Short notes:

1. Innovation and Entrepreneurship

What is Innovation?
Innovation is not a technical term. It is an economic and social term.Its
criterion is not science or technology but a change in the economic or social
environment, a change in the behaviour of people as consumers, producers
or as citizens.
Innovation is investing of resources to create new wealth or investing of
wealth to create new resources. It is measured by assessing its impact on
environment, and therefore, innovation should always be Market Focused. It
is the responsibility of every individual, and it begins with a conscious search
for opportunities. Finding those opportunities and exploiting them with
focused, practical solutions requires a rare genius.
Innovation and Entrepreneurship - The link
Innovation is the specific function of entrepreneurship. It is the means by
which the entrepreneur either creates new wealth producing resources or
endows existing resources with enhanced potential for creating wealth.
Innovation is an activity, the effort to create purposeful focused change in an
enterprises economic or social potential.
What is Innovative Strategy?
The first objective of a strategy for an ongoing business is to optimize what
already exists. However, the ruling assumption of an innovative strategy is
whatever exists is aging. The assumption is on the premise that existing
product lines and services, existing markets and distribution channels etc will
sooner or later go down rather than up.
The motto of a strategy for the ongoing business is Better and More ,
however, the motto of a strategy for innovation is New and Different .
Innovative strategy is planned out by systematically getting rid of the old,
the dying and obsolete, because abandoning yesterday alone will free
resources for tomorrow.
Why does one need to innovate?

to face competition

to stand out in a clutter

to survive recession

to solve certain problems

Innovations and Profits

The main function of an entrepreneur is to introduce innovations in the
economy and profits are reward for his performing this function. Any new
measure or policy adopted by an entrepreneur to reduce the cost of
production or to increase the demand for his product is an innovation.
Innovation can be divided into two categories

Those which reduce the cost of production ie which change the

production functions. This first type of innovation includes the
introduction of new machinery, new and cheaper technique or process
of production, exploitation of a new source of raw material, a new and
better method of organizing the firm etc.

Those which increase the demand for the product ie which change the
demand or utility function. This category includes the contd

introduction of a new product, a new variety or design of the product, a

new and superior method of advertisement, discovery of new markets
etc.

Role of an Innovator

Role of an innovator is a part of entrepreneurship. The entrepreneur is

not a man of ordinary managerial ability, but one who introduces
something entirely new. The entrepreneur is motivated by the desire to
be the founder of a private commercial kingdom, the will to conquer
and prove his superiority and the joy of creating, of getting things done
or simply of exercising ones energy and integrity.

Role of Profit

An entrepreneur innovates to earn profits. Profits arise due to dynamic

changes resulting from innovation. They continue to exist until
innovation becomes general.

2. Franchising:
A management whereby the manufacturer or sole distributor of trade
marked product or services gives the exclusive rights of local distribution to
independent retailers for their payment and conformance to standardised
operating procedures.
Types of Franchising
a. Product Franchising (e.g. McDonalds, Monginis, Barista )
b. Process Franchising (NIIT, Aptech, Eurokid)
c. Business Format Franchising (e.g. Mckinsey, Earnst & Young)

McDonalds : Im Loving It
Mc Donalds is a very good example of a business that became a runaway
success after the original owners sold it to an enthusiastic, aspiring
entrepreneur.
Arguably, one of the most successful franchise operations, McDonalds is the
worlds largest chain of fast food restaurants. McDonalds outlets primarily
serve hamburgers, French fries, colas, and milkshakes. McDonalds has over
30,000 restaurants serving 52 million people in more than 100 countries.
Some of its outlets are company-owned but over 70 per cent are owned and
operated by franchisees. McDonalds has been open to the idea of trying out
new business models

to suit the requirements of the local conditions. In India, initially McDonalds

started operating through joint venture with local partners but eventually
settled for franchising which was in line with their business model.
The chain was started by the McDonald brothers, Dick and Mac in 1940, but
the chain really took off after Ray Croc purchased their equity and led the
international expansion of the chain.
McDonalds provides training for its franchisees at the aptly named
Hamburger University in Illinois.

