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UNIT I
Entrepreneur - meaning- importance-Qualities, nature, types, traits, culture, similarities and
economic and differences between Entrepreneur and Intrapreneur. Entrepreneurship
development-its importance- Role of Entrepreneurship -Entrepreneurial environment. Role
of consultancy organizations in promoting Entrepreneurs-Forms of business for
Entrepreneurs.

UNIT II
Creating and starting the venture - Steps for starting a small industry - selection of types of
organization , Managing, growing and ending the new venture - Preparing for the new
venture launch -early management decisions Managing early growth of the new venture-
new venture expansion strategies and issues - Going public - ending the venture, Venture
Capital – Definition, Funding New Projects – Process – Examples for VC Firms, Issues and
problems with VC Firms, International entrepreneurship opportunities.

UNIT III
Development and Government: Role of Central Government and State Government in
promoting Entrepreneurship - Introduction to various incentives, subsidies and grants -
Export Oriented Units - Fiscal and Tax concessions available. Women Entrepreneurs
Reasons for low / no women Entrepreneurs their Role, Problems and Prospects, Corporate
Entrepreneurship.

UNIT IV
Innovation: - Definition, Need & Objectives of innovation, Types of innovation in
Entrepreneurship – Sustaining, Disruptive, New Market, Integrative, Process of innovation
Phases – Idea Generation, Concept, Solution and Market, Role of R&D ( RTD) in
innovation , Technological innovation - its importance , Technological innovation in
business – reasons for and examples, Issues in technological innovation and how to
overcome, Technological change and innovation and its impact on employees in future.
The innovation matrix and its components – Radically Disruptive, radically sustaining,
Incrementally Disruptive & Incrementally Sustaining.

UNIT V
Innovation projects. Methods for evaluation of innovation projects. Closed innovations.
Open innovations, Theories of innovation – E.M Rogers Diffusion of Innovation (DOI)
Theory and its limitations, Schumpeter’s Innovation Theory of Profit, Social Innovation –
Definition, Process, Importance of social innovation, Examples of social innovation,
architectural and modular innovation

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 MODULE -1
Entrepreneur -

● A person who sets up a business or businesses, taking on financial risks in the hope
of profit. He is an individual who creates a new business, bearing most of the risks
and enjoying most of the rewards.
● Entrepreneurs are action-oriented highly motivated individuals who take risks to
achieve goals. An entrepreneur is an innovator of a new combination in the field of
production.
● The word ‘Entrepreneur’ is derived from the French word “Entreprendre” which
means, “to undertake.”

Importance - Entrepreneurs are important to market economies because they can act as the
wheels of the economic growth of the country. By creating new products and services, they
stimulate new employment, which ultimately results in the acceleration of economic
development.

● Free market evolution. Entrepreneurs are important in a free market because they
help the market respond to changing prices and consumer preferences.

● Efficiency improvements. A successful entrepreneur may take revenue from an

established business.

● Dynamic efficiency. Entrepreneurs can make radical changes and introduce new
technologies which significantly move an industry.

● New values. An entrepreneur is not just about price and profit. An entrepreneur may
be motivated to enter an industry to offer a more ethical product or provide a service
to a community.

Motives of entrepreneurs
• Profit. Profit is the biggest incentive. If the business is successful, the entrepreneur
can pay themselves a large dividend or sell the product
• Income
• Overcome a particular need
• Non-financial motives.

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QUALITIES OF ENTREPRENEUR - ?
Opportunity recognition - Do you recognize an opportunity when you see it? Our lives are
constantly offering new opportunities, but most of us are generally too afraid or distracted
to recognize them. Instead, we see them as problems. A successful entrepreneur is able to
look at a problem and envision the potential to create a solution.
1. Initiative - Identifying opportunities, however, is not enough. A true entrepreneur
has the confidence to take the leap and jump into action, often without a previous point of
reference. They can proactively and independently address an issue that they care about,
rather than waiting for others to solve it.
2. Creativity and Innovation - When the path to a solution is not clearly defined, we
need to be creative to design a new path. Creativity is a necessary quality for any
entrepreneur
3. Flexibility
4. Collaboration and communication - No entrepreneur can succeed in a vacuum.
The ability to build connections and start collaborations is an essential part of the
entrepreneurial mindset.
Q. Characteristics of an entrepreneur
• Entrepreneur is an agent.
• Entrepreneur is a risk-taker.
• Entrepreneur is a profit maker.
• Entrepreneur is an achievement motivator.
• Entrepreneur is a capital provider.
• Entrepreneur is the determinant of the nature of the business.
• Entrepreneur is an innovator.
• Entrepreneur is a reward receiver.
• Entrepreneur is a challenge taker.
Q .CLASSIFICATION / TYPES OF ENTREPRENEURS ?

1. According to the Type of Business

Entrepreneurs are found in various types of business coronations of varying size. We may
broadly classify them as follows:

Business Entrepreneur:
Business entrepreneurs are individuals who conceive an idea for a new product or service
and then create a business to materialize their idea into reality. They are called small
business entrepreneurs when found in small business units such as printing press, textile
processing house, advertising agency; readymade garments, or confectionery. In a majority
of cases, entrepreneurs are found in small trading and manufacturing business and
entrepreneurship flourishes when the size of the business is small.

Trading Entrepreneur:
Trading entrepreneur is one who undertakes trading activities and is not concerned with the
manufacturing work. He identifies potential markets, stimulates demand for his product

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line and creates a desire and interest among buyers to go in for his product. He is engaged
in both domestic and overseas trade.

Industrial Entrepreneur:
Industrial entrepreneur is essentially a manufacturer, who identifies the potential needs of
customers and tailors a product or service to meet the marketing needs. He is a product-
oriented man who starts in an industrial unit because of the possibility of making some new
product.

Corporate Entrepreneur:
Corporate entrepreneur is a person who demonstrates his innovative skill in organizing and
managing corporate undertakings.

Agricultural Entrepreneur:
Agricultural entrepreneurs are those entrepreneurs who undertake agricultural activities
such as raising and marketing of crops, fertilizers and other inputs of agriculture. They are
motivated to raise agriculture through mechanization, irrigation and application of
technologies for dry land agriculture products.

2. According to the Technology use

The application of new technology in various sectors of the national economy is essential
for the future growth of business. We may broadly classify these. entrepreneurs on the basis
of the use of technology as follows:

Technical Entrepreneur:
A technical entrepreneur is essentially compared to a “craftsman.” He develops improved
quality of goods because of his craftsmanship.

Non-technical Entrepreneur:
Non-technical entrepreneurs are those who are not concerned with the technical aspects of
the product in which they deal. They are concerned only with developing alternative
marketing and distribution strategies to promote their business.

