UNIT 1 INTRODUCTION 9Hrs.

Entrepreneurship - meaning, elements, determinants and importance of entrepreneurship and creative

behavior- Dimensions of entrepreneurship- Qualities of an Entrepreneur, factors influencing entrepreneurship

UNIT 2 ENTREPRENEURSHIP DEVELOPMENT 9Hrs.

Agencies - commercial banks district industries center- national small industries corporation Small
industries development organization small industries service institutions All India institutions IDBI-IFCI-
ICIIC-IRCBI.

UNIT 3 INCUBATION AND ACCELERATION 9Hrs.

Funding new venture - requirement availability and access to finance marketing technology and industrial
accommodation- -help groups concept-business
incubators-angel investors- venture capital and private equity fund.

UNIT 4 BUSINESS IDEAS 9Hrs.

Significance of writing the business plan/ project proposal - Contents of business plan/ project proposal -
Designing business processes location - layout operation - planning & control - preparation of project
report - Project submission/ presentation and appraisal by external agencies - financial/non-financial
institutions.

UNIT 5 MOBILISING RESOURCES 9Hrs.

Mobilizing resources to start up Accommodation and utilities preliminary contracts with the vendors-
suppliers-bankers-principal customers-contract management.
Max. 45Hrs
TEXT/ REFERENCE BOOKS
1. Kuratko and Rao, Entrepreneurship: A South Asian Perspective, Cengage Learning, 1st Edition, 2012.
2. Robert Hisrich, Michael Peters, Dean Shepherd, Entrepreneurship, Mc Graw Hill Education, 10 th
Edition, 2016.
3. Sangeeta Sharma, Entrepreneurship Development, PHI Learning Pvt. Ltd, 2017.
4. Holt David H, Entrepreneurship: New Venture Creation, Pearson, 2016.

1
COURSE OBJECTIVES
To orient the learner forward entrepreneurship as a career and creative thinking.
To gain the knowledge about the components and role of business houses.
To identify the sources of new ideas.

COURSE OUTCOMES
On completion of the course, student will be able to:
CO1 -Understand the nature of entrepreneurship.
CO2 -Describe the role of agencies in entrepreneurship promotion
CO3 -Build an entrepreneurial business idea
CO4 -Assess opportunities and constraints for new business ideas
CO5 -Identify funding opportunities
CO6 -Design strategies for successful implementation of ideas

2
Entrepreneurship - meaning, elements, determinants and importance of entrepreneurship
and creative behavior- Dimensions of entrepreneurship- Qualities of an Entrepreneur,
factors influencing entrepreneurship

INTRODUCTION
A businessman is a person who starts a business on an old concept or idea and makes his
place in the market with his efforts and dedication. Whereas a person who brings his unique
idea, creates the market for his own business to run a startup company is known as an
entrepreneur.

Concept of Entrepreneurship

An enterprise is created by an entrepreneur. The process of creation such an enterprise is

Entrepreneurship is a process of actions of an entrepreneur who is a person always in search

of something new and exploits such ideas into gainful opportunities by accepting the risk
and uncertainty with the enterprise.
The capacity and willingness to develop, organize and manage a business venture along
with any of its risks in order to make a profit.
It is an act of seeking investment and production opportunity, developing and managing a
business venture, so as to undertake production function, arranging inputs like land,

4
labour, material and capital, introducing new techniques and products, identifying new
sources for the enterprise.

Meaning of Entrepreneur

An Entrepreneur is an initiator, a challenger and a driver who creates new product/ service or does
normal things in a different way in the market which includes his Innovations or Creativity.
Entrepreneur in order to carry out his business/ project will start up and organize a venture/
enterprise to take benefit of an opportunity and, as the decision maker, decides what, where, when
and how much of goods or service to be produced/ distributed. Entrepreneur combines capital,
land, and labor to manufacture goods or provide services through the formation of a firm. In a
market full of uncertainty, it is the entrepreneur who can actually help clear up uncertainty, as he
makes judgments or assumes the risk. Entrepreneurship is high-risk, but also can be high-reward
as it serves to generate economic wealth, growth, and innovation.