Thomas Carvelas, also known as Tom Carvel, founded Carvel Ice Cream and
is considered to be the father of modern franchising. He started selling Ice
Cream in New York in 1934. He developed new refrigeration machine and his
own formula for soft-serve ice cream. Soon after the second world war, he
started franchising his business. It was hugely successful and today Carvel
has 570 franchise outlets in USA and is available at over 8500 other stores.
There are others who say that the seeds of franchising were laid by Issac
Singer, who invited distributors to expand the availability of his sewing
machines. A little later, John Pemberton successfully tried out a franchisetype distribution system in Coca-Cola and it was hugely successful.
Advantages to the Franchisee

The entrepreneur does not have to incur all the risks that are often
associated with starting a business from a scratch.

Enters into a business that has an accepted name, product or service

Managerial assistance and upfront support is often provided by the

Franchiser.

Knowledge and behavioural pattern of the market

Maintaining quality control of products and services

Advantages to the Franchiser

Market Reach

Focus on manufacturing, quality control, product and service

innovations

Expansion programmes

Better financial management

Disadvantages of Franchising

Inability of franchiser to offer niche/localised support - to provide

service, advertising, data and actionable points from market research,
meeting timelines etc

Franchiser is bought out by another company.

Territorial protection.

Renewal of agreement/ advancement/ growth

3. Venture Capital:
Sources of Capital
1. Self
2. Family and friends
3. Suppliers and trade credit
4. Commercial banks
5. Asset-based lenders
6. Institutions and insurance cos
7. Venture capital
8. Private equity placements
9. Public equity offerings
10.

Government programs

Venture Capital

Innovative and highly technical ventures

High growth and high risk ventures

Sunrise or Emerging ventures

Phased disbursements

Management support

Multi skill support

The main features of Venture capital financing

Long term source of investment

Equity participation thro direct purchase of shares or convertible

securities

Participation in the management of entrepreneurs business

Also provide services of marketing, technology, organisational

structure

Enters when access of funds from conventional sources become

difficult

The business must have high potential of growth, not averse to the risk

Flow of funds in a phased manner and can be in a form of debt also in

initial stage

Not a permanent equity holder

Ensures the exit route in the appropriate manner - ensuring the

interest of the entrepreneur as well

Stages of Business Development Funding

A. Early stage financing

Seed capital Relatively small amounts to prove concepts and finance

feasibility studies.

Start-up Product development and initial marketing, but with no

commercial sales yet; funding to actually get company operations
started.

B. Expansion or Development financing

Second stage Working capital for initial growth phase, but no clear
profitability or cash flow yet.

Third stage Major expansion for the company with rapid sales growth,
at breakeven or positive profit levels but still private company.

Fourth stage Bridge financing to prepare company for public offering.

C. Acquisition and leveraged buyout financing

Traditional Acquisitions Assuming ownership and control of another

company.

Leveraged buyout Management of the company acquiring company

control by buying out the present owners.

Going private Some of the owners/ managers of a company buying all

the outstanding stock, making the company privately held again.

Overview of the Venture capital Industry

The role of venture capital was instrumental in promoting entrepreneurship
and industrialisation of the United States. Before World War II, venture
investment activity was a monopoly of wealthy individuals, investment
banking syndicates and few family organisations with a professional
manager.
The first step toward institutionalising the venture capital industry was in
1946 with the formation of the American R&D Corpn.in Boston with a small
pool of capital from individuals and institutions put together by General
Georges Doriot to make active investments in selected emerging businesses
such as Digital Equipment Corpn.
The next major development, the Small business Investment Company Act
of 1958, married private capital with government funds to be used by
professionally managed small business investment companies(SBIC firms) to
infuse capital into start-up and growing small businesses.
With tax advantages, government funds for leverage, and a private capital
company, SBICs were the start of the now formal venture capital industry.
Another type of venture capital firm also developed during the time was the
venture capital division of major corporations, usually associated with banks
and insurance companies, although companies such as 3M, Monsento and
Xerox also have one.
Guidelines for dealing with Venture Capitalists

