The document discusses entrepreneurship development and the role of entrepreneurs. It covers topics like the meaning and characteristics of entrepreneurs, types of entrepreneurs classified by business type, motivation and other factors. It also discusses the functions and qualities of successful entrepreneurs. The document emphasizes that entrepreneurs play a crucial role in economic development by promoting capital formation, providing employment, encouraging innovation and balancing regional growth.

1. Dr. G. Arivlagan
Subject: Entrepreneurship Development
Class : III BBA

2. Entrepreneurship Development
• Syllabus
Unit 1
Entrepreneur- meaning, characteristics Functions, and Types. Entrepreneur Vs Manager,
Entrepreneur Vs Intrapreneur. Entrepreneurship – meaning- Positive Aspects- obstacles-
Factors stimulating Entrepreneurship- Role of entrepreneurship in economic development.

3. Contu..
• Unit II
Entrepreneurship development Programmes- meanings, objectives, courses contents and
curriculum- Phases, institutions for EDP: NIESBUD, NAYE & TCOs- problems in EDP,
Women Entrepreneur- Types- Their problems and Remedies

4. Contu…
Unit III
SSIs-meaning- Importance and problems of starting an SSI- steps. Forms of ownership:
sole proprietorship-, partnership. Joint stock company and co-operatives- features, merits
and demerits.
• Unit IV
Project Identification- Meaning and steps, Project classification- Project lifecycle.
Project report- contents, Project appraisal-meaning-feasibility analysis: market, technical,
financial, economic, managerial and social.

5. Contu…
• Unit v
Institutional support: SIDO, SISI, NSIC, SIDCO, DIC-Their functions- SIDBI’s
schemes. Incentives: subsidy, Tax concession, Marketing and Export assistance. Sickness-
Definition, symptoms, causes. Measures to prevent sickness in small units.

6. Reference Book
1. Small Scale Industries and Economic Development, C.S.V. Moorthy, HPH.
2. Entrepreneurial Development, Gupta, C.B. and Srinivasan, N.P. Sultan and Son
3. Entrepreneurial Development, S.S. Khanka, S.Chand & Co, New Delhi

7. ENTREPRENEUR
• The word entrepreneur is derived from the French verb “enterprendre”,
which means “to undertake”.
• Entrepreneur is the person who brings together the factors of production
and combines them into a product.
• He organizes and manages a business unit assuming the risk for profit.

8. Characteristics of Entrepreneur
• Economic and dynamic activity
• Related to innovation
• Profit potential
• Risk Bearing
• Skillful Management
• Accepting challenges
• Goal – oriented activity
• Value creation
• Dynamic Process
• Uniqueness
• Interest and vision
• Risk and rewards

9. Qualities of Entrepreneur
1. Enterprising
2. Risk Bearer
3. Creative Thinker
4. Ambitious
5. High Need Achievement
6. Change Agent
7. Good Organiser and Manager
8. Decision Maker
9. Strong Commitment
10.Firm Determination

10. Functions of Entrepreneur
An entrepreneur performs all the necessary functions which are
essential from the point of view of operation and expansion of the
enterprise. The main functions of entrepreneur are as follows :

11. Functions Contu..
 Planning
 Risk and Uncertainty Bearing
 Organization Building
 Managing
 Decision-Making
 Innovation
 Leading
 Managing Growth

12. ENTREPRENEUR VS MANAGER
• Owner of the business
• Profit
• Full risk bearing
• All functions
• Innovator
ENTREPRENEUR MANAGER
• Servant of the business
• Salary
• No risk bearing
• Managerial functions only
• Executor

13. FACTORS AFFECTING ENTREPRENEURIAL GROWTH
1. Psychological Factors
a) Need for Achievement
b) Personal Motives
c) Recognition
d) Need of Authority
2. Cultural Factors
a) Culture
b) Religious Belief
c) Minority Groups
d) Spirit of Capitalism

