Entrepreneurship, types, functions, life cycle of a business venture, Entrepreneurship development cycle, identification o potential entrepreneurs, barriers to entrepreneurship, characteristics of a entrepreneur

1. Dr. Rupasi Tiwari
Principal Scientist, IVRI, Izatnagar

2. » Need for Entrepreneurship
» Types of Entrepreneurship
» Functions of Entrepreneur
» Entrepreneurship Development Cycle
» Life cycle of a Business venture
» Strategies for ED
» Barriers to Entrepreneurship
» Identification of Potential Entrepreneurs

4. » Large country with surface area- 2.4 % of world’s total
» Population- 17.31% of world’s total which means one out of
six people on this planet live in India
» 2nd largest human population (1,220,200,000 i.e., 1.28
billion)
» With the population growth rate at 1.58%, India is predicted
to have more than 1.53 billion people by the end of 2030.
» In 2020 the average Indian will be only 29 years old
» HINDUSTAN to YOUNG-ISTAN (Maximum youth population)
» A great human resource in the form of its huge population

5. » Barriers in tapping down this potential efficiently
» The most important one: lack of skilled knowledge
in them
» The youths are not well groomed.
» Most of them are unskilled and hence
unemployed or under employed

6. » The unemployment in 2015 was
estimated to stand at 197.1 million and
in 2016 is forecast to rise by about 2.3
million to reach 199.4 million.
» An additional 1.1 million jobless will
likely be added to the global tally in
2017
» 12.7 per cent of the global youth labour
force will be unemployed in 2016
(ILO report World Employment and social
Outlook-2016 (WESO)

7. Current Unemployment Rate is 7.97%
• unemployment scenario in India is
characterised by underemployment and
disguised employment and huge
regional imbalances.
• Gujarat had lowest unemployment rate
in the country last year, while Sikkim
had the highest
(Labour bureau, 2013-2014 and
www.economictimes.com)
The current unemployment rate currently
stands at 7.97 percent
(New BSE index , 2016) at http://www.indiatvnews.com

8. » India is losing more than 2,000 farmers every single
day and that since 1991, the overall number of
farmers has dropped by 15 million (Sainath, 2013).
» Over the past few years, rural youth have been
shying away from agriculture (IFAD, 2012; Paisley,
2013).
» 263 million people (54.6%) are engaged in the
agriculture sector and over half of them are now
agricultural labourers (Census, 2011)
» The total agricultural workers is expected to decline
to 190 million by 2022 (expected decline of 33%).

9. • Demand for animal food products is responsive to income
changes, and is expected to increase in future
• Rural poverty is less in states where livestock contributes more to
farm income eg., Punjab, Haryana, Jammu and Kashmir, Himachal
Pradesh, Kerala, Gujarat and Rajasthan
• Mostly, marginal farmers and those who have quit farming are
joining the livestock business.
• About 70 per cent of the livestock market in India is owned by 67
per cent of the small and marginal farmers and by the landless.
• Prosperity is now more dependent on per capita livestock
ownership than on agricultural farms
• Global market for animal products is expanding fast, and there is
an opportunity for India to improve its participation in global
market
(Report of The working group On Animal husbandry & dairying 12th Five year plan(2012-
17)
Demand of livestock products and entrepreneurship

10. The only way answer:

11. Derived from French word Entreprendre means
“to undertake”.
Richard Carleton: “a person who buys
factors of production at certain prices in
order to combine them into a product with a
view to sell them at uncertain prices”
Considered as a risk bearer. Ex. Farmer pays
definite price for seeds, fertilizers, pesticides,
labours etc but not certain at which price he
could sell his produce.

12. J.B. Say: “one who combines the land of one, labour
of another & capital of yet another & thus produces
a product. By selling product pays rent, wages and
interest.”
Peter F Ducker: “One who considers the changes
that take place in market as an opportunity to do
business. Innovation is his tool.”
Joseph Schwnpeter: “Individuals who introduce
something new in the market or economy.”
 Niccolo Machiavelli: “Entrepreneurs are simply those who
understand that there is little difference between obstacle and
opportunity and are able to turn both to their advantage.”

