Enterpreneurship small scale business (Ip University-3rd sem)Notes

1. Unit I
Entrepreneurship: Concepts and Definitions
The entrepreneurship is usually understood with reference to individual business. Entrepreneurship has
rightly been identified with the individual, as success of enterprise depends upon imagination, vision,
innovativeness and risk taking. The production is possible due to the cooperation of the various factors of
production, popularly known as land, labor, capital, market, management and of course entrepreneurship.
The entrepreneurship is a risk taking factor, which is responsible for the end result in the form of profit or
loss.
According to A Schumpeter
“The entrepreneurship is essentially a creative activity or it is an innovative function”.
According to Cantillon,
“An entrepreneur is the agent who buys factors of production at certain prices in order to combine them
into a product with a view to selling it at certain prices in future.”
According to J. B. Say,
“An entrepreneur is the economic agent who unites all means of production – land of one, labor of
another and the capital of yet another and thus produces a product. By selling the product in the market he
pays rent of land, wages to labor, interest on capital and what remains is his profit.”
According to Joseph Schumpeter,
“An entrepreneur is an innovator who brings economic development through new combination of factors
of production.”
To conclude: an Entrepreneur can be defined as an individual or a group of individuals who tries to create
something new, who organizes production and undertakes risk involved in the establishment and
operation of a business enterprise.
Entrepreneur
Innovates Bears Risk
Organises Factors
of Production

2. Some more definitions ofEntrepreneur
1. Entrepreneurship is the act of being an entrepreneur, which is a French word meaning "one who
undertakes innovations, finance and business acumen in an effort to transform innovations into
economic goods.”
2. An entrepreneur is a person who has possession of a new enterprise, venture or idea and assumes
significant accountability for the inherent risks and the outcome. The term is originally a
loanword from French and was first defined by the Irish economist Richard Cantillon.
3. entrepreneur - someone who organizes a business venture and assumes the risk for it
4. One special form of human capital that is important in an economic setting is entrepreneurship
(often thought of as the fourth factor of production).
5. Entrepreneur - An innovator of business enterprise who recognizes opportunities to introduce a
new product, a new process or an improved organization, and who raises the necessary money,
assembles the factors for production and organizes an operation to exploit the opportunity.
An entrepreneur is one of the important segments of economic growth. Basically, an entrepreneur is a
person who is responsible for setting up a business or an enterprise. Infact, he is one who has the
initiative, skill for innovation and who looks for high achievement. He is a catalytic agent of change and
works for the good of people. He puts up new grain field projects that actually creates wealth, opens up
employment opportunities and fosters other sectors in terms of economic and feasibility.
What is Entrepreneurship?
Entrepreneurship is more than simply “starting a business.” The definition of entrepreneurship is a
process through which individuals identify opportunities, allocate resources, and create value. This
creation of value is often through the identification of unmet needs or through the identification of
opportunities for change.
Entrepreneurs see “problems” as “opportunities,” then take action to identify the solutions to those
problems and the customers who will pay to have those problems solved.
Entrepreneurial success is simply a function of the ability of an entrepreneur to see these opportunities in
the marketplace, initiate change (or take advantage of change) and create value through solutions.
Entrepreneurship is the propensity of mind to take calculated risks with confidence to achieve a pre-
determined business or industrial objective. In substance, it is the risk taking ability of the individual,
broadly coupled with the correct decision-making.
The capacity to take risk independently and individually, with a view to making profits and seizing an
opportunity to make more earning in the market-oriented economy, is the dominant characteristic of
modern entrepreneurship.
To conclude, entrepreneurship refers to a process of action an entrepreneur undertakes to establish his/her
enterprise. It is a creative and innovative response to the environment. It refers to a cycle of actions to
further the interests of the entrepreneur. Entrepreneurship is a composite skill, the resultant of a mix of
many qualities and traits. These include imagination, readiness to take risks, ability to bring together and
put to use other factors of production – land, labor and capital.

3. Distinction between Entrepreneur and Intrapreneur:
Entrepreneurship is the practice of embarking on a new business or reviving an existing business by
pooling together a bunch of resources, in order to exploit new found opportunities.
What is Intrapreneurship: Intrapreneurship is the practice of entrepreneurship by employees within an
organization.
Both “preneurs” set themselves aside from employees in a number of ways but perhaps the most significant is in
their relationship with the business. It’s a question of committment over involvement. Employees are
involved, “preneurs” are committed.
An entrepreneur takes substantial risk in being the owner and operator of a business with expectations
of financial profit and other rewards that the business may generate. On the contrary, an intrapreneur
is an individual employed by an organization for remuneration, which is based on the financial success
of the unit he is responsible for. Intrapreneurs share the same traits as entrepreneurs such as
conviction, zeal and insight. As the intrapreneur continues to expresses his ideas vigorously, it will
reveal the gap between the philosophy of the organization and the employee. If the organization
supports him in pursuing his ideas, he succeeds. If not, he is likely to leave the organization and set up
his own business.
Example of intrapreneurship: A classic case of intrapreneurs is that of the founders of Adobe, John
Warnock and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they were
frustrated because their new product ideas were not encouraged. They quit Xerox in the early 1980s to
begin their own business. Currently, Adobe has an annual turnover of over $3 billion.
Features of Intrapreneurship: Entrepreneurship involves innovation, the ability to take risk and
creativity. An entrepreneur will be able to look at things in novel ways. He will have the capacity to
take calculated risk and to accept failure as a learning point.
An intrapreneur thinks like an entrepreneur looking out for opportunities, which profit the
organization. Intrapreneurship is a novel way of making organizations more profitable where
imaginative employees entertain entrepreneurial thoughts. It is in the interest of an organization to
Entrepreneurship EnterpriseEntrepreneur
Object/ Entrepreneurial StuffProcessof action / qualityPerson

