module 4 ENTREPRENEURSHIP and social.pptx

ENTREPRENEURSHIP
6/28/2024
1
MODULE 4
ECE, GNDEC Bidar

Entrepreneur-A few definitions
 “An entrepreneur in any given economy is an
individual who introduces something new in
the economy”-Joseph Schumpeter
 “An entrepreneur is one who innovates, raises
money, assembles inputs, chooses managers
and sets the organisation going with his ability
to identify them”- Vasant Desai
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Entrepreneur-A few definitions
 “An entrepreneur is an individual who
bears the risk of operating a business in
the face of uncertainty about the future
condition”- Encyclopedia Britannica
 An entrepreneur is one who always
searches for change, responds to it an
exploits it as an opportunity” –Peter
drucker
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EVOLUTION CONCEPT OF
ENTREPRENEUR
 The word ‘entrepreneur’ is derived from French
word ‘Entreprendre’ which means ‘To undertake’
 16th century it was used for army leaders.
 17th century Person bearing risk of either profit or
loss in a fixed price contract with government.
 18th century an entrepreneur as a person is risk
taking and different from person who supplies
capital.
 19th century An entrepreneur is distinct from both
a financier as well as manager.
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Concept of ‘Entrepreneurship’
 Entrepreneurship is a behavior includes
 1) Risk Bearer-Cantilon
 2) Organizer-Baptist
 3) innovtor-Schumpeter
 Introduction of new product in the market.
 Use of new method.
 Opening of new market.
 Discovery of new source of raw materials and
bringing new form of organisation.
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Types of entrepreneurs
 According to stages of economical
development
 1)Innovative entrepreneur
 2)Imitative entrepreneur
 3)Fabian entrepreneur
 4)Drone entrepreneur
 According to area
 1) Urban entrepreneur.
 2) Rural entrepreneur.
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 According to the types of business
 1)Business entrepreneur
 2)Trading entrepreneur
 3)industrial entrepreneur
 4)Corporate entrepreneur
 5)Agricultural entrepreneur
 6)Retail entrepreneur
 7)Service entrepreneur
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 According to use of technology
 1) Technical entrepreneur
 2) Non technical entrepreneur
 3) Professional entrepreneur
 4) High tech entrepreneur
 5) Low tech entrepreneur
 According to gender
 1) Men entrepreneur
 2) Women entrepreneur
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1) Innovative entrepreneur
 An innovative entrepreneur is one who introduces
a new product or a new technique or a new
market and can reorganize the enterprise if
needed.
 They are generally aggressive in experimentation
and seize opportunities.
 They are capable of converting attractive
possibilities into practice.
 They raise money to start enterprise, assemble
the various factors, choose the right employees
and set the organisation going.
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2) Imitative entrepreneur
 Imitative entrepreneur are those who adopt or
copy successful innovation created by innovative
entrepreneur.
 They do not innovate the changes themselves,
but only imitate techniques and technology
innovated by others.
 Imitative entrepreneurs are more commonly found
in developing countries because people there
prefer to imitate product, technology, Knowledge
and skill already available in more advanced
countries.
 They are important for the development of poor
countries.
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3) Fabian entrepreneur
 Fabian entrepreneurs are characterized
by great caution in experimenting any
change in their enterprises.
 They have neither the will to introduce
any new changes nor desire to adopt
new methods innovated by others.
 They imitate or bring in changes only
when it is a question of survival.
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4) Drone entrepreneur
 Drone entrepreneur are those who are
highly resistant to changes.
 They refuse to adopt, imitate or make
changes in production methods.
 They may even suffer from losses but
prefer to stick to traditional way.
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According to the types of
business
 1)Business entrepreneur
 Business entrepreneurs are individuals who
conceive an idea for a new product or service
leading to new business.
 He deals with product development,
Marketing and sales.
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business
2)Industrial entrepreneur
 Industrial entrepreneur is generally a
manufacturer who identifies the potential
needs of customer and tailors a product or
service to meet the marketing needs
3)Trading entrepreneur
 Trading entrepreneur is one who undertakes
trading activities and is not concerned with the
manufacturing work. He is engaged in only
trading.
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business
4) Corporate entrepreneur
 Corporate entrepreneur demonstrate his
innovative skill in organizing an managing
corporate undertaking.
5) Agriculture entrepreneur.
 Agricultural entrepreneur undertake agricultural
activities such as raising and marketing crops,
Fertilizers and other input of agriculture.
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According to use of technology
1) Technical entrepreneur
 Technical entrepreneur also called as
“Craftsman”, Develops improved quality
goods.
 His concentration is oriented towards
manufacture than marketing and selling.
 His aim is to develop quality goods using his
innovative ideas.
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2) Non Technical entrepreneur
 Non technical entrepreneur is not concerned
with technical aspects of a product.
 They are mainly concerned with development
of alternative marketing and distribution
strategies to promote their business
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3) Professional entrepreneur
 Professional entrepreneur is a person whose
interest is to establish a business but does not
deal with its management and organizing it.
 A professional entrepreneur sells out the
established business and starts and other
venture.