13. » Truly new, novel and innovative ideas: 3-4%
» Rest 96%
˃ Enhancement -- improvement / refinement of features – cheaper,
better, faster, more user-friendly
˃ Extension to features-- Toothbrush with a built in toothpaste,Pen
with a torchligh, Mobile handset with camera, FM radio,MP3 player , Memory sticks
with MP3 players, Wristwatch with a calculator
˃ Specialization -- niche’ creation Low cost airlines (Ryanair,
Easyjet, Air Deccan), Boutique financial advisory services, Super-specialty
hospitals

14. Enhancements Extensions
Specialization

15. » Creation of new products
» Discovery of new geographical markets
» Creation or discovery of new raw materials
» New methods of production and organizing

16. TYPES OF ENTREPRENEURS
1. Based on functional characteristics :
a. Innovative entrepreneur : such entrepreneurs introduce new goods or
new methods of production or discover new markets or newly organise
their enterprise. Entrepreneurs in this groups are characterized by
aggressive assembly of information for trying new combination of
factors.
a. Imitative or adoptive entrepreneur : these people imitate techniques and
technology innovated by others. Entrepreneurs of this trait are reactive
in nature and are ready to adopt to innovation happening around.

17. c. Fabian entrepreneur : accept change only when they feel threatened that
failure to do so would result in losses. They are imitative by nature but
not determinant and also lack in power.
d. Drone entrepreneur : these are entrepreneur who refuse to accept to adopt
to changes adopted by the competitors. When competition increases they
are pushed out of the market as it becomes uneconomical for them to
carry their business further due to financial crisis.

18. 2. Based on development :
a. Prime mover : he is a person who moves in powerful sequence of
development, expansion and diversification of business.
b. Manager : these kind of entrepreneur do not initiate expansion or
innovation but believe in utilizing available resource in
organization and performing assigned activities to them.
c. Minor innovator : these set of entrepreneurs contribute to
economic progress by finding better use for existing resources.
d. Satellite : these are set of suppliers who provide business with
required resources and then move towards productive enterprise.
e. Local trading : these entrepreneur limit their products or service
to local market.

19. 3. Based on entrepreneur business :
a. Manufacturing : these are set of entrepreneurs who are into
production of products that will be sold in market using
resources and suppliers. E.g. Apparel, textile products.
b. Whole selling : these are set of entrepreneur who prove to
be supporting hand for producers they sell in goods
produced in production centre to middlemen in market.
c. Retailing : he is kind of entrepreneur one who sells goods
produced by companies directly to consumers.
d. Service : these are set of qualified entrepreneurs who are
specialized in particular field and render service to
customers

20. 4.Based on nine personality types of entrepreneurs
a. Improver : when entrepreneur continuously focuses on
development of business then he tends to improve overall
economy through development in business process.
b. Advisor : these are entrepreneurs who provide high level
assistance to customers in market. Main motto of these
entrepreneur is to provide vale addition information required by
customers.
c. Superstar : he is kind of person who tends to attract attention
through his charismatic features example CEO, MD of
organization.
d. Artist : these kind of entrepreneurs are reserve by nature but are
suitable for the jobs which require creativity such as web
designer.

21. e. Visionary : visionary entrepreneur are futuristic in nature, they will
have high degree of curiosity to understand changes happening in
world. They prefer taking initiative and like to be in line with
competitive environment.
f. Analyst : analyst entrepreneur is a person one who believes in
analyzing the existing and tries to maintain status quo and bring
improvement.
g. Fireball : entrepreneur running business which is composed of life,
energy, optimism and one who believes in bringing change by
changing mindset of customers. E.g. Ad agency.
h. Hero : these are kind of entrepreneurs who have ability to lead and
run their business through challenges.
i. Healer : these provide nurturing and harmony to the business. They
have an uncanny ability to survive and persist with an inner calm.

