evaluate Efficiency: Financial analysis analyses the efficiency of the company's
operations and asset utilization. This involves evaluating turnover ratios like inventory
turnover and accounts receivable turnover to assess how efficiently the company
manages its assets.
5. Support Decision-Making: Financial analysis provides valuable insights to
stakeholders, including management, investors, and creditors, to support their decision-
making processes. It assists in making investment decisions, setting strategic goals, and
identifying areas for operational improvement.
Types of Financial Analysis: Fundamental analysis and technical analysis are the two
types of financial analysis.
1. Fundamental Analysis: To ascertain a company's value, fundamental analysis
analyses ratios derived from information found in the financial statements, such as its
profits per share (EPS). The analyst can determine the intrinsic value of the security by
using ratio analysis along with a comprehensive investigation of the economic and
financial circumstances around the company.
2. Technical Analysis: Moving averages and other statistical trends gleaned from trade
activity are used in technical analysis (MA). Technical part of financial analysis is based
on the statistical examination of price movements since it essentially believes that the
price of a security already represents all information that is generally available. Read
about types of financial statement analysis in detail here.
Methods of Financial Statement Analysis: There are several methods of financial
statement analysis, including ratio analysis, trend analysis, and comparative analysis.
1. Ratio Analysis: Ratio analysis involves analysing financial ratios to gain insights into a
company's financial performance.
2. Trend Analysis: Trend analysis involves analysing financial data over time to identify
trends and patterns.

3. Comparative analysis: This method of financial analysis involves comparing a

company's financial performance to that of its competitors or industry benchmarks.
4. Adjustment of errors: This process of financial analysis helps in adjustment of
measurement errors and removes any redundancy from the input data.
5. Balance Sheet: This financial analysis process involves segmenting the balance sheet into
operations and financial assets.
Project Financing: Project Financing is defined as an approach of raising long term funds
for projects such as infrastructure or services, capital or financial projects. The funding can
either be raised by surrendering a part of equity or by raising funds through debt.
Key Features of Project Financing: The features of project financing:
1. Capital Intensive Projects: Project financing is ideal for projects that require high
capital investment in terms of equity and debt. These types of projects are usually located
in developing countries as these projects are taken up for economic development of a
country.
2. Risk Management: For the performing organization this is a good financing option
as they can transfer the liability and risk to the SPV, by protecting their assets and
maintaining the balance sheet. For the lenders or sponsors, they enjoy high margins due
to higher rates of interest for assuming the higher risk of the projects.
3. Large Number of Parties Involved: This structure allows to accommodate and
involve various parties involved in these projects.
4. Loan Repayment: The excess cash flow generated by the project at the end of each
phase, is used to pay off the outstanding loan. This gradual pays off of the loan amount is
a relief to the lending organization as part of the debt is paid off gradually.
Importance of Project Financing: Project financing plays a crucial role in the
successful execution and completion of large-scale projects, especially those with high capital
requirements. Its importance can be summarized in several key aspects:
1. Capital Intensive Projects: Many projects, such as infrastructure development,
energy generation, and large-scale construction, require substantial upfront capital
investments. Project financing enables these projects to move forward by providing the
necessary funds.
2. Risk Allocation: Project financing allows for the allocation of risks among various
stakeholders. Lenders, investors, and project sponsors share the financial risks associated
with the project, which can provide a level of risk mitigation for all parties involved.

3. Long-Term Viability: Projects often have long-term revenue streams and payback
periods that extend beyond the capacity of a company's balance sheet. Project financing
allows for the creation of special-purpose entities (SPEs) or project companies to isolate
the project's financials from those of the parent company.
4. Enhanced Access to Capital: Project financing can provide access to a broader
range of financing options, including loans, bonds, equity investments, and public-
private partnerships. This diversification of funding sources can reduce dependence on a
single source of capital.
5. Project-Specific Funding: Funding is tailored to the specific project's needs,
ensuring that it has adequate resources for construction, operation, and maintenance
without affecting the overall financial health of the parent company.
6. Structured Repayment: Project financing often includes structured repayment
schedules that align with the project's cash flows and revenue generation. This reduces
the burden of immediate debt repayment and enhances financial stability.
7. Credit Enhancement: Large-scale projects may benefit from credit enhancement
mechanisms, such as guarantees or insurance, which can make the project more attractive
to investors and lenders, reduce borrowing costs, and improve credit ratings.
8. Risk Mitigation: Project financing often includes risk assessment and mitigation
strategies, such as financial modeling, feasibility studies, and contractual agreements.
These measures help identify and address potential risks before they become critical
issues.
9. Local Development: Project financing can stimulate economic development by
creating jobs, supporting local industries, and improving infrastructure. This can have
positive impacts on local communities and the broader economy.
10. Ownership Structure: Project financing can enable a diverse ownership structure,
with investors and lenders taking on equity and debt positions. This can allow multiple
parties to share in the project's benefits and risks.
11. Public-Private Partnerships (PPPs): Project financing is instrumental in PPPs,
where private sector entities collaborate with government agencies to develop and
operate public infrastructure projects. PPPs can improve the efficiency and quality of
public services.

12. Global Investment: Project financing can attract international investors and lenders,
bringing in foreign capital and expertise, which can be especially valuable for complex
projects and those with a global impact.
Sources of Project Financial: Even though there are numerous sources of raising
funds, they can be roughly categorized into three categories that are mentioned below:
1. Debt: Debt that is raised through Investment banks is referred as Private debt and
has a cheaper capital cost. This is because debt holders are paid on a priority basis.
Debt raised by the Government is referred as public debt and has a higher capital
cost.
2. Equity: This source of funding involves giving up a part of ownership of the
project to various sponsors in exchange of funds. One of the advantages of this
source is, these funds do not need to be repaid unlike debt financing.
3. Loan: This can be categorized into secured and unsecured loan. Under secured
loan, the assets of the project are held as collateral against the loan. Under unsecured
loan, no assets are backing the loan amount and the loan is offered based on the
credit worthiness of the project or organization.
Stages of Project Financing: There are three stages of project financing:
1. Pre-Financing Stage
a) Project Plan Identification: this involves identifying the strategic plan for the
project and assessing whether the project is profitable or not. Keeping in mind the risk
accepted by lender, this step is performed by the lender for an unbiased result.
b) Risk Management: Before the lender invests in the project, it is important to
identify the associated risks and also ways to mitigate the risks, if possible.
c) Project Feasibility Assessment: Since the loan payoff is dependent on the cash
flow generated by the project, it is important to assess if the project can provide
sufficient cash flows and is profitable in the long run.
2. Financing Stage
a) Financial Arrangements: In order to raise funds for the project, the performing
organization needs to acquire loan or give up equity to a financial organization that is
willing to invest in the project.
b) Negotiation: This is the stage where the loan amount and rate of interest/ valuation
are negotiated.

