1.

Describe the concepet of Entrepreneurship and Classify it into

various types Ans : Introduction : The concept of entrepreneurship is a complex phenomenon. Broadly, it
relates to entrepreneur, his vision and its implementation. The key player is the entrepreneur. Entrepreneurship refers to a process of action and entrepreneur undertakes to establish his/her enterprise. It is a creative and innovative response to the environment. Entrepreneurship is the propensity of mind to take calculated risks with confidence to achieve a pre-determine business or industrial objective.

Concept of Entrepreneurship
Entrepreneur Entrepreneurship Enterprise

Person

Process of Action

Object

Definitions: Entrepreneurship is a multi-dimensional task defined differently by

different authorities. By CentillionEntrepreneur is one discharging the faction of direction and speculation. By Adam Smith ---- Entrepreneur is a proprietary capitalist, a supplier of capital and, at the same time, working as manager, intervening between the labour and the consumer. By Schumpeter ---- Entrepreneurship is essentially a creative activity. The entrepreneur is the innovator who introduces something new into the economy. The innovation may be a method of production not yet tested by experience in the brand of manufacture concerned or a product with which consumer are not yet familiar, or a new source of raw material or of a market hitherto unexploited, or other innovation in the strict sense of the term. According to him, entrepreneurs are business leader and not simple owners of capital. They are men of vision, drive and talent, who spot out opportunities and promptly seize them for exploitation By A H Cole ---- Entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or organize a profit-oriented business unit for the production or distribution of economic goods and services. By all the above definition we can say that Entrepreneurship is what entrepreneur does. So it covers all the aspects of entrepreneur. Entrepreneurship is wider tern than management. Some think of entrepreneur primarily as innovators, some chiefly as managers of enterprise, some as bearers risks and other place major emphasis of their function as mobiliser and allocators of capital. However, it may be best defined as a person responsible for the existence of new business enterprise.

Classification of Entrepreneurs
The entrepreneurs in business are broadly classified according to the types of business, use of professional skill, motivation, growth and stages of development and others. The various types of entrepreneurs can be classified 1. According to the types of business Business entrepreneur Trading entrepreneur Industrial entrepreneur Corporate entrepreneur Agriculture entrepreneur Retail entrepreneur Service entrepreneur 2. According to the use of technology Technical entrepreneur Non-technical entrepreneur Professional entrepreneur High-tech entrepreneur Low-tech entrepreneur 3. According to the motivation Pure entrepreneur Induced entrepreneur Motivated entrepreneur Spontaneous entrepreneur 4. According to growth Growth entrepreneur Super-growth entrepreneur 5. According to the stages of development First generation entrepreneur Modern entrepreneur Classical entrepreneur 6. Others Innovative entrepreneurship Imitative entrepreneurship Fabian entrepreneurship Drone entrepreneurship No we will discuss each type to entrepreneurs. 1. According to the Type of Business: Entrepreneurs are found in various types of business occupations of varying size. We can classify them as follows: a) Business Entrepreneurs: Business entrepreneurs are individual who conceive and idea for anew product or service and then create a business to materialize their idea into reality. They tap both production and marketing resources in their search to develop a new business opportunity. They may set up a big establishment or a small business unit. They are called small business entrepreneurs when found in small business units such as printing pres, textile processing house, advertising agency, ready-made garments or confectionery. In a

b)

c)

d) e)

majority of cases, entrepreneurs are found in small trading and manufacturing business and entrepreneurship flourishes when the size of the business is small. Trading Entrepreneur: Trading entrepreneur is one who undertakes trading activities and is not concerned with the manufacturing work. He identifies potential markets, stimulates demand of his product line and crates a desire and interest among buyers to go in for his product. Industrial Entrepreneur: Industrial entrepreneur is essentially manufacturer who identifies the potential needs of customers and tailors product are service to meet the marketing needs. He is product oriented man who starts in an industrial unit because of the possibility of making some new product. Corporate Entrepreneur: Corporate Entrepreneur is a person who demonstrates his innovative skill in organizing and managing a corporate undertaking. Agriculture Entrepreneur: These are entrepreneur who undertake such agricultural activities as raising and marketing of crops, fertilizers and other inputs of agriculture.

