Student handbook of-Entrepreneurship Development & Business Ethics

Module-I: Entrepreneurship Development

Chapter-1: Introduction

Topics Covered:
 Meaning, Elements, Determinants and Importance of Entrepreneurship
and Creative Behavior
 Entrepreneurship and Micro, Small and Medium Enterprises
 Role of family business in India
 The Contemporary Role Model in Indian Business: their values, business
philosophies and operations
 Conflict in family business and resolutions

Meaning, Elements, Determinants and Importance of

Entrepreneurship and Creative Behavior:
Meaning -
An entrepreneur is Someone who exercises initiative by organizing a venture to take
benefit of an opportunity and, as the decision maker, decides what, how, and how
much of a good or service will be produced. An entrepreneur supplies risk capital as a
risk taker, and monitors and controls the business activities. The entrepreneur is
usually a sole proprietor, a partner, or the one who owns the majority of shares in an
incorporated venture. If one desires to be an entrepreneur, the given equation is what
describes what an entrepreneur actually is
Entrepreneur + Capital = Products + Customers = Business.
Definitions-
There remain some important definitions to understand who an entrepreneur is as
follows-
(i) According to Oxford Dictionary an entrepreneur is “A person who sets up a
business or businesses, taking on financial risks in the hope of profit”
(ii) According to the International Encyclopaedia, an entrepreneur is “An individual
who bears the risk of operating a business in the face of uncertainty about the future
conditions”.

1|Page
(iii) Schumpeter’s Definition - “The entrepreneur, in an advanced economy is an
individual who introduces something new in the economy - a method of production
not yet tested by experience in the branch of manufacturing, a product with which
consumers are not yet familiar, a new source of raw material or of new markets and
the like”.
(iv) Adam Smith’s definition - “The entrepreneur is an individual, who forms an
organization for commercial purpose. She/he is proprietary capitalist, a supplier of
capital and at the same time a manager who intervenes between the labour and the
consumer”. “Entrepreneur is an employer, master, merchant but explicitly considered
as a capitalist”
(v) Peter F. Drucker’s Views on Entrepreneur - “An entrepreneur is the one who
always searches for change, responds to it and exploits it as an opportunity.
Innovation is the specific tool of entrepreneurs, the means by which they exploit
changes as an opportunity for a different business or different service”.
(vi) Richard Cantillon’s definition - “A person who pays certain price for a product to
resell it at an uncertain price thereby making decision about obtaining and using
resources while assuming the risk of enterprise”.
(vii) According to W.B. Gartner in the year 1985 - Entrepreneur is a person who
started a new business where there was none before. For John Mackey, Co-CEO of
Whole Foods, Healthy food has always been his passion. He built his company in a
unique way. He wrote a book about it, called “Conscious Capitalism”. He is a great
entrepreneur who showed the world a new and better way to do business. He made his
passion business and did it with pleasure.
History of the term ‘Entrepreneur’-
The term entrepreneur is a French word, and is derived from the French word
“enterprendre”. It means “to undertake”. It is commonly used to describe an
individual who organizes and operates a business or businesses, taking on financial
risk to do so. Around 1700 A.D. the term was used for architects and contractor of
public works. In many countries, the term entrepreneur is often associated with a
person who starts his-her own new business. The term was first defined by the Irish-
French economist Richard Cantillon [given above] and the term first appeared in the
French Dictionary “Dictionnaire Universel de Commerce” of Jacques des Bruslons
published in 1723. To sum up meaning of an entrepreneur “An entrepreneur is a
person who develops a new idea and takes the risk of setting up an enterprise to
2|Page
produce a product or service which satisfies customer needs”. All entrepreneurs are
business persons, but all business persons are not entrepreneurs. To take an example,
a woman who sits by the roadside, selling the same type of food, from the same size
of saucepan or pot, from the same table top, and may not have been able to change her
standard of living to any appreciable extent is a business person but not an
entrepreneur. The entrepreneur on the other hand is the business person who is not
satisfied with his/her performance and therefore always finds ways to improve and
grow.
Elements and Characteristics/Qualities of an Entrepreneur-
In the 20th century the theorist Arthur H. Cole defined an entrepreneur as an
‘organization builder’. It can be viewed as a quality or a trait of an entrepreneur.
Entrepreneurs have many of the same character traits as leaders, similar to the great
man theories of leadership. Entrepreneurs are often contrasted with managers and
administrators who are said to be more methodical and less prone to risk-taking. Still,
a vast number of certain traits seem to be associated with entrepreneurs and are
commonly seen in most of them. The successful Entrepreneurs are those who are able
to accomplish the objectives they have set for themselves i.e., they are able to carry
out the projects of new ventures and put them on the track of further operation.
Entrepreneurs possess several qualities, which according to Napoleon are 90
attributes. Some of those have been given below. If one identifies some of, or all of
these traits, in your SWOT analysis, consider yourself to be an entrepreneur in
making. However, some characteristics even include negative traits such as - they are
cunning, opportunistic, creative, and unsentimental.
(i) Independent & achiever - they are rough, tough & pragmatic people who are
driven by needs of independence and achievement
(ii) Optimistic - They are extreme optimists in their decision-making processes.
(iii) Keen learners - They have the ability to prioritise ideas over data, to be nomadic
and to learn endlessly.
(iv) Urge to build - They are primarily motivated by an overwhelming need for
achievement and strong urge to build a business empire.
(v) Initiative - An entrepreneur takes actions that go beyond job requirements or the
demand of the situation.
(vi) Opportunity grabber - An entrepreneur is quick to see and seize opportunities.
(vii) Persistent - An entrepreneur is not discouraged by difficulties and once the goal
3|Page
is set, he/she is committed to the goal and will become completely absorbed in it.
(viii) Information seeker - An entrepreneur undertakes personal research on how to
satisfy customers and solve problems. He/she always wants to learn things which will
help the business to grow.
(ix) Believer in quality and efficiency - An entrepreneur is always competing with
others to do things better, faster, and at less cost he/ she strive to achieve excellence.
(x) Risk taker - They place themselves in situations involving moderate risk so they
are moderate risk takers.
Determinants and Importance of Entrepreneurship and Creative Behavior-
1. Economic and dynamic activity- Entrepreneurship is an economic activity
because it involves the creation and operation of an enterprise with a view to creating
value or wealth by ensuring optimum utilization of scarce resources. Since this value
creation activity is performed continuously in the midst of uncertain business
environment, therefore, entrepreneurship is regarded as a dynamic force.
2. Related to innovation- Entrepreneurship involves a continuous search for new
ideas. Entrepreneurship compels an individual to continuously evaluate the existing
modes of business operations so that more efficient and effective systems can be
evolved and adopted. In other words, entrepreneurship is a continuous effort for
synergy (optimization of performance) in organizations.
3. Profit potential- “Profit potential is the likely level of return or compensation to
the entrepreneur for taking on the risk of developing an idea into an actual business
venture.” Without profit potential, the efforts of entrepreneurs would remain only an
abstract and a theoretical leisure activity.
4. Risk bearing- The essence of entrepreneurship is the ‘willingness to assume risk’
arising out of the creation and implementation of new ideas. New ideas are always
tentative and their results may not be instantaneous and positive.
An entrepreneur has to have patience to see his efforts bear fruit. In the intervening
period (time gap between the conception and implementation of an idea and its
results), an entrepreneur has to assume risk. If an entrepreneur does not have the
willingness to assume risk, entrepreneurship would never succeed.
Entrepreneurial Process-
Entrepreneurship is a process, a journey, not the destination; a means, not an end. All
the successful entrepreneurs like Bill Gates (Microsoft), Warren Buffet (Hathaway),

4|Page
Gordon Moore (Intel) Steve Jobs (Apple Computers), Jack Welch (GE) GD Birla,
Jamshedji Tata and others all went through this process.
To establish and run an enterprise it is divided into three parts – the entrepreneurial
job, the promotion, and the operation. Entrepreneurial job is restricted to two steps,
i.e., generation of an idea and preparation of feasibility report. In this article, we shall
restrict ourselves to only these two aspects of entrepreneurial process.