5
Definition of Entrepreneur
According to economist Joseph Alois Schumpeter (1883-
necessarily motivated by profit but regard it as a standard for measuring achievement or

Characteristics of Entrepreneur
1. Creativity.
2. Professionalism.
3. Risk-taking.
4. Passion.
5. Planning.
6. Knowledge.
7. Social Skills.
8. Open-mindedness towards learning, people, and even failure.
9. Empathy
10. Customer is Everything

1. Creativity:
Entrepreneurs usually have the knack to pin down a lot of ideas and act on them. Not
necessarily every idea might be a hit. But the experience obtained is gold. Creativity helps
in coming up with new solutions for the problems at hand and allows one to think of
solutions that are out of the box. It also gives an entrepreneur the ability to devise new
products for similar m in.

2) Professionalism:
Professionalism is a quality which all good entrepreneurs must possess. An entrepreneurs
mannerisms and behavior with their employees and clientele goes a long way in

6
and discipline. Self-discipline enables an entrepreneur to achieve their targets, be organized
and set an example for everyone. Reliability results in trust and for most ventures, trust in
the entrepreneur is what keeps the people in the organization motivated and willing to put
in their best. Professionalism is one of the most important characteristics of an
entrepreneur.

3) Risk-taking:
Risk-taking ability is essential for an entrepreneur to discover something unique which makes all
the difference. entrepreneurs are always ready to invest their time and money. But, they always
have a backup for every risk they take. Also, evaluation of the risk to be undertaken is also

4) Passion:
Passion acts as a driving force, with which, entrepreneurs are motivated to strive for better. At the
beginning of every entrepreneurial venture or any venture, there are hurdles but passion ensures
that entrepreneurs are able to overcome these roadblocks and helps in attaining their goal. With
passion they are willing to put in those extra hours to make the business succeed because there is a
joy their business gives which goes beyond the money. Hence Passion is the most important trait
of the successful entrepreneur.

5) Planning:
Planning is the most important of all steps required to run a business with which every action
would be effective to attain goals. Planning is strategizing the whole game ahead of time. It
basically sums up all the resources at hand and enables to come up with a structure and a thought
process for how to reach the goal.

6) Knowledge:
Knowledge is the key to success. An entrepreneur should possess complete knowledge of his niche
or industry. It enables him to keep track of the developments and the constantly changing
requirements of the market that he is in. May it is a new trend in the market or advancement in

7
 He
should know what his strengths & weaknesses are so that they can be worked on and can result in
a healthier organization.

7) Social Skills:
Social Skills are also needed to be a good entrepreneur. Overall, these make up the qualities
required for an entrepreneur to function. Social Skills involve the following Relationship
Building, Hiring and Talent Sourcing, Team Strategy Formulation.

8)Open-mindedness towards learning, people, and even failure:

An entrepreneur must be accepting the true scenario or event happening that can be a useful
opportunity. To recognize such opportunities, an open-minded attitude is required. An entrepreneur
should be determined. He should face his losses with a positive attitude and his wins, humbly. A
good entrepreneur takes the experience of this setback and works even hard with the next goal in
line. This experience is inculcated through the process of accepted learning. Good entrepreneurs
know they can learn from every situation and person around them. Learning with an open mind
makes to look at faults humbly. Open-mindedness also enables you to know and learn from your
competition.

9)Empathy:
Perhaps the least discussed value in the world today is empathy or having high emotional intelligence.

the strengths and weaknesses of every employee who works under him. He must understand that
it is the people who make the business tick. For with empathy, an entrepreneur
can definitely reach the hearts of employees and the success he desires. Hence empathy is one of the
most important characteristics of an entrepreneur.

10)And lastly, the customer is everything:

A good entrepreneur will always know that a business is all about the customer. Grabbing a

8
customers. Personalizing a business for consumers will also boost the sales. The
ability to sell in front of a potential investment when it comes in the form of a customer is also required.
Being ready with the knowledge to please a customer, is a way to have a successful business.

FUNCTIONS OF ENTREPRENEUR

1. ENTREPRENEURIAL FUNCTION
a) Innovation:
Entrepreneurs play a vital role in driving innovation and value in the marketplace. The
entrepreneur is responsible for testing markets, inventing new markets and uncovering demands
within individual markets. The entrepreneur dynamic is fueled by creativity, competition and the
motivation to succeed within a society.

9
 b) Risk taking:

Risk-taking is the most important function of an entrepreneur. He has to pay to all the other factors
of production in advance. There are chances that he may be rewarded with a handsome profit or
he may suffer a heavy loss. Therefore, the risk-bearing is the final responsibility of an entrepreneur.

