23-02-2024

UNITED COLLEGE OF ENGINEERING AND Entrepreneurship

MANAGEMENT
• Enterprise – Undertaking
PROJECT MANAGEMENT & ENTREPRENEURSHIP
• Entrepreneur – An individual who bears the risk of
Semester: VIII operating business in the face of uncertainty about the
KHU-802 future conditions.
• Common Meaning – one who starts his own, new and
Unit-1: Entrepreneurship
small business

• Entrepreneurship – It is a philosophy or process through

which an entrepreneur seeks innovation and
employment.

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UNIT-1
Entrepreneurship
Entrepreneurship – Contd...
• Entrepreneurship: need and scope
• Entrepreneurial competencies & traits
• Factors affecting entrepreneurial development, Entrepreneur Enterprise Entrepreneurship
• Entrepreneurial motivation (Mc Clellend’s Achievement • Person • Object • Process or
motivation theory) Philosophy
• Conceptual model of entrepreneurship
• Entrepreneur vs. intrapreneur
• Classification of entrepreneurs
• Entrepreneurial Development Programmes

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Entrepreneur
• The word “entrepreneur” originates from a thirteenth-
century French verb, entreprendre, meaning “to do
something” or “to undertake.”
• Entrepreneurs are people who create new business
activity in the economy and bear considerable business
risk in the process.

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Entrepreneurship Definition of Entrepreneurship

• Entrepreneurship is defined as “The activity of setting • Entrepreneurship is the process of creating something
up a business or businesses”. different with value by devoting the necessary time and
• Entrepreneurship defined as "a process used to develop effort, assuming the accompanying financial, psychic,
new businesses, products, services or processes inside social risks and receiving the resulting rewards of
of an existing organization to create value and monetary and personal satisfaction and independence.
generate new revenue growth through entrepreneurial
thought and action." • New Definition involves four aspects –
(a) The creation process
(b) Devotion of time and efforts
(c) Assumption of risks
(d) Rewards of independence, satisfaction, money.
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Entrepreneurship – Contd... Need for Entrepreneurship

1) Creation of Employment
2) Innovation
3) Impact on Society and Community Development
4) Increase Standard of Living
5) Supports research and development

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Definition of Entrepreneur Need for Entrepreneurship – Contd…

1) Creation of Employment
• According to Contillon, “An entrepreneurs is an agent
• Entrepreneurship generates employment. It provides
who buys means of production at a certain prices in
an entry-level job, required for gaining experience and
order to combine them into a product that he is going
training for unskilled workers.
to sell at prices that are uncertain at the movement at
which he commits himself to his cost”.
• In this definition Cotillion emphasize the function of risk 2) Innovation
taking and uncertainty bearing. • It is the hub of innovation that provides new product
ventures, market, technology and quality of goods, etc.,
and increase the standard of living of people.

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Need for Entrepreneurship – Contd… Scope of Entrepreneurship

3) Impact on Society and Community Development • The scope of entrepreneurship is tremendous in a
• A society becomes greater if the employment base is developing country like India.
large and diversified. It brings about changes in society • The unemployment in the country is rising day by day.
and promotes facilities like higher expenditure on • The problem of under-employment is also added to that.
education, better sanitation, fewer slums, a higher level
of homeownership.
• Therefore, entrepreneurship assists the organization
towards a more stable and high quality of community
life.

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Need for Entrepreneurship – Contd… Scope of Entrepreneurship – Contd..

4) Increase Standard of Living • As per the report of Labour Bureau, the employment
• Entrepreneurship helps to improve the standard of living rate is 5% in 2015-2016, highest in last five years.
of a person by increasing the income. • The percentage is higher in the case of women at 8.7%
• The standard of living means, increase in the than men at 4.3%.
consumption of various goods and services by a • As per the 5th all -India annual employment-
household for a particular period. unemployment survey under Usual Principal Status
(UPS), the estimated unemployment rate was 5%.
• The solace is to promote the entrepreneurial activities in
the country.

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Need for Entrepreneurship – Contd… Scope of Entrepreneurship – Contd..

5) Supports research and development
• There are of course strong reasons behind choosing this
• New products and services need to be researched and tested
career path by the young generation.
before launching in the market.
People are ambitious and wish to control the future.
• Therefore, an entrepreneur also dispenses finance for
research and development with research institutions and There is the scope of more profits.
universities. The country is suffering from unemployment problem
• This promotes research, general construction, and and opportunity for alternative career options are
development in the economy. lacking.
Country is committed to promoting entrepreneurship at
a larger level.