Figure 1.1: The Entrepreneurial Process

1. Idea Generation- To generate an idea, the entrepreneurial process has to pass
through three stages-
a. Germination-This is like seeding process, not like planting seed. It is more like the
natural seeding. Most creative ideas can be linked to an individual’s interest or
curiosity about a specific problem or area of study.
b. Preparation- Once the seed of interest curiosity has taken the shape of a focused
idea, creative people start a search for answers to the problems. Inventors will go on
for setting up laboratories; designers will think of engineering new product ideas and
marketers will study consumer buying habits.
c. Incubation- This is a stage where the entrepreneurial process enters the sub-
conscious intellectualization. The sub-conscious mind joins the unrelated ideas so as
to find a resolution.
2. Feasibility study:
Feasibility study is done to see if the idea can be commercially viable.

5|Page
It passes through two steps-
a. Illumination- After the generation of idea, this is the stage when the idea is
thought of as a realistic creation. The stage of idea blossoming is critical because
ideas by themselves have no meaning.
b. Verification-This is the last thing to verify the idea as realistic and useful for
application. Verification is concerned about practicality to implement an idea and
explore its usefulness to the society and the entrepreneur.
Importance of Entrepreneurship-
Entrepreneurship offers the following benefits-
Benefits of Entrepreneurship to an Organization are as follows-
1. Development of managerial capabilities -The biggest significance of
entrepreneurship lies in the fact that it helps in identifying and developing managerial
capabilities of entrepreneurs. An entrepreneur studies a problem, identifies its
alternatives, compares the alternatives in terms of cost and benefits implications, and
finally chooses the best alternative.
This exercise helps in sharpening the decision making skills of an entrepreneur.
Besides, these managerial capabilities are used by entrepreneurs in creating new
technologies and products in place of older technologies and products resulting in
higher performance.
2. Creation of organizations- Entrepreneurship results into creation of organizations
when entrepreneurs assemble and coordinate physical, human and financial resources
and direct them towards achievement of objectives through managerial skills.
3. Improving standards of living- By creating productive organisations,
entrepreneurship helps in making a wide variety of goods and services available to the
society which results into higher standards of living for the people.
Possession of luxury cars, computers, mobile phones, rapid growth of shopping malls,
etc. are pointers to the rising living standards of people, and all this is due to the
efforts of entrepreneurs.
4. Means of economic development- Entrepreneurship involves creation and use of
innovative ideas, maximization of output from given resources, development of
managerial skills, etc., and all these factors are so essential for the economic
development of a country.

6|Page
Entrepreneurship and Micro, Small and Medium Enterprises:
Entrepreneurs play a key role in the economic development of a country. Economic
development of a country depends primarily on its entrepreneurs.
Entrepreneurship may be regarded as powerful tool for economic development of a
predominantly agricultural country like India. The Micro, Small and Medium
Enterprises (MSMEs) contribute about 7-8 per cent of India’s
GDP, 45 per cent of the manufacturing output and 40 per cent of the exports. They are
recognized as the engine of growth for the economy. After agriculture, MSME sector
employs the largest number of persons. MSMEs are widely dispersed throughout the
country and produce adverse range of products catering to various segments of the
market. The geographic spread, diverse product range and potential for innovation
and employment generation make them extremely important in the context of
economic growth with equity and regional balance. It is clear that to solve the
problem of unemployment that development of SME’s and self employment. There
is a great need to attract more and more young people to undertake entrepreneurship
activities for self employment. The entrepreneurship is not only beneficial for
individual entrepreneur but it results in development of economy as whole. The
presence of entrepreneurs in any economy is sign of economic growth. They not only
initiate but also sustain the process of economic development.
This is an entrepreneurial age. Entrepreneurs are driving a revolution that is
transforming and renewing economies worldwide. Entrepreneurship is the essence of
free enterprise because businesses create a very large proportion of innovative
products that transform the way people work and live. Entrepreneurship has been
considered the backbone of economic development. It has been well established that
the level of economic growth of a region to a large extent, depends on the level of
entrepreneurial activities in the region.
An Entrepreneur- An entrepreneur is often considered as a person who sets up his
own business or industry. He has initiative, drive, skill and spirit of innovation who
aims at high goals. The entrepreneur is the individual that identifies the opportunity,
gathers the necessary resources and is ultimately responsible for the performance of
the organization. Entrepreneurs are action oriented, highly motivated individuals who
take risks to achieve goals.

7|Page
“A person having entrepreneurial qualities is an entrepreneur. An entrepreneur is the
person who bears the risk of uncertainty in business.”
The Concept of Entrepreneurship- Entrepreneurship is the purposeful activity of
an individual or a group of associated individuals, undertaken to initiate maintain or
aggrandize profit by production, or distribution of economic goods and services.
Entrepreneurship is very often associated with adventurism, risk bearing, innovating
creativity etc. It is concerned with making dynamic changes in the process
of production, innovation in production, new usage for materials etc. It is a mental
attitude to take calculated risks with a view to attain certain objectives.
It also means doing something in a new and better manner. Entrepreneurship
development and training is one of the key elements for
the promotion of micro, small and medium enterprises (MSMEs), especially for creati
on of new enterprises by the first generation entrepreneurs.
Micro, Small and Medium Enterprises-
In most of the developing countries like India, SME’s constitutes an important and
crucial segment of the industrial sector. They play an important role in employment
creation, resource utilization and income generation and helping to promote changes
in a gradual and phased manner.
They have been given an important place in the framework of Indian planning
beginning both for economic and ideological reasons. The reasons are obvious. The
scarcity of capital in India severely limits the number of non-farm jobs that can be
created because investment costs per job are high in large industries. An effective dev
elopment policy has to attempt to increase the use of labour, relative to capital to the
extent that it is economically efficient. SME’s are generally more labour intensive
than larger organizations. As a matter offact, SME’s has now emerged as a dynamic
and vibrant sector for the Indian economy in recent years. It has attracted so much
attention not only from industrial planners and economists but also from sociologists,
administrators and politicians.
Definitions Of Micro, Small & Medium Enterprises-In accordance with the
provision of Micro, Small & Medium Enterprises Development(MSMED) Act, 2006
the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
(a) Manufacturing Enterprises: The enterprises engaged in the manufacture or
production of goods pertaining to any industry specified in the first schedule to the
industries (Development and regulation) Act, 1951) or employing plant and
8|Page
machinery in the process of value addition to the final product having a distinct name
or character or use. The Manufacturing Enterprise is defined in terms of investment in
Plant & Machinery.
(b) Service Enterprises: The enterprises engaged in providing or rendering of
services and are defined in terms of investment in equipment. The limit for investment
in plant and machinery / equipment for manufacturing / service enterprises, as
notified, vide S.O. 1642(E) dtd.29-09-2006 are as under:
Enterprise Manufacturing(Investment Service (Investment in
in Plant & Machinery) Equipments)
Micro 0-25 lakh 0-10 lakh
Small 25 lakh to 5 Crores 10 lakh to 2 Crores
Medium 5 Crores to 10 Crores 2 Crores to 5 Crores
Table-1: Service Enterprise
Problems of Small & Medium Enterprises-
While the small entrepreneurs can set up a unit even with less capital, enjoy quick
returns and have the flexibility to handle the vagaries of the market, they have to face
many problems like the following:
1. Paucity of Finance: The small entrepreneurs possess a weak financial structure
and find it extremely difficult to obtain credit because of lack of collateral security.
This acts as a big handicap, especially in the initial stages, in most of their
operations like their ability to hire the best workers or to purchase the latest
machinery and equipment or to acquire sophisticated technology.
2. Poor availability of power and other infrastructure: Though
infrastructural bottlenecks are problems for big businesses too, yet they can
overcome these problems to some extent because of their financial strength e.g.
generating their own power, or even influencing the government in framing its
policies sometimes. The small entrepreneur on the other hand has to battle with them.
3. Obsolete Technology: Most small businesses use old technologies because they
cannot afford better. As a result the quality of their goods is inferior and the cost of
production is higher than in case of other big ventures. This has acted as a serious
handicap especially after opening up of the economy when they have had to compete
with imported goods.

