ENTREPRENEUR

AND
ENTREPRENEURSHIP

1
 WHO IS AN ENTREPRENEUR?
 The word "Entrepreneur" is derived from the French verb
'entrepredre'. It means 'to undertake'. In the early 16th century the
Frenchmen who organized and led military expeditions were referred
as 'Entrepreneurs'.
 In the early 18th century French economist Richard Cantillon used
the term entrepreneur to business. Since that time the word
entrepreneur means “one who takes the risk of starting a new
organization or introducing a new idea, product or service to society”.
According to Jean-Baptiste Say(a French economist who first
coined the word entrepreneur in about 1800)

 “An Entrepreneur is the economic agent who unites all means of

production; land of one, the labour of another and the capital of yet
another and thus produces a product”. By selling the product in the
market the pays rent of land, wages to labour, interest on capital and
what remains is his profit". Thus an Entrepreneur is an organizer
who combines various factors of production to produce a socially
viable product

2
 According to Joseph Schumpeter, "An entrepreneur
in an advanced economy is an individual who
introduces something new in the economy, a method
of production not yet tested by experience in the
branch of manufacture concerned, a product with
which consumers are not yet familiar, a new source of
raw material or of new market and the like".

 Capacity to take risks, Ability to own and organize

 Desire and capability to innovate and diversify
(Stepanek, 1962)
3
WHY BECOME AN ENTREPRENEUR ?
1) To be their own boss
2) To pursue their own ideas, and
3) Realize financial rewards.

All the above reasons has to complement each

other and must go hand in hand to become a
successful entrepreneur.

4
 ROLE OF THE ENTREPRENEUR
 Facilitates Overall Development
Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an
enterprise is established, the process of industrialisation is set in motion. This unit will generate
demand for various types of units required by it and there will be so many other units which
require the output of this unit. This leads to overall development of an area due to increase in
demand and setting up of more and more units.

 Generation of new employment

Entrepreneurs provide instant large-scale employment to the unemployed which is an unending
problem of India. Small entrepreneurs provide self employment to artisans, technically qualified
persons and professionals.

 Local and regional economic development

Entrepreneurs promote development of industries. They help to remove regional disparities by
industrializing rural and backward areas. The growth of industries and business in these areas
lead to a large number of public benefits like road transport, health, education, entertainment,
etc. They help to reduce the problems of congestion, slums and population in cities by providing
employment and incomes to them. They help to improve the standard of living in sub-urban and
rural areas.
 Wealth Creation and Distribution
It stimulates impartial redistribution of wealth and income in the interest of the country to
more people and geographic areas, thus giving benefit to larger sections of the society.
Entrepreneurial activities also ensure equitable distribution of income and wealthy by
inculcating the spirit of entrepreneurship amongst people thereby providing them self
employment with limited resources.
5
 ENTREPRENEURSHIP

Entrepreneurship Entrepreneur Enterprise

(Process)
=
(Person) (Object)

 Joseph Schumpeter (1883—1950), the Austrian

economist, associated entrepreneurship
with innovation.
 Arthur Cole (1889—1980), Schumpeter's colleague
at Harvard, associated entrepreneurship with
purposeful activity and the creation
of organizations.
 The management guru, Peter Drucker (1909—
2005) defined entrepreneurship as a discipline.
6
 Entrepreneurship is the ability to create and build
something from practically nothing. Fundamentally, a
human creative activity, it is finding personal
watching, analysing or describing one. It requires the
ability to take calculated risk and reduce the chance
of failure. It is the ability to build a founding team to
complement the entrepreneurial skill and talents.
(J.A. Timmons)
 Process of creating something different, with value,
by devoting necessary time and effort, by assuming
the accompanying financial, psychological, and social
risks, and receiving the resulting rewards of
monetary and personal satisfaction.
(Bowen and Hisrich, 1986).
7
Economists/Researchers
Peter Drucker (1986).
Wiklund (1998)
Cole (1949)
Lumpkin and Dess (1996),
Low and MacMillan (1988),
Gartner (1988)
(Rindova et al. 2009, p. 477)
Definitions
Entrepreneurship is neither a science not
an art, it’s a practice. It's not magic; it's
not mysterious; and it has nothing to do
with genes. It's a discipline and, like any
discipline, it can be learned."
Taking advantage of opportunity by novel
combinations of resources in ways which
have impact on the market
A purposeful activity to initiate, maintain
and aggrandize a profit-oriented business
New entry; the creation of new
enterprises/ organizations
Entrepreneuring is the efforts to bring
about new economic, social, institutional,
and cultural environments through the 8
actions of an individual or group of
individuals.
Entrepreneur Entrepreneurship Enterprise