Professional Entrepreneur:
Professional entrepreneur is a person who is interested in establishing a business, but does
not have interest in managing or operating it once it is established. A professional
entrepreneur sells out the running business and starts another venture with the sales
proceeds. Such an entrepreneur is dynamic and he conceives new ideas to develop
alternative projects.

3. According to the Entrepreneur and Motivation

Motivation is the force that influences the efforts of the entrepreneur to achieve his
objectives. An entrepreneur is motivated to achieve or prove his excellence in job
performance. He is also motivated to influence others by demonstrating his business
acumen.

Pure Entrepreneur

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A pure entrepreneur is an individual who is motivated by psychological and economic
rewards. He undertakes an entrepreneurial activity for his personal satisfaction in work, ego
or status.

Induced Entrepreneur
An entrepreneur is one who is induced to take up an entrepreneurial task due to the policy
measures of the government that provides assistance, Incentives, concessions and necessary
overhead, facilities to start a venture. Most of the induced entrepreneurs enter business due
to financial, technical and several other facilities provided to them by the state agencies to
promote entrepreneurship.

Motivated Entrepreneur
New entrepreneurs are motivated by the desire for self-fulfillment. They come into being
because of the possibility of making and marketing some new product for the use of
consumers. If the product is developed to a saleable stage, the entrepreneur is further
motivated by reward in terms of profit.

Spontaneous Entrepreneur
These entrepreneurs start their business there by Entrepreneur. They are persons with
initiative, boldness and confidence in their_- ability, which activate them, underage
entrepreneurial activity. Such entrepreneurs have a strong conviction and confidence in
their inborn ability.

4. According to the Growth and Entrepreneurs

The industrial units are identified as units of high growth, medium growth and low growth
industries and as such we have “Growth Entrepreneur” and “Super-Growth Entrepreneur.”

Growth Entrepreneur:
Growth entrepreneurs are those who necessarily take up a high growth industry, which has
substantial growth prospects.

Super-Growth Entrepreneur:
Super-growth entrepreneurs are those who have shown enormous growth of performance
in their venture. The growth performance is identified by the liquidity of funds, profitably
and gearing.

5. According to the Entrepreneur and Stages of Development

Entrepreneurs may also be classified as the first generation entrepreneur, modern
entrepreneur and classical entrepreneur depending upon the stage of development.
They are explained below:

First-Generation Entrepreneur:
A first-generation entrepreneur is one who starts an. industrial unit by innovative skill. He
is essentially an innovator, combining different technologies to produce a marketable
product or service. .

Modern Entrepreneur:

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A modern entrepreneur is one who undertakes those ventures, which go well along with the
changing demand in the market. They undertake those ventures, which suit the current
marketing needs.

Classical Entrepreneur:
A classical entrepreneur is one who is concerned with the customers and marketing needs
through the development of a self-supporting venture. He is a stereotypical entrepreneur
whose aim is to maximize his economic returns at a level consistent with the survival of the
firm with or without an element of growth.

Q. TRAITS OF ENTREPRENEUR?

Common traits of an entrepreneur:

1. Vision
Successful entrepreneurs have a clear vision of what their business will be and can
concisely articulate its purpose, goals and market position.

2. Passion
A successful entrepreneur is passionate about their business. It is hard work, and putting in
long hours will be tough if you don’t love what you are doing. People with passion know
what it is that drives them to keep working to achieve their vision.

3. Tenacity
Entrepreneurs remain tough when the going gets rough. They don’t give up easily. They
can accept rejection and are willing to learn from their mistakes.

4. Flexibility
Things do not always go as planned. A successful entrepreneur is flexible. They learn from
their mistakes and are willing to adapt and change as they go along.

Q. Difference Between Entrepreneur and Intrapreneur

The important distinguishing points between entrepreneur and intrapreneur are:

● An entrepreneur is defined as a person who establishes a new business with an
innovative idea or concept. An employee of the organization who is authorized to
undertake innovations in product, service, process, system, etc. is known as
Intrapreneur.
● An entrepreneur is intuitive in nature, whereas an intrapreneur is restorative in
nature.
● An entrepreneur uses his own resources, i.e. man, machine, money, etc. while in the
case of an intrapreneur the resources are readily available, as they are provided to
him by the company.
● An entrepreneur raises capital himself. Conversely, an intrapreneur does not need to
raise funds himself; rather it is provided by the company.
● An entrepreneur works in a newly established company. On the other hand, an
intrapreneur is a part of an existing organization.

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 ● An entrepreneur is his own boss, so he is independent to make decisions. As opposed
to an intrapreneur, who works for the organization, he cannot take independent
decisions

Q. Entrepreneurship Development
Entrepreneurship Development is defined as a process of enhancing the skill set and
knowledge of entrepreneurs regarding the development, management and organization of
a business venture while keeping in mind the risks associated with it. This is carried out
through training programs and sessions.

ED STEPS : the entrepreneurial process into five phases: idea generation, opportunity
evaluation, planning, company formation/launch and growth Importance of
Entrepreneurship Development
Entrepreneurs bring new innovation that opens the door of new ventures, markets, products,
and technology. Entrepreneurs have a role to play in solving problems that existing products
and technology have not yet solved
● Contribution to GDP and capital formation:
● Generation of employment:.
● Generation of business opportunities for others Remarkable role in economic and
industrial development of a country Increasing the scope of economic activities
● Impact on local communities.
● Gives benefit of innovation to the society
● Pays taxes to government
● Raise the living standards of society

Q. Role of Entrepreneurship
1. Entrepreneurship promotes capital formation by mobilizing the idle saving of the
public.
2. It provides immediate large-scale employment. Thus, it helps reduce the
unemployment problem in the country, i.e., the root of all socio-economic
problems.
3. It promotes balanced regional development.
4. It helps reduce the concentration of economic power.
5. It stimulates the equitable redistribution of wealth, income and even political
power in the interest of the country.
6. It encourages effective resource mobilization of capital and skill which might
otherwise remain unutilized and idle.
7. It also induces backward and forward linkages which stimulate the process of
economic development in the country.
8. Last but not least, it also promotes a country's export trade i.e., an important
ingredient to economic development.

Q. Entrepreneurial Environment
Entrepreneurial Environment is a combination of factors that play a role in the development
of entrepreneurship. First it refers to the overall economic , socio cultural, and political

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factors that influence people's willingness and ability to undertake entrepreneurial
activities. Second it refers to the availability of assistance and support services that facilitate
the start up process.
The available literature on entrepreneurial environments can be grouped into three broad
streams:
General Environmental conditions for entrepreneurship;
Environmental conditions of a particular country or region and the role of public policy in
shaping the entrepreneurial environments.