c) Documentation: In this stage, the loan terms and agreements are accepted by all
parties and are sealed by official documents. All the necessary documentation is
completed in this stage.
d) Payment: In this stage the lender transfers funds to the performing organization to
begin the project operational work.
3. Post-Financing Stage
a) Project Monitoring: It is important to monitor the project timely and let the
stakeholders know how the project is progressing. It is the project manager’s job to
ensure the project is completed on time.
b) Project Closure: Once the project is delivered successfully and all the related
agreements have been honoured, the project is closed officially.
c) Repayment: In this stage the project is officially closed, and the cash flow
generated from the project is carefully evaluated as the loan is to be paid off from the
excess cash flow generated.
Project Financials Example: Liquid Gold Pvt Ltd. is an old producing company with
over 30 years of experience in the industry along with some stock holdings and assets. Ajit,
the CEO of the company, wants to work on a project through project financing.Since the
project he is undertaking involves a lot of risks, he decides to establish another firm for this
project, Liquid Gold Oil and Energy Pvt. Ltd. This company will be completely owned by the
parent company Liquid Gold Pvt. Ltd. and will manage the operational business of the new
firm. When lenders provide funding, they will fund the new form Liquid Gold Oil and Energy
Pvt. Ltd. As a result of this, in case the new company defaults on their payments, Liquid Gold
Oil and Energy Pvt. Ltd. will be insolvent but the parent company Liquid Gold Pvt Ltd. will
not be liable to pay this debt.
Steps to finance your project: To adopt project finance process as a means to fund
the project, the following steps should be followed:
1. Identify Potential Opportunities: The first step is to identify and evaluate the
potential projects that are profitable in future. Once these projects are shortlisted, the
management must choose one project that the organization will go ahead with.
2. Estimating Cost: In this stage, the implementation and operating costs associated
with the project are projected. In this stage, the feasibility of the project is evaluated,
and a decision is made based on the feasibility and returns of the project. This is the

stage where potential threats are identified, and their estimated costs are also
considered.
3. Identify Technology: In this stage, a study is conducted to assess the kind of
technology that is required to successfully deliver the project. Once the technology is
identified, the next step is to estimate how much acquiring the technology will cost
and how to acquire the technology.
4. Identify Source of Funding: Once the cost to be incurred is estimated, the next
step is to identify sources of project finance. In other words, potential lenders are
identified, approached and briefed about the project and the cost associated.
5. Implementation: Once a suitable lender is identified and has expressed a desire in
collaborating for the project, the legal documents are signed and the funds for the
project are delivered. The operational work for the project begins and strategic plans
for monitoring the cost and future cash flows are implemented.
Project Implementation: Putting a project into action involves several steps,
including some planning that must be done beforehand. The following list of activities will
help you carry out a project successfully:
1. Assess the project plan: It is advantageous to construct a strategy that satisfies the
requirements of management, clients, and important stakeholders within the first stage of
the project cycle. Before beginning a project, evaluate the plan and ensure everyone on
the team knows the project deliverables.
2. Planning: Project managers should regularly discuss the team's development during
this phase with them. To ensure the team has all they need to finish the project
effectively, compare the project's timeframe to the anticipated schedule and monitor the
available resources. Communication is essential at this phase of the process to keep the
team informed about the project's priorities.
3. Execution of Plan: Many projects face change, and how well a project manager
executes such changes can influence the project's conclusion. Ask the team questions and
keep in touch to find out where they need extra assistance. If a project deviates from the
plan, be prepared to devote more personnel or resources.
4. Analyze Project Data: It's crucial to consistently examine and analyze data during a
project's implementation phase to gauge progress against original estimates. You can
gather information on staffing, resources, and budget using specialized project
management software to monitor and control the changes.

5. Final Reports and Closing: Provide reports to the project team, clients, and
stakeholders detailing how the project fared concerning the anticipated budget and
timeframe during the final implementation phase. Companies can use this stage to
evaluate the project's accomplishments and pinpoint any areas that require improvement
going forward, which can help the project management cycle in the long run.
Project Completion/Project Closure: Project closure is the final phase of the project
management process, during which a project is formally completed, and all its associated
activities and deliverables are wrapped up. It involves a series of activities and processes
aimed at ensuring that the project meets its objectives, all necessary documentation is
completed, and the project is formally closed out.
Components of Project Closure: Project closure is a critical phase in the project
management process, and it involves several key components to ensure the successful
conclusion of a project. Here's a brief note on the main components of project closure:
1. Deliverable Acceptance: Verify that all project deliverables have been completed as
per the project scope and meet the predefined quality standards. Ensure that the client or
stakeholders formally accept the deliverables.
2. Client or Stakeholder Approval: Obtain formal approval or sign-off from the
client or relevant stakeholders, confirming their satisfaction with the project outcomes.
This approval signifies the project's successful completion.
3. Documentation Management: Finalize and organize all project documentation,
including reports, plans, manuals, contracts, and records. Properly archive and categorize
these documents for future reference and audits.
4. Resource Release: Release project resources that are no longer required, including
team members, equipment, facilities, and budget allocations. Ensure a smooth transition
for team members to other projects or tasks.
5. Financial Closure: Close all financial aspects of the project, which includes settling
outstanding bills, closing contracts, and reconciling the project budget. Accurately
account for all project expenditures.
6. Knowledge Transfer: Facilitate the transfer of knowledge and expertise gained
during the project to relevant individuals or teams. This is particularly important if there
are ongoing operations, maintenance, or future projects related to the project's outcomes.

7. Lessons Learned: Conduct a comprehensive lessons-learned session or review to

capture valuable insights, successes, challenges, and best practices encountered during
the project. Document these lessons to inform and improve future projects.
8. Final Report: Create a final project report that summarizes the project's objectives,
achievements, challenges, recommendations, and any relevant data. The report provides
a comprehensive overview of the project's lifecycle.
Steps in Projection Closure: Project closure is a systematic process that encompasses
various steps to ensure a project is completed efficiently, effectively, and in a manner that
provides valuable insights for future projects. Here are the key steps involved in the project
closure process, presented in a point-paragraph format:
1. Completion of Project Work: The first step involves ensuring that all project tasks
are completed according to the project plan. This includes verifying that all deliverables
meet the established quality standards and project requirements. The project team
reviews the project scope to confirm that all aspects have been addressed and that the
final outputs align with the initial objectives.
2. Client Acceptance and Approval: This step requires obtaining formal acceptance
and approval of the final deliverables from the client or stakeholders. It's important to
address any final feedback, changes, or approvals needed to ensure the client is satisfied
with the outcomes. This stage solidifies the successful completion of the project from the
client's perspective.
3. Contract Closure: All contracts associated with the project are reviewed and closed.
This involves ensuring that all contractual terms have been met, and there are no
outstanding obligations or disputes. It's essential to settle all accounts and confirm that
all parties have fulfilled their contractual responsibilities.
4. Documentation and Archiving: Comprehensive documentation of the project is
crucial. This includes archiving all project-related documents such as plans, reports,
contracts, and communication. Additionally, documenting lessons learned throughout the
project is vital for future reference and for improving organizational project management
practices.
5. Financial Closure: The project's financial aspects are finalized, including closing all
project accounts. A thorough review of the project budget is conducted to ensure all
financial transactions are accounted for and within the approved budget. This may
include conducting a financial audit if required.

