Preparation of Business Plan

• Joj;fosf] k|f/De ubf{ jf Ifdtf clej[l4 ubf{ tyf gof k|

of;sf] yfngL ubf{ k"j{ tof/L jf vfsf tof/ ug'{kb{5
h;nfO{ Joj;foLs of]hgf elgG5 . Joj;foLs of]hgf
Joj;fo ;+rfngsf] dfu{bz{g xf] . cem :ki6 ?kdf
eGg'kbf{ pBldn] Jo;fodf s] ug{ vf]h]sf] xf] eGg]
jf/]df ?k/]vf tof/ ub{5 .
• Joj;fosf] nflu of]hgfsf] tof/L ug'{ eg]sf] Joj;fosf]
cWoog kZrft k|ltj]bg jf k|:tfj tof/ ug'{ xf] . To;}n]
o;nfO{ cfof]hgf k|ltj]bg Project Report klg elgG5 .
o;n] gof Joj;fosf] lqmofsnfkx?sf] ;fy} Joj;fosf]
bL3{sflng j[xt nIo Pj+ p2]Zox?nfO{ ;d]t ;d]6b5 .
• According to Robert D. Hisrisch and Michael P.
Peters "The business plan is a written document
prepared by the entrepreneur that describes all
the relevant external and internal elements
involved in starting a new venture".
• o;k|sf/ gof Joj;fo ;+rfng ug'{k"j{ jf k'/fgf]
Joj;fodf gof kl/jt{g ug{ Joj;fosf] ljj/0f,
ahf/Ls/0f, ljlQo ljj/0f, ;+rfng , Joj:yfkg, :yfg,
;do, nfut, sfo{ljlw cflb ;du| ljifox? ;dfj]z u/]/ tof/
ul/Psf] lnlvt ljj/0fnfO{ Joj;foLs of]hgf elgG5 .
of] Joj;foLs ;+:yfx?sf] nfu Road Map xf] . o;}sf
cfwf/df Joj;fo ;+rfngsf cfwf/x? to ug{ ;lsG5 .
 Elements of Business Plan
• 1) Executive Summary: Joj;foLs of]hgfsf] of] z'?sf]
r/0f xf] . o;df of]hgfsf] ;du| ljj/0fnfO{ ;+lIfKtdf k|:t't
ul/Psf] x'G5 . Jo;foLx?nfO{ ;du| k|ltj]bg k9g ;Dej
gx'g] ePsf]n] of]hgfsf dxTjk"0f{ ;f/;+If]kx? o;
zLif{sdf ;d]l6Psf x'G5g . Jff:tdf nufgLstf{x?
nfO{ cfslif{t ug{ / ?rL hufpg ;/n, :ki6, /
kf/bzL{ efiffdf sfo+sf/L ;f/f+z k|:t't ul/Psf] x'G5 . o;
cGt/ut lgDg zLif{sx? ;dfj]z ul/Psf x'G5g .
• A) Introduction of Business- Establishment date of
company, Goal, objectives, mission and vision,
forms of company, how the company is unique .
• B) Management o; cGt/ut Promoters, Employees
and executive, Skills, ability, experience and
status of employees, coordination of management
team, managerial skills
• C) Distribution of product and services- What is
product, Effort of entrepreneur for marketing
product, Product traits, price and utility, How the
product unique from others etc
• D) Market characteristics- current and potential
market, market size and expected market,
market segmentation, channels of distribution,
probable demand in quality, ability of selling.
e) Financial Summary- revenue, cash flow, cost, initial profit
and loss, sales quality, capital requirement, sources of
capital, investment by promoters, location selection,
2 Business Description: Joj;foLs of]hgfsf] of] bf]>f] r/0fdf
k|:tfljt Jo;fosf] k[i7e"ld j0f{g ul/G5 .o; zLif{sdf Joj;fosf] lj:t[t
ljj/0f pNn]v ul/G5 . o;df ;dfj]z ul/g] ljifox? lgDgfg';f/ 5g .
A) Background and Purpose: o; cGt/ut gof, k'/fgf] jf ;'wfl/Psf]
Joj;fo s'g xf] , k|lt:kwf{sf] ;fdfg s;/L ug]{, Joj;fosf] gfd /
p2]Zo u7g s;/L eof], sDkgLn] dfu cg';f/ pTkfbg ug{ nfu]sf]
xf] sL gof ahf;sf] nflu pTkfbg ug{ nfu]sf] xf] cflb ljifoj:t'x?
pNn]v ul/Psf x'G5g .
b) Objectives: o; cGt/ut Joj;fo ;+rfng ug{ cfjZosLo p2]Zox?
:ki6 ul/G5g .
3) Market Analysis: Joj;foLs of]hgfdf ahf/