 He is very dynamic who keeps on conceiving
and venturing new ideas.
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Functions of an entrepreneur
 Peter Kilby has identified 13 functions of an
entrepreneur
 All the functions have been broadly classified into
three categories
1) Entrepreneur as an Innovator
2) Entrepreneur as a Risk taker
3) Entrepreneur as an organizer
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As innovator, an entrepreneur has the following
functions
1) Introduction of a new product in the market. It
could be a product totally unfamiliar to customer
or it could be a new variety of an old product.
2) Introduction of a new method of production
which is not yet tested in branch of manufacture
concerned.
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3)Opening of new market into which the product has
not previously entered.
4) The discovery of a new source of supply of raw
material.
5) Carrying out a new form of organisation. Creating a
monopoly over others or by breaking the monopoly
of others.
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As a risk taker an entrepreneur has the
following five functions.
1) An entrepreneur assumes all possible risks
of business
2) An entrepreneur buys all what is necessary
to make finished goods, but it is uncertain
about their selling prices.
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3) An entrepreneur has to bear uncertainty
which can be neither be insured against nor
be calculated.
4) An entrepreneur tries to reduce risks by
combining experience, foresight and
professional help.
5) An entrepreneur tries to reduce uncertainties
by his initiative, skills and good judgment.
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3) Entrepreneur as an Organizer
Ultimately an entrepreneur responsible for the
organization and running of his business.
As an organizer, an entrepreneur has the following
three functions
1) An entrepreneur has to raise sufficient capital
for the smooth running of the organisation.
2) He has to plan, delegate and execute all factors
of business. He has to have moral qualities and
a thorough knowledge of the business world.
3) He must manage and distribute his profit wisely.
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Intrapreneurs
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 Every orgnisation faces problem of sudden
resignation of their top executives.
 A few executives tends to become
entrepreneurs and start their own ventures.
 Some of these business venture may become
competitors to the organisation they had quit.
 To over come such situation Gifford Pinchot,
an American management guru suggested the
concept of intrapreneur.
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Role of entrepreneurs in
economical development
26
1. Entrepreneurs help create business
organization by mobilizing the savings of public.
2. They provide large-scale employment which
reduces the unemployment problem in the
country.
3. They promote industrialization in rural areas
and reduce regional imbalances.
4. They cause equitable distribution of wealth and
income in many cases.
5. They help to reduce over dependence on
agriculture by rural people.
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Role of entrepreneurs in
economical development
27
6. They help to reduce concentration of wealth in
few hands.
7. They encourage learning and usage of skills
which might otherwise remain unutilized.
8. They increase forex reserves of the country by
reporting their goods and services.
9. They are basically change agents. They can
initiate and bring in vast change in structure of
business and society.
10. Successful entrepreneur become icons and can
inspire a whole new breed of entrepreneur.
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Barriers to entrepreneurship
28
 The barriers to entrepreneurship can be classified
as
1. Environmental barriers
2. Financial barriers
3. Personal Barriers
4. Societal barriers
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1. Environmental barriers
a) Raw materials: Non availability of raw materials
for production, especially during peak season, is
a big barrier.
b) Labour: Human resources is the most important
resource in any organisation. Lack of availability,
both quality and quantity, can effect
entrepreneur.
c) Machinery: machinery becoming obsolete, and
the need for their maintenance and upgrading, is
a big difficulty for small business organisation.
d) Land, building and infrastructure: These go a
long way in deciding the fortunes of the
company and lack of good facilities act as major
barriers.
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2. Financial barrier
a) Finance is the life blood of any organisation. If
there is no proper flow of finances both in
company and in the country, there are bound to
be problems.
b) There are plenty of successful small business in
India. But the entrepreneurs lack the will and
strength to scale up their operations.
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3. Personal barriers:
a) Lack of self confidence: this is
very big barrier to individual. It is
caused by peer and lack of
experience.
b) Lack of motivation: In the
beginning all entrepreneurs are
enthusiastic about their projects. But
they may lose interest especially in
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3. Personal barriers:
c) Lack of patience: this barriers
is more dominant among youth
entrepreneurs. When things do
not go as expected they may
lose interest due lack of
patience. 6/28/2024
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4. Societal Barriers
Religious and conservative attitudes of the society
can inhibit entrepreneurs.
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QUESTIONS
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1. Explain the classification of entrepreneurs
based on functional characteristics and types of
entrepreneural business.
10marks, dec/jan 2015
2. describe any five specific management
problems faced by entrepreneurs.
10marks, dec/jan 2015
3. In detail, discuss on women entrepreneurs.
10marks, june/july 2014
4. compare intraprenuer, entrepreneur and
manager.
10marks, june/july