6. Resource Release and Reassignment: Resources utilized during the project,

including team members, are released or reassigned. Team members may be allocated to
other projects or roles within the organization, and physical or digital resources are
returned or repurposed as necessary.
7. Performance Reviews: Conducting performance appraisals for the project team is
important to acknowledge their contributions and provide constructive feedback. This
step helps in identifying strengths and areas for improvement, contributing to
professional growth and development.
8. Debriefing and Lessons Learned: A debriefing session with the project team is
held to discuss the successes and challenges of the project. Key lessons learned are
documented and shared within the organization to enhance future project management
processes and decision-making.
9. Celebration and Recognition: Recognizing the efforts and achievements of the
project team is crucial. Organizing a celebration or recognition event helps in
acknowledging the hard work and dedication of the team, fostering morale and a sense of
accomplishment.
10. Project Closure Report: A final project closure report is prepared, summarizing the
overall performance of the project. This report includes an evaluation of how well the
project met its objectives, the effectiveness of the project management processes, and
stakeholder satisfaction.
11. Dissemination of Closure Information: Communicating the project closure to
all stakeholders is essential. This includes providing details on the project outcomes, any
follow-up actions required, and officially announcing the end of the project.
12. Post-Project Review: Finally, a post-project review meeting with key stakeholders is
conducted. This meeting serves as an opportunity to evaluate the project's success, gather
feedback, and apply these insights to future projects for continuous improvement in
project management practices.

Unit-5: Entrepreneur Training: Designing appropriate training programmes to inculcate

Entrepreneurial Spirit, significance of entrepreneurial training, Feedback and Performance
of Trainees, NSIC, Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Telangana Academy for
Skill and Knowledge (TASK)
Entrepreneur Training/ Entrepreneurial Training: Entrepreneurial training refers
to a structured educational or learning process designed to equip individuals with the
knowledge, skills, and mindset needed to become successful entrepreneurs. This training
typically covers a wide range of topics and activities aimed at preparing aspiring
entrepreneurs to identify business opportunities, plan and launch new ventures, and manage
and grow their businesses effectively. The primary goals of entrepreneurial training include
fostering creativity, innovation, problem-solving abilities, and business acumen. It can be
delivered through various formats, including formal classroom education, mentorship
programs, workshops, online courses, and experiential learning opportunities, all with the aim
of helping individuals develop the entrepreneurial skills and mindset required for success in
the world of business and startups.
Objectives of entrepreneurial training: The objectives of entrepreneurial training are
multifaceted and aimed at equipping individuals with the knowledge, skills, and mindset
necessary to thrive as entrepreneurs. These objectives typically include:
1. Developing Entrepreneurial Skills: Entrepreneurial training helps individuals
acquire practical skills such as business planning, financial management, marketing,
sales, negotiation, and leadership.
2. Fostering Innovation: Training programs aim to stimulate creativity and innovation
by encouraging participants to think outside the box and come up with novel business
ideas and solutions.
3. Enhancing Business Knowledge: Entrepreneurs need a solid understanding of
various aspects of business, including market research, operations, legal compliance, and
industry-specific knowledge. Training helps build this foundation.
4. Instilling Problem-Solving Abilities: Entrepreneurs often face challenges and
obstacles. Training helps individuals develop problem-solving and critical-thinking skills
to address these issues effectively.
5. Cultivating Risk Management Skills: Entrepreneurs must assess and manage
risks associated with their ventures. Training teaches risk assessment, risk mitigation, and
decision-making in uncertain environments.

6. Promoting Networking: Many entrepreneurial training programs facilitate

networking opportunities, enabling participants to connect with mentors, investors,
fellow entrepreneurs, and industry experts.
7. Encouraging Adaptability: Entrepreneurship is dynamic, and markets evolve.
Training helps individuals adapt to changing circumstances and adjust their business
strategies accordingly.
8. Building Confidence and Resilience: Entrepreneurship often involves
uncertainty and setbacks. Training aims to boost participants' confidence and resilience
in the face of challenges.
9. Providing Access to Resources: Some training programs offer access to resources
such as funding opportunities, co-working spaces, and business support services.
10. Fostering an Entrepreneurial Mindset: Beyond skills, training programs work
to cultivate an entrepreneurial mindset characterized by a willingness to take calculated
risks, a desire for continuous learning, and a proactive attitude towards seizing
opportunities.
11. Measuring Progress: Many training programs include metrics to assess the progress
and success of participants, helping them track their development as entrepreneurs.
12. Supporting Business Growth: Entrepreneurial training may extend beyond startup
phases to help entrepreneurs scale their businesses, enter new markets, or diversify their
offerings.
13. Promoting Ethical Practices: Some programs emphasize ethical business conduct
and social responsibility, highlighting the importance of integrity in entrepreneurship.
Designing appropriate training programmes to inculcate Entrepreneurial
Spirit: The following are the steps involved in training programmes
1. Needs Assessment: Identify the target audience and assess their specific needs,
including their current knowledge, skills, and entrepreneurial aspirations.
2. Set Clear Objectives: Define clear and measurable objectives for the training
program. What are the specific outcomes you want participants to achieve?
3. Curriculum Development: Develop a comprehensive curriculum that covers
essential entrepreneurship topics. This could include ideation, business planning,
marketing, financial management, legal considerations, and leadership.