ljZn]if0f ug'{ eg]sf] a:t' tyf ;]jf pTkfbg
ug'{k"j{ ;Defljt ahf/ 5 eg]/ :ki6 ug'{ xf] . o;sf
;fy} ahf/nfO{ s;/L Jojl:yt ug]{ / cfkmgf] a:t'sf
nflu s;/L cg's'n agfpg] eGg] jf/]df hfgsf/L k|fKt
ug'{ xf] . o; cGt/ut lgDg ljifoa:t'x?sf] ljZn]if0f
ul/G5 .
A) Overall Market: Market trend, competitors,
foreign competitors, forms of competitions,
market segmentation, pricing procedure,
channel of distribution.
b) Competitive Factors: o;df Joj;fonfO{ k|efj kfg]
{ k|lt:kwf{Tds tTjx?sf] jf/]df JofVof ul/G5 .
Hh:t}M ;Defljt k|j]z, k|lt:yfkg vl/bstf{sf]
zlQm, cfk'lt{stf{sf] zlQm / k|lt:kwf{Tds k|
ltålGbtf cflb jf/]df ljZn]if0f ul/G5 .
C) Macro Environment Influences: o;df
Joj;fonfO{ k|efj kfg]{ jfXo jftfj/0fLo tTjx?sf]
jf/]df ljZn]if0f ul/G5 . Hh:t}M cfly{s,
;fdflhs, /fhgLlts, sfg'gL / k|fljlws cflb
4) Development and Production: o; cGt/ut j:t'
s;/L pTkfbg x'G5 . To;sf] e08f/, pTkfbg Ifdtf,
s'zntf / pTkfbg k|0ffnL cflbsf] jf/]df laZn]if0f
ul/G5 .
• d'Votof o; cGt/ut Raw materials, Mixture of raw
materials, production procedures, inventory
control procedures, human resource for
production, Research and development,
facilities of production (Machinery, land, tools,
transportation etc), Production insurance etc sf]
jf/]df ljZn]if0f ul/G5 .
• 5) Marketing: Joj;foLs of]hgf tof/Lsf] of] r/0fdf
a:t'sf] k|ofKt dfu 5 eGg] jf/]df ljZn]if0f ul/G5 .
Oo; cGt/ut ljz]if u/]/ Market strategy and
resources, Sales forecasting, Target customers,
explanation of products or services cflbsf] jf/]df
ljZn]if0f ul/G5 .
6) Financial Plans: o; r/0fdf Joj;fo ;+rfngsf] nflu
cfjZos kg]{ ljQ / ljlQo >f]tx?sf jf/]df ljZn]if0f
ul/G5 . o; cGt/ut ljQ ;DjlGw lgDg ljZn]if0fx?
kb{5g .
A) Financial Statement: P/L statement, Balance
sheet, Cash flow statement, Break even analysis,
budgeting and ratio analysis etc.
B) Financial Resources: o; cGt/ut Joj;fosf] nflu
cfjZos kg]{ k"FhL / ;DklQsf] Joj:yf jf/]=
ljZn]if0f ul/G5
C) Financial Strategy: o; cGt/ut ljlQo sf]ifsf >f]tx?
(source of fund), sf]ifsf] k|of]u (use of fund)
cflbsf] jf/]df ljZn]if0f ul/G5 .
7) Organization and Management: o; cGt/ut Joj;fo ;+rfngsf]
nflu cfjZos kg]{ hgzlQmx?sf] of]hgf, hgzlQm ;DjlGw
/0fgLlt, ;+u7gsf] jgf}6, sfo{ ljefhg, clwsf/ / lhDd]jf/L cflb
;DjlGw Joj:yfksLo sfo{x? kb{5g .
9) Ownership: Forms of business (Sole trading, Partnership
and company), Equity Position, Capital Structure
9) Critical Risks: o; cGt/ut gof Joj;fo ;+rfng ubf{ cfpg;Sg]
ljleGg lsl;dsf hf]lvdx? , hl6ntfx? / clglZrtfx? Cflbsf] jf/]df
ljZn]if0f ul/G5 . Hh:t}M collection of raw materials,
goods development and production, High production
cost, High innovation cost, technological change, change
in governmental rules, regulation, decrease in price by
competitors, impact of competitors etc.
10) Summary and Conclusion: strategic
guidelines of business, cause of business
success, utilization of resources, estimation of
business sales and profit, ownership and
investment of entrepreneurs and investors.
 11) Scheduling and Milestones