• Legal and institutional frameworks for efficient functioning of private enterprises.

● Presence of experienced entrepreneurs and skilled labour force
● Accessibility of suppliers and customers or new markets
● High degree of competition among firms
● Favourable government policies
● Provision of training and support services
● Supportive infrastructure

Country / Region Specific Environmental conditions

● Countries that keep rules and regulations at a minimum, offer tax and other
incentives, and provide training and counseling services to start up
● Entrepreneurs increases the likelihood of new venture start ups
● Furthermore factors such as availability of financial resources, large size urban
areas, and presences of universities for training and research are found to be very
important to increase the rate of new venture creation.

Q. Role of consultancy organization in promoting entrepreneur

The consultancy organization provide help in promoting entrepreneurs by giving guiding
them and by directing them through various processes for achieving their objectives
● The main aim of the consultant’s is to help the enterprises through their various
processes and systems and guide them through proper directions. The consultants
help in facilitating the business of the entrepreneurs with assisting them through
evaluating the marketing scenario and looking for better opportunities.
● The consultants advise the entrepreneurs regarding effective utilization of the
resources and highlighting the opportunities and benefits for the organizations
through study of the markets.
● The consultants guide the entrepreneurs through their findings and information with
bringing in the required changes in the processes for the improvement of the
enterprise. They help with identifying important training programs and technologies
for benefiting the entrepreneurs

Q. Forms of Business for Entrepreneurs

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 1. Sole proprietorship
A sole proprietorship is an unincorporated company that is owned by one individual only.
While it is the most simple of the types of businesses, it also offers the least amount of
financial and legal protection for the owner. Unlike partnerships or corporations, sole
proprietorships do not create a separate legal identity for the business. Essentially, the
owner of the business shares the same identity as the company. Therefore, the owner is
fully liable for any and all liabilities incurred by the company

2. Partnership
As the name states, a partnership is a business owned by two or more people, known as
partners. Like sole proprietorships, partnerships are able to take advantage of flow-through
taxation. This means that the income is treated as the owners’ incomes so it is only taxed
once. Owners in partnerships are responsible for the liabilities of the firm. However, there
are some nuances to this. There are different types of partnerships: general partnerships,
limited partnerships, and limited liability partnerships.

3. Company
A company is a legal entity formed by a group of individuals to engage in and operate a
business enterprise in a commercial or industrial capacity. A company's business line
depends on its structure, which can range from a partnership to a proprietorship, or even a
corporation A company's business line depends on its structure, which can range from a
partnership to a proprietorship, or even a corporation. Companies may be either public or
private; the former issues equity to shareholders on an exchange, while the latter is
privately-owned and not regulated. A company is generally organized to earn a profit from
business activities. Companies are an important contributor to the health of an economy as
they employ individuals and attract disposable income to spur growth.

4. Franchise
A franchise (or franchising) is a method of distributing products or services involving a
franchisor, who establishes the brand's trademark or trade name and a business system, and
a franchisee, which pays a royalty and often an initial fee for the right to do business under
the franchisor's name and system.
Technically, the contract binding the two parties is the “franchise,” but that term more
commonly refers to the actual business that the franchisee operates. The practice of creating
and distributing the brand and franchise system is most often referred to as franchising.

MODULE -2

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Q . Steps to start small scale Industries
Starting a Small scale Industry is a complex job. The potential entrepreneur has to pass
through a number of steps in a step-by-step approach to achieve his goal of setting up
an SSI.

Step 1: Decision to be Self-Employed

This is the most crucial decision a youth has to take shunning wage employment and opting
for self-employment or entrepreneurship to steps to start small scale industries.

Step 2: SWOT Analysis

Analyzing Strengths, Weakness, Opportunities and Threats the Potential entrepreneur has
to analyze his strengths, weakness, opportunities and Threats, while deciding to go for an
entrepreneur career. It is also called SWOT analysis.

Step 3: Scanning of Business Environment –

It is always essential on the part of the entrepreneur to study and understand the prevailing
business environment.
In order to ensure success in his enterprise, entrepreneurs should scan the business
opportunities and threats in the environment.

Step 4: Training
Before going to start the enterprise, the potential entrepreneur must assess his own
deficiencies which he can compensate through training.

Step 5: Product Selection

The most important steps to start small scale industries is to decide what business to venture
into, the product or range of products that she'll be selected for manufacture and in what
quantity.

Step 6: Market Survey

It is important convenient to manufacture an item but difficult to sell.
Market survey implies systematic collection of data by the entrepreneur about the product
for manufacture, demand-supply lag, extent of competition, frequency of demand, pattern
and design of demand, its potential share in the marketing pricing, distribution policy etc.

Step 7: From of organization

A firm can be constituted as proprietorship, partnership, limited company, cooperative
society, etc.
This will depend upon the type, purpose and size of entrepreneur’s business.

Step 8: Location
The next step will be to decide the location where the unit is to be established. This size of
plot, covered and open area and the exact site will have to be decided.

Step 9: Technology
Information on all available technologies should be collected by the entrepreneur and the
most suitable one to be identified.

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 Step 10: Machinery and Equipment
Having chosen the technology, the machinery and equipment required for manufacturing
the chosen products have to be decided.

Step 11: Project Report Preparation

This most important step to start small scale industries. After deciding the form of the
ownership, location, technology, machinery, and equipment, the entrepreneurs should be
ready to prepare his project report the feasibility study.

Step 12: Project Appraisal

Project appraisal implies the assessment of a project.
The following appraisals can be performed at the preliminary level :-
• Economical appraisal
• Financial appraisal
• Technical appraisal
• Management appraisal
• Organizational appraisal
• Market appraisal

Step 13: Finance

Finance is the lifeblood of the enterprise. Entrepreneur has to take certain steps and follow
specified norms of the financial institutions and banks to obtain it.

Step 14: Provisional Registration

It is always worthwhile to get the unit registered with the government.
The entrepreneur has to obtain the prescribed application from the provisional registration
under DIC or Directorate of industries.

Step 15: Technical Know-How

Technical know-how may be arranged for setting up enterprise.
Facilities are also available to SSI for making technical know-how arrangements including
turn-key jobs.

Step 16: Power and water connection

The sites, where the enterprise will be located, should either have adequate power
connections or this should be arranged.

Step 17: Installation of Machinery

Having completed the above formalities, the next step is to procure the machinery for
installation.

Step 18: Procurement of Raw materials

Raw materials are the important ingredients for running an enterprise. The labor will require
raw materials to work upon the installed machinery.

Step 20: Production

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 The unit established should have an organizational setup. To operate optimally, the
organization should employ its manpower, machinery and methods effectively.

