Points to Remember

1. Introduction Entrepreneurship is process of setting up one’s own business. The person who sets up business is called on entrepreneurship.

2. Meaning Entrepreneurship is a systematic purpose full and creative activity of identifying a need, mobilising resources and organising production with a view to delivering value to the customers.

According to Peter Drucker, “Entrepreneur-one who is involved in gathering and using resources to opportunities to produce result.”

3. Characteristics of Entrepreneurship

  1. Systematic activity
  2. Lawfull and purposefull activity
  3. Creative activity
  4. Organisation of production
  5. Risk taking

4. Relationship between Entrepreneurship and Management

  1. Entrepreneurship is concerned with starting of a new business venture, management assures efficiency and success of business starts by entrepreneur.
  2. In developing countries, entrepreneurs remain attached to day-to-day activities also and managers also remain in touch with strategic divisions of entrepreneurs.

5. Functions of Entrepreneurs in Relation to Economic Development

  1. Contribution to gross domestic product
  2. Capital formation
  3. Employment generation
  4. Generation of business opportunities for others
  5. Improves economic efficiency
  6. Increasing the scope of economic activities
  7. Growth of local communities
  8. Boosting the spirit of exploration, experimentation and daring

6. Process of Setting Up a New Enterprise The steps involved in setting up of a business are

  1. Scanning the environment
  2. Development of product/service
  3. Feasibility analysis
  4. Appraisal by funding agencies (financial institution)
  5. Resource mobilisation
  6. Project commissioning and councling (establishing of an enterprise)
  7. Adoption and management of growth

7. The Process of Entrepreneurship Development

  1. Individual Personality of Entrepreneur It means competence, motivation, values and attitude of the entrepreneur.
  2. Environment Factors It refers to economic Frame work. industrial and trade policy, institutional framework of our country.

8. Role of Environment in Entrepreneurship Development

Environment conditions have Entrepreneurship Development. Inflation good infrastructures entrepreneurship development.

9. The Role of Individuals in Entrepreneurship Development

  1. Entrepreneurial competencies
  2. Entrepreneurial motivation
  3. Entrepreneurial values and attitudes

10. Entrepreneurial Competencies

  1. Initiative
  2. Recognising and grabbing the opportunities
  3. Persistence
  4. Collecting information
  5. High quality work
  6. Commitment
  7. Efficiency
  8. Planning
  9. Problem solving
  10. Self confidence
  11. Assertiveness
  12. Persuasion
  13. Use of influence strategies
  14. Monitoring
  15. Concern for employees welfare

11. Entrepreneurial Motivation

  1. Need for achievement
  2. Need for power
  3. Need for affiliation
  4. Need for autonomy

12. Entrepreneurial Values

  1. Theoretical doctrinal values
  2. Social values
  3. Aesthetic values
  4. Political values
  5. Economic values
  6. Moral values

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