Organizing function of an entrepreneur:

This refers to bringing together the men, material, machine, money, etc. to execute the plans. The
entrepreneur assembles and organizes the above-mentioned different organs of an enterprise in
such a way that these combine start functioning as one, i.e., enterprise.

MANAGERIAL FUNCTIONS:
In simple words, management is getting things working with and through others. Managerial
functions are classified into 5
Planning:
In common parlance, planning is pre-determined course of action to accomplish the set objectives.
An entrepreneur has to make decisions as to what is to be done, how it is to be done, when it is to
be done, where it is to be done, by whom it is to be done and so on. The importance of planning
lies in the fact that it ensures the smooth and effective completion and running of a business
enterprise.
Organizing:
The organizing function of an entrepreneur refers to bringing together the men, material, machine,
money, etc. to execute the plans. The entrepreneur assembles and organizes the above mentioned
different organs of an enterprise in such a way that these combined start functioning as one, i.e.,
enterprise. Thus, organizing function of an entrepreneur ultimately provides a mechanism for
purposive, integrated and co-operative action by many people in a joint and organized effort to
implement a business plan.

Staffing:
Staffing involves human resource planning and human resource management. Thus, staffing

10
personnel, sources of manpower recruitment, their selection, remuneration, training and
development and periodic appraisal of personnel working in the enterprise.
a) Directing:
The directing function of entrepreneur actually starts the setting up of enterprise. Under the
directing function, the entrepreneur guides, counsels, teaches, stimulates and activates his/ her
employees to work efficiently to accomplish the set objectives. Thus, directing function of
entrepreneur concerns the total manner in which an entrepreneur influences the actions of his / her
employees/ workers. It is the final action of an entrepreneur in making his / her employees actually
act after all preparations have been completed.
b) Controlling:
Controlling means to see whether the activities have been performed in conformity with the plans
or not. Thus, controlling is comparison of actual performance with the target or standard
performance and identification of variation between the two, if any, and taking corrective measures
so that the target is accomplished.

2. PROMOTIONAL FUNCTIONS:
a) Identification and Selection of Business Idea:
Every intending entrepreneur wants to start the most profitable and rewarding project. The
intending entrepreneur, based on his /her knowledge, experience, and information gathered from
friends and relatives, generates some possible business ideas which can be examined and pursued

Then, the generated ideas are analyzed in terms of costs and benefits associated with them. Having
made cost-benefit analysis of all the ideas, the most beneficial idea is finally selected to be pursued
as business enterprise.
b) Preparation of Business Plan or Project Report:

proposes to take up which is an operating document. The preparation of business plan would be
very much useful for the entrepreneur to establish his / her enterprise in an effective and smooth
manner. Also, it helps the entrepreneurs who intend to apply for financial assistance from the
financial institutions and banks for their enterprises

11
Requirement for Finance:
The entrepreneur prepares requirement for funds with its detailed structure. The financial
requirement is also classified into short-term and long-term separately. Then, the sources of supply
to acquire the required fund are also mentioned. How much will be the share capital in terms of
equity and preference shares and how much will be borrowed capital from different financial
institutions and banks are clearly determined.

COMMERCIAL FUNCTIONS:
Production / Manufacturing:
Once the enterprise is finally established, it starts producing goods or offering services, whichever
be the case. Production function includes decisions relating to the selection of factory site, design
and layout, types of products to be produced, research and development, and design of the product.
The ancillary activities include production planning and control, maintenance and repair,
purchasing, store-keeping, and material handling. The effective performance of production
function, to a large extent, depends on the proper production planning and control.
Marketing:
All production is basically meant for marketing. Marketing is the performance of those business
activities that direct the flow of goods and services from producer to consumer or user. Thus,
marketing essentially begins and ends with the customers. The success of marketing function is

product, price, promotion, and physical distribution. Of late, 3 more Ps namely, packaging, people,
and process are

Accounting:
The main objective of any business enterprise is to earn profits and create wealth. Whether the
business is fulfilling its objective or not is ascertained through accounting. Thus, accounting
involves a process consisting of four stages namely recording the transactions, Classifying the
Transactions, Summarizing the Transactions, Preparing the Final Accounts and Analysing and
Interpreting the R

12
CLASSIFICATION/TYPES OF ENTREPRENEURS
A. BASED ON FUNCTIONAL CHARACTERISTICS -

Innovative entrepreneur
An innovative entrepreneur is one who introduces new product, new service or new market.
An innovative entrepreneur is also known as modern entrepreneur. An innovative
entrepreneur can work only when a certain level of development is reached. These
entrepreneurs introduce new changes and develop the business after a certain level of
development is reached. They invent new products. Such kind of entrepreneurs can be seen
in developed countries, as large sum of money can be diverted towards research and
development purposes.