Months
Tasks 1 2 3 4 5
1. Project Report Formation
2. Sanction of bank Loans
3. Land Purchase and Building construction
4. Machinery Installation
5. Trial Production
11) Appendix : cGtdf dfly pNn]lvt tTjx?sf] jf/]df s'g} gof ljj/0f
jf ;"rgfx? ePdf ltlgx?nfO{ kl/lzi6 cGt/ut pNn]v ug'{kb{5 .
Preparation of the business Plan
1) Simple and Short
2) Organize Properly
3) Future Oriented
4) Focus
5) Target Market
6) Capture Interest Wofgfsif{0f
7) Effective Team
8) Use of Expert
9) Critical Risks
10)Appearance of Report
 Chapter – 2
Approaches to Entrepreneurship
• 2.1. Overview of Entrepreneurial Thoughts:
• Entrepreneurship is a interdisciplinary subject.
It is growing and developing as a distinct and
specific field of study. Nowadays, various types
of schools, thoughts, concepts and approaches
are emerged about the entrepreneurship. All
these schools are explained and defined about
the entrepreneur, entrepreneurship and their
activities. Especially these schools are provided
guidelines of entrepreneurs. the main Schools
and thoughts are given below:
• 1) Macro view of Entrepreneurial Schools of Thought:
• The macro view of entrepreneurial school of thought
focuses on external environmental forces and factors
that are affecting of entrepreneurship from outside.
• The political, economical, technological, cultural and
social factors, that are located outside of
entrepreneurship, the entrepreneurs cannot,
controlled of them. These external factors are
affecting strongly to development and creating of
entrepreneurship.
• These factors are creating both opportunities and
challenging to the entrepreneur. Therefore,
entrepreneurs always, ready for adopt external
environment and cerates their objectives, goals and
strategy according to environment. The main macro
views of entrepreneurial school of thoughts are
following:
• a) Environmental School of Thought: Environmental
school of thought is the broadest thought. This school
of thought deals with the external environmental
factors that are affecting a potential entrepreneur's
lifestyle.
• The interest, wants, opinion and activities are denotes
of entrepreneur's lifestyle. So, entrepreneurs lifestyle
should be affecting external factors by positively or
negatively.
• Environmental school of thought focuses on social
norms, values, language, culture and tradition. All these
factors are creating social and cultural environment and
affecting developing of entrepreneurs.
• The environmental factors are influencing entrepreneur
activities. The desire of become entrepreneur is
influenced by following factors.
• i) Freedom and Support: If there is freedom
and supporting environment an entrepreneur,
can creates of new ideas, methods of job
working and idea of coordination, and then he
should makes entrepreneurship carrier.
• ii) Social Group: The social groups denotes
family, friends and relatives. These groups are
influences the desire to become entrepreneur.
• b) Capital School of Thought: The other
important thought is capital school of thought.
This thought is focuses on formation,
mobilization and utilization of capital.
• Capital is a means of production. It is major
factor and perquisite for the development of
entrepreneurship. The establishment and
diversified of a business we cannot imagine
without capital.
• The availability of adequate capital increases
entrepreneurial activity and the lack of capital
limits the entrepreneurship. In this regards,
capital school of thought focuses on the
search for seed capital and growth capital by
the entrepreneur.
• This school of thought is based on the capital
seeking and utilization process. Capital
management process coordinate and
combined of production means. When the
capital is increase, the capital formation
should be increase. When the capital is low
point, then capital formation should be low
point. Therefore, the high availability of capital
increases production activities.
• c) Displacement School of Thought: The other macro
view of entrepreneurial school of thought is
displacement school of thought. This thought
focuses on group phenomena.
• It means, the hinder and helps of group a person can
become entrepreneur. This school of thought focuses
on negative aspect of group phenomena where
someone is displaced from the group.
• When the person displace he feels alone and he has
to appeared frustration. Then, he self motivated and
does something is new. He is doing something for
their separate identity whereby developed
entrepreneurship. By the way, a person displace by
following causes:
• a) Political Displacement- political displacement is
caused by factors of governmental rules, regulation,
policy and programmes. These rules and regulations
limit or redirect certain entrepreneurship.
• b) Cultural Displacement: Cultural displacement is
caused by social groups. This displacement specially
used in minority groups. These types of group are
made by religion, culture, casts, gender and sex. This
experience will turn various individuals into
entrepreneurship.
• c) Economic Displacement: Economic displacement is
caused by economic situation such as economic
depression, recession, job loss, lack of capital. Persons
affected by such displacement and turn to
entrepreneurship.
• 2) Micro View of Entrepreneurial School of Thought:
• pBdLo ljrf/wf/fsf] ;'Id b[li6M pBdLo ljrf/wf/fsf] o;
b[li6sf]0fn] pBdzLntfsf] >hgf, ljsf; / lj:tf/df cfGtl/s
jftfj/0fLo zlQmx? tyf tTjx?sf] k|efj /x]sf] x'G5 eg]/ k'li6
u/]sf] x'G5 . cfGtl/s jftfj/0fLo tTjx? cGt/ut Joj;fosf]
sfo{If]q, nIox?, agf}6, / cGo ;/f]sf/jfnfkIfx? kb{5g .
oLlgx? Joj;fosf] lgoGq0fdf /x]sf x'G5g . o; cGt/ut lgDg
ljrf/wf/fx? kb{5g .
• A) Entrepreneurial Trait School of Thought pBldo u'0f
ljrf/wf/fM of] ljrf/wf/f cg';f/ pBlddf /x]sf s]xL ljlzi6
u'0fx?sf] cfwf/df pBdzLntfsf] ljsf; / lj:tf/ x'g ;Sb5 . ;kmntf
xfl;n u/]sf pBldx?n] s]xL ljz]if u'0fx?sf] cfwf/df g}
;kmntf k|fKt u/]sf] b]lvG5 . pQm u'0fx? lgDgfg';f/ 5g .
• 1) Achievement
• 2) Creativity
• 3) Determination b[9tf
• 4) Technical Knowledge
• 5) Family Development
• 6) Educational Development
b) Venture Opportunity School of Thought
Joj;foLs cj;/ ljrf/wf/fM of] ljrf/wf/fn] Joj;foLs
ljsf;sf] qmddf k|fKt x'g] cj;/x?sf] kIfdf hf]8
lbG5 . pBldo ;kmntfsf nflu ;xL ahf/df ;xL
;dodf ;xL ljrf/sf] ljsf; ug'{kg]{ o; ljrf/wf/fsf]
dfGotf /x]s]f 5 . Jo;foLs cj;/ k|flKtsf] nflu
l;h{gzLntf / ahf/ k|lt ;r]ttf ckgfpg' kb{5 . ;fy}
gof ljrf/sf] vf]hL, gof cjwf/0ffx?sf] ljsf; / cj;/x?
sf] ;xL lsl;dn] sfof{Gjog u/L nfe xfl;n ug'{ g}
Joj;foLs cj;/ ljrf/wf/fsf] k|d'v ljz]iftf xf] .
Factors Affecting Entrepreneurship Growth