4. encourage intrapreneurs. Intrapreneurship is a significant method for companies to reinvent themselves
and improve performance.
In a recent study, researchers compared the elements related to entrepreneurial and intrapreneurial
activity. The study found that among the 32,000 subjects who participated in it, five percent were
engaged in the initial stages of a business start-up, either on their own or within an organization. The
study also found that human capital such as education and experience is connected more with
entrepreneurship than with intrapreneurship. Another observation was that intraptreneurial startups
were inclined to concentrate more on business-to-business products while entrepreneurial startups
were inclined towards consumer sales.
Another important factor that led to the choice between entrepreneurship and intrapreneurship was
age. The study found that people who launched their own companies were in their 30s and 40s. People
from older and younger age groups were risk averse or felt they have no opportunities, which makes
them the ideal candidates if an organization is on the look out for employees with new ideas that can
be pursued.
Entrepreneurship appeals to people who possess natural traits that find start ups arousing their
interest. Intrapreneurs appear to be those who generally would not like to get entangled in start ups
but are tempted to do so for a number of reasons. Managers would do well to take employees who do
not appear entrepreneurial but can turn out to be good intrapreneurial choices.
Examples of Intrapreneurs:
A lot of companies are known for their efforts towards nurturing their in-house talents to promote
innovation. The prominent among them is “Skunk Works” group at Lockheed Martin. This group
formed in 1943 to build P-80 fighter jets. Kelly Johnson was the director of the project, a person who
gave “14 rules of intrapreneurship”.
At “3M” employees could spend their 15% time working on the projects they like for the betterment of
the company. On the initial success of the project, 3M even funds it for further development.

5. Entrepreneur Intrapreneur
An Entrepreneur is someone who has the skills, passion
and financial backing to create wealth from new business
opportunities and is willing to take full responsibility for
its success or failure.
An Intrapreneur is someone who manages that
business with entrepreneurial flare in line with the
expectations of the shareholders.
The Entrepreneur is typically a visionary who spots an
opportunity in the marketplace and has the passion,
guile and contact base to set the wheels in motion.
The Intrapreneur has passion and drive but also has the
operational skills of running the “clockwork” of the
business to enable a good idea to be turned into
commercial reality. He is the “inside entrepreneur”
Not every small business needs an Entrepreneur But every business needs an Intrapreneur.
the seed of a business idea needs an Entrepreneur to
shape and cultivate it
Entrepreneur needs the Intrapreneur to pluck from his
grasp those seeds of opportunity, convert them in to a
viable commercial plan and then manage that plan to a
profitable reality.
Without the intrapreneur, ideas entrepreneurs and small
business are doomed to fail.
Article
Effective leadership in small business: The Intrapreneur
Written by Steve Winduss on October 16, 2008 – 6:53 am -
Your small business needs effective leadership. Possibly your most important asset besides your
product is your intrapreneur.
You have decided that you areentrepreneur not intrapreneur. Your business needs an intrapreneur – the
entrepreneur inside the business. But how can you identify such a key component of your team? You can’t afford to
get this one wrong.
To help, I have highlighted 30 ways to spot an intrapreneur, those key traits which mark him out as the special
one, the one that your business can’t do without.
An Intrapreneur ………
 wholeheartedly embraces the entrepreneur’s vision for the company
 earns respect, not demand it
 energises and excites people
 is prepared to admit when he is wrong

6.  listens to others’ ideas and opinions and takes action on them
 recognises the boundaries of his own capabilities
 is consistent
 exudes positivity from every pore
 never brings domestic crises to work with him
 is prepared to take risks
 defaults to saying “we”, not “I”
 exhibits positive attributes such as fairness, integrity, compassion, loyalty
 understands the full spectrum of business activities
 makes consistenly good business decisions
 deflects praise onto his team
 is a good time manager
 is not afraid to ask for help
 naturally attracts trust and loyalty
 believes in the carrot, not the stick
 makes sacrifices without hesitation
 understands the numbers
 preaches empowerment
 understands that if you never fail, you’re not pushing the boundaries hard enough
 communicates at all levels and in all directions
 seeks never ending improvements, no matter how small
 thrives on change and hates maintaining the status quo
 takes humour seriously
 is not prescriptive or controlling
 loves his staff as much as his customers
 constantly reviews his business planning process
Effective leadership in small business relies on – the intrapreneurs.

7. Entrepreneur and Manager
Basis Entrepreneur Manager
Venture An entrepreneur sets up a new
enterprise or undertakes a venture for
his personal gratification.
A manager does not take a new
venture and renders services in an
existing enterprise.
Risk Bearing An entrepreneur assumes risk of
economic uncertainty involved in the
enterprise.
A manager does not assume or share
any risk.
Reward The reward of an entrepreneur for his
risk bearing role is profits. Its not only
uncertain and irregular but at time
negative also.
The reward for a manger for
rendering his services is salary which
unlike profit is fixed and regular.
Contintuity Entrepreneurial activities are
discontinuous appearing to initiate
changes in the production process and
then disappearing utile the change is
initiated.
Managerial activities are mainly
continuous involving an on-going
coordination of business activities.
Innovation In order to maximize the profits, the
entrepreneur applies innovation from
time to time. An entrepreneur is a
change agent.
A manager keeps running the
enterprise on already established
lines on a routine basis.
Status-role An entrepreneur is his own boss and
enjoys an independent status as the
owner of the enterprise
A manager is a salaried person
serving the enterprise of some one
else i.e. entrepreneur.
Prerequisites An entrepreneur needs prerequisites
like mission, creative thinking and risk
bearing etc.
A manager needs distinct
qualifications such as knowledge of
human behavior, management theory
etc.
Entrepreneurship involves mobilizing the resources and combining them to initiate change in
production. On the other hand, management involves combining and coordinating the resources for
production.

