PROJECT MANAGEMENT &

ENTREPRENEURSHIP
KHU-702
SYLLABUS
SYLLABUS
UNIT-1
 Entrepreneur
• Entrepreneur (Oxford Dictionary) – Person who
undertakes an enterprise with chances of profit or loss. (As
I have understood,
• Entrepreneur is a person who undertakes a business activity
of which he has no background and faces considerable risks
in the process. If either of the two elements, i.e., “no
background” or “considerable risk” is missing in the
venture, it is no entrepreneurship).
• The word ‘entrepreneur’ immediately conjures up images
of business tycoons like L.N. Mittal or Bill Gates. While
these rich, famous and successful individuals can be
inspirational for some, most of us would find it difficult to
associate our own lives, personalities or abilities with them.
• Entrepreneurship is the tendency of a person to
organize the business of his own and to run it
profitably, using all the qualities of leadership,
decisions making and managerial caliber etc.
• Entrepreneurship is often viewed as a function, which
involves the exploitation of opportunities, which exist
within a market. Such exploitation is most commonly
associated with the direction and/or combination of
productive inputs.
• Entrepreneurs usually are considered to bear risk while
pursuing opportunities, and often are associated with
creative and innovative actions.
• Entrepreneurial in terms of self-development (an athlete
constantly practicing to improve his/her performance and
stamina), in terms of self-decision making (a man deciding not to
marry and devoting the rest of his life in the service of God), in
terms of creativity (a housewife using waste material for making
a piece of art), risk-taking (a teenage boy trying bungee jumping).
• The term “entrepreneur” is often used interchangeably with
“entrepreneurship”.
• Entrepreneurship is a role played by or the task performed by the
entrepreneur.
• The central task of the entrepreneur is to take moderate risk and
invest money to earn profits by exploiting an opportunity.
• Hence, anyone who exhibits the
characteristics of self-development, creativity,
self-decision making and risk-taking can be
rightly called as a person with entrepreneurial
traits.
• When these traits are exhibited by a person
running a business he can rightly be called an
entrepreneur.
• The reverse is also true – a businessman who does not
take risks, or does not aim for self-development ,is not
creative and one who cannot make a decision on his
own, cannot be rightly called as an entrepreneur.
• And in the present competitive world, the latter is
thrown out of the business by the market forces over a
period of time.
• Richard Cantillion – an entrepreneur is someone who
takes the risk of running an enterprise by paying a
certain price for securing and using resources to make
a product and reselling the product for an uncertain
price.
 Definitions of an entrepreneur
• Richard Cantillon: As a person, who pays a certain price to a
product to resell it at an uncertain price, thereby making decisions
about obtaining and using the resources while consequently
admitting the risk of enterprise?

• Adam Smith: An individual, who undertakes the formation of an

organization for commercial purposes by recognizing the potential
demand for goods and services, and there by acts as an economic
agent and transforms demand into supply.

• Joseph Schumpeter: Entrepreneurs are innovators, who use the

process of entrepreneurship to shatter the status quo of the
existing products and services, to set new products, new services.
He describes entrepreneurs as innovators.
• Peter F. Drucker: An entrepreneur is one who always searches for
changes, responds to it and exploits it as an opportunity. He
believes in increasing the value and consumer satisfaction. Thus, a
professional manager who mobilises resources and allocates them
to make a commercial gain from an opportunity, is also called an
entrepreneur.
 
• To sum up, entrepreneurship may be defined as a systematic
innovation which consists of the purposeful and organised search
for changes, and a systematic analysis of the opportunities that
such change might offer for economic and social transformation.
 Charm of becoming an
entrepreneur
• Opportunity to create one’s own destiny
• Opportunity to make differences
• Opportunity to reach one’s full potential
• Opportunity to reap impressive profits
• Opportunity to contribute to society
• Opportunity to do what one enjoys
 Pros & Cons
• You are the boss • You are alone
• All profits are yours • All decisions are yours
• There will be great variety • All losses are yours
in roles and tasks • Work may not be satisfying
• Increases self confidence • You will need to put in long
• Work can be very satisfying hours
• Success will give you • Lack of success will effect
immense satisfaction self esteem
• Exiting the business is
difficult
• Pressures will affect social
and family life
 Characteristics of Entrepreneur

