Esbm Unit 1 Wp

7/29/2019 Esbm Unit 1 Wp

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Course: Entrepreneurship & Small Business Mgmt.

Semester: MBA III

Course Code: MS 207

Batch: 2010-2012

Instructor: Ms Shivani Puneet Raheja

E-Mail: [email protected]
mailto:[email protected]:[email protected]


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1. Foundation Concepts

2. Entrepreneurship: Concept & Definitions

3. Entrepreneurship & Economic Development

4. Classification & Types of Entrepreneurs;

5.Entrepreneurial Competencies

6. Factor Affecting Entrepreneurial Growth- Economic, Non- Economic Factors

First Online Test

7. EDP Programs.

8. Entrepreneurial Training

9. Traits/Qualities of an Entrepreneurs, and

10. Entrepreneur; Manager Vs. Entrepreneur.

Second Online Test

Unit I (14 Hours)

Introduction to Entrepreneur & Entrepreneurship


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ENTREPRENEURIAL COMPETENCIES

(i)Initiative

(ii)Sees and Acts on Opportunities-

(iii) Persistence-

(iv) Knowing-

(v) Concern for High Quality of (vi) Commitment to Work

(vii) Efficiency

(viii) Systematic

(ix) Problem

(x) Self-confidence-

(xi) Assertiveness-

(xii) Persuasion-

(xiii) Concern for Employee Welfare etc


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FACTORS AFFECTING ENTREPRENEURIAL GROWTH

1. ECONOMIC FACTORS

a) Lack of adequate overhead facilities:

Profitable innovations require basic facilities like transportation,communication power supply etc. They reduce cost of production and

increase profit.

b) Non availability of capital

Inventions are capital oriented. In less developed countries most

capital

equipmenthave to be imported which involves foreign exchange which acts as a

difficult problem.

c) Great risk

Risk is high in case of less developed countries as there is lack of

reliable

information, markets for good and services is small etc.

d) Non availability of labor and skills

Though there is abundant labor supply there is generally scarcity of

skills at

all levels.


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2. SOCIAL FACTORS

A society that is rational in decision making would be favorable for decision

making. Education, research and training is given less importance in less

developed countries therefore there is very little vertical mobility of labor.

3. CULTURAL FACTORS

Religious, social and cultural factors also influence the individual taking

upan entrepreneurial career, in some countries there is religious and

culturalbelief that high profit is unethical. This type of belief inhibits growth

ofentrepreneurship.

4. PERSONALITY FACTORS In less developed countries the entrepreneur is

looked upon with suspicion.

Public

opinion in the less developed nations sees in the entrepreneur only a profit

maker and exploited.

5.MOTIVAT ION

Motivation is the act of stimulating someone or oneself to get a desired

course of action, to push the right button to get the desired results.


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EDP Programs.


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Phases of EDP

Select area from existing government policy

guidelines/socio-economic reports

Techno-economic survey of the selected area; feasibilitystudy

Identify potential and existing entrepreneurs interested in

starting new business/expansion/diversification

Training

Follow up and consultancy services


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Importance of Training

Ensures availability of skilled manpower at all managementLevels

Enhancing abilities, potential among entrepreneurs

Increase efficiency

Maintain and enhance product quality

Minimise wastages in production process

Minimise accidents on thejob

Reduce fatigue and increase speed ofwork

Standardisation in industry and internal processes


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Entrepreneur Versus Manager

The terms Entrepreneur and Manager are considered one and the same. But the twoterms have different meanings. The following are some of the differences between a

manager and an entrepreneur.

The main reason for an entrepreneur to start a business enterprise is because he

comprehends the venture for his individual satisfaction and has personal stake in it

where as a manager provides his services in an enterprise established by someone.

An entrepreneur and a manager differ in their standing, an entrepreneur is the

owner of the organization and he bears all the risk and uncertainties involved in

running an organization where as a manager is an employee and does not accept

any risk.

An entrepreneur and a manager differ in their objectives. Entrepreneurs objective

is to innovate and create and he acts as a change agent where as a managers

objective is to supervise and create routines. He implements the entrepreneurs

plans and ideas.


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An entrepreneur is faced with more income uncertainties as his income is contingent on

the performance of the firm where as a managers compensation is less dependent on the

performance of the organization.

An entrepreneur is not induced to involve in fraudulent behavior where as a manger

does. A manager may cheat by not working hard because his income is not tied up to the

performance of the organization.

Entrepreneur is required to have certain qualifications and qualities like high

accomplishment motive, innovative thinking, forethought, risk-bearing ability etc.

Conversely its mandatory for a manager to be educated in the fields of management

theories and practices.

An entrepreneur deals with faults and failures as a part of learning experience where asa manager make every effort to avoid mistakes and he postpones failure. etc


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Esbm Unit 1 Wp