1.

0 ENTREPRENEUR AND ENTREPRENEURSHIP

An entrepreneur is an individual who creates a new business, bearing most of the

risk and enjoying most of the rewards. The entrepreneur is commonly seen as an
innovator, a source of new ideas, goods, services and business or procedures.
Entrepreneur plays a key role in any economy using the skills and initiative necessary
to anticipate needs and bring good new ideas to market. An entrepreneur is a creator
or a designer who designs new ideas and business processes according to the market
requirement and his/her own passion. To be a successful entrepreneur, it is very
important to have managerial skill and strong team building abilities. Leadership
attributes are a sign of successful entrepreneur. Some political economist regard
leadership, management ability, and team building skills to be the essential qualities
of an entrepreneur. Entrepreneurs who proves to be successful in taking on the risk of
a start up are rewarded with profits, fame and continued growth opportunities. Those
who fail, suffer losses and become less prevalent in the markets.
Entrepreneurship is a process of actions of an entrepreneur who is is a person
always in search of something new and exploits such ideas into gainful opportunities
by accepting the risk and uncertainty with the enterprise. Entrepreneurship is the art of
starting a business, basically a start- up company offering creative product, process or
service.

2.0 LITERATURE REVIEW

According to Cole (1968) the term entrepreneur represents an individual or a

group of individuals who conceive, initiate and maintain for a sufficiently long period
of time a social institution which produces economic goods or to put it directly who
perceive a business opportunity and create an organization to purse it.
Entrepreneurship is the process of designing, launching and running a new business
which is often a small business. People who create these business are called
entrepreneurs. Pareek and Nadkarni (1978) stated that, entrepreneurship thus refers to
the general trend setting up new enterprise in a society. Operationally
entrepreneurship development could mean development of entrepreneurs and
promotion of increased flow of individuals to entrepreneurial ranks.
According to Bygrave, 1997:2: Cornwall & Naughton, 2003:63, At start up the
entrepreneurship process is a course of action that involves all function, activities and
actions associated with identifying and evaluating perceived opportunities and the
bringing together of resources necessary for the successful formation of a new firm to
purse and seize the said opportunities. Once set up, the process of entrepreneurship
becomes effectively a cyclical progression of opportunity targeting and making
strategic decisions regarding the allocation of scarce resources in pursuit of value
adding opportunities (Glancey, 1998:18: Kodithuwakhu & Rosa, 2002:443). This
entrepreneurship process helps new firms or ventures get better in achieving their
goals, improve business and the nations economy. Another essential factor of this
process is to manage, develop and build a business enterprise keeping in mind the
risks related to it. In simple words, the entrepreneurship development process is about
supporting entrepreneurs to advance their skills with help of training and coaching
classes. It encourages them to make better judgment’s and take a sensible decision for
all business activities.
Entrepreneurial development programme(EDP) may be defined as a programme
designed to help an individual in strengthening his entrepreneurial motive and in
acquiring skill and capabilities necessary for playing his entrepreneurial role
effectively. An entrepreneur is required to respond appropriately to the market and
he/she is also required to understand the business needs. The skills needed are varied
they need to be taken care in the best possible way. EDP is not just a training program
but it is complete process to make the possible transformation of an individual on how
to start the business and effective ways to sustain it successfully. (Al-Awlaqi, Aamer,
& Habtoor, 2018). According to N.P. Singh (1985), Entrepreneur Development
Programme is designed to help an individual in strengthening his entrepreneurial
motive to help an individual in acquiring skills and capabilities necessary for playing
his entrepreneurial role effectively. It is necessary to promote this understanding of
motives and their impact on entrepreneurial values and behaviour for this purpose.
EDP easily can define as a planned effort to identify, inculcate, develop and polish the
capabilities and skills as the prerequisites of a person to become and behave as an
entrepreneur.

3.0 CHALENGES FACED BY ENTREPRENEURS

 Failure is not something entrepreneurs will consider when starting a new
business. Research also suggested that, the failure rate for new starts up within five
years of their business is near to 50 percent. Most of the entrepreneurs follow all the
golden rules of becoming successful. Nevertheless, there are a lot of reasons and
causes behind an entrepreneurs failure.

i) Selection of a new business

Selection of business is eventually one of the top reasons why most entrepreneurs
fail. One of the tricky moments in an entrepreneur’s life comes when he or she
decides which business to adapt. Yes, every business has a potential of millions in
it, but you have to understand that not every business is appropriate for you. Doing
proper research before selecting a business is essential. Write down pros and cons of
every business idea that comes to your mind and then go with the most suitable
one.

ii) Poor Implementation of the plan

A master plan is worth nothing without proper execution. There are many reasons
behind the failure of implementation but the most critical reason is ineffective
leadership. Implementation of new strategies comes with enormous challenges;leaders
must have the courage and determination to overcome them with patience.