8. Traits / Qualities of an Entrepreneur or Entrepreneurial Competencies
Top 7 Personal Competencies of an Entrepreneur
Posted by Amitabh Shukla on August 25, 2009 in Entrepreneurship
An entrepreneur has to have certain cultivated and inherent qualities in him or her in
order to make a success of his or her venture. Not any person can be a successful
businessman or woman. Hard work and determination to win have made many
successful business people to reach their aspired goals.
Personal competencies of a successful businessman or woman
 Leadership qualities – A businessman or woman must be able to lead his or her
staff members as well as other associates. He or she must be able to guide
others in carrying out business and make a success of it.
 Decisive – A successful businessman or woman has to be very decisive. He or
she has to take many decisions sometimes on the spur of the moment. Any
vacillation in decisions could affect their business. They have to be very firm in
their decisions. Also, while taking decisions they must not get influenced by
others. They should be able to take decisions independently.
 Risk-taking – Business involves many risks, which a business person must not
hesitate to take. Lot of financial involvement is there and obviously one has to
be careful with investments. Yet risks have to be taken in money matters as
well. Sometimes a businessman may lose out on his or her venture, but when
he or she make a success of it then he or she has much to gain, both financially
and from a personal satisfaction point of view.
 Confident – Achieving success in business requires confidence. A businessman
or businesswoman has to be sure of him or herself about reaching the set
targets of success. Diffidence does not help. Self-image is enhanced, when one
is confident.
 Willingness – A businessman or woman must be willing to undertake any
matters concerning their business venture. He or she must not hesitate for
personal or other reasons. Willingness to extend a helping hand is very
essential.
 Enterprising – One has to be enterprising in order to achieve significant results
in business. He or she has to have the zeal to do things. A laid- back approach
will not help.
 Innovative – New ideas help make a business venture successful. A successful
businessman or woman must be innovative and always strive for something
better. New concepts must be formulated and new ways of doing business must
be thought of.

9. A businessman or woman has to very competent to achieve scale the ladder of
success. Certain attributes are essential for him or her to establish their business on
sound footing.
Competence refers to a person’s underlying characterestics leading to his / her
superior performance. It is a good combination of various qualities and traits required
to perform the job effectively. Some people believe that entrepreneurs are born not
made. Business family background is essential to success for entrepreneurs. Other
people believe that entrepreneurs are made not born. According to some people,
persons with proper knowledge and skills acquired through education and experience
can become successful entrepreneurs. In order to resolve the controversy on what
makes successful entrepreneurs, the Entrepreneurship Development Institute of India
(EDI) conducted a research and identified the following traits of an entrepreneur:
1. Initiation
2. Watching for opportunities (vision and foresightedness)
3. Persistence
4. Information seeker
5. Quality conscious
6. Commitment to work
7. Efficiency lover
8. Proper planning
9. Self confidence
10.Assertiveness
11.Persuation
12.Effective monitoring
13.Concern for employees
According to McClelland, three qualities are:
1. Endowed with an unusual creativeness.
2. Enriched by high propensity
3. Strong need for achievement.
Nature and Characterestics of Entrepreneurship
1. Economic Activity
2. Creative activity
3. Purposeful activity
4. A function of risk bearing
5. An organizing function
6. Gap filling function

10. 7. Dynamic process
8. Innovative function
“Peter Drucker defines an entrepreneuras one who always searches for change, responds to
it and exploits it as an opportunity. Entrepreneurs innovate.”
Functions of Entrepreneur
1. Innovation
2. Risk Taking
3. Organisation Building
4. Perceiving Market Opportunities
5. Gaining Command over scarce resources
6. Purchasing inputs
7. Marketing products
8. Dealing with Bureaucrats
9. Managing HR within the firm
10. Managing customer and supplier relations
11. Managing finance
12. Acquiring and overseeing assembly of the factory
13. Upgrading process and product
14. Introducing new production techniques and products
FACTORS AFFECTING ENTREPRENEURIAL GROWTH
Entrepreneurship does not emerge and grow spontaneously. Rather, it is dependent upon several
economic, social, political and psychological factors. These environmental factors may have both
positive and negative influences on the growth of entrepreneurship.
1. ECONOMIC FACTORS
a) Adequate overhead facilities: Profitable innovations require basic facilities like
transportation, communication power supply etc. They reduce cost of production and
increase profit.
b) Capital: Inventions are capital oriented. In less developed countries most capital
equipment have to be imported which involves foreign exchange which acts as a difficult
problem.
c) Great risk: Risk is high in case of less developed countries as there is lack of reliable

11. information, markets for goods and services is small etc.
d) Labor: Though there is abundant labor supply there is generally scarcity of skills at
all levels.
e) Raw Material:
f) Market:
2. SOCIAL FACTORS
A society that is rational in decision making would be favorable for decision making.
Education, research and training is given less importance in less developed countries
therefore there is very little vertical mobility of labor.
a) Legitimacy of Entrepreneurship
b) Social Mobility
c) Security
3. CULTURAL FACTORS
Religious, social and cultural factors also influence the individual taking upan entrepreneurial
career, in some countries there is religious and culturalbelief that high profit is unethical. This
type of belief inhibits growth of entrepreneurship.
4. PERSONALITY FACTORS
In less developed countries the entrepreneur is looked upon with suspicion. Public opinion in the
less developed nations sees in the entrepreneur only a profit maker and exploited.
5. MOTIVAT ION
Motivation is the act of stimulating someone or oneself to get a desired course of action, to push
the right button to get the desired results.
MOTIVATING FACTORS
1. Education background
2. Occupational experience
3. Family background