QUESTIONS
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5. Bring out the broad classification of entrepreneur.
(10Marks)
6. Formulate the steps involved in the
entrepreneurial process.
(10Marks)
7. Optimize all the problems faced by an
entrepreneur.
(10Marks)

SOCIAL AUDIT
BUSINESS ETHICS AND
CORPORATE GOVERNANCE

SOCIAL AUDIT
Social audit is a systematic study and evaluation of
the organisation’s social performance as
distinguished from its economic performance.The
term ‘social performance’ refers to any
organisational activity that effects the general
welfare of society.
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SOCIAL AUDIT
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SOCIAL AUDIT
Publish
social audit
results
Define
values and
objectives of
organisation
Collect data
–qualitative
and
quantitative
Identify
indicators of
performance
Evaluate
data internal
and external
comparisons 6/28/2024
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SOCIAL AUDIT
BENEFITS:
 It supplies data for comparison with the organisation’s social
policies and standards.The management can determine how well
it is living up to its social objectives.
 It develops a sense of social awareness among the employees.
 It provides data for comparing the effectiveness of different types
of programs.
 It provides data about the cost of social programs,so that the
mamangement can relate this data to budgets,available
resources,etc.
 It provides information for effective response to external groups
which make demand on the organisation.
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SOCIAL AUDIT
LIMITATIONS:
 Social audit is a process audit rather than the audit of results.
 They are difficult to measure.
 Their classification under ‘good’ or ‘bad’ is not universally
accepted.
 Most of them occur outside the organisation,making it difficult to
secure the data from outside organisations.
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BUSINESS ETHICS
AND CORPORATE
GOVERNANCE
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BUSINESS ETHICS
 The term ‘ethics’ defines the standards that bear on
right and wrong issues of society. Business ethics is
thus a set of professional standards, which
emphasize principles of honesty and duty to the
business and the general public. The other significant
principles included in business ethics are:
 Fairness
 Integrity
 Commitment to agreements
 Broad-mindedness
 Importance given to human esteem and self-respect
 Responsible citizenship
 Attempt to excel
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BUSINESS ETHICS
o ‘Business may be defined as an activity in which different persons
exchange something of value, whether goods or services for mutual
gain or profit.’
o Business Ethics is the applications of moral principles to business
problems.
o Business ethics has different meanings for different people, but
generally it is to decide what is right or wrong in the business.
According to Wallace and Pekel, ‘attention to business ethics is
necessary during times of fundamental change as the moral values
that were not taken seriously are strongly questioned at that time’.
Business ethics enables the leaders and employees to act at the
time of crises and confusion in the business. Therefore, business
ethics helps to deal with business ethical issues that are vague.
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BUSINESS ETHICS
o An action may be legally right but not ethically,for example
a village 20km away from the urban area having a single
grocer’s shop in the village ,the shopkeeper can charge any
price it may be legally right but not ethically.
o Discrimination against women in pay and promotion is also
unethical which is still continued in some of the places
despite of the EQUAL REMUNERAION ACT,1976.
o The credibilityof a business depends on its high business
integrity and ethics.
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The term ‘corporate governance’ is
used to denote the extent to which the
companies run in an open and honest
manner in the best interest of all stake-
holders.The key elemets of good corporate
governance are transparency and
accountability projected through a code
which incorporates asystem of checks and
balances between all key players,board of
directors,auditors and stake holders.
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Corporate governance is defined as an act of
controlling, directing and evaluating the activities
of an organization. The structure of corporate
governance specifies that the others taking part in
the organization, such as the board managers,
board of directors, shareholders and other
stakeholders must be provided with some rights
and responsibilities. Providing powers to the
participants of the organization results in the
monitoring of performance of the employees in an
organization. Corporate governance helps the
organization achieve the goals and objectives of
an organization in a desired manner. Corporate
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Corporate governance in India:
 The securities and exchange board of India(SEBI)
monitores corporate governance of listed Indian
companiesthrough clause 49 which is incorporated in the
listing agreement of stock exhanges with companies.
 The Companies act,2000 has introduced several
provisions relating to corporate governance such as
setting up of audit committees ,additional group of
diqualification of directors,etc.
 India has many bodies that rate companies for credit
worthiness.Important among them are CRISIL(credit
rating and information services of India
ltd.ICRA(investment information and credit ranging
agencies of India ltd. 6/28/2024
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The Need for Corporate Governance:
 It is very important in today’s globalized
business world, where corporations
require to have access to global pools
of capital attract and retain the best
human resource from all parts of the
globe. If a corporation does not take up
and show ethical conduct, it is not
considered to be successful. 6/28/2024
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responsibilities of
entrepreneurs
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Social responsibilities of
entrepreneurs:
• Responsibility for consumers
• Responsibility for employees
• Responsibility for investors
• Responsibility for related professional institutes
• Responsibility for local public
• Responsibility for the nation
• Responsibility at international level.
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Responsibility for consumers:
 In this world of consumerism it is rightly said that
consumer is king .