9|Page
4. Marketing Problems: The small entrepreneur cannot supply standardized goods
of high quality and as a result cannot compete with products of large companies or
MNCs. They usually do not have a brand name or loyalty, as there are hardly any
funds for advertising or sales promotion. All these increase their marketing woes. 5.
Poor Managerial and Organizational Skills: usually the entrepreneur has to perform a
multitude of diverse functions invariably without having any exposure to professional
education or formal training. The large sector on the other hand can hire the best
qualified and trained people.
5. High Incidence of Sickness: 7 out of 10 small businesses usually fall sick and die
within3to5 years. Main causes for this are a wrong choice of product, poor managerial
skills, lack of experience, poor quality of products because of the use of old
technologies, etc. Apart from the above-mentioned problems the small entrepreneur
has weak bargaining power to deal with suppliers and financial institutions, has to
face bureaucratic red Taoism and is unable to invest in R & D. After the opening up
of the economy the small sector has been finding it extremely difficult to compete
with the high quality goods available in the market.

Role of Family Business in India:

In India the majority of businesses are in the dominant control of the families. It is
estimated that 90% of the business in India is controlled by families. From 'Mom and
Pop' Kirana stores to large conglomerates and SME's one finds family run businesses.
Most of the big corporate business houses like Tatas, Ambanis, Birlas, Godrej,
Wadias, Munjals, Mahindra, Thapars, Mittals, Shaparji Paollonji, Jindals, Adanis,
Anil Aggarwal – Vedanta, Bajaj, Ruias, Ranbaxy, Times of India and many more are
all controlled by families. The role of family and the family patriarch is quite
important in India.
There are many families who have separated and partitioned. Some such families
have succeeded and the separated branches have also grown big, while in some cases
the branches which have separated or the business as a whole have failed or collapsed.
There are mixed reports as and when the family separate.
Most of the family businesses are still not very old businesses. A number of business
activities led by families started post-independence and gained momentum thereafter.
Since families are concerned about their personal wealth creation and preservation,

10 | P a g e
the brand of their family names, family reputation and goodwill, the elements of self-
discipline and self-governance are high.
It is noticed that where the inheritance is amongst the immediate family members, for
example from father to sons and daughters, the first level inheritance which implies
two generations running the family business, the chances of disputes and succession
related issues are manageable. However, the problems arise when at the first stage it is
the father and his brothers who are running the family business and the next
generation of each of the brothers also start joining the business. There are several
families who have undergone partition or disputes at this stage.
Indian families have been exposed to these challenges and in the interest of family
business, family wealth, goodwill and family reputation the family arrangements have
been made or the family constitutions have been written to protect the interest of each
branch of the family. Wherever these sensitive issues have been dealt with
professionally the family business has survived.
In India traditionally the family business is the norm. The trend continues. However,
there are certain business houses where the professional teams are taking over to run
the empires. These cases are also multiplying as the wealth is growing at different
levels.
The recent cases are of Tata Group where a serious head hunting programme was
done to find a successor to Mr. Ratan Tata. Mr. Mistry was appointed to head the Tata
Group. The famous IT company Infosys has seen the change at the top level when Mr.
Narayan Murthy has been successful in appointing the well-known professional
personality Mr. Vishal Sikka to head the business founded by him.
Family business remains the norm for a large section of society in India and is not
going to fade away. There are obvioulsy going to be exceptions depending upon the
size and nature of business.
If the family businesses are planned properly and the family plans professionally on
their investment companies and business operating companies the same shall continue
to be a successful business model. In a growing economy and in view of the global
reach family businesses are undergoing changes and the element of professional
management and professional participation is increasing which is the key to a
successful business model. Today the young generation of each family is well
educated, exposed to global standards and situations and trained for professional
management which all lays down a robust foundation for future stability and growth.
11 | P a g e
Key Challenges-
Inter family disputes, the patriarch acting as a control freak, lack of professional
management and professional participation, absence of family constitution on running
of business and handling family wealth, lack of written understanding to address any
conflict, lack of communication amongst the family members, unsound and unfair
policies for the employees, lack of quality controls and to keep pace with the modern
techniques and advancements are the key challenges to any family firms in India.
Required To Be Managed/Governed-
The family firms are certainly changing the way they are managed and governed. The
decision making ability in a family run business is high, however, to manage the
business professionally and to get the right talent to run the business is always a
challenge in even large business and corporate houses.
There are many business houses where the trend is changing especially where the
young generation is educated and educated well in India and overseas, and the new
generation realizes the value which can be added by the right governance structure,
right talent and right delegation. The new generation is also keen to have alliances and
joint venture in India and overseas. The world is flat and global opportunities are
available by way of FDI, JVs, and equity participation which is being experienced and
realized by the youth and the new generation.
Furthermore, the ideas of listing the company in India and/or overseas and creating
value are also on the wish list and dream of the new generation. It can be noticed that
large families are shrinking to unit families; and families today are willing to give
chance to next generation.
The families are increasingly retaining professionals to run the businesses and are also
interested in settling down the succession related issues relating to their personal
assets as well as running of business in a professional manner.

12 | P a g e
The Contemporary Role Model in Indian Business- Their Values,
Business Philosophies and Operations:
There are a huge number of entrepreneurs doing very well for them as well as for the
economy. Before details of some selected entrepreneurs are given.
Some good business philosophies are being given as under-
(i) Dhirajlal Hirachand Ambani- better known as Dhirubhai Ambani“Think big,
think fast, think ahead. Ideas are no one’s monopoly”.
(ii) Aafreen Ansari – “Nothing or nobody else except you can stop you from being
an entrepreneur”
(iii) Sachin and Binny Bansal, Flipkart – “The core of any business is to earn
money. You have not done your job well until you find a stranger who is willing to
open his/her wallet to give you money for the service/products that you are offering.”
(iv) Ritesh Agarwal, OYO Rooms – “It is extremely important to build something
that a 100 people absolutely love using rather than make something that a 1000 people
would just, kind of, like.”
(v) Kunal Shah, FreeCharge – “If you fully accept the worst that can ever happen in
your journey, fear won’t ever be an obstacle in starting-up.”
Women Entrepreneurs in India-
Some young women entrepreneurs who dared to follow their dreams are:
1. Kiran Mazumdar Shaw-
“I really believe that entrepreneurship is about being able to face failure, manage
failure and succeed after failing.”
Kiran Mazumdar is an Indian entrepreneur. She is the Chairman & Managing Director
of Biocon Limited a biotechnology company based in Bangalore. Kiran Mazumdar-
Shaw was born on March 23, 1953 in Bangalore, India.
Mazumdar-Shaw completed her schooling from the city’s Bishop Cotton Girl’s High
School (1968). She wanted to join medical school but instead took up biology and
completed her BSc Zoology Honors course from Mount Carmel College, Bangalore
University (1973). She later did her post-graduation in Malting and Brewing from
Ballarat College, Melbourne University (1975).
She worked as a trainee brewer in Melbourne and as a trainee maltster in Australia.
She also worked for some time as a technical consultant at Jupiter Breweries Limited,

13 | P a g e
Calcutta and as a technical manager at Standard Makings Corporation, Baroda
between 1975 and 1977.
She started Biocon in 1978 and spearheaded its evolution from an industrial enzyme
manufacturing company to a fully integrated bio-pharmaceutical company with a
well-balanced business portfolio of products and a research focus on diabetes,
oncology and auto-immune diseases. She also established two subsidiaries- Syngene
in 1994.
Her pioneering work in the sector has earned her several awards, including the
prestigious Padma Shri in 1989 and the Padma Bhushan in 2005 from the government
of India. She was recently named among TIME magazine’s 100 most influential
people in the world. She is on the Forbes list of the world’s 100 most powerful
women and the Financial Times’ top 50 women in business list. She is also a member
of the board of governors of the prestigious Indian School of Business and Indian
Institute of Technology Hyderabad.
Her Values-
i. Belief in herself
ii. Leadership
iii. Vision
iv. Go-getter spirit
v. Not afraid of failures
Her Business Philosophy-
i. Ethics in business
ii. Precision in work
iii. Quality
Her Behavioural Orientation-
i. Courageous
ii. Undeterred by set-backs
iii. Corporate citizenship
2. Ekta Kapoor-
Ekta Jeetendra Kapoor was born on 7th June 1975. She started her career by taking
rupees 50000/- from her father to start a business venture, in which she was not
successful. This did not dampen her spirit and with encouragement from her father
she is today an Indian TV and film producer.