12. 4. Desire to work independently in manufacturing line
5.Assistance from financial institution
6.Availability of technology
7. Other factor
6. Governmental Influence:
FACTORS INFLUENCING ENTERPRENURESHIP
The emergence of entrepreneurs in a society depends upon closely interlinked social, religious,
cultural, psychological, and political and economic factors.
FAMILY TRADITION: Individuals who for some reason, initiate, establish maintain and
expand new enterprises generate entrepreneurship in society. It is observed that entrepreneurs
grow in the tradition of their families and society and accept certain values and norms from these
sources.
RELIGIOUS, SOCIAL AND CULTURAL FACTORS: Religious, social and cultural factors
also influence the individual taking up an entrepreneurial career, in some countries there is
religious and cultural belief that high profit is unethical. This type of belief inhibits growth of
entrepreneurship.
PSYCHOLOGICAL FACTORS: The psychological factors like high need for achievement,
determination of unique accomplishment, self confidence, creativity, vision, leadership etc,
promote entrepreneurship among individuals. On the other hand psychological factors like
security, conformity and compliance, need for affiliation etc restrict promotion of
entrepreneurship.
POLITICAL FACTORS: The political and also the political stability of country influence the
growth of entrepreneurship. The political system, which promotes free market, individual
freedom and private enterprise, will promote entrepreneurship.
ECONOMIC POLICIES: The economic policies of the government and other financial
institutions and the opportunities available in a society as a result of such policies play a crucial
role in exerting direct influence on entrepreneurship.

13. In view of the haphazard development of economic zones, Government is encouraging the
entrepreneurs to establish their business in backward and tribal areas. This is primarily to arrest
the migration of people from the villages to cities and to create employment opportunities
locally. Government is promoting such development by giving incentives like tax holidays (both
sales and income), subsidized power tariff, raw materials, transportation cost etc.
CAUSES OF SLOW GROWTH OF ENTREPRENEURSHIP IN INDIA
Entrepreneurship developed only in the beginning of the 19th century and though the base for
industrialization had been laid a century ago. The following be the main reasons, which could be
responsible for lack of initiative and entrepreneurial spirit among the Indians.
1. Caste System: - This decided occupation for members from each caste. The altitudes were
restrictive and therefore there were no changes of accumulating wealth and promoting
production.
2. Agriculture: - Agriculture was the main occupation. Farmers and cultivators were always in
the clutches of the money lenders. The zamindars, nawabs and rajahs exploited the laborers.
They spent money on enjoyment and luxury and never risked money in industry. Banking and
commercial system was also absent so even if there were savings, they could not be utilized for
productive use.
3. Educational System: - Talented young men were prepared to take white collared jobs or join
government or professional services. Many were attracted towards politics. The result was that
very few young men got attracted towards becoming efficient, industrialists, technicians,
managers etc.
4. Colonial Rules: - The British rulers adopted discriminatory policy Rich Indian businessman
had special connections with foreign rulers and both satisfied their self interests. Even the few
insurance and banking services catered to the needs of some rich Indian businessman, Britishers
in India did also not encourage Industrialization.
5. Managing Agents: - There were just a handful of people who were known to be having
managerial skills. On common basis, these agents would lend their skills to some top industries.
Industrialists could not manage their own units. They were always at the mercy of the managing

14. agents who filled their pockets with big chunks of the companies’ profits and took full advantage
of Indian industrialists till the managing agency system was abolished in 1970.
6. Joint Family System: - Younger members of the family always depended on the Head who
never gave any kind of independence or encouraged units other than family business ones. A
number of young men were discouraged from diversifying from family business and doing
something new and different.
7. Religious attitude: - Indians were very religious minded. They gave more time to religion
than to earning material wealth. Religion got priority over business. Some religions even
condemned excess earnings and indulgence I in comforts. Industrial activity was, therefore,
given secondary consideration by the religious Indians.
8. Mindset: - The mindset of the average Indian was never entrepreneurial. Our religious
literature and epics told us to have patience and to keep on working without expecting the fruits
of labor. This also killed the drive and desire to get into entrepreneurial activities.
9. Recognition by the society: - In earlier days, the heroes India were the social reformers and
the politicians. Now it is the era of sportsmen, models and film stars. It is sad that successful or
the struggling entrepreneurs have never been recognized as heroes. Entrepreneurial activity did
not get due importance in the India society.
10. Family Background: - Empirical studies have shown that a good number of entrepreneurs
come from families with industrial backgrounds. Unfortunately, only a few entrepreneurial
communities in India made entrepreneurial contribution. These communities could also not make
headway in the entrepreneurial field on account of the colonial rule, lack of infrastructure and
other facilities. Entrepreneurship development could only take place after independence in India.
Entrepreneurship and Economic Development
Economic development means a process of upward change whereby the real per capita income of
a country increases over a period of time. Entrepreneurs serve as the catalysts in the process of

15. industrialization and economic growth. Technical progress alone cannot lead to economic
development, unless technological breakthroughs are put to economic use by entrepreneurs.
The entrepreneur is the key to the creation of new enterprises that energize the economy and
rejuvenate the established enterprises that make up the economic structure. Entrepreneurs initiate
and sustain the process of economic development in the following ways:
1. Capital formation
2. Improvement in per capita income
3. Generation of employment
4. Balanced regional development
5. Improvement in living standards
6. Economic independence
7. Backward and forward linkages