22. 5. According to use of technology :
a. Technical entrepreneur : strength of technical entrepreneur is the
technical knowledge of person. He possesses craftsmen skill in him
which he develops to apply and implements to develop technical aspect
of product.
b. Non technical entrepreneur : these entrepreneurs believe in coming up
with new strategies rather then concentrating technical aspect of the
product. His target is not to change the technology related to the product
but rather increase demand for product with effective strategies by
attracting customers.
c. Professional entrepreneurs : are the one who are interested in floating a
business rather then managing or operating the same.

23. 6. According to stages of development :
a. First generation entrepreneur : are those who do not possess any
entrepreneurial background. They start industrial unit by the means of
their own innovative skill.
b. Second generation entrepreneur : are those entrepreneur who inherit
family business firm and pass it from one generation to other.
c. Classical entrepreneur : is a stereotype entrepreneur who aims to
maximize his economic returns at every level consistent with the
survival of the unit but with or without element of growth.

24. 7. According to capital ownership :
a. Private entrepreneur : when an individual or group of people together
set up enterprise collectively bear profit and loss of company, and
adopting latest techniques in business are known as private
entrepreneur.
b. State entrepreneur : refers to trading or industrial venture undertaken
by the state or the government.
c. Joint entrepreneur : refers to combination of private and state enterprise
running the business by sharing resources with each other.

25. INTRAPRENEUR
Intrapreneur is the person who works within the
organization, utilizes the resources available within
the organization and tries to accomplish present task
in innovative and creative manner by effective
utilization of available resources.

26. “ The function of seeking investment & production
opportunities; organising an enterprise to undertake a new
production process; raising capital; hiring labour, arranging
for raw material, finding a site & combining these factors
of production into a going concern; introducing new
techniques, new commodities, discovering new sources of
natural resources & selecting top-managers for day-to-day
operations.”
-
By B. HIGGINS:

27. » India is ninth in the Global Entrepreneurship
Monitor (GEM) survey of entrepreneurial
countries
» It is highest among 28 countries in Necessity
based entrepreneurship, while 5th from the
lowest in opportunity based entrepreneurship.
» Entrepreneurship in India is basically necessity
based. Number of individuals taking
entrepreneurship as a career choice is much
lower as compared to forced entrepreneurs

28. 1. Govt. , Non Govt. and Supporting institutuions for
Entrepreneurship Development
2. Incubation Facility
3. Educational Programmes
4. Entrepreneurship Networks
5. Industry –Academia/ Institute-Industry interface

29. Government in country has come up with various institution for supporting
entrepreneurship. These are :
i) National institute for entrepreneurship and small business development (
NIESBUD )
ii) Entrepreneurship development institute in India ( EDII )
iii) National Institute of Small Industry Extension Training (NISIET)
iii) Indian Institute of Entrepreneurship (IIE)
iv) Small Industries Service Institutes (SISI)
v) Small Industries Development Organisation (SIDO)
vi) National Small Industries Corporation(NSIC)
vii) National Alliance of Young Entrepreneurs (NAYE)
viii) National Science and Technology Entrrepreneurship Development Board(
NSTEB)
ix) Innovative entrepreneurship development centers (IEDC)
x) Science and technology entrepreneurship development centres (STED)

30.  Nationalized Banks
 Co-operative Banks
 Small Industries Development Bank of India (SIDBI)
 Industrial Development Bank of India (IDBI)
 Industrial Credit and Investment Corporation of India (ICICI)
 State Financial Corporation (SFC)
 National Bank for Agriculture and Rural Development (NABARD)
 Khadi and Village Industries Commission.

31. 2. Incubation facility : premiere business schools and
technical institution in India have entrepreneurship
centres which provide incubation facility to start up
small scale unit. Incubator is facility designed to
assist start up companies with respect to providing
knowledge and technical assistance.
IVRI is the first Veterinary Business Incubator in the
World.