14. Contu..
3. Social Factors
a) Legitimacy of Entrepreneurship
b) Social Marginality
c) Family, Role Models of Individuals
d) Caste System
e) Occupation
f) Education and Technical
Qualifications
g) Social Status
h) Social Responsibility

15. Contu..
4. Economic Factors
a) Infrastructural Facilities
b) Financial Resources
c) Availability of Material
d) Labour Conditions
e) Market
f) Support System
g) Government Policy
5. Personality Factors
a) Personality
b) Independence
c) Compulsion

16. ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
• Economic development essentially means a process of upward change whereby the real per capita
income of a country increases for a long period of time.
• The economic history of the presently developed countries, such as USA and Japan tends to
support the facts that the economy is an effect for which the entrepreneurship is the cause.
• The crucial role played by the entrepreneurs in the western countries has made the people of
underdeveloped countries conscious of the significance of entrepreneurship in economic
development.

17. Contu….
• After the Independence, India has realized that, for achieving the goal of economic development, it is
necessary to increase the entrepreneurship both qualitatively and quantitatively in the country. The
important roles that an entrepreneurship plays in the economic development are as follows:
1. Entrepreneurship promotes capital formation by mobilizing the idle saving of the public.
2. It provides immediate large-scale employment. Thus it helps to reduce unemployment in the
country.
3. It provides balanced regional development.

18. Contu..
4. It helps to reduce the concentration of economic power.
5. It stimulates the equitable redistribution of wealth, income and even political power in the interest
of the country.
6. It encourages effective resources mobilization of capital and skill which might otherwise have
remained unutilized and idle.
7. It also induces backward and forward linkages which stimulate the process of economic
development in the country.
8. It promotes country’s export trade; it is an important ingredient for economic development

19. Functions of Entrepreneur
An entrepreneur is an agent who buys various factors of production with a view to
combining them into a finished product which can be sold in the market. While doing so,
he has to perform the following basic functions:
1. RiskAssumptionFunction
2. BusinessDecisionMakingFunction
3. ManagerialFunction
4. Functionof Innovation

20. Contu..
4. Functions of Innovation
a) Incremental Innovation
b) Evolutionary Innovation
c) Breakthrough Innovation
d) Experimental Innovation

21. Contu..
d) Frugal Innovation
i. Idea Generation
ii. Determination of Business Objectives
iii. Market Research
iv. Determination of Form of Organisation
v. Promotional Formalities

22. Contu…
vi. Raising of Funds
vii. Procurement of Machinery
viii.Procurement of Raw Materials
ix. Recruitment of Staff
x. Implementation of the Project

23. Intrapreneur/Corporate Entrepreneur
 In recent times, a new brand of corporate entrepreneurs called “intrapreneurs” has come into
picture.
 Since they emerge within the frontiers of an existing enterprise, they are called intrapreneurs. “In”
refers to “within.” In big organisations, the top executives with entrepreneurial talents are encouraged
to generate new ideas and then convert them into products through research and development
carried out within the organisation itself.
 If the talent inside an organisation is recognised the entrepreneur could avoid stagnation and
decline in his enterprise.

24. Characteristics of Intrapreneur
1. Understand the Environment
2. Visionary
3. Flexible and Create Management Options
4. Encourage Teamwork
5. Encourage Open Discussion
6. Persistence

25. Entrepreneur Intrapreneur
1. Independent: An entrepreneur is an independent person
in his business operations.
1. Dependent: On the other hand, an intrapreneur is
completely depending on the entrepreneur for everything in
the organisation. He cannot take any decision by himself.
2. Need not be highly educated: It is not necessary that an
entrepreneur should have a high education. He can learn
everything by experience provided he has the basic qualities
of a successful entrepreneur.
2. Highly educated: An intrapreneur enters into an existing
organisation with a high education and qualification. He is
indeed a business specialist in the chosen field.
3. Fund raising: An entrepreneur himself raises funds
necessary for starting and establishing his enterprise.
3. No fund raising: An intrapreneur is completely free from
the botheration of raising funds.