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Scope of Entrepreneurship – Contd.. Traits of Entrepreneur – Contd…

• To the direction of generating employment opportunity 1) Ability to take a risk
for 10crore people, the Planning Commission have also
• Starting any new venture involves a considerable
strongly recommended the self-employment to
amount of failure risk.
channelize the unemployed youth in its report.
• Therefore, an entrepreneur needs to be courageous and
• The Govt. of India, State Govt. and various country and
able to evaluate and take risks, which is an essential part
state level organizations are also offering support to
of being an entrepreneur.
nurture entrepreneurship through different schemes and
programs.

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Scope of Entrepreneurship – Contd.. Traits of Entrepreneur – Contd…

• Here, to mention Maharashtra Economic Development 2) Creativity and Innovation
Council (MEDC), that has focussed on the development • Creativity and innovation are the special breeds of
of entrepreneurship by research and training in this field. planned change that organization actively seek to
It has also resulted into another dimension. promote in the system.
• The entrepreneurship has taken place in the curriculum • Creativity is the process of developing a noble idea new
of the management colleges. The apex institutions have way of approaching and old idea is the spark of
started organizing workshops and seminars on innovation.
entrepreneurship. • The transformation of creative ideas into product or
• Thus, the overall movement of entrepreneurship services that fulfills customer needs.
development has started in the country and is expected • Creativity is the process of bringing something new into
to gain huge momentum in the near future. being, creativity requires passion and commitment.
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Traits of Entrepreneur Traits of Entrepreneur – Contd…

2) Creativity and Innovation – Contd…
• Not all entrepreneurs are successful; there are definite
characteristics that make entrepreneurship successful. • It should be highly innovative to generate new ideas,
start a company and earn profits out of it.
• A few of them are mentioned below:
• Change can be the launching of a new product that is
1) Risk-Taking Ability
new to the market or a process that does the same
2) Creativity and Innovation thing but in a more efficient and economical way.
3) Visionary and Leadership quality
4) Open-Minded
5) Flexible
6) Know your Product
7) Profit Oriented
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Traits of Entrepreneur – Contd… Traits of Entrepreneur – Contd…

3) Visionary and Leadership quality 6) Know your Product
• To be successful, the • A company owner should know the product offerings and
entrepreneur should have a clear also be aware of the latest trend in the market.
vision of his new venture. • It is essential to know if the available product or service
meets the demands of the current market, or whether it is
• However, to turn the idea into
time to tweak it a little.
reality, a lot of resources and
• Being able to be accountable and then alter as needed is a
employees are required. Here,
vital part of entrepreneurship.
leadership quality is paramount
because leaders impart and guide
their employees towards the
right path of success.

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Traits of Entrepreneur – Contd… Traits of Entrepreneur – Contd…

4) Open-Minded 7) Profit-oriented
• In a business, every circumstance can be an opportunity • A key goal of a majority of enterprises is to generate
and used for the benefit of a company. profit.
• For example, Paytm recognized the gravity of • However, in order to drive profits and enhance business
demonetization and acknowledged the need for online growth, you need to pay attention to changing industry
transactions would be more, so it utilized the situation and market trends.
and expanded massively during this time.
• Being accountable and meeting the needs and
expectations of your customers and clients is a vital part
of entrepreneurship.

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Traits of Entrepreneur – Contd… Entrepreneurship Competencies

5) Flexible
• Entrepreneurship competencies combine creativity, a
• An entrepreneur should be flexible and open to change sense of initiative, problem-solving, the ability to
according to the situation. marshal resources and financial and technological
• To be on the top, a businessperson should be equipped knowledge.
to embrace change in a product and service, as and • These competencies enable entrepreneurs and
when needed. entrepreneurial employees to provoke and adapt to
change.

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Entrepreneurship Competencies – Contd… Factors affecting Entrepreneurship – Contd…

• They identified Ten entrepreneurial competencies are • Economic Factors
identified: • Economic factors can play an interesting and formative
• Opportunity seeking, persistence, commitment to work role in the development of future entrepreneurs.
contract, risk-taking, demand for efficiency and quality, • For those who are raised in a more desperate situation,
goal seeking, information seeking, systematic planning with less access to capital and fewer opportunities to
and monitoring, persuasion and networking, self- achieve financial success, their desperation could
confidence. actually urge them to pursue entrepreneurship to seek
out a more comfortable life and create their own
opportunities.

