PROJECT MANAGEMENT

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ENTREPRENEURSHIP
UNIT 1
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ENTREPRENEUR
An entrepreneur is an individual who creates, develops, and manages a new business venture, taking on
financial risks in the hope of profit. Entrepreneurs are often seen as innovators, bringing new ideas, products,
services, or business models to the market. Their role is crucial in driving economic growth, creating jobs, and
fostering innovation.
CHARACTERSTICS OF ENTREPRENEUR
1. Innovation: Brings new ideas and improvements to the market.
2. Risk-Taking: Willing to take calculated risks for potential rewards.
3. Vision: Has a clear, long-term goal and strategic plan.
4. Leadership: Motivates and guides their team effectively.
5. Perseverance: Remains persistent and resilient despite challenges.
6. Adaptability: Adjusts to changing conditions and learns continuously.
7. Passion: Driven by enthusiasm and commitment to their venture.
8. Self-Motivation: Proactive and takes initiative independently.
9. Problem-Solving: Identifies and resolves issues effectively.
10.Networking: Builds and uses networks for support and resources.
11.Financial Acumen: Manages finances well, including budgeting and funding.
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12.Customer Focus: Prioritizes understanding and meeting customer needs.
DIFFERENCE BETWEEN ENTREPRENEUR AND ENTREPRENEURSHIP
Entrepreneur:
• Definition: An individual who creates, develops, and manages a business venture, taking on financial
risks in the hope of profit.
• Role: Innovator, risk-taker, leader, and decision-maker.
• Characteristics: Visionary, resilient, adaptable, passionate, self-motivated, and customer-focused.
• Focus: Personal actions and attributes that drive the creation and growth of a business.
Entrepreneurship:
• Definition: The process of designing, launching, and running a new business or enterprise.
• Scope: Involves activities such as identifying opportunities, securing funding, assembling a team, and
developing a business plan.
• Nature: Dynamic and ongoing process that includes innovation, risk management, and strategic
planning.
• Focus: Broader framework that encompasses the entrepreneurial activities and processes necessary
to establish and grow a business.
In summary,
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an entrepreneur is the person who undertakes the entrepreneurial journey, while
entrepreneurship is the process and activities involved in creating and managing a business.
CHARACTERSTICS OF ENTREPRENEURSHIP
The characteristics of entrepreneurship include innovation, risk-taking, proactiveness, vision and goal-
oriented approach, resource management, adaptability and flexibility, opportunity recognition, customer
focus, persistence and resilience, networking and relationship building, and learning orientation.
FEATURES OF ENTREPRENEURSHIP
The features of entrepreneurship include innovation, risk-taking, proactiveness, vision and goal-setting,
resource management, adaptability, opportunity recognition, customer focus, persistence, networking,
and a learning orientation.
PHASES OF ENTREPRENEURSHIP DEVELOPMENT
1.Exploration: Discovering potential business ideas and market opportunities.
2.Ideation: Refining concepts and creating a business plan.
3.Validation: Testing ideas and gathering feedback from stakeholders.
4.Launch: Establishing the business and starting operations.
5.Growth: Scaling the business and expanding market presence.
6.Maturity: Achieving stability and optimizing operations.
7.Exit: Exiting the business through sale, merger, or transition.
Each phase presents unique challenges and opportunities for entrepreneurs.
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SCOPE AND NEED OF ENTREPRENEURSHIP
Here's a concise summary of the scope and need of entrepreneurship:Entrepreneurship is essential for:
1.Economic growth through job creation, innovation, and wealth generation.
2.Driving innovation by introducing new products, services, and business models.
3.Creating jobs and reducing unemployment rates, especially in emerging sectors.
4.Fostering regional development by revitalizing local economies and attracting investment.
5.Addressing social and environmental challenges through social entrepreneurship.
6.Enhancing global competitiveness by adapting to changing market dynamics and driving innovation.
WHAT IN ENTREPRENEURIAL COMPETENCIES AND TRAITS
Entrepreneurial competencies and traits refer to the skills, characteristics, and qualities that individuals
possess or develop to successfully initiate, manage, and grow businesses. These include qualities like
creativity, risk-taking, resilience, adaptability, leadership, networking, financial literacy, problem-solving,
communication, and customer focus, among others. They enable entrepreneurs to navigate challenges,
seize opportunities, and drive innovation and growth in their ventures.