Process of
Person Object
action

Entrepreneur Entrepreneurship

Refers to a person Refers to a process

Visualizer Vision
Innovator Innovation
Technician Technology
Decision-Maker Decision
Motivator Motivation 9
Risk-taker Risk-taking
FIVE CORE ELEMENTS OF
ENTREPRENEURSHIP
 1) Identify opportunities that no one has earlier
noticed : Creativity and innovation from the core of
entrepreneurship that enables the entrepreneur to think
entirely new ways of working. Creative people are receptive
to new ideas generated by other.
 2) Ability to apply the creativity to business problems
:They understand the people and environment around them.
They can effectively material resources for the same.
 3) Entrepreneur always takes risk. Their main task is
evaluating risk for cutting across accepted boundaries,
breaking rules and doing things in a different manner.
 4) Entrepreneur focus on creating value by doing things in
a cheaper, better and faster manner.
 5) Have a sound belief in their ability to change the
status quo-
10
 CLASSIFICATION/TYPES OF
ENTREPRENEURS
 Following are the classification of entrepreneurs on
the basis of common characteristics Entrepreneur

I II III IV
A. Clarence Danhof B. Arthur H. Cole C. On the basis D. On the basis
Classification Classification of ownership of scale

1. Aggressive/Innovative 1. Empirical 1. Private 1. Small Scale

2. Imitative/ Adoptive 2. Rational 2. Public 2. Large Scale
3. Fabian 3. Cognitive
4. Drone

11
Clarence Danhof Classification
Clarence Danhof classifies entrepreneurs into four types:
 Innovative: Innovative entrepreneurs will be finding out new products using
the new combination of raw materials, will create new market, will hold a
monopoly market, will introduce the new technology of production.
Innovative entrepreneurs are very much helpful for their country because
they bring about a transformation in life style. Example: Steve Jobs the
founder of iPod, Michael Dell, founder of Dell Computers
 Imitative/ Adoptive: He simply adopts successful innovation introduced by
other innovators. Imitative entrepreneurs will be finding out products those
have been invented earlier in other countries but new in that particular
region or country. The imitative entrepreneurs will do business of an existing
product in any other country.Further by adopting the technology, which is
already tested, they generate ample employment avenues for the youth and
therefore they are treated as agent of economic development. Example:
Walton BD. has introduced its motorbikes, refrigerators, televisions and
other electronic appliances in Bangladesh not being the original inventor of
those products
 Fabian: The Fabian entrepreneurs are those who remain unaware of the
change in the era of a particular product they are involved in business with.
But when there market leadership goes down they seem to understand the
change. The Fabian entrepreneur is timid and cautious. He imitates other
innovations only if he is certain that failure to do so may damage his
business. Example: Kodak, a company that happened to be the market
leaders in producing analog cameras but they did not realise the change and
the introduction of the Digicam. For what they lost their leadership, having
lost the leadership they have diversified the business in producing the 12
Digicams instead of producing Analog.
 Drone: These entrepreneurs are conservative or orthodox
in outlook. They never like to get rid of their traditional
business and traditional machinery or systems of the
business. His entrepreneurial activity may be restricted to
just one or two innovations. They refuse to adopt changes in
production even at the risk of reduced returns.
B. Arthur H. Cole Classification
Arthur H. Cole classifies entrepreneurs as:
1. Empirical: He is an entrepreneur hardly introduces
anything revolutionary and follows the principle of rule of
thumb.
2. Rational: The rational entrepreneur is well informed
about the general economic conditions and introduces
changes which look more revolutionary.
3. Cognitive: Cognitive entrepreneur is well informed, draws
upon the advice and services of experts and introduces
changes that reflect complete break from the existing
scheme of enterprise. 13
C. Classification on the Basis of Ownership
1. Private: Private entrepreneur is motivated by profit and it
would not enter those sectors of the economy in which
prospects of monetary rewards are not very bright.
2. Public: In the underdeveloped countries government will
take the initiative to share enterprises.
D. Classification Based on the Scale of Enterprise
1. Small scale: This classification is especially popular in the
underdeveloped countries. Small entrepreneurs do not
possess the necessary talents and resources to initiate large
scale production and introduce revolutionary technological
changes.
2. Large scale: In the developed countries most
entrepreneurs deal with large scale enterprises. They
possess the financial and necessary enterprise to initiate
and introduce new technical changes. The result is the
developed countries are able to sustain and develop a high
level of technical progress. 14
 THEORIES
OF ENTREPRENEURSHIP