Adaptive entrepreneur
Adaptive entrepreneur is one who adopts the successful innovations of innovative
entrepreneur. These entrepreneurs imitate the techniques and technologies innovated by
others. These entrepreneurs can be seen both in underdeveloped and developing countries.
They also make small changes in relevance to their market environment.

Fabian entrepreneur
A Fabian entrepreneur is one who responds to changes only when he is very clear that
failure to respond to changes would result in losses. Such entrepreneurs do not introduce
11
13
new changes. They also do not desire to adopt new methods. They are very shy and stick
to old customs. They are very cautious.

Drone entrepreneurs
Drone entrepreneurs do not make any changes. They refuse to utilize the opportunities and
may also suffer losses. They are very conventional. They refuse to introduce changes. They
even make losses but avoid changes. Sometimes they may be pushed out of the market.

B. BASED ON THE TYPE OF BUSINESS

1. Business Entrepreneurs
2. Trading Entrepreneurs
3. Industrial Entrepreneurs
4. Corporate Entrepreneurs
5. Agricultural Entrepreneurs
6. Retail Entrepreneurs
7. Service Entrepreneurs
8. Social Entrepreneurs.

Business entrepreneurs
Business entrepreneurs we those who conceive an idea to for a new product or service and
then create a business to convert their ideas into reality. These entrepreneurs may be found
in small business units or big enterprises. They concentrate both on production and
marketing activities. Example: A Printing Press, bakery or a textile unit.
Trading entrepreneurs
Trading Entrepreneurs are those who undertake trading activities. These entrepreneurs do
not concentrate on manufacturing activities. They give more emphasis on distribution and
marketing of goods. They identify potential markets, create demand for the product and
influence people to buy the product. Example: Agents and Wholesalers.
Industrial entrepreneurs
Industrial Entrepreneurs are those who concentrate in industrial and production activities.
They identify the needs of the customers and manufacture a product according to their
14
needs. They are generally a product-Oriented entrepreneur. Example: A manufacturer of
Automobile spare parts, computer accessories.
Corporate entrepreneur
Corporate entrepreneurs are those who exhibit innovative skills in organizing and
managing corporate undertaking. Example: A Trust registered under the Trust Act.
Agricultural entrepreneur
An agricultural entrepreneur is one who concentrates on agricultural activities. These
entrepreneurs concentrate on activities like raising agricultural production, marketing of
fertilizers etc.

Retail entrepreneurs
Retail entrepreneurs are those who undertake trading activities. They have direct contact
with customers and hence they are customer oriented. Example: An entrepreneur running
a departmental store
Service entrepreneur
A service entrepreneur is one who provides services to customers. They make profit by
rendering services. Example: An entrepreneur running a hotel or dry cleaning unit.

Social entrepreneur
A social entrepreneur is one who provides importance to the society by serving them. He
concentrates on social issues and does not aim to make profit. Example: A person running
an orphanage.
C. BASED ON THE STAGES OF DEVELOPMENT
1. First Generation Entrepreneurs
2. Modern or Innovative Entrepreneurs
3. Classical Entrepreneurs
4. Inherited Entrepreneurs
1. First generation entrepreneur
A first-generation entrepreneur is one who sets up an enterprise by his innovative skill. He
combines various factors of production and provides marketable product or services by
adopting innovative ideas. He is the first person to start an enterprise on his own.
15
Though such a person may have the family background of some business, such
entrepreneurs may also establish a certain business which may be unrelated to their family
business.
2. Modern entrepreneurs or innovative entrepreneurs
A modern entrepreneur is a dynamic entrepreneur. He always looks for changes and
responds to the changing demand of the market. His business ventures suits the current
marketing needs.
3. Classical entrepreneur
Classical entrepreneur is a stereo type entrepreneur. He aims at maximizing profits at a
consistent level. There may or may not be an element of growth. Survival of the firm is
given more importance by these entrepreneurs.
4. Inherited entrepreneurs
These entrepreneurs have inherited family business or possess experience from their family
business. These entrepreneurs may like to diversify a little from their family business.
D. BASED ON MOTIVATIONAL ASPECTS
According to motivational aspects, entrepreneurs shall be classified as Pure Entrepreneurs,
Induced Entrepreneurs, Motivated Entrepreneurs and Spontaneous Entrepreneurs.