Select the venture capitalist carefully

Do not work several deals in parallel

Approach venture capitalist thro an intermediary

Avoid professional help from lawyers, accountants in the initial stage

Be very careful of what is projected or promised. The Business plan

should reflect all. SWOT

Ensure and negotiate for smooth entry and exit route

Establish a high degree of trust

Synergy Win / Win situation

4. What is Social Entrepreneurship?

Social entrepreneurs are individuals with innovative solutions to societys
most pressing social problems. A social entrepreneur recognizes a social
problem and uses entrepreneurial principles to organize, create and manage
a venture to achieve social change.
While a business entrepreneur typically measures performance in profit and
return, a social entrepreneur focuses on creating social capital.
Thus, the main aim of social entrepreneurship is to further social and
environmental goals.
However, social entrepreneurs are most commonly associated with the
voluntary and not-for-profit sectors, but this need not preclude making a
profit.
Social entrepreneurship practiced with a world view or international context
is called international social entrepreneurship.
We believe that social entrepreneurs are those exceptional individuals who
dream up and take responsibility for an innovative and untested idea for
positive social change, and usher that idea from dream to reality. What
enables social entrepreneurs to make lasting impact on the most difficult
problems is a special combination of groundbreaking creativity and steadfast
execution. Although the terms are relatively new, social entrepreneurs and
social entrepreneurship can be found throughout history.
Social Entrepreneurship
Social entrepreneurs are not content just to give fish or teach
how to fish. They will not rest untill they have revolutionize the
fishing industry.

They help communities to build up social capital which gives them a

better chance of standing on their own two feet.

They help bringing about social change on a major scale.

They are agents of social change. Questioning the status quo, grabbing
new yet overlooked opportunities, not for personal gain but for social
gain.

They, in a way, change the world for better.

Making up for shortcomings of Govt. and bureaucracy.

Identify under utilised resources/ Social problems.

Social Entrepreneurship

They generally create flat and flexible organisations, with a core of

full-time paid staff, who work with few resources but a culture of
creativity.

Their organisations have an open and porous approach to their

environment. They do not see themselves as providing their clients
with a specific service; their aim is to form long-term relationships with
their users that develop over time.

While business entrepreneurs aim to generate profits, social

entrepreneurs aim to improve social values. They aim to make broadbased, long term changes, instead of few immediate small-time
results.

They recognize when a section of the society is stuck and offer

innovative ways to break out of its stagnant state.

They propagate the solution and persuade the whole society to adopt
it.

IMPORTANCE:
Social entrepreneurship sector is increasingly important for economic and
social development because it creates social and economic values:
1. Employment Development
The first major economic value that social entrepreneurship creates is
the most obvious one because it is shared with entrepreneurs and
businesses alike: job and employment creation. Estimates ranges from
one to seven percent of people employed in the social
entrepreneurship sector. Secondly, social enterprises provide
employment opportunities and job training to segments of society at

an employment disadvantage (long-term unemployed, disabled,

homeless, at-risk youth and gender-discriminated women). In the case
of Grameen, the economic situation of six million disadvantaged
women micro-entrepreneurs were improved. A similar SHG movement
is helping disadvantaged women in rural in India.
2. Innovation/ New Goods and Services
Social enterprises develop and apply innovation important to social
and economic development and develop new goods and services.
Issues addressed include some of the biggest societal problems such
as HIV, mental ill-health, illiteracy, crime and drug abuse which,
importantly, is confronted in innovative ways. An example showing
that these new approaches in some cases are transferable to the
public sector is the Brazilian social entrepreneur Veronica Khosa, who
developed a home-based care model for AIDS patients which later
changed government health policy.
3. Social Capital
Next to economic capital one of the most important values created by
social entrepreneurship is social capital (usually understood as the
resources which are linked to possession of a durable network of ...
relationships of mutual acquaintance and recognition"). Examples are
the success of the German and Japanese economies, which have their
roots in long-term relationships and the ethics of cooperation, in both
essential innovation and industrial development. The World Bank also
sees social capital as critical for poverty alleviation and sustainable
human and economic development. Investments in social capital can
start a virtuous cycle shown below:
4. Equity Promotion : Social entrepreneurship fosters a more equitable
society by addressing social issues and try into achieve ongoing
sustainable impact through their social mission rather than purely
profit-maximization. In Yunuss example, the Grameen Bank supports
disadvantaged women. Another case is the American social
entrepreneur J.B. Schramm who has helped thousands of low-income
high-school students to get into tertiary education resulting in income
generation.
To sum up, social enterprises should be seen as a positive force, as
change agents providing leading-edge innovation to unmet social

needs. Social entrepreneurship is not a panacea because it works

within the overall social and economic framework, but as it starts
at the grassroots level it is often overlooked and deserves much more
attention from academic theorists as well as policy makers. This is
especially important in developing countries and welfare states facing
increasing financial stress.

