PGDM Study Material: Entrepreneurship
Perspectives + Design Thinking
Use these concise, exam-ready notes with definitions, frameworks, examples, and quick
contrasts.
Unit I: Entrepreneurship Perspectives
1) Introduction and Importance of Entrepreneurship
Definition
Entrepreneurship is the process of identifying opportunities, mobilizing resources, and
creating value by launching and growing ventures under uncertainty.
Why it matters
Economic growth: new jobs, higher productivity, innovation spillovers.
Social impact: solutions to underserved needs, inclusive growth.
Regional development: clusters, local supply chains, exports.
Personal development: autonomy, problem-solving, leadership.
2) Types of Entrepreneurship
By venture goal
Opportunity-based: pursues an identified market gap with growth intent.
Necessity-based: starts due to lack of alternatives; lower growth orientation.
By ownership/structure
Solo, partnership, family business, corporate venture (intrapreneurship).
By innovation intensity
Lifestyle, small business, scalable startup, high-tech/deep-tech, platform-based.
By impact
Social entrepreneurship: mission-first ventures solving social/environmental problems
with financially sustainable models.
Green/eco-entrepreneurship: sustainability-oriented offerings.
Rural/agripreneurship: agri-value chain ventures.
Women/Student entrepreneurship: demographic focus.
By funding path
Bootstrapped, angel-backed, VC-backed, debt-funded, crowdfunding.
3) Entrepreneurs vs Managers
Orientation
Entrepreneur: opportunity-centric, risk-bearing, creates organization.
Manager: resource-centric, risk-averse within constraints, operates organization.
Time horizon
Entrepreneur: long-term vision, early ambiguity.
Manager: near-to-mid-term goals, process optimization.
Reward basis
Entrepreneur: residual claimant (profits/equity value).
Manager: salary/bonuses (performance against targets).
Skills focus
Entrepreneur: opportunity recognition, resource orchestration, storytelling, resilience.
Manager: planning, control, coordination, execution excellence.
4) Characteristics and Competencies of Entrepreneurs
Mindset traits
Proactivity, internal locus of control, tolerance for ambiguity, resilience, calculated risk-
taking, growth mindset.
Core competencies (can be developed)
Opportunity recognition: scanning, pattern recognition.
Effectuation: start with means, leverage partnerships, affordable loss.
Resource mobilization: capital, talent, networks, strategic partnerships.
Customer discovery: interviewing, problem validation, market sizing.
Business modeling: revenue logic, unit economics.
Selling & storytelling: pitching to customers/investors, negotiations.
Execution: prioritization, MVP building, metrics (AARRR, CAC, LTV).
Leadership: hiring, culture, feedback loops.
5) Entrepreneurship Ecosystem in India (high-level elements)
Policy & regulation
Startup recognition benefits, simplified incorporation, IP support, credit guarantee
schemes, sectoral policies.
Finance
Angel networks, early-stage funds, SIDBI lines, public sector lending, incubator grants.
Support infrastructure
Incubators/accelerators (academic & private), co-working, maker spaces.
Markets & industry
Digital infrastructure (UPI, Aadhaar), widespread mobile internet, large domestic
market, B2B and SaaS opportunities.
Human capital
Engineering/management talent pool, diaspora networks, gig workforce.
Culture
Growing acceptance of startup careers, success stories, hackathons, campus
competitions.
6) Family Business: Scope of Expansion/Diversification
Strengths
Patient capital, long-term relationships, tacit know-how, strong brand in niches.
Challenges
Succession, professionalization, governance, emotional biases, concentration risk.
Expansion pathways
Market penetration: deeper share in current geography.
Market development: new regions, export markets.
Product development: adjacent SKUs leveraging existing channels.
Diversification:
Related: move along value chain (backward/forward integration), exploit brand
adjacencies.
Unrelated: risk-spreading via separate professional teams and governance.
Professionalization levers
Clear role separation (family vs professional), boards/advisors, KPIs, MIS, SOPs, ESOPs,
succession planning.
Unit II: Design Thinking — Idea to Opportunity
1) Creativity and Innovation
Creativity
Generating novel and useful ideas; divergent thinking.
Innovation
Converting ideas into implemented solutions that create value; convergent thinking plus
execution.
Types of innovation
Product, process, business model, service, organizational.
Incremental vs radical; sustaining vs disruptive.
Idea quality principles
Desirability (user wants), Feasibility (technically doable), Viability (economically
sustainable), and Responsibility (ethical/societal impact).
2) Design Thinking Process (5 classic stages)
1. Empathize
Understand users through interviews, observation, journey mapping, shadowing.
Tools: empathy maps, personas, job-to-be-done (JTBD) statements.
2. Define
Synthesize insights into a clear problem statement.
Tools: Point-of-View (POV) statements, HMW (How Might We) questions.
3. Ideate
Generate many solutions; defer judgment.
Tools: brainstorming, SCAMPER, mind mapping, 6-3-5 method, crazy 8s.
4. Prototype
Build quick, low-cost representations to learn fast.
Tools: paper mockups, wireframes, clickable prototypes, role plays, service blueprints.
5. Test
Get user feedback; iterate; refine problem-solution fit.
Tools: usability tests, A/B tests, concierge/MVP experiments.
Note: Stages are non-linear—expect loops and pivots.
3) Design Thinking Tools to Generate and Analyze Ideas
For generation (divergent)
Brainstorming rules: go for volume, build on others’ ideas, no criticism, encourage wild
ideas, one conversation at a time, visuals.
SCAMPER: Substitute, Combine, Adapt, Modify/Magnify/Minify, Put to other use,
Eliminate, Reverse/Rearrange.
Analogies and “what if” prompts; TRIZ contradictions.
For analysis (convergent)
Feasibility-Desirability-Viability matrix.
Impact vs Effort matrix; ICE/RICE scoring.
Kano model (basic, performance, delighters).
Assumption mapping; risk matrix.
Value Proposition Canvas; Business Model Canvas.
Customer journey map and service blueprint to locate pain points and failure points.
4) Identifying and Analyzing Opportunities
Process
1. Environment scanning: trends (PESTLE), industry forces (Porter’s 5F), jobs-to-be-done.
2. Problem discovery: user interviews, shadowing, complaint mining, forum reviews.
3. Market sizing: Top-down (TAM/SAM/SOM), Bottom-up (unit economics × reachable
customers).
4. Competitive mapping: direct/indirect substitutes, switching costs, wedge strategy.
5. Solution fit: MVP hypothesis, testable assumptions, early adopter profile.
6. Economics: CAC, LTV, contribution margin, payback period.
Opportunity filters (score 1–5)
Pain severity, frequency, willingness to pay, access to decision-maker, segment
size/growth, moat potential, founder-idea fit, regulatory ease.
5) From Idea to Opportunity: A Fast Track Template
Problem statement (POV): User + need + insight.
HMW question to open solution space.
Top 3 solution concepts (1–2 lines each).
Quick feasibility notes: tech, operations, partners.
MVP experiment: what to test this week; success metric.
Risk register: top assumptions; test plan; fallback options.
Exam-Oriented Contrasts and Short Notes
Entrepreneur vs Manager (3 points)
Creates vs operates; risk-bearing vs risk-controlled; opportunity search vs resource
optimization.
Opportunity vs Necessity Entrepreneurship
Pull vs push motivation; high-growth vs survival orientation.
Social Entrepreneurship (2–3 points)
Mission-first with financial sustainability; dual bottom line; metrics include impact
indicators.
Design Thinking vs Traditional Problem Solving
Human-centered, iterative, prototype-driven vs analysis-first, linear, requirements-
heavy.
Innovation types (example each)
Product: new feature; Process: automation; Business model: subscription shift.
Quick Frameworks to Memorize
PESTLE for scanning: Political, Economic, Social, Technological, Legal, Environmental.
Business Model Canvas blocks: Value Proposition, Customer Segments, Channels,
Relationships, Revenue, Key Activities, Key Resources, Key Partners, Cost Structure.
AARRR metrics: Acquisition, Activation, Retention, Revenue, Referral.
Unit economics: Contribution margin = Price − Variable cost − Direct channel costs.
Practice Prompts (use for short answers)
1. Define design thinking and explain how “empathize” differs from “define” with one tool each.
2. List four competencies of successful entrepreneurs and link each to a design thinking stage.
3. Given a family-run FMCG distributor, propose one related and one unrelated diversification
with a 2-line justification.
4. Use the Feasibility-Desirability-Viability triad to evaluate a student-run meal subscription
idea.
Mini-Case Template (5–7 marks)
Context: Who is the user? What job are they trying to get done?
Problem: Top 2 pains; evidence from interviews/observations.
Solution concept: One-sentence value proposition.
Prototype: The quickest representation; what you want to learn.
Metric: A single measurable outcome to judge progress.
Risk: Biggest assumption and how you will test it next week.
Use these notes to structure 3–8 mark answers crisply, and expand examples for longer
questions.