1. Pure entrepreneur
A pure entrepreneur is a person who is motivated by psychological and economic factors.
Entrepreneurial task is undertaken by them due to certain reasons. Ability to handle risk,
desire to enjoy better status, desire to get recognition in the society, thirst for making money
motivates a person to take up entrepreneurial activities.
2. Induced entrepreneur
Induced entrepreneurs are those who takes up entrepreneurial task due to the incentives
and subsides granted by the government. Financial and technical assistance provided by
the government motivates a person to start new ventures.

16
3. Motivated entrepreneur
They are motivated by the desire far their self-fulfillment. They emerge because of the
possibility of producing and, selling new products. They are also motivated by economic
factors.
4. Spontaneous entrepreneur
A person, turns out to be an entrepreneur, because of the natural talent vested in him. These
entrepreneurs have self-confidence and emerge as challengers. They take up
entrepreneurial activity in order to tap their talents. They have great self confidence in their
talent and are highly resourceful.
E. BASED ON TECHNOLOGICAL ASPECTS
1. Technical Entrepreneurs
2. Non-Technical Entrepreneurs
3. Professional Entrepreneurs.
1. Technical entrepreneur
A technical entrepreneur is one who concentrates more on production activities. He has got
sound technical knowledge. He utilizes his technical knowledge and demonstrates his
innovative capabilities. He is also known as technocrat.
2. Non-technical entrepreneur
A non-technical entrepreneur concentrates more on marketing activities. He tries to find
out new strategies for marketing goods. He also promotes his business by employing
various marketing methods.
3. Professional entrepreneur
Professional entrepreneur is a person who applies innovative ideas in setting up of a
business. He is interested in establishing the enterprises rather than managing it. Once the
business is established. the entrepreneur will sell the business to some one else.

Other Types of Entrepreneur

Mompreneur
New name created to describe a multi-tasking mother who can balance both the stresses of
running a home-based business as an entrepreneur, and the time-consuming duties of
motherhood at the same time.

17
Ecopreneur
Entrepreneur who creates and sells environmentally friendly products and services
including organic food, recycling efforts, or green construction.
Infopreneur
An infopreneur as "a person who gathers, organizes, and disseminates information as a
business venture or as a value-added service."
Founder
The entrepreneur who started a business. If multiple entrepreneurs were involved in the
creation of the company, they are referred to as the founders. The origin of the word is that
a founder originally meant a person who forges steel; similarly, the founder of a company
is forging the new entity.
Archangel
A well-funded and well-known angel investor with a successful history of financing
entrepreneurs or startup companies, who may lead a group of other angel investors in
financing promising business ventures. The term may also refer to a consultant retained by
a consortium of angel investors to research and evaluate investment opportunities.

INTRAPRENEUR - AN EMERGING CLASS

The term Intrapreneur was coined by Macrae (1982) and developed by Gifford Pinchot.
According to Gifford Pinchot, "Intrapreneur(s) are dreamers who do, those who take hands-
on responsibility for creating innovation of any kind within an organization".
An intrapreneur thinks like an entrepreneur looking out for opportunities, which profit the
organization.
Intrapreneurship is the successful adaptation of entrepreneurial attitudes and strategies
inside of bureaucratic organization. Process of implementation of start-up practices within
a large organization, producing valued innovation.

18
ADVANTAGES AND DISADVANTAGES OF INTRAPRENEURSHIP

Advantages Disadvantages

1 .Higher employee morale 1. Less glory

2. Better access to financial backing 2. Owners often kooks with suspicion

3. More and better people to look for help 3. Costs for experiments are not always

4. Access to information resources 4. No prompt recognition, incentives &

5. More marketing clout 5. Profits go to the company

6. Larger technology base 6. Discredit for failures

ENTREPRENEURSHIP
The term entrepreneurship simply means creation of business or starting of business. It is
the process of changing idea into commercial opportunities.