4. Teaching Methodology: Determine the teaching methods that will be employed,

such as lectures, workshops, case studies, role-playing, or experiential learning activities.
5. Practical Exercises: Incorporate hands-on exercises and real-world projects that
allow participants to apply what they learn and gain practical experience.
6. Assessment Strategies: Establish methods to assess participants' progress and
learning outcomes. This may involve quizzes, assignments, presentations, or business
plan development.
7. Mentorship and Support: Design a mentorship or coaching component where
participants have access to experienced entrepreneurs or industry experts who can
provide guidance and support.
8. Evaluation and Feedback: Implement feedback mechanisms to collect input from
participants during and after the program. Use this feedback to make necessary
adjustments and improvements.
9. Continuous Improvement: After the program concludes, evaluate its overall
effectiveness in achieving the objectives. Use this evaluation to refine and iterate on the
program for future cohorts.
Significance of entrepreneurial training: Entrepreneurial training holds significant
importance for individuals, communities, and economies, as it contributes to various positive
outcomes and benefits. Here are some key significances of entrepreneurial training:
1. Skill Development: Entrepreneurial training equips individuals with essential skills
such as business planning, marketing, financial management, leadership, and problem-
solving. These skills are crucial for starting and managing successful businesses.
2. Idea Generation: Training programs stimulate creativity and innovation, encouraging
individuals to generate and develop unique business ideas. This is essential for identifying
new market opportunities.
3. Job Creation: Entrepreneurs often create jobs by establishing and expanding their
businesses. Entrepreneurial training can lead to the establishment of new ventures, which,
in turn, generates employment opportunities for others.
4. Economic Growth: A vibrant entrepreneurial ecosystem contributes to economic
growth. Successful startups can lead to increased economic activity, higher tax revenues,
and improved standards of living within a region.
5. Innovation: Entrepreneurs are often at the forefront of innovation, developing new
products, services, and technologies that drive progress in various industries.

6. Poverty Alleviation: Entrepreneurship provides a pathway out of poverty for

individuals who may lack traditional employment opportunities. Entrepreneurial training
helps marginalized and disadvantaged groups improve their economic prospects.
7. Resilience and Adaptability: Entrepreneurs learn to navigate uncertainty and adapt
to changing market conditions. This adaptability is valuable in a rapidly evolving business
landscape.
8. Community Development: Entrepreneurship can revitalize communities by creating
local businesses, supporting local supply chains, and enhancing the overall quality of life.
9. Networking: Entrepreneurial training often includes opportunities for networking with
other entrepreneurs, mentors, investors, and industry experts. These connections can lead
to partnerships, collaborations, and access to resources.
10. Global Competitiveness: Developing a culture of entrepreneurship can make a
country more competitive on the global stage. Innovation and entrepreneurship drive
competitiveness in the global marketplace.
11. Diversity and Inclusion: Entrepreneurial training programs can promote diversity
and inclusion by encouraging participation from individuals of various backgrounds,
ethnicities, genders, and ages.
12. Ethical Business Practices: Many training programs emphasize ethical business
conduct, fostering a culture of integrity and responsible entrepreneurship.
13. Reduction of Brain Drain: In some cases, entrepreneurial training can encourage
talented individuals to stay in their home countries or communities rather than seeking
opportunities abroad.
14. Sustainable Development: Entrepreneurship can be harnessed to address social and
environmental challenges. Training programs that focus on social entrepreneurship and
sustainable business practices contribute to a more sustainable future.
15. Personal Empowerment: Entrepreneurial training empowers individuals to take
control of their own economic destinies, build self-confidence, and pursue their passions
and dreams.
Feedback and performance of trainees: Feedback and the performance of trainees
play a crucial role in entrepreneurship training for both individual development and program
improvement. Here are the key roles they play:
a. Individual Development: The following are the reasons:

i. Self-Improvement: Feedback helps trainees identify their strengths and weaknesses,

allowing them to focus on areas that need improvement. This self-awareness is essential
for personal growth.
ii. Goal Achievement: Performance assessment helps trainees track their progress
toward their goals, enabling them to make necessary adjustments to stay on course.
iii. Motivation: Positive feedback and recognition for achievements can boost trainees'
motivation and confidence, encouraging them to continue their entrepreneurial journey.
iv. Identifying Gaps: Constructive feedback highlights areas where trainees may lack
essential skills or knowledge, prompting them to seek additional training or resources.
b. Program Improvement: The following are the reasons:
i. Effectiveness Assessment: Feedback from trainees provides insights into the

effectiveness of the training program. It helps program organizers understand what works
well and what needs improvement.
ii. Content and Curriculum: Trainees' performance can reveal gaps in the curriculum
or areas where content may need to be adjusted or expanded.
iii. Delivery and Instruction: Feedback on the training delivery, including the quality
of instruction and materials, can guide improvements in how the program is conducted.
iv. Participant Satisfaction: Trainees' feedback and performance assessments indicate
their overall satisfaction with the program. High satisfaction levels are indicative of a
well-designed and executed program.
v. Retention and Attraction: The success and satisfaction of past trainees can
influence future enrolment and program sustainability. Positive feedback and high-
performance rates can attract more participants.
c. Quality Control: The following are the reasons:
i. Consistency: By monitoring trainees' performance and gathering feedback, program

organizers can ensure that the training program maintains consistent quality over time.
ii. Adaptation: Entrepreneurship is a dynamic field, and the feedback received from
trainees can help the program adapt to changing trends, technologies, and market
conditions.
d. Mentoring and Support: The following are the reasons:
i. Tailored Support: Feedback and performance data can guide mentors and coaches in
providing targeted support and advice to individual trainees.

ii. Resource Allocation: Program organizers can allocate resources more effectively
based on the specific needs and performance of trainees, ensuring that support is directed
where it's most needed.
e. Benchmarking and Recognition: The following are the reasons:
i. Benchmarking Success: The performance of past trainees can serve as benchmarks

for future participants, showcasing what can be achieved through the program.
ii. Recognition: High-performing trainees can be recognized and celebrated, inspiring
others and creating role models within the entrepreneurial community.
NSIC: The National Small Industries Corporation (NSIC) is an Indian government-owned
enterprise that was established in 1955 to promote and support the growth of small and micro
enterprises in the country. Here's an overview of its inception, objectives, and functions:
Inception: The inception of NSIC can be traced back to the Second Five-Year Plan of India
(1956-1961), which recognized the importance of small-scale industries (SSIs) in the
economic development of the country. To provide focused support and assistance to these
enterprises, the Government of India decided to establish the National Small Industries
Corporation. NSIC was set up as a separate entity under the Ministry of Industry and
Commerce, and it became operational in 1955.
Objectives: The primary objectives of NSIC are:
a) Promotion of Small-Scale Industries: NSIC aims to promote, foster, and support
the growth and development of small-scale industries in India. It recognizes the
significance of SSIs in generating employment, enhancing industrial production, and
reducing regional imbalances.
b) Facilitating Entrepreneurship: NSIC encourages entrepreneurship and provides
assistance to aspiring entrepreneurs and small business owners in starting and managing
their enterprises.
c) Enhancing Competitiveness: The corporation is dedicated to enhancing the
competitiveness of small-scale and micro enterprises by providing them with the
necessary tools, resources, and support to compete effectively in the market.
d) Credit and Financial Assistance: NSIC plays a role in facilitating credit access
for small and micro enterprises by collaborating with banks and financial institutions to
provide financial assistance and support.

e) Technical and Managerial Support: It offers technical and managerial support to