16. Entrepreneurship Development Programmes
Entrepreneurship is regarded as one of the important determinants of the industrial growth of the country.
The dearth of the entrepreneurial and managerial skill is one of the most common problems being faced
by all under developed economies. Entrepreneurship is to promoted to help alleviate the unemployment
problem, to overcome the problem of stagnation and to increase the competitiveness and growth of
business and industries. Various attempts have been made to promote and develop entrepreneurship. By
giving specific assistance to improve the competence of the entrepreneur and his enterprise so as to make
him and his entrepreneurial so that more people become entrepreneurs.
In order to meet the global demand and the new challenges thrown to the Indian industry and also to
generate employment, entrepreneurship development has to be given a priority. The entrepreneurs should
possess required skills, ability to grasp opportunities which offer economic advantages, orientation
towards applying knowledge to maximize gains, business skills, and leadership qualities and above all
confidence that one can make things happen. In this context a trained entrepreneur has a number of
advantages. In order to accelerate the growth of industries generate employment and utilities the national
human potential there is a need to channelize the youth and women of the country for useful and
productive purpose. There is also a need to motivate the guide the youth to enable them to take a step
forward and take up a carrier of self employment and setup a small or micro enterprise as an entrepreneur.
Entrepreneurs are not necessarily born they can be developed through education, training and experience.
Development of entrepreneurs means inculcating entrepreneurial skills required for setting up and
operating business units.
Entrepreneurial development is an organized and on going process. Its basic purpose is to motivate
persons for entrepreneurial career and to make them capable of perceiving and exploiting business
opportunities.
An EDP consists of the following phases:
1. Pre-Training Phase: involves
i. Selection of persons with the required potential in terms of knowledge, attitudes and
motivation.
ii. Creation of infrastructure for training
iii. Preparing contents of the training programme
iv. Designing techniques for training
v. Selection and training of the trainers
vi. Survey of environment
2. Development Phase: training programme is launched in order to carry out the necessary
changes in the skills, attitudes and behavior of the participants.
3. Post- Training Phase: this phase involves assessing the effectiveness of the training.
Monitoring and follow up will reveal shortcomings in the programme.
Institutions for EDP
1. NIESBUD
2. Entrepreneurship Development Institute of India, Ahmedabad
3. National Alliance of Young Entrepreneurs (NAYE)

17. 4. Indian Investment Centre (IIC)
5. Technical Consultancy Organisations (TCOs)
6. Commercial Banks
The 9 Personality Types of Entrepreneurs
Starting and growing your own business requires many skills to be successful. Take
a look at the business personality types and find out what you need to succeed. Are
you Bill Gates, a Visionary, or an Improver like Body Shop founder, Anita Roddick?
Your business personality types are the traits and characteristics of your personality
that blend with the needs of the business. If you better understand your business
personality, then you can give your company the best part of you. Find others to
help your business in areas you aren't prepared to fulfill.
There are 9 key types of personality and understanding each will help you enjoy
your business more and provide your company with what it needs to grow. This
entrepreneur personality profile is based on the 9-point circle of the Enneagram.
Begin identifying your dominant personality theme and understand how you
operate in your business.
The 9 Personality Types of Entrepreneurs
1. The Improver: If you operate your business predominately in the improver
mode, you are focused on using your company as a means to improve the world.
Your overarching motto is: morally correct companies will be rewarded working on
a noble cause. Improvers have an unwavering ability to run their business with high
integrity and ethics.
Personality Alert: Be aware of your tendency to be a perfectionist and over-critical
of employees and customers.
Entrepreneur example: Anita Roddick, Founder of The Body Shop.
2. The Advisor: This business personality type will provide an extremely high level
of assistance and advice to customers. The advisor's motto is: the customer is right
and we must do everything to please them. Companies built by advisors become
customer focused.
Personality Alert: Advisors can become totally focused on the needs of their
business and customers that they may ignore their own needs and ultimately burn
out.

18. Entrepreneur example: John W. Nordstrom, Founder Nordstrom.
3. The Superstar: Here the business is centered around the charisma and high
energy of the Superstar CEO. This personality often will cause you to build your
business around your own personal brand.
Personality Alert: Can be too competitive and workaholics.
Entrepreneur example: Donald Trump, CEO of Trump Hotels & Casino Resorts.
4. The Artist: This business personality is the reserved but highly creative type.
Often found in businesses demanding creativity such as web design and ad
agencies. As an artist type you’ll tend to build your business around the unique
talents and creativities you have.
Personality Alert: You may be overly sensitive to your customer’s responses even if
the feedback is constructive. Let go the negative self-image.
Entrepreneur example: Scott Adams, Creator of Dilbert.
5. The Visionary: A business built by a Visionary will often be based on the future
vision and thoughts of the founder. You will have a high degree of curiosity to
understand the world around you and will set-up plans to avoid the landmines.
Personality Alert: Visionaries can be too focused on the dream with little focus on
reality. Action must proceed vision.
Entrepreneurial example: Bill Gates, Founder of MicroSoft Inc.
6. The Analyst: If you run a business as an Analyst, your company is focus on
fixing problems in a systematic way. Often the basis for science, engineering or
computer firms, Analyst companies excel at problem solving.
Personality Alert: Be aware of analysis paralysis. Work on trusting others.
Entrepreneurial example: Intel Founder, Gordon Moore.
7. The Fireball: A business owned and operated by a Fireball is full of life, energy
and optimism. Your company is life-energizing and makes customers feel the
company has a get it done attitude in a fun playful manner.
Personality Alert: You may over commit your teams and act to impulsively. Balance
your impulsiveness with business planning.