• Entrepreneurship development depends on

different factors. Especially, social, cultural,
political, economic, technological and
psychological factors has been affecting
entrepreneurship growth. These factors may have
both positive and negative impacts on the
emergence of entrepreneurship. The positive
effect promotes entrepreneurship whereas the
negative effect hampers. For analytical proposes,
the factors are grouped and discussed under two
categories.
A) Economic Factors:
1) Economic System
• Free Market Economy
• Planned Economy
• Mixed Economy
2) Capital
3) Human Resource/ Labour
4) Raw Materials
5) Market
6) Competition
7) Franchising
B Non Economic Factors
1) Political Factors
• Government policies
• Government Action
• Government Regulations
2) Social Factors
• Legitimacy of entrepreneurship
• Social mobility
• Marginality
• Security
• Social Change
3) Psychological Factors
(attitudes, perception, understanding, thoughts,
concepts and ideas)
4) Technological Factors
• Level of Technology
(Labour based and Capital based)
• Pace of Technology Change
• Research and Development
• E-commerce
 Factors Affecting Entrepreneurship Growth

Economic Factors Non-Economic Factors

Economic system Political factors

Capital – Social factors
HR labour -Psychological factors
Raw materials -Technological factors
Market
Competition
 Emerging Trends in Entrepreneurship
• The emerging trend of entrepreneurship focus
on optimum utilization of internet and e-
commerce. Revolution and development of
technology and communication made their
exercise possible in business world. The
utilization and effect of internet and e-
commerce are increasing for development of
entrepreneurship. Here, discussed about
internet and e-commerce in details.
1) Internet: internet is a worldwide web of computer
networks. It connects millions of computers all over
the world. It is the largest source of information
which is shared worldwide. The computer users
around the world can obtain and share information
on any topic, product or service using the internet.
More new ventures are introducing through internet.
Entrepreneurs are getting benefits by using internet
in their business. Internet using for product display,
customer identification, advertising of product,
sales of goods, customer service and
communication by email.
Internet is a simple tool for doing e-business. It
provides low cost, extremely efficient way to
display merchandise, attract more and more
customers and handle purchase order.
It helps entrepreneurs to establish smooth
relationship with stakeholders, suppliers,
middleman, competitors customers and other
parties. Entrepreneurs can reach to new and
potential customers and gather business related
information quickly.
The internet is gaining popularity in recent years as
an important direct marketing channel.
• Nowadays, many persons are involving in
entrepreneurial works as internet entrepreneurs.
Some famous web entrepreneurs are Mark
jukerberg (face book), Alex Tue (Million dollar
home page), Sabir Bhatia (Hotmail), Larry Page and
Sergeyi Brin (Google)
Features of Internet
1) Easy to use
2) Universal Access
3) Freedom of speech
4) The digital facility
5) Group communication
6) Common space
• 2) E-commerce: E-commerce is short form of
electronic commerce. It is also known as
internet marketing or online shopping. It
compilations the business electronically or
over internet. It also defined as the process of
buying, selling, or exchanging products,
services and information through computer
network. It provides new information about
the goods and services. It is helpful to
consumers for ordering of goods.
• E-commerce (electronic commerce or EC) is the
buying and selling of goods and services, or the
transmitting of funds or data, over an electronic
network, primarily the Internet.
• E-commerce is performing a variety of
applications, such as email, fax, online catalogs
and shopping carts, Electronic Data Interchange
(EDI), File Transfer Protocol and Web services.
Most of this is business to business with some
companies attempting to use email and fax for
unsolicited ads consumers and other business
prospects, as well as to send out e-newsletters
to subscribers.
E-commerce is not includes just the buying and
selling of goods and services but also
servicing customers, collaborating with
business partners and conducting electronic
transactions within an organization.
The major transactional types of e- commerce
include Business to business (B2B), business to
consumer (B2C), Business to business to
consumer (B2B2C), Consumer to business
(C2B), consumer to consumer (C2C)
1.6. Concept of Women Entrepreneurship
• It is said that, women are half part of life, one side of coin, a
wheel of a cart. A Chinese leader Mao Utse Tung said women
hold up half the sky. It is because half of the world's population
is women. Women regarded better half of the society.
• In traditional societies, women's work was regarded to remain
with the four walls of the house and to undertake the domestic
works. But now women have come outside the wall of house
due to the expansion of education, communication,
transportation and awareness.
• Today's women have to begun to be involved in almost all
activities even in small numbers. They also started business
activities. All these activities are regarded the women
entrepreneurship.
• Women entrepreneurship is the process of
creating new venture, by women through risk
taking, uncertainty bearing, innovating and
managing for rewards. It refers to the women for