1
CLASSIFICATION

Theory

Economic Psychological Sociological

principles principles principles

16
 ECONOMIC PRINCIPLES

 Given by Mark Casson in his book The Entrepreneur—An Economic

Theory
 Demand for entrepreneurship arise from the need to change and the
supply of entrepreneurship is limited by the scarcity of the desired
personal qualities.
 Four Qualities of Entrepreneur
1. Judgmental decisions.
2. Co-ordination of Scarce resources.
3. Motivated by Self Interest.
4. Imagination—entirely innate.

Thus M. Casson says an entrepreneur is a person, who

specializes in taking judgemental decisions about the
coordination of scarce resources.
17
RISK BEARING THEORY OF
KNIGHT
Prof. Knight’s theory is based on economic
principles .
According to Risk –Bearing theory
1. Entrepreneur earns profits because he undertakes risk
2. The main function of an entrepreneur is to act in anticipation of future
events.
3. Uncertainty-bearing is essential to production; therefore it is factor of
production and the reward for it is a part of normal cost of production.
4. Profit is a payment for the assumption of risks the entrepreneur
undertake.

Evaluation of Knights Theory

 Entrepreneur has to cope with the various challenges
which is at once unknown and unpredictable i.e there lies
uncertainty.
INNOVATION THEORY OF
SCHUMPETER(1949)
Entrepreneur is a man who sees opportunity
to innovate i.e. to carry out new combinations or enterprise.

TYPE OF INNOVATIONS
The introduction of new product.
 The introduction of new method of production
 The opening of new market
 The conquest of new source of raw material supply.
 Reorganization of any industry.

19
MENGER’S THEORY OF VALUE ADDED
TRANSFORMATION OF RESOURCES
 According to Carl Menger of Australia (1871),
economic changes do not arise from the
circumstances but from the individual’s
awareness and understanding of the
circumstances. Entrepreneur transforms the
available resources into useful goods and
services.

20
 Delivered baked
Menger’s Model of Value-Added bread is highest-
Transformation of Resources value use

PRIORITY 1
Bread at bakery for
Priority 2 sale has high value

Milled flour for

Priority 3 baker has high
value

Intermediate steps in transformation

Bulk grain from
farmer has low Priority 7
value

Grain in field has

very low value
Priority 8

25
Psychological principles
MCCLELLAND’S ACHIEVEMENT MOTIVATION
THEORY
 This is a psychological theory.
 Developed by David Mc Clelland as an Achievement motivation theory.
Mc Clelland proposed that there are three major needs or motives for
personnel accomplishments. They are as follows:
1. The need for achievement(nAch)
2. The need for power.(nPow)
3. The need for affiliation.(nAff)

Implications of Motives
 Need for affiliation and need for power are driving force towards
entrepreneurship.
 High level of achievement makes an entrepreneur.

 Dreams of entrepreneur appear to be not to ‘get rich’ but to ‘get big’.

22
THEORY OF PERSONAL RESOURCEFULNESS

“Personal resourcefulness” is the belief in one’s own capability for initiating

actions directed towards creation and growth of enterprise. Thus, it
emphasize on initiative rather than reaction.

Implications of Theory of Personal Resourcefulness

Cognitive Function:
Theory pre supposes the activities undertaken by the individuals who require
cognitively mediated behavior like emotions, sentiments, inner feelings, thoughts
and actions are fully appraised of the situation and knowledge which is shaded by
risk and motivational involvement

Human aspects of Psychology:

Different aspects of psychology like human volition, innovation, organization
building, will to power, will to conquer etc. influences
23
THEORY OF ENTREPRENEURIAL
SUPPLY
 It was propounded by John Kunkal in 1965.

 It is based upon experimental psychology and sociological variables.

