(Entrepreneurship in nutshell:

 bring changes in the process of production, innovation in production, new usage of

materials, creator of market etc.
 foresee risk and uncertainty and do something new in an effective manner to achieve
certain goals.)

DEFINITIONS

According to Economists → An entrepreneur is the one who brings resources, labour, material
and other assets into combination to produce a socially viable product, and also one who
introduces changes, innovation and new order.

According to Management → A person with a vision and action plan to achieve it is an

entrepreneur.

Entrepreneurship development is the process of improving the skills and knowledge

of entrepreneurs through various training and classroom programs. The whole point
of entrepreneurship development is to increase the number of entrepreneurs.

Objectives of ED/ ED programmes:

1. To Promote First Generation Businessman and Industrialists

by way of inheritance - the habit of bearing loss is in their blood and the nature for
making investments in developed.

But for persons of such families were where the business does not exist, the
environment of business is lacking, who does not know anything about business, then
entrepreneurial development programmes provide inspiration to enter into trade,
industry, and business.

2. To Create Awareness about Availability of the Resources

like raw material, labour, techniques, and technologies are available in all parts of our
own country and in foreign countries.

3. To Promote Small, Cottage & Local Industries – small businesses at local level
4. To Encourage Self Employment Tendencies

Persons have two sources of livelihood, either by service or my own business, which are
known as wage employment and self-employment, respectively.
 5. To Provide Knowledge about Government Plans and Programmes

The government has introduced various schemes for self-employment.

6. To Make a Successful Entrepreneur

7. To Provide Training to Operate Business

how to do the business, how to make business dealings with various parties, how to
develop cordial relations, how to establish the business balance between various
components of the business and how to combat the difficulties arising during the course
of business, etc.

8. To Create Awareness about Marketing

In the present age, it is easy to produce goods, but the selling of goods is most difficult.
Entrepreneurial development programme (EDP) provides information about the
markets, to facilitate the sale of goods.

9. To Develop Entrepreneurs in all Areas of the Country

10. Remove Doubts of Entrepreneurs, Give Solutions and Suggest Remedies of Problems –
in case of shortcomings

Scope:
Therefore….. Entrepreneurship provides employment and source of earning to people. It helps
in reducing the monopoly of rich businessman and achieving a balanced regional development
and growth in economy. Government of India is conducting development programmes to
identify entrepreneurial potential and assistance from financial and non-financial institutions
are being provided to entrepreneur. Entrepreneurship training institutes have been established
and financial and operational support is being provided to young entrepreneurs in India.

Types of Entrepreneur:

(i) According to Clarence Banhof →

♦ Aggressive/Innovative entrepreneur – The one who uses various combinations of

information and factors of production to assemble and engineer new and innovative products.

♦ Immitative/Adoptive entrepreneur – The one who simply adopts a successful innovation

introduced by other entrepreneurs.
♦ Fabian entrepreneur – The one who is timid and cautious in making bold decisions. Such an
entrepreneur adopts innovations in his business only when he fears that not innovating may
damage his business.

♦ Drone entrepreneur – A drone entrepreneur is one who refuses to adopt new innovations
even at the cost of reduced returns.

(ii) According to Authur H. Cole →

♦ Empirical entrepreneur – An entrepreneur who does not innovate and follows the rule of
thumb.

♦ Rational entrepreneur – An rational entrepreneur is one who keeps himself updated with his
business, the market and economic conditions, and introduces revolutionary ideas.

♦ Cognitive entrepreneur – An entrepreneur that seeks advice and services of experts to make
changes which are revolutionary and reflect a complete shift from its existing structure.

(iii) According to Ownership →

♦ Public entrepreneurship – These are individuals who partner with the government to create
enterprises which serve the public in innovative ways.

♦ Private entrepreneurship – These entrepreneurs are profit oriented and do not enter market
which have low monetary rewards associated with it.

(iv) According to Scale of enterprise →

♦ Large scale entrepreneur – Large scale entrepreneurs are usually found in developed
countries. These entrepreneurs introduce revolutionary ideas and are able to sustain high
profits and develop new technologies as they possess the financial capacity and necessary
resources to do so.

♦ Small scale entrepreneur – Small scale entrepreneurs do not have the necessary funds and
technology to initiate large scale production and introduce revolutionary ideas.

FACTORS AFFECTING ENTREPRENEURSHIP/ BARRIERS:

(i) Environmental Factors/Barriers →

(a) Raw Material – Non-availability of raw materials required for production during peak
seasons. It leads to increase in price of raw materials due to competition.

(b) Labour –

Lack of skilled labour, Lack of committed and loyal employee, Quality and Quantity of labour

(c) Machinery – Machines are necessary but they are also costly and due to rapid change in
technology they become obsolete and require replacement which requires cash in hand. It
becomes very difficult for small business organization to keep updating its production process.

(d) Land and Building – Acquisition of land and construction of building at a prime location
require heavy expenditure. If the land is taken on rent, it becomes a fixed cost and a constant
concern for the entrepreneur.

(e) Infrastructure support – Adequacy of power, proper roads, water and drainage facilities etc.
There is less support from development authorities due to red-tapism and corruption.

(ii) Financial barrier/factors → Availability of funds is a major concern. A delay in source of

finance results in delay of starting or running business.

(iii) Personal Barrier/factors → They are caused by emotional blocks of an individual. They
cause a mental obstruction. They are :

(a) Lack of confidence – They think they will never find a successful business idea and would be
unable to attract necessary resources. Therefore, they dismiss the thought of being self-
employed.