 Responsibility towards consumers can be better
fulfilled by reasonable pricing.
 An entrepreneur should have properly studied
market , income ,taste of consumers and
accordingly should produce and promote the
product.
 Entrepreneurs should consult consumer forum
and according to their suggestions , decide the
quality and price of the product.
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Responsibility for employees:
 Employees are the life blood of the organisation .
 Without them , an entrepreneur cannot achieve
the organisational goal.
 To satisfy them as per qualification,skill and
experience healthy renumeration should be paid
and avoid exploitation.
 The working place should be neat and clean with
proper ventilation and light.
 For the refreshment , provide canteen, rest
,sanitation etc.
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Responsibility for investors:
 When the fund is collected from vareity of
sources like shares or debentures ,responsibility
towards the interest of different investors also
arises.
 The prime responsibility is to reward the
handsome return on their investments.
 It is duty of entrepreneur to give detail about the
progress of the company periodically.
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Responsibility for related
professional institutes:
 An entrepreneur is also connected with different
organizations , institutes like chamber of
commerce,labour union,merchantile federation,
social welfare institute etc.
 For the development of the industry and interests
of members ,such institutes organizes various
activities like conferences,seminar etc.
 Entrepreneur should provide finance for such
activities which are helpful for the soceity.
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Responsibility for local public:
 Industrial unit is established in the society .so it
becomes the responsibility of the entrepreneur to
take care of residing people living nearby.
 Entrepreneur should help local economically
backward, widows ,unemployed youth.
 He should put local people for employment in first
priority. this will increase positivity for the industry
among local people.
 Entrepreneur should provide guidance for
emerging young entrepreneurs.
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Responsibiliy for the nation:
 An entrepreneur undertakes his business
activities in the boundaries of any nation.
 So it becomes his duty to follow the law and order
of any particular region or nation.
 Entrepreneur should undertake the research and
development and uplift the lifestyle of the nation.
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Responsibility at international
level
 Entrepreneurs has to provide global quality
standard to sustain in the market.
 The entrepreneur has to produce the product
keeping in mind the global standard.
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Thank you
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E-DEVELOPMENT
MODEL
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The theories of entrepreneurship are based on
pyschological/personality traits and sociological
models influencing the success of small
businesses.
ENTREPRENEURIAL DEVELOPMENT
MODELS
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Pyshological trait theories of entrepreneurship
state that certain attitudinal and pyschological
attributes differentiate entrepreneurs from non-
entrepreneurs , and successful entrepreneurs
from unsuccessful ones.
Pyschological theories of
entrepreneurship
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 A)Need for achievement model:
 This theory contends/states that people desire to
achieve something for their inner feeling of
accomplishment.
 The theory may be related to the western culture
where personal achievement is very much
appreciated by the society compared to other
cultures.
 It is limited only to business people while other
people also show that behavior.
:
These theories include
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 This theory states that there is a degree to which
one believes that he/she is in control of one’s
destiny.
 This can either be internal or external
Internals :The internals believe that what
happens to them is a result of their internal efforts
whether it is good or bad.
Externals: These believe that whatever happens
to them is a result of external factors whether
good or bad.
Therefore , the theory contends that internals are
more successful in business than the externals.
B)Locus of control
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 This was propounded by Kets de Vries .
 This says that people tend to be self employed
and become successful because of “troubled
childhood”.
 This condition/situation occurs when a child has
been bought up in either of the following
conditions/situations : loss of one or both parents,
broken marriages , extreme poverty ,refugees
and child abuse.
 Therefore , growing in such an environment some
people do have repressed wishes towards those
in control.
C)Psychodynamic model:
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 This theory contends about one’s willingness to
accept risk .
 People who are more likely to accept risk and
taking chances are more likely of being self-
employed than those who do not take risk.
D)Risk taking propensity:
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 These theories suggest that entrepreneurial
behavior is a function of the individuals interaction
with a society.
 Sociological models that have received significant
empirical support are the inter-generation
inheritance of enterprise culture , social
marginality and ethnicity.
Sociological theories of
entrepreneurship
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 This theory suggest that individuals who perceive
a strong level of incongruence between their
personal attributes and the role they hold in
society will be motivated to change or
reconstruct their social reality . while some
people may reconstruct their reality by changing
careers or employers, others may choose self
employment.
 This situation gives way to the development of
unconventional patterns of behavior , which
increases their propensity to become
entrepreneurs.
A)Social marginality model:
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 An ethnic origin of a person is said to influence
the choice between paid employment and self
employment as well as performance in self
employment.
 Evidence of over-representation of certain groups
in business carriers abounds throughout the
world.
B)Ethnicity
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Thank you
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ENTREPRENEURSHIP
DEVELOPMENT CYCLE