iii) Lack of proper planning

Improper planning is another common reason why entrepreneurs fail and go out of the
market. A lot of first-time entrepreneurs often neglect that having a business plan is a
very vital part of starting a new business. The planning should include a long-term
and a short-term strategy.

iv) Underestimating competition

An important reason to mention for why entrepreneurs go out of business is
underestimating the competition. Entrepreneurs must understand their competitors
and think them as a severe threat to take a valuable share of a market. An
entrepreneurs keep a keen eye on their competitors strengths and weakness to increase
their odds of success.
v) Giving up very early
The cause which is very common in the failure of every entrepreneur is that they give
up and shut down all the projects. It’s tough to encourage and pick them up in
massive frustration but there is no magical pill to turn failure into success. It’s time to
face the truth the path of becoming a successful entrepreneur is full of hurdles and
roadblocks. Instead of giving up, learn from their mistakes and try not to repeat them.

4.0 RECOMMENDATION TO OVERCOME CHALLENGES FACED BY

ENTREPRENEURS

i) Developing the vision and business idea

Developing a business idea is usually the first recommendation to overcome the
challenge faced by every entrepreneur when starting a business from scratch. Finding
the right business opportunity or creativity developing an idea is certainly not an easy
task. Envisioning the idea the first true task of an entrepreneur. An entrepreneur must
possess the ability to see what others cannot see. While other see problems, an
entrepreneur must see opportunities. But seeing opportunities is just the beginning.
The main business challenge is going to be the ability to forge that opportunity into a
business idea. This as a business challenge because the process of transforming
problems into business opportunities is like trying to turn lead into gold.

ii) Raising Capital for Startup

After developing an idea, the next recommendation is raising capital. An entrepreneur
is the only one that knows business idea to the core. Trying to convince investors
about something that doesn’t exist is definitely a challenge. Trying to make them
understand that they trustworthy and equal to the task is not child’s play especially
when building the first business.

iii)Dealing with Competition

Competition is the next challenge and an entrepreneur should overcome it. Most
individuals see competitions as a plague but competition as a good challenge.
Competition is a benchmark for creativity, the main engine that stimulates innovation
and production of quality products at great prices.

iv) Finding the right business location

Finding a good business location at the right place is definitely not easy. An efficient
location that has a rapidly growing populations, good road network and other
amenities at a good place.

5.0 ENTREPRENEUR DEVELOPMENT PROCESS

Entrepreneurship development process is the means of enhancing the knowledge

and skill of entrepreneurs through several classroom coaching, programs and training.
The main point of the development process is to strengthen and increase the number
of entrepreneurs. This entrepreneur development process helps new firms or ventures
get better in achieving their goals, improve business and the nations economy.
Another essential factor of this process is to improve the capacity to manage, develop
and build a business enterprise keeping in mind the risk related to it.

i) Clear view of the objective of the program

It is very important to have a clear objective and plan in mind about what the program
is going to encompass before get into training the prospective entrepreneurs.The
training would not yield the desired results without a proper plan and direction. This
would lead to a loss of time, money, effort and most of all valuable potential.

ii) Selecting the potential targets

Its is important to select the potential targets who are willing to enhance their skills
and who can be identified as the people who have some amount of business acumen.
These can be further divided into two categories which are educated target audience
and the uneducated target audience.
Educated audience refers to the target people who have a decent educational
background and want to entrepreneurs. These people have the motivation to put their
education to use by starting a venture and working for themselves. Instead,
uneducated audience refers to the people who are not as privileged as others in terms
of education about the market and have the potential to become entrepreneurs. These
people are constantly looking for alternative ways to earn money and support their
families. Therefore, they are highly motivated and given the right training and
direction can prove to be exceptional entrepreneurs.

iii)Identifying local talents and markets

The process of entrepreneurship development program can be seen as most effective
and efficient when it is applied in the local markets and on the local entrepreneurs
who know about it. These people understand and absorb the knowledge way more
quickly and can apply it in the current scenario because of which the results of the
program can be seen more quickly and effectively.

iv) Develop the entrepreneurship program as needed

People and their skill sets are different and develop over time. Thus, it is very
important to keep developing the programs to suit the needs of the people enrolled in
it. Moreover, the focus must be on harnessing their strengths and working to minimize
their weakness.

v) Analyze the result for future development

This is very important and final step in the process of entrepreneurship development.
It is very important to analyze the effectiveness of the program after the program has
run its course. This is necessary to ensure that in future more effective programs can
be developed.