1. Vision :
An entrepreneur has a dream and he visualizes the ways
and means to achieve dream. In doing so he visualizes :
– Market Demands
– Soicio-Economic
– Technological Environment
And then based on these dynamic, he visualizes a future for his
business venture.
2 Knowledge :
An entrepreneur has full knowledge about all the
technicalities of his business- be it technological,
operational, financial or market dynamic.
3. Desire to succeed :
An entrepreneur has a strong desire to succeed in life.
Their dreams are not just limited to achieving one
single goal but they constantly work to achieve higher
goals
4. Independence :
An entrepreneur needs independence in work and
decision-making. They don't follow the rules of
thumb but make their own rules and destiny.
5. Optimism :
Entrepreneurs are highly optimistic about achieving their
vision.
6. Value Addition :
Entrepreneurs do not follow the conventional rules of
thumb. They have a constant desire to introduce
something new to the existing business. They create,
innovate or even add value to the existing
products/services.
7. Leadership :
An entrepreneur exhibits the qualities of leader. They are
good planner, organizers, have good communication
skill, good decision makers, take initiative to
implement plans and are result-oriented.
 Characteristics of Entrepreneur
Other characteristics are:
 
1. Mental ability
2. Clear objectives
3. Business secrecy
4. H.R. ability
5. Communication ability
6. Technical knowledge
7. Achievement– oriented
8. Perseverance
9. Ethical
10. Motivator
11. Self– confident
12. Long term involvement
13. High energy level
14. Problem solver
15. Initiator
16. Goal setter
 Enterprise
• Enterprise (Oxford Dictionary) – Bold Undertaking
• An entrepreneur is a person who starts an enterprise.
The process of creation is called entrepreneurship. The
entrepreneur is the actor and entrepreneurship is the
act.
• The outcome of the actor and the act, is called the
enterprise.
• An enterprise is the business organization that is
formed and which provides goods and services, creates
jobs, contributes to national income, exports and
contributes to the overall economic development.
 Entrepreneurship
• Entrepreneurship refers to a process of action an
entrepreneur undertakes to establish his enterprise.
• Entrepreneurship can be defined as an ability to
discover, create or invent opportunities and exploit them
to the benefit of the society, which in turn brings
prosperity to the innovator and his organization.
• Entrepreneurship is the process of creating something
new, with value, by devoting the necessary time and
effort, assuming the accompanying financial, psychic,
and social risks, and receiving the resulting rewards of
monetary and personal satisfaction and independence.
• It is a philosophy or process through which an
entrepreneur seeks innovation and employment.
• . Narrower definitions of entrepreneurship are
described as the process of designing,
launching and running a new business.
• Entrepreneurship and Management are close
related terms in business, there is a definite
difference between both these processes. In
this article you will learn more about these
two terms.
 Theories of Entrepreneurship

