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ENTREPRENEURIAL DEVELOPMENT MODELS Agribusiness Management
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- 2. ENTREPRENEUR The termentrepreneur is derived from the French word entreprendre, which translates to "to undertake. "In the context of business, this refers to the initiation of a business. According to the Merriam- Webster dictionary, an entrepreneur is defined as an individual who organizes, directs, and takes risks in a business or enterprise. An entrepreneur can be described as "a person who establishes, organizes, and directs any enterprise, particularly a business, typically involving significant initiative and risk. Peter F. Drucker (1985) characterizes an entrepreneur as a person who continuously weeks change, responds to it, and leverages it as an opportunity. Innovation serves as a unique tool for entrepreneurs, enabling them to perceive change as an opportunity for launching another business or service.
- 3. ENTREPRENEUR Innovation servesas a unique tool for entrepreneurs, enabling them to perceive change as an opportunity for launching another business or service. An entrepreneur is often regarded as an innovator a creator of new ideas and business processes. Economist Robert Reich (2002) regards leadership, management skills, and team building as vital attributes of an entrepreneur. An entrepreneur can be described as "a person who establishes, organizes, and directs any enterprise, particularly a business, typically involving significant initiative and risk.
- 4. ENTREPRENEUR Entrepreneurship is oftendefined as "the ability and desire to develop, organize, and manage business activities and associated risks for profit“. The realm of entrepreneurship is influenced by a variety of combinations of socio-economic, psychological, cultural, and additional factors, including caste/religion, family background, educational level, level of insight, professional experience, migration capabilities, entrepreneurial spirit, nature of the business, investment capacity, and ambition/moderation.
- 5. ENTREPRENEUR It isan effort to generate value by identifying business prospects. Essentially, it involves communication and management actions to mobilize financial and physical resources. A business may function within a corporate ecosystem, which frequently encompasses. Government initiatives and services that encourage entrepreneurship and assist entrepreneurs and startups. Organizations that are not part of the government, such as small business associations and groups that offer advice and support to entrepreneurs (e. g. through business centers or online platforms).
- 6. ENTREPRENEUR Advocacy groupsfor small businesses that campaign towards government to enhance support for entrepreneurship programs and to promote laws and regulations that benefit small businesses. Commercial tools and facilities (e. g., business incubators and seed funding boosters). Programs for entrepreneurship education and training provided by schools, colleges, and universities. Funding options (e. g., bank loans, venture capital funds, and grants from public and private sources).
- 7. Relationship Between Small Businessand Entrepreneurship The word "entrepreneur" is frequently mistaken for or used as a synonym for "small business. " While the majority of entrepreneurial ventures begin as small businesses, not every small business can be classified as an entrepreneur in the genuine meaning of the term. Numerous small businesses operate as sole proprietorships with just one owner or a handful of employees, and many of these small businesses provide a pre-existing product, process, or service and do not aim to expand. In comparison, entrepreneurship provides a creative product, procedure, or service, and the entrepreneur generally aims to grow the business by hiring more staff, pursuing overseas sales, and so forth, a process supported by venture capital and angel funding. An effective entrepreneur possesses the capability to steer the business in a beneficial direction through adequate planning, adjust to shifting circumstances, and recognize their strengths and weaknesses.
- 8. Entrepreneurial Characteristics • Desireto succeed • Leadership • Vision • Communication Skills • Technical Knowledge • Diligent • Novelty • Perseverance • Independence • Confidence • Reasonable Risk • Flexibility
- 10. Based on Ownership 1)Founders / Pure Entrepreneur 2) Second Generation Family Business Operator 3) Franchises 4) Owner - Manager
- 11. Based on Personality 1)Innovator – Designer 2) Induced Entrepreneur
- 12. Based on Ownership 1)Industrial Entrepreneur 2) Commercial Entrepreneur 3) Entrepreneur 4) Agricultural Entrepreneur 5) Social Entrepreneur
- 13. Role of Entrepreneurs Therole of an entrepreneur in contemporary production resembles that of a theater director. Current economic growth is intricately linked to production, which is inherently complicated. The involvement of an entrepreneur in today's economic progress encompasses at least three dimensions: The entrepreneur organizes various factors of production. This entails collecting factors and guaranteeing the optimal combination of them for the production process. The entrepreneur assumes risks. This is a crucial responsibility for an entrepreneur, since the level of profit he earns is directly related to his own risks. Risks are typically founded on demand prediction. Lastly, the entrepreneur brings about innovation. Innovation is distinct from invention. Invention refers to the work of scientists. Innovation involves the commercial use of an invention. As an innovator, the entrepreneur takes on the role of trailblazer and leader of the organization.