Identification of an opportunity
Evaluation of the opportunity
Preparation of the business plan
Determination and organizing the resources
Management of enterprise
ENTREPRENEURSHIP
DEVELOPMENT CYCLE
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• First step in entrepreneual process.
• This may be done from his own idea or from
external sources like consumers and business
associates, members of distribution system,
independent technical organizations, consultants
etc.
• Consumers are the best sources of ideas.
• Some government organizations and R&D also
provide new ideas.
IDENTIFICATION OF
OPPORTUNITY
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To achieve proposed business opportunity, well
defined business plan need to be developed.
Business plan contains, title of project,
description of business and industry, technology
plan, financial plan, organization of plan,
production and marketing, distribution plan and
summary plan.
DEVELOPMENT OF BUSINESS
PLAN
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 Opportunity identified from sources must be carefully
screened and evaluated.
 Evaluation process involves looking at length of
opportunity.
 Length of opportunity and market size and shares are
two main aspects for deciding risk and gain or profits.
 SWOT(Strength, Weakness, Opportunities, and
Threats)analysis is a useful analysis tool.
 Strength and Weakness are internal factors related to
organization.
 Opportunities and Threats are external factors related
to environment and competition.
EVALUATION OF
OPPORTUNITY
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 Begins with assessment of present resources.
 Organizing the required resources at the
appropriate time is another important aspect of
entrepreneurial process.
 Alternative sources of supply, process of
manufacture, are to be planned.
DETERMINATION AND
ORGANIZING RESOURCES
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o After resources are acquired, the entrepreneur
must use them to implement the business plan.
o Operational problems of growing enterprise must
also be examined.
MANAGEMENT OF
ENTERPRISE
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ENTREPRENEURIAL
DEVELOPMENT MODEL