32. 1. Animal Nutrition
2. Animal reproduction
3. Medicine
4. Vermi Biotechnology
5. Livestock Products Technology
6. Animal Biotechnology Division
7. Bacteriology & Microbiology
8. Veterinary Public health
9. Biological products
10. Livestock Production management
11. Referral veterinary Polyclinic
12. IVRI Campus Bangalore
13. IVRI Campus Mukteshwar
Business Incubation Avenues
“ First Veterinary Business Incubator in the world”
Research
Education
Technology Transfer

33. 1. Centre for Innovation, Incubation&
Entrepreneurship (CIIE) - IIM Ahmedabad
 Set up in 2001
 Since inception CIIE has 15-odd innovations grow out of the
incubation centre in varied technologies
2. Society for Innovation and Entrepreneurship
(SIE)- IIT Bombay
 Set up in 2004
 It currently has 16 companies under its incubation programme

34. 3. Cell for Tech Innovation, Development &
entrepreneurship support- IIT Chennai
 Set up in 2000
 Organises national level competitions, ‘Breakthrough’ (general
business plan competition) and ‘Genesis’ (social
entrepreneurship plan competition)
4. Society for Innovation and Development (SID) -
IISc, Bangalore
 Set up in 2006
 The investigator is given a seed capital for Rs 20 lakh a year for
two years as soft loan for the approved plan

35. 5. The SP Jain Centre for Entrepreneurship
Development- SPJIMR
 16-week 'Start Your Own Business' programme-a public
programme held every six months.
6. Technology Business Incubator (TBI) - BITS Pilani
 In association with DST, BITS has established Technology
Business Incubator in the area of embedded systems and VLSI
design back in 2004
 So far, TBI has helped spawn ten companies.

36. 7. Technology Incubation and Entrepreneurial
Training Society (TIETS) – IIT Kharagpur
 Set up in 2005, So far, the institute has been able to incubate
two companies through ‘Concipio’ over the last three years.
Besides, an in house panel has helped 11-12 ventures take wing
8. Nirma Labs, Nirma University, Ahmedabad
 Established in 2004, Nirma Labs used to pride itself in a three-
step model for students who were interested to start their own
businesses-training, incubation and funding.

37. » The Agri-business Incubator (ABI) is a place where the
process of starting agri-business ventures is catalysed.
» This is by supporting entrepreneurs with agri technology,
consultancy, networking with management experts, venture
capital funding, marketing experts and physical
infrastructure.
» The incubator maximizes success by minimizing risk by
offering the best opportunity.
Objectives of ABI:
» Entrepreneurship Awareness
» Income Generation
» Policy Impact
» Profitable Enterprises
» Research Commercialization

38. » NIT, Calicut
» VIT, TBI, Vellore
» TBI, KEC, Erode
» TBI, Composites, B’lore
» NDBI, Ahmedabad
DST website: www.connectone.in

39. » Biocon Ltd and Indian School of Business (ISB)
have launched a cell for innovation
management.
» Hewlett-Packard (HP) India announced the
winners of the second annual edition of ‘HP
innovate 2009’. The award has been instituted
to recognise and reward outstanding creative
ideas of young engineering graduates in India

40. » Month long ‘Igniting Minds and Ideas’-IEEE
certification programme (by the Delhi based ISO certified
strategy consulting firm ‘Total Solutions Incorporation’ (TSI) and
‘Total Resource Academy of India (TRAIN)’ a knowledge
management , training and development organisation ) held for
students of Delhi Public School (DPS), R K
Puram.

41. » The Agri-Tech Investors Meet 2013 has
showcased ready-to-commercialize agri-
technologies from different sectors of
agriculture and their business potential. This
enabled start-ups or industries to avail
Technology Busineincubation support under the
22 NAIP- BPD’s in India.

42. The National Entrepreneurship Network (NEN) is a
network of academic institutions across India
performing research & developing and delivering
world-class education, skill-building programs,
networking activities and company-starting
assistance to new, high-growth entrepreneurs.

43. » NEN was launched in 2003 through an India-wide selection
process to select the Founding Partner Institutions to anchor
this network. The five NEN Partners are:
˃ Birla Institute of Technology and Science- Pilani
˃ Indian Institute of Technology- Bombay
˃ Indian Institute of Management- Ahmedabad
˃ Institute of Bioinformatics andApplied Biotechnology- Banglore
˃ S P Jain Institute of Management andResearch- Mumbai
» Goal:
˃ NEN’s goal is to launch 2,500 entrepreneurs who will create a minimum of
500,000 jobs by 2014.