- 14. Importance of Entrepreneurship inEconomic Development • Employment Creation • Financial Independence • Promotes Capital Formation • Reducing youth unrest • Decay of Economic Power • Increase in national income • Balanced Regional Development • Developing backward and forward • Increase in standard of living linkage
- 15. Predictors of Entrepreneurial Success Method Market Team Company
- 16. Risk of Beingan Entrepreneur Operational Risk Strategic Risk Technological Risk Financial Risk Loss of Free Time
- 17. Factors affecting Entrepreneurship Development Economic •Capital • Labour • Market • Raw Material • Infrastructure Social • Family Background • Education • Political Support • Attitude of the Society Psychological • Motives • Need for Achievement • Respect for Status
- 18. Entrepreneurial Development Programme The EntrepreneurshipDevelopment Program (EAP) is a program that aims to help a person strengthen his entrepreneurial motivation and acquire the necessary skills and abilities so that he can function effectively as an entrepreneur. In other words, EDP concentrates mainly on fostering and promoting entrepreneurial abilities and the growth of a person into a successful entrepreneur. The business development program is made up of three general phases:
- 19. A. Initial Phaseor Pre-Training Phase 1. Tasks and arrangements required to initiate the training program; 2. Recognition and choice of possible entrepreneurs and initial encouragement 3. To find an appropriate company for a prospective entrepreneur.
- 20. B. Training ordevelopment phase In this stage, a training program is implemented to improve the motivation and ki of the participants. The objective of this phase is to bring about the necessary changes in the behavior of the trainees. Trainers must assess the degree and level to which the trainees have progressed in business..
- 21. C. Post-training orfollow-up phase This phase assesses the extent to which the program objectives have hem accomplished. Monitoring and subsequent steps will identify the deficiencies from previous phases and propose recommendations for future policy development. Support for infrastructure, guidance, and help in establishing a new enterprise and enhancing current operations may also be taken into account at this point.
- 22. C. Post-training orfollow-up phase The subsequent general steps in the monitoring and follow-up process: Establish and handle an individual file for every trainee A historical chart that illustrates the personal information of each entrepreneur and the work they conducted Contact each contractor and provide the requested information in a timely manner We regularly visit each entrepreneur to get the necessary guidance and assistance
- 23. Women Entrepreneurship A women'scompany is defined as a business that is owned and overseen by women, possessing a financial stake of at least 51% of the capital and offering women a minimum of 51% of the employment generated by the business. Sectors encouraged by women entrepreneurs in India typically include Agarbatti Making, Papadi Making. Embroidery, Handicrafts for Export, Batik Painting, Garment Making, Food Service, Restaurants, Snack Bars, Sweet Stalls, Soft Drink Stalls, and so on., Day Centres, Driving Lessons, Typewriter/ Express jobs, Florists and Dry- cleaning driving, making pickles, maintaining women's lodges, etc.
- 24. Women Entrepreneurship Women constituteapproximately fifty percent of the world's overall population. For tuany centuries, women were regarded primarily as homemakers. They restricted themselves to the confines of their homes and managed domestic tasks. However, now they have stepped beyond these limitations to engage in various activities. Women are afforded equal treatment in educational professions, healthcare facilities, and management sectors. Global data supports that women have achieved considerable success in numerous areas of endeavor, including academia, politics, administration and social work, among others. Now they have also started immersing themselves the industry and successfully running their own businesses. In western countries, men entrepreneurs engage in any activity they want, such as electronics, design, house building
- 25. Women Entrepreneurship But Indianwomen mostly take cheap and low value products like food (pickles, papa, meals) for embroidery, handicrafts, lunches etc. They do not possess talent and resources, family support, and a nurturing environment. Embrace challenges Consequently, the growth of women entrepreneurs in the nation is exceptional from the perspective of economic development.
- 26. Development Of Women Entrepreneurs Entrepreneurshiphas historically been a male-centric field, but the passage of time has altered that landscape and introduced women as notable and inspirational entrepreneurs today. In nearly all developed nations around the globe, women have entered the business world on equal footing with men. The typical earnings of women are less than those of men in the majority of countries. In terms of occupations, women are restricted to areas such as education, clerical work, nursing, and healthcare. It is uncommon for them to begin careers in sectors like engineering, business, and similar fields. Despite women constituting nearly half of the global population, their involvement in paid employment remains quite limited. There is a significant number of qualified women who are unable to join the workforce due to socio-cultural factors.