SSIs through training programs, workshops, and the dissemination of information on best
practices and modern technologies.
Functions: NSIC fulfils its objectives through a range of functions and services, including:
a) Financial Assistance: NSIC provides financial assistance to small and micro
enterprises through various schemes, including credit-linked capital subsidy schemes,
raw material assistance, and marketing support.
b) Technical and Entrepreneurial Training: The corporation organizes training
programs and workshops to enhance the technical and managerial skills of entrepreneurs
and small business owners.
c) Marketing Support: NSIC assists SSIs in marketing their products and services by
participating in trade fairs and exhibitions, providing market information, and facilitating
access to domestic and international markets.
d) Credit Facilitation: It acts as a facilitator between small enterprises and banks or
financial institutions, helping them secure loans and credit facilities at favourable terms.
e) Technology Upgradation: NSIC supports SSIs in adopting modern technologies
and processes to improve productivity and product quality.
f) Quality Certification: The corporation offers quality certification services to help
small enterprises meet quality standards and enhance their competitiveness.
g) Raw Material Assistance: NSIC assists small businesses in procuring raw materials
and inputs at competitive rates, reducing production costs.
h) Export Promotion: It promotes the export capabilities of SSIs by providing
guidance on export procedures, documentation, and incentives.
i) Entrepreneurship Development: NSIC conducts entrepreneurship development
programs to encourage and develop entrepreneurship among individuals interested in
starting their own businesses.
j) Infrastructure Support: The corporation helps SSIs by providing access to
infrastructure facilities such as industrial estates and technology parks.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY): The Pradhan Mantri Kaushal
Vikas Yojana (PMKVY) is a skill development program initiated by the Government of
India. It was launched on July 15, 2015, as part of the Skill India Mission, under the Ministry
of Skill Development and Entrepreneurship (MSDE). PMKVY is aimed at empowering

Indian youth by providing them with industry-relevant skills and making them more
employable or self-employed. Here's an overview of its inception, objectives, and functions:
Inception: PMKVY was conceived as a response to the pressing need to address the
employability gap among India's youth. Despite a large and young workforce, many were
unemployed or underemployed due to a lack of relevant skills. To bridge this gap and provide
avenues for skill development, the Government of India launched PMKVY.
Objectives: The key objectives of PMKVY are as follows:
a) Skill Enhancement: To enhance and upgrade the skills of the Indian workforce,
making them more employable and industry-ready.
b) Recognition of Prior Learning: To recognize and certify the skills acquired
informally by individuals through life and work experiences, providing them with a
formal qualification.
c) Placement Assistance: To assist trained individuals in finding suitable employment
opportunities, either through wage employment or self-employment options.
d) Quality Training: To ensure that the skill training provided under PMKVY meets
industry standards and requirements, contributing to the overall quality of the
workforce.
e) Inclusivity: To reach out to a diverse range of beneficiaries, including school and
college dropouts, women, rural and urban youth, and disadvantaged sections of society,
with a focus on inclusivity and equal opportunity.
f) Standardization: To develop and maintain standardized training curricula, aligning
them with National Occupational Standards (NOS) to ensure uniformity and quality.
Functions: PMKVY functions through a range of activities and components:
a) Short-Term Training: PMKVY offers short-term training programs across various
industry sectors. These training programs are designed to provide quick and focused
skills development.
b) Assessment and Certification: After completing the training, beneficiaries are
assessed by standardized assessment agencies. Those who pass the assessment receive a
government-recognized certificate, enhancing their employability.
c) Recognition of Prior Learning (RPL): RPL is a component of PMKVY that
recognizes and certifies the skills acquired informally by individuals through prior
experiences, allowing them to gain formal recognition and certification for these skills.

d) Financial Support: PMKVY provides financial support to both trainees and training
providers. Trainees receive a stipend to cover their expenses during training, while
training providers receive monetary incentives based on the successful certification of
trainees.
e) Quality Monitoring: PMKVY emphasizes quality training and incorporates third-
party assessments to maintain standards and quality across training centers.
f) Placement Assistance: The program focuses on enhancing the employability of
beneficiaries by providing placement assistance, organizing job fairs, and offering

support for entrepreneurship opportunities.
g) Skill Development Centers: PMKVY operates through a network of training
centers, including Pradhan Mantri Kaushal Kendras (PMKKs), which serve as hubs for
skill development activities.
h) Sector Skill Councils (SSCs): PMKVY courses and training programs are aligned
with the skill requirements identified by SSCs, which represent various industries and
sectors.
Telangana Academy for Skill and Knowledge(TASK): The Telangana Academy
for Skill and Knowledge (TASK) is an initiative of the Government of Telangana, India,
aimed at promoting skill development and enhancing the employability of the state's youth.
Here's an overview of the inception, objectives, and functions of TASK:
Inception: TASK was established in 2015 as a nonprofit organization under the Society
Registration Act to address the growing need for skilled and industry-ready talent in the state
of Telangana. It was initiated by the Department of Information Technology, Electronics and
Communications (ITE&C) of the Government of Telangana.
Objectives: The primary objectives of TASK are as follows:
a) Skill Development: TASK focuses on equipping the youth of Telangana with
relevant skills and competencies that make them more employable in various industries.
b) Industry-Academia Collaboration: It facilitates collaboration between
academic institutions and industries to ensure that educational programs align with
industry needs, resulting in a more job-ready workforce.
c) Employability Enhancement: TASK aims to enhance the employability of
students and job seekers by providing them with training and exposure to industry-
standard practices and technologies.

d) Entrepreneurship Promotion: It supports aspiring entrepreneurs by providing

them with guidance, mentorship, and resources to start and run successful businesses.
Functions: TASK carries out its objectives through various functions and programs:
a) Skill Development Programs: TASK conducts skill development programs,
training sessions, workshops, and bootcamps to impart industry-relevant skills to
students, graduates, and job seekers.
b) Industry Connect: It facilitates interactions between students and industry
professionals through internships, industry visits, and guest lectures. This exposure helps
students understand real-world industry challenges and requirements.
c) Career Guidance: TASK offers career guidance and counseling services to help
students and job seekers make informed decisions about their educational and career
paths.
d) Placement Assistance: The organization collaborates with companies to facilitate
placement opportunities for skilled individuals. It also conducts job fairs and campus
placement drives.
e) Faculty Development: TASK provides training and resources to educators and
faculty members to help them stay updated with the latest industry trends and
technologies.
f) Entrepreneurship Support: It offers support to aspiring entrepreneurs, including
access to mentorship, incubation facilities, and guidance on business development.
g) Certification Programs: TASK conducts certification programs that enhance the
qualifications and skills of participants, making them more attractive to employers.
h) Skill Assessments: The organization conducts skill assessments to measure and
validate the skills acquired by individuals, providing them with recognized certifications.
i) Industry Partnerships: TASK collaborates with various industries, trade
associations, and sector skill councils to ensure that the training and skill development
programs meet industry standards and requirements.
j) Digital Literacy: It promotes digital literacy and digital skill development among the
youth to prepare them for a digital economy.
k) Rural Skill Development: TASK extends its programs to rural areas, empowering
rural youth with skills that improve their employability and contribute to rural
development.