Entrepreneurship a Function of Innovation: Joseph A. Schumpeter (1934),

for the first time, put the human agent at the centre of the process of
economic development and assigned a critical role to the
entrepreneurship in his theory of economic development. He considered
economic development as a discrete technological change. The process of
development can be generalized by five different types of events:
(i) Firstly, it can be the outcome of the introduction of a new product in the
market.
(ii) Secondly, it can be the result of a new production technology.
(iii) Thirdly, it may arise on account of a new market.
(iv) Fourthly, it may be the consequences of a new source of supply.
(v) Fifthly, it may be due to the new organization of any industry.
According to Schumpeter
(i) Development is not an automatic process, but it must be deliberately
and actively promoted by some agency within the system, Schumpeter
called the agent who initiates the above changes as an entrepreneur.
(ii) He is the agent who provides economic leadership that changes the
initial conditions of the economy and causes discontinuous dynamic
changes.
(iii) By nature, he is neither technician, nor a financier, but he is
considered an innovator.
(iv) Entrepreneurship is not a profession or a permanent occupation and
therefore, it cannot formulate a social class like capitalists.
(v) Psychological, entrepreneurs are not solely motivated by profit.
 Entrepreneur vs Entrepreneurship
• The term “entrepreneur” is often used interchangeably
with entrepreneurship but, conceptually, they are different,
yet they are just like the two sides of a coin. Both the terms
are co-related. An entrepreneur is a person who bears the
risks, unites various factors of production and carries out
creative innovations. He/she is an individual or one of a
group of individuals who try to create something new.
He/she always attempts to bring about change in terms of
factor proportions, which is known as innovation.
• On the contrary, entrepreneurship is the set of activities
performed by an entrepreneur. It is process of identifying
opportunities in the market place and marshalling the
resources required to pursue these opportunities for long
term gains. It is the attempt to create value.
Relationship between Entrepreneur
and Entrepreneurship
 Evolution of Entrepreneurship

1600 – French verb – Entreprendre – to undertake.

1700 – Person bearing Risk or Profit in a fixed price contract
(Risk)
1725 – Richard Cantillon – Person bearing risks is different
from Capital Supplier (Risk)
1803 – J. B. Say – Shifts economic resources out from an area
of lower to higher productivity & greater yields (Value
Addition)
1876 – Francis Walker – Distinguish between those who
supplied funds and receive interest and those who received
profit from managerial capabilities.
1934 – Joseph Schumpeter – Innovator and develops untried
technology (Productivity & Innovation)
1961 – David McClelland – Highly motivated, energetic, moderate risk
taker (Need for achievement)
1964 – Peter Drucker – Searches for change, responds to it & exploits
as opportunity (Opportunity Focused)
1980 – Karl Vesper – Behaviour Perceptions– Economists,
Psychologists, Businessmen, Politicians (Environment)
1983 – Gifford Pinchot – Intrapreneur
1985 – Robert Hisrich – Creating something different with value,
devoting time & effort, assuming risks (FPS); results– rewards and
satisfaction (Leadership & Vision)
2008 – National Knowledge Commission “The professional application
of knowledge, skill and competencies and/or monetizing a new
idea, by an individual or a set of people by launching an enterprise
or diversifying from an existing one, thus to pursue growth while
generating wealth, employment and social goods.
 Common myths to becoming an
entrepreneur
Myth #1: Entrepreneurs don’t have a personal life
Myth #2: Entrepreneurs take lots of risks
Myth #3: Entrepreneurs are only motivated by money
Myth #4: Entrepreneurs raise money from venture capitalists
Myth #5: Entrepreneurs have great ideas
Myth #6: Anyone can be an Entrepreneur
Myth #7: Entrepreneurs have formal training and education
Myth #8: Entrepreneurs are young
Myth #9: Entrepreneurs don’t quit until they succeed
Myth #10: Entrepreneurship is genetic
 Need of Entrepreneurship

1. Passion, Perseverance & Persistence

Passion is a strong and uncontrollable emotion which
is based into something that is higher to achieve
than what the person is carrying within himself.
Perseverance is a mature emotion which comes
through experiences gathered and analysed. While
persistence is the sail that will row the boat of an
entrepreneur through the toughest of climate. 
2. Big Dreamer
Dreaming big further strengthens an entrepreneur
with his ability to dream and see the wide picture.
This is actually the very first step which sets the path
to self-discovery. 
3. Learning
Learning is never to stop irrespective of age and thus arming oneself
with education does play a vital role in forming leadership qualities
when needed.
4. Good Listener
The ability to contribute will only come once we have abundance in
ourselves, and this comes by absorbing the words by others. The
ability to truly listen to the customers and employees is actually what
makes a difference. This very skill leads a successful venture.
5. Financing Partner
Choosing a financing partner who understands the business needs is
very much essential. This is as critical as choosing the business which
the entrepreneur wants to pursue. Also, a business loan from a right
lender will for sure play a pivotal role in realizing the dreams of
becoming a successful entrepreneur.
 Entrepreneurship and its Scope

• The scope of entrepreneurship is far reaching. 