Step 21: Marketing

Marketing is the most important activity as far as entrepreneurial development is
concerned.
Various aspects like how to reach the customer, distribution channels, commission
structure, pricing, advertising, publicity etc., have to be decided by the entrepreneur.

Step 22: Quality assurance

Before marketing, the product quality certification from BIS (Bureau of Indian
standards) or AGMARK/HALLMARK etc.
If there is no quality standards specified for the products, the entrepreneur should evolve
his own quality control parameters.

Step 23: Permanent Registration

After the small scale unit goes into production and marketing, it becomes eligible to get
permanent registration based on its provisional registration from DIC.

Step 24: Market Research

There is strong need for continuous market research to assess needs and areas for
modification, up-gradation and growth.
Market becomes Waterloos for most SSI entrepreneurs as they ignore the vital day-to-
day operation.

Q . SELECTION OF TYPES OF ORGANIZATION

The selection criteria of a proper form of organization are crucial for the success of a
business enterprise. Every entrepreneur has to decide, at the outset, about the type of
organisation. The decision of an entrepreneur depends on a number of variable factors.
• Type of business – service, trade, manufacturing.
• Selection of industry and the area of operation.
• Scope of operations, volume of business and the size of the market, including its
expected growth potential.
• Amount of capital funds required – initial capital, working capital.
• Possibility of raising resources from the market – institutions, subsidies and other
incentives.
• Costs and procedures and relative freedom from Government regulations.
• Comparative tax advantages, etc.
• Size of the risk/
• Continuity of the enterprise.
• Degree of direct control and adaptability of administration

The following are some common organizational types (also called “legal structures”):
● Sole proprietorship
● General partnership
● Franchise

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● Limited partnerships and limited liability partnerships (LLP)
● Limited liability company (LLC)
● C corporation
● S corporation

Each form of ownership has advantages, disadvantages, risks, and rewards that can affect
the business’s chances for long-term success. The following are some of the important
factors business owners should consider when selecting a form of ownership.
● Cost of Start-up
● Control vs. Responsibility
● Profits—to Share or Not to Share
● Taxation
● Entrepreneurial Ability
● Risk Tolerance
● Financing
● Continuity and Transferability

Q. Preparing for new venture launch

To successfully launch your startup and product, you must:
1. Determine your market type/market maturity.
2. Set your launch goals.
3. Prepare your positioning.
4. Choose your launch plan.
5. Select the right PR agency.
6. Determine your target audience and key opinion leaders.
7. Craft your key messages.
8. Pick your media strategy.

An enterprise also means an undertaking, a business firm or venture. Here is a step-by-step

approach for starting a new venture. These can be divided into three stages:
1. Pre-launch Stage
2. Launch Stage
3. Post launch Stage

1. Pre launch Stage

The following steps are involved in a Pre-launch stage in starting of a new venture.
a) Identify, Analyze and Decide on the business idea.
b) Analysis of strengths, weaknesses, opportunities and threats.
c) Analyze competition
d) Estimate and forecast the market size, growth and marketing feasibility which
involves measurement of demand — supply gap.
e) Understand the technology, process and selection of the idea.
f) Decide on the size of the enterprise in terms of production capacity, employees.
g) Decide on the location of the venture.

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 h) Identify the incentives given by the Government to promote the small and medium
industries.
i) Understand the relevant laws which are applicable for the business.
j) Analyze the business idea as opportunity in terms of Profit, costs, expenditure,
income, sales, and market share.
k) Estimation of manpower requirements.

2. Launch Stage
a. Selection of the Name of the enterprise.
b. Hiring or construction of building
c. Deciding on the ownership pattern — sole proprietor, partnership, private or public
limited company and limited liability partnership.
d. Registration of the firm.5. Preparation of business plan and project report.
e. Deciding on the product mix and markets to serve.
f. Application for loan to banks. If private or public, issue of shares.
g. Raising finance.
h. Ordering and installation of machinery.
i. Recruitment of people.
j. Deciding on the channel of distribution
k. Sources of raw materials to be finalized and purchases made.
l. Production started.
m. Products to be made available in the market.

3. Post Launch
a. Teething problems to be solved.
b. Systems to be developed in all the areas of management
c. Feedback on the product
d. Changes if needed to be introduced.
e. Expansion decisions.

Q . New venture expansion strategies and issues

The firm can follow either of the five expansion strategies to accomplish its objectives:
● Expansion through Concentration. ● Expansion through Diversification.
● Expansion through Integration.
● Expansion through Cooperation.
● Expansion through Internationalization.
The Expansion Strategy is adopted by an organization when it attempts to achieve high
growth as compared to its past achievements.The reasons for the expansion could be
survival, higher profits, increased prestige, economies of scale, larger market share, social
benefits, etc.
● The Expansion through Concentration is the first level form of the Expansion
Grand strategy that involves the investment of resources in the product line
● Expansion through Diversification is followed when an organization aims at
changing the business definition, i.e. either developing a new product or expanding
into a new market, either individually or jointly.

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 ● Expansion through Integration means combining one or more present operations
of the business with no change in the customer groups. This combination can be
done through a value chain.
● The Expansion through Cooperation is a strategy followed when an organization
enters into a mutual agreement with the competitor to carry out the business
operations and compete with one another at the same time, to expand the market
potential.
The expansion through cooperation can be done by following any of the strategies as
:

Q .VENTURE CAPITAL ?
Venture capital (VC) is a form of private equity and a type of financing that investors
provide to startup companies and small businesses that are believed to have long-
termgrowth potential. Venture capital financing is funding provided to companies and
entrepreneurs. It can be provided at different stages of their evolution, although it often
involves early and seed round funding.
The 3 main types are early stage financing, expansion financing,
and acquisition/buyout financing.
Venture capital is the investments of private capital in private companies i.e. companies
not listed on the stock exchange. Top VC Firms in India -
● Sequoia Capital. ● Accel.
● Blume Ventures.
● Elevation Capital.
● Tiger Global Management.
● Kalaari Capital.
● Matrix Partners.
● Nexus Venture Partners.

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 Issues and problems with venture capital

● Venture capitalists often move large sums of money, the capital exchange can take time
and business owners must consider it and work around delays. Additionally, they may
require certain milestones to be met before releasing funding.
● Venture capital financing is highly risky and chances of failure are high as it provides long
term startup capital to high risk-high reward ventures. Venture capital assumes four types
of risks
● Raising Another Fund.
● Winning Deals
● Pressure to Grow. When venture capitalists invest, they intend to see growth. Of course,
the founders also want to see their company grow. But investors' added pressure and input
might influence owners to make big decisions at an early stage that they would not
otherwise make.