14 | P a g e
She is the Joint Managing Director and Creative Director of Balaji Telefilms, her
production company. She did her schooling at Bombay Scottish School, Mahim and
studied at Mithibai College Mumbai.
She has produced numerous soap opera, television series and movies. Her most
popular television series include Hum Paanch, Kyunki Saas Bhi Kabhi Bahu Thi,
Kahaani Ghar Ghar Kii, Kasauti Zindagi Ki, Kahin To Hoga, Kahin Kissi Roz,
Kusum, Kaisa Ye Pyar Hai, Kasam Se and Bandini. She is currently producing
Pavitra Rishta, Bade Achhe Lagte Hain, Parichay, Kya Huaa Tera Vaada etc.
She branched out into Bollywood movie production in 2001 beginning with Kyo
Kii… Main Jhuth Nahin Bolta. Kucch To Hai and Krishna Cottage based on
supernatural themes followed in 2003 and 2004. Kyaa Kool Hai Hum starring her
brother Tusshar Kapoor proved to be her breakout hit and went on to become one of
the highest earners of 2005. She then went on to co-produce Shootout at Lokhandwala
with Sanjay Gupta which became a profitable venture at the box office. Mission
Istanbul and EMI – Liya Hai Toh Chukana Parega in collaboration with Sunil Shetty
followed.
The years 2010 and 2011 proved to be important for her with critical and commercial
success such as Love Sex aur Dhokha, Once Upon a Time in Mumbai, Shor in the
City, Ragini MMS and The Dirty Picture. Her upcoming productions include several
films and TV soaps.
Her Values-
i. Complete belief in family traditions & family values
ii. Decisions based on instinct or sixth sense
iii. Persistence
iv. Hard work & diligence
Her Business Philosophy-
i. Expand after a humble beginning
ii. “There is no rest in business”
Her Behavioural Orientation-
i. Simplicity
ii. Honesty
iii. Innovation

15 | P a g e
3. Aishwarya Nair-
According to her she was inspired by her grandfather and fondly says “And clearly,
our grandfather is our inspiration. First, he set up a successful textile business namely
The Leela Palace, right from scratch and then he began the hospitality venture when
he was 64 years old. There’s no stopping him,” Aishwarya says. A brand that is
dedicated to luxury, the sisters have added a breath of fresh air to the workplace.
With Aishwarya capitalizing on her talent in the bakery department, she is constantly
innovating by organizing pastry exhibitions and gourmet pet food in the food and
beverage division. She always had a creative flair. And her family recognized it at the
right time and channeled it towards food and beverage. She picked up her skill for
baking at the Mandarin Oriental Hotel, New York City, where she worked soon after
her specialized course in culinary arts management at the Culinary Institute of
America, New York. She is also responsible for wine acquisition for the group, she
hosts exclusive wine tastings in all the seven operating properties in India. She is also
working with two international fine dining brands, Megu and Le Cirque, both of
which launched in The Leela Palace, New Delhi.
Values-
i. Zeal to learn
ii. Taking inspiration from family members
iii. Innovation as key to success
Business Philosophy-
i. Treating employees well
ii. Doing social good
iii. Carrying on ethical business
Behavioural Orientation-
i. Humility
ii. Simplicity
iii. Open minded
4. Dr. Swati Piramal-
Swati A. Piramal is the Vice Chairperson of Piramal Life Sciences Limited and
Director of Piramal Healthcare Limited.
Dr. Piramal received one of India’s highest civilian honour’s, the Padmashri award,
by the President of India, Ms. Pratibha Patil on 4th April, 2012 She has been
nominated as one of the 25 Most Powerful Business Women in India eight times and
16 | P a g e
is now a member of the Hall of Fame of the Most Powerful Women. She was the first
woman in 90 years to head the Apex Chamber of Commerce ASSOCHAM in 2009-
10. She has contributed towards innovations in Public Health Services and other
projects.
She has been a part of public policy related to health care which led to major policy
changes that help reduce the spread of life-threatening diseases. Dr. Swati Piramal
also serves on Indian Government public policy expert committees for trade,
planning, environment, arts, women’s entrepreneurship, national integration and
regional development. Dr. Piramal is a member of many Indian and foreign business
councils, and has received numerous Indian and international awards.
Her Values-
i. Doing good for society
ii. Extending helping hand
iii. Courtesy & humility
Her Business Philosophy-
i. Innovation as mantra of success
ii. Ethical business
Her Behavioural Orientation-
i. Hard working
ii. Persistence
iii. Enthusiasm
iv. Self confidence
5. Ameera Shah – Promoter and MD, Metropolis Healthcare-
In 2001, when Ameera Shah, then 21, returned from the US to work for her father
Sushil Shah’s standalone path lab in Mumbai, she faced skepticism from people she
wanted to partner with. Their concern was “We have done 25 acquisitions or
partnerships with pathologists, who are usually doctors in their 50s or 60s”.
For them, partnering with a young girl from a non-medical background was
unthinkable, Shah recalls. In 2006, when Shah wanted to raise private equity funding,
a few investors asked her if she intended to abandon the venture after getting married
and having children. Subsequently, marquee investors like ICICI Ventures, Warburg
Pincus, Carlyle and KKR reposed faith in her. Shah, a finance graduate from the
University of Texas, Austin, doesn’t face these questions anymore. She has managed
to establish Metropolis as a global chain of 130 labs and 1,200 centres across six
17 | P a g e
countries, employing 4,000 people. In fact, Metropolis is one of the top three path lab
chains in India today.
Shah overcame gender stereotypes by building trust through a human connect with
stakeholders and persisting with her chosen path. This, she says, is the learning that
she imparts to young women entrepreneurs whom she mentors in her spare time.
Values-
i. Hard work
ii. Persistence
iii. Extreme self-confidence
Business Philosophy-
i. Continue despite obstacle
Behavioural Orientation-
i. Sincere
ii. Good communication skills
iii. Dedication in work
6. Vandana Luthra-
Vandana Luthra is an entrepreneur who can be said to be embodiments of her
enterprise. She is slim and svelte. She carries herself with the grace that only comes
with enormous self confidence. She’s the founder and mentor of the VLCC, India’s
leading slimming, beauty and fitness brand, and one with seven outlets in Abu Dhabi,
Dubai and Sharjah, and many more to open. There are VLCC slimming, beauty and
fitness centers in Muscat and Bahrain, and by next year there will be a total of some
28 across the Middle East.
The largest number of VLCC centers, of course, is in Ms. Luthra’s native India – 150
of them in 75 cities. She facilitates professional development through her vocational
training school, the VLCC Institute of Beauty, Health & Management, which
currently has 43 campuses in 35 cities.
Ms. Luthra says “The entrepreneur as an educator – That would be a fair way to
characterize me and Fitness and well-being are a matter of education, and for that you
need skilled trainers.” Her own training after graduating from Delhi University was in
nutrition and cosmetology in Germany. Then Ms. Luthra took a series of specialized
courses and modules in beauty care, fitness, food and nutrition and skin care in
London, Munich and Paris. And then she returned to her middle-class home in New
Delhi, India’s capital, and started a neighbourhood beauty parlour.
18 | P a g e
Values-
i. Good clean business
ii. Doing good to women in particular
iii. Belief in good heath
Business Philosophy-
i. Healthy life – Happy life
Behavioural Orientation-
i. Good communication
ii. Smart & sophisticated
iii. Good soft skills
7. Hamsa Vamanan and Priyanka Narasimhalu-
Paaduka is the entrepreneurial venture of two close friends, Hamsa Vamanan and
Priyanka Narasimhalu. It was the result of the passion they shared for art. Both of
them had learnt art and had hoped to make it their profession. However, despite being
good artists they were not too successful at selling their paintings. Eventually, they
realized that a career in painting was not working for them.
According to Hamsa “It was a dull and gloomy phase that we went through, we
wanted to do something with art but were not sure of what, since we had no artistic or
business background. We did not know anything about how to sell art or how to push
it.” Then one day, they realized that instead of paintings, they should put their creative
side to good use and decided to “Paint something that people can afford to buy.” That
was motivation enough for them. Both were naturally drawn to footwear and thought
of painting and embroidering on footwear.
Once they had the idea there was no looking back. Launching a Facebook page in
2011 they decided to market their products in their college itself.
Soon, orders flooded in and the business was on its way. Their college advised them
to apply for the Tata NEN initiative, which helped them tremendously. Not having a
business background was their main challenge. They had invested their pocket money
into this venture.
Both Hamsa and Priyanka faced no problems from family where this venture was
concerned. Nor did they have any issues with being young women who went into
entrepreneurship.