independent business activities.
• Women entrepreneurship may be defined as a
women or group of women who initiate, organize,
and run a business enterprise.
• In this way the women who think about new
venture, identify new opportunities and
implement them, combine and organize the
factors of production, run business, taking risk
and uncertainty are known as women
entrepreneurship
• According to Pandit Jawaharlal Neharu- When
women move forward, the family moves, the
village moves and the nation moves.
• Of course this statement denotes that the
creativity, innovation, dedication and
contribution of women in society and nation.
Worldwide, the women are concerning
different areas of activities like academics,
politics, administration, peace, social work and
so on.
• According to Kamal Singh " Women
entrepreneur as a confident, innovative and
creative women capable of achieving self
economic independence individually or in
collaboration, generates employment
opportunities for others through initiating,
establishing and running the enterprise by
keeping pace with her personal, family and
social life.
• According to Joseph Schumpeter " Women
entrepreneurs are women who innovate,
imitate or adopt a business activity."
• In conclusion, Women entrepreneurs or
entrepreneurship are those women who think
of a business enterprise, initiate it, organize
and integrates the factors of production,
operate the enterprise and undertake risks
and handle economic uncertainty involved in
running a business enterprise.
1.7. Problems of Women Entrepreneurship

• Women entrepreneurs have many challenges

and threats for establishment of ventures.
They have seen internal and external
problems. Some problems are general that
faced by all entrepreneurs. Besides, some
problems are specific which are bearing by
women entrepreneurs. The important
problems are described as below:
• 1) Problem of Finance: Finance is regarded as
life blood to the enterprise. Women
entrepreneurs' have to lack of adequate
capital. Their access to external resources of
finance is limited. They do not have right to
property for use as collateral to get bank
loans. The banks and financial institutions
consider women as less creditworthy. They
lack of trace record in financial performance.
• 2) Social and family pressure: The social or
family pressure provided limit opportunities.
The main role of women is bring up children,
look after the household and maintain family
unit. Due to this cause, the women cannot
work fulltime and efforts for new venture.
Most of the male, they do not like to see their
wives other persons. This is inevitable for
business and employment.
 1.5. Role of Entrepreneurship in Economic
Dev
• The word economic development is defined by various
economists in various ways. In past, economic development
was defined in terms of increase in per capita income. At
present, it is defined as a sustainable increase in living
standards. It includes material consumption, education,
health and environmental protection.
The role of entrepreneurs is important for the economic
development. They are creating and innovating new
opportunities, pulling human, capital, material and
information resources to convert opportunities into new
ventures, introduce modern technology and produced new
products.
• Therefore, the entrepreneurs/
entrepreneurship are backbone of the
economic development. They plays following
roles and importance for economic
development.
• 1) Capital Formation: Capital is an important
forces for economic development. It refers to
the addition made to the stock of capital
goods. The entrepreneurship promotes capital
formation by mobilizing the idle saving money
of the people.
• The entrepreneurs' activities are developing,
innovating and introducing of new ventures,
industries and business forms. They are
establishing and integrating of Banks, schools,
agriculture based forms, financial companies,
insurance companies and other capital
markets from different areas. All these forms
are formulating of capital that helps to
economical development.
• 2) Creating Employment: Employment is one
of the important aspect of economic
development. The entrepreneurs are creating,
developing, searching and innovating new
ventures, business activities, firms and
organizations through entrepreneurship. The
development of entrepreneurship is helpful to
solve the unemployment problem of the
nation. Every new business is a source of
employment to people with different abilities,
skills and qualifications.
• 3) Increase in Productivity: Entrepreneurs
make effective and optimum utilization of
natural and physical resources that are
available in the country. They use to new
technology and methods of production. If the
resources were used in properly it reduced
production cost, which increase production
and productivity.
• 4) Balance in Regional Development: The
entrepreneurs operated new ventures and
enterprises in the different part of the country
on the basis of availability of resources. The
government granted incentives and facilities
to the backward region for formulation of
ventures. It helps to achieve removing
regional disparity and balanced regional
development.
• 5) Backward and Forward Linkage: The
entrepreneurs establish backward linkage with the
suppliers and forward linkage with the distributors.
The backward linkage encourage making investment
after production stage whereas backward linkage is
affects the earlier stage of production. Any
investment may have both forward and backward
linkages.

