Entrepreneurship Management

Course content:
(A) ENTREPRENEURIAL PERSPECTIVE:
Concept of Entrepreneur, Entrepreneurship and Enterprise; advantages Entrepreneur1) Nature
and Development of Entrepreneurship; Gender issues in Entrepreneurship.2) The dynamic
role of Small Business / Industry in Economic Development3) Personality of an Entrepreneur /
Entrepreneur4) Innovation and Entrepreneurship
(B) THE ENTREPRENEURIAL ENVIRONMENT:
1) Policy Perspectives in India to promote Entrepreneurship2) Analysis of Business
Opportunities in different sectors of economy at National and Global levels.3) Quick start Routes to establish an Enterprises (Franchising, Ancilliarising & Acquisitioning )4) Support
Organizations for an Entrepreneur and their Role5) Legal framework for starting a Business /
Industry in India.
(C) THE ENTERPRISE LAUNCHING:
Product / Project Identification Developing a Project Report / Business Plan Business Financing
including venture Capital Finance Managing early growth of a Business, Incubation Program.
New Venture expansion - strategies and issues.
Reference Text
1. Beyond Entrepreneurship - By James C. Collins, William C. Lazier 2. Entrepreneurship
Management - By P. N. Singh, By J. C. Saboo 3. Dynamics of Entrepreneurial - By Vasant Desai
4. Entrepreneurship Development in India - By Bishwanath Ghosh
5. Literature Published by Support Institutions, vizi) SIICOM, ii)SIDBI, iii)MSSIDC iv)NSIC

(A) ENTREPRENEURIAL PERSPECTIVE

Concept of Entrepreneur, Entrepreneurship and Enterprise; advantages Entrepreneur
1. Nature and Development of Entrepreneurship; Gender issues in Entrepreneurship.
2. The dynamic role of Small Business / Industry in Economic Development
3. Personality of an Entrepreneur / Entrepreneur
4. Innovation and Entrepreneurship
1. NATURE AND DEVELOPMENT OF ENTREPRENEURSHIP; GENDER ISSUES IN
ENTREPRENEURSHIP
The concept of Entrepreneurship is comparatively new and dynamic.
What is Entrepreneurship?
"Entrepreneurship can be described as a creative and innovative response to the environment.
Such responses can take place in any field of social Endeavour business, agriculture,
education, social work and the like. Doing new things or doing things that are already being
done in a new way is, therefore, a simple definition of entrepreneurship. In this book, however,
we shall concentrate on business entrepreneurship." It would also be advisable to understand
the individual qualities of an Entrepreneur this would help us understand the concept better.

Who are Entrepreneurs?

Entrepreneurs are quick to see possibilities for achievement. They are not blinded, as mangers
in large, sedate organizations often are, by the in-grown culture in which they are embedded.
As we are aware, the new ideas for new products and services often originate in unexpected
places. Entrepreneurs are the first one to embark on these innovative ideas. There are several
examples such as follows:
1. Credit cards were not invented by banks
2. Instant photography was not started by a large camera manufacturer
3. Large office equipment manufacturer did not create the Xerographic office-copying machine.
Entrepreneurs are the people who see the need gap and hence capitalize on the same. An
entrepreneur grabs such novel ideas, developed it and pursued its success doggedly with
unflagging spirit. Therefore, these people are successful in their venture and are entrepreneurs
in the true sense of the word. Thus, entrepreneurs are self-starters and doers who have
organize and build successful enterprises. On the other hand we cannot call an entrepreneur an
opportunist because it is not only the selfish interest that drives him but he is also meets the
need of the people. The following eleven qualities/ attributes are considered to be some of the
important ones for a successful entrepreneur on the basis of the research and experience of
Behavioral Science Center, Delhi and various other institutions involved in selection of
candidates for entrepreneurial development programs conducted by them:
1. High level of motivation,
2. Moderate Risk-taker
3. Self-confident with positive self concept,