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MAJOR COMPETENCIES THAT LEAD TO SUPERIOUR PERFORMANCE OF ENTREPRENEURS
The major competencies leading to superior entrepreneurial performance include visionary leadership,
strategic thinking, innovative ,problem-solving, effective decision-making, adaptability, financial
management, networking, communication, customer focus, and continuous learning. These skills enable
entrepreneurs to navigate challenges, seize opportunities, and drive business success.
VARIOUS FACTORS AFFECTING ENTREPRENEUR DEVELOPMENT
1.Economic Factors: Access to capital, market conditions, infrastructure, and taxation policies impact
entrepreneurship.
2.Non-Economic Factors: Education, culture, social networks, and mentorship influence
entrepreneurial behavior.
3.Psychological Factors: Risk appetite, creativity, resilience, and determination are crucial for
entrepreneurial success.
4.Governmental Factors: Policy support, regulatory environment, access to resources, and political
stability shape the entrepreneurial ecosystem.
Each factor plays a vital role in fostering or hindering entrepreneurial development, ultimately influencing
economic growth and innovation.

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WHAT IS MOTIVATION
Motivation refers to the internal drive or desire that energizes and directs behavior towards a particular
goal or outcome. It's what compels individuals to take action, persist in the face of challenges, and strive
for success.
MOTIVATION FACTORS THAT INSPIRE ENTREPRENEURS
1.Passion and Purpose: Deep commitment to solving a problem or making a positive impact.
2.Autonomy and Independence: Desire for control over work and decision-making.
3.Achievement and Recognition: Pursuit of success and validation for efforts.
4.Growth and Learning: Opportunity for personal and professional development.
5.Financial Rewards: Potential for profitability and wealth creation.
6.Impact and Legacy: Desire to leave a lasting imprint on society.
7.Challenge and Excitement: Thrill of overcoming obstacles and taking risks.
8.Innovation and Experimentation: Freedom to explore new ideas and disrupt industries.

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McClelland's Achievement Motivation Theory
McClelland's Achievement Motivation Theory, proposed by psychologist David McClelland, focuses on
the individual's need for achievement (nAch) as a key driver of behavior. According to this theory, people
are motivated by their desire to accomplish challenging goals and experience a sense of
accomplishment. Here's a discussion of the theory
1.Need for Achievement (nAch): Individuals are driven by a desire to accomplish challenging goals and
experience success.
2.Characteristics of High Achievers: They prefer moderate difficulty tasks, set ambitious yet attainable
goals, and persist in the face of obstacles.
3.Influence of Achievement Motivation: nAch affects behavior in work, education, and personal life,
influencing entrepreneurship, innovation, and goal pursuit.
4.Cultural and Environmental Factors: Upbringing, education, and societal norms influence
achievement motivation levels.
5.Application in Management and Leadership: Understanding employees' achievement needs helps
in task design, goal setting, and fostering a culture of excellence and innovation.

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CONCEPTUAL MODEL OF ENTREPRENEURSHIP
The conceptual model of entrepreneurship provides a framework for understanding the process and
dynamics of entrepreneurial activities. It typically encompasses various stages, factors, and interactions
involved in the entrepreneurial journey. Here's a description of the key components:
1.Opportunity Recognition: Identifying market gaps or unmet needs.
2.Resource Acquisition: Obtaining necessary capital, skills, and support.
3.Venture Creation: Establishing the business structure and model.
4.Innovation and Differentiation: Developing unique offerings or approaches.
5.Market Entry and Growth: Attracting customers and expanding market share.
6.Risk Management and Adaptation: Navigating uncertainties and adjusting strategies.
7.Value Creation and Capture: Providing value to customers while generating revenue.
8.Impact and Sustainability: Contributing to societal and environmental well-being while ensuring long-
term viability.