QUESTION BANK

Year III
Semester & Section I-C
Regulations R21
Batch 2021-2025
Course Code A7084
Name of the Course Entrepreneurship Development
Name of the Faculty Mr. Y. Suryanarayana Murthy
Unit-1: Entrepreneurship: Importance and role of entrepreneurship, Qualities of an
entrepreneur, Functions of entrepreneur, Theories of entrepreneurship, Stimulants of
entrepreneurship and Barriers to entrepreneurship, Ethics and Social Responsibility, Role of
entrepreneur in economic development.
S.N CO
Short Answer Questions
o # BL#
CO
1 Define entrepreneurship. L1
1
CO
2 List five qualities of a successful entrepreneur. L1
1
CO
3 What are three basic functions of an entrepreneur? L1
1
CO
4 Name two theories of entrepreneurship. L1
1
CO
5 Identify three stimulants of entrepreneurship. L1
1
CO
6 Mention two barriers to entrepreneurship. L1
1
CO
7 What does ‘ethics in entrepreneurship’ imply? L1
1
Can you recall the connection between entrepreneurship and economic CO
8 L1
development? 1
Name an entrepreneur who has contributed significantly to economic CO
9 L1
development. 1
CO
List the social responsibilities of an entrepreneur.
10 1 L2
CO
Explain the importance of entrepreneurship in the economy.
11 1 L2
CO
Describe how entrepreneurs contribute to job creation.
12 1 L2
CO
Compare and contrast two theories of entrepreneurship.
13 1 L2
CO
14 Discuss the role of ethics in entrepreneurship. L2
1
CO
Interpret the relationship between entrepreneurship and social change.
15 1 L2
S.N CO
Essay Answer Questions:
o # BL#
Discuss the role of entrepreneurship in economic development and CO
1 L2
provide examples of how entrepreneurs contribute to economic growth. 1
Describe the essential qualities of a successful entrepreneur and explain CO
2 L2
why each quality is important. 1
Explain Schumpeter’s theory of entrepreneurship and how it relates to CO
3 L2
innovation in the business world. 1

Outline the various functions an entrepreneur performs in the creation CO

4 L2
and growth of a business. 1
Discuss the ethical challenges entrepreneurs may face and how they can CO
5 L2
uphold social responsibility within their business practices. 1
Apply the concept of risk-taking in entrepreneurship to a real-world
CO
6 scenario where an entrepreneur's decision had a significant impact on L3
1
their business.
Illustrate how an entrepreneur can leverage both stimulants and barriers CO
7 L3
to entrepreneurship to their advantage. 1
Demonstrate how the qualities of an entrepreneur can be reflected in the CO
8 L3
day-to-day operations and culture of a startup. 1
Apply the concept of corporate social responsibility to a business model
CO
9 and propose how it can be integrated into the core functions of an L3
1
entrepreneur.
Using a case study, apply the theory of ‘innovation and entrepreneurship’
CO
10 by Peter Drucker to identify entrepreneurial opportunities in a stagnant L3
1
market.
Analyze the relationship between entrepreneurship and economic
CO
11 development, citing specific examples of how entrepreneurial ventures L4
1
have led to economic change.
Compare and contrast different theories of entrepreneurship and analyze CO
12 L4
their relevance in today’s business environment. 1
Critically analyze the barriers to entrepreneurship in a developing CO
13 L4
economy and discuss strategies to overcome them. 1
Break down the roles of ethics and social responsibility in
CO
14 entrepreneurship and analyze their impact on consumer trust and L4
1
business sustainability.
Analyze a case where an entrepreneur has made a significant social CO
15 L4
impact and dissect the strategies used to achieve this. 1

Year III
Regulations R21
Batch 2021-2025
Course Code A7084
Unit-2: Institutional Support: Role of Government: Role of IDBI, SIDBI, SIDO, NIESBUD, DIC,
Entrepreneurship Development Institute, T-Hub (Telangana Hub).
S.N
Short Answer Questions CO# BL#
o
1 What is the role of IDBI in supporting entrepreneurs? CO2 L1
2 List the functions of SIDBI. CO2 L1
3 Name the services provided by SIDO to entrepreneurs. CO2 L1
4 Identify two objectives of NIESBUD. CO2 L1
5 What is the purpose of the Entrepreneurship Development Institute? CO2 L1
6 Recall the primary focus area of T-Hub. CO2 L1
7 Mention two forms of government support for entrepreneurs. CO2 L1
8 What does DIC stand for? CO2 L1
9 List two benefits of institutional support for entrepreneurs. CO2 L1
10 Name a scheme introduced by the government to support entrepreneurs. CO2 L2
11 Explain how IDBI facilitates entrepreneurial ventures. CO2 L2
12 Describe the contribution of SIDBI to small scale industries. CO2 L2
13 Discuss the significance of NIESBUD in entrepreneurship development. CO2 L2
14 Interpret the role of DICs in regional economic development. CO2 L2
15 Summarize the services offered by T-Hub to startups. CO2 L2
S.N
Essay Answer Questions CO# BL#
o
Describe the functions of the Industrial Development Bank of India (IDBI)
1 CO2 L2
and how it supports entrepreneurs.
Explain the role of the Small Industries Development Bank of India (SIDBI)
2 CO2 L2
in promoting small and medium enterprises.
Outline the objectives of the Small Industries Development Organization
3 CO2 L2
(SIDO) and how it impacts entrepreneurship at the grassroots level.
4 Discuss the mission of the National Institute for Entrepreneurship and CO2 L2
Small Business Development (NIESBUD) and its importance in

entrepreneurship education.
Summarize the contributions of District Industries Centres (DICs) in
5 CO2 L2
fostering local entrepreneurship.
Apply the concept of institutional support to a case study where IDBI
6 CO2 L3
played a pivotal role in a venture’s success.
Demonstrate how an entrepreneur could leverage SIDBI’s financial
7 CO2 L3
products to grow their business.
Propose a strategy for an entrepreneur to utilize the services of SIDO for
8 CO2 L3
market expansion.
Develop a plan for utilizing the resources of a local DIC to establish a
9 CO2 L3
manufacturing startup in a rural area.
Illustrate how NIESBUD's training programs can be tailored to meet the
10 CO2 L3
needs of a budding entrepreneur in a specific industry.
Analyze the effectiveness of the Entrepreneurship Development Institute’s
11 programs in enhancing entrepreneurial skills compared to traditional CO2 L4
business education.
Critically evaluate the role of T-Hub in fostering innovation and whether it
12 CO2 L4
has fulfilled its objectives since inception.
Compare and contrast the approaches of IDBI and SIDBI in supporting
13 entrepreneurship and assess their long-term impacts on the Indian CO2 L4
economy.
Analyze how the government’s role through institutions like SIDO and DIC
14 CO2 L4
can be optimized to better support the burgeoning startup ecosystem.
Conduct a comparative analysis of the support structures provided by
15 NIESBUD and similar international institutions and their relative success CO2 L4
rates in entrepreneurship development.