19 | P a g e
Values-
i. Go-getter spirit
ii. Passion
iii. Achievers
Business Philosophy-
Creativity can help you reach heights
Behavioural Orientation-
i. Caring & loving human beings
ii. Concern for society
iii. Patience
8. Srijayapriya Balasundaram, Srinidhi Sridharan, Aparrna Sivasubramanian
and Akshaya Sivaraman – Friends who Turned Business Partners-
Srijayapriya Balasundaram, Srinidhi Sridharan, Aparrna Sivasubramanian and
Akshaya Sivaraman are four friends who were all interested in starting a business.
They put their heads together and came up with the idea of doing something
ecofriendly.
The four girls were all students of MOP Vaishnav College for Women, in Chennai.
MOP has a bazaar every year where all entrepreneurs in the college can put up a stall.
The four of them decided to put up a stall with ecofriendly jute and cotton bags made
by a women’s self-help group. They purchased hand woven bags, customized them
and sold them at this bazaar. The feedback was excellent and thus” Diva Bags” was
born.
The motivation for them to start the business was the continuation of their friendship.
The four girls are now in different parts of India but each contributes to the business
and is trying to make it grow in her area of residence now. They run the business
through web sales. The bazaar was just a stepping stone for them. Orders now come
in through social media sites as well as corporate houses.
Starting this venture was not an easy task. All four were studying and there were
many challenges involved. They had to focus a lot on the business and they have
never compromised on either quality or price.”
Diva Bags-
Their advice to other young entrepreneurs is “Go out and start a business. You can do
it. Never give up. You will always find support and help. As a woman, you should
stand on your own feet.”
20 | P a g e
Values-
i. Team spirit
ii. Determination to achieve
iii. Dreaming big
Business Philosophy-
A team can make it happen, if strong determination is there
Behavioural Orientation-
i. Courageous
ii. Helpful
iii. Happy
iv. Hard working
Dalit Entrepreneurs in India-
Starting a company is a riveting roller coaster of emotions with tremendous highs and
at times, difficult lows, but one thing that always helps an entrepreneur to sail through
the ups and downs is to connect with some motivational quotes by great minds such
as-
Peter Drucker “The best way to predict the future is to create it.”
Vince Lombardi “Winners never quit and quitters never win.”
India has taken a huge leap with entrepreneurs tremendously on the rise from every
caste and creed. DCCI was set up in April 2005 and, according to Prasad, one of the
aims of the group is to remove misconceptions about Dalits enterprise. The
government has also extended its support to felicitate entrepreneurs of dalit business
segment. Milind Kamble, founder of Indian Chambers of Commerce industry and a
head of a 101 crore construction empire was recently awarded the Padman Bhushan
Kalpana Saroj, head of Kamani Tubes was also awarded.
Another objective of DICCI which is based in Pune is to tell Dalit youths to become
job givers and not job seekers.
1. Kalpana Saroj-
Kalpana Saroj is a female dalit, Indian entrepreneur, born in Roperkheda village in
Maharashtra. She is the Chief Executive Officer of Kamani Tubes in Mumbai.
Described as the original “slumdog millionaire”, she bought the distressed assets of
Kamani Tubes Company and successfully steered the company back to profits.
Kalpana Saroj was married at the age of 12 and lived in a slum in Mumbai with her
husband’s family. After suffering physical abuse at the hands of her husband’s family
21 | P a g e
members, she was rescued by her father, left her husband and returned to her village
to live with her parents. She attempted suicide after being ostracized by the villagers.
At the age of 16, she moved back to Mumbai to live with her uncle. She started
working in a garment factory to support her family. Using government loans for lower
caste people, she successfully started a tailoring business and then a furniture store.
She built up a successful real estate business, and came to be known for her contacts
and entrepreneurial skills. She was on the board of Kamani Tubes when it went into
liquidation in 2001, and after taking over the company, restructured it and brought it
back to profit.
According to her own estimates, she has personal assets worth $ 112 million. Kalpana
Saroj was awarded the Padma Shri for Trade and Industry in 2013.
Values-
i. Determination to succeed
ii. Aim to provide motivation to others
iii. Helping attitude for society and community
Business Philosophy-
There is no stopping a determined entrepreneur
Behavioural Orientation-
i. Daring
ii. Courageous
iii. Fighter
2. Harsh Bhasker – Kota Tutorials-
He does not have a rag to riches story. He Hails from Jatav caste and had an option to
join family leather shoe making business. But Rebellious by streak, he wanted to do
something on his own. He was good in studies and therefore he got admission in IIT
Roorke.
This young man completed engineering and joined HCL in Noida as a software
developer, job was too routine and mind-numbing, so, Year later, he got together
seven colleagues to start a software firm out of Katwaria Sarai near IIT Delhi campus
which closed due to technology meltdown. He Returned to Agra to start a franchisee
of Kota – based Career Point in engineering and medical coaching. Three years later,
launched his own coaching centre and named it Kota tutorials as people already knew
it as Kota Institute. Currently he Owns two structures, 11 air conditioned classrooms
with a capacity to teach 2000 students, two hostels to accommodate 250 students.
22 | P a g e
Building this new brand coaching centre was not easy, as students he admitted were
from under privileged backgrounds.
Now Kota tutorials is now in 12 cities, including Aligarh, Dehradhun, Bhatinda
through franchisees and the revenues are estimated around 10 crores.
Values-
i. Persistence
ii. Grit determination
iii. Firebrand
Business Philosophy-
A good business plan would always work
Behavioural Orientation-
i. Rebellious
ii. Brilliant
iii. Team spirit
3. Balu-
Balu Hails from lower middle class family and his Family was against him starting a
business but he was determined. In 1995, with a meagre capital of Rs 18,000 he could
not even purchase a wire-drawing machine, However, Two years later, he assembled
his first machine using parts of herald car from the grey market, stripped the car of its
gear box and assembled the machine.
He decided to set up his own unit but money and discrimination came into picture,
required finance, but bank rejected because he was a dalit. He received two lakhs
through a family friend which he repaid it in 2001. In 2004; SBI initiative for
entrepreneurs yielded Balu a loan of Rs 20 lakhs which he repaid in three years. He
diversified into manufacturing organic pesticides and agrochemicals-
Values-
i. Determined
ii. Go – Getter
iii. Dynamic
Business Philosophy-
Fight against discrimination & all odds, will yield positive results

23 | P a g e
Behavioural Orientation-
i. Good communication
ii. Helping nature
iii. Desire to contribute to community & society
iv. Patience
4. Pravin Meshram – Bharat Electricals-
He comes from a lower middle class family in Nagpur. From a very young age, he
wanted to do his own business rather than work under someone. He earned a diploma
in Mechanical Engineering from Nagpur University in 1998 and joined his father’s
small electrical repairing shop where he mastered electrical repairs and equipment
installation and formed networks. He had a Hand to mouth existence.
He even Booked advertisements for publications, dispatched plastic boxes for nearby
factories and after the last failure, went to work as an electrician for a salary of Rs
2000. In the year 2006, he happened to visit his friend’s transformer factory, where he
worked there for six months and understood the manufacturing process. Late in the
year 2007, he borrowed two lakh from his father and one lakh from his friend to set
up a small transformer manufacturing unit.
His First transformer was rejected by MSEB. After two months it got approved, first
transformer supplied was 25Kv.Within a year Bharat Electricals crossed one crore in
turnover. Today he has one acre plot which has the capacity to manufacture 3000
transformers of 25 – 1000 KV capacity, About 80 per cent transformers are supplied
to MSEB and the remaining to the SEB’s in Chhattisgarh and MP.
He has two intermediate goals-
i. Foreign travel for his parents
ii. Rs 100 crore turnover for Bharat Electricals
He Wants new recruits from backward classes and is willing to train them. He is in
talks with a Chinese company to partner him in this new upcoming project
Values-
i. Willingness to do something for his community
ii. Go – Getter spirit
iii. Determination
Business Philosophy-
Hard work pays sooner or later