DEFINITION
In
time, money and effort to start a business and make it

knowledge base. Knowledge in entrepreneurship is a means to an end. Indeed, what

contributes knowledge in practice is largely defined by the ends, that is, by the pr
is considered less risky, if the entrepreneur is
methodical and does not violate elementary and well known rule

19
DIFFERENCE BETWEEN ENTREPRENEUR AND ENTREPRENEURSHIP

20
ELEMENTS OF ENTREPRENEURSHIP
Innovation:
The process of commercializing an invention is innovation In simple words, in business activity, novelty may take any
one or a combination of the following: a) new products; b ) new methods of production; c) new markets; d) new sources
of raw material; or e) new forms of organization
Innovation is a critical aspect of entrepreneurship. Entrepreneurs always try to create new and different values and get
satisfaction in doing so. They try to convert a material into a resource or, combine the existing resources in a new and more
productive manner. The act of innovation thus provides resources with a new capacity to create wealth.

Example

His start-up is a network of technology enabled budget hotels. This Gurgaon-based company, was founded by him in
2012. It is backed by Light speed Ventures, Sequoia Capital and Green Oaks Capital and has more than 700 hotels under
its brand. A college dropout who founded Oravel when he was 18 received its share of funding and accolades and later, he
rebranded it to OYO Rooms. He completed his higher schooling at St. Johns Senior Secondary School.

Motivation: l). It means the urge in an individual to achieve a particular

goal. In other words, it is the need to achieve that

21
motivates a person. You may find many people with sufficient financial resources and.
family support who are interested in independent ventures.

Example

brand in the consumer market. You may. be surprised to know that Ramachandra Gandhi
and Laxman Gandhi, the two brothers who founded the Vadilal empire, could not even
complete their school education. They started in a small way by selling homemade ice
cream in the city of Ahmedabad. Now, Vadilal is the largest ice cream company in the
country
How did they do it? They did not stop thinking big. They had the courage to do what they
wanted to. Entrepreneurial persons seek rewards or returns earned through their own efforts

Risk Taking: Risk-taking implies taking decisions under conditions where the reward on
a certain action is known, but the occurrence of the event is uncertain. While doing so, an
entrepreneur becomes responsible for the result of the decision. This responsibility
however cannot be insured against failure be aware that businessmen spend considerable
amount of time
Example
Imagine that you are a qualified pharmacist and that you have got a large sum of money
from your parents. Which of the following options would you choose? a) Invest in a bank
deposit with 8 per cent annual interest; b) Invest in a company with a possible return of 15
percent; c) Start a medical shop in your locality (because people there have to travel along
distance to get medicines) with a fairly good chance of marking an
22
immediate return of around 10 percent. (You are also aware that the business is sustainable
and can bring in more returns say 20,30 or 50% in future if you put in your time and effort);

Organization Building: According to Harbison entrepreneurship implies the skill to build

an organization. Organization building ability is the most critical skill required for

delegating responsibility to others.

Managerial-Skills and Leadership: According to Hoselitz,
managerial skills and leadership are the most important facets of
Entrepreneurship. Financial skills are only of secondary importance. He
Maintains that a person who is to become an industrial entrepreneur must have more
that he drives to earn profits and amass wealth.

Dimensions of entrepreneurship
Strategic orientation

This is first dimension of entrepreneurship in traditional definition of the entrepreneur as

ability to grab the opportunity or more creative or innovative and more favorably. In strategic
orientation, it describes a promoter is truly driven an opportunity and the factors the derive
company formulation strategy

Commitment to opportunity

This is a second dimension, it becomes clear that the definition of the entrepreneur as
creative or innovative is not sufficient, they should create the opportunity or grab it. The
promoter is willing to act in very short time frame and to chase an opportunity quickly.

23
 Commitment to resource

It is multi staged commitment with a minimum requirement of resources at each crucial

sage or at any decision point the attempts to create the maximum value by minimizing the set of
resources and accept the risk in process

Resource control

The main dimension is controlling resources. Entrepreneurs must learn to utilize by

efficient manner.

Management structure

Entrepreneurs must decide the management hierarchy the promoter need knowledge
progress which is direct with principle characters as follow. In this system the based on the
relationship of resources with ownership and employment be organized in a hierarchy

Reward philosophy

At last, entrepreneurial companies are different administrative management philosophy

regarding compensation and reward every business follows the philosophy to focus on the
creating or gathering of values. According to startup situation the founders as well as investors
themselves have invested in cash in company and want returns as soon as possible

24
COMPARISON OF MANAGERS, INTRAPRENEURS AND ENTREPRENEURS

Features Managers Entrepreneurs Intrapreneurs

Promotion and other Independence and

Primary traditional corporate Independence, ability to advance
Motive rewards, such as opportunity to create, with the corporate
office, staff, and and money rewards
power.