2. According to the Use of Technology: The application of new technology in various sectors of the national economy is essential for the future growth of business. Entrepreneur on the basis of use of technology are as follows: a) Technical Entrepreneur: A technical entrepreneur is essentially an entrepreneur of craftsman type. He develops new and improved quality of goods because of his craftsmanship. He demonstrates his innovative capabilities natters of production of goods and rendering services. The greatest strength which the technical entrepreneur has is his skill in production techniques. b) Non Technical Entrepreneur: These are those who are not concerned with the technical aspects of the products in which they deal. They are concerned only with developing alternative marketing and distribution strategies to promote their business. c) Professional Entrepreneur: He is a person who is interested in establishing a business but does not have interest in managing or operating it once it is established. Such an entrepreneur is dynamic and he conceives new ideas to develop alternative projects. 3. According to Motivation: Motivation is the force that influences the efforts of the entrepreneur to achieve his objective. An entrepreneur is motivated to achieve or prove his excellence in job performance. a) Pure Entrepreneur: A pure entrepreneur is an individual who is motivated by psychological economic rewards. He undertakes an entrepreneurial activity for his personal satisfaction in work, ego or status. b) Induced Entrepreneur: He is one who is induced to take up an entrepreneurial task doe to the policy measures of the government that provides assistance, incentives, concession and necessary overhead facilities to start a venture. c) Motivated Entrepreneur: New entrepreneurs are motivated by the desire for self-fulfillment. They come into being because of the possibility of making and marketing some new product for the use of consumers. d) Spontaneous Entrepreneur: These Entrepreneurs start their business out of their natural talents. They are persons with initiative, boldness and confidence in their ability which motivate them to undertake entrepreneurial activity. 4. According to Growth: The development of a new venture has greater chance of success. The entrepreneur enters a new and open field of business. The customer approval to the new product gives then psychological satisfaction and enormous profit. They are:

a) Growth Entrepreneur: They are those who necessarily take up a high growth industry. These entrepreneurs choose an industry which has sustained growth prospects. b) Super-Growth Entrepreneur: Super-Growth entrepreneurs are those which have shown enormous growth of performance in their venture. The growth performance is identifies by the liquidity of funds, profitability and gearing. 5. According to Stages of Development: Entrepreneurs may also be classified as the first generation entrepreneur, modern entrepreneur and classical entrepreneur, depending upon the stage of development. a) First-Generation Entrepreneur: A first-generation entrepreneur is one who starts an industrial unit by means of an innovative skill. He is essentially an innovator, combining different technologies to produce a marketable product or service. b) Modern Entrepreneur: A modern entrepreneur is one who undertakes those ventures which go well along with the changing demand in the market. They undertake those ventures which suit the current marketing needs. c) Classical Entrepreneur: A classical entrepreneur is one who concerned with the customers and marketing needs through the development of a self supporting ventures. He is stereotype entrepreneur whose aim is to maximize his economic returns at a level consistent with the survival of the firm with or without an element of growth. 6. Others a. Innovating Entrepreneurs: Innovating entrepreneurship is characterized by aggressive assemblage of information and analysis of results, deriving from a novel combination of factors. Individual in this group are generally aggressive in experimentation who exhibit cleverness in putting attractive possibilities into practice. Such an entrepreneur is one who sees the opportunity for introducing annex technique of production process or anew commodity or a new market or anew service or even reorganization of an existing enterprise. b. Imitative Entrepreneur: Imitative entrepreneurship is characterized by readiness to adopt successful innovations by innovating entrepreneurs. They first imitate techniques and technology innovated by others. c. Fabian entrepreneurship: In this entrepreneur brings in the changes under fear of extinction. d. Drone Entrepreneurship: He is a person who does not want to bring any changes in business even during fear of extinction A new Class In step with Indias liberalization process, entrepreneurship has received a boost. In the last 2 decades, even the composition of entrepreneurial class has seen a sea change as an increasing number of a whole new class of entrepreneurs has been born. The new entrepreneur is educated, sometimes abroad, is keyed into the frontiers of technology, aware of the latest in the production techniques, generally conscious of current management systems and is relatively well versed is marketing and quality control. He is thus, in full command of himself. More importantly, this class of entrepreneurs are well spread all over the country and harvesting the fruits of liberalized economy. Conclusion: I this time of rapid economic development and technological change, the entrepreneurial spirit can be a unique and of important advantage, but only if we learn to use it. The entrepreneurs are the agents of change and our hope for the future. In fact, the

entrepreneur always searches for changes, responds to it, and exploits it as an opportunity.