• 6) Promote Foreign Trade: Foreign trade is the

engine of development. Entrepreneurs promote
foreign trade by initiating new products. It helps to
reduce of disequilibrium in balance of payment and
promote the foreign exchange.
• 7) Utilization of resources: Entrepreneurship
has been playing important role for utilization
of natural and non natural resources. Some
countries have natural resources and some
have human resource, science and technology.
The appropriate utilization of forest, water,
agriculture, minerals and other resources are
helpful for development of enterprises as well
as the economic development of nation.
• 8) Increase in National income: Entrepreneurs
always keep their eyes open for opportunities.
They explore and utilize opportunities, make
effective resource mobilization of capital and
skill, raise new goods and services and
develop markets for growth of the economy.
The goods and services produced for
consumption within the country and to meet
the demand of exports. Thus the national
income is increased and increase in national
income is certainly a sign of economic growth.
• 9) Improve in living standard: The
Entrepreneurs are playing a key role for the
change in living standard. They are adopting
latest innovations and producing wide variety
of goods and services in large scale that too at
a lower cost. This enables the people to
available better quality goods at lowest prices.
It increases living standard.
• 10) Industrialization: Entrepreneurial
activities are the prime sources of
industrialization in developing countries. Such
activities are providing employment
opportunities. Unemployed people who are
only depend on agriculture activities; they
transfer in non agriculture and business
activities. They learnt new skills and earn
money. New technology and methods are
invented and produce cheapest and quality
goods.
 Types of Entrepreneur
An entrepreneur is an innovator, researcher and
developer who recognizes opportunities, converts
those opportunities into workable and marketable
ideas and methods. In this sense, there is no typical
kind of entrepreneurs. For the study, the
Entrepreneurs are classified into following groups:
A) Innovating Entrepreneurs: Innovating
entrepreneurs are classified into following types:
1) Innovating entrepreneurs: The
entrepreneurs, who introduce new products,
install new method of production, discover
new market, reorganize the enterprise,
extend new sources of raw materials and
take the change in business activities and
speed are known as innovating
entrepreneurs.
They are aggressive in experiment. They need a
certain level of development to keep going.
• b) Imitative Entrepreneur: The entrepreneurs, who
copied the innovations made by the innovative
entrepreneurs are known as imitative entrepreneurs.
• They do not innovate themselves, but copied
techniques and technology that are innovated by
others.
• They operate venture in limited resources. They prefer
to imitate technology available in developed countries.
• Specially, the developing and under developing
countries are creating imitative entrepreneurs lacking
of capital, innovation, research, technology and human
resource.
3) Fabian entrepreneurs: The entrepreneurs who
don't cared and concerned with their
experiment and create doubtful nature are
known as Fabian entrepreneurs.
They do not like change and want to operate their
business in traditional way. They don't coped
others innovation but they can imitate of
innovation when the business is going to failure.
They believe in fact and Fabian. They follow the
footsteps of the predecessor. Such
entrepreneurs are found in joint family
business.
• 4) Drone Entrepreneurs: The entrepreneurs
who rejected and refused to innovation. They
are struggling for survive. They don't make
change in production techniques, methods
and technology even their profit is going
decline are known as drone entrepreneurs.
• They are still and traditional. But they are
trying to existence. such entrepreneurs may
even suffer from losses but they are not ready
to make change in their existing production
method.
5) Forced entrepreneurs: On the causes of
different force and situation, they become
entrepreneurs are known as forced
entrepreneurs.
Forced entrepreneurs are the victim of
circumstances. They are forcedly become
entrepreneurs to fashion their own economic
livelihood.
They start a new venture create self
employment based on innovation
6) Empire Builder Entrepreneurs: (pravutoo nirwan
entrepreneurship) The entrepreneurs who are
formulating and developing new ventures one by
one are known as empire builder entrepreneurs.
They maintain ownership and controlled all area of
business.
They do not get involved in day to day activities but
keep strategic control.
They build on the strength of existing venture to
promote new ones. They innovate as well as
imitate to build an empire.
B) Behavioural Entrepreneurs: The Behaviour
entrepreneurs can be classified in to following
basis:
1) Sole entrepreneurs: the entrepreneurs who
formulates and develops there venture alone
are known as sole entrepreneurs.
They appointed a few staffs for supporting. In
the beginning, most of the entrepreneurs
start their enterprises working alone.
2) Active and sleeping entrepreneurs: The
entrepreneurs start and carry on an enterprise
as a joint venture . They operate with
partners. All partners are actively participative
in management and controlling in the
operation of business as a team are called
active entrepreneurs.
The entrepreneurs who only contribute funds to
the enterprise but do not actively participate
in business activity are called sleeping
entrepreneurs.
3) Inventor Entrepreneurs: The entrepreneurs
are drawn to new ideas and finding way to get
ahead of the competition.
They may be idealistic and get carried away with
their enthusiasm. On the basis of knowledge,
ability, skills and qualification they are
inventing technology, method, strategy and
ideas. Therefore they also called scientist
entrepreneurs.
4) Challenger Entrepreneurs: These are the
entrepreneurs who like challenges, plunges
and risks are known as challenger
entrepreneurs. When one challenge seems to
be met they begin to look for new challenges.
They are challenges seekers.
5) Buyer Entrepreneurs: These are the
entrepreneurs who don't like to bear much
risk and challenges. They like to buy out an on
going business.
• 6) Life timer entrepreneurs: These
entrepreneurs take business as an integral
part to their life. They think business is a life.
Usually, the family enterprise and business
which mainly depend on exercise of personal
skill fall in this type entrepreneurs
c) Focus Group Entrepreneurs: The Behaviour
entrepreneurs can be classified in to following basis:
1) Women Entrepreneurs: The women involved in
independent business are known as women
entrepreneurs. Development of consciousness and
desire for independence makes them entrepreneurs.
2) Minority Entrepreneurs: On the basis of religion,
culture, casts, social values and norms , the people
are classified into minority groups. The Asian,
Hispanics and blacks are regards as minority in USA.
Similarly, Tibetan and Bhutanese refugees are regarded
as minority in Nepal. They are involved in
entrepreneurial activities which is called minority
entrepreneurs.
3) Immigrant Entrepreneurs: The entrepreneurs
who runs business or entrepreneurial
activates from one country to another country
are known as immigrant entrepreneurs.
Generally the people of developing countries are
found to have running business in the
developed countries.
USA has been a centre of diverse culture. Due to
the economic freedom many immigrants have
been attracted towards this country.
• 4) Part time entrepreneurs: The persons who not
sacrificed fixed salary but also run their
independent business are known as part time
entrepreneurs.
• Entrepreneurship is aimed at making extra money
They also known as Moonlighting entrepreneur.
• Such entrepreneurs can be found in the
developing countries including Nepal. Generally
who are unable to meet family expenses from
their jobs are involved in small business is called
part time entrepreneurs.
5) Home based Entrepreneurs: The entrepreneurs
who run business in their house are called home
based entrepreneurs.
This types of entrepreneurs are increasing very rapidly.
In past time, job less people established such types
of business. But the situation has changed now but
It has been opened to all ares. The women and part
time entrepreneurs are contributing in the growth of
the home based business.
Different technologies such as computer, fax, internet,
email, telephone, mobile cell and photocopy
machine has been increasing home based
entrepreneurs.
 Chapter – 1
Overview of Entrepreneurship
Generally, Entrepreneurship is the activity, what an
entrepreneur does. An entrepreneur means a
person who sets up his/her own business,
enterprises and firms.