• Entrepreneurship moves even beyond from the closed
system of an enterprise. 
• Entrepreneurship in its capacity stimulate the economy
which enables societal change not only for fulfilling a need
but also to generate revenue for the entrepreneur,
entrepreneurship thus provides jobs for the society and this
develops communities.
• Entrepreneurship instigates a lot more than mere creation
of business. 
• Entrepreneurship promotes the new business and provides
opportunities to improve the new business sectors. 
 Importance of Entrepreneurship
• Creates wealth for nation and for individuals
as well
• Provides employment to huge mass of people
• Contributed towards research and
development system
• It is a challenging opportunity for the people
• Entrepreneurship provides self-sufficiency
• Sky-scraping heights of apparent prospect
 Factors Affecting Entrepreneurship
Development
1. Developed Infrastructure Facilities – Availability of
infrastructure reduces the cost & efforts and improves
viability of projects through higher profit margins.
2. Financial Assistance – Easy availability of cheap funds is vital
for promoting entrepreneurship.
3. Protective and Promotional Govt Policies – Most of the
entrepreneurship projects start very small and have no
resilience. They are extremely vulnerable to competitors,
market, money markets, etc, for considerable time.
Favourable Govt policies shelter them from such vagaries.
4. Growth of Education– Science, Technology & Management –
Growth of education is believed to be promoting
entrepreneurship. However, there are enough examples to
suggest otherwise. A very large proportion of first generation
entrepreneurs are low educated.
5. Risk Taking Attitude – Risk taking attitude is one of the pillars
of entrepreneurial spirits.
6. Hunger for Success (Capitalistic View) – Dreams of riches and
fire in the belly is what drives most entrepreneurs on this
risky path. Any person content with what he has would take
the easier route of salaried job.
7. Environment/Culture Impact – Entrepreneurship is contagious.
Communities like Punjabies and Marwaries are historically
entrepreneurial. They are known for seeking and exploiting business
opportunities in most remote areas. It is a culture that propels them. (Go
to Pull_Factors )
8. Social Security – Social security acts as a safety net against failure of
enterprise. Social security guarantees basic ‘roti, kapada aur makan’ in
case of failure. Entrepreneurial spirit of United States is born partly out of
this security.
9. Technical/Industrial Training Facilities – Industrial Training facilities on
one hand generate skilled manpower so vitally required for setting up
enterprises while on the other hand they are also nursery for future
entrepreneurs. Among the educated entrepreneurs, a majority is product
of technical institutes from IIT to ITI (Tier I to Tier III institutes).
10. Globalization – Globalization has provided another avenue
for business. Many dare devils have taken a head– along
plunge into this uncharted water and have written new
success stories.
11. Economic Growth Rate of Country – A growing economy
creates more demand and improves prospects of success.
12. General Business Environment – External environmental
factor i.e. political, socio cultural, technology, legal, economic
affect growth of entrepreneurship. Kerala and West Bengal
have remained entrepreneurially backward due to poor
political and legal environment.
Mc Clellend's Achievement motivation
theory
• David McClelland and his associates began a study of
three needs that motivates human behaviour that is
power, affiliation and achievement in the early 1950s.
• He is well known for his work and development of
need theory on motivation.
• McClelland believes that each person has a need for
all three and other needs but that people differs in
the degree to which the various needs motivate their
behaviour. 
• These needs are:
 Need For Achievement
• Need for achievement in the Acquired Needs theory
speaks about the urge of an individual to achieve
something in life.
• This is the need that will encourage a person to work,
struggle and find success eventually.
• He wants to be known in his field as a prominent
person.
• Some individuals have a high need for achievement
and they are the ones who are constantly innovating
and trying to excel at everything.
• Need for achievement theory states that individuals who are
focused on the need for achievement are opposed to risky
situations.
• They do not prefer low-risk situations as they do not find it
challenging enough to make the effort and high-risk situations as
they consider it more about luck than their effort.
• The people who have a high need for achievement will put their
onus on constant and immediate feedback on their
achievements and progress so that they can learn, improvise and
improve regularly.
• This will help them to understand how near or far they are from
their goals.
• McClelland identified the following three
characteristics of high need achievers: 
 High need achievers have a strong desire to
assume personal responsibility for performing a
task or finding a solution to a problem. 
 High need achievers tend to set moderately
difficult goals and task calculated risks. 
 High need achievers have a strong desire for
performance feedback. 
 Need For Power
• The need for power is the second need in David
McClelland’s Three Needs Theory.
• It refers to the desperate craving of an individual to hold
absolute authority over other people.
• This control is a reflection of the specific needs for personal
power and shows the desire to change the decision of
another individual to suit personal wants and needs.
• They are ready to take high risk for personal glory.
• A person’s need for power can be one of two types –
personal and institutional.
• The first is the one who is part of a personal power
motivator group.
• He will always try to control other people and aspire for
recognition and status.
• Competition and challenges are what motivates him to
do better.
• He will always want to be on the winning side and hate
losing no matter what.
• Those who need personal power want to direct others,
and this need often is perceived as undesirable.
• The second type of individual belongs to Institutional
power motivator groups.
• He is highly disciplined and will lead his team members