4. Excellent Leadership qualities

5. Good Business acumen
6. Managerial competence
7. Problem solving attitude
8. Flexibility and adaptability
9. Realistic approach to planning
10. Independence of thought and action
11. Ability to perceive opportunities and threats
Whats an Enterprise?
The word enterprise describes the actions of someone who shows some initiative by taking a
risk by setting up, investing in and running a business. A person who takes the initiative is
someone who makes things happen. He or she tends to be decisive. A business opportunity is
identified and the person does something about it. Showing initiative is about taking decisions
and being bold not everyone is like that! Risk-taking is slightly different. In business there is
no such thing as a sure fire bet. All business investments carry an element of risk which is
the chance or probability that things will go wrong. At the worst, the risk of an enterprise
might mean the person making the investment loses all his/her money or becomes personally
liable for the debts of the business. The trick is to take calculated risks, and to ensure that the
likely returns from taking a risk are enough to make the gamble worthwhile. Someone who
shows enterprise is an entrepreneur
DEVELOPMENT OF ENTREPRENEURSHIP
Who is an entrepreneur? What is entrepreneurship? What s an entrepreneurial career path?
These frequently asked questions reflect the increased national and international interest in
entrepreneurs by individuals, university professors and students, and government officials. In
spite of all this interest, a concise, universally accepted definition has not yet emerged. The
development of the theory of entrepreneurship parallels to a great extent the development of
the term itself. The word entrepreneur is French and, literally translated, means betweentaker or go-between.
HISTORY Earliest Period
An early example of the earliest definition of an entrepreneur as a go-between is Marco Polo,
who attempted to establish trade routes to the Far East. As a go-between, Marco Polo would
sign a contract with a money person (forerunner of todays venture capitalist) to sell his goods.
A common contract during this time provided a loan to the merchant adventurer at a 22.5
percent rate, including insurance. While the capitalist was a passive risk bearer, the merchantadventurer took the active role in trading, bearing all the physical and emotional risks. When
the merchant-adventurer successfully sold the goods and completed the trip, the profits were
divided with the capitalist taking most of them (up to75 percent), while the merchantadventurer settled for the remaining 25 percent.
18th Century
In the 18th century, the person with capital was differentiated from the one who needed
capital. In other words, the entrepreneur was distinguished from the capital provider (the
present-clay venture capitalist). One reason for this differentiation was the industrialization

occurring throughout the world. Many of the inventions developed during this time were
reactions to the changing world, as was the case with the inventions of Eli Whitney and Thomas
Edison. Both Whitney and Edison were developing new technologies and were unable to
finance their inventions themselves. Whereas Whitney financed his cotton gin with
expropriated British crown property, Edison raised capital from private sources to develop and
experiment in the fields of electricity and chemistry. Both Edison and Whitney were capital
users (entrepreneurs), not providers (venture capitalists).
19th and 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: Briefly stated, the
entrepreneur organizes and operates an enterprise for personal gain. He pays current prices for
the materials consumed in the business, for the use of the land, for the personal services he
employs, and for the capital he requires. He contributes his own initiative, skill, and ingenuity in
planning, organizing, and administering the enterprise. He also assumes the chance of loss and
gain consequent to unforeseen and uncontrollable circumstances. The net residue of the
annual receipts of the enterprise after all costs have been paid, he retains for himself. In the
middle of the 20th century, the notion of an entrepreneur as an innovator was established: The
function of the entrepreneur is to reform or revolutionize the pattern of production by
exploiting an invention or, more generally, an untried technological method of producing a new
commodity or producing an old one in a new way, opening a new source of supply of materials
or a new outlet for products, by organizing a new industry. The concept of innovation and
newness is an integral part of entrepreneurship in this definition. Indeed, innovation, the act of
introducing something new, is one of the most difficult tasks for the entrepreneur. It takes not
only the ability to create and conceptualize but also the ability to understand all the forces at
work in the environment. The newness can consist of anything from a new product to a new
distribution system to a method for developing a new organizational structure. This ability to
innovate can be observed throughout history, from the Egyptians who designed and built great
pyramids out of stone blocks weighing many tons each, to the Apollo lunar module, to laser
surgery, to wireless communication. Although the tools have changed with advances in science
and technology, the ability to innovate has been present in every civilization.
Definition of entrepreneur today
The concept of an entrepreneur is further refined when principles and terms from a business,
managerial, and personal perspective are considered. In particular, the concept of
entrepreneurship from a personal perspective has been thoroughly explored in this century.
This exploration is reflected in the following three definitions of an entrepreneur: In almost all
of the definitions of entrepreneurship, there is agreement that we are talking about a kind of
behavior that includes:
1. Initiative taking.
2. The organizing and reorganizing of social and economic mechanisms to turn re-sources and
situations to practical account,
3. The acceptance of risk or failure.

4. To an economist, an entrepreneur is one who brings resources, labor, materials, and other
assets into combinations that make their value greater than before, and also one who
introduces changes, innovations, and a new order. To a psychologist, such a person is typically