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CONCEPTUAL MODEL OF ENTREPRENEURSHIP BY JOHN KAO
John Kao has developed a conceptual model of entrepreneurship in his article: Entrepreneurship, creativity and organisation
in 1989. This model has four main aspects
1. Entrepreneurial Personality: The overall success of a new venture largely depends upon the skill, qualities, traits and
determination of the entrepreneur.
2. Entrepreneurial Task: It is a role played by entrepreneur in an enterprise. The major task of the entrepreneur is to
recognize and exploit opportunities.
3. Entrepreneurial Environment: It involves the availability of resources, infrastructure, competitive pressures, social
values, rules and regulations etc
4. Organisational Context: It is the immediate setting in which creative and entrepreneurial work takes place. It involves
the structure, rules, policies, culture, human resource system, communication system.
According to Kao, the most successful entrepreneur is one who adapts himself to the changing needs of the environment and
makes it hospitable for the growth of his business enterprise

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DIFFERENCE BETWEEN ENTREPRENEUR AND INTRAPRENEUR

Aspect Entrepreneur Intrapreneur

Develops innovative ideas within an existing

Definition Starts and runs their own business
company

Ownership Owns the business Does not own the business

Autonomy Full control over decision-making Limited autonomy, reports to higher management

Lower personal financial risk, uses company

Risk High personal financial risk
resources

Environment Operates independently Operates within an existing organization

Build something new, achieve financial success, Innovate, create new products/services, advance
Motivation
gain recognition within company

Identifying market opportunities, securing Driving innovation, improving processes,

Scope of Work funding, building a team, developing business developing new business units/products within
strategies the company

Resources Secures own resources Utilizes company resources and infrastructure

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CLASSIFICATION OF ENTREPRENEURS
Based on Economic Development
1. Developed Economy Entrepreneurs:
1. Operate in advanced economies.
2. Focus on innovation and high-growth sectors.
2. Developing Economy Entrepreneurs:
1. Operate in emerging markets.
2. Tap into new opportunities and address local needs.
3. Underdeveloped Economy Entrepreneurs:
1. Operate in regions with limited economic development.
2. Focus on basic needs and essential services.
BASED On type of business
1. Agricultural Entrepreneurs:
1. Focus on farming and agribusiness.
2. Innovate in crop production and sustainable farming.
2. Manufacturing Entrepreneurs:
1. Engage in production of goods.
2. Improve production efficiency and supply chain management.

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3. Service Entrepreneurs:
1. Provide intangible products and services.
2. Operate in healthcare, education, finance, and hospitality.
4. Retail Entrepreneurs:
1. Sell goods directly to consumers.
2. Operate physical stores, online platforms, or both.
Based on Type of Technology Used
1. High-Tech Entrepreneurs:
1. Utilize cutting-edge technology.
2. Operate in IT, biotech, and advanced manufacturing.
2. Low-Tech Entrepreneurs:
1. Use minimal advanced technology.
2. Focus on traditional industries with manual processes.
3. Medium-Tech Entrepreneurs:
1. Incorporate moderate levels of technology.
2. Balance traditional methods and modern innovations.
4. Green-Tech Entrepreneurs:
1. Focus on environmentally sustainable technologies.
2. Innovate in renewable energy, waste management, and sustainable agriculture.
5. FinTech Entrepreneurs:
1. Innovate in the financial sector using technology.
2. Develop solutions for banking, payments, and financial management.

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Based on Business Approach:
1. Innovative: Create new ideas, e.g., Steve Jobs.
2. Imitative: Improve existing ideas, e.g., franchise owners.
3. Fabian: Cautious about change, e.g., traditional family businesses.
4. Drone: Stick to traditional methods, e.g., businesses resistant to digital transformation.

Based on Nature of Venture:

1. Small Business: Serve local markets, e.g., local retail stores.
2. Scalable Startup: Seek rapid growth, e.g., tech startups.
3. Large Company: Innovate within corporations, e.g., Google intrapreneurs.
4. Social: Focus on social value, e.g., TOMS Shoes.

Based on Motivations:
1. Lifestyle: Achieve desired lifestyle, e.g., travel bloggers.
2. Serial: Start multiple ventures, e.g., entrepreneurs in various industries.
3. Necessity: Start due to lack of options, e.g., entrepreneurs in developing economies.

