EntrepreneurshipDevelopment
IntroductionToEntrepreneurship

MODULE1-SYLLABUS
Entrepreneur andEntrepreneurship
Characteristics ofEntrepreneurs
Types ofEntrepreneurs
RoleofEntrepreneur inEconomic
Development
FactorsAffecting Entrepreneurial Growth in
India

ENTREPRENEURANDENTREPRENEURSHIP
ENTREPRENEUR
Joseph Schumpeter defines Entrepreneurs as individuals who exploit market
opportunitythroughtechnicaland/ororganizationalinnovation.
Innovation
Risk Taking
Profit
Growth

ENTREPRENEURSHIP
The purposeful activity of an individual or group of associated individuals,
undertaken to initiate, maintain or aggrandise profit by production or distribution of
economicgoodsandservices.–A.H.Cole
Actofbeing entrepreneur.
Creating something new, organizing, co-ordinating and undertaking risk and
handlingeconomicuncertainty.

CHARACTERISTICSOFENTREPRENEURS
Decision
Making
RiskTaking Innovation Perseverance
Integrity&
Reliability
Goal
Orientated
Commitment Responsible
Driveto
Achieve &
Growth
Initiative
Self
Confidence
Dynamism Flexible
Attitude to
Planin
Advance

TYPESOFENTREPRENEURS
BasedontheTypeof
Business
• Trading
Entrepreneur
• Manufacturing
Entrepreneur
• Agricultural
Entrepreneur
• Retail
Entrepreneurs
• Service
Entrepreneur
• Social
Entrepreneur
BasedontheSizeof
Enterprise
• Small-Scale
Entrepreneur
• Medium-Scale
Entrepreneur:
• Large-Scale
entrepreneur:
BasedonGender
• MenEntrepreneurs
• Women
Entrepreneurs
• Transgender
Entrepreneurs
BasedonOwnership
• Private
Entrepreneur
• JointEntrepreneurs
BasedontheUseof
Technology
• Technical
Entrepreneur
• Non-Technical
Entrepreneur

TYPESOFENTREPRENEURS
According totheStagesof
Development
• FirstGeneration Entrepreneur
• ClassicalEntrepreneur
• Inherited Entrepreneurs
• ModernEntrepreneurs or
Innovative Entrepreneurs
According toMotivational
Aspects
• PureEntrepreneur
• InducedEntrepreneur
• Motivated Entrepreneur
• Spontaneous Entrepreneur

BasedonClarenceDanhofClassification:
TypesofEntrepreneurs
Innovating
Entrepreneurs
Fabian
Entrepreneurs
Imitative
Entrepreneurs
Drone
Entrepreneurs

RoleofEntrepreneurinEconomicDevelopment
CapitalFormation.
GenerateEmploymentOpportunities.
BalancedRegionalDevelopment.
Reduces theConcentrationofEconomicPower.
EncouragestheEffectiveUtilisationofCapitalandNatural
Resources.
PromotesExportTrade.

Capital Formation
• Entrepreneurs mobilize the idle savings of the public through the
issues of industrial securities.
• Investment of public savings in industry results in productive
utilization of national resources.
• Thus, an entrepreneur is the creator of wealth.

Generate employment opportunities
• Entrepreneurs generate employment both directly and indirectly.
• Directly, self-employment as an entrepreneur offers the best way for
independent and honorable life.
• Indirectly, by setting up large and small scale business units they offer
jobs to millions.
• Thus, entrepreneurship helps to reduce the unemployment problem
in the country.

Balanced regional development
• Entrepreneurs in the public and private sectors help to remove
regional disparities in economic development.
• They set up industries in backward areas to avail various concessions
and subsidies offered by the central and state governments.
• Public sector steel plants and private sector industries by Tatas, Birlas
and others have put the unknown places on the international map.

FactorsAffectingEntrepreneurialGrowthinIndia
Factors
Economic
Non-
Economic
Social
Psychological
and personal
Cultural Political

Economic factors
These factors are important in influencing the economic stability and
growth of a country.
• Capital (to buy land, RM,create product and services)
• Labour (Skilled labour, quality and quantity)
• Infrastructure (eg: Shipping facilities)
• Raw material ( eg: Furniture industry)

Non- economic factors
• Cultural : (The cultural values of a country also impact the growth of
entrepreneurship. If the culture has a leaning toward the growth of
the economy and money-making business, there are higher chances
of entrepreneurs flourishing in the country)
• Social : An Entrepreneurial Venture Has The Ability To Grow More In
Places Where The Environment Is Flexible And Liberal. Every Society
Formulates Its Own Norms, Rules And Regulations. These Values, In
Turn, Act As A Social Environment For Entrepreneurial Activities.
• Entrepreneur Should Always Try To Work Keeping In Mind That The
Social Values And Rules Are Complied With While Fulfilling Business
Objectives, Or Earning Profits Through The New Idea.

• Psychological factors (need for achievement, growth, motivation for
both employees & entrepreneur)
• Political factors (govt.subsidies, sez, social schemes)
• Personal factors (ability, creativity of the individual)

Assignment : 1
1) The common personality traits of a successful entrepreneur.
(Submit on 28th March 2023)