In this regards, entrepreneurship is the act of being an

entrepreneur. He/she is concerned with collecting
of production materials, utilizing them by new
technology and bearing of risk for selling of goods.
It means, entrepreneurship is the innovative working
behaviour of entrepreneurs. It is the act of risk
taking, innovation and act of thrill seeking.

• The word entrepreneur originates from the French

word, entreprendre, which means "to undertake."

• In a business context, it means to start a business.

The Merriam-Webster Dictionary presents
the definition of an entrepreneur as one who
organizes, manages, and assumes the risks of a
business or enterprise.
• But the definition of entrepreneurship is not limited
with the activities of an entrepreneur. It has broad
meaning. It is the process of creating new ventures.

• It is concerned with creativity and innovation. It is

identifying new opportunities in the market and
arranging human and non human resources for
better gains.

• Furthermore, It provides option for self

employment to an individual and creates
employment opportunity for others.
• Entrepreneurship is the procedure of starting
a business or other organization. The
entrepreneur develops a business model,
acquires the human and other required
resources, and is fully responsible for its
success or failure.

Entrepreneurship involves not only the

process that leads to the setting up of a
business entity but also the expansion and
development of an on going concern.
• The study of entrepreneurship is
concerned with the entrepreneurial
behavior, the dynamics of business set up
and expansion and development of
business.
• J. B. Say (1803) - Entrepreneur is a person that
collects the land, labour and other resources
and use to them in productive activities. Again
sales them in market and what income or
profit achieved he/she used to payment in
bank interest, land rent and labour wages. It
means entrepreneur is an organizer.
Adam Smith (1776) - An entrepreneur is a
person who acts as agent in transforming
demand into supply.