Q. INTERNATIONAL ENTREPRENEURSHIP OPPORTUNITIES ?

o International Entrepreneurship is a combination of innovative, proactive, and risk-

seeking behavior that crosses national borders and is intended to create value in
organizations
o When an Entrepreneur goes to other countries to run and operate their business, then it
is known as International Entrepreneurship.
Famous Examples Of International Entrepreneurs
• Apple- Steve Jobs
• Google- Larry Page and Sergey Brin
• Microsoft- Bill Gates
• Facebook- Mark Zukerberg
• Yahoo- Jerry Yang and David Filo
• Amazon- Jeff Bezos

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 • Alibaba- Jack Ma
• Tiktok- Zhang Yiming

Importance of International Entrepreneurship

- A Decline in domestic Market-If the sales of products are low in the domestic market,
then the Entrepreneur has a very effective option to sell the same at the global market.
- Maturity Stage-First off, an Entrepreneur should grow their business within the
domestic nation, and then, the best time to move forward for international business is
when it reaches the maturity stage. When the business is well-developed in own nation,
then it is more significant to choose international Entrepreneurship.
- Enhance Reputation
- Customer Relationship Management
- Meet the Quality Expectations
- International Entrepreneurship Opportunities

Entrepreneurial opportunity means the situation where cost of production is less than the
selling price of the products or you can say where an entrepreneur can make profit by
selling his or her products.
● Cultural Opportunity -Every country has their own cultural priority and they love doing
it. But people across the country want to see the culture of other countries, how they live
their life and what things or products they use.
● Food Taste Opportunity - Pizza originated in Italy; hamburger was made in the USA and
firstly noodles were made in china. So, all the counties have their own food which it is
famous for. An entrepreneur can benefit from the food taste of a country. He can give tasty
food of his country to the rest of the world and make an international brand of it.
● Environmental Opportunity
● Filling a Need-International entrepreneurship opportunity can also exist in filling the need
of local person from any country

MODULE - 3
Q.ROLE OF CENTRAL AND STATE GOVERNMENT IN PROMOTING
ENTREPRENEURSHIP?

The government plays an important role in the development of entrepreneurship.

Government plays a very important role in developing entrepreneurship. Government
develops industries in rural and backward areas by giving various facilities with the
objective of balanced regional development. The government sets programmes to help
entrepreneurs in the field of technique, finance, market and entrepreneurial development so
that they help to accelerate and adopt the changes in industrial development.
The central and state governments have set up a number of institutions to promote
entrepreneurship. They are:
1. Small Industries Development Organization ‐ SIDO formulates policies for the
development of small scale industries in the country. It provides support for
promotion of rural entrepreneurship.
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 2. Management Development Institute ‐ MDI conducts management development
programs to improve managerial effectiveness in the industry.
3. Entrepreneurship Development Institute of India ‐ EDI has helped to set up
twelve state‐level exclusive entrepreneurship development institutes and centers.
4. All India Small Scale Industries Board ‐ AISSIB advises the Government on all
issues related to the small scale sector. It determines the programmes and policies
for the development of small scale industries.
5. National Institution of Entrepreneurship and Small Business Development ‐
NIESBUD supervises the activities of the different agencies involved in the
entrepreneurial development programmes.
6. National Institute of Small Industries Extension Training ‐ The objective of the
institute is to direct and coordinate the syllabi for training of small entrepreneurs. It
organizes seminars for small entrepreneurs and managers. vii. National Small
Industries Corporation Ltd. ‐ NSIC provides a vast‐market for the products of the
small industries through its marketing network. It also helps the small units in
exporting their products to foreign countries
a. The government set programmes to help entrepreneurs in the field of
technique, finance, market and entrepreneurial development so that they
help to accelerate and adopt the changes in industrial development
b. The government of India has come up with Rs. 10,000 cores' financial assistance to
motivate innovative start-ups

Q. INCENTIVES, SUBSIDIES & GRANTS ?

The term “incentive', generally means encouraging productivity. It is a motivational force,
which encourages an entrepreneur to take a right decision and act upon it. incentives include
concessions, subsidies and bounties. Incentives may be financial or non-financial. Non
financial incentives push an entrepreneur towards decision and action. Entrepreneurs in
India are offered a number of incentives. These incentives normally aim at reducing some
of the problems faced by small scale industrialists.
“Subsidy” means a single lump sum of money that is given by a Government to an
entrepreneur to cover the cost.
Provision of Government incentives like availability of power, concessional finance,
capital investment subsidies, transport subsidies, etc. aims at eliminating such
constraints and promoting entrepreneurship.

3 types of incentives :
• Economic Incentives
• Social Incentives
• Moral Incentives

Advantages of providing Incentives to Entrepreneurs

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 1. Decentralization of economic power: Incentives encourage prospective
entrepreneurs to take up industrial ventures and result in decentralizationof
economic power in a few hands.
2. Balanced regional development: Incentives are given to entrepreneurs
establishing industries in backward areas. Hence, it results in the dispersal of
industries over India’s geographical area and contributes to regional balanced
development.
3. Transformation of Technology: Incentives help in the transformation of
traditional technology into modern technology
4. Helps to Overcome Competition: Incentives help the entrepreneur to survive and
compete with the competitors. Some of the incentives are concerned with the
survival and growth of industries
a. A grant is a way the government funds your ideas and projects to provide
public services and stimulate the economy.
b. The three general types of federal grants to state and local governments are
categorical grants, block grants, and general revenue sharing
c. Government grants are awarded for the purpose of satisfying a greater need,
often one which helps society. For example, governments give away money
to help you get a higher education because out country is better off with
educated people.

Q . EXPORT ORIENTED UNIT (EOU) ?

● Export Oriented Units (EOUs) have been defined under the Foreign Trade Policy
(FTP) as those units undertaking to export their entire production of goods and
services [except permissible sales in Domestic Tariff Area (DTA) for manufacture
of goods, including repair, re-making, reconditioning, re-engineering, rendering of
services, development of software, agriculture including agro-processing,
aquaculture, animal husbandry, biotechnology, floriculture, horticulture,
pisciculture, viticulture, poultry and sericulture. Trading units are not covered under
the EOU
● The objectives of the EOU Scheme are to promote exports, enhance foreign
exchange earnings, attract investment for export production and employment
generation.
● the eligibility for setting up an EOU- Only projects having a minimum investment
of Rs.1 Crore in plant & machinery shall be considered for establishment as EOUs.