(b) Lack of Dependability on others – They aim to gain their additional expertise through trail
and error and experience, rather than seeking further development or personal assistance from
others.

c) Lack of Motivation – Lose interest and motivation when ideas don’t work.

(d) Lack of Patience – When desire to achieve success in first attempt or to become rich
instantly are confronted with business challenges/problems they lose interest. They give up at
during initial losses.
(e) Inability to Dream – Sometimes they are short of vision or satisfied with what they have
achieved and lose interest in further expansion of business.

(f) Sense of Pride/Embarrassment – they are too proud or too embarrassed to take help.

(iv) Societal Barrier/factors →

Socio-cultural norms and values, Degree of approval or disapproval of entrepreneurial behavior,

Financial stability and family background, Caste and religious affiliation

(v) Political Barrier/ factors→

Government incentives and concessions, Facilitating socio-economic setting, interest in

economic development of society

Qualities of an entrepreneur:

Vision – He is able to visualize market demand, socio-economic environment and the future of
business venture.

Knowledge – He has sound conceptual knowledge about all the technicalities of his business.

Desire to succeed – He has multiple goals and a seeks opportunities to be productive.

Independence – He is independent in work and decision making

Optimism – He knows how to exploit opportunities.

Value addition – He does not follow the conventional rule of thumb, they have a desire to
create, innovate and add value.

Initiative – He takes the initiative to make an action plan from limited resources.

Goal setting – He sets realistic goals.

Problem solver – He is creative in problem solving.

Good human relations – He is a good leader, motivator and team builder.

Communication skills – He has the ability to persuade others.

Role of Promotions / need for promotions in e. nd small busi. Development

Promotion is the voice of your company which send out your brand’s message loud and clear to
the audience. Various media platforms can be used to promote your company and brand. They
include television, radio, shopping outlets, billboards, magazines, and social media.

Various promotional strategies can be used to promote and market your business depending on
the goals, objectives and priorities of your company.

Without marketing promotions, your brand or service would not be able to garner the attention
of pre-occupied customers.

Benefits:
Promoting your brand will help you in many different ways:
 Increase brand awareness
 Provide appropriate information
 Increase Customer Traffic
 Build sales and profits

 Segment Identification – If your promotional and marketing strategy is loosely

structured, it might not be successful in targeting the “right” audiences. Having a full-
proof and well-thought-out promotional strategy and marketing plan can help you
identify different segments of consumers in the market and offer suitable solutions for
your clients.

Not only these but promotions will also help your company to introduce products easily in the
ever-so-competitive market.

RELATIONSHIP BETWEEN ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT

1. Creation of job opportunities – creation of more tax payers for the govt.>eco develop
2. Promotion of creativity and innovation – creation of buyers for new products, new
market developed>eco develop

3. Utilization Of Local Resources - This means that resources get to be properly utilized
instead of lying around idle 
 4. Enhancement Of Capital Creation - In order to set up businesses, entrepreneurs need to
raise capital and as such, the approach financial institutions or investors who are ready
to finance their ideas and this process in the end leads to the creation of capital. 

5. Improvement Of Individual Welfare

Entrepreneurship by nature helps people to improve on the quality of their lives so as

to live a life of financial independence

6. Utilization Of The Populous Skills And Talents

 means that a population’s skill and talent is put to good use rather than left to wither
away. This means that there is proper utilization of skills and talents and whose
compensation is a salary or wage.

PROBLEM OF INCREASING UNEMPLOYMENT

1. Create Multiple Segment Partnerships 

This is an absolute necessity in making scalable solutions to employment and skills. For
e.g. a single business creates partnership with one enterprise for its own talent needs,
partnerships between multiple businesses across any industry results in an overall
increase in the talent pool, 

(AND POINTS OF ABOVE TOPIC)

2. Creation of job opportunities – creation of more tax payers for the govt.>eco develop
3. Promotion of creativity and innovation – creation of buyers for new products, new
market developed>eco develop

4. Utilization Of Local Resources - This means that resources get to be properly utilized
instead of lying around idle 

5. Improvement Of Individual Welfare

 Entrepreneurship by nature helps people to improve on the quality of their lives so as
to live a life of financial independence

6. Utilization Of The Populous Skills And Talents

CREATIVITY AND ENTREPRENEURSHIP

1. To Face Cut Throat Competition

The entrepreneurs accept new methods, techniques and new ideas through creativity.

2. Clubbing of Goals Becomes Possible

The creativity is of two types: individual and organizational and both are essential for
entrepreneurship.

Individual creativity includes Discovery, thoughts, imaginations, and Novelty of the individual,

which helps in the smooth operation of the organization.

By creativity, individual and organizational goals may be clubbed together. This is called
creativity and entrepreneurship theory.

3. Entry of New Products in the Market

4. Best Communication

so that they may also present the weakness and strengths of their organization.

5. Integration with Firm

When the employed develops new ideas, he automatically associates himself the reputation,
problems, and goals of the firm.

7. Building up Feelings of Continuity in the Group

8. Abundance of Resources in Place of Scarcity
The resources of production are Limited, which are sure to exhaust some days. In response
it, creativity is the only at the alternative, which facilitates searching of some source, by studies
and thinking.

9. Increasing the Power to Make Organisation Capable

10. Success in Reducing Cost of Labour and Production

11. Search of New Opportunities Becomes Possible