24 | P a g e
Behavioural Orientation-
i. Helpful
ii. Empathising nature
iii. Desire to contribute to community & society
iv. Perseverance
5. Rajesh Saraiya-
Rajesh saraiya is considered as the India’s first dalit billionaire. He was born in a
middle class family in Dehradun. He is an Aeronautical engineer by profession. He
runs a multinational company by the name Steelmont Pvt. Ltd. from Ukraine.
In a conference held in the Dalit Indian Chamber of Commerce and Industries, Mr. JJ.
Irani-Director in Tata sons sated with pride on seeing his tremendous progress that
“dalits are second to none as far as the intelligence and entrepreneurship is concerned.
We only have to give them an opportunity”.
Values-
i. Sincerity
ii. Courage
iii. Determination
Business Philosophy-
“Dalits are second to none as far as the intelligence and entrepreneurship is
concerned. We only have to give them an opportunity”.
Behavioural Orientation-
i. Helpful
ii. Happy
iii. Hard working
iv. Friendly
v. Confident
Role Models in the Startup Domain-
A brief background of these persons is being given as under, their values and
business philosophies have been summarized after the brief background:
1. Deep Kalra-
Deep Kalra is the Founder & CEO of MakeMyTrip, India’s leading online travel
portal. An IIM-A alumnus, Deep launched MakeMyTrip in 2000 and has traversed the
extremes of the Indian online space. Deep has strongly accentuated on the fact that
entrepreneurs should not start-up focusing on exits.
25 | P a g e
2. Dorai Thodla-
Dorai Thodla is a founder of iMorph, Inc. iMorph builds tools and provides services
for gathering technology intelligence, market intelligence and industry intelligence.
He has been an active mentor and guides many startups in getting their act right.
3. Kishore Biyani-
Kishore Biyani is the CEO of Future Group, and the MD of Pantaloon Retail. Biyani’s
Future Group has over 17 million square feet of retail space in 90 cities and 60 rural
locations. He managed to raise $170 million by taking venture capital arm Future
Ventures public in March 2011. Kishore is also the co-author of the book “It
happened in India”. It is the story of Pantaloons, Big Bazaar, Central and the Great
Indian Consumer, co-authored with Dipayan Baishya. Surely a role model for many
across India!
4. Mahesh Murthy-
Mahesh Murthy is a founding partner at Seed-fund, and has over 26 years of
marketing and communications experience, of which 15 years are in online
marketing. After dropping out of college, Mahesh sold vacuum cleaners from door to
door, worked with Grey in India and Ogilvy in Hong Kong, where he won notoriety
and awards as a creative director on HP, The Economist, Pepsi and MTV – For whom
he wrote and directed a spot voted “Asia’s best commercial of the decade”.
5. Naveen Tewari-
Naveen Tewari is the Founder of InMobi, the world’s largest independent mobile
advertising network. This is no small feat and Naveen feels that a lot depends on the
entrepreneur’s mindset. One of the most successful entrepreneurs of the new age,
Naveen has inspired many to dream big and achieve things entrepreneurs usually
thought to be out of their reach.
6. Phanindra Sama-
Phanindra Sama is the Founder & CEO of redBus(dot)in, the leading online bus
ticketing portal. Phanindra Sama is be better known as “Phani” in the startups space
and has been able to build a vastly successful company. It is under his leadership that
redBus achieved the feat of selling 10 million bus tickets.
7. Sachin and Binny Bansal-
The Bansals are the poster boys of the Indian startup ecosystem, with their e-
commerce firm Flipkart pegged to be the Amazon of India. Although mired in a few
controversies off late, Flipkart remains the biggest e-Commerce venture in India.
26 | P a g e
YourStory visited the Flipkart’s Bangalore office during the firm’s early days and
caught up with this duo then. From then till today, their growth has been phenomenal
coupled with multiple rounds of funding which has kept them head and shoulders
above the rest. No surprise that the Bansal brothers are the role models for many.
8. Sanjeev Bikhchandan-
Sanjeev Bikhchandani, an IIM-A – Alumnus, is the Founder of Naukri(dot)com,
India’s leading online job portal. An early catcher of the Internet market in India,
Sanjeev sees high potential in the consumer internet and mobile. He is another widely
respected entrepreneur, who has built a company with sheer grit and determination.

Conflict in Family Business and Resolutions:

Conflict is a natural part of running a business. However, when colleagues and
employees are also family members, ordinary conflict can take on new dimensions. –
David Harland, Managing Director of FINH
Corporations and non-family business have formal barriers to conflict between
colleagues; Human Resources departments and the natural separation between work
and family makes it unlikely that a workplace conflict will have serious repercussions
on a firm’s future.
On the other hand, the interconnected nature of family businesses means that family
drama, workplace issues, and conflicts about the business can more easily become
serious problems without special handling. Many, if not most, family firms lack
formal processes and strategies to mediate disputes, making it difficult to prevent
inevitable quarrels from developing into ongoing issues.
Here are several tips to help manage conflict in a family business as follows-
 Leverage formal governance structures to mitigate conflict- One issue that we
have seen arise in many family businesses is that family members may lack a
forum for discussing issues in the business. Formal structures like family councils,
boards, and family forums can offer family members a safe, organized way to
bring up issues and negotiate conflict. Formal governance can also help mitigate
family and financial issues by separating ownership of the business from its
management functions.

27 | P a g e
 Give family member’s space (and permission) to air grievances - One problem
that we frequently see in businesses with a first-generation matriarch or patriarch
is that family members may lack a safe way to express their needs and concerns.
When people don’t feel listened to or appreciated, seemingly small problems can
mushroom into major business and family drama. To help prevent conflicts,
family leaders should actively encourage family members to air concerns
constructively and give them the space they need to disagree. Senior leaders
should come prepared to listen without judgment and be willing to fairly consider
what is being brought up.
 Don’t let business bleed into family time (too much)- It’s very challenging to
keep from bringing business home, but one way that conflicts turn into family
drama is by failing to keep them separate. Family business leaders must set the
example by separating business and family time as much as possible. One way to
make this separation possible is by having formal spaces and structured times to
discuss business issues. Explicitly making other times no-business zones can help
family members relax into their personal roles and get away from work.
 Communicate early and often about issues -Many large complications start as
small problems that could have been resolved with early intervention. Sometimes,
spotting issues early and addressing them through clear communication can be
enough to prevent a conflict from developing. Even when family members see
each other regularly in the business, formal family meetings can be a better place
to hash out complex issues. Whether it’s at a family retreat or simply at a separate
meeting, making a break from daily routine to tackle the big issues can help open
lines of communication. A formal setting can also help ensure that issues are not
ignored and that members of the family have the opportunity to make their
opinions heard.
 Bring in experts to mediate major conflicts -Some issues simply cannot be
resolved internally. When family members become entrenched and constructive
dialogue isn’t possible, an objective expert who is trained to help resolve conflict
can help cut through the emotions and focus on issues. A mediator can also help
guide a family through initial conversations all the way to a final resolution. We
have found that many family groups can achieve more in a few hours with an
outside expert than they have in years by themselves.

28 | P a g e
Final Thoughts-
Many conflicts boil down into age-old family disputes. It’s common to see businesses
that mirror family hierarchies. For example, parents might run the company together,
a favored eldest child might serve in an executive role while other children and
spouses fill in other management positions. However, these parent-child and family
dynamics can make the separation of family and business even more difficult. Leaders
must be able to treat children like employees and managers during business time to
help reduce the risk that family dynamics will damage the business culture.
Ultimately, managing family conflicts often comes down to creating better
communication skills as a family. While conflict can never be completely avoided,
treating it as a normal part of business and developing the skills to handle it can go a
long way toward building healthier business and family ties.

