ENTERPRENEURAL DEVELOPMENT & BUSINESS ETHICS-Unit-1-Notes-Osmania University

1. ENTREPRENEUR
DEVELOPMENT
AND
BUSINESS ETHICS
PRESENTED BY
K.BALASRI PRASAD
B.Sc(KU), M.B.A(OU), NET(UGC)
ASSOCIATE PROFESSOR IN MANAGEMENT

2. Evolution of Entrepreneurship in India

3. History Of Entrepreneurship in India
 Indus valley civilization: organized enterprise at a time when the world just belonged
to clothe itself.
 The early years (1000 B.C-500 B.C): Indian trader introduced re-exporting bought silk
from Chinese and sold to central Asia. Bought horses from west Asians and sold to the
Chinese.
 The Gupta Era: (400 A.D – 600 A.D) - Traders from associations to protect interests
Codification of transnational business.
 The Middle ages-(700 A.D-1300 A.D): Paper, Printing invented. Dams, roads ease
trade, south –East Asia & indoasiea.
 The Mughal age (1500 A.D-1600 A.D): Dominated world commerce, large quantities
of gold and silver flow into the country.
 The Mughal Era II (1600 A.D-1700 A.D): British arrive in this era. The person named
Surat merchant virji Vora among first entrepreneurs.
 The colonial era I (1700 A.D-1850 A.D): Europe was then the hotbed of technological
innovation. The traders brought with them plenty of new ways of doing business. Seizing
the opportunities that emerged, many Indians became entrepreneurs.

4.  Entrepreneurship-Present Era: C.K.Prahlad, Fortune at the bottom of the―
pyramid states that the need for innovation in‖ entrepreneurship.
 Nation urges Entrepreneurs to Explore domestic opportunities
 To succeed, one need to continuous innovation & to have continuous innovation,
one need to tap thinking of every one in enterprise. Innovation plays a key factor in
an entrepreneurial quality.
 Importance of Innovation In entrepreneurship: The starter face toothache
and hick ups at the early stage ,where as existing business face different problems,
limitations, management problems and constraints in the market etc. Both the cases
it needs to learn many things and should be innovative for the survival in the
business market.

5. Forbes List of 10 richest Indian Women
Entrepreneurs
Rank Name Designation Company
1Chanda Kochhar Managing Director ICICI
2Vedika Bhandarkar Managing Director J.P. Morgan
3Anu Aga Chief Executive Officer HSBC Bank
4Indra Nooyi President PEPSI
5Meher Pudumjee Chairperson Thermax
6Kiran Mazumdar-Shaw Chief Executive Officer Biocon
7Anuradha Desai Chairperson
Venkateshwara
Hatcheries
8Sujjala Firodia Motwani Managing Director Kinetic Engineering
9Mallika Srinivasan Managing Director Tafe
10Vinita Bali Managing Director Britannia Industries

6. Entrepreneur
Acts upon
Opportunities
Innovates
Undertakes
RISK
Raises Capital
Takes
Decisions
Motivated
Welcomes
Change
Plans
Any individual who sees and acts upon an
opportunity. This includes introducing a new
product or service, identifying new markets, or
putting a twist on an existing product, process or
service.
Also, includes the raising of capital, taking the
risk and controlling the new venture. Embodies
creativity, aggressiveness, and determination.
By assembling various resources, s/he takes
risks and creates a venture from an idea, hobby,
or simply a dream

7. Entrepreneur
Person who undertakes the ‘risk’ of a new venture
Derived from French words,
Entre meaning ‘between’
Prendre meaning ‘to take’
Originally used to describe people who ‘take on the
risk’ between buyers and sellers or who ‘undertake’ a
task such as starting a new venture
An entrepreneur assembles and integrates all the
resources needed, the business model, the strategy, and
the risk bearing ability to transform an invention into a
viable business

8. FUNCTIONS OF AN ENTREPRENEUR
FARAHA LUGMAN
MA 41 & 42

9. Functions of an entrepreneurPersonal initiative
An Entrepreneur who has strong
personal initiative is able to act
immediately on available
opportunities and choose best
strategy when he faces a problem.
Initiative allows an Entrepreneur to
be alert and proactive.

10. Persuasion
Entrepreneur is persuasive and will be able to persuade his
customers to buy his products or services.
He has to persuade many people who have an impact on his
business such as staff, customers, suppliers and financial
institutions.

11. Identify Opportunities
Grabs or seize opportunities continuously to make sure that his
business sustains for a long time in the industry.
Focuses, identifies and exploits business opportunities.
Maximizes his thinking capacity by finding solutions to
problems faced by community.
Who is successful will be confident that there is a business
opportunity behind every problem.
10/7/2015

12. Feasibility study
Able to seek information, that is he has do some
research to obtain information and receive feedback
from customers in order to provide a good product or
service that can gain customers satisfaction and
acceptance.