26. Entrepreneur Intrapreneur
4. Risk bearing: An entrepreneur has to bear all the risks
involved in the business by himself.
5. Routine work: An entrepreneur is more concerned with
doing routine work and sometimes he may not know the
important details of his own business.
6. Operation from outside: An entrepreneur always
operates from outside. The owner is different and the
enterprise he owns is different.
7. Strong authoritarian: Generally, an entrepreneur
operates with a strong authoritarian backup.
4. No risk bearing: An intrapreneur need not bear
any risk involved in the business.
5. Specialist: An intrapreneur acts as a specialist in
his chosen field and serves as an outside
professional.
6. Operation from inside: But, an intrapreneur
operates from within the organisation itself. He is
a part and parcel of the organization
7. Less authoritarian: On the contrary, intrapreneur
is less authoritarian. He is more “adaptable” in the
organisation.

27. Copreneurs
• Copreneurs are married couple who share ownership, commitment and responsibility for a
business.
• The concept of married couples working together in a business is as old as the family
itself.
• In recent times, there is a steady rise in the number of copreneurial ventures all over the
world.

28. Types of Entrepreneurs
• There are various ways by which entrepreneurs have been classified. Different authorities have classified
entrepreneurs differently at different times. The most popular classification has been given by Clarence
Danhof on the basis of his study of the American agriculture. According to him, entrepreneurs may be
classified as follows:
1. Innovative Entrepreneur
2. Adoptiveor ImitativeEntrepreneur
3. FabianEntrepreneur
4. Drone Entrepreneur

29. Cole’s Classification
• Arthur H. Cole classifies entrepreneurs as follows:
1. EmpiricalEntrepreneur,
2. RationalEntrepreneurand
3. CognitiveEntrepreneur

30. On the Basis of Type of Business
1. Trading Entrepreneur:
2. Industrial Entrepreneur
3. Business Entrepreneur
4. Agricultural Entrepreneur

31. On the Basis of Use of Technology
• Technical Entrepreneurs:
• Non-Technical Entrepreneurs:
• Professional Entrepreneurs

32. On the basis of Motivation
• Pure Entrepreneur
• Induced Entrepreneur
• Spontaneous Entrepreneur

33. On the basis of Growth Entrepreneur
• Growth Entrepreneur
• Super Growth Entrepreneur

34. On the Basis of Scale of Entreprise
• Small-Scale Entrepreneur
• Large-Scale Entrepreneur

35. On the basis of Stages of Development
• Classical Entrepreneur
• Modern Entrepreneur

36. Other Classification
• The New Entrepreneurs
• Academic Entrepreneurs
• Educational Entrepreneurs
• Paper Entrepreneurs
• Social Entrepreneur

37. Motivating Factors to become Entrepreneurs
1. Independence– Freedomto do one’s ownthing
2. Market opportunity
3. Family background
4. New idea
5. Challenge
6. Desire to become an entrepreneur

38. Entrepreneurial Competencies
1. Knowledge
2. Skill
3. Motives and Traits

39. Kinds of Competencies
1. Hard-skill competencies
2. Soft-skill competencies

40. Soft-skills
1. Initiative
2. Persistence
3. Information Seeking
4. Concern for High Quality of Work:
5. Commitment:
6. Efficiency Orientation
7. Systematic Planning
8. Problem Solving
9. Seek Confidence
10. Assertiveness
11. Persuasion
12. Use of Influence Strategies:
13. The Idea
14. Abilities
15. Research

41. What Makes a Successful Entrepreneur?
• Know Your Business in Depth
• Develop a Sound Business Plan
• Manage FinancialResources
• Understanding of Basic Financial Statements
• Learn to Manage People
• Passion for Business

42. Entrepreneur and Economic Development
• Coordinating Role
• Agent's Role
• Role of Innovation
• Risk Assumption Role
• Imitating Role
• Capital Formation Role
• Balancing Role
• Status Transformation Role
• Employment Generation Role
• Export Promotion Role