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Factors affecting Entrepreneurship Factors affecting Entrepreneurship – Contd…

• Entrepreneurship is a complex phenomenon influenced • Economic Factors – Contd…
by the interplay of a wide variety of factors. The • Economic factors includes:
entrepreneurial activity at any time is dependent upon a 1) Capital
complex and varying combination of economic, social,
political, psychological and other factors. 2) Labour
• These factors may have been both positive and negative 3) Raw Materials
effluences on the emergence of entrepreneurship. 4) Market
• Positive influences constitute facilitative and conductive 5) Infrastructure
conclusion for the emergence of entrepreneurship
whereas negative influences create hinder situation to
the emergence of entrepreneurship.
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Factors affecting Entrepreneurship – Contd… Factors affecting Entrepreneurship – Contd…

• Following factors contribute to the success of • Social Factors
entrepreneurship: • Social factors can have a significant impact on a person’s
– Economic Factors likelihood to pursue entrepreneurship or to do so
successfully, but they aren’t guaranteed to steer a
– Social Factors
person in one direction or another.
– Psychological Factors • That said, social factors in terms of the family
background of entrepreneurship or encouragement
from family towards an entrepreneurial path can play a
great role in guiding a teen towards an entrepreneurial
future.

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Factors affecting Entrepreneurship – Contd… Entrepreneurship Motivation

• Social Factors – Contd…
• Social factors includes:
1) Education
2) Cultural Value
3) Attitude of Society
4) Family background
5) Government Policies, Facilities, and Incentives
6) Role of Banks and Financial Institutions

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Factors affecting Entrepreneurship – Contd… Entrepreneurship Motivation – Contd…

• Psychological Factors
• Introduction
• Perhaps the most direct factors impacting a person’s
• Entrepreneur is human being who has his dignity, self-
likelihood to become an entrepreneur or at least a
respect, values, sentiments, aspirations, dreams apart
successful one, are in fact psychological and may be
from economic status. Indeed, economic betterment and
inherent or instinctual in certain people.
social upliftment motivates a person to distinguish from
• While a person’s upbringing can influence their others.
psychological factors, these can also be personality traits
• Entrepreneurship is to a great extent the product of
that are deeply rooted in who a person is, regardless of
motivation.
outside factors.
• Many entrepreneurial theorists have propounded
theories of entrepreneurship that concentrate especially
upon psychological factors.
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Factors affecting Entrepreneurship – Contd… Entrepreneurship Motivation – Contd…

• Psychological Factors – Contd… • Meaning
• Psychological factors includes: • The entrepreneurial motivation is the process that
1) Aspirations and Attitude activates and motivates the entrepreneur to exert higher
2) Creativity and Ideas level of efforts for the achievement of his/her
3) Risk Tolerance entrepreneurial goals.
4) Leadership and Inspiring Others
5) Need achievement
6) Motives

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Entrepreneurship Motivation – Contd… Entrepreneurship Motivation – Contd…

• Meaning – Contd… • Entrepreneurial Motivating Factors – Contd…
• In other words, the entrepreneurial motivation refers to • Internal Factors
the forces or drive within an entrepreneur that affect the • These include the following factors:
direction, intensity, and persistence of his/ her voluntary – Desire to do something new.
behavior as entrepreneur.
– Become independent.
• So to say, a motivational entrepreneur will be willing to
exert a particular level of effort (intensity), for a certain – Achieve what one wants to have in life.
period of time (persistence) toward a particular goal – Be recognized for one’s contribution.
(direction). – One’s educational background.
– One’s occupational background and experience in the
relevant field.
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Entrepreneurship Motivation – Contd… Entrepreneurship Motivation – Contd…

• Definition of Motivation • Entrepreneurial Motivating Factors – Contd…
• Motivation is regarded as “the inner state that energizes • External Factors
activities and directs or channels behavior towards the • These include:
goal”. – Government assistance and support.
• Motivation is the process that arouses action, sustains – Availability of labour and raw material.
the activity in progress and that regulates the pattern of
activity. – Encouragement from big business houses.
– Promising demand for the product.