Entrepreneurism can be dependent upon the following structures in the

economy.

-Demand structure

-Limitation structure

-Labour structure

-Opportunity structure
 This behaviouristic model concerned with the activities of individuals
and their relations to both past, present and social structures and
24
physical condition.
Sociological principles

THEORY OF CULTURAL VALUES

 Propounded by Thomas Cochran.

 Entrepreneurs are not super normal individual but they are society’s model
personality.
iii.
 Performance of entrepreneur influenced by three factors:

i) His own attitude towards his own occupation .

ii) Operational requirement of job.
iii) The role expectations held by the sanctioning groups/society.

25
THEORY OF SOCIAL CHANGE
EVERETT E. HAGEN,
 In his theory of social change propounded how a traditional
society becomes one in which continuing technical progress
takes place. The theory exhorts the following feature which
presumes the entrepreneur’s creativity as the key element
of social transformation and economic growth.
-Presentation of general model of the society- the theory
reveals a general model of the society which considers
interrelationship among physical environment, social
structure, personality and culture.
-Economic Growth : product of social change and political
change :According to Hagen, most of the economic theories
of under development are inadequate.
-Rejection of followers syndrome : Hagen rejected the idea
that the solution to economic development lies in imitating
western technology. So the followers syndrome on the part26
of the entrepreneur, is discouraged.
CONCLUSION

 Every theorist has looked at the entrepreneur and

entrepreneurship on the basis of his perception,
and therefore ,can at best ,provide only a limited
view of entrepreneurial phenomenon. No view is

right or wrong or more or less .

27
CHARACTERISTICS AND TRAITS OF
ENTREPRENEUR
Characteristics Traits
Self-confidence Confidence, independence, individuality,
optimism
Task-oriented Need for achievement, profit oriented
persistence, perseverance, determination, hard-
work, drive energy, initiative
Risk bearer Risk-taking ability, likes challenges
Leadership Leadership behavior, gets along well with
others, responsive to suggestions and critisicms
Originality Innovative, creative, flexible(openness of mind),
resourceful versatile, knowledgeable
Future-oriented Foresight perceptive

Prepared at a workshop on entrepreneurship conducted at the East-

28
west centre, Honolulu in 1977
CHARACTERISTICS
1 Initiative
2 Perceiving opportunities
3 Persistence
4 Information gathering
5 Concern for quality work
6 Commitment to contractual obligations
7 Efficiency orientation
8 Planning
9 Problem solving
10 Self-confidence
11 Expertise
12 Self-critical
13 Persuasion
14 Use of influence strategies
15 Assertiveness
29
16 Monitoring
17 Credibility
INTRAPRENEURSHIP

30
FACEBOOK – 'LIKES‘

 Liking a post or photograph on Facebook is as familiar to

modern culture as reading a book was to a generation
decades ago. But this wasn’t the brainchild of a late night
idea generation session by Mark Zuckerberg and co; it came
from their celebrated 'hack-a-thons', where coders and
engineers are given a platform to create and develop ideas.

 So next time you click the Like button on your Facebook

page, remember its origins. It came about because the
social network embraced a culture of intrapreneurship...
and has been reaping the benefits ever since. 31
SONY – PLAYSTATION
Not many people know this, but the original Sony Playstation was, in
essence, a prototype based on the original Nintendo console. It’s creator?
An 'intrapreneur' working for Sony as a junior member of staff.