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Q.FISCAL AND TAX CONCESSIONS AVAILABLE FOR
ENTREPRENEURSHIP

● Every entrepreneur, new or experienced, must be aware of the various tax

provision for startups under ‘Startup India’ scheme
● Tax-benefits help new ventures to save a crucial amount of money and use it for
further expansion of their operations
● The government levy 25% tax plus cess and surcharge on new manufacturing
firms. However, companies with a turnover of less than 50 crore per annum have
to pay 29 percent tax. Medium and small companies with a turnover of less than
Rs. 50 crore are taxed at a rate of 25 percent.
some Tax Benefits for entrepreneurs in India:
● Tax holiday for three years:
● 20% exemption on Capital Gains
● Payment of EPF by the Government
★ Fiscal Concessions” has been produced as a guide for National Societies that
want to capitalize on every financial advantage available to them through their
governments.
★ Tax concessions are some relief given by income tax department of India ★ In
case of disability ,a fixed deduction of rs 50000 for a person with 40 %

Q .WHY LESS WOMEN ENTREPRENEURS?

Globally, men are more likely to start new ventures than women. Empirical evidence
suggests women have lower hubris and a higher level of humility, which negatively affects
their risk-taking behaviour and limits their engagement in entrepreneurship
India has between 13.5 and 15.7 million enterprises owned by women. Government
intervention, improved financial access and access to education led to an increase in
women-owned enterprises from 14% to 20% in the last decade. However, there are several
challenges that women entrepreneurs face that are not common for their male counterparts.
Some of the problems faced by women entrepreneurs are as follows

1. Problem of Finance:
Finance is regarded as “life-blood” for any enterprise, be it big or small. However, women
entrepreneurs suffer from shortage of finance on two counts. Secondly, the banks also
consider women less credit-worthy and discourage women borrowers on the belief that they
can at any time leave their business. Given such a situation, women entrepreneurs are bound
to rely on their own savings, if any and loans from friends and relatives who are expectedly
meagre and negligible. Thus, women enterprises fail due to the shortage of finance.

2. Scarcity of Raw Material:

Most of the women enterprises are plagued by the scarcity of raw material and necessary
inputs.

3. Stiff Competition:

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Women entrepreneurs do not have organizational set-up to pump in a lot of money for
canvassing and advertisement. Thus, they have to face a stiff competition for marketing
their products with both organized sector and their male counterparts. Such a competition
ultimately results in the liquidation of women enterprises.

4. Limited Mobility:
Unlike men, women's mobility in India is highly limited due to various reasons.

5. Family Ties
In India, it is mainly a women’s duty to look after the children and other members of the
family. Man plays a secondary role only. In case of married women, she has to strike a fine
balance between her business and family. Her total involvement in the family leaves little
or no energy and time to devote for business.
Support and approval of husbands seem necessary conditions for women’s entry into
business. Accordingly, the educational level and family background of husbands positively
influence women’s entry into business activities.

Q .Corporate entrepreneurship (CE) ? (Intrapreneurship)

• It is a term used to describe entrepreneurial behaviour inside established mid-sized and
large organizations.
● Corporate entrepreneurship refers to entrepreneurship. Activities, such as
innovation, venturing, and strategy. renewal, within existing firms
● Corporate entrepreneurship programs allow employees to tackle new opportunities,
immersing them in work which they find to be both challenging and interesting.
When employees are engaged and feel that their contributions are valued by the
company, productivity goes up
● Corporate entrepreneurship sets the context for innovation and growth. It provides
a systems view of the resources, processes and environment that are needed to
support, motivate and engage the organization in entrepreneurial thinking and action
● The goal of corporate entrepreneurship is to build capabilities that enable
organizations to accelerate new business growth
Benefits of corporate entrepreneurship include:
● Surges in growth.
● Decentralized management structures.
● Formal project processes.
● Open communication.
● Risk taking opportunities.
Characteristics of Successful Entrepreneurs

● Curiosity. Successful entrepreneurs have a sense of curiosity that allows them to

continuously seek new opportunities. ...
● Structured Experimentation. .
● Adaptability. .
● Decisiveness
● Teambuilding.
● Risk Tolerance. .

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 ● Comfortable with Failure.
● Persistence

Implementation
There is no perfect way to implement corporate entrepreneurship. There are however
three components that enable corporate entrepreneurship; people, process and place.

● People – leaders that possess a core set of action oriented competencies and
behaviours
● Process – systems and processes that support entrepreneurial thinking and action
● Place – an environment conducive to entrepreneurship, learning and growth

MODULE- 4
Q. INNOVATION ?
● Innovation is one of the most important topics concerning the long-term
competitiveness of companies.The word “innovation” is derived from the Latin
verb innovare, which means to renew
● Innovation, for its part, can refer to something new or to a change made
to an existing product, idea, or field
Innovation objectives are goals to improve things by an order of magnitude.
Innovation typically requires experimentation, risk taking and creativity. As such,
innovation objectives may involve greater levels of uncertainty than a typical business
objective that aims for predictable and quickly obtainable improvements
Innovation is how you transform your business into what it should be. You can innovate
in your product, process, or marketplace. There are three kinds of innovation: product,
process, and marketplace.

The Different Types of Innovation:

a. Process improvement and organizational innovation: The improvement of
processes through continuous improvement and the development of new solutions.
b. Product development: The development of innovative products or product
features.
c. Service innovation: The creation and introduction of new services for customers
and partners.
d. Business Model Innovation: The development of innovative business models and
new revenue streams.

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OTHER TYPES:

Advantages of innovation
o Improved productivity.
o Reduced costs.
o Increased competitiveness.
o Improved brand recognition and value.
o New partnerships and relationships.
o Increased turnover and improved profitability

Q .SUSTAINABLE v/s DISRUPTIVE INNOVATION ?

A sustaining innovation targets demanding, high-end customers with better

performance than what was previously available.
A disruptive innovation helps create a new market and value network

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 Q.PROCESS OF INNOVATION PHASES ?
Stage 1: Idea Generation and Mobilization-The generation stage is the starting line for new
ideas. Successful idea generation should be fueled both by the pressure to compete and by
the freedom to explore.

Stage 2: Advocacy and Screening-This stage is the time for weighing an idea’s pros and
cons

Stage 3: Experimentation-The experimentation stage tests the sustainability of ideas for

a particular organization at a particular time — and in a particular environment. At this
stage, it’s important to determine who the customer will be and what he or she will use the
innovation for.

Stage 4: Commercialization-In the commercialization stage, the organization should look

to its customers to verify that the innovation actually solves their problems and then should
analyze the costs and benefits of rolling out the innovation.

Stage 5: Diffusion and Implementation-The diffusion and implementation stages are,

according to the authors, “two sides of the same coin.” Diffusion is the process of gaining
final, company wide acceptance of an innovation, and implementation is the process of
setting up the structures, maintenance and resources needed to produce it.