to reach set goals and objectives with determination.
• Persons who need institutional power (also known as
social power) want to organise the efforts of others to
further the goals of the organisation.
• Managers with a high need for institutional power
tend to be more effective than those with a high need
for personal power
People who have a high need for power are
characterized by: 
A desire to influence and direct somebody
else. 
A desire to exercise and control over
others. 
A concern for maintaining leader-follower
relations. 
 Need For Affiliation
• According to psychologist David, the need for affiliation
refers to the high need of an individual to have both
interpersonal and social relationships with people.
• This is the third need in his Learned Needs Theory and
puts the onus on social acceptance and not on
achievement where performance is the key driver.
• Those with a high need for affiliation need harmonious
relationships with other people and need to feel
accepted by other people. They tend to conform to the
norms of their work group.
• They perform well in customer service and client interaction
situations.
• They prefer cooperation over competition. They strive to
make and keep relationships with a high amount of trust and
mutual understanding.
• As per the need theory, the people motivated by the need
for affiliation will avoid uncertain as well as high-risk
situations.
• In the workplace, they adhere to set rules and norms.
• They are cautious in their approach and do not like
uncertainty and high risks.
The people with high need for affiliation have
these characteristics: 
They have a strong desire for acceptance and
approval from others. 
They tend to confirm to the wishes of those
people whose friendship and companionship they
value. 
They give value and feeling to others. 
 Limitations of Mc Clellend's
Achievement motivation theory
• The theory does not deal fully with the process of
motivation and how it really takes place.
• Persons with high need for achievement expect similar
results from others.
• As a result, they may lack human skills and patience for
being effective managers.
• The use of protective techniques for developing
achievement motive is objectionable.
• The research evidence in support of the achievement
motivation theory is fragmentary and doubtful. 
Entrepreneurial Models
 The Opportunist Model
• The opportunist model works well only in
trusting corporate cultures that are open to
experimentation and have diverse social
networks behind the official hierarchy (in other
words, places where multiple executives can
say “yes”).
• Without this type of environment, good ideas
can easily fall through organizational cracks or
receive insufficient funding.
• This model thrives in a culture of risk taking,
where employees like to create innovative new
business lines and are motivated to work hard
as their goal is to be valued as an important
asset to the company.
• This type of model works well in a trust-based
culture, where power is less centralised.
• The retailer KSC (recently bought by Certas) as a
fuel retailer that is capable of doing this.
 The Enabler Model
• The basic premise of the enabler model is that
employees across an organization will be
willing to develop new concepts if they are
given adequate support.
• Dedicating resources and processes(but
without any formal organizational ownership)
enables teams to pursue opportunities on their
own in so far as they fit the organization’s
strategic frame.
• In the most evolved versions of the enabler
model, companies provide the following: clear
criteria for selecting which opportunities to
pursue, application guidelines for funding,
decision-making transparency, both
recruitment and retention of
entrepreneurially minded employees and,
perhaps above all, active support from senior
management.
• Enablers are able to create new concepts on
their own, but have to follow the guidelines of
their organization. 
• Corporate Google is the leader here,
employing a 20% ‘free time’ rule, in which
colleagues are encouraged to get together to
discuss innovative ideas.
 The Advocate Model
• In the advocate model, a company assigns organizational
ownership for the creation of new businesses while
intentionally providing only modest budgets to the core
group.
• The parent company gives the selected teams low-to-
modest budgets and coaches them to create systems
capable of supporting the company in a strategic and cost-
efficient way.
• Advocate organizations act as evangelists and innovation
experts, facilitating corporate entrepreneurship in
conjunction with business units.
 The Producer Model
• The general objective is to encourage latent
entrepreneurs to come out of their shell.
• These business units are usually helped by senior
and veteran leaders who give them advice on how
to create innovative and disruptive products.
• The factors which help this type of model succeed
are the incentives for the entrepreneurs and the
expertise given by veterans in creating new types
of businesses.
• few companies such as IBM, Motorola and Cargill pursue
corporate entrepreneurship by establishing and
supporting formal organizations with significant dedicated
funds or active influence over business-unit funding.
• As with the enabler and advocate models, an objective is
to encourage latent entrepreneurs. But the producer
model also aims to protect emerging projects from turf
battles, encourage cross-unit collaboration, build
potentially disruptive businesses and create pathways for
executives to pursue careers outside their business units.
 Intrapreneurship
• Gifford Pinchot discover the word “Intrapreneur” in 1982.
• Intrapreneurship is defined as entrepreneurship within an
existing business set up. That is to say – Intrapreneurship is
corporate entrepreneurship. When a corporation indulges in
entrepreneurial activities, like diversification into new
businesses, it is called Intrapreneurship.
• Intrapreneur is a manager who focuses on innovation and
creativity; who brainstorms, dreams and puts ideas into
profitable venture by operating within the organizational
environment. It is a tool for capitalizing the entrepreneurial
spirit of employees in the organization. It gives managers the
freedom to try new ideas by employing firm’s resources in a
unique way.
 Intrapreneurship

• Google’s Intrapreneurship program:

• Through this Google Intrapreneurship program, all the employees are empowered and
encouraged to spend 20% of their time on projects that interest them and that they think will
benefit Google and their customers. The Google “Innovation Time Off” Intrapreneurship program
has a formal process for their selection of entrepreneurial projects, for the formal evaluation
process and the monitoring of each Google approved entrepreneurial project. For a Google
employee, to participate in the program, he/she needs to submit a project proposal with a
timeline.
• It is critical to note that several of Google’s newest products and services such as Gmail, Google
news, Orkut and AdSense were all originated through this program.
• In India also, Marico, manufacturers of Parachute Hair Oil, Saffola, Kaya Skin Clinic Industries
have institutionalized innovation awards, where they receive 30-40 entries every year for
innovations across the spectrum, including factories, brand, sales and HR, virtually covering the
whole organization.
• Consequences of not encouraging Intrapreneurship:
A classic case of entrepreneurs is that of the founders of Adobe, John Warnock and Charles Geschke.
They both were employees of Xerox. As employees 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.
 Intrapreneurship
Hurdles in Intrapreneurship:
• Need for organization alignment
• Dependence on company resources
• Dependence on existing business model
• Inability to move beyond past successes
• Low risk appetite
• Level of integration
• Short term vs long term results
 Benefits of Intrapreneurship
• Identification of opportunities
• Attracting entrepreneurial talent
• Increased ROI from long range investments
• Expansion of business design
• Ensuring competitive advantage
 Entrepreneur v/s Intrapreneur
Basis Entrepreneur Intrapreneur

Primary Motive Independence, opportunity to create Corporate rewards

wealth

Dependency An entrepreneur is independent in his But, an Intrapreneur is dependent on

operations the entrepreneur

Raising the fund An entrepreneur himself raises funds Funds are not raised by the
required for the enterprise Intrapreneur

Risk Entrepreneur bears the risk involved An Intrapreneur does not fully bear
in the business the risk involved in the enterprise

Operation An entrepreneur operates from out- On the contrary, an Intrapreneur

side operates from within the organization
itself.

Failure and Deals with Failure and mistakes Attempt to hide risky projects until
mistakes ready
 CLASSIFICATION OF
ENTREPRENEURS
• Entrepreneurs according to the type of
business.
• Entrepreneurs are found in various types of
business occupations 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 creates a business to materialize
their idea into reality.
• They may set up a big establishment or a small business unit.
• 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: 
• The 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 line and creates a desire and interest among buyers
to go in for his product line and creates a desire and interests
among buyers to go in for his product line and creates a
desire and interests and buyers to go in for his product.
• He is engaged in both domestic and overseas trade.             
• Britain, due to geographical limitations has developed trade
through trading entrepreneurs.
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. The
entrepreneur has the ability to convert economic resources
and technology into a considerably profitable venture.
• He is found in industrial units as the electronic industry,
textile units, machine tools or videocassette tape factory and
the like.
Corporate entrepreneur:
• Corporate entrepreneur is a person .who demonstrates his
innovative skill in organizing and managing corporate
undertaking.
• A corporate undertaking is a form of business’ organization,
which is registered under some statute or Act, which gives it a
separate legal entity.
• A trust registered under the Trust Act, or companies
registered under the Companies Act are example of corporate
undertakings. A corporate entrepreneur is thus an individual
who plans, develops and manages a corporate body
Agricultural Entrepreneur:
• Agricultural entrepreneurs are those entrepreneurs
who undertake agricultural activities as raising and
marketing of crops, fertilisers and other inputs of
agriculture.
• They are motivated to raise agriculture through
mechanization, irrigation and application of
technologies for dry land agriculture products.
• They cover a broad spectrum of the agricultural sector
and include its allied occupations.
• Entrepreneurs according to the type of
Technology
• We may broadly classify these entrepreneurs
on the basis of use of technology as follows:
Technical entrepreneur: A technical entrepreneur is
essentially compared to a crafts man. He develops
improved quality of goods because of the
craftsmanship. He concentrates more on production
than marketing.
Non technical entrepreneur: These are people 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 entrepreneurs: 
• Professional entrepreneurs are 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.
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
• 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
• Induced 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.
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
their 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.
According to the Growth and Entrepreneurs
 The development of a new venture has a greater
chance of success.
 The entrepreneurs a new and open field of business.
The customer’s approval to the new product gives
them psychological satisfaction and enormous profit.
 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, profitability and gearing
 Role of Entrepreneurship in Economic
Development
• Entrepreneurs play a significant role in economic
development of a country.
• According to ‘Harbison’ entrepreneurs are prime
movers of innovation & growth. The important roles
are:
1. Innovator in economic growth
2. Generation of employment opportunities
3. Complementing and supplementing economic growth
4. Balancing social stability
5. Balanced regional development
6. Export promotion
7. Import substitution
8. Augmenting and meeting local demand
9. Helps to reduce concentration of economic power
10. Establishment of backward and forward linkages
11. Mobilizing resources like finance, peoples money,
human resource, natural resources etc
 Problem of Entrepreneurship
Internal
Choice of an Idea
Faulty Planning
Poor management of enterprise
Marketing
Financial Crunch
Labor Problems
Capacity utilization
Inadequate training and skill
Lack of motivation
Poor coordination among employees
 Problem of Entrepreneurship
External
Infrastructural sickness (location, power, water, communication)
Financial (Capital, working capital, recovery, long term fund, seed capital, startup capital)
{angel investor}
Taxation (Income tax, Sales Tax, Excise, VAT, import duty, LBT etc)
Raw material
Industrial and financial regulation
Inspections
Technology
Government Policy (Bureaucracy)
Administrative Hurdle (eg security)
Corruption
Competitive and volatile environment
Licensing (Inspector Raj)
Gray Markets products (unbilled items)
Secular Country (Holidays)