Ken Kutaragi had been tinkering with his daughter’s Nintendo in an

attempt to make it more powerful and deliver a better gaming experience,
and eventually he came to the conclusion that an independent soundcard
would improve the quality of game that could be produced. Unfortunately,
his bosses at Sony didn’t quite agree and apparently ignored his ideas; until
the CEO of the company recognised the value in joining the gaming
industry.
Kutaragi was allowed to keep his job at Sony while working on the
prototype alongside Nintendo’s development team. Incredibly, Nintendo
rejected what would become known as the Playstation... and Sony jumped
32
at the chance. The rest, as they say, is history.
3M – THE POST-IT NOTE
 The humble Post-it Note: we’ve all used them to write down phone
numbers, shopping lists and draw crude portraits of the person sitting
at the desk opposite us. But did you know they were created in an act of
early intrapreneurship in 1980?
 3M were one of the first multi-national corporations to recognise the
creativity contained within their workforce, and allowed them to spend
up to 15 per cent of their work time developing new projects. From
here, scientist Spencer Silver developed an adhesive that wasn’t
complete rock solid – it was a more user-friendly 'stickiness'.
 Unfortunately, he struggled to find an end use for it, until some five
years later Art Frey, a colleague at 3M, recognised that the sticky
solution could solve an everyday problem he was experiencing: his
bookmarks falling out of his reading book.
 The Post-it Note was born, and after an intense marketing campaign
became a favourite of offices and stationers across the globe. 33
INTRAPRENEURSHIP
 An intrapreneur is an inside entrepreneur, or
an entrepreneur within a large firm, who uses entrepreneurial
skills without incurring the risks associated with those activities.
Intrapreneurs are usually employees within a company who are
assigned to work on a special idea or project, and they are
instructed to develop the project like an entrepreneur would.
Intrapreneurs usually have the resources and capabilities of the
firm at their disposal.
 Learning organizations encourage intrapreneurship.

 Organizations want to form:

 Product Champions: people who take ownership of a product from
concept to market.
 Skunkworks: a group of intrapreneurs kept separate from the rest of the
organization.
 New Venture Division: allows a division to act as its own smaller
company.
 Rewards for Innovation: link innovation by workers to valued rewards.
34
ENTREPRENEURS V. INTRAPRENEURS
 Entrepreneurs are people that notice
opportunities and take the initiative to mobilize
resources to make new goods and services.
 Intrapreneurs also notice opportunities and take
initiative to mobilize resources, however they
work in large companies and contribute to the
innovation of the firm.

 Intrapreneurs often become entrepreneurs.

35
CHARACTERISTICS OF SUCCESSFUL
INTRAPRENEURS
 1. Money is not their measurement.

 2. They are “greenhousers.”

When you speak about an intriguing idea to an intrapreneur, the idea
never leaves them. It germinates within their mind, and they carry
with them the desire to figure out how to make it work.
 3. They know how to pivot.
Intrapreneurs aren’t afraid to change course, nor do they fear failure. It
isn’t outward bravado that drives them but an inner confidence and
courage that every step takes them closer to their ultimate goal.
 4. They behave authentically and with
integrity.
Most importantly, intrapreneurs exhibit the traits of confidence and
humility 36
STEVE JOBS; THE ULTIMATE INTRAPRENEUR
 By Howard Edward Haller, Ph.D.

Steve Jobs is well-known as a successful and innovative entrepreneur. But by his own definitive
published statement, Jobs was both an entrepreneur and an intrapreneur!
Steve Jobs, Apple’s Chairman was specifically helpful in popularizing the term “intrapreneurship.” In a
September 30, 1985 “Newsweek” article Jobs said of intrapreneurship within Apple,
“The Macintosh team was what is commonly known as intrapreneurship… a group of people going, in
essence, back to the garage, but in a large company.”
 The Apple Macintosh Computer, Intrapreneurially Created