- 27. Women Entrepreneurs The inclusionof women in the business world is a relatively recent occurrence The businesses established by them tend to be mostly on a small scale. Women entrepreneurs refer to women or groups of women who initiate, organize, and oversee a business. Thus, a female entrepreneur embodies a self-assured, imaginative, and inventive woman who seeks financial autonomy while simultaneously generating employment opportunities for others... Definition of Women Entrepreneurs "An organization that is owned and governed by a woman possessing at least 51% of the financial stake and providing at least 51% of the jobs created to women" -IB Government of India.
- 28. Women Entrepreneurs Categories 1.Affluent Entrepreneurs 2. Pull Factors 3. Push Factors 4. Rural Entrepreneurs 5. Self Employed Entrepreneurs
- 29. Women Entrepreneurs -Traits 1. Imagination 2. Attribute to hard work 3. Persistence 4. Ability and desire to take task
- 30. Financial Assistance Women experiencechallenges when trying to obtain loans from banks and financial institutions to launch a business. To overcome this difficulty, financial institutions and hanks have special systems where financing for women entrepreneurs is available on favorable terms. Two such important schemes are the Small Industries Development Bank of India's Mahila Udyog Nidhi (MUN) scheme and the State Bank of India's Sree Shakti package.
- 31. Mahila Udyog Nidhi Thisis a special scheme that aims to bridge the capital gap when women with insufficient resources dare to set up their own units. The system is a refinancing system for state-owned financial companies and commercial banks. Funds allocated in the system are treated as equity when calculating the debt-to-equity ratio to meet the needs of lending institutions. The scheme offers a soft loan of up to 25 percent of the project cost up to Rs. 2.5 lakh per project at zero interest, but only one percent service fee is charged to cover the cost of the lending institutions. To get this help, the cost of the project should not exceed Rs. 10 lakhs. Women entrepreneurs who start new projects, expand, modernize, technologically update and diversify an existing unit, as well as re-establish viable sick manufacturing or service sector units can apply for assistance.
- 32. Stree Shakti Package Thisis a unique scheme of State Bank of India to support women entrepreneurship. Companies where women own more than 50 percent of the share capital can apply for it. Stree shakti package offers following benefits. The margin shall be reduced by 5 percent according to such type of industrial units If the loan amount exceeds Rs. 2 lakh interest was calculated at 0.5 per cent In small sector units, no collateral is required for a loan up to Rs. 5 lakhs The government has launched several programs to promote women's entrepreneurship, and the success of women's entrepreneurship education programs is better.
- 33. SHGs – SelfHelp Groups Self help groups (SHGs) are casual collectives pf individuals who unite to seek methods to enhance their living standards. These groups are typically self-managed and cantered on peer support. Individuals with comparable economic and social backgrounds often engage with the assistance of an NGO or governmental organization and strive to address their issues and better their living standards.
- 34. Functions of Self-HelpGroups They aim to enhance the abilities of the impoverished and marginalized communities for job opportunities and income-producing activities They provide unsecured loans to groups of individuals who typically struggle to obtain loans from banking institutions. They further mediate disputes through cooperative dialogue and shared leadership. They serve as a vital provider of microfinance services for the underprivileged They function as a conduit through which formal banking services are accessible to the poor, particularly in rural regions. hey additionally promote the practice of saving among low-income individuals
- 35. Need for SelfHelp Groups One of the primary causes of rural poverty is the restricted or nonexistent access to credit and financial services. The Rangarajan Committee Report pointed out four key factors for the absence of financial inclusion in India. They are • Lack of ability to provide collateral security • Low credit absorption capability • Inadequate reach of institutions • Fragile community network
- 36. Advantages of Self-HelpGroups • Financial Inclusion • Pressure Groups • Voice to marginalized • Alternate Source of income • Social Integrity • Banking Knowledge • Enhancing the efficiency of government schemes • Impact on healthcare & housing • Gender Equality
- 37. Steps in settingup an Enterprise 1. Search for business ideas 2. Idea processing 3. Idea selection 4. Choosing the business location 5. Business financing
- 38. Steps in settingup an Enterprise 6. Determine the legal structure of company 7. Obtaining a tax registration number 8. Obtaining business licenses and permits 9. Selection of personnel 10.Establishing a business
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- 40. The Psychological Models McClelland(1961) gave an important lead in identifying the factors affecting entrepreneurship. In his model, he considers achievement motivation, which was previously associated with parenting practices, as even more important. He changed his previous understanding of the achievement motive as an inherent factor, and now the change in motivation is seen primarily as a result of the ideological awakening of the latent need for achievement in adults. Having identified achievement orientation as a key variable in entrepreneurial development, McClelland proposes a motivational training program as a policy measure to make them truly ready and eager to exploit the new opportunities they offer Everett Hagen's theory of social change emphasizes "creative personality" as a causal link in entrepreneurial behavior and "status withdrawal as a determinant of "creative personality."