Based on Moore’s model, (2004) presents the entrepreneurial process as a set of

stages and events that follow one another. These stages are the idea or conception of
the business, the event that triggers the operations, implementation and growth. In this
model of the entrepreneurial process, Bygrave (2004) highlights the critical factors
that drive the development of the business at each stage. According to Bygrave
(2004,p.5), “as with most human behavior, entrepreneurial traits are shaped by
personal attributes and environment.
F
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1: Model of Entrepreneurial Process

Personal attributes are the characteristics of entrepreneur that make them different
from non entrepreneurs. This theme has been fertile in research into entrepreneurship.
In looking to contribute to the identification and understanding of the behaviour that
may lead an entrepreneur to success, studies by McClelland (1965) set forth the
following entrepreneurial characteristic which are seeking opportunities and initiative,
identification of opportunities, ability to react to frustration and stressing situation,
demand for quality and efficiency, commitment, establishing goals, planning and
systematic monitoring, persuasion and a network of contracts and independence.
Timons (1978) agrees that certain personal attributes such as the need for realization,
a propensity for taking calculated risks and control locus ( an intense desire to be in
control of one’s own destiny) are observed in the majority of successful
entrepreneurs.

6.0 Entrepreneur Development Programme

Entrepreneur Development Programme (EDP) defined as a program designed to

help an individual in strengthening his entrepreneurial motive and in acquiring skills
and capabilities necessary for playing his entrepreneurial role effectively. It is
necessary to promote this understanding of motives and their impact on
entrepreneurial values and behaviour for this purpose. An EDP is a training-cum-
counselling program. It takes care of all the constraints and therefore it is proved to be
one of the most effective tools for developing new entrepreneurs.
In other words, EDP is program which helps in developing the entrepreneurial
abilities. The skills that are required to run a business successfully is developed
among the people through this program. Sometimes, people may have skills but it
requires polishing and incubation. This program is perfect for them. This programme
consists of a structured training process to develop an individual as an entrepreneur. It
helps the person to acquire skills and necessary capabilities to play the role of an
entrepreneur effectively. As per National institute of Small Industry Extension
Training, Hyderabad, an EDP is an effort of converting a person to an entrepreneur by
passing him through a thoroughly structured training.
One of the effectiveness of entrepreneurship development programme where
carried out in Ghanaian Polytechnics stated that, entrepreneurship development
mainly focus on various aspects of business and not so much about tendency towards
entrepreneurial traits or characteristics. (Bechard and Toulouse, 1995). however,
Durham University designed that General Enterprising Tendency Test (GET2)to bring
together and measure a number of personal ‘tendencies commonly associated with the
enterprising person. These include need for achievement, need for autonomy, creative
tendency, risk taking and drive and determination.(Caird, 2012).

i) Need for achievement

The need for achievement score of the GETT measures characteristics such as
forward looking, self sufficient , optimistic rather than pessimistic, task oriented,
result oriented, restless and energetic, self-confident, persistent and determined and
dedication to completing a task. According to Johnson (1990) achievement motivation
can be singled out as the most prevalent theory of entrepreneurship. In other studies
there appear to be no such correlations ( Hemantkumar et al., 2010; Frank, Lueger and
Korunka, 2007).

ii) Need for Autonomy/ Independence

Characteristics usually assessed under the need for autonomy/independence are likes
doing unconventional things, prefer working alone, needs to do own thing, needs to
express what he/she thinks, dislikes taking orders, likes to make up own mind, does
not bow to group pressure, stubborn and determined. According to Bibby (2010)
successful entrepreneurs display natural executive talents in conjunction with their
powerful need for independence.

iii) Creative tendency score

The creative tendency score measures things like imaginativeness and
innovativeness , tendency to day dream, versatility and curiosity, intuitiveness and
guessing well and enjoying new challenges, novelty and change. Many people align
with the ‘Schumpeterian’ view that entrepreneurs spur innovation and
entrepreneurship is all about innovation and speeding up structural changes
(Schumpeter, 1942).

iv) Moderate/ calculated risk taking

The specific attributes evaluated by the moderate/calculated risk taking part of the
GETT include acting on incomplete information, accurately assessing own
capabilities being neither over nor under-ambitious, evaluating likely benefits against
likely costs, setting challenging but attainable goals.

v) Drive and determination

The set of characteristics assessed under this are taking advantage of opportunities,
discounting fate, making own luck, being self confident, believing in controlling own
destiny, equating results with effort showing considerable determination and so on.
According to McMullen and Shepherd (2006) fear of failure when it comes to starting
a business (and the consequences of failure) could also deter an individual from
exploiting perceived entrepreneurial opportunities.

One of the scientist, David C. McClelland (1961) at Hardvard Univesity made an

interesting investigation-cum-experiment in India. This experiment is popularly
known as “Kakinada Experiment”. under this experiment, young persons were
selected and put through a three-month training programme and motivated to see fresh
goals. Besides, the significant conclusion of the experiment was that the traditional
beliefs did not seem to inhibit an entrepreneur and that the suitable training can
provide the necessary motivation to the entrepreneurs (McClelland & Winter 1969).
the achievement motivation had a positive impact on the performance of
entrepreneurs.
Based on this, it was the Gujarat Industrial Investment Corporation (GIIC) which
for