 Later (early 1980’s) Steve Jobs and his handpicked group of twenty Apple Computer engineers
separated themselves from the other Apple employees to innovatively and intrapreneurially create the
Apple Macintosh Computer (the “Mac”). Under Steve Jobs’ personal leadership the MAC group operated
totally independently and without interference from anyone at Apple. Some (Hint: Apple’s, CEO, John
Scully, and the Apple Board of Directors) who were familiar with the situation commented that Jobs
and his Band of Engineers were allowed to play “without adult supervision.”
 It was said that this creative, intrapreneurial, and independent group of intrapreneurs verged on
becoming a “cult” within Apple Computer.
 This separate Apple intrapreneurship venture would ultimately compete with Apple’s mainstay
products. This competition was part of what led Apple’s CEO, John Scully, and venture capitalist
Arthur Rock to become displeased with Jobs’ leadership style and his intrapreneurial independence.
Scully and Rock led the Apple board of directors to fire Steve Jobs (which John Scully later admitted
was mistake on his part). Several years late Steve Jobs later returned to save Apple as its Chairman
until his death 2012.
 To be a successful intrapreneur takes much more than just creativity or an idea. A successful
intrapreneur has to be willing to take real risks at sharing and pushing a unique idea. An intrapreneur
has to be willing to go into work focused on a mission and be willing to be fired at any moment in
defense of their intrapreneurial objective. Steve Jobs clearly demonstrated that virtue.
 Steve Jobs, the ultimate intrapreneur and entrepreneur created a solid string of innovative products
including, but not limited to: Apple Computer, Mac, iPod, iTune, iPad, iPhone, iCloud, Pixar and much
more! 37
SKILLS OF SUCCESSFUL ENTREPRENEURS
• “ The five essential entrepreneurial skills for
success are concentration, discrimination,
organisation, innovation and communication” -
Henry Reed
• Thomas Begley and David Boyed in mid 1980s
have identified five dimensions unique to
entrepreneurs:
1. Entrepreneurs are high in need-achievement
2. Entrepreneurs like to think, they pull their own strings(Control their
own lives, not luck or fate)
3. Entrepreneurs are willing to take moderate risk. This enable to earn
higher returns on assets.
4. Entrepreneurs have the ability to tolerate ambiguity, as may be doing
certain things for the first time.
5. Entrepreneurs have the drive to get more done in less time and if 38
necessary, despite the objections of others.
• These so called entrepreneurial characteristics can be looked
at to determine a set of skills useful for entrepreneur to
possess.
• Group Skills –work and learn together, task force, project
teams
• Technical Skills – technological, writing, mgt, organising.
• Business management skills and analytical skills
• Personal Entrepreneurial Skills- risk, innovative, visionary,
persistent, manage change.
• Behavioral Skills – Motivation, judgment,. Initiative,
confidence, discipline etc.
• Communication Skills and Listening skills
• Soft Skills - eg PEOPLE-
• Problem solving, ethics, open mindedness, persuasiveness,
leadership, educational interest.

39
ENTREPRENEURIAL CHARACTERISTICS
– INDIAN PERSPECTIVE
1. Vision : Dream and visualizing the ways and means
to achieve, visualizing market demands, socio-
economic and technological environment
• Without the vision of making a big mark on the
mobile industry Dhirubhai and now Anil Ambani
could not have made what Reliance Communication
(An Anil Dhirubhai Ambani Group) is today.
2. Knowledge : Conceptual knowledge and
technicalities of technological, operational, financial
& market dynamics.
• Without sound knowledge of computers
Naryanmurthy could not have made Infosys. 40
3. Desire to Succeed
• Constantly work to achieve higher goals.
• Without a desire to succeed constantly Mukesh Ambani would
not have planned to ventured into Retail, Real Estates and
Biotech.
4. Independence
• Needs independence in work and decision making without
following rules of thumb and make their own rules and destiny.
• Without a desire for independence, Sabeer Bhatia would not have
quit his job to start enterprise own his own and created
Hotmail.com and Arzoo.com
5. Optimism
• Highly optimistic about achieving their vision.
• Without optimism Narayanmurthy (who took loan from his wife
as not having enough finances) would not have left a lucrative job
and created Infosys.
6. Value Addition
• Not rule of thumb , but a constant desire to introduce something
new to existing business.
• Create, innovate or even add value to the existing products.
• Without value addition of ‘life time free incoming calls’ Tata 41
Indicom would not have been able to create space in already
saturated mobile markets.
7. Leadership
• Exhibits qualities of a leader -Good Planners,
Organizers, Good Communication Skills, Empathetic
toward their employees, good decision-makers, initiative
to implement plans, result oriented
8. Hard working
• At time also called as workaholics.
• Continuous efforts to achieve success and know that
there is no substitute for hard work
9. Desire to control over their own fate
• Do not move in herds like sheep but pave own paths.
• Do not believe in luck or destiny but create their own
destiny.
10. Risk-Taking Ability
• Frank Night has identified risk-taking ability as the
most integral element in defining entrepreneurial
characteristics.
• View risk as Career risk, financial risk, psychological
42
risk(Stress).
 WOMEN
ENTREPRENEURSHIP
 INTRODUCTION
• Entrepreneur
An entrepreneur is someone who is a risk taker and is
ready to face challenges.
• Women Entrepreneur
 It may be defined as a woman or group of women
who initiate, organise and run a business enterprise.
 Government of India has defined women
entrepreneurs as owning and controlling an
enterprise with a woman having a minimum financial
interest of 51% of the capital and giving atleast 51%
of the employment generated in the enterprise to
women.
 WOMEN ENTREPRENEURS
 A women entrepreneur can be simply someone in the
family business but has changed the way her industry
works.
 She has first or several firsts to her credit and has
helped create an industry.
 She has helped her company explore uncharted
waters and changed the way of working.
 She is the role model for other women in business an
is in a position to change the lives of countless
individuals.