5. entrepreneurship training Program:

Small Scale business entrepreneur is a lone force behind starting,
sustaining and running his firm. Therefore, if he is strengthened the
business would automatically become strong on its own. Hence, for
sustaining the enterprise it is very important to equip him with the
support system. It was found that the mortality rate in SSI is very high.
The Government, therefore, planned Business Incubation Programs to
help small businesses by providing support at Start up or when they
find themselves unable to sustain.
The Incubation program provide consultancy support in
following forms :
1. Basic benefit of Office space
2. Coaching
3. Funding
4. Technical, Financial and Managerial
5. Marketing Research Study and Forecasting
6. Modernization schemes and financial & technical help for the same
7. Growth Strategy
8. Other common services

6. Support Organizations for SSI & Tiny Sector:

1. Small industries development organization (SIDO):

Apex body for formulating policies for SSI.
2. Small industries service institute (SISI) :
its a service agency provides tech. and mgmt
consultancy services
3. National small industries corpn. Ltd. (NSIC):
helps SSI securing govt orders
4. Small industries development bank of India (SIDBI):
Micro financing, bill discounting
5. Technology bureau for small enterprises ( TBSE):
technology transfer, facilitating joint ventures
6. Maharashtra industrial development corpn. (MIDC):
development of industrial areas by acquiring land,
developing infra stucture
7. Maharashtra small scale industries development corpn. Ltd.
(MSSIDC):
supply of raw material credit, bank guarantees, credits,
warehousing services.
8. Maharashtra industrial & technical consultancy services ltd.
(MITCON):
policy and macro studies, region and industry studies,
long range planning, computer services, market research.

1. S I D B I : (Small Industries Development Bank of India)

Functions
1. Refinance Assistance
2. Direct Assistance
3. Bills Scheme

1. Refinance Assistance
a. Seed capital scheme
b. Single window scheme
c. Provision of term loan
d. Scheme for tourism related activities
e. Equipment refinance scheme
2. Direct Assistance
a. ISO 9000 scheme
b. Project finance scheme
c. Scheme for foreign currency
d. Pre-shipment credit foreign currency loan. (PCFC)
3. Bills Scheme
a. Bill direct discounting schemes
b. Bill rediscounting scheme

SIDBI Venture Capital Ltd.

SME Growth Fund

2. S I S I: (Small Industries Service Institute)

Schemes of assistance and services
1. Technical consultancy services
a. Technical guidance
b. Identification and preparation of Business plans
c. Selection of equipment, M/c, Raw materials
d. Technical up gradation

e. Participations in Seminars, Workshops, Clinics

2. Managerial Consultancy Services
3. Economical Investigation Services
4. Entrepreneurial and Ancillary Dev. Programs

Q.3 Define the term Intrapreneur. What are the advantages of

Intrapreneurship? What steps would you advocate to promote
intrapreneurship in an organization?
What is Intrapreneurship ?

It is a corporate entrepreneurship

It is entrepreneurship in existing business

They bridge a gap between a manager and an innovator.

Their contribution is in taking new ideas and even working prototype

and turning them into profitable products and businesses.

When the ideas have become solid and functioning businesses,

intrapreneurs tend to grow bored. At this point, they often need proven
managers to maintain and develop business while they go back to
building new ventures for others to manage.

As a corp. entrepreneurship an organisation seeks to expand/ grow by

exploring new opportunities through new combinations of its existing
resources.

It is a tool for stimulating and capitalizing on individuals in an

organisation who believe that something can be done differently and in
a better way.

An Entrepreneur operates in an open world whereas an intrapreneur

operates within the organisation.
For Entrepreneur, the liability is total whereas for Intrapreneur the liability is
limited to his contract with his employers.
Advantages of Intrapreneurship

Intrapreneurial ideas offer a way to build onto or improve the corp.

business

Capital for the idea is easy to come from internal sources within a
corp. identity

The established corporate image helps to boost the chances of

success of an intrapreneur idea.