19. Entrepreneurial example: Malcolm Forbes, Publisher, Forbes Magazine.
8. The Hero: You have an incredible will and ability to lead the world and your
business through any challenge. You are the essence of entrepreneurship and can
assemble great companies.
Personality Alert: Over promising and using force full tactics to get your way will
not work long term. To be successful, trust your leadership skills to help others find
their way.
Entrepreneurial example: Jack Welch, CEO GE.
9. The Healer: If you are a Healer, you provide nurturing and harmony to your
business. You have an uncanny ability to survive and persist with an inner calm.
Personality Alert: Because of your caring, healing attitude toward your business,
you may avoid outside realities and use wishful thinking. Use scenario planning to
prepare for turmoil.
Entrepreneurial example: Ben Cohen, Co-Founder Of Ben & Jerry’s Ice Cream.
Each business personality type can succeed in the business environment if you stay
true to your character. Knowing firmly what your strong traits are can act as a
compass for your small business. If you are building a team, this insight is
invaluable. For the solo business owners, understand that you may need outside
help to balance your business personality.
Types of Entrepreneurs
Classification on the basis of:
• Type of business
• Use of Technology
•Motivation
•Growth
• Stages in Development
•Others

20. 1. Type of business
 Business entrepreneur: Convert ideas into reality; deal with
bothmanufacturing and trading aspect of business (Small trading
andmanufacturing business)
 Trading entrepreneur: Undertakes trading activities; concerned with
marketing (Domestic and international level)
 Industrial entrepreneur: Undertakes manufacturing activities only; new
product development etc (textile, electronics, etc)
 Corporate entrepreneur: Interested in management part of organisation;
exceptional organising, coordinating skills to manage a corporate undertaking
(Ambani, Tata families)
 Agricultural entrepreneur: Production and marketing of agricultural inputs
and outputs (Dairy, horticulture, forestry)
2. Use of Technology
 Technical entrepreneur: Production oriented, possesses innovative skills in
manufacturing, quality control etc.
 Non technical entrepreneur: Develops marketing, distribution facilities
and strategies
 Professional entrepreneur: Uses the proceeds from sale of one business
to start another one. Brimming with ideas to start new ventures
3. Motivation
 Pure entrepreneur: Psychological and economic rewards motivate him
 Induced entrepreneur: Incentives, concessions, benefits offered by
government for entrepreneurs motivates him
 Motivated entrepreneur: Sense of achievement and fulfillment motivate
him

21.  Spontaneous entrepreneur: Born entrepreneurs with inborn traits of
confidence, vision, initiative
4. Growth
 Growth entrepreneur: One who enters a sector with a high growth rate; is
a positive thinker
 Super growth entrepreneur: One who enters a business and shows a
quick, steep and upward growth curve
5. Stages in Development
 First generation entrepreneur: Innovator, risk taker, among the firsts in
family to enter business
 Modern entrepreneur: Who considers feasibility of business, which can
adapt to change and dynamic market
 Classical entrepreneur: One who gives more importance to consistent
returns than to growth; concerned about customer and marketing needs
6. Others
 Area- Rural and Urban entrepreneur
 Gender/Age- Men and Women entrepreneur
 Scale- Small and Large scale entrepreneur
Also refer to ppt of types of entrepreneurs,

22. Women Entrepreneur
Till the turn of the century, man has enjoyed a dominant position. But change in position
technological innovation and modern way of thinking can reduce the disparity between man
and women, and bring about equality and equity between them, the need of the hour in
women empowerment both through provision of employment and enterprise creation.
Typologically, the former leader to endogenous empowerment and the latter give rise to
exogenous empowerment.
Women entreprenurer's have been making a significant impact in all segments of the
economy in Canada, Great Britain, Germany Australia and US.
The areas choosen by women are retail trade, restaurants, hotels, education,
cultural, cleaning insurance and manufacturing.
It is the group of women or single women running an enterprise or company in order to
earn profit. Now days because of women empowerment women are stepping-stone into
the industries and are taking the place of men. Now a day's women's are running several
business like beauty parlours, switching shops, boutiques, etc.
Women entrepreneurs may be defined as a woman or a group of women who initiate,
organize and run a business enterprise. In terms of Schunpeterian concept of innovative
entrepreneurs, women who innovate, initiate or adopt a business activity are called business
entrepreneur.
The Government of India has defined women entrepreneurs based on women participation
in equity and employment of a business enterprise. Accordingly, a woman entrepreneur is
defined as an enterprise owned and controlled by a woman having a minimum financial
interest of 51% of the capital and giving at least 51% of the employment generated in the
enterprise to a woman.
They have made their marks in business because of the following reasons:
 They want to improve their mettle in innovation and competitive jobs.
 They want the change to control the balance between their families and responsibility
and their business levels.
 They want new challenges and opportunities for self fulfillment.
Role of women as an Entrepreneur's:
1) Imaginative: It refers to the imaginative approach or original ideas with competitive
market. Well-planned approach is needed to examine the existing situation and to identify
the entrepreneurial opportunities. It further implies that women entrepreneur's have
association with knowledgeable people and contracting the right organization offering
support and services.
2) Attribute to work hard: Enterprising women have further ability to work hard. The
imaginative ideas have to come to a fair play. Hard work is needed to build up an
enterprise..