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Entrepreneurship Motivation – Contd… Entrepreneurship Motivation – Contd…

• Entrepreneurial Motivating Factors • Theories of Motivation
• Most of the researchers have classified all the factors • The importance of motivation to human life and work
motivating entrepreneurs into internal and external can be judged by the number of theories that have been
factors as follows: propounded to explain human’s behavior.
• Internal Factors • They explain human motivation through human needs
• External Factors and human nature.

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Entrepreneurship Motivation – Contd…

• McClelland’s Acquired Needs Theory – Contd…
• They are as follows:
• (i) Need for achievement (n-Ach): a drive to excel,
advance and grow
• (ii) Need for power (n-Pow): A drive to influencing
others and situations;
• (iii) Need for affiliation (n-Aft): A drive for friendly and
close interpersonal relationships.

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David C. McClelland’s
Achievement Motivation Theory

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Entrepreneurship Motivation – Contd…

• McClelland’s Acquired Needs Theory
• Each person tends to develop certain motivational drives
as a result of his cognitive pattern and the environment
in which he lives.
• David McClelland gave a model of motivation which is
based on three types of needs, namely, achievement,
power and affiliation.

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Entrepreneurship Motivation – Contd…

• McClelland’s Acquired Needs Theory – Contd…
• McClelland also suggests that these three needs may
simultaneously be acting on an individual.
• But, in case of an entrepreneur, the high need for
achievement is found dominating one.

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Entrepreneurship Motivation – Contd…

• McClelland’s Acquired Needs Theory – Contd…
• In his view, the people with high need for achievement are
characterized by the following :
• (i) They set moderate, realistic and attainable goals for
them.
• (ii) Prefer to situations in which they can find solutions for
solving personal responsibility.
• (iii) They need concrete feedback on how well they are
doing.
• (iv) They have need for achievement for attaining personal
accomplishment.
• (v) They look for challenging tasks.
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Achievement Motivation Theory Conceptual model of

Entrepreneurship

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Conceptual model of Entrepreneurship – Contd… Conceptual model of Entrepreneurship – Contd…

• The Advocate Model
• Opportunist, enabler, advocate and producer are the
four models of corporate entrepreneurship that Robert • In the third model, the advocate, a company assigns
C. Wolcott and Michael J. Lippitz discuss in ‘Grow from organizational ownership for driving the creation of new
Within’. businesses to a designated corporate-level group.
• Mapping the models on two dimensions, viz. • It’s main objective is to reinvigorate stale companies and
organisational ownership and resource authority (ad hoc support corporate entrepreneur teams.
to dedicated) all companies begin as opportunists. • The parent company gives the selected teams low-to-
modest budgets and coaches them to create systems
capable of supporting the company in a strategic and
cost-efficient way.

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Conceptual model of Entrepreneurship – Contd… Conceptual model of Entrepreneurship – Contd…

• The Producer Model
• The Opportunist Model • The fourth model, the producer, with focused ownership and
• This model thrives in a culture of risk taking, where dedicated resources, aims to protect emerging projects from
employees like to create innovative new business lines turf battles, to build potentially disruptive businesses and to
and are motivated to work hard as their goal is to be create pathways for executives to pursue careers outside
valued as an important asset to the company. their business units.
• However, the opportunist model works well only • The general objective is to encourage latent entrepreneurs to
in trusting corporate cultures that are open to come out of their shell, but this model also aims to
experimentation and that have diverse social networks encourage cross unit collaboration and the potential to
create disruptive businesses creating jobs for new executives.
behind the official hierarchy.
• These business units are usually helped by senior and veteran
• There need to be multiple executives who can say yes to leaders who give them advice on how to create innovative
a new business concept. and disruptive products.
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Conceptual model of Entrepreneurship – Contd… Intrapreneurship

• The Enabler Model
• Enablers are able to create new concepts on their own,
but have to follow the guidelines of their organization.
• Early stages of new business conception are explicitly
supported, encouraged, and often strategically
channeled, with a promise of serious management
attention to those concepts that look promising.
• But the enabler model is not only about allocating
capital for corporate entrepreneurship.
• It is also about personal development and executive
engagement.
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Intrapreneurship Characteristics of an Intrapreneur – Contd…

• Intrapreneurship is defined as entrepreneurship within 5) Locus of status
an existing business setup. • Intrapreneurs want to do the work on their own rather
• Intrapreneurship is corporate entrepreneurship. When a than delegate like managers
corporation indulges in entrepreneurial activities, like 6) Failure and Mistakes
diversification into new businesses, it is called • Intrapreneur hide risky projects and ideas to ensure
intrapreneurship. learning without political cost and public failure. They
develop multi disciplinary team in the organization and
may go beyond organization boundaries for results.
7) Goal set up
• Intrapreneur are determined to do things not even
asked for. They set goals and quality standards.
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Intrapreneurship – Contd… Difference between Entrepreneurship and

Intrapreneurship
• Intrapreneur is a manager who focuses on innovation
and creativity; who brainstorms, dreams and puts ideas • Entrepreneurs provide the spark. Intrapreneurs keep
into profitable venture by operating within the the flame going.
organizational environment. • Entrepreneurs are found anywhere their vision takes
• It is a tool for capitalizing the entrepreneurial spirit of them. Intrapreneurs work within the confines of an
employees in the organization. organization.
• It gives managers the freedom to try new ideas by • Entrepreneurs know the business on a macro scale.
employing firm’s resources in a unique way. Intrapreneurs are highly skilled and specialized.
• What makes entrepreneurs and intrapreneur similar is
the passion to see things through to the end and the
courage to face failure.
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Difference between Entrepreneurship and

Characteristics of an Intrapreneur Intrapreneurship – Contd…
1) Vision S.No Basis of Entrepreneurship Intrapreneurship
Distinction
• It is the basis for successful venture. An Intrapreneur 1 Meaning An entrepreneur is an An intrapreneur is an
has ability to visualise from idea to implementation. individual who designs, individual who works on
launches, and manages a developing new ideas and
2) Motivation new business, which products within the
• Intrapreneur is generally self motivated, but expect almost always starts out as confines of the business
a small business that they already work at.
corporation reward and recognition.
2 Dependency Entrepreneur is An intrapreneur is
3) Orientation independent in his dependent on the
• Intrapreneur is achievement oriented. operations. He is fully entrepreneur, i.e., the
independent. He does not owner. He depends on
4) Risk Appetite – Intrapreneurs are moderate risk takers work for others and his corporate owner. He works
since risk acceptance depends on their skills. Wild risk own boss. for corporation under
defined rules and
takers are not affordable to corporates. regulations.
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Difference between Entrepreneurship and

Intrapreneurship – Contd…
Types of Entrepreneurs – Contd…
S.No Basis of Entrepreneurship Intrapreneurship • Entrepreneurs turn bold ideas into reality.
Distinction
• They create jobs and contribute to the economy but
3 Core To innovate something new To increase competitive
objective of socio economic value strength and market there are different types of entrepreneurs and each
sustainability of the type tends to choose their own path based on their
organization personality, abilities and surroundings.
4 Capital/ He manages required He does not need to
Investment capital himself. He raises manage required fund • The types of entrepreneurs vary depending on
fund for new business. because corporation raises background, country and even sector but the 5 most
capital for the business. common types are:
5 Risk Bearing he bears the risk involved He does not fully bear the
in the business. He bears risk involved in the • Innovators, Hustlers, Imitators, Researchers and Buyers
100% business risk. He enterprise. He does not
risks own money. bear full risk of the
business, He risks others
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Difference between Entrepreneurship and

Intrapreneurship – Contd…
Types of Entrepreneurs – Contd…
S.No Basis of Entrepreneurship Intrapreneurship 1) Innovators
Distinction
6 Primary Primary motive of He has the motive of
• Innovators are the types of entrepreneurs who come up
Motive entrepreneur is to be advancement and with completely new ideas and turn them into viable
independent, self- promotion with fixed businesses.
satisfaction and earn salary.
monetary reward. • In most cases, these entrepreneurs change the way
7 Time Bound He does not follow strict He does not follow strict people think about and do things.
timetable. It may take timetable. It may take • Such entrepreneurs tend to be extremely passionate
several years for the several years for the
growth of the business. growth of the business. and obsessive, deriving their motivation from the
8 Mind-set He is guided by the He thinks that the unique nature of their business idea.
principle of ‘ Problems problems are threats for
provide opportunities’. him and his corporation.

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Types of Entrepreneurs – Contd…

1) Innovators

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Types of Entrepreneurs – Contd… Types of Entrepreneurs – Contd…

1) Innovators – Contd… 2) The Hustler Entrepreneur
• Innovative entrepreneurs also find new ways to market
their products by choosing product differentiation
strategies that make their company stand out from the
crowd.
• And sometimes it is not just standing out from the
crowd but actually creating a new crowd.
• To say that innovators like Steve Jobs, Larry Page of
Google and Microsoft founder Bill Gates were obsessed
with their business would be an understatement.

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Types of Entrepreneurs – Contd… Types of Entrepreneurs – Contd…

1) Innovators – Contd… 2) The Hustler Entrepreneur
• Advantages of Being An Innovate Entrepreneur: • Unlike innovators whose vision is the gas in their engine,
• Get all the glory for the success of the business (and hustlers just work harder and are willing to get their
take all the arrows) hands dirty.
• Create the rules • Hustlers often start small and think about effort – as
• Face minimal competition during the initial days opposed to raising capital to grow their businesses.
• Disadvantages of Being An Innovate Entrepreneur: • These types of entrepreneurs focus on starting small with
the goal of becoming bigger in the future.
• You will need a lot of capital to bring a new idea to life
• Often face resistance from shareholders
• The timeframe for success is longer
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Types of Entrepreneurs – Contd… Types of Entrepreneurs – Contd…

1) Innovators – Contd… 2) The Hustler Entrepreneur – Contd….
• The ability of an innovative entrepreneur to envision a • Hustlers are motivated by their dreams and will work
new way of thinking makes them stand out from the extremely hard to achieve them.
crowd and wildly successful in many cases however it • They tend to be very focused and will get rid of all forms
takes significant capital, patience and commitment to of distractions, favoring risks over short-term comfort.
bring true innovation to life. • A perfect example of a hustler is Mark Cuban.
• He started in business very young selling trash bags,
newspapers and even postage stamps and this hustle
later created a goldmine which was acquired by internet
giant Yahoo!

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Types of Entrepreneurs – Contd… Types of Entrepreneurs – Contd…

2) The Hustler Entrepreneur – Contd…. 3) Imitators
• Advantages of Being A Hustler
• Imitators are the types of entrepreneurs who copy
• They will outwork most certain business ideas and improve upon them.
• Tend to have thick skin – they don’t give up easily • They are always looking for ways to make a particular
• See disappointment and rejection as just a step in the product better so as to gain an upper hand in the market.
process • Imitators are part innovators and part hustlers who don’t
• Disadvantages of Being A Hustler stick to the terms set by other people and have a lot of
• Usually prone to burn out self-confidence.
• Wear out their team members who don’t have the same
work ethic
• Often don’t see the value of raising capital as opposed to
just working harder.
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Types of Entrepreneurs – Contd… Types of Entrepreneurs – Contd…

2) The Hustler Entrepreneur – Contd…. 3) Imitators – Contd…
• Even though many hustlers never give up, a lot of them • Advantages of Imitators
are willing to try anything to succeed which • Refining a business idea is easier and less stressful
unfortunately means that they have a lot of hits and • You can easily benchmark your performance with the
misses. Achieving their dreams takes a lot longer than original idea
most other types of entrepreneurs. • Can learn and avoid mistakes that were made by the
originator
• Disadvantages of Imitators
• Their ideas are always compared to the original idea
• Always have to play catch-up.

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Types of Entrepreneurs – Contd… Types of Entrepreneurs – Contd…

3) Imitators 3) Imitators – Contd…
• Taking an existing idea and refining and improving it can
be a great way to develop a business.
• It certainly does not have as much risk as the innovator
but it might just not be as sexy.

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Types of Entrepreneurs – Contd… Types of Entrepreneurs – Contd…

4) Researcher 4) Researcher – Contd…
• Even after having an idea, researchers will take their time • Advantages of Being a Researcher Entrepreneur
to gather all the relevant information about it. • Plan for as many contingencies as possible
• To them, failure is not an option because they have • Write detailed, well-thought-out business and financial
analyzed the idea from all angles. plans
• Researcher entrepreneurs usually believe in starting a • Focus on data and information rather than gut feeling
business that has high chances of succeeding because • Won’t start unless they feel like they know the market
they have put in detailed work to understand all aspects.
• Will minimize the chances of failing in the business

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Types of Entrepreneurs – Contd… Types of Entrepreneurs – Contd…

4) Researcher 4) Researcher – Contd…
• Disadvantages of Being a Researcher Entrepreneur
• Typically moves slow
• Doesn’t like risk and that can hamper progress in a new
venture

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Types of Entrepreneurs – Contd… Types of Entrepreneurs – Contd…

4) Researcher – Contd… 4) Researcher – Contd…
• As a result, these types of entrepreneurs usually take a • Even though these types of entrepreneurs spend a lot of
lot of time to launch products to make decisions because time researching and digging into the data to ensure the
they need the foundation of deep understanding. success of their business, they can fall into the habit of
• These entrepreneurs rely much more on data and facts obsessing over the numbers and focusing less on the
than instincts and intuition. running of the business.
• For a researcher, there should be no room for making • Jeff Bezos has spoken against this in a recent letter to
mistakes. shareholders where he asserted that “Most decisions
should probably be made with somewhere around 70%
of the information you wish you had”.

2/23/2024 93 2/23/2024 96

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Types of Entrepreneurs – Contd… Entrepreneurship Development

5) Buyers
Programmes
• One thing that defines buyers is their wealth. 5) Buyers – Contd…
• These types of entrepreneurs have the money and https://www.eshipsimplified.com/entrepreneurship-
specialize in buying promising businesses. development-course
• Buyer entrepreneurs will identify a business and assess
its viability, proceed to acquire it and find the most https://www.toppers4u.com/2021/04/entrepreneurial-
suitable person to run and grow it. development-programme.html

https://www.slideshare.net/DakshGoyal3/entrepreneursh
ip-development-programmes

2/23/2024 97 2/23/2024 100

Types of Entrepreneurs – Contd… Entrepreneurship Development

5) Buyers
Programmes

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Types of Entrepreneurs – Contd… Entrepreneurship Development

5) Buyers – Contd… Programmes
• Advantages of being a Buyer • Entrepreneurship Development Programme (EDP) is a
• Buying an already established venture is less risky programme which helps in developing entrepreneurial
abilities.
• Doesn’t have to worry so much about innovation
• The skills that are required to run a business successfully
• Can focus on building on something that has already
is developed among the entrepreneurs through this
gone through building a foundation
programme.
• Already has a market for your products
• This programme consists of a structured training process
• Disadvantages of being a Buyer to develop an individual as an entrepreneur.
• Usually pays a high price for good businesses • It helps the person to acquire skills and necessary
• Will face the risk of buying businesses that have capabilities to play the role of an entrepreneur
problems that you think you can turn around effectively.
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Entrepreneurship Development Programmes – Objectives of Entrepreneurship Development

Contd… Programmes – Contd…

• According to N. P. Singh, "Entrepreneurship • Short-term objectives

Development Programme is designed to help an • These objectives can be achieved immediately. In the
individual in strengthening his entrepreneurial motive short-term, the individuals are trained to be an
and in acquiring skills and capabilities necessary for entrepreneur and made competent enough to scan the
playing his entrepreneurial role effectively. is necessary existing market situation and environment.
to promote this understanding of motives and their • The person, who would be the future entrepreneur,
impact on entrepreneurial values and behavior for this should first set the goal as an entrepreneur.
purpose”. • The information related to the existing rules and
regulations is essential at this stage.

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Entrepreneurship Development Programmes – Objectives of Entrepreneurship Development

Contd… Programmes – Contd…
• An entrepreneur is required to respond appropriately to the • Long-term objectives
market and he/she is also required to understand the
• The ultimate objective is that the trained individuals
business needs. The skills needed are varied and they need to
be taken care in the best possible way. successfully establish their own business and they should
be equipped with all the required skills to run their
• EDP is an effort of converting a person to an entrepreneur by
passing him through thoroughly structured training.
business smoothly.
• EDP is not just a training programme but it is a complete
process to make the possible transformation of an individual • The overall objectives of EDP are mainly to help in the
into an entrepreneur. rapid growth of the economy by supplying skilled
• This programme also guides the individuals on how to start entrepreneurs.
the business and effective ways to sustain it successfully. • This programme primarily aims at providing self-
employment to the young generation.
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Objectives of Entrepreneurship Phases of Entrepreneurship

Development Programmes Development Programmes
• The objective of this programme is to motivate an • 1) Pre-Training Phase :
individual to choose the entrepreneurship as a career • This step can be considered as the introductory phase in
and to prepare the person to exploit the market which the entrepreneurship development programmes
opportunities for own business successfully. are launched.
• These objectives can be set both in the short-term and • 2) Training Phase :
long-term basis. • The main function of any EDP is to impart training to
future entrepreneurs and guiding them for establishing
the enterprise. The normal duration of the
entrepreneurship development programme is 4-6 weeks
and it is usually a full time course. The objectives are
2/23/2024 105 explained in the programme design.
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Phases of Entrepreneurship Development

Programmes – Contd…
• 3) Post-Training Phase :
• This phase is also referred as the phase of follow-up
assistance. In this phase, the candidates who have • Highest body, established in 1983 by the Ministry of industry,
completed their programme successfully are provided Government of India.
post-training assistance. This phase is very important as • Entrusted the task of coordinating the activities of different
after the completion of training programme, most of the agencies engaged in the task of entrepreneurship
entrepreneurs face a lot of hardship in the business plan development.
implementation. • Confines it’s training activities to such areas where no
organization is coming forward for organizing programmes
and which is totally new.
• Aims at creating conducive environment for emergence of
2/23/2024 109
entrepreneurship.
2/23/2024 112

Importance of Entrepreneurship Functions of NATIONAL INSTITUTE FOR

ENTREPRENEURSHIP AND SMALL BUSINESS
Development Programmes DEVELOPMENT (NIESBUD)
1) Formation of Employment Opportunities
• Evolving effective training strategies and methodology.
2) Provides Adequate Capital • Formulating scientific selection procedure.
3) Proper Utilization of Local Resources • Developing training aids, manuals and other tools.
4) Increased Per Capital Income • Conducting such programmes which are not undertaken by
5) Improved Standard of Living other agencies.
6) Economic Independence • Facilitating and supporting agencies engaged in
entrepreneurship development
7) Preventing Industrial Slums
• Maximizing their benefits and accelerating the process of
8) Reducing Social Tension
entrepreneurship development.
9) Facilitating Overall. Development • Organizing all those activities that help develop
2/23/2024 110 entrepreneurial culture in society.
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Schemes of Assistance by
Entrepreneurship Support Agencies
• A number of government and private institutions are providing
assistance in India to entrepreneurs. Some of them are listed
below :
• Small Industries Development Organisation (SIDO),
• Commercial Banks, • It is a national institute set up by Public Financial
• National Alliance of Young Entrepreneurs (NAYE), Institutions and Government of Gujarat. It promotes
• National Institute for Entrepreneurship and small Business research , training and institution building activities by
Development (NIESBUD), encouraging active participation of backward areas and
• Entrepreneurship Development Institute of India (EDI), special target groups in entrepreneurship.
• India Investment Centre (LIC),
• Small-scale industrial Development Bank Of India (SIDBI), and
Technical Consultancy Organisation (TCO).
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ENTREPRENEURSHIP DEVELOPMENT
INSTITUTE OF INDIA – Contd…
• Its Entrepreneurship development programme consists of
1) Selecting potential entrepreneurs
2) Achievement motivation training • It is a non profit centre promoted and supported by the
3) Product selection and project report preparation Government of India. It aims at promoting mutually
4) Business management training beneficial joint venture between Indian and Foreign
5) Practical training and work experience entrepreneurs.
6) Post training support and follow up • It provides relevant information to the foreign investors,
desirous of making investment in our country.
• The programme run by EDII is said to be the oldest, largest, • It promotes collaborations between Indian and foreign
most comprehensive, best organized and the most successful entrepreneurs.
entrepreneurship development programme in the country.
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• Various state governments in association with all India

financial institutions have promoted various technical
Thank You
consultancy organizations to provide technical
consultancy and training to prospective entrepreneurs.
• These organization provide a comprehensive package of
services to potential entrepreneurs.

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TECHNICAL CONSULTANCY ORGANISATIONS

(TCOs)
• Functions
• Finding out industrial potential
• Undertaking feasibility studies and preparing project
profiles
• Conducting marketing research
• Imparting technical and managerial training.

• It aims to provide assistance to entrepreneurs right from

starting of their enterprise to successful management of
same.
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