Entrepreneurship Development

N.DHINAKARAN
ASSISTANT PROFESSOR OF ECONOMICS
VIVEKANANDA COLLEGE
TIRUVEDAKAM WEST
MADURAI DISTRICT -625234 TAMILNADU

Meaning:
1. The dictionary meaning of the word Entrepreneur is
given as a person who stars a business.
2. an Entrepreneur is who ready to take risk for to start a
business is called as entrepreneur
Definition:
1.According to Richard Cantillon , All person engaged in
economic activity are entrepreneurs.
2. According to J.B. Say “ An entrepreneur is the economic
agent who unites all means of production.

 Risk Assumption Function
 Business Decision Making Function
 Managerial Function
 Function of Innovation

According to Clarence entrepreneurs may be classified as
follows:
 Innovative Entrepreneur
 Adoptive or imitative Entrepreneur
 Fabian Entrepreneur
 Drone Entrepreneur
Arthur H. Cole classifies entrepreneurs as follows:
 1. Empirical Entrepreneur
 2.Rational Entrepreneur
 3.Cognitive Entrepreneur

Classifications According to types of Business
1. Trading Entrepreneur
2. Industrial Entrepreneur
3. Business Entrepreneur
4. Agricultural Entrepreneur
5. Retail Entrepreneurs
6. Service Entrepreneur
7. Social Entrepreneur
Classification According to Technology
1. Technical Entrepreneurs
2. Non- technical Entrepreneurs
3. Professional Entrepreneurs

Classification According to Motivation
1. Pure Entrepreneurs
2. Induced Entrepreneurs
3. Spontaneous Entrepreneurs
Other Classification
1. Copreneurs
2. Academic Entrepreneurs
3. Social Entrepreneurs
4. Netpreneur / Ontrepreneur

1. Coordinating Role
2. Agent’s Role
3. Role of Innovation
4. Risk Assumption Role
5. Imitating Role
6. Capital formation Role
7. Balancing Role
8. Status Transformation Role
9. Employment Generation Role
10. Export Promotion Role

Entrepreneur Manager
1. Owner: An Entrepreneur is the owner of
enterprise
1. Servant: A Manager is acting in the capacity
of a servant
2.Profit: An entrepreneur reward for Profit
which is highly uncertain
2. Salary: The reward for manager is salary
3.Full Risk Bearing: Entrepreneur has to take
all kinds of risk
4. No risk Bearing: As a Servant the manager
need not any risk
4.All functions: An entrepreneur has to
perform many functions
Managerial functions: A manager render only
managerial services
5.Innovator: an entrepreneur mainly acts an
innovator
Executor: a manager mainly acts as an executor
of plans prepared by entrepreneur.

Characteristics of successful Entrepreneurs
 Hard Work
 Business Acumen and sincerity
 Prudence
 Achievement Motivation
 Self – reliance and independence
 Highly Optimistic
 Keen Foresight
 Planning and organising Ability
 Innovativeness
 Risk Taking
 High Levels of Energy
 Maintenance of Public Relations
 Communication Skills

Meaning:
SWOT Analysis refers to identifying the
strengths, weaknesses, opportunities and threats
of an Organization.
 SWOT Analysis is a tool, often used by
organizations in planning its future.
 S - Strengths of the organization.
 W - Weaknesses.
 O - Opportunities of the environment.
 T - Threats

• Availability of necessary infrastructure.
• Adequate production capacity.
• Skilled manpower.
• Good manufacturing practices, quality assurance and quality control.
• Low cost of manufacture.
• Facilities for product and process development.
• Good location.
• Wide distribution network.
• Motivated staff.
• Liquidity.
• Position.
• Branding.
• Consistency in earning profits.
• Good corporate image.
• Efficient management.
• Philosophy and human resource development

• Rising cost of operations.
• Growing union pressures.
• Low level of motivation of staff.
• Non-availability of raw material.
• Scarcity of capital.
• Weak credit worthiness.
• Problem of under utilization of capacity.
• Outdated technology and Poor project planning.
• Inadequate infrastructure.
• Shortage of trained technicians.
• Insufficient managerial expertise.
• Lack of effective co-ordination.
• Inadequate training in skills.
• Feeble structure/poor organization.
• Problems of delegation of authority.

• Growing population.
• Increase in disposable income.
• Good monsoon.
• Easy availability of money.
• Availability of appropriate technology.
• Favourable government policies.
• Availability of different task environment like market
information, distribution Outlets and media.
• Presence of favourable cultural environment.

Threats of an Organization
 Rejection by the market.
 Recession
 Tough competition.
 Political instability.
 Fiscal policy resulting into increased taxes, duties,
imports reservations, and licensing.
 Technological obsolescence.
 Tight money market.
 High cost of raising finance.
 Difficulty of technical experts.
 Climatic changes.
 Changing customer tastes and preferences.
 Prolonged economic depressions.

1. Maslow’s Need Hierarchy Theory
2. McClelland’s Need Achievement Theory
1. Maslow’s Need Hierarchy Theory

1. Internal Factors
2. External Factors
1. Internal Factors
1. Internal Factors
1. Desire to do something new.
2. Become independent.
3. Achieve what one wants to have in life.
4. Be recognized for one’s contribution.
5. One’s educational background.
6. One’s occupational background and experience in
the relevant field.

1. Government assistance and support.
2. Availability of labour and raw material.
3. Encouragement from big business houses.
4. Promising demand for the product.

 Entrepreneurial Mobility means movement of
entrepreneurs from one location to another and
similarly from one occupation to another, which
affect the pace and pattern of entrepreneurship
development.
Factors Influence Entrepreneurial Mobility:
 Education
 Experience
 Availability of facilities
 Political conditions
 Size of enterprise

Meaning:
Entrepreneurship development programme is a structured
training program that can help you hone the abilities required
for successful setting up a business and kick-starting your
entrepreneurial journey.
Need for EDP
1. Improve their knowledge base about entrepreneurship trends
and opportunities
2. Develop their skills as an entrepreneur, innovator, and leader
3. Hone the attributes necessary for running successful
entrepreneurial ventures

Entrepreneurship Development

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