23. 3) Persistence: Women entrepreneurs must have an intention to fulfill their dreams. They
have to make a dream transferred into an idea enterprise; Studies show that successful
women work hard.
4) Ability and desire to take risk the desire refers to the willingness to take risk and
ability to the proficiency in planning making forecast estimates and calculations.
5) Profit earning capacity: she should have a capacity to get maximum return out of
invested capital.
A Woman entrepreneur has also to perform all the functions involved in
establishing an enterprise.These include idea generation, and screening, determination
of objectives, project preparation, product analysis, determination of forms of business
organization, completion of formal activities, raising funds, procuring men machine
materials and operations of business.
Fredrick Harbiscon, has enumerated the following five functions of a women
entrepreneur's :
 Exploration of the prospects of starting a new business enterprise.
 Undertaking a risk and handling of economic uncertainties involved in business.
 Introduction of innovations, imitations of innovations.
 Co ordination, administration and control.
 Supervision and leadership.
In nutshell, women entrepreneur are those women who think of a business
enterprise, initiate it organize and combine the factors of production, operate the
enterprise, undertake risk and handle economic uncertainties involved in running a
business enterprise.
Problems faced by Women
• Lack of need achievement, economic independence and autonomy.
• Absence of risk-bearing capacity
• Lack of education skills
• Male dominating society
• Lack of business information and experience
• Heavily involved in family problems
• Social stigma attached to certain vocations

24. Entrepreneurship Development Programmes
Entrepreneurship is regarded as one of the important determinants of the industrial growth of the country.
The dearth of the entrepreneurial and managerial skill is one of the most common problems being faced
by all under developed economies. Entrepreneurship is to promoted to help alleviate the unemployment
problem, to overcome the problem of stagnation and to increase the competitiveness and growth of
business and industries. Various attempts have been made to promote and develop entrepreneurship. By
giving specific assistance to improve the competence of the entrepreneur and his enterprise so as to make
him and his entrepreneurial so that more people become entrepreneurs.
In order to meet the global demand and the new challenges thrown to the Indian industry and also to
generate employment, entrepreneurship development has to be given a priority. The entrepreneurs should
possess required skills, ability to grasp opportunities which offer economic advantages, orientation
towards applying knowledge to maximize gains, business skills, and leadership qualities and above all
confidence that one can make things happen. In this context a trained entrepreneur has a number of
advantages. In order to accelerate the growth of industries generate employment and utilities the national
human potential there is a need to channelise the youth and women of the country for useful and
productive purpose. There is also a need to motivate the guide the youth to enable them to take a step
forward and take up a carrier of self employment and setup a small or micro enterprise as an entreprene
10 Qualities of a Successful Entrepreneur
Successful businesspeople have manytraitsincommonwithone another.Theyare confidentand
optimistic.Theyare disciplinedself starters.Theyare opentoanynew ideaswhichcrosstheirpath.
Here are tentraits of the successful entrepreneur.
1. Disciplined
These individuals are focused on making their businesses work, and eliminate any hindrances or
distractions to their goals. They have overarching strategies and outline the tactics to accomplish
them. Successful entrepreneurs are disciplined enough to take steps every day toward the
achievement of their objectives.
2. Confidence
The entrepreneur does not ask questions about whether they can succeed or whether they are
worthy of success. They are confident with the knowledge that they will make their businesses
succeed. They exude that confidence in everything they do.
3. Open Minded
Entrepreneurs realize that every event and situation is a business opportunity. Ideas are
constantly being generated about workflows and efficiency, people skills and potential new
businesses. They have the ability to look at everything around them and focus it toward their
goals.

25. 4. Self Starter
Entrepreneurs know that if something needs to be done, they should start it themselves. They set
the parameters and make sure that projects follow that path. They are proactive, not waiting for
someone to give them permission.
5. Competitive
Many companies are formed because an entrepreneur knows that they can do a job better than
another. They need to win at the sports they play and need to win at the businesses that they
create. An entrepreneur will highlight their own company’s track record of success.
6. Creativity
One facet of creativity is being able to make connections between seemingly unrelated events or
situations. Entrepreneurs often come up with solutions which are the synthesis of other items.
They will repurpose products to market them to new industries.
7. Determination
Entrepreneurs are not thwarted by their defeats. They look at defeat as an opportunity for
success. They are determined to make all of their endeavors succeed, so will try and try again
until it does. Successful entrepreneurs do not believe that something cannot be done.
8. Strong people skills
The entrepreneur has strong communication skills to sell the product and motivate employees.
Most successful entrepreneurs know how to motivate their employees so the business grows
overall. They are very good at highlighting the benefits of any situation and coaching others to
their success.
9. Strong work ethic
The successful entrepreneur will often be the first person to arrive at the office and the last one to
leave. They will come in on their days off to make sure that an outcome meets their expectations.
Their mind is constantly on their work, whether they are in or out of the workplace.
10. Passion
Passion is the most important trait of the successful entrepreneur. They genuinely love their
work. They are willing to put in those extra hours to make the business succeed because there is
a joy their business gives which goes beyond the money. The successful entrepreneur will
always be reading and researching ways to make the business better.