13. Planning
 For arranging business strategies to achieve business goals.
Always focuses on the future and is sensitive towards any
change that occur.

14. Risk bearer
 Should necessarily act as a risk bearing agent.
• Risk due to the possibility of changes in the taste of
customers, change in fashion and technique of production
cannot be insured

15. Decision making
An entrepreneur has to decide the nature and
type of goods to be produced, the size of the
business, its location, technique of production,
type of employees etc.

16. Seth, S. (2014). 10 characteristics of successful entrepreneurs. Retrieved from http://www.investopedia.com/articles/personal-
finance/101014/10-characteristics-successful-entrepreneurs.asp
Characteristics of
Successful Entrepreneurs

17. #1 Passion &
Motivation
““Entrepreneurs love their work”Entrepreneurs love their work”
• Is there something you can work on over and over
again without getting bored?
• Is there something that keeps you awake because you
have not finished it yet?
• Is there something you have built and want to
continue to improve upon, again and again?
• Is there something you enjoy the most and want to
continue doing to the rest of your life?

18. #2 Risk Taking
“A true Entrepreneur knows that failing to attemptA true Entrepreneur knows that failing to attempt
something is a greater failure than trying and notsomething is a greater failure than trying and not
succeeding.”succeeding.”
• Successful entrepreneurs are willing to risk time and
money on an uncertain future, but also keep
resources and make plans to deal with unknown
problems.
• Is the risk worth the cost of your career, time and
money?
• What will you do if this venture does not pay off?

19. #3 Self-belief and Hard
Work
“Highly Motivated and Energetic- AnHighly Motivated and Energetic- An
Entrepreneur is inspired to do business andEntrepreneur is inspired to do business and
takes the responsibility and full of energytakes the responsibility and full of energy
towards work.”towards work.”
• Successful entrepreneurs believe in themselves and
enjoy what they do.
• Can you focus and have faith in your ideas?
• Can you demonstrate discipline and dedication
despite detractors?

20. #4 Adaptability &
Flexibility
“Openness to Change- An Entrepreneur is Up to date.”Openness to Change- An Entrepreneur is Up to date.”
Open Minded-Open Minded- Entrepreneur has the ability to acceptEntrepreneur has the ability to accept
criticisms.criticisms.
• Successful entrepreneurs welcome all suggestions for
optimization or customization that enhances their
offering and satisfies market and customer needs.
• Can you be flexible in adapting to dynamic markets
and changing customer needs?

21. #5 Understand the
Market
“Curiosity- Entrepreneur is information seeker.”Curiosity- Entrepreneur is information seeker.”
• Successful entrepreneurs know their market and their
product inside and out.
• Can you stay aware of changing market needs,
competitor moves, and other external factors to avert
failure?

22. #6 Money
Management
• Successful entrepreneurs realize money management
is mandatory and plan for present and future
obligations.
• Can you handle keeping sufficient cash flows after
becoming operational?

23. #7 Planning
Time Conscious- Entrepreneurs know the value of time and howTime Conscious- Entrepreneurs know the value of time and how
to make the best use of it.to make the best use of it.
Inner Drive to Succeed-Inner Drive to Succeed- Entrepreneur see bigger picture as theyEntrepreneur see bigger picture as they
became very ambitious.became very ambitious.
Innovative-Innovative- Entrepreneurs have a passionate desire to do thingsEntrepreneurs have a passionate desire to do things
better and to improve their product.better and to improve their product.
• Successful entrepreneurs make plans as much as possible but maintain
a mindset and temperament for dealing with unforeseen possibilities.
• What are your time and money targets? Are they feasible?

24. #8 Networking
Abilities
Competitive – An Entrepreneur is naturally competitive.Competitive – An Entrepreneur is naturally competitive.
• Successful entrepreneurs find experienced mentors
and build networks to seek valuable advice.
• Can you create a network to tap for solutions?

25. #9 Being Prepared to Take
the Exit
• Not every attempt ends in success. Successful
entrepreneurs know when to cut their losses and try
something different rather than continue to lose
money in a failing venture.
• Can you leave a venture if it fails?

26. #10 Self-doubt, but not too
much
• Successful entrepreneurs do gut checks.
• Can you do this?
• Do you want this?

27. TYPES OF ENTREPRENEURS
1)ACCORDINGTOTHETYPE OF BUSINESS
(a)Business Entrepreneurs:-who start business units after
developing ideas for new products/services.
(b)Trading Entrepreneurs :-who undertake buying & selling of
goods, but not engage in manufacturing.
(c)corporate entrepreneurs:-who establish and manage
corporate form of organization which have separate legal existence.
(d)Agricultural entrepreneurs:- who undertake activities like
raising and marketing of crops, fertilizers and other allied activities.