Q.ROLE OF R&D ?
Research and development (R&D) include activities that companies undertake to innovate
and introduce new products and services. It is often the first stage in the development
process. The goal is typically to take new products and services to market and add to the
company's bottom line.
R&D is important for businesses because it provides powerful knowledge and insights, and
leads to improvements to existing processes where efficiency can be increased and costs
reduced. It also allows businesses to develop new products and services to allow it to
survive and thrive in competitive markets.

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 ▪ Research and development (R&D) is a valuable tool for growing and improving
your business. R&D involves researching your market and your customer needs and
developing new and improved products and services to fit these needs
▪ Innovation and R&D are two terms that are sometimes interchangeably used, but
carry uniquely different meanings. Innovation is driving new value and value
streams, whereas R&D is focusing on what you might already have.
▪ An R&D strategy is defined a coherent set of interrelated choices across decision
concerning
▪ Global R&D helps companies to be able to compete in global markets, and it is
important for them to expand and grow their R&D infrastructure. Global R&D
provides a platform for the development of an innovation strategy that is world class
and that can attract experts from other countries.

Q.TECHNOLOGICAL INNOVATION ?

Technology can help to reduce poverty by creating more jobs and allowing those in
developing countries to reach a wider market. Having access to the internet, combined with
digital literacy, can open up more opportunities for more people to economically support
themselves.

• A technological innovation is a new or improved product or process whose

technological characteristics are significantly different from before.
• Technological innovation is an extended concept of innovation.
• One of the most useful technological innovations examples is the innovations in
renewable energy. The innovations include technological inventions such as wind
turbines, photovoltaic cells, concentrated solar power, geothermal energy, ocean wave
power and many other emerging innovations
• Technological innovation brings benefits. It increases productivity and brings
citizens new and better goods and services that improve their overall standard of
living. ... They may try to derail opportunities for innovation and entrepreneurship that
could lead to more growth and prosperity over the long haul

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Challenges related to innovation and technology :
● Developing Custom Code Is Hard. ...
● Skills Gap. ...
● Technology Silos Within the Company. ...
● Technical Debt. ...
● Cloud Computing. ...
● Keeping Up with Constant Technology Evolution. ...
● Overcoming Technology Issues.
Impact of technological innovation : New digital technologies more and more
diffuse into the economy. Due to this digitisation, machines become increasingly
able to perform tasks that previously only humans could do. Production processes
and organizations are changing, new products, services and business models
emerge.
To Overcome The Challenges And Enable Innovation.
1. Illustrate how data security, data quality, and data integrity are designed into the
solution. .
2. Use collaboration as a fulcrum. .
3. Focus on risk management and change management. ...
4. Invest in cross-disciplinary staff development. ...
5. Lead by example and action
Technology can improve the way your employees do their jobs, making them more efficient
and free from the burden of tedious, repetitive tasks. Technology simplifies many job
functions, which in turn strengthens performance and improves job satisfaction.
Technologies have made elements of business such as manufacturing, communication,
purchasing, sales and advertising easier and more effective for businesses. Changes in
technology have included: Email – electronic mail enables written messages to be sent
instantly to others, and files can be shared as attachments.
Businesses are affected by changes in the technological environment. ... Technological
change offers risks, opportunities and threats to businesses. Some businesses can leverage
changing technology to improve products and processes or even create new products and
processes that will expand markets and profits

Q. Innovation Matrix?
● An Innovation Matrix is a visualization of how you can easily identify the different
kinds of innovation based on whatever goal is necessary for a certain perspective.
For example, understand how to accelerate innovation, understand where to
innovate, understand how to manage innovation, etc.
An Innovation Matrix helps a company with the following aspects in relation to an
innovation:
● To help in finding the source of innovation.
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 ● To find out its strategic relevance.
● And, to find the type of governance system to use

This matrix can include many variables to help companies make a decision, but the two
most used variables are Competence and Commitment.
● This Innovation Matrix primarily talks about four types of innovations. These four
innovations are – Breakthrough Innovation, Disruptive Innovation, Basic Research,
and Sustaining Innovation.
● This matrix evaluates these four innovations in two aspects. First is how well a
company is able to define the problem for which they need a particular type of
innovation. This aspect comes on the vertical axis.
● And, the second crucial aspect that helps in choosing the right innovation strategy is
defining the domain and skills that are necessary to address the issue. This aspect
comes on the horizontal axis.

Breakthrough Innovation
Other names for this innovation are radical innovation or revolutionary innovation. Such
types of innovation create a paradigm shift. For example, the invention of a computer chip,
the discovery of the structure of DNA.
Disruptive Innovation
Such innovation helps to make available expensive or highly sophisticated products or
services that were previously available to high-end users, to a broader population. So, such
an innovation proves disruptive for the already established players in the industry. This
could be in terms of ease of use, easy availability with less costs, etc.
Basic Research

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Groundbreaking innovations do not just happen, rather there is usually a major discovery
preceding it. So, the basic research here means that companies invest in R&D with a hope
to use that research to come up with an innovation in the future.

Sustaining Innovation
Such an innovation leads to further improvement and expansion of current product/service
possibilities.

MODULE – 5
Q. INNOVATION PROJECTS ?
Innovation is using new or novel ideas and approaches to solve existing problems.
Innovation also means being creative. Innovation projects refer to those projects that are
going to innovate current systems or practices with newer things, or generally speaking,
bringing something newer to replace existing ones within a given scope

Methods for evaluation of innovation projects

Quantitative Methods for Choosing Projects
As the name implies, “Quantitative methods of analyzing new projects usually entail
converting projects into some estimate of future cash returns from a project” ( Thus, with
this method, managers are able to use certain formulas to obtain mathematical and statistical
comparisons.
Discounted Cash Flow- This method is for “assessing whether the anticipated future
benefits are large enough to justify expenditures”

Q.CLOSED INNOVATION OPEN INNOVATION ?

• The main difference between open and closed innovation lies in the way the
innovation comes about. Companies engaging in closed innovation carry out work
in a self-contained innovative environment, whilst those using open innovation
methods rely on external knowledge sources for their innovation management
strategies.
• Open innovation is a business management model for innovation that promotes
collaboration with people and organizations outside the company
• Benefits of open innovation : The process of developing innovations becomes much
more efficient and faster.
• There is no need to maintain an entire department of employees on a permanent
basis, which means that the costs of innovation are significantly reduced.
• Opportunity to get an objective expert assessment from the outside.
• Ability to choose among numerous startups and projects.
• Benefit of closed innovation: All work on innovations is under the full control of
the top management of the company. Information about innovative developments
does not spread to the outside world, which means that it creates additional
competitive advantages in the form of technologies that are unique for the market.