E-DEVELOPMENT MODEL
The models suggested for the
development of entrepreneurship fall in
The following categories:
 Psychological models
 Sociological models
 Integrated models
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Psychological models
 McClelland(1961) has given a significant lead in
identification of determinants of entrepreneurship.
 In his model ,he ascribes more importance to
achievement motives , which earlier related to child-
rearing practices. But in his recent book with D.G
Winter ,he has altered his earlier proposition on the
importance of child rearing as the intrinsic
determinant of the achievement motive.
6/28/2024
85 ECE, GNDEC Bidar

Psychological model
 Now, change in motivation is seen primarily as a
result of the ideological arousal of the latent need for
achievement among adults.
 After identifying achievement orientation as the key
variable in the development of entrepreneurship.
 McClelland suggests motivation-training program as
the policy measure ,which will make entrepreneurs
really willing and eager to exploit he new
opportunities provided.
6/28/2024
86 ECE, GNDEC Bidar

Psychological model:
 Everett Hagen’s theory of social change lays
emphasis on ‘creative personality’ as a casual link in
entrepreneurial behavior and ‘status withdrawal’ as
the determinant of the creative personality.
 Hagen elaborately explains the causal sequence of
entrepreneurial behavior.
 John Kunkel(1965) considered entrepreneurial
supply by suggesting a behaviorist model.
6/28/2024
87 ECE, GNDEC Bidar

Psychological model
 Kunkel model suggests that entrepreneurial behavior
is a function of the surrounding social structure ,both
past and present.
 Thus ,Kunkel model is based upon experimental
psychology ,which identifies sociological variables as
the determinants of entrepreneurial supply.
6/28/2024
88 ECE, GNDEC Bidar

SOCIOLOGICAL MODEL
 Frank.W.Young’s theory of entrepreneurship is a
theory of change based upon society’s incorporation
of relative sub-groups.
 The relativeness of a sub-group which has a low
status in a larger society will lead to entrepreneurial
behavior if the group has better institutional
resources than others in the soceity at the same
level.
6/28/2024
89 ECE, GNDEC Bidar

Sociological model
 Young’s model of entrepreneurship suggests the
creation of supporting institutions in society as the
determinant of entrepreneurship.
6/28/2024
90 ECE, GNDEC Bidar

INTEGRATED MODELS
T.V Rao(1975) in “entrepreneurial
disposition” has included the following
factors.
 Need for motive is the dynamic which for the
prospective entrepreneur, has the greatest possibility
of achieving the goals if one performs those
activities.
 Long-term involvement is the goal either at thinking
level or at activity level in entrepreneurial activity that
is viewed as a target to be fulfilled.
6/28/2024
91 ECE, GNDEC Bidar

Integrated model
 Personal ,social and material resources which, he
thinks are related to entry and success in the area of
entrepreneurial activity.
 Socio-political system to be perceived as suitable for
establishment and development of his enterprise.
6/28/2024
92 ECE, GNDEC Bidar

THANK YOU
6/28/2024
93 ECE, GNDEC Bidar

 Entrepreneurs are born, not
made
According to this ling-prevalent myth, the
characteristics of entrepreneurs cannot be taught
or learned, they are innate traits with which a
person must be born. Today, however, the
recognition of entrepreneurship as a discipline is
helping to dispel this myth. Like all disciplines,
entrepreneurship has models, processes and
case studies that allow the topic to be studied and
the traits acquired by training and development.
6/28/2024
95 ECE, GNDEC Bidar

 Entrepreneurs are academic
and social misfits
The belief that entrepreneurs are academically and
socially ineffective is born of some business owners having
started successful enterprises after dropping out of school or
quitting a job. In many cases such an event has been blown
out of proportion in an attempt to profile the typical
entrepreneur. Historically, in fact, educational and social
organizations did not recognize the entrepreneur. They
abandoned him or her as a misfit in the world of corporate
giants. Business education, for example, was aimed primarily
at the study of corporate activity. Today the entrepreneur is
considered a hero socially, economically and academically.
The entrepreneur is now viewed as a professional.
6/28/2024
96 ECE, GNDEC Bidar

 Entrepreneurs fit an ideal
profile
Researchers have presented checklists of
characteristics of a successful entrepreneur. These lists were
neither validated nor complete; they were based on case
studies and on research findings among achievement-
oriented people. Today we realize that a standard
entrepreneurial profile is hard to compile. The environment,
the venture itself, and the entrepreneur have interactive
effects, which result in many different types of profiles.
Contemporary studies being conducted at universities across
the world will, in the future, provide more accurate insights
into the various profiles of successful entrepreneurs.
6/28/2024
97 ECE, GNDEC Bidar

 All you need is money to be an
entrepreneur
It is true that venture needs capital to survive; it is
also true that the large number of business failures occur
because of lack of adequate financing. Yet having money is
not only bulwark against failure. Failure due to lack of
financing is often an indicator of other problems: managerial
incompetence, lack of financial understanding, poor
investments, poor planning, and so on.
6/28/2024
98 ECE, GNDEC Bidar

 All you need is luck to be an
entrepreneur
Being in “the right place at right time” is always an
advantage, but “luck happens when preparation meets
opportunity” is an equally appropriate adage. Prepared
entrepreneurs who seize an opportunity when it arises often
appear to be “lucky”. They are, in fact, simply better prepared
to deal with situations and turn them into successes. What
appears to be luck is really a combination of preparation,
determination, desire, knowledge, and innovativeness.
6/28/2024
99 ECE, GNDEC Bidar

 A great idea is the only
ingredient in a recipe for
success
A great idea may stay just that if it is not
backed by adequate finance, demand for the
product and, most importantly, good management.
Venture capitalists say bad management is the
main cause of failures among small businesses.
“The quality of management will determine the
success/failure of the venture”.
6/28/2024
100 ECE, GNDEC Bidar

 My best friend will be a great
business partner
Teaming up with your best friend just because you
share an idea and a drink every weekend may not be a good
idea. Sure, you may agree on most issues but
misunderstandings can erupt over insignificant aspects like
who should be in the office first, who’s in charge of
supervising the office staff and so on.
6/28/2024

 Having no boss is great fun
If you thought your boss was way too demanding,
watch out for your vendors, bankers, investors, suppliers and
customers. The owner of the restaurant delivery service we
met complaints that a client refused to pay for the order
because the restaurant did not put him pickles. Since
customers can make or break you, their wish often ends up
being your command.
6/28/2024

 I can make lots of money
When Summit Roy, a training consultant, quit his job
at Lintas and set up his own outfit called Univbrands in 1992,
he had to make quite few sacrifices. “For the first three
months I gave up my car and traveled by bus,” he says. For
most people it is years, not months, before the money starts
coming in. till that happens, you’ll have to miss the security of
your monthly pay cheque. Are you ready for that?
6/28/2024

 I’ll definitely become
successful
Put it down to plan optimism, egoism or a survival
strategy, but most business owners or even those starting off
on their own refuse to accept the possibility of failure. Don’t
believe those clichés about winners never quitting and
quitters never winning the number of people who fail are
legion, and it can happen to you as well.
6/28/2024

 Life will be much simpler if I
work for myself
Don’t believe it for one moment. Working
for yourself is definitely more strenuous then
working for others, at least when starting off. Take
for instance Dinesh Gupta. He set up Green
Investor’s Grievances Services two years ago to
take care of individuals stock related problems,
and has a punishing schedule even now. His
typical day starts at 5 a.m. and ends at 7 p.m.
6/28/2024

Thank You
6/28/2024

module 4 ENTREPRENEURSHIP and social.pptx

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