26. Successful entrepreneurs want to see what the view is like at the top of the business mountain.
Once they see it, they want to go further. They know how to talk to their employees, and their
businesses soar as a result.
Do youhave what it takestobe a good entrepreneur?Isitsomethingthatyoucouldlearnorrather
somethingthatisinnate?
Personally I think it is both. There are many people nowadays that like to call themselves
entrepreneurs today but are they really one. Indeed there are various characteristics that define an
entrepreneur and in this article we will have a look at 5 qualities of a good entrepreneur. Note
that this is not given into any particular order.
Perseverance
Whatever business you might be setting up, there are times where you will face problems. It is
moment like this that you will need to hold on and persevere. You will have to believe in
yourself and your products and services in order to succeed.
Interpersonal Skills
Business is all about dealing with people and you will need to be good at communicating if you
want to succeed. Whether it is with your customers, suppliers or employees it is important that
you learn how to communicate in an effective way to make sure that your business is run as
smoothly as possible.
Willingnessto TakeCalculatedRisks
A good entrepreneur should be ready to take calculated risk if he or she wants to succeed.
Sometimes in business you will need to trust your gut feelings and walk on water. However you
will need to distinguish between foolishness and calculated risk. Make sure that you do your
homework and ensure that your business plan is feasible before getting started. This may prevent
you from having some unpleasant surprise in the future.
Motivation
It is important that an entrepreneur remain motivated at all time. This is indeed more important
when you are pioneering a business or activity as you will have no one else with you. You
should not let yourself down and make sure that you keep going forward.
TimeManagement
This is another important quality that you will need to have as a good entrepreneur. Time
management will allow you to organize yourself and make sure that you get all your work done
effectively. It is very easy to give in to procrastination when working alone and you will have to
find ways to deal with this. May be you can create a to-do list to help you manage your
workload.

27. Functions of an Entrepreneur In Process of
Production
Entrepreneur is a central point to process of
production and all other factors like capital,
land, labour cluster around him. He
performs following functions.
1. Entrepreneurinitiatesthe businessactivity
He has to start the business activity by preparing a proper plan. The plan should deal with the
type of goods or service to be produced, sources of raw material and credit, type of technology to
be used, the markets where the products can be sold, etc. The plan should be detailed one
covering all the aspects of the business.
2. Entrepreneur organises the factors of production
The entrepreneur has to collect all the other factors of production and combine them in the right
proportion.
3. Entrepreneur is a decision maker
Business involves variety of decisions to be taken. The entrepreneur has to decide about the
nature of product, technology, price policy, advertisement strategy, employment of labour, etc. A
proper strategy has to be adopted by him to take the right decision.
4. Entrepreneur co-ordinate things effectively

28. A business firm consists of a number of departments. He has to co-ordinate various units
effectively by having proper communication channels and supervision.
5. Entrepreneur tries to introduce innovations
According to Prof. Schumpeter, the true function of an entrepreneur is introducing innovations.
Innovations imply introduction of a new product, discovering a new product, introduction of a
new technology or new method of production etc. Innovation involves risk. The entrepreneur
may get profit or may incur loss. Hence, few entrepreneurs try to introduce innovations. By
innovating, they contribute to technological process of the economy and accelerate the growth
and development.
6. Entrepreneur handles budget of his business
The entire budgeting process is the responsibility of the entrepreneur. He has to mobilize
resources for the implementation of the business plan. All other factors have to be paid
contractual payments. He gets the residual income, he has to make provision for future
investments for expansion and diversification. He has to maintain a balance between income and
expenditure.
7. Entrepreneur bears risk and uncertainty
This function distinguishes the entrepreneur from other functions while other factors need not
bother about risk and uncertainties, entrepreneur has to bear risks and uncertainties while risks
are insurable, uncertainties cannot be insured. E.g. risk like fire, theft, etc. can be insured.
Uncertainties like changes in tastes, fashions, cannot be insured. While facing these uncertainties
entrepreneur may get profit or may incur loss. Thus, risk and uncertainty bearing is one of the
unique function of an entrepreneur.
Thus the entrepreneur is the pivot around which all the activities of the firm revolve around. He
is the one who gives direction to the business firms & ensures its effective operation.

29. What are the Featuresof Entrepreneurship
Featuresof Entrepreneurship
The entrepreneur as an organizer of the process of production is the fore-runner of economic
development of a country.
1. Scare humanresource
Entrepreneurship is a very scarce human factor as it involves specific talent, organizational
capacity, innovative sprit and boldness to bear risk which is not found in every person. In
developing countries like India lack of entrepreneurship is a major impediment to development.
2. Heterogeneous factor
Entrepreneurship is a heterogeneous factor of production because efficiency, talents, organizing
skills, ability to bear risk, foresights and innovating capacities, etc. vary from entrepreneur to
entrepreneur. The nature of enterprise varies with various forms of business organizations like
sole trading, partnership, co-operatives, Joint Stock Company and public undertakings. In a small
business, the same person may work as an entrepreneur, manager and capitalist.
3. Indispensable factor
In modern business entrepreneur is a very important factor of production as he organizes
production of goods & services by coordinating the other factors in an optimum way. He is an
organiser & owner of the firm. Production is impossible in his absence.
4. Intangible factor
Entrepreneurship is an abstract phenomenon. It is intangible. Entrepreneurial efforts cannot be
measured in quantitative terms while we can measure in terms of hours of work and number of

30. days. We can calculate the number of individual workers and their contribution to the firm but it
is not possible to measure entrepreneurship as the firm itself is the enterprise.
5. Highly mobile
Of all factors entrepreneur possess a higher degree of mobility as he can easily move from one
industry to another or from one region to another. An entrepreneur's ability to move from one
industry to another depends upon his knowledge, experience and specialization.
6. Cannot be Bought & Sold
Land labour and capital can be bought and sold in factor markets but it is not possible to deal
with entrepreneurs in a factor market. Since enterprise is an intangible factor, it cannot be bought
and sold. Hence, like land, labour and capital market there is no entrepreneurial market where
entrepreneurship can be bought and sold. Transaction is not possible in case of enterprise.
We cannot derive the demand and supply curves in case of entrepreneur. Hence, the Demand and
Supply Theory of value cannot be applied to the factor enterprise or organization to determine its
price.
7. Residual reward
Entrepreneurship is a reward in terms of profit which is a residual reward, i.e. an income which
is left after meeting all business expenses from the total sales revenue.