Year III
Regulations R21
Batch 2021-2025
Course Code A7084
Unit-3: Women Entrepreneurship: Role & Importance, Functions of women entrepreneur, Profile
of Indian Women Entrepreneur, Problems of Women Entrepreneurs, Women Entrepreneurship
Development in India and in Foreign Countries.
S.No Short Answer Questions CO# BL#
CO
1 Define women entrepreneurship.
3 L1
CO
2 List three functions of a women entrepreneur.
3 L1
CO
3 Name a prominent Indian women entrepreneur.
3 L1
CO
4 Identify two problems faced by women entrepreneurs.
3 L1
Mention three sectors where women entrepreneurs are predominantly CO
5
found. 3 L1
CO
6 Recall two schemes for the development of women entrepreneurs in India.
3 L1
CO
7 What is the profile of an Indian women entrepreneur?
3 L1
CO
8 List two differences between male and female entrepreneurs.
3 L1
CO
9 Name an organization that supports women entrepreneurship in India.
3 L1
CO
10 Recall a foreign country known for supporting women entrepreneurs.
3 L1
CO
11 Explain the importance of women entrepreneurship in India.
3 L2
12 Describe the typical challenges faced by women entrepreneurs. CO L2

3
CO L2
13 Discuss the role of government in promoting women entrepreneurship.
3
CO L2
14 Interpret the impact of culture on women entrepreneurship in India.
3
CO L2
15 Summarize the developments in women entrepreneurship in the last decade.
3
CO BL
S.No Essay Answer Questions:
# #
Discuss the role and importance of women entrepreneurs in today's global CO
1 L2
economy. 3
Explain the specific functions that women entrepreneurs typically perform CO
2 L2
that may differ from their male counterparts. 3
Describe the common characteristics and business focuses of successful CO
3 L2
Indian women entrepreneurs. 3
CO
4 Summarize the main problems that women entrepreneurs face in India. L2
3
Outline the key strategies employed by other countries to support the CO
5 L2
development of women entrepreneurship. 3
Apply the concept of gender-sensitive policies to propose how the Indian CO
6 L3
government could enhance support for women entrepreneurs. 3
Illustrate how specific functions of women entrepreneurs contribute to the CO
7 L3
success of their enterprises with real-life examples. 3
Design a business model that addresses the unique challenges faced by CO
8 L3
women entrepreneurs in India. 3
Suggest practical solutions to overcome the problems identified by women CO
9 L3
entrepreneurs in accessing venture capital. 3
Propose how successful strategies from foreign countries could be adapted CO
10 L3
to support women entrepreneurship development in India. 3
Analyze the impact of cultural factors on women's entrepreneurship in India CO
11 L4
compared to another country. 3
Evaluate the success of government initiatives aimed at supporting women CO
12 L4
entrepreneurs in India and suggest areas for improvement. 3
Compare the profiles of Indian women entrepreneurs with those in Silicon CO
13 L4
Valley to determine influential success factors. 3
Critically examine the role of women's networking groups in the
CO
14 entrepreneurial journey of Indian women and their effectiveness in solving L4
3
entrepreneurial challenges.
Analyze the disparities in funding opportunities for men and women CO
15 L4
entrepreneurs and discuss the economic implications of this issue. 3

Year III
Regulations R21
Batch 2021-2025
Course Code A7084
Unit-4: Project Management: Concept of project and classification of project, Project life cycle
identification, Project formulation, Project report, Project evaluation- profitability appraisal,
social cost benefit analysis, feasibility analysis, financial analysis and project financing, Project
implementation, Project completion
S.N CO BL
Short Answer Questions
o # #
CO
1 What is a project?
4 L1
CO L1
2 List four classifications of projects.
4
CO L1
3 Name the five stages of the project life cycle.
4

CO L1
4 Identify three components of project formulation.
4
CO L1
5 Mention two purposes of a project report.
4
CO L1
6 Recall the aspects evaluated in profitability appraisal.
4
CO L1
7 What does social cost benefit analysis involve?
4
CO L1
8 List the steps in project implementation.
4
CO L1
9 Name two methods of project financing.
4
CO L1
10 What is the purpose of project evaluation?
4
CO L2
11 Explain the concept of the project life cycle.
4
CO L2
12 Describe the importance of feasibility analysis in project management.
4
CO L2
13 Discuss how financial analysis impacts project decision-making.
4
CO
14 Interpret the role of a project report in securing financing.
4 L2
CO
15 Summarize the process of project implementation.
4 L2
S.N CO BL
Essay Answer Questions
o # #
Explain the different classifications of projects and the significance of each CO
1 L2
category in project management. 4
Describe the stages of the project life cycle and the key activities performed CO
2 L2
in each stage. 4
Summarize the elements that are typically included in a project report and CO
3 L2
their purposes. 4
Discuss the importance of conducting a feasibility analysis before CO
4 L2
proceeding with a project. 4
Outline the various methods of project financing and how they impact the CO
5 L2
overall project management process. 4
Apply the principles of project life cycle identification to a case study of a CO
6 L3
successful project and illustrate the key decisions made at each stage. 4
Using a hypothetical project idea, demonstrate how to formulate a project CO
7 L3
and prepare an initial project report. 4
Develop a framework for carrying out a social cost-benefit analysis for a CO
8 L3
community-based project. 4
Propose a financial analysis approach for a project in a capital-intensive CO
9 L3
industry. 4
Create a detailed plan for the implementation phase of a technology CO
10 L3
upgrade project in a small business. 4
Analyze the potential risks and returns involved in project financing CO
11 L4
options for infrastructure projects. 4
Compare and contrast the profitability appraisal methods used in project
CO
12 evaluation and determine which is most appropriate for assessing a new L4
4
product development project.
Critically examine a failed project and identify the shortcomings in the CO
13 L4
project life cycle management that led to its failure. 4

Assess the impact of poor project formulation on the subsequent stages of CO

14 L4
the project life cycle using real-world examples. 4
Analyze the challenges of project completion, including the transition to CO
15 L4
operations, and propose strategies to address these challenges effectively. 4
III
Regulations R21