44. » The ZTM_BPD unit of IVRI helps its registered members in
the following ways:
 Business Support Services
 Detail Project report (DPR)
 Market research
 Technology Based Entrepreneurship development
programme
 Market Linkages
» Registration Fees: Rs. 5000 for annual Membership and Rs.
25000 for life membership

45. 3. Educational programs :
» Entrepreneurship is becoming popular choice as
an elective in MBA programs at business schools
in India.
» In addition to educational programs there are
some business school which provide certification
programs and training to candidates intending to
start up their own business.

46. 4. Successful Entrepreneurs networks
» Refers to association formed by successful
entrepreneur where by becoming member of such
association fresher's will get some guidance and
assistance to start up their own business.
» E.g. TiE : the indus entrepreneurs was founded in
silicon valley in 1992 by successful entrepreneurs
and professionals in country.

48. Entrepreneurship
Development Cycle
1. Generating entrepreneurial
awareness in the community
through well planned publicity.
2. Identifying and selecting
potential entrepreneurs.
3. Helping them through training
to raise their motivational level.
4. Improving their skills in modern
management methods.
5. Developing technical
competence relevant to the
product selected.
6. Helping them to develop
project report.
7. Making available techno-
economic information and
project profiles.
8. Helping entrepreneurs to select
new products.
9. Developing a data bank on new
products and process available
to target group.
10. Creating forums for
entrepreneurs to discuss their
mutual problems and success.
11. Evolving new products and
processes available to the local
situation.
12. Public recognition of
entrepreneurial excellence.
1. Registration of the unit.
2. Arranging finance of any type and fixed capital on working capital.
3. Helping in purchase of plant and machinery.
4. Providing land, shed, power, water, etc. for establishing the unit.
5. Guidance for selecting and obtaining plant and machinery and layout.
6. Issue of licenses for scarce raw materials.
7. Granting tax relief and other types of subsidy.
8. Offering management consultancy.
9. Assisting in marketing the products either through reservation or assigning
government quota purchase etc.
10. Providing information related to the industry.
1. Helping in modernization /
products substitution.
2. Additional financing for full
capacity utilization.
3. Deferring repayment/interest
depending on the situation.
4. Help and guidance in
diagnosing the cause of
failure or low production.
5. Modification or change in
legislation/policy affecting
units.
6. Product reservation/creation
of new avenues for
marketing.
7. Quality testing and quality
improvement at low cost .
8. Creating common facilities
which are not feasible in a
single unit but are needed by
the unit both in production
and marketing organization.

49. Generating entrepreneurial awareness in the
community through well planned publicity.
Identifying and selecting potential entrepreneurs.
Helping them through training to raise their
motivational level.
Improving their skills in modern management
methods.
Developing technical competence relevant to the
product selected.

50.  Developing a data bank on new products and process available to target
group.
 Making available techno-economic information and project profiles
 Helping them to develop project report.
 Developing a data bank on new products and process available to target
group.
 Creating forums for entrepreneurs to discuss their mutual problems and
success.
 Evolving new products and processes available to the local situation.
 Public recognition of entrepreneurial excellence.

51. This includes all such activities that help entrepreneurs in establishing and
running their enterprises. The activities in this phase may include:
 Registration of the unit.
 Arranging finance of any type and fixed capital on working capital.
 Helping in purchase of plant and machinery.
 Providing land, shed, power, water, etc. for establishing the unit.
 Guidance for selecting and obtaining plant and machinery and
layout.

52.  Issue of licenses for scarce raw materials.
 Granting tax relief and other types of subsidy.
 Offering management consultancy.
 Assisting in marketing the products
 Providing information related to the industry.
These activities provide nurturance and remove many hurdles which are
likely to cause sickness or discourage the new entrepreneurs.

53. Activities in this phase are all those that help the entrepreneur
in continuous, efficient and profitable running of an
enterprise. The sustaining activities may include:
» Helping in modernization / products substitution.
» Additional financing for full capacity utilization.
» Deferring repayment/interest depending on the situation.
» Help and guidance in diagnosing the cause of failure or low
production.