Short-term-meeting Between
quota and budgets; Survival and entrepreneurial and
Time weekly, monthly, achieving 5-to 10- traditional managers,
orientation quarterly, and the years growth of a depending on urgency
annual planning business to meet the self-
horizon. imposed and
corporate timetable.

Delegates and
Activity supervises more than Direct Involvement. Direct involvement
direct involvement. more than delegation.

Risk Careful Moderate risk-takers Moderate risk taker

Not concerned with

Concerned with status No concern with
traditional status
Status symbols. status symbols.
symbols- desires
independence.

Failure and Tries to avoid Deals with mistakes Attempts to hide risky
Mistakes mistakes and and failures projects from view
surprises until ready

25
 Usually agrees with Able to get others to
Decisions those in upper Follows dream with agree to help achieve
management decisions. a dream.
positions.

Who serves Others Self and customers Self, customers, and

sponsors

Family members Entrepreneurial small Entrepreneurial

Family history worked for large business, small-business,
organizations. professional, or farm professional. or firm
background background

Relationship hierarchy as a basic Transactions and Transactions within

with others relationship deal-making as the hierarchy
basic relationship

Intrapreneurship is the entrepreneurship within the organization undertaken by the working

people for making the organization competitive and sustainable in the present market and
open economy Entrepreneurship and Intrapreneurship sound similar but they have got the
difference in their meaning and significance.
In this context, we can show the differences between these two concepts in the following
bifurcated manner;

26
DIFFERENCES BETWEEN ENTREPRENEURSHIP AND INTRAPRENEURSHIP

Points of Intrapreneurship Entrepreneurship

difference

Definition Intrapreneurship is the Entrepreneurship is the

entrepreneurship within an dynamic process of
existing organization. creating incremental
wealth.

Core objective To increase the competitive To innovate something

strength and market new of socio-economic
sustainability of the value.
organization.

Primary Enhance the rewarding Innovation, financial

motives capacity of the organization gain tad independence.
and autonomy.

Activity Direct participation, which Direct and total

is more than a delegation of participation in the
authority. process of innovation. _

Risk Hears moderate risk. Bears all types of risk.

Status Organizational employees The free and sovereign

expecting freedom at work.
with status.

27
Failure and Keep risky projects secret Recognizes mistakes and
mistakes unless it is prepared due to failures to take new
high concern for failure and innovative efforts.
mistakes.

Decisions Collaborative decisions to Independent decisions

execute dreams. to execute dreams.

Whom serves Organization and Customers and

intrapreneur himself. entrepreneur himself.

Family May not have or a little Professional or small

heritage professional post. business family
heritage.

Relationship Authority structure A basic relationship

with others delineates the relation. based on interaction and
negotiation.

Time Self-imposed or There is no time-bound.

orientation organizationally stipulated
time limits.

The focus of On Technology and market. Increasing sales and

attention sustaining competition.

Attitude Follows self-style beyond Adaptive self-style

towards the given structure. considering Structure as
destiny inhabitants.

28
Attitude Strong self-confidence and Strong commitment to
towards hope for achieving goals. self-initiated efforts and
destiny goals.

Operation Operates from inside the Operates from outside

organization. the organization.

IMPORTANCE OF ENTREPRENEURSHIP/ BENEFITS OF ENTREPRENEURSHIP:

1. Development of managerial capabilities:
The biggest significance of entrepreneurship lies in the fact that it helps in identifying and
developing managerial capabilities of entrepreneurs. An entrepreneur studies a problem,
identifies its alternatives, compares the alternatives in terms of cost and benefits
implications, and finally chooses the best alternative.

This exercise helps in sharpening the decision-making skills of an entrepreneur. Besides,

these managerial capabilities are used by entrepreneurs in creating new technologies and
products in place of older technologies and products resulting in higher performance.

2. Creation of organizations:
Entrepreneurship results into creation of organizations when entrepreneurs assemble and
coordinate physical, human and financial resources and direct them towards achievement
of objectives through managerial skills.

3. Improving standards of living:

By creating productive organizations, entrepreneurship helps in making a wide variety of
goods and services available to the society which results into higher standards of living for
the people.

29