Based on Industry:
1. Tech: Focus on technology, e.g., Bill Gates.
2. Retail: Sell goods directly to consumers, e.g., Jeff Bezos.
3. Manufacturing: Produce goods, e.g., Henry Ford.
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ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES
Entrepreneurial development programs are initiatives designed to foster and support entrepreneurship by
providing aspiring or existing entrepreneurs with the necessary skills, knowledge, resources, and
networks to start, manage, and grow successful businesses. These programs can take various forms,
including workshops, training sessions, mentorship programs, incubators, accelerators, and access to
funding opportunities.
OBJECTIVES
Entrepreneurship development programs aim to equip individuals with essential skills, facilitate
networking and access to finance, provide incubation support, offer mentorship, validate market ideas,
cultivate an entrepreneurial mindset, and contribute to job creation, economic growth, innovation, and
competitiveness.
DIFFERENT PHASES OF ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES
Entrepreneurship development programs typically encompass various phases to guide participants through the
process of ideation to business establishment and growth. These phases often include:
1.Awareness Phase: Introducing individuals to the concept of entrepreneurship, its benefits, and
potential challenges. This phase aims to inspire interest and encourage individuals to explore
entrepreneurial opportunities.
2.Education and Training Phase: Providing structured learning opportunities such as workshops,
seminars,
15 and courses to impart entrepreneurial skills and knowledge. Topics covered may include
3. Mentorship and Guidance Phase: Pairing participants with experienced mentors who provide
personalized advice, feedback, and support. Mentors often offer insights based on their own
entrepreneurial experiences to help navigate challenges and make informed decisions.
4. Idea Validation Phase: Assisting participants in validating their business ideas through market
research, feasibility studies, and prototype testing. This phase helps entrepreneurs assess the viability
and potential of their concepts before committing significant resources.
5. Business Incubation Phase: Providing support structures and resources such as co-working spaces,
access to mentors, networking opportunities, and shared services to help startups establish and grow
their businesses during the early stages.
6. Access to Finance Phase: Assisting entrepreneurs in accessing funding options such as grants,
loans, venture capital, or angel investment to finance their business ventures. This phase involves
guiding participants through the process of preparing investment pitches and connecting them with
potential investors or funding sources.
7. Scaling and Growth Phase: Supporting established businesses in scaling their operations, entering
new markets, and achieving sustainable growth. This phase may include advanced training, strategic
planning, access to specialized resources, and networking opportunities with industry experts and
potential partners.

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DIFFERENT TYPES OF SUCH EDP PROGRAMS LAUNCHED BY INDIAN GOVERNMENT
The Indian government has launched several entrepreneurship development programs (EDPs) to foster
a culture of entrepreneurship and support the growth of startups and small businesses. Some of the
notable types of EDP programs initiated by the Indian government include:
1.Startup India: Launched in 2016, Startup India is a flagship initiative aimed at promoting and nurturing
startups across the country. It offers various incentives, including tax benefits, funding support, and
simplification of regulatory processes, to facilitate the growth of startups.
2.Stand-Up India: This initiative, launched in 2016, aims to promote entrepreneurship among women
and Scheduled Castes (SCs) and Scheduled Tribes (STs) by providing them with access to financial
support and other resources to start and grow their businesses.
3.Pradhan Mantri Mudra Yojana (PMMY): PMMY, launched in 2015, provides collateral-free loans to
micro, small, and medium enterprises (MSMEs) through various financial institutions, including banks,
non-banking financial companies (NBFCs), and microfinance institutions (MFIs).
4.Skill India: Launched in 2015, Skill India aims to provide skill development training to millions of Indian
youth to make them job-ready and encourage entrepreneurship. It offers training programs across
various sectors, including manufacturing, services, and agriculture.
5.Atal Innovation Mission (AIM): AIM, launched in 2016, aims to foster innovation and
entrepreneurship among students, researchers, and entrepreneurs by establishing Atal Incubation
Centers (AICs), Atal Tinkering Labs (ATLs), and Atal New India Challenges (ANICs) across the country.
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6. MSME Support and Outreach Program: This initiative, launched in 2018, focuses on providing
support and assistance to micro, small, and medium enterprises (MSMEs) through various schemes,
including access to credit, technology upgradation, and marketing support.
7. National Entrepreneurship Awards (NEA): The NEA, launched in 2016, recognizes and celebrates
outstanding entrepreneurs and enterprises across various sectors, encouraging others to emulate their
success and contribute to the growth of the economy.
VARIOUS PROBLEMS FACED BY EDPS
• Access to Funding: Difficulty in securing adequate financing.
• Lack of Infrastructure: Inadequate physical and technological facilities.
• Limited Access to Markets: Challenges in reaching and penetrating markets.
• Skill Gaps: Insufficient training in essential business skills.
• Regulatory and Bureaucratic Hurdles: Complex regulatory processes and bureaucracy.
• Limited Access to Mentorship: Lack of experienced mentors and support networks.
• Risk Aversion and Cultural Norms: Stigma associated with entrepreneurship and risk aversion in
some cultures.

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