54. » Modification or change in legislation/policy affecting
units.
» Creation of new avenues for marketing.
» Quality testing and quality improvement at low cost .

55.  Life cycle of entrepreneurial firms
˃ Birth stage
˃ Breakthrough stage
˃ Maturity stage
 Each stage poses different managerial challenges and
requires different managerial competencies.

57. STAGES IN ENTREPRENEURIAL PROCESS
Identify an opportunity
Establish vision
Persuade others
Gather resources
Create new venture, product or market
Change/ adapt with time

58. Identify an opportunity : is an first step towards
setting up an enterprise. Entrepreneur before
identification of an opportunity should do proper
market analysis about market situation, economic
conditions and understand taste preference of
customers.
Establish vision : is second step towards establishing
an enterprise. In the process entrepreneur is
required to establish long term vision and
accordingly plan in mission which will serve as
roadmap to achieve company vision. Objectives
established by entrepreneur should be flexible in
nature to adjust according to changing situation.

59. Persuade others : even though the idea of
entrepreneurship is initiated by individual person, it
requires team effort to covert an idea into reality.
Entrepreneur is required to convince skilled employees
to work on business plan, make investors and marketers
understand credibility of business to enhance status and
goodwill of company in business market.
Gather resources : next step towards entrepreneurship
requires gathering of required resources to start
business. Resources includes
a. Finance resources : it refers to getting required capital
through financial institutions, raising capital through
general public by issue of shares, raising required
finance though other resources such as self investment,
finance through family and friends.

60. b. Operating resources refers to tangible and intangible
resources which includes machinery, raw material,
company image, operating procedure,
transportation etc.
c. Human resources refers to skilled labour force in
organization and other decision in relation to
human resource such as training and development
of employees, decision to hire permanent or
temporary employees, amount of investment to be
made of human resource in organization.

61. d. Information resources : it is very important on part of
organization to collect information about
competitors, customers taste and preference, recent
development in area of business company will be
operating. The company has to maintain valid and
accurate management information system in order
to suffice to the information needs of company.

62.  create new venture : once the entrepreneur has
arranged in for resources mentioned above, next
step involves creation and establishment of new
venture. Which requires fulfilment of various legal
formalities.
Change and adapt with time : initial plan developed
by entrepreneur may not be suitable for long run. So
business plan is required to be updated on regular
basis to cope up with recent trends or updation in
market.

63. Innovation
Decline

65. Functions
of
entreprene
ur
Risk taking
Innovate
Analyze
opportunity
Strategies to
start venture
Develop
business
plan
Acquire
resources
Start venture
Develop
venture
Direct
activities of
firm
Supervise
and control

66. FUNCTIONS OF ENTREPRENEUR
1. Risk measurement and risk taking : risk taking and risk
measurement is the primary function of entrepreneur.
Risk are not only related to success or failure of
business but also involve personal and professional
career forgone for the sake of opportunity.
2. Innovate/ create/ discover : entrepreneurship is
innovativeness of individual and does not involve
ownership. Principal function of the entrepreneur is to
carry out new combinations of means of production.
3. Analyze opportunities : entrepreneur has to have
opportunity seeking style where he has to evaluate
credibility of various alternatives and choose suitable
alternative which will prove to be profitable in future.

67. 4. Strategies for venture : entrepreneur has to strategize
long term plan for starting venture. He has to analyze
the market and devise effective strategies to face present
and future competition.
5. Develop business plan : business plan is written
document containing details about every aspect of
proposed business venture. It provides roadmap to
employees working in company to attain objectives and
is capable of convincing potential customers they are
share holders and investors of company.
6. Acquire resources : entrepreneur has to acquire various
types of resources such as men, money, material,
machinery to start venture. Entrepreneur has to have
suitable skills to line up required resources for the
company.

68. 7. Organize and start venture : entrepreneur should be
a good organizer, he should deploy suitable
resources at right place in right time required to for
the company to ensure effective working of
organization.
8. Develop and grow venture : it is not only important
to start a venture but also company should be able to
respond to changes happening in the business
market which is crucial factor deciding existence of
company.