Q. Theories of Innovation
1. E.M Rogers Diffusion of innovation (DOI)
Diffusion of Innovation (DOI) Theory, developed by E.M. Rogers in 1962, is one of the
oldest social science theories. It originated in communication to explain how, over time,
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an idea or product gains momentum and diffuses (or spreads) through a specific
population or social system. The end result of this diffusion is that people, as part of a
social system, adopt a new idea, behavior, or product. Adoption means that a person does
something differently than what they had previously (i.e., purchase or use a new product,
acquire and perform a new behavior, etc.). The key to adoption is that the person must
perceive the idea, behavior, or product as new or innovative. It is through this that
diffusion is possible.
When promoting an innovation, there are different strategies used to appeal to the
different adopter categories.
1. Innovators - These are people who want to be the first to try the innovation. They
are venturesome and interested in new ideas. These people are very willing to take
risks, and are often the first to develop new ideas. Very little, if anything, needs to
be done to appeal to this population.
2. Early Adopters - These are people who represent opinion leaders.
3. Early Majority - These people are rarely leaders, but they do adopt new ideas
before the average person. That said, they typically need to see evidence that the
innovation works before they are willing to adopt it. Strategies to appeal to this
population include success stories and evidence of the innovation's effectiveness.
4. Late Majority - These people are skeptical of change, and will only adopt an
innovation after it has been tried by the majority. Strategies to appeal to this
population include information on how many other people have tried the
innovation and have adopted it successfully.
5. Laggards - These people are bound by tradition and very conservative. They are
very skeptical of change and are the hardest group to bring on board. Strategies to
appeal to this population include statistics, fear appeals, and pressure from people
in the other adopter groups.

Limitations of Diffusion of Innovation Theory

There are several limitations of Diffusion of Innovation Theory, which include the
following:

● Much of the evidence for this theory, including the adopter categories, did not
originate in public health and it was not developed to explicitly apply to adoption of
new behaviors or health innovations.
● It does not foster a participatory approach to adoption of a public health program.
● It works better with adoption of behaviors rather than cessation or prevention of
behaviors.

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 ● It doesn't take into account an individual's resources or social support to adopt the
new behavior (or innovation).

2. Schumpeter’s Innovation theory of profit

The Innovation Theory of Profit was proposed by Joseph. A. Schumpeter, who believed
that an entrepreneur can earn economic profits by introducing successful innovations.In
other words, innovation theory of profit posits that the main function of an entrepreneur is
to introduce innovations and the profit in the form of reward is given for his performance.
According to Schumpeter, innovation refers to any new policy that an entrepreneur
undertakes to reduce the overall cost of production or increase the demand for his products.

Thus, innovation can be classified into two categories; The first category includes all those
activities which reduce the overall cost of production such as the introduction of a new
method or technique of production, the introduction of new machinery, innovative methods
of organizing the industry, etc.

The second category of innovation includes all such activities which increase the demand
for a product. Such as the introduction of a new commodity or new quality goods, the
emergence or opening of a new market, finding new sources of raw material, a new variety
or a design of the product, etc.

The innovation theory of profit posits that the entrepreneur gains profit if his innovation is
successful either in reducing the overall cost of production or increasing the demand for his
product.

Q. SOCIAL INNOVATIONS ?
● Social innovation refers to the design and implementation of new solutions that
imply conceptual, process, product, or organizational change, which ultimately aim
to improve the welfare and wellbeing of individuals and communities.

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 ● Social innovation provides a unique opportunity to step back from a narrow way of
thinking about social enterprises, business engagement, and philanthropy and to
recognize instead the interconnectedness of various factors and stakeholders.
● Common features of social innovation: cross-sectoral; creates new roles and
relationships;
● Social innovations are new social practices that aim to meet social needs in a better
way than the existing solutions, resulting from - for example - working conditions,
education, communitydevelopment or health. These ideas are created with the goal
of extending and strengthening civilsociety. Social innovation includes the social
processes of innovation, such as opensource methods and techniques and also the
innovations which have a social purpose—like activism, virtual volunteering,
microcredit, or distance learning

The three phases of the social innovation process are as follows:

1. Team cooperation and its building: With different minds and knowledge, the
key to work effectively is by training the members on principles, tools and
techniques, which could give a sense to everyone regarding the support
2. Understanding local challenges: Organizing workshops to pave the way for
discussions between stakeholders and other required users. They could be
identified, and further ideas can be worked on while co-creating solutions to
have a vast impact
3. Implementing the solutions: Backed by innovative ways, the methods are put
into effect with new collaborations and exploring different ways.
A social innovation process consists of a sequence of activities that seeks to find
solutions to a specific challenge. The process itself brings a new approach that has social
impact in its means (process) and ends (solution).

Importance of social innovation:

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Social innovation is important as it can define and reinforce company culture. Each
employee needs to be included and to feel important as a valued member of a team.
Social innovation can bond employees and also bring compassion and understanding into
the workplace

1. Technology: Every day, new products are coming out, trying to alleviate the
quality of life or health. Poverty and hunger are primary areas in this with a
focus.
2. Collaboration of communities: Social innovation calls for moving together
and joining forces for different sectors to get solutions together, not
individually.
3. Knowledge Sharing: Social Innovation allows for assessing and measuring the
results of the projects.

Examples of social innovation :Social innovation includes the social processes of

innovation, such as open source methods and techniques and also the innovations
which have a social purpose—like activism, virtual volunteering, microcredit, or distance
learning.

Q. ARCHITECTURAL AND MODULAR INNOVATION ?

● Architectural innovation is described as the reconfiguration of existing product

technologies that creates an improvement in the ways in which components, some
of which are not necessarily innovative together, are combined.
● The importance of innovation architecture is to start with a vision and generate a
company platform designed for new processes, create an open-culture and pursue a
unique management system.
● Architectural innovation refers to destroying the usefulness of a company’s
architectural knowledge but preserving the usefulness of the knowledge about the
firm’s products components

Popular Architectural Innovation Examples: Winchester Disk Drives, Desktop

Photocopiers, Multi-core Processor etc

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• Incremental innovation introduces quality improvements in core components. The
word renovation would more precisely describe this type of innovation.
• Modular innovation may result in the complete redesign of core components, while
leaving linkages between the components unchanged.
• Architectural innovation changes the nature of interactions between core components,
while reinforcing the core design concepts.
• Radical innovation introduces a new meaning, potentially a paradigm shift.
• Modular Innovation is a technique that uses either a complete redesign of a product
or service or core elements of a product while leaving the links between these elements in
the usual positions. It is a framework that allows data to be shared and reused across
applications, enterprises, and communities.
• Modular innovation has been defined in the management literature as improvements
in individual components
• Modular innovation may result in the complete redesign of core components, while
leaving linkages between the components unchange

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