Multiple Choice Questions & Answers:

[1 Marks each]
1 Which of the following shows the process of creating something new?
a) Business model
b) Modeling
c) Creative flexibility
d) Innovation
2 Which one of the following gives suggestions for new product and also help to
market new products?
a) Existing products and services
b) Federal government
c) Distribution Channels
d) Consumers
3 Which of the following is used by entrepreneurs to acquire experience in an
international market before making a major commitment?
a) Merger
b) Minority Interest
c) Joint venture
d) Majority interest

29 | P a g e
4 GATT is established in 1947, under:
a) German leadership
b) U.S. leadership
c) French leadership
d) U.K. leadership
5 The entrepreneur was distinguished from capital provider in:
a) Middle ages
b) 17th century
c) 18th century
d) 19th and 20th century
6 A person who managed large project was termed as the entrepreneur in the
_________.
a) Earliest period
b) Middle ages
c) 17th century
d) 19th and 20th century
7 What is the process by which individuals pursue opportunities without regard
to resources they currently control?
a) Startup management
b) Entrepreneurship
c) Financial analysis
d) Feasibility planning
8 Having less than 50 percent of equity share in an international venture is
called:
a) Joint Venture
b) Majority interest
c) Minority interest
d) Exporting
9 Having more than 50% ownership position that provides the entrepreneur
with managerial control is called:
a) Joint venture
b) Majority interest
c) Horizontal merger
c) Diversified activity merger
30 | P a g e
10 – Which one of the following is the process of entrepreneurs developing new
products that over time make current products obsolete?
a) New business model
b) Anatomization
c) None of the given options
d) Creative destruction
11 Which of the following factors is the most important in forcing U.S companies
to focus on new product development and increased productivity?
a) Entrepreneurship
b) Hyper competition
c) Governmental laws
d) Organizational culture
12 Which of the following is alternatively called corporate venturing?
a) Entrepreneurship
b) Intrapreneurship
c) Act of stating a new venture
d) Offering new products by an existing company
13 Individuals influencing an entrepreneur’s career choice and style are known
as which of the following?
a) Moral-support network
b) Role model
c) Professional support network
d) Support system
14 The activity which occurs when the new venture is started is called:
a) Motivation
b) Business skills
c) Departure point
d) Goal orientation
15 The level at which an individual is viewed by society is called:
a) Financial status
b) Qualification
c) Social status
d) Achievement

31 | P a g e
16 Which one of the following is an important source of idea generation due to
their familiarity with the needs of market?
a) Existing products and services
b) Distribution channels
c) Federal government
d) Consumers
17 Members of distribution channels are excellent sources for new ideas because:
a) They earn a handsome profit from new business
b) They are familiar with the needs of the market
c) They do not bother if entrepreneur bears a loss
d) They have well-developed sales force
18 Which one of the following is the most important characteristic of a successful
business website?
a) Innovation
b) Speed
c) Graphics
d) Products
19 Which one of the following is the next stage to the Concept Stage of Product
Planning and Development Process?
a) Idea Stage
b) Product Planning Stage
c) Product Development Stage
d) Test Marketing Stage
20 SBA stands for:
a) Small business accountants
b) Small business administration
c) Small business adequacy
d) Small business advisors
21 Why should an entrepreneur do a feasibility study for starting a new venture?
a) To identify possible sources of funds
b) To see if there are possible barriers to success
c) To estimate the expected sales
d) To explore potential customers Question No:

32 | P a g e
22 Information regarding all of the following is related to operations, EXCEPT:
a) Location
b) Promotion
c) Raw materials
d) Labor skills
23 A performance and credit rating scheme has been launched by the MSME
Ministry to assess creditworthiness and capabilities of industries in the sector.
What is it called?
(a) Performance and Credit Rating Scheme
(b) Zero Defect Zero Effect Certification
(c) Performance and Economy Rating Scheme
(d) None of the above
24 A Micro Enterprise is an enterprise where investment in plant and machinery
does not exceed (According to MSMED Act, 2006):
(a) Rs. 15 Lakh
(b) Rs. 20 Lakh
(c) Rs. 25 Lakh
(d) Rs. 30 Lakh
25 EDP (Entrepreneurship Development Programmes) is required to help:
(a) Existing entrepreneurs
(b) First generation entrepreneurs
(c) Future generations entrepreneurs
(d) None of the above
26 A corporate manager who starts a new initiative for their company which
entails setting up a new distinct business unit and board of directors can be
regarded as?
(a) Ecopreneur
(b) Technopreneur
(c) Intrapreneur
(d) Social Entrepreneur

33 | P a g e
27 A women entrepreneur is supposed to have a minimum financial interest in
share capital of entrepreneur’s enterprise:
(a) 35 per cent
(b) 51 per cent
(c) 25 per cent
(d) None of the above
28 Family business always interested to handover the change of his business to:
(a) Indian Administration Officers
(b) Professional Managers
(c) Next generation
(d) None of the above
29 A corporate manager who starts a new initiative for their company which
entails setting up a new distinct business unit and board of directors can be
regarded as?
(a) Ecopreneur
(b) Technopreneur
(c) Intrapreneur
(d) Social Entrepreneur
30 Venture capital is concerned with:
(a) New project having potential for higher profit
(b) New project of high technology
(c) New project having high risk
(d) All the above.
31. "Angels" usually provide what type of financing?
a) Debt
b) Equity
c) Stock Sales
d) None of the given options
32. ____________ is a radical redesign of the organization's business
processes.
a) Reengineering
b) downsizing
c) Bankruptcy
d) Expanding
34 | P a g e
33. A _____________ strategy would be most appropriate for producing high-
volume, low-variety products.
a) Processed-focused
b) Product-focused
c) Repetitive Focused
d) Virtual-focused
34. A patent is granted for a specified amount of time because of the
assumption
a) That during this time firm will cover its development costs
b) That firm will earn a sufficient profit during this period
c) To limit the monopoly of the firm
d) That it will stimulate idea and development of a better product
35. A short-term, internal source of funds can be obtained by reducing all of
following EXCEPT
a) short-term assets
b) cash
c) Fixed Assets
d) Inventory
36. A system of marketing by which an organization communicates directly with
customers to generate a response or transaction is the definition of:
a) manufacturer's representatives
b) Direct marketing
c) Agent wholesalers
d) Basic wholesaling
37. A typical inventor is usually _________
a) Highly creative & in love with the invention
b) Does not encourage change
c) Willing to modify the invention in order to augment commercial
benefit
d) None of the given options

35 | P a g e
38. All of the following are important elements of the financial data and
projections section of a business plan EXCEPT:
a) SWOT analysis
b) Projected income statements
c) Break-even analysis
d) Cost controls
39. As a business grows, time management continues to be an issue, but the
entrepreneur's major concern usually becomes:
a) Setting goals
b) Finding, retaining, and motivating qualified employees
c) Measuring performance.
d) all of the above.
40. As a company grows, the entrepreneur should focus on his/her:
a) Technical ability to complete a task
b) Written communication.
c) Management and motivation skills.
d) Public speaking
41. Banks are more likely to provide financing for a new product:
a) Once the product is developed
b) In the early stages of product development.
c) While the entrepreneur is researching the demand for the product
d) Banks are likely to provide financing at any stage of product
development
42. Following are the types of foreign direct investment EXCEPT
a) Joint Venture
b) Management Contracts
c) Minority interest
d) Merger
43. If an entrepreneur's business is based on current technology, an
uncontrollable risk might be:
a) Changes in consumer tastes.
b) New technology developments
c) The weather
d) Fashion trends
36 | P a g e
44. If teenagers who buy pizza are grouped into those who buy them for
convenience and those who buy them for taste, this is an example of:
a) Geographic segmentation.
b) Psychographic segmentation.
c) Demographic segmentation.
d) Benefit segmentation
45. If the entrepreneur pays for the first six months of insurance before the
business opens, this is listed under start-up costs as:
a) Deposits
b) Inventory
c) Prepaid expenses
d) Utilities
46. Moral support network includes following EXCEPT
a) Spouses
b) Friends
c) Business Associates
d) Relatives
47. New low-tech products and services:
a) Rarely make any money
b) Were only successful before the Internet became popular
c) Can be highly successful
d) Do not need legal protection consideration
48. One of the first steps needed to determine the break-even point is to:
a) Do a ten-year sales projection.
b) Separate the company's expenses into the fixed and variable
categories
c) Take a full-item inventory.
d) Determine current assets.
49. The commitment of administrative domain to the resources is for
a) Periodic intervals
b) Total amount needed
c) For certain tasks
d) For long time

37 | P a g e
 50. The conclusion of the business plan will identify the:
a) Feasibility of the business
b) Purpose of the business
c) Form of organization of the business
d) Business suppliers
[2 Marks each]
1. Which of these is true about entrepreneurs?
A. Entrepreneurs are born, not made.
B. Anyone can start a business.
C. Entrepreneurs are gamblers.
D. Age is no barrier in entrepreneurships.
2. All of the following are true about entrepreneurs except:
A. Starting a business is risky and often ends in failure.
B. Money is the most important start up ingredient.
C. Entrepreneurs are their own bosses and completely independent.
D. All of these are myths about entrepreneurs.
3. Which of the following statements is not true?
A. Many now-great companies had early failures.
B. Entrepreneurs spot, create, and exploit opportunities.
C. One opportunity for entrepreneurs is outer space.
D. All of the above are true.
4. Which of these characteristics has not been associated with entrepreneur's
success?
A. Commitment and determination
B. Creativity, self-reliance and ability to adapt
C. Leadership
D. Motivation to fail
5. The business plan:
A. helps determine the viability of your enterprise.
B. helps you obtain financing.
C. guides you as you plan and organize.
D. All of these.

