SNS COLLEGE OF ENGINEERING

COIMBATORE
MG6071/ENTREPRENEURSHIP DEVELOPMENT
IAE-I ANSWER KEY
1. Define the term Motivation
The term ‘motivation’ has been derived from the word ‘motive’. Motive may be defined as an inner
state of our mind that activates and directs our behavior. It makes us move to act. It is always
internal to us and is externalized via our behavior. Motivation is one’s willingness to exert efforts
towards the accomplishment of his/her goal. Let us consider a few important definitions on
motivation that will help us understand the meaning of motivation more clearly.
2. Define the term entrepreneurship
 Entrepreneurship is one who undertakes innovations, finance and business acumen in an effort
to transform innovations into economic goods.
 Entrepreneurship is the combining of all factors of production which include LAND,LABOUR and
CAPITAL
 The process in which an entrepreneur starts and operates his business enterprise is
entrepreneurship
3. Describe the term Entrepreneur
 An entrepreneur is an individual who, rather than working as an employee, founds and
runs a small business, assuming all the risks and rewards of the venture. The
entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services
and business/or procedures.
 A person who sets up a business or businesses, taking on financial risks in the hope of
profit. "many entrepreneurs see potential in this market"
 An entrepreneur is an individual who identifies a need in the marketplace and works to
fulfill it.
4.List the factors affecting entrepreneurial growth
 Lack Of Adequate Overhead Facilities
 Great Risk
 Non Availability Of Capital
 Social Factors
 Political Factors
 Economic Policies
5. Name some women Entrepreneurs in India
1)ADITI GUPTA Founder, Menstrupedia
2) ANISHA SINGH Founder & CEO, Mydala.com
3) NEERU SHARMA Co-founder, Infibeam.com
6. What is Innovation
 The process of translating an idea or invention into a good or service that creates value or
for which customers will pay.
 To be called an innovation, an idea must be replicable at an economical cost and must satisfy
a specific need.
 In business, innovation often results when ideas are applied by the company in order to
further satisfy the needs and expectations of the customers.
 Part-B
1.

2. Meaning:
As the term itself denotes, EDP is a programme meant to develop entrepreneurial
abilities among the people. In other words, it refers to inculcation, development, and
polishing of entrepreneurial skills into a person needed to establish and successfully run
his / her enterprise. Thus, the concept of entrepreneurship development programme
involves equipping a person with the required skills and knowledge needed for starting
and running the enterprise.
Need for EDPs:
That, entrepreneurs possess certain competencies or traits. These competencies or traits
are the underlying characteristics of the entrepreneurs which result in superior
performance and which distinguish successful entrepreneurs from the unsuccessful ones.
The major objectives of the Entrepreneurship Development Programmes
(EDPs) are to:
a. Develop and strengthen the entrepreneurial quality, i.e. motivation or need for
achievement.
b. Analyse environmental set up relating to small industry and small business.
c. Select the product.
d. Formulate proposal for the product.
e. Understand the process and procedure involved in setting up a small enterprise.
f. Know the sources of help and support available for starting a small scale industry.
g. Acquire the necessary managerial skills required to run a small-scale industry.
h. Know the pros and cons in becoming an entrepreneur.
i. Appreciate the needed entrepreneurial discipline.
j. Besides, some of the other important objectives of the EDPs are to:
k. Let the entrepreneur himself / herself set or reset objectives for his / her enterprise
and strive for their realization.
l. Prepare him / her to accept the uncertainty in running a business.
m. Enable him / her to take decisions.
 n. Enable to communicate clearly and effectively.
o. Develop a broad vision about the business.
3

4 Who is an Entrepreneur?
Very basically speaking, an entrepreneur is a one-man show that runs entrepreneurship.
However, such a person usually has some unique attributes that allow him to be
successful in his endeavors. He is essentially an initiator and a leader. He brings business
ideas to fruition thus starting off his venture.
Who is a Manager?
A manager, on the other hand, is not an owner of an enterprise. Instead, he is the one
that is responsible for the management and administration of a group of people or a
department of the organization. His day to day job is to manage his employees and
ensure the organization runs smoothly.

Part -C
1 Youth are the most important and dynamic segment of the population in any country. It
is believed that developing countries with large youth population could see tremendous
growth, provided they invest in young people’s education, health and protect and
guarantee their rights.
  It is no doubt to say that today’s young are tomorrow’s innovators, creators,
builders and leaders. But they need the required support in terms of good health
and opportunities skills to transform the future.
 The economic trigger happens when a county’s more hands to work available
than more mouths to feed. To put it succinctly, working age population has to be
larger than the dependent population.
 A developing country like India has huge opportunities and challenges with the
globalization and rising of knowledge economy.
 United Nations Population Fund’s (UNFPA) State of the World’s Population report
says that India has world’s largest youth population with 356 million 10-24 year-
old, whopping 28 percent of the total population.
 The youth potential not only to meet its own manpower needs but it can also
cater to the manpower demand of other nations.
Technical education should aim at raising skilled workforce that is employer ready.

 A spirit of entrepreneurship has to be inculcated right from the school to create

more job providers than job seekers for a vibrant economy. It helps youth
engaged in innovation, production, distribution, consumption, regeneration, and
etc.
 Systemic linkages have to be established to link education with training,
placement and real life scenario to survive and sustain in the competitive world.
 Youth are powerful. They represent courage with wisdom and energy with will
power to take leadership. The energy and wisdom has to respected, guided and
nurtured for future roles. Youths needs to be in leadership role.
 Education programs should aim to teach and young minds right from the school
level the importance of choosing right people who would take charge of
governance. Conventionally, youth have been asked to keep away from politics.
 Youth should be motivated to consider politics as a means to serve the nation.
They should be oriented on anti-corruption drives with focus on prevention,
education, and strategies for fighting corruption.
 Good governance is realistic with youth empowerment.
2 Entrepreneurs are considered as backbone for a country’s economic development.
Entrepreneurs are playing an important role in enhancing the standard of living of people and
economic development of a country. In recent years economic growth has slowed down
globally which reflect in the form of inflation and high rate of unemployment rate. To
overcome this challenge most governments have taken different measures to alleviate these
problems
An entrepreneur plays an important role in creation of employment and income of people in
a country. An entrepreneur faces more risk during the process of innovation to the industry.
By effective usage of natural resource and human resource the entrepreneur acts as catalyst
towards economic development.
Entrepreneurship is a combination of skilled human resource, capital and technology. This is
applicable to small scale business as well as large scale business. Therefore entrepreneurship
is mostly involved in production of goods and services and thereby creates wealth. Through
this process entrepreneurship generates employment and increase per capita income.
1. Wealth Creation and Sharing:
2. Create Jobs
3. Balanced Regional Development.
4. GDP and Per Capita Income
5. Standard of Living
6. Exports
7. Community Development
So, there is a very important role for entrepreneurs to spark economic development
by starting new businesses, creating jobs, and contributing to improvement in
various key goals such as GDP, exports, standard of living, skills development and
community development.