Corporates offer economies of scale in marketing, distribution and

service.

Corporates offer the unique advantage of multidisciplinary teamwork.

The intrapreneur retains the job security but as well enjoys the
freedom and prosperity.

What steps would you advocate to promote intrapreneurship in

an organization?

1. Support from ownership and top management. This support should not
simply consist of passive approval of innovative ways of thinking. Ideally, it
should also take the form of active support, such as can be seen in
mentoring relationships. Indeed, the small business owner's own
entrepreneurial experiences can be valuable to his firm's intrapreneurial
employees if he makes himself available to them.
2. Recognition that the style of intrapreneurialism that is encouraged needs
to be compatible with business operations and the organization's overall
culture.
3. Make sure that communication systems within the company are strong so
that intrapreneurs who have new ideas for products or processes can be
heard.
4. Intelligent allocation of resources to pursue intrapreneurial ideas.
5. Reward intrapreneurs. All in all, intrapreneurs tend to be creative,
dedicated, and talented in a variety of areas. They are thus of significant
value even to companies that do not feature particularly innovative
environments. Their importance is heightened, then, to firms that do rely on
intrapreneurial initiatives for growth. Since they are such important

resources, they should be rewarded accordingly (both in financial and

emotional terms).

Q.4 Define Small Enterprises. Explain characteristics of smallindustry. What are the factors responsible for their success?
Definition
Small Scale Industries.
Definition: Small Scale Industrial Undertakings are those which are
engaged in the manufacturing, procession or preservation of goods and in
which investment in plant and machinery (original cost) excluding the cost of
land and building does not exceed Rs. 1.5 crore. Those would inter alia,
include units engaged in mining or quarrying, or servicing of machinery.
(Limit up to Rs 5 crores in respect of 71 hi-tech export oriented items.)
Characteristics of Small Scale Industries
Small scale industries are the backbone of the Indian traditional structure.
They provide a variety of non-traditional, low technology product. Small-scale
industries constitute an important and crucial segment of the industry sector.
It has all the characteristics of the decentralized sector such as small size
and employment intensity and the entire lot begins to private sector. The
contribution of SSI sector to employment is next only to agriculture as a
dynamic and vibrant sector of the economy. Small scale and cottage
industries are the most important employment providing sectors of the
economy.
1. Small capital investment.
Small scale industries require less capital as compared to medium or
large-scale industries. E.g. an artisans family can start their business with
just few hundred rupees.
2.

Generate Employment.

Small scale industries are generally labor intensive and hence create
employment opportunities which is the need of the hour. It helps in
developing country to solve the problem of unemployment.
3. Personal Contact.

There is personal supervision of all activities i.e. production, purchase,

labour, and marketing of goods and it is done by the entrepreneur himself.
4. Location.
Small scale industries are generally located in rural and semi urban
areas.
5. Exploitation of human resources.
Child and women labor in particular are exploited by small scale
industries.
6. Growth.
The small scale industrial activity has been growing at faster rate even
than the largescale sector.
7. Technology.
Small scale industries do not require high level of technology.
8.

Dispersal of Manufacturing Activity.

Small- scale industries make it possible to transfer manufacturing

activities from congested metropolitan cities to the rural and semi urban
areas.

9.

Poor Organization and Management.

The management and organization of small-scale industry is poor and

negligible. There is no delegation of authority.
10.

Ownership.

Most of the small-scale industries are privately owned and organized as

sole proprietorship. The owners and the family workers generally form the
largest component of small- scale force.

What are the factors responsible for their success?