 There are some industries where women are making

their presence felt like IT, pharma, biotech,
advertising, marketing-media,financial service.
…….contd
45
 THE INDIAN APPROACH
When women move forward, the family moves, the
village moves and the nation moves.....
-Pandit Jawaharlal Nehru
 Earlier there were 3 Ks
 Kitchen
 Kids
 Knitting
 Then came 3 Ps
 Powder
 Papad
 Pickles
 At present there are 3 Es
 Electronics
 Energy
 Engineering
IMPORTANCE OF WOMEN ENTREPRENEURS
A good share of the population.
Traditionally outside the domain of economic
activities.
They must be made part of the economic
development, because it will ensure the economic &
social development of the women along with
providing more human resources to strengthen the
economy of the country.
The economic status of women is now accepted as an
indicator of a society’s stage of development.
The reasons are :
 a) Socio-economic independence
 b) Enrolment in higher education and professional
colleges have gone up.
 c) Literacy drive cum IT revolution
 d) Strength in handling people, monitoring, counseling,
multitasking.
 e) Typically credited with creativity & orientation.
 f) Less-aggressive than men thus their decision making
is more thoughtful.

Reasons for low women entrepreneurs

 1) Work-family issues
 2) Marital status
 3) Monetary Reasons
 4) Gender bias
 5) Work-life span of women
 6) Lack of risk taking capability
48
  Started her own company, Biocon, in
her garage with an investment of
`10000 in the year 1978.
 Loan application was turned due the
reasons:
1. Biotechnology was nascent at the
time in India.
2. She was a woman.
3. Her organisation had almost nil
assets
 With hard work and commitment,
Shaw transformed Biocon into one of
the leading biopharmaceutical firms
Dr. Kiran Mazumdar Shaw in India.
 Woman who single-
handedly founded and
made Balaji Telefilms
 Currently the creative
head of Balaji Telefilms
and counted as one of
the top 10 women
entrepreneurs of today.
 Known to be fiercely
protective of her
company and brand, Ekta
is also very professional
and has strong business
acumen.
Ekta Kapoor
  One of the most prominent
personalities of the corporate
world.
 The products launched by her
Company head their way to
leading global stores.
 Her company Shahnaz Husain
Herbals has witnessed
tremendous growth.
 She has received many awards
such as "The Arch of Europe
Gold Star for Quality", "The
2000 Millennium Medal of
Honour", "Rajiv Gandhi
Sadbhavana Award" and many
Shahnaz Husain more.
 A native of Amritsar.
 Kumar has been
designing the wardrobes
com of the three
winning Miss Indias, for
their participation in
International Beauty
Pageants.
 Ritu’s outfits have been
patronized by style icons
such as late Princess
Diana and Jemima Khan.
Ritu Kumar
  Cherish Life creates
apparel and accessories for
pregnant women, young
mothers and infants.
 Cherish Life aims to
accomplish precisely what
the name suggests: to
applaud every pregnant
lady for the life she
creates.
Arathi Kuppu
 BASIC PROBLEMS FACED BY
WOMEN ENTREPRENEURS

 Her being a woman

 Responsibility towards family, society and work
 Male dominated society
 Tough Competition with large scale units
 Lack of business training
 Lack of education
 Low risk bearing ability
 Obtaining credit
 Non-awareness of facilities provided by
government
 Questions by licensing authorities
 Marketing
 Direct & indirect financial support

Nationalized banks, State finance corporation, Small Industries

Development Bank of India (SIDBI)
 Yojna schemes and programmes

Nehru Rozgar Yojna, Jawahar RozgarYojna

 Technological training and awards

Stree Shakti Package by SBI, Entrepreneurship Development

Institute of India, Trade Related Entrepreneurship Assistance
and Development (TREAD)
 Federations and associations