69. 9. Delegate, direct and lead the plan : during the
growth stage of the company entrepreneur should
provide required resources for the company and
during later stage entrepreneur should come up
with effective strategies to face competition and
guide employees in company performing role of
leader.
10. Supervise and control : for success of business it is
important to have suitable mechanism in place so
that entrepreneur can track overall success of the
company.

71. 1. Macro economic environment : macroeconomic
environment in which SSI operates is dependent on policies
of the government in supporting private participation in
business. Macro means large and it refers to various factors
existing in the environment which effect the working of
company. E.g. instability in government of country which
leads to change in legal legislation on continuous basis.
2. Legal and regulatory environment : Formal entrepreneurship
is formed by registration and licence procedure, commercial
and contractual laws, real estate regulations and laws. If the
administration procedure and laws are unclear, time
consuming and cumbersome then it proves to be barrier in
operation of SSI.
ENTREPRENEURSHIP AND ITS BARRIERS

72. 3. Corruption and unfair competition : a corrupt can
lead to unfair competition, which in turn can
become major hurdle to entrepreneurship activity in
country. Excessive approvals and regulations from
government required by entrepreneurs may make
the government officials corrupt they develop
attitude to take bribe for quicker completion of
work.
4. Financial obstacles : start up ventures are usually
dependent upon capital to be sourced from financial
institution. But it is general tendency of financial
institution to be reluctant in providing finance to SSI
rather then LSI as LSI given in more amount of
interest compare to SSI.

73. 5. Tax burden : in many regions government charges
tax to SSI at similar rate as to LSI which SSI cannot
afford to pay as the revenue generated by SSI is
comparatively less.
6. Challenges in attracting talent : to generate improved
quality of product in the company human resource
in company should be efficient in nature. It is
possible only when company is able to attract
efficient employee to join company, but candidates
these days expect in for higher salary which SSI
cannot afford to pay because of the same SSI has to
compromise with average candidates in the
company.

74. 7. Difficulty to source raw material : for timely
production of product in the market it is important
to have proper supply of raw material, but supplier
in market give second preference to SSI in market
compare to LSI as they order in bulk rather then SSI
in market.
8. Expensive to access proprietary technology : as
investment amount of SSI is industry is less they
cannot afford to do heavy investment in technology
which again has adverse effect on quality and
quantity of product produced by the company.

76. » Every participant must have a minimum level of
eligibility for developing into an entrepreneur.
» The entrepreneurial traits are broadly classified
into two groups:
» (I) Socio Personal Characteristics:
» (II) Human Resource Factors:

77. » (i) Age:
» Young people are more successful entrepreneurs because
the older people are more reluctant to take risky ventures.
» (ii) Education:
» A minimum level of education is essential.
» (iii) Family background:
» Family background helps in creating entrepreneurial
environment and occupational awareness for the
entrepreneurs. If an entrepreneur selects a trade which is
being carried in his family, it is obvious that he would be
more with it.

78. (iv) Size of family:
» The size and type of the family and status of entrepreneur in
the family are also important social personal characteristics.
In a joint family, entrepreneur may command little authority
but has generally a greater risk-bearing capacity as compared
to nuclear family.
(v) Working hands:
» A small entrepreneur has generally to depend upon family
members as he cannot afford to hire workers.
(vi) Social participation:
» Social participation determines the amount of influence of
entrepreneur outside his immediate family circle. The
successes of entrepreneur greatly depend upon the social
participation.

79. (i) Achievement Motivation:
» Achievement motivations include both personal achievement and social
achievement. It is the basis of entrepreneurship as entrepreneurs with
high need achievement succeed better.
(ii) Risk taking willingness:
» It refers to seeking challenge on one’s activity. Two persons may view the
same venture as involving different degree of risk. If both of them go for
the same venture, if means that the person perceiving greater amount of
risk in the venture has the higher risk-taking willingness.
(iii) Influence Motivation:
» It refers to the desire for influencing other people and the surrounding
environment. The entrepreneur would need sufficient motivation to both
influence them and control the means to achieve the end in order to
succeed in dealing with these diverse agencies and forces.
Being an entrepreneur requires specific characteristics and skills that are often
achieved through education, hard work, and planning.