Batch 2021-2025
Course Code A7084
Unit-5: Entrepreneur Training: Designing appropriate training programmes to inculcate
Entrepreneurial Spirit, significance of entrepreneurial training, Feedback and Performance of
Trainees, NSIC, Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Telangana Academy for Skill
and Knowledge (TASK)
S.No Short Answer Questions CO# BL#
1 What is the goal of entrepreneurial training? CO5 L1
2 List two components of an entrepreneurial training program. CO5 L1
3 Name the government scheme focused on skill development in India. CO5 L1
4 Identify two roles of NSIC in entrepreneur training. CO5 L1
5 Mention two objectives of the Pradhan Mantri Kaushal Vikas Yojana. CO5 L1
6 Recall the full form of TASK. CO5 L1
7 List two skills that entrepreneurial training programs aim to develop. CO5 L1
8 Name a method for evaluating the performance of trainees. CO5 L1
9 What is the significance of feedback in training programs? CO5 L1
10 Recall one benefit of entrepreneurial training. CO5 L1
11 Explain how training programs can inculcate an entrepreneurial spirit. CO5 L2
Describe the relationship between entrepreneurial training and business
12 CO5 L2
success.
13 Discuss the significance of the Pradhan Mantri Kaushal Vikas Yojana. CO5 L2
14 Interpret the role of feedback in improving training outcomes. CO5 L2
15 Summarize the approaches TASK uses to enhance skill development. CO5 L2
CO
S.No Essay Answer Questions
# BL#
Discuss the role of training programs in cultivating an entrepreneurial
1 CO5 L2
spirit among aspirants.
Describe the significance of feedback in the process of entrepreneurial
2 CO5 L2
training and the performance of trainees.
Explain how the National Small Industries Corporation (NSIC)
3 CO5 L2
contributes to entrepreneurship training in India.
Outline the objectives of the Pradhan Mantri Kaushal Vikas Yojana
4 CO5 L2
(PMKVY) and its impact on skill development.
Summarize the ways in which the Telangana Academy for Skill and
5 CO5 L2
Knowledge (TASK) supports budding entrepreneurs.
Apply the principles of designing an entrepreneurial training program to
6 CO5 L3
a specific sector, such as technology or agriculture.
Create a feedback system for an entrepreneurial training program that
7 CO5 L3
ensures continuous improvement in the curriculum.
Develop a plan to incorporate NSIC's training modules into a vocational
8 CO5 L3
college's entrepreneurship program.
Propose a strategy for leveraging the PMKVY in addressing the skill gap
9 CO5 L3
in India's startup ecosystem.
Design an assessment framework to measure the performance of
10 CO5 L3
trainees after completing an entrepreneurship training program.
Analyze the challenges faced by entrepreneurship training programs in
11 CO5 L4
rural areas and propose solutions to enhance their effectiveness.
Compare and critically assess the entrepreneurial training approaches of
12 CO5 L4
PMKVY and TASK.
Evaluate the effectiveness of government-sponsored versus privately-
13 CO5 L4
sponsored entrepreneurial training programs in India.

Analyze the success metrics of an entrepreneurial training program and

14 CO5 L4
how they correlate with the long-term success of the participants.
Critically examine the feedback and performance evaluation methods
15 used in entrepreneurship training programs and their impact on trainee CO5 L4
outcomes.

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Entrepreneurship Development(A7084) B.

Tech (IT-C) III-I Semester

Unit-1: Entrepreneurship: Importance and role of entrepreneurship, Qualities of an

Y S N Murthy, VCE Page 1 of 97

Y S N Murthy, VCE Page 2 of 97

Y S N Murthy, VCE Page 3 of 97

Y S N Murthy, VCE Page 4 of 97

4. Creating jobs: Through their businesses, entrepreneurs create employment

Y S N Murthy, VCE Page 5 of 97

Qualities of an entrepreneur: Successful entrepreneurs often possess a unique set of

Y S N Murthy, VCE Page 6 of 97

11. Market Awareness: Successful entrepreneurs have a deep understanding of their

Y S N Murthy, VCE Page 7 of 97

1. Entrepreneurial Functions: The following are the functions:

a) Innovation: An entrepreneur constantly innovates new and existing products. They

a) Investigation of an Idea: An entrepreneur investigates the market needs and

Y S N Murthy, VCE Page 8 of 97

d) Financing the proposition: An entrepreneur ensures short- and long-term

Y S N Murthy, VCE Page 9 of 97

Y S N Murthy, VCE Page 10 of 97

2. Opportunity-Based Theory: This theory posits that entrepreneurship arises when

Y S N Murthy, VCE Page 11 of 97

Y S N Murthy, VCE Page 12 of 97

These stimulants play a crucial role in fostering an entrepreneurial ecosystem and

Y S N Murthy, VCE Page 13 of 97

Y S N Murthy, VCE Page 14 of 97

Y S N Murthy, VCE Page 15 of 97

Y S N Murthy, VCE Page 16 of 97

Y S N Murthy, VCE Page 17 of 97

 Adequate Basic Facilities like safe drinking water, electricity, canteen,

Y S N Murthy, VCE Page 18 of 97

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Y S N Murthy, VCE Page 20 of 97

6. Contributes towards Providing Employment: Entrepreneur introduces new

Institutional Support: Institutional support for entrepreneurship refers to the various

Y S N Murthy, VCE Page 21 of 97

a) Access to Funding: Governments and financial institutions often provide funding

Y S N Murthy, VCE Page 22 of 97

l) Diversity and Inclusion Initiatives: Institutional support may include programs

Y S N Murthy, VCE Page 23 of 97

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c) Refinancing: The bank acts as a refinancing institution, refinancing loans extended by

Y S N Murthy, VCE Page 26 of 97

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a) Financial Support: SIDBI provides various financial products and services,

Y S N Murthy, VCE Page 28 of 97

Y S N Murthy, VCE Page 29 of 97

e) Credit Facilitation: SIDO assists entrepreneurs in accessing credit and finance by

Y S N Murthy, VCE Page 30 of 97

 Faculty and Instructors: Employs a team of faculty, trainers, and instructors.

Objectives of NIESBUD: The following are the objectives:

Y S N Murthy, VCE Page 31 of 97

e) Incubation Support: NIESBUD supports the establishment of business incubators

Y S N Murthy, VCE Page 32 of 97

Y S N Murthy, VCE Page 33 of 97

EDI: The Entrepreneurship Development Institute of India (EDII) is an autonomous

Y S N Murthy, VCE Page 34 of 97

c) Research and Development: The institution conducts research and development

Y S N Murthy, VCE Page 35 of 97

Y S N Murthy, VCE Page 36 of 97

Functions of T-Hub: The following are the functions: