1.

0 Introduction to
Entrepreneurship
Entrepreneurship and Project
Planning

Manipal College of Health

Professions
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ Entrepreneurship: a behavior that aims to exploit market opportunities and develop new
solutions
▪ David Silver has described Entrepreneur as ‘Energetic, single minded,” and having “ a mission
and clear vision; he or she intends to create out this a product or service in a field many have
determined is important to improve the live of millions”.
▪ Entrepreneur may be probably applied to those who incubate new ideas, start enterprises based
on those ideas, and provide added value to the society based on initiatives.
▪ Self- employed is a individual simply substitutes income by leaving jobs to operate local stores or
independent services business
▪ Corporate entrepreneurship is concerned with innovation that leads to new corporate divisions
or subsidiary ventures in established larger firms.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Evolution of Entrepreneurship

▪ Earliest Period
▪ The earliest definition of the entrepreneur as a go-between is Marco Polo.
▪ He tried to establish trade route to the Far East.
▪ He used to sign a contract with a venture capitalist to sell his goods.
▪ After his successful selling of goods and completing his trips, the profits were
shared by the capitalist and the merchant.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ Middle Ages
▪ The term entrepreneur was referred to a person who was managing large
projects. He was not taking any risk but was managing the projects using the
resources provided.
▪ An example is the cleric who is in charge of great architectural works such as
castles, public buildings, cathedrals etc.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ 17th Century
▪ An entrepreneur was a person who entered into a contractual arrangement with the
Govt. to perform a service or to supply some goods. The profit was taken (or loss was
borne) by the entrepreneur.
▪ The founder of the royal bank of France and the Mississippi Company, which had an
exclusive franchise to trade between France and the new world.
▪ John law, a frenchman was one of the entrepreneur in that period.
▪ period.
▪ •.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ 18th Century
▪ In the 18th century, the person with capital was differentiated from the one who needed
capital.
▪ The entrepreneur was distinguished from the capital provider.
▪ One reason for this differentiation was the industrialization occurring throughout the
world.
▪ Thomas Edison, the inventor of many inventions. He was developing new technologies
and was unable to finance his inventions himself.
▪ The word entrepreneur descends from the French word ‘entreprendre’, which indicates
an act in which the individual attempt, try, adventure or undertake an act of some sort.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ 19th & 20th Centuries
▪ In the late 19th and early 20th centuries, entrepreneurs were frequently not
distinguished from managers and were viewed mostly from an economic perspective.
▪ The entrepreneur organizes and manages an enterprise for personal gain.
▪ The materials consumed in the business, for the use of the land, for the services he
employs, and for the capital he requires.
▪ The function of the entrepreneurs is to recreate or revolutionize the pattern of
production by introducing an invention.
▪ Innovation, the act of introducing some new ideas, is one of the most difficult tasks for
the entrepreneur.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 History Of Entrepreneurship in India

▪ The history of entrepreneurship in India starts in the era of Indus Valley Civilization.
▪ During the Early Harappa period (about 3200–2600 BCE)
▪ This age is also called as copper age, the Indus Valley Civilization area showed ceramic
similarities with southern Turkey and northern Iran which suggested considerable
mobility and trade.
▪ Indus valley civilization: organized enterprise at a time when the world just belonged to
clothe itself.
▪ The early years (1000 B.C-500 B.C): Indian trader introduced re-exporting bought silk
from Chinese and sold to central Asia. Bought horses from west Asians and sold to the
Chinese.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ The Gupta Era: (400 A.D – 600 A.D) - Traders from associations to protect interests Codification of
transnational business.
▪ The Middle ages-(700 A.D-1300 A.D): Paper, Printing invented. Dams, roads ease trade, south –East Asia &
indo asia.
▪ The Mughal age (1500 A.D-1600 A.D): Dominated world commerce, large quantities of gold and silver flow
into the country.
▪ The Mughal Era II (1600 A.D-1700 A.D): British arrive in this era. The person named Surat merchant virji Vora
among first entrepreneurs.
▪ The colonial era I (1700 A.D-1850 A.D): Europe was then the hotbed of technological innovation. The traders
brought with them plenty of new ways of doing business. Seizing the opportunities that emerged, many Indians
became entrepreneurs.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Characteristics of successful Entrepreneurs

▪ Self-confident and optimistic

▪ Able to take calculated risk
▪ Respond positively to challenges
▪ Flexible and able to adapt
▪ Knowledgeable of markets
▪ Able to get along well with others
▪ Independent minded
▪ Versatile knowledge
▪ Creative, need to achieve
▪ Dynamic leader

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Importance of new venture/ Entrepreneurship
▪ Entrepreneurial ventures help generate new wealth.
▪ New and improved products, services, or technology from entrepreneurs enable new markets to be developed
and new wealth to be created.
▪ increased employment and higher earnings contribute to better national income in the form of higher tax
revenue and higher government spending
▪ Growth of Entrepreneurship.
▪ Innovation.
▪ Impact on community development.
▪ The consequence of business failure.
▪ Political and economic integration of outsiders.
▪ Enhances the standard of living.
▪ Promotes research and development.
▪ Create Social Change

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Importance of new venture

▪ The current focus on globalization and the rapid development of technology have
vastly improved the potential for new venture creation. Small business and new
ventures have long been considered economic indicators of a nation’s economic
health and prosperity
▪ Many of the countries listed in the Organization for Economic Co-operation and
Development have initiated programmes that support the development and creation
of small- and medium-sized enterprises (SMEs).
▪ By creating a new venture, the entrepreneur gains access to additional resources,
which assist in increasing the point of differentiation and competitiveness of the new
venture.
▪ Entrepreneurs therefore utilise specific skills and capabilities to help them in making
rational decisions and which lead to achieving success through new venture creation

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Entrepreneur and Opportunity Characteristics that Influence
Opportunity

▪ Entrepreneur’s characteristics: - Attributes Knowledge, skills, and abilities - Personal

Characteristics Self-efficacy, opportunity recognition, perseverance, social skills - Resources
Financial, social, and labor

▪ Opportunity’s characteristics: - Resources Financial, social, and labor - Market realities Size
(market niche and target market), timing - first mover advantage (mature industry), and capability
to adapt (emerging industries)

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Factors Affecting the Growth of New Firms/ Entrepreneurship

▪ Need for achievement

▪ Resilience
▪ Extraversion
▪ Educational level
▪ Experience
▪ Financial Resources with Which to Start
▪ Number of Partners
▪ Environmental Conditions

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Role of Entrepreneurs with Relation to Enterprise

▪ Initiator: A key man who imagine new opportunities, techniques, new

products/services
▪ Innovator Brings overall change by innovation and creativity
▪ coordinator Coordinate social and economic values of society
▪ leader act as a leader with outstanding leadership qualities
▪ Social worker He always works for the wellbeing of the society
▪ Welfare agent He will encompass/cover all sectors and fields welfare
▪ Employer: He will act as employer by in taking some unemployed
▪ Development agent: Contributes service for development the country and
▪ building country economy
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Role of Entrepreneurs with Relation to Enterprise

▪ Risk Taker: the entrepreneur, being the owner, is the biggest risk taker
▪ Reduces Risk: To reduce the risk of an enterprise failure by bringing in people that can
help the organization grow.
▪ Allocator: procures and allocates various resources in the organization
▪ Adhering to Legal Norms: ensure that the enterprise adheres to legal norms and
policies
▪ Forecasting: the role of entrepreneurs involve acting as a forecaster uch as strikes,
machinery breakdowns, budget cuts etc. or these could be external, such as legal
policy changes, political or social unrest, technological advancements, etc.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Quality of a Successful Entrepreneur

▪ Inner drive to succeed ( should ▪ Accepting of constructive

have feeling to win in the heart) ▪ criticism and rejection (ready to
▪ Strong belief in themselves accepts mistakes)
▪ Search for new ideas and ▪ Time management
innovation ▪ Vision and leadership
▪ Openness to change ▪ Ethics and morals
▪ Competitive by nature ▪ Discipline yourself
▪ Risk taker ▪ Highly motivated and energetic

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Role of Entrepreneurship in Economic Development

▪ Increase in National Income

▪ Balanced Regional Development
▪ Bringing Change in Structure of Business and Society
▪ New Products, New Services and New Business
▪ Dispersal of Economic Power
▪ Better Standards of Living
▪ Creating Innovation
▪ Production Evolution Process

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Risks of Starting a New Business

▪ External factor of failure: interest rates, inflation, govt regulations, unstable financial
markets, economic conditions.
▪ Personal factors of failure: incompetent in management.
▪ Inexperience
▪ Arrogance: egocentric
▪ Mismanagement: overinvestment, poor inventory control, purchase error.
▪ Poor business philosophy: lack of business commitment
▪ Lack of planning
▪ The Human Factor
▪ Customers and Other Market Risks

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Startup Risks Entrepreneurs Should Consider When Launching
their Startup
Capability Risk: The risk that the startup is unable to scale its capability on a timely basis and at levels required.
Design Risk: The risk that the product or service design does not meet the required performance standard.
Development Risk: The risk that development of the product or service is not completed on time, within budget or to defined specifications.
Economic Risk: The risk that the company’s success is sensitive to external economic factors.
Economic Life Risk: The risk that the product or services useful life in the marketplace is shorter than originally anticipated or projected.
Funding Risk: The risk that funding will not be available at a level or timing required for the startup to succeed.
Legislative and Policy Risk: The risk that legislative and policy changes will result in higher costs to the startup.
Maintenance Risk: The risk that maintaining the company’s assets at appropriate levels will cost more than anticipated.
Management Risk: The risk that the management team lacks the skillsets and experience to execute the startups’ business plan.
Operations Risk: The risk that operating costs are greater than budgeted, or that the service cannot be provided at the projected costs.
Procurement Risk: The risk relating to the ability of the startup to procure quantities and pricing of required scarce resources.
Research Risk: The risk that the quality of the initial research upon which key company assumptions were based was flawed in an impactful way.
Technology Risk: The risk that less than optimal technology is developed or utilized or that a competitor leapfrogs the startup’s technology.
Volume / Demand Risk: The risk that the actual market’s demand for the product or service will not yield the projected sales volumes.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Advantages of new ventures

▪ Agility
▪ Efficiency
▪ Team culture
▪ Personalization
▪ Versatility
▪ Flexibility
▪ Having fun
▪ Financial independence
▪ Hard work & know how
▪ Being your own boss
▪ Creative freedom
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Disadvantages of new ventures

▪ Risk of failure
▪ Low compensation
▪ Poor market access
▪ Team conflicts
▪ Lack of resources
▪ Lack of processes
▪ Stressed out
▪ Competitors
▪ Married to the business
▪ Suppliers
▪ Family

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Problems of Entrepreneurship / NVC

▪ Wrong surveys
▪ Lack of identification of projects
▪ Lack of infrastructure
▪ Lack of quality control
▪ Lack of market promotion
▪ Lack of technology
▪ Lack of finance
▪ Lack of consulting services

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Finally to become successful entrepreneur one should have the
following characteristics:-

▪ Need to achieve (goals should achieve)

▪ Independence (start business their own)
▪ Risk bearing (ready to face uncertainty)
▪ Locus of control (governing and shaping the goals with high control)
▪ Determination (working sincerely on goal achieving)
▪ Positive self-concept (thinking positive and analyze anything by SWOT analysis)
▪ Ability to find and explore opportunities (finding/grab opportunities)
▪ Hope success (feeling success in each and every step they move no failure)
▪ Flexibility (measuring pros and cons of decision and tend to change if situation demands)
▪ Analytical ability of mind (unaffected by personal likes and dislikes)
▪ Sense of efficacy (oriented always to goals no deviation or diversion by external influence)

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Nature/Characteristics of Entrepreneurship

▪ Purposeful activity
▪ Decision making
▪ Accepting challenges
▪ Risk taking
▪ Building organization
▪ Dynamic process (bring new opportunities)
▪ Gap filling function (filling goods and services to society)
▪ Skillful management
▪ Innovation
▪ Mobilization of resources
▪ Economic Activity (creation and operation of an enterprise)

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
Scope of Entrepreneurship

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Entrepreneurial Competencies
▪ It is defined as characteristics such as generic and special knowledge, motives, traits,
self-image, social roles and skills which result in birth of a venture, its survival and/ or
growth
▪ Types of Entrepreneurial Competencies
▪ A) Personal Entrepreneurial Competencies: These are required to perform the tasks effectively and efficiently.
▪ Initiative:
▪ Systematic Planning
▪ Ability to See and Act on Opportunities
▪ Problem Solving
▪ Persistence
▪ Assertiveness
▪ Information Seeking
▪ Concern for High Quality of Work
▪ Persuasion
▪ Commitment to Work ▪ Use of Influence Strategies
▪ Commitment to Efficiency

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ B) Venture Initiation and Success Competencies: An entrepreneur must also possess the
competencies required for launching the enterprise and for its survival and growth.

▪ 1. Enterprise Launches Competencies: ▪ 2. Enterprise Management Competencies: These

▪ These include the following: include the following:

▪ ▪ Competency to protect the business.

Competency to understand the nature of business.
▪ ▪ Competency to manage customer credit and
Competency to comply with Government regulations.
collection.
▪ Competency to deal with the business.
▪ Competency to manage the finances.
▪ Competency to finance the business.
▪ Competency to manage the business records.
▪ Competency to locate the business.
▪ Competency to manage sales efforts.
▪ Competency to plan the marketing strategy.
▪ Competency to promote the products and services of
▪ Competency to choose the type of ownership. the business.
▪ Competency to obtain technical assistance. ▪ Competency to manage human resources.
▪ Competency to develop a business plan. ▪ Competency to manage the business.
▪ Competency to determine the potential as an entrepreneur.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: