Entrepreneurship and SME’s

DR.MEHTAB BEGUM SIDDIQUI

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 Meaning Of Entrepreneurship
Viewed as a function, involves exploitation of opportunities

 Entrepreneurship is the process of creating something new,

 The term “entrepreneur” is often used interchangeably with

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BASIS FOR COMPARISON ENTREPRENEUR ENTREPRENEURSHIP
Meaning An entrepreneur is an Entrepreneurship is a
individual or a team risky activity of
thereof, having an commencing a business
innovative idea, and usually a start up
takes every step to turn company, o ering
the idea into reality, distinct products and
while bearing the risks. services to the target
customers, which may or
may not get success.
What is it? Person who has an idea Process which gives
and gives shape to it. shape to the idea.
Represents An innovator, who A procedure through
chased the dream, till it which an innovation is
becomes true. done.
Business Venture He/She is the one who It is the activity, which
sets up the business an entrepreneur 5
 Importance of Entrepreneurship
 Creates wealth for nation and for individuals as
well:
 Provides employment to huge mass of people:
 Contributed towards research and development
system:
 It is a challenging opportunity for the people:
 Entrepreneurship provides self-su ciency:
 Sky-scraping heights of apparent prospect:

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The term ‘entrepreneur’ subsequently became
common as an identif ication of business founders
and the fourth factor of economic activities was
strongly established in economic literature as
encompassing the ultimate ownership of a
commercial undertaking
DID U KNOW?

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MAN AS ENTREPRENEUR IF ............ 8
 Characteristics Of Entrepreneurs
 An Especially Skillful  A Pioneer Of
Person: Economic Development:
 An Innovator:
 Providing  Dynamic Leader:
Completeness To The  Creator Of Wealth:
Factors Of Production:
 Decision-making  Self-confident And
Person: Ambitious
 A Man Of Creative  Risk-bearer:
Personality:
 Adventurer:
 A Basic Plan-maker:
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Kudos to Modern Entrepreneurs
Is the concept of entrepreneurship new to India? At a superf icial level it
seems to be as
old as the Gupta and Chola dynasties, which traded spices with the rest of
the world,
followed by the Mughals and the Britishers. But during all these eras,
entrepreneurship
was more about creation and accumulation of wealth in the hands of few.
The essence of
entrepreneurship is creation of wealth - Yes, not mere accumulation, but
rather distribution
of wealth. And when it comes to distribution of wealth none of the
dynasties and the
rulers of the past pass the qualif ic ation. In this context, it is only the
entrepreneurs of the
post-liberalization era who f it the bill. Entrepreneurs of the recent era not
only work for
their own growth but also for the growth of all those who are associated 10
 Intrapreneur
 a term coined by Macrae (1982) and developed by Pinchot (1985)
 According to Pinchot ‘Intrapreneurs are "dreamers who do,"
those who take hands-on responsibility for creating innovation of
any kind within an organization’.
 Entrepreneurship is the practice of embarking on a new
business or reviving an existing business by pooling together a
bunch of resources, in order to exploit new found opportunities.
 What is Intrapreneurship?: Intrapreneurship is the practice of
entrepreneurship by employees within an organization.
 Entrepreneurship within an existing business.
 An opportunity for corporate managers to take initiative & try
new ideas. An internal corporate venture (ICV)
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 EXAMPLE OF INTRAPRENEUR
Many companies are famous for setting up internal
organizations whose purpose is to promote innovation
within their ranks. One of the most well-known is the
Skunk Work. This group formed in 1943 in Burbank,
California to build P-80 f ighter jets. Kelly Johnson, aircraft
engineer and aeronautical innovator was the director of
the project. Its largest current project is the F-35
Lightning II, which will be used in the air forces of several
countries around the world. Another example could be 3M,
who encourage many projects within the company. They
give certain freedom to employees to create their own
projects, and they even give them funds to use for these
projects. Besides 3M, Intel also has a tradition of
implementing Intrapreneurship.Google is also known to be 13
 The Entrepreneurial Process
1. Idea Generation: every new venture begins with an idea. In our context, we take an idea to be a description of a
need or problem of some constituency coupled with a concept of a possible solution. (A characterization of this
phase is still work in process on this site.)

2. Opportunity Evaluation: this is the step where you ask the question of whether there is an opportunity worth
investing in. Investment is principally capital, whether from individuals in the company or from outside investors, and
the time and energy of a set of people. But you should also consider other assets such as intellectual property,
personal relationships, physical property, etc.

3. Planning: Once you have decided that an opportunity, you need a plan for how to capitalize on that opportunity. A
plan begins as a fairly simple set of ideas, and then becomes more complex as the business takes shape. In the
planning phase you will need to create two things: strategy and operating plan.

4. Company formation/launch: Once there is a su ciently compelling opportunity and a plan, the entrepreneurial
team will go through the process of choosing the right form of corporate entity and actually creating the venture as
a legal entity.

5. Growth: After launch, the company works toward creating its product or service, generating revenue and moving
toward sustainable performance. The emphasis shifts from planning to execution. At this point, you continue to ask
questions but spend more of your time carrying out your plans. 14
 OPPORTUNITY COMPANY’S PLAN EXECUTION
EVALUATION
(INVESTMENT
PROSPECTUS)
• Need / problem Strategy • Market research
• Solution • Target customer • Marketing
• Competitive • Business model • Business
position • Position development
• Team • Milestones / • Forecasting
• Risk / reward company • Sales planning
profile objectives • R&D management
• Operations
Operating plan management
• People
• Company timeline management
• Sta ng plan • Process and 15
 Types of Entrepreneurship
all active owner-managers are entrepreneurs
Classification on the Basis of Ownership
 Founders or “Pure Entrepreneurs”:
 Second-generation operators of family-owned businesses:
 Franchisees:
Example: NIIT has given its franchisee operations to local players
after thorough scrutiny and proper training. These franchisees
follow the same curriculum, use the same set of books, have the
same pricing strategy and award the same degree. They share the
profit margins and get training, curriculum design and books from
the parent company i.e., NIIT.
 Owner-Managers:

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Classif ication on the Basis of Personality
Traits and their Style of Running Business
 The Achiever:
 The Induced Entrepreneur:
 The Idea Generator:
 The Real Manager:
 The Real Achievers:

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Classif ication based on the Type of Business

 Industrial Entrepreneur:
 Trading Entrepreneurs:
 Corporate Entrepreneur:
 Agricultural Entrepreneur

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Classif ication based on the Stages of
Development
 First Generation Entrepreneur:
 Modern Entrepreneur
 Classical Entrepreneur:

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Other Classif ications
 Innovative Entrepreneurs
 Imitative Entrepreneurs:
 Fabian Entrepreneurs:
 Drone Entrepreneurs:
 Women Entrepreneurs:
 Co-preneurs
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Ahsan Irshad, 26-year-old computer science
graduate,
HOW IT STARTED HOW ITS GOING

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what exactly is corporate entrepreneurship?
We def ine the term as the process by which teams within
an established company conceive, foster, launch and
manage a new business that is distinct from the parent
company but leverages the parent’s assets, market
position, capabilities or other resources. It dif fers from
corporate venture capital, which predominantly pursues
f inancial investments in external companies. Although it
often involves external partners and capabilities (including
acquisitions), it engages signif ic ant resources of the
established company, and internal teams typically manage
projects. It’s also di erent from spinouts, which
are generally constructed as stand-alone enterprises that
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The Corporate Entrepreneurship model is suitable
for companies:
The Opportunist: used when a new company is established
and aims to explore latent innovation capabilities that
exist within the company’s employees.
The Enabler : Used to support a company’s innovative and
experimental culture.
The Advocate : Used to accelerate the growth of
established divisions with a process that is not too gradual
in the presence of stable leadership.
The Producer : Used when a company wants to pursue
new growth, discover breakthrough opportunities, or
thwart potentially disruptive competition.
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One example of the enabler model in action is Google. Google
allows its employees to spend 20% of their time working on
corporate entrepreneurial projects 1. This means that
employees can work on their own projects, which can be
developed into new businesses if they are successful. Gmail
and Google Maps are two examples of successful projects that
started as employee side projects
One example of the opportunist model in action is Zimmer
Holdings. Zimmer Holdings is a medical device company that
specializes in orthopedic products. The company has no
deliberate approach to corporate entrepreneurship, and new
businesses are built mainly from the grassroots e orts of a few
“project champions”. This means that employees within the
company are encouraged to develop new ideas and projects
on their own initiative, without any formal structure or support
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One example of the producer model in action is Cargill. Cargill is a
multinational corporation that operates in the food, agriculture,
f in ancial, and industrial sectors. The company has a dedicated
team of professionals who are responsible for identifying new
business opportunities and developing them into successful
ventures. Cargill’s corporate entrepreneurship program has been
successful in creating new businesses that have generated
significant revenue for the company.
One example of the advocate model in action is DuPont. DuPont is
a multinational conglomerate that operates in various industries
such as agriculture, electronics, and transportation. The company
has a long history of innovation and has been successful in creating
new businesses that have generated signif ic ant revenue for the
company. DuPont’s corporate entrepreneurship program is
characterized by a strong commitment to innovation and a 33
Activity no 3:
Bring examples of the corporate
entrepreneurship model other than
already mentioned for further
discussion?

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 INTRODUCTION
Social entrepreneurship applies the principles
and guidance used by start-up founders and
entrepreneurs to a business that directly
generates social change or impacts a social
cause.
A social entrepreneur is primarily motivated by a
desire to alleviate some kind of systemic social
or cultural problem.
As a concept, social entrepreneurship is not new.
For example, some experts may consider
Florence Nightingale, who created the f ir st36
Some key areas of interest for social entrepreneurs might
include:
• Economic development
• Education
• Gender equality
• Health care
• Agriculture
• Environmental sustainability
• Renewable energy
• Community development
Social entrepreneurship can operate as a non-profit, for-
profit, or hybrid business (also known as a social enterprise
), depending on the business model that you prefer and
the availability of funding. 37
 Entrepreneur Social entrepreneur
OBJECTIVE Build a sustainable business Build a sustainable and
socially impactful
business
MOTIVE Financially driven Mission-driven
FOCUS Individual consumers Social groups
LINK TO SOCIAL
ISSUES Indirect Direct
COMPETITION/
COLLABORATION
Competitive with Collaborative with
related businesses related businesses
SUCCESS Based on sustainable Based on
profits sustainable social
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Types of Social Entrepreneurs
Community Social Entrepreneur
• Prioritizes the need of a small geographical region, usually the community it
lives in.
• Primary purpose of their entrepreneurship is to benefit their local area.
• Often builds strong relationships in its community, taking advantage of
relationships to leverage How resources flow within its town.
• Community members, local organizations, and the community social
entrepreneur work together to make sure the needs of the community are
met and partnerships that make sense are created.
Non-Profit Social Entrepreneur
• More common type of social entrepreneur
• Entity has a broad stated goal that benefits someone but not necessarily
their direct community.
• With the introduction of remote or online social entrepreneurship, it is now
easier to create entities with broader mission-driven purposes.
• The net profits of the non-profit enterprise are often returned back to the
entity for further develop into programming. 39
Transformational Social Entrepreneur
• The next stage of non-profit social entrepreneurship.
• They are focused on creating a greater social impact while also generating greater economic
benefits for the organizations.
• These are large-scale organizations with their own set of rules and regulations.
• In some cases, they grow big enough to collaborate with or integrate into government
bodies focused on solving social problems.
• Transformational social enterprises have better access to the top talent because of their size
and budget.
• They also recruit people and provide them with in-house training and mentorship to meet
the organization’s talent requirements.
Global Social Entrepreneur
• Global social entrepreneurs are big players who target social and environmental problems on
a global scale.
• Their goal is to bring a change in social systems using their financial and international
standings.
• Generally, big organizations and multimillionaires go down the path of global social
entrepreneurship when they become socially responsible and focus their e orts on bringing
positive change.
• These organizations have lofty goals, such as fighting food shortages in an impoverished
continent or eradicating polio from the world.
• As a result, they work with a network of other organizations and social entrepreneurs40 to
6 P's of Social Entrepreneurial Enterprises
People
identifying what people, they want to benefit. Sometimes, this is the people in their
specific geographical region. Other times, this is people within a certain demographic
(i.e. people with low income).
Problem
identify a problem that the people in the previous section face. Usually, during the
brainstorm phase of an entity, the social entrepreneur will link the two together.
Plan
With the people and problem identified, a social entrepreneur must devise a plan to
solve the problem.
Prioritize
One of the largest challenges for a social entrepreneur is a lack of available resources
to tackle the problem they wish to solve. how they go about operating, and what
expansion looks like.
Prototype
Because resources are limited, social entrepreneurs often test out solutions in small
markets before expanding. This means creating prototype products, services, or
processes. It also tests out how di erent funding and resources can help it achieve its
goals 41
KEY TAKEAWAYS:
• A social entrepreneur is interested in starting a business
for the greater social good and not just the pursuit of
profits.
• Social entrepreneurs may seek to produce environmentally-
friendly products, serve an underserved community, or
focus on philanthropic activities.
• Social entrepreneurship is a growing trend, alongside
socially responsible investing (SRI) and environmental,
social, and governance (ESG) investing.
• The four primary types of social entrepreneurs are
community social entrepreneurs, non-prof it social
entrepreneurs, transformational social entrepreneurs, and
global social entrepreneurs. 42
Barriers
ENTREPRENEURSHIP & SME’S 43
In general, barriers to entrepreneurship are the
frame able perceptions in entrepreneurs’ minds
concerning starting and managing new
businesses
• E v e r y e n t re p re n e u r c a n n o t a c h i e v e
instantaneous success.
• They faced so many obstacles to achieve
success.
• Barriers are obstructions that prevent
movement in entrepreneurs’ journey. But
entrepreneurs are capable of winning those 44
There are many types of barriers to entrepreneurship.
Internal barriers to entrepreneurship and external barriers to
entrepreneurship are the major partitions we can identify when
discussing barriers to entrepreneurship.
• Personal Barriers To Entrepreneurship,
• Financial Barriers To Entrepreneurship,
• Environmental Barriers To Entrepreneurship,
• Cultural Barriers To Entrepreneurship,
• Policy Barriers To Entrepreneurship, And
• Economic Barriers To Entrepreneurship.
These barriers are good learning for entrepreneurs. Overcoming
barriers is part of entrepreneurship. But entrepreneurs need to be
good enough to overcome those barriers by creating and
improving their skills. Also, government and other social
institutions have part of this to help entrepreneurs to overcome
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Barriers to Entrepreneurs
Lack of Money as a Barrier to Entrepreneurship
No matter how good your idea is, you will always require stable f inances and
funding from investors to start the process
Many banks, private investors, angel investors, and associations f ind it quite
challenging to believe in start-up ideas owing to the risk of failure and losing
their money. Also, this will depend on the country’s economic position.
Compared to Europe countries most Asian countries are not in a stable
economic position. Their f in ancial sector cannot provide enough f in ance to
upcoming entrepreneurs.
Solutions for Lack of Money Barrier
Entrepreneurs don’t have to depend on a bank or investor.
1. Entrepreneurs can use the start small and grow big strategy
2. entrepreneurs can use shared prof it agreements with other resource
holders
3. they can spend some time finding an investor for their venture.
The government has a lot of tasks to sort out these barriers. They need to
establish institutions to help entrepreneurs to get their necessary funds,47
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Managing Finances as a Barrier to Entrepreneurship
Entrepreneurs are a lot more focused on their output.
they will lose their budget when relying on making quality
output.
Most entrepreneurs do not have proper f in ancial
knowledge.
To the developing stage of their company they will face a
lot more problems relating to managing finance.
Investment Decision-making, budgeting issues, f inancial
resource allocation, and working capital issues.
Solutions for Managing Finances Barrier
1. Learn how to manage finance as an entrepreneur.
2. Use expert views of your problems before taking a
decision. 48
Lack of Experience as a Barrier to Entrepreneurship
This barrier is related to young entrepreneurs as well as the
newcomers who newly entered their market. We can call
this inadequate market experience / less market
experience as well.
Experience is a thing that you can not buy.
Missing competitive advantages and not handling the
situation correctly are some a ect entrepreneurs face as a
result of lack of experience. There are some tips to
overcome the lack of experience barrier.
Solutions for Lack of Experience Barrier
1. you can hire experienced people to do your task, and
take your decisions.
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Fear of Failure as a Barrier to Entrepreneurship
Fear of Failure can call a fear of not being a success as well.
As a start-up entrepreneur, you may think a lot more about
the initial finance, investors, ideas, and many more things
in your starting point as an entrepreneur.
They will face this barrier when they have family issues,
financial failures, and instability of their business.
Solutions for Fear of Failure Barrier
1. create a proper business plan.
2. If you are an established entrepreneur then you can use
well-prepared plans for your upcoming projects.
3. building a feasible think tank in your company.
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Not having Backup Plan as a Barrier to Entrepreneurship
What a backup plan gives you is it gives you some comfort zone
when you failed in your field of entrepreneurship.
another business idea can perform by using current business
resources or, another income source you can earn by using your
current skills.
Solutions for not having Backup Plan Barrier
It is really simple. You need to create a backup plan as an
entrepreneur.
For example, think you are selling used cars. As a result of the
economic collapse in your country, people reduce the demand for
buying cars. Then you can go with renting out vehicles as a
backup plan. If you have troubles with your plan “A” then you can
go with your plan “B”. This is the back plan.
If the primary transport for attendees fails or is delayed, event
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Limiting to One Income Source as a Barrier to
Entrepreneurship
Not identifying the other opportunities related to
their business
It is riskier. it’s very important to have three or more
income sources related to your business.
Solutions for Limiting to One Income Source Barrier
Income source identif ication needs to be done in the
business planning stage.
Having three or more income sources is healthier.
If you didn’t do it in your business plan stage you can
i d enti fy o ther i nco m e reso urces b y d o i ng an
environmental analysis and swot analysis. 52
Political Barriers to Entrepreneurship
Governments need to provide special security to
new ventures to secure them from market
competition.
An entrepreneur must consider the political factors,
beneficial for the long-term survival and
development of the business.
Solutions for Political Barriers to Entrepreneurship
1. You can make an entrepreneur association and
2. submit proposals to the government or make a
sound to the government. 53
A lack of contacts
You do not need to spend money to build contacts.
entrepreneurs are not good at building contacts or creating
networks with communities.
build new markets, expand your business scope, get more
knowledge and find new opportunities through
entrepreneurial contacts.
Solutions for Lack of Contacts Barrier
1. Entrepreneurs can join entrepreneurship forums to share
their knowledge and build contacts.
2. Entrepreneurs can build community networks in their
businesses.
3. Entrepreneurs can build contacts through online networking
platforms like LinkedIn, Facebook, and Instagram.
These tools help to get in touch with potential investors,
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Entrepreneurship Education Underdevelopment as a Barrier
to Entrepreneurship
There are limited curriculums to teach entrepreneurship.
These teaching methods also a lot more focus on teaching
entrepreneurship theories to the students than giving
entrepreneurial experience. As a result, the expected
quality is not in these students.
Solutions for Entrepreneurship Education
Underdevelopment Barrier
1. I t i s i m p o r t a n t t o i n v e s t m o re i n d e v e l o p i n g
entrepreneurship education.
2. E n t repren eu rial ex perien c e n eed t o be part of
entrepreneurship education.
3. Governments can introduce entrepreneurial training 55
Corrupt Business Environment as a Barrier to Entrepreneurship
We can discuss the corrupt business environment in two ways.
The first one is corruption in organizations. This will happen as a
result of not maintaining proper business rules, business culture,
and business processes. The second one is corruption
environment in the country. Entrepreneurs can’t control this. If
the environment of the country is corrupt then it does not inspire
young entrepreneurs. Countries’ corruption results can identify
through the world corruption index.
Solutions for Corrupt Business Environment Barrier
1. Maintaining proper business rules, building ethical business
culture, and introducing transparency in business processes are
solutions for corrupt business environment barriers.
2. To improve the country’s corruption results, policies need to
be changed. Those changes can identify through by referring
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Characteristics of Planning

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 Importance of Planning
 helps managers to improve future performance,
establishing objectives and selecting a course of action,
benefit of the organization.
 minimizes risk and uncertainty, by looking ahead into
the future.
 facilitates the coordination of activities. Thus, reduces
overlapping among activities and eliminates unproductive
work.
 states in advance, what should be done in future, so it
provides direction for action.
 uncovers and identifies future opportunities and threats.
 sets out standards for controlling, compares actual 60
P lanning is present in all types of
organisations, households, sectors,
e co n o m i e s , e t c . W e n e e d t o p l a n
because the future is highly uncertain
and no one can predict the future with
100% accuracy, as the conditions can
change anytime. Hence, planning is the
basic requirement of any organization for
the survival, growth and success. 61
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