38 | P a g e
6. _______ are voluntary group of people drawn from various production teams
who make suggestions about quality.
A. Self-designing teams
B. Semiautonomous workgroups
C. Quality circles
D. Self-managing teams
7. __________ is a mental image of a possible and desirable future state of the
organization.
A. A vision
B. A trait
C. Power
D. Leadership
8. Beth, a production line manager at Priceless Pets, Inc., recently implemented a
tardiness policy that administers disciplinary actions to offending employees.
Beth is said to be exercising ______ power.
A. reward
B. coercive
C. expert
D. referent
9. All of the following are personality characteristics that distinguish effective
leaders from other people except:
A. Self confidence.
B. Integrity.
C. Drive.
D. Honesty.
10. A leadership philosophy characterized by an absence of managerial decision
making is called _______ style.
A. autocratic
B. democratic
C. participation
D. laissez-faire

39 | P a g e
11 The most common form of organization for a small business is:
a) Partnerships
b) Corporations
c) Sole proprietorships
d) Limited companies
12. Which of the following cannot be covered under the copyright
protection?
a) Computer Software
b) Computer Hardware
c) Poems & Songs
d) Models and sculpture
13. Which of the following has a contradictory relationship with an individual
for being an entrepreneur?
a) His birth order
b) Parents’ social status
c) Parents’ occupation
d) Relationship with parents
14. Which of the following is false?
a) A business plan is often prepared by an existing company to ensure that growth is
properly managed.
b) A business plan is usually not required when obtaining financing for a start-
up.
c) If a business plan is completed for a start-up, it may help the entrepreneur avoid
costly mistakes.
d) All of the above.
15. Which of the following is NOT a requirement of Disclosure Document?
a) Description of the invention
b) Claims for invention’s usefulness
c) Photos of invention
d) Cover Letter
16. Which of the following is the backbone of financial plan?
a) Budgeting
b) Capital
c) Nature of business
d) All of the given options

40 | P a g e
17. Which of the following possible financing options has become a popular
choice for entrepreneurs?
a) Angel Investors
b) Credit Cards
c) Venture Capitalists
d) Public Offering
18. Which of the following types of ratios measure how efficiently the
organization is using its assets?
a) Liquidity Ratios
b) Leverage Ratios
c) Operating Ratios
d) Profitability Ratios
19. Which one of the following gives suggestions for new product but also helps
to market new
a) Existing Products & Services
b) Distribution channels
c) Government
d) Consumers
20. Which one of the following is required to develop a good team for creating
something new?
a) Relationship with team members
b) Open discussion
c) Non flexible behavior
d) Discouragement of team member’s ideas
21. Which one of the following is NOT an important activity of Business Plan in a
new venture?
a) Background of the Entrepreneur
b) Functional Plan
c) Industry Analysis
d) Company Name
22. “High potential venture”:
a) Has the same growth potential as a life style firm
b) Starts out like a life style firm
c) Draws the interest of private investors only
d) None of the above

41 | P a g e
23. A business center that offers working space and specialized support for new
ventures is called:
a) Isolator
b) Injector
c) Incubator
d) Integrator
24. A network entrepreneur is an individual who identifies his or her business
idea
a) On their own
b) Through the assistance of a paid consultant
c) Through social contacts
d) With one or more partners
25. Banks are usually reluctant to give loan to the
a) Private Limited Companies
b) Partnership Firm
c) Public Limited Company
d) Sole Proprietor
26. Competitive Model coined by?
a) Michael E. Porter
b) Peter F Drucker
c) Philip Kotler
d) Koontz
27. If an entrepreneur has an internal locus of control, this means that
he/she:
a) Has a high need for achievement
b) Feels comfortable in an unstructured situation
c) Believes that success or failure depends on his/her own actions
d) Believes fate is a powerful force
28. If someone starts a new business that is a service station, this is an example of
a (n):
a) New concept/new business.
b) Existing concept/new business
c) Existing concept/existing business
d) New concept/existing business

42 | P a g e
29. Kumar Manglam Birla is what type of Entrepreneur?
a) Founder
b) Pure Entrepreneur
c) Technical Entrepreneur
d) Second Generation Entrepreneur
30. Newspapers, business periodicals, trade journals, and government
publications are:
a) Sources of information on economic opportunities.
b) Sources of news but not economic data
c) Poor sources for research because the information is too brief.
d) All of the above
31. The _______ plan should contain control points to ascertain progress
a) Business
b) Marketing
c) Operational
d) Financial
32. The entrepreneur must possess the abilities
a) Creative
b) Conceptualization
c) Understanding Environment
d) All of the above
33. The increase in home businesses has occurred for several reasons. Which of
the following is one of the reasons?
a) The increase in utility prices
b) The increase in tax rates
c) The increasing use of the Internet
d) Fewer people seeking financial security
34. The practice of using outside firms to perform tasks that could be performed
internally is called:
a) Flexibility
b) Fragmentation
c) Greening
d) Outsourcing

43 | P a g e
35. The process of gathering information about trends is called:
a) Need for achievement
b) Tenacity
c) Neuroticism
d) Scanning the environment
36. The relationship between firms and new markets is:
a) New firms must establish new markets
b) New firms usually establish new markets
c) New firms seldom establish new markets
d) New firms never establish new markets
37. User innovation is:
a) Less likely than manufacturer innovation
b) More difficult to manage than other types of innovation
c) When the developer expects to benefit by using it
d) When the developer expects to benefit by selling it
38. What are the four types of Innovation?
a) Extension, Invention, Synthesis, Duplication
b) Invention, Duplication, Copying, Extension
c) Duplication, Invention, Creativity, Extension
d) None of the above
39. Which of the following inputs is NOT involved in entrepreneurship?
a) Opportunity
b) Proactive individual(s)
c) External locus of control
d) Risk
40. Which of the following is a method of selling goods to another country
through a person in the entrepreneur’s home country?
a) Trading
b) Direct Export
c) Indirect Export
d) Domestic Sales

44 | P a g e
41. Which of the following is idea generation method that focuses on
parameters?
a) Brainstorming
b) Reverse brainstorming
c) Creative problem solving
d) Synoptic
42. Which of the following is the career solution for many underemployed
managers?
a) Fortune 500 companies
b) Entrepreneurship
c) Downsizing
d) To remain unemployed
43. Which one is not the process of creativity?
a) Incubation
b) Validation
c) Idea Generation
d) Establish Vision
44. Which one of the following is alternatively called corporate venturing?
a) Entrepreneurship
b) Intrapreneurship
c) Act of stating a new venture
d) Offering new products by an existing company
45. Which one of the following is required to develop a good team for creating
something new?
a) Relationship with team members
b) Open discussion
c) Non flexible behavior
d) Discouragement of team member’s ideas
46. Which one of the following is the first step in the entrepreneurial
process?
a) Developing successful business ideas
b) Deciding to become an entrepreneur
c) Growing the entrepreneurial firm
d) Moving from an idea to an entrepreneurial firm
45 | P a g e
47. Which one of the following is the next stage to the Concept Stage of Product
Planning and Development Process?
a) Idea Stage
b) Product Planning Stage
c) Product Development Stage
d) Test Marketing Stage
48. Which one of the following may need the business plan?
a) Employees
b) Investors
c) Advisors
d) All of the above
49. Which two work environments should be good for spawning the new
enterprises?
a) Finance and marketing
b) Finance and R&D
c) Marketing and R&D
d) Marketing and IT
50. Which type of franchisee has a great deal of autonomy and considerable
freedom?
a) Business-format franchisee
b) Product franchisee
c) Manufacturing franchisee
d) Manufacturer's representative

46 | P a g e