28. 2)ON THE BASIS OF STAGES OF DEVELOPMENT
(a)First generation entrepreneurs:-who do not
possess any entrepreneurial background. They
start a firm by their own innovative skills.
(b)Second generation entrepreneurs:-who
inherit the family business and pass to next
generation.
(c)Classical entrepreneurs:-who aims to
maximize his economic returns at a level
consistent with the survival of the unit with or
without an element of growth.

29. 3)ON THE BASIS OF MOTIVATION
(a)Pure entrepreneurs:-who are basically
motivated to become entrepreneurs for their
personal satisfaction, ego etc..
(b)Induced entrepreneurs:- who are
induced to take up entrepreneurial role by
the assistance and policy of government
including incentives, subsidies etc.

30. 4) ON THE BASIS OF TECHNOLOGY
(a)Technical entrepreneurs:- who are task
oriented and ‘craftsman type’. They prefer doing
to thinking.
(b)Non-technical entrepreneurs:- who are not
concerned with technical side, but rather with
marketing and promotion.
(c)Professional entrepreneurs:- who start a
business unit, but later sell the running business
and start a new unit later.

31. 5)ON THE BASIS OF CAPITAL OWNERSHIP
(a)Private entrepreneurs:- individual or
group set up enterprise, arrange finance,
share risk etc..
(b)State entrepreneurs:- means the
trading or industrial venture undertaken by
the state or the government itself.
(c)Joint entrepreneurs:- the combination
of private and government entrepreneurs.

32. 6)ACCORDING TO GENDER AND AGE
i)Man entrepreneurs
ii)Woman entrepreneurs
iii)Young entrepreneurs
iv)Old entrepreneurs
v)Middle-aged entrepreneurs
7)ACCORDING TO AREA
i)Urban entrepreneurs
ii)Rural entrepreneurs

33. 8)ACCORDING TO SCALE
i)Large scale entrepreneurs
ii)Medium scale entrepreneurs
iii)Small scale Entrepreneurs
iv)Tiny scale Entrepreneurs
9)OTHERS
i)Spiritual Entrepreneur
ii)Social Entrepreneurs
iii)Edupreneurs

34. Entrepreneurship
Entrepreneurship is the process of creating
something new of value by devoting (giving) the
necessary time and effort.
By accepting and acknowledging the necessary
financial, psychological, and social risks, and
Finally receiving the resulting rewards be it
monetary and personal satisfaction and freedom
to do what you want.

35. Competencies
1. Integrity
2. Conceptual Thinking
3. Risk Taking
4. Networking
5. Strategic thinking
6. Commercial Aptitude
7. Decisiveness
8. Optimism

36. 9.Customer Sensitivity
10. People focus
11. Leadership Qualities
12. Decisive
13. Confident
14. Willingness
15. Innovative

37. Women Entrepreneurs in India
 Woman Entrepreneurs are the woman or group
of women who initiate, organize and operate a
business enterprise.
The development of women entrepreneurs will
generate multi-faceted, socio-economic benefit to
the country.
 At present 9.5% women entrepreneurs are
managing small enterprises in India.

38. Challenges faced by Women Entrepreneurs
in India
1.Shortage of Finance
2.Marketing problems
3.Shortage of Raw Materials
4.Tough competition
5.Limited Managerial ability
6.High cost of Production

39. 7. Lack of Entrepreneurial Aptitude
8. Low risk taking ability
9. Family responsibilities
10. Social attitudes
11. Lack of Education
12. Lack of Entrepreneurial
13. Legal Formalities
14. Travelling

40. Opportunities to promote Women
Entrepreneurship
At present, the Government of India has so many schemes
for women operated by different departments and
ministries.
1.Integrated Rural Development Programme(IRDP)
2.Khadi and Village Industries Commission(KVIC)
3.Prime Minister’s Rojgar Yojana (PMRY)
4.Entrepreneurial Development Programme (EDP)
5.Management Development Programmes
6.Women’s Development Corporations (WDCs)

41. 7. Marketing of Non-Farm Products of Rural Women
(MAHIMA)
8. Assistance to Rural Women in Non-Farm
Development(ARWIND) Schemes
9. Trade Related Entrepreneurship Assistance and
Development (TREAD)
10. Working Women’s Forum
11. Indira Mahila Yojana
12. Mahia Samiti Yojana
13. Mahila Vikas Nidhi
14. Micro Credit Scheme
15. Rashtriya Mahila Kosh

42. 16. SIDBI’s Mahila Udyam Nidhi
17. SBI’s Stree Shakti Scheme
18. NGO’s Credit Scheme
19. Micro & Small Enterprises Cluster
Development Programmes(MSE-CDP)
20. National Banks for Agriculture and Rural
Development’s Scheme
21. Rajiv Gandhi Mahila Vikas Pariyijana(RGMVP)
22.Priyadarshini Project- A Programme for Rural
Women Empowerment and Livelihood.