80. (iv) Personal efficiency:
» It has been defined as the general sense of adequacy in a person. It is the
tendency of an individual to accept success or failures which are within
his control. It represents the potential effectiveness present at the inner
level.
» The roots of efficiency of an individual lie in his perceptions and beliefs
about himself. These beliefs may be the result of an individual’s self-
concept and perception of his own strength.
(v) Aspirations:
» Aspirations are goal statements concerning future level of achievement.
These can be regarded as a concept of individual of his future prospects
and as a form of self motivation.
(Vi) Identification of Enterprise:
» Once an entrepreneur is identified, it is necessary to identify a suitable
enterprise or project for him. The enterprise must be matched with the
potential entrepreneur. All the background information like his skills,
experience in the field, the physical resource available, family
occupation, etc. should be taken into consideration.

81. Perceptive
Entrepreneurs view problems as opportunities and challenges.
Curious
Entrepreneurs like to know how things work. They take the time and initiative
to pursue the unknown.
Imaginative
Entrepreneurs are creative. They imagine solutions to problems that
encourage them to create new products and generate ideas.
Persistent
True entrepreneurs face bureaucracy, make mistakes, receive criticism, and
deal with money, family, or stress problems. But they still stick to their
dreams of seeing the venture succeed.
81

82. Goal-setting
Entrepreneurs are motivated by the excitement of starting a new business.
Once achieved, they seek out new goals or ventures to try.
Hardworking
Entrepreneurs need a great deal of energy to see a venture start and succeed.
Yet they are not deterred by the long hours to achieve their goal.
Self-confident
Entrepreneurs believe in themselves. Their self-confidence takes care of any
doubts they may have.
Flexible
Entrepreneurs must be flexible in order to adapt to changing trends, markets,
technologies, rules, and economic environments.
Independent
An entrepreneur’s desire for control and the ability to make decisions often
makes it difficult for them to work in a controlled environment.
82

83. The Entrepreneurial Orientation Inventory
» Instructions: This inventory contains twenty pairs of statements.
In each pair, you may agree with one statement more than the
other. You have five points to distribute between the two
statements in each pair, to indicate the extent to which you
agree with each of the statements. You may distribute the five
points in any combination (0-5, 1-4, 2-3, 3-2, 4-1, 5-0). If you
agree slightly more than statement “a” than with “b”, then
assign three points to “a” and two points to “b”. If you agree
completely with “a” but do not agree at all with “b”, assign five
points to “a” and zero to “b”.
» You may not divide your points equally (i.e., 2.5) between the
two choices. You must choose one statement with which you
agree more and then distribute the points.

84. Q1
a. How successful an entrepreneur one will be
depends on a number of factors? One’s
capabilities may have very little to do with one’s
success. ............
b. A capable entrepreneur can always shape his or her
own destiny. ...........
Q2.
a. Entrepreneurs are born, not made.
...........
b. b. It is possible for people to learn to become
more enterprising even if they do not start

85. » Name
..................................................................................
................. Date ..........................
» Instructions: Transfer your point allocations from
the inventory form onto this scoring sheet.
» Inter Locus of Control
External Locus of Control
» 1 b .................................
1 a ..............................
» 2 b .................................
2 a ..............................

86. » Determine the ratios of your internal/external locus of control
scores by dividing the total internal score by the total external
score. Record the amount here...............................
» Internal/external ratios above 3.0 indicate a high level of
entrepreneurial internality; the chances are high that such
individuals will initiate entrepreneurial activities.
» Ratios below 1.0 indicate that the respondent has a more
external (less entrepreneurial) locus of control orientation.
» There is a need for this type of person to become more internal
in order to be able to initiate and sustain entrepreneurial
activities.
» Ratios above 1.0 indicate possible entrepreneurs. The higher
the ratio above 1.0, the more internal the respondent is.