- 41. Hagen explains indetail the causal sequence of entrepreneurial behavior. But his business model does not provide political variables for business development. The regression of status would occur in the natural evolutionary process of society and under no circumstances. John Kunkel (1965) addressed the supply side of entrepreneurship by proposing a behavioral model. His model suggests that entrepreneurial behavior is a function of the surrounding social structure, both past and present, and can in fact be influenced by manipulated economic and social incentives. Thus, the model of Kunkel is based on experimental psychology, which identifies sociological variables as determinants of the provision of an entrepreneur.
- 42. The Sociological Models FrankW Young's entrepreneurial theory is a transformative theory rooted in the participation of reactive subgroups within society. In general, societal contexts, the re-engagement of a lower-status subgroup stimulates entrepreneurial activities when that group possesses superior institutional resources compared to their peers at an equivalent societal level. Young's model of entrepreneurship suggests that the establishment of societal support institutions serves as the key determinants of entrepreneurship.
- 43. The Integrated Models T.V. Rao (1975) proposed the framework for entrepreneurial development :
- 44. Entrepreneurial Disposition Factors affectingEntrepreneurial Disposition 1. Need for Motive 2. Long term involvement 3. Resources 4. Socio – political System
- 45. Five stages forsupporting small Entrepreneurship B. S. Venkata Rao (1975) 1. Stimulation 2. Identification 3. Development 4. Promotion 5. Follow up
- 46. Cycle for thepromotion and development for entrepreneurship M. M. P. Akhori (1977) 1. Stimulatory Activity 2. Support Activity 3. Sustaining Activity
- 47. Stages for economicgrowth K. L. Sharma (1978) 1. Engagement in manufacturing 2. Growth of business 3. Assumed stability in business 4. Dedication to ongoing growth
- 48. Models for corporate entrepreneurship RobertC and Michael J 1. The Opportunist 2. The Enabler 3. The Advocator 4. The Producers
- 49. Social Entrepreneurship Social Entrepreneursare people who are prepared to generate beneficial transformations way through their creative concepts and endeavors. They manage their business or organization to achieve their goals by helping society. Their motto when they start a business is mainly to help society and they have no great intention of making personal profit. Their success is not always measured by profit alone. Success is also a small change in society from their efforts.
- 50. Social Entrepreneurship Social entrepreneurshipis also referred to as altruistic entrepreneurship-which slates to selfless concern for the welfare of others. Numerous environmental and social issues out there and social entrepreneurs identify those problems and come up with innovative ways, and establish or adopt a business model around it. By presenting user-friendly and adaptable ideas to the local people, social entrepreneurs are generally looked up to as leaders or role models for driving philanthropic projects and bringing a large group of people to believe in their initiative. In the recent past, there have been many social entrepreneurs or philanthropists who have made immense success and proven to the public that not all needs of society are to be solved by the Government. Any person with a vision and the ability to bring change can do it.
- 51. Social Entrepreneurship Vinoba Bhave(India) was the leader and founder of the Land Gift Movement. He led to the redistribution of around 7,000,000 acres of land that later on helped the landless and untouchables of India. Dr. Maria Montessori (Italy) The Montessori approach to early childhood education was developed by her. Elon Musk, Tesla Motors, SolarCity, and SpaceX caused Musk to become an explorer of social entrepreneurship in the modern era, as he pursued to create solutions that are accessible to renewable energy and push the bounds on space exploration for the human race.Social entrepreneurship has similarities and distinctions when compared to the standard definition of entrepreneurship.
- 52. Importance of Social Entrepreneurs 1.Social impact and inspiration 2. Make the world a better place 3. Generation of social capital
- 53. Steps in settingup an Enterprise 1. Search for business ideas 2. Idea processing 3. Idea selection 4. Choosing the business location 5. Business financing
- 54. Factors that strengthssocial entrepreneurship 1. Project contributes to economy 2. Responsibility towards society and environment 3. Effective profit utilization 4. Efficiently managed
- 55. Types of Socialentrepreneurship 1. Non – profit Organization 2. Co-operative Societies 3. Social Enterprise 4. Community Project 5. Special purpose business
- 56. Characteristics of Social entrepreneurship 1.Achieve social change 2. Initiative innovative 3. Create value 4. Change agent 5. Feel satisfaction