Alfred Marshall (1936) - The process of

entrepreneurship or business development
is incremental or evolutionary . It evolves
from sole proprietorship to a public
company.
According to Peter Drucker- Entrepreneurship is
gathering and using resources to produce
results. It is allocating resources to
opportunities rather than to problems.
According to Jack Kaplan- " Entrepreneurship is
the process of planning, organizing, operating
and assuming the risk of a new venture.
• According to Bengamin Higgins-
Entrepreneurship is meant the function of
seeking investment and production
opportunities, organizing enterprise to
undertake a new production process, rising
capital, hiring of labour, arranging for the
supply of raw materials, finding a site,
combining the factors of production in a going
concern, introducing new techniques and
selecting top managers for day to day
operation.
Besides, Entrepreneurship is a process of
innovation and new venture creation
through four major dimensions –
individual, organizational, environmental
and process.
The entrepreneurship is aided by
collaborative networks in government,
education and institutions.
Shortly:
a) Entrepreneurship is the function of establish
and operation of new enterprise. It is start
from business planning, implementation of
planning and receiving of feedback from
different efforts.

b) Entrepreneurship is a continuous process. It

denotes how does a person bearing of risk, how
to create new ideas and opportunities.
c) Entrepreneurship is the macro concept, which
is concerned with self evaluation, creation of
new ideas and opportunities, Excellency
development and birth to new enterprise.

d) Entrepreneurship is the mix of production

resources. It is the efforts of how to decrease
production cost, how to increase in quality
and how to hold market.
•  
 1.2. Concept and Meaning of Entrepreneur

• An entrepreneur is a person who creates

his/her own business, organizes, operates and
shares the risk of business in market.

• He/she perceives an ideas and brings together

human resources, materials and arranges
necessary capital needed for business. He/she
also possesses stetting up of new ventures.
An entrepreneur is the originator of a business
venture. He/she responsible for such economic
decisions on what is produces, how much
produce and where is uses an appropriate
technology.

It means entrepreneur is a personality who sets up

his/her own business, enterprises and new
venture undertaking with an objective to make
profit. They create something new to provide
value to customers.
According to Richard Cantilena "An
entrepreneur is a person who pays a certain
price for a product to resell it at an uncertain
price, thereby making decisions about
obtaining and using the resources while
consequently admitting the risk of enterprise.

According to Encyclopedia Britannica "

Entrepreneur is defined as an individual who
bears the risk of operating a business in the
face of uncertainty about the future conditions.
According to David Holt "An entrepreneur is a
person who starts a new venture, taking the
initiative and risk associated with its and does
so by creating something new to provide value
to customers.

In conclusion an entrepreneur is the person

who bears risk, unites various factors of
resources and carries out innovation and
production.
 1.2. Features of Entrepreneur/ship
• Entrepreneurship is the action of an entrepreneur
who is a person always in search of something new
and exploits such ideas into gainful opportunities by
accepting the risk and uncertainty with the enterprise.
The main features of entrepreneurship are as follows :
• 1) Formation of New Venture: Entrepreneurship is a
process of creating, generating and innovating of new
ideas for the enterprise. Due to the new knowledge
and ideas, the entrepreneurs are creating new
ventures, producing new products, developing new
markets and creating new customers.
2. Economic activity: Entrepreneurship is an
economic activity. All activities are concerned
with selling of goods and services, earning
profit, enhancing of market and operating new
enterprises etc.
3. Dynamic Activities:
Entrepreneurship is a dynamic activities. It
creates activity is performed continuously in
the middle of uncertain business environment.
therefore, entrepreneurship is regarded as a
dynamic activities.
4. Related to innovation:
Innovation is the process of searching new ideas,
knowledge, thoughts and methods. Entrepreneurship
function involves in searching of new ideas. It gives the
force an individual to continuously evaluate the existing
modes of business operations. so that more efficient
and effective systems can be develop and adopted.
5. Profit potential:
“Profit potential is the likely level of return or
compensation to the entrepreneur for taking on the risk
of developing an idea into an actual business venture.”
Without profit potential, the efforts of entrepreneurs
would remain only an abstract and a theoretical leisure
activity.
6. Risk bearing:
The essence of entrepreneurship is the
‘willingness to assume risk’ arising out of the
creation and implementation of new ideas.
New ideas are always tentative and their
results may not be instantaneous and positive.
If an entrepreneur do not have the willingness
to assume risk, entrepreneurship would never
succeed.
7 Hard work:
Entrepreneurship requires hard work and
commitment through devotion of time and efforts.
Entrepreneurs are developed business plan and
determined and acquired resources. They have
enthusiasm for development of new venture. They
have deep sense of personal responsibility and
high level energy.
8) Other:
a) Desire for high achievement (b) Self confidence
c) Opportunity seeker (d) Optimistic
(e) Farsighted (f) Independent (g) Responsible