1. Labour intensive: - SSI do not require large amount of capital. They

are labour intensive and can provide employment to large amount of
people. The energy of the unemployed and the underemployed may be
utilized for productive purpose in the economy.
2. Equitable distribution of income and wealth: - By creating
opportunities for small business, small enterprises can bring about a
more equitable distribution of income and wealth which is socially
necessary and desirable.
3. Production: - SSI projects can be undertaken in a short period and
hence can increase the production in the short run and the long run.
The small sector produces a large production of the national products.
4. Dispersal of manufacturing activities: - SSI will make possible
transfer of manufacturing activity from congested cites to the rural and
semi urban areas. This will help in bringing about a balanced regional
growth.
5. Linkages: - The large scale industries create an opportunities or
facility for growth of small scale industry. The growth of large motor
industry will create opportunities for setting up of small service station
and repair centers.
6. Own identity: Small scale enterprises have their own place in the
countrys economy. Imperfect competition protects the small firms
market and enables them to exist even if they are not efficient in terms
of cost.
7. Mobilization of services: In the rural areas savings are generally
used in unproductive consumption. The growth of cottage and small
scale industry can offset the investment opportunities to people living
in under developed countries.
8. Export potential: Nearly 20% of the total value of export comes from
small scale industry. The main items of export of small scale sectors
include engineering goods, diamond cutting, pharmaceuticals , sports
goods , finished leather, ready made cotton garments , processed
foods , etc.

5. What are the challenges faced by women entrepreneurs? How

entrepreneurship would be a better career option for Women?
Women and Entrepreneurship
One of the reasons for slow economic growth in India is the relative absence
of women in the mainstream of economic activities.
Scenarios in various fields

Bureaucracy, IAS/ IPS and Armed forces

Politics

Agriculture

Education Sector

Corporate world

Entrepreneurship

How Entrepreneurship will be a favourable career for Women ?

1. Flexibility in working hours and targets
2. Profession with high elasticity It can never get crowded, no quota, no
reservation
3. Women are excellent in managing finances
4. On par or even better than men Responsibilities from early childhood
Challenges faced by Women Entrepreneurs

Male dominated society

Family Responsibilities

Social Attitude

Low mobility

Lack of education

Low need for achievement / Shift in priorities

Shortage of finance

Competition

Shortage of finance: Obtaining the support of bankers, managing the

working capital, lack of credit resources are the problems which still
remain in the males domain. Women are yet to make significant mark in
quantitative terms. Marketing and financial problems are such obstacles
where even training doesn't significantly help the women. Some problems
are structural in nature and beyond the control of entrepreneurs.
Family Conflicts: Women also face the conflict of performing of home
role as they are not available to spend enough time with their families.
They spend long hours in business and as a result, they find it difficult to
meet the demands of their family members and society as well. Their
inability to attend to domestic work, time for education of children,
personal hobbies, and entertainment adds to their conflicts.

Low mobility: Unlike men, women mobility in India is highly limited due
to various reasons. A single woman asking for room is still upon suspicion.
Cumbersome exercise involved in starting an enterprise coupled with the
officials humiliating attitude towards women compels them to give up an
idea of starting an enterprise.

Lack of Education: In India, around three- fifths (60%) of women are still
illiterate illiteracy is the root cause of socio- economic problems. Due to the
lack of education and that too qualitative education, women are not aware of
business, technology and market knowledge. Also, lack of education cases
low achievement motivation among women. Thus, lack of education creates
problems for women in the setting up and running of business enterprises.
Male dominated Society: The constitution of India speaks of equality
between sexes. But, in practice women are looked upon as able i.e. weak in
all respects. Women suffer from male reservations about a womens role,
ability and capacity and are treated accordingly. In nutshell, in the male
dominated Indian society, women are not treated equal to men. This in turn,
serves as a barrier to women entry into business.

Stiff Competition: Women entrepreneurs do not have organization set- up

to pump in a lot of money for canvassing and advertisement. Thus, they
have to face a stiff competition for marketing their products with both
organized sector and their male counterparts. Such a competition ultimately
results in the liquidation of women enterprises.

Successful Women Entrepreneurs

Kiran Shaw Muzumdar of Biocon, Shahnaz hussain, Vandana Luthra (VLCC),
Ekta Kapoor, Indra Noyee, Naina Lal Kidwai, Chanda Kochar, Shikha Sharma,
Kiran Bedi, Medha Patkar.
Conventional Businesses/ Career options
Beauty parlor, Food processing - Pickle & Spice making, Fashion designing,
Jewellary designing, Tailoring, Catering, Politics, Education.
New Areas
Mass media, Entertainment industry, Tourism, IT, Co-op Movement in Rural
India, Politics, Corporates/ MNCs, Hospitality, Social entrepreneurship
NGOs.