Federation of Indian Women Entrepreneurs (FIWE), Self

Employed Women’s Association (SEWA)
 OTHER SUPPORT AGENCIES
Domestic Agencies:
 Small Industries Development Bank of India,
SIDBI
 Industrial Development Bank of India (IDBI)
 Ministry of Small Scale Industries (SSI),
Government of India.
 National Bank for Agriculture Rural Development
(NABARD)
 Department of Women and Child Development
(WCD), Ministry of HRD, GOI
 Self Help Groups (SHG)
 Mahila Mandali
INTERNATIONAL
AGENCIES:

 United Nations Development Fund for

Women (UNIFEM)
 Asian Development Bank (ADB)
 International Labour Organization (ILO)
 United Nations Conference on Trade and
Development (UNCTAD)
 Center for International Private Enterprises
(CIPE), USA
 Swedish International Development
Cooperation Agency (SIDA), Sweden
 World Trade Organization (WTO)
 WOMEN ORGANISATIONS
SUPPORTING WOMEN
ENTREPRENEURS
Shri Mahila Griha Udhyog Lijjat Papad;
www.lijjat.com
Mahila Bunkar Sahakari Samiti, UP
SABAL: Crafting Exports of Indian
Handicrafts; www.sabalaindia.com
www.indiatogether.org
DISTINCTION BETWEEN AN
ENTREPRENEUR AND A MANAGER
ENTREPRENEURS
1. Status: An entrepreneur is the
owner of his enterprise. He
makes his own investment and
owns his business.
2. Target: The main target of an
entrepreneur is to start his
venture by setting up as a sole-
trader or firm or a company.
MANAGERS
1. Status: A manager is just an
of Science
Prof Parameshwar P Iyer
employee in the enterprise which
is owned and run by
entrepreneur.
2. Target: The main goal or
motive of a manager is give his
services to an enterprise set up by
Indian Institute
someone else i.e. an
entrepreneur.
59
ENTREPRENEURS MANAGERS

3. Decision making: All of the 3. Decision making: While all

policies and strategic decisions, like those managerial, operational
those comprising of expansion decisions which would have impact

of Science
Prof Parameshwar P Iyer
diversification, take-over etc are on the short-and medium-term
taken by the entrepreneur. results are taken by the managers.
4. Rectification of wrong
4.Rectification of wrong decisions: Whereas the wrong
decisions: The wrong decisions decisions taken by the managers
can be amended and rectified by

Indian Institute
taken by the entrepreneur may not
be rectificable and may result in the entrepreneur.
losses or even closure of the unit.

60
 ENTREPRENEURS
5. Innovations: An entrepreneur 5. Innovations: A manager is
innovates and exploits his
innovation commercially.
6. Risk bearing: An
entrepreneur being the owner of his
unit undertakes all risks and
uncertainty of running his
enterprise.
7. Skills: The skill expected from
an entrepreneur is in the form of
creativity, innovation, desire for high
achievement, intuition etc.
MANAGERS
merely an officer or an executive
who is appointed for the promotion
of the unit.
of Science
Prof Parameshwar P Iyer
6. Risk bearing: A manager
doesn’t bear any risk because he is
paid fixed salary.
Indian Institute
7. Skills: Whereas manger depends
on public dealing abilities and
conceptual abilities.
61
 ENTREPRENEURS
8. Qualification: An entrepreneur
doesn’t need to have distinct degree
from a reputed university.
9. Rewards: The reward of an
entrepreneur is the profit earned by
him.
MANAGERS
8. Qualification: On the other
hand, a manager now a days need to
possess degree in the stream of
of Science
Prof Parameshwar P Iyer
management theory and practice.
9. Rewards: A manager gets his
monthly salary as his reward for the
services rendered by him.
Indian Institute
62
TIPS TO BECOME A SUCCESSFUL
ENTREPRENEUR
1. Acquire sufficient and all-round knowledge about an enterprise you intend
to start.
2. Be conservative in calculating income and lavish in calculating expenditure.

of Science
Prof Parameshwar P Iyer
3. Don’t expect quick and easy returns from your venture.
4. Be prepared for delegation of work when needed.
5. Take moderate risks; neither too high nor too low.
6. Plan systematically and march ahead step by step according to the plan to
achieve your goal.
7. Time management is necessary to maximum utilisation of your resources.

Indian Institute
8. Collect maximum information about your competitor on continuous basis.
9. Don’t avoid or run away from problems.
10. Take the help of experts and experienced persons or entrepreneur,when
in doubt.
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