2. Describe

the roles Entrepreneurship

of

various

agencies

in

supporting

Ans.
There are various agencies for supporting Entrepreneurship and to develop the Entrepreneur. Following agencies plays pivotal role in supporting Entrepreneurship. 1. Small Industries Service Institutes a) They guide entrepreneurs in the selection of industries, areas, suitable raw materials and machinery. b) They advise about the kind of machinery and equipment needed for the manufacture and equipment needed for the manufactures of different products. c) They furnish technical reports to Institutes the State Bank of India on the applicant units. d) They prepare improved designs and Institutes drawings for products. e) They prepare management control charts for the maximization of profits. f) They train workers to upgrade their skill. g) They provide technical guidance in the production of goods according to prescribed standards. h) They conduct distribution and surveys for the benefit of small industrialists. They enlist the units for participation in the Central Government Stores/Purchases Programme. i) They issue competency certificates to the units receiving Governments orders. They promote ancillary relationship with large and medium-scale units in public and private sectors. j) They enlist small units for participation under the Export Aid to Small Industry Scheme of the state trading Corporation of India. k) They render technical counseling service for a satisfactory execution of export orders. l) They conduct management courses for senior managerial personnel. 2. India Investment Centre a) It advises on foreign capital participation and technical collaboration. 3. District Industries Centre a) Under the single roof of the centre, all the services and support required by small and village entrepreneurs would be provided. 4. Factory Accommodation Directors of Industries a) They provide built-up factory space in industrial estates or development factory sites, power, water etc.

5. Industrial Estates

a) There are more than 600 industrial estates in India which proved constructed accommodation in developed areas. 6. Director of Industries a) Although it is not mandatory, it is certainly helpful to obtain the SSI Registration Number for the Director of Industries. b) They allot quotas of scarce raw materials. c) They prescribe the standards and give Q Mark to the small industrys products. 7. National Small industries Corporation a) It supplies indigenous as well as imported machinery on hire-purchase basis. b) They give advanced training in their Prototype Production-Cum-Training Centers in the operation of modern machines. c) It secures contracts from the Director General of Supplies and Disposals, Railways, and Defense Departments for supply of manufactured goods by smallscale units. 8. Chief Controller of Imports and Exports a) It issues import licenses for machinery of foreign origin on the recommendation of the Directors of Industries. b) They issue licenses for the import of raw materials. 9. State Small Industries Corporations a) They supply raw materials b) They secure orders from the State Governments and other Semi-Government organizations for the supply of stores. 10. Small Industries Development Bank of India a) SIDBI is expected to co-ordinate the functions of the Institutions engaged in similar activities. 11. State Bank of India and its subsidiaries a) They sanction medium-term and installment credit loans for the purchase of machinery and the construction of factory building. They also provide working capital for the purchase of raw material and meeting other day to day requirements. 12. Commercial Banks a) They sanction loans for working capital needs. 13. Council of Scientific and Industrial Research a) It develops new technological processes and disseminates the same to industry. 14. Small Industry Extension Training Institute a) It gives full-time and management training to managers/proprietors in the small industry sector. 15. Indian Standards Institution a) It prescribes specifications for the products and issues ISI certification.

16. The Invention Promotion Board

a) It promotes workable inventions of practical utility through financial assistance and other incentives 17. Small-Scale Industries Development Organisation a) It trains practicing mangers and technologists. 18. Small Industry Extension Training Institute a) Offers training in industrial management and other aspects of small industries development; undertakes feasibility and research studies and collects and disseminates technical information through its Documentation Centre. 18. National Institute for Entrepreneurship and Small Business Development (NIESBUD) a) NIESBUD is an apex body established in 1983 for coordinating and overseeing the activities of various institutes/agencies engaged in entrepreneurship development in small industry and small business. 19. National Institute Small Industries Extension Training a) It is organization for training 20. The Federation of Associations of Small Industries of India a) They represent the problems faced by the small industries to the Government 21. The National Alliance of Young Entrepreneurs (NAYE) a) It is a national level apex organization of entrepreneurs. It is assisting in promoting new enterprises though first-generation entrepreneurs. It also monitors the programmes of entrepreneurial development of India. 22. Rajasthan Finance Corporation a) It is a State Financial Corporation which provides long-term credit for the purchase of fixed assets. 23. Prototype Development and Testing Centre a) It is an agency where test run of the product takes place. 24. RAJCON a) It is a consultancy organization. 25. Entrepreneurship Development Institute of India (EDII) a) EDII, Ahmedabad is an autonomous non-profit Institution, set up in 1983, sponsored by financial institutions, such as IDBI, IFCI and ICICI and SBI. b) EDII has designed and successfully implemented several national and international training programmes and work shops for the academic community and for the youth.