7. What is Social Entrepreneurship? Discuss their contribution in

todays context in urban or rural areas of India.
What is Social Entrepreneurship?
Social entrepreneurs are individuals with innovative solutions to societys
most pressing social problems. A social entrepreneur recognizes a social
problem and uses entrepreneurial principles to organize, create and manage
a venture to achieve social change.
While a business entrepreneur typically measures performance in profit and
return, a social entrepreneur focuses on creating social capital.
Thus, the main aim of social entrepreneurship is to further social and
environmental goals.
However, social entrepreneurs are most commonly associated with the
voluntary and not-for-profit sectors, but this need not preclude making a
profit.
Social entrepreneurship practiced with a world view or international context
is called international social entrepreneurship.

We believe that social entrepreneurs are those exceptional

individuals who dream up and take responsibility for an innovative and
untested idea for positive social change, and usher that idea from dream to
reality.
What enables social entrepreneurs to make lasting impact on the most
difficult problems is a special combination of groundbreaking creativity and
steadfast execution.
Although the terms are relatively new, social entrepreneurs and
social entrepreneurship can be found throughout history.
a) In context of India, the name of Vinoba Bhave tops the list of social
entrepreneurs. He was the Founder and leader of the Land Gift
Movement, or the Bhoomi Dhan Movement by which he caused
the redistribution of more than 7 million acres of land to aid India's
untouchables and landless.
b) Florence Nightingale of the U.K. is also recognised as a social
entrepreneur for her invaluable contribution in improving the health
care facilities. In fact she was the founder of the first nursing school
and the developer of modern nursing practices
c) Muhammad Yunus, founder and manager of Grameen Bank,
is also an eminent social entrepreneur from our neighbouring country of
Bangladesh who by his untiring efforts has brought about a positive change
in the lives of the poor oppressed women groups.
d) Another name that deserves special mention here is that of
Jay Vikas Sutaria who through his website Bhook.com is trying to fight the
hunger problem of India.
e) Aravind Eye Hospital & Aurolab
Social Entrepreneur: Dr.Govindappa Venkataswamy (Dr. V) & David Green
Type of Organization: Trust
Location: Madurai, India
Website: www.aravind.org
Mission: Making medical technology and health care services accessible,
affordable and financially self-sustaining
F)SKS India

Social Entrepreneur: Vikram Akula

Type of Organization: For-profit
Website: www.sksindia.co
Mission : Empowering the poor to become self-reliant through affordable
loans
G)Shri Mahila Griha Udyog Lijjat Papad
Type of Organization: Society
Website: www.lijjat.com
Shri Mahila Griha Udyog Lijjat Papad is a Womens organisation
manufacturing various products

Q.10What are the Sources of Capital and explain the factors

determining the capital requirement of a venture. What is the
specific role of a venture capital partner?
(prefer the answer of short note on venture capital)

Q.6 What are the main sources of entrepreneurial ideas?

How does an entrepreneur go about identifying and
evaluating Opportunities?
Sources of new ideas for Entrepreneurs
1. Consumers the potential consumer should be the final focal point of ideas for the entrepreneurs.
The attention to inputs from potential consumers can take the form of informally monitoring potential
ideas or needs or formally arranging for consumers to have an opportunity to express their concerns.
Care needs to be taken to ensure that the new idea or the needs represents a large enough market to
support a new venture.
2. Existing Companies with the help of an established formal methods potential entrepreneurs and
intrapreneurs can evaluate competitive products & services on the market which may result in new
and more market appealing products and services.
3. Distribution channels members of the distribution channels are familiar with the needs of the
market and hence can prove to be excellent sources of new ideas. Not only do the channel members
help in finding out unmet or partially met demands leading to new products and services, they also
help in marketing the offerings so developed.
4. Government it can be a source of new product ideas in two ways firstly, the patent office files
contain numerous product possibilities that can assist entrepreneurs in obtaining specific product

information, and secondly, response to government regulations can come in the form of new product
ideas.
5. Research & development Entrepreneurs own R&D is the largest source of new idea. A formal
and well-equipped research and development department enables the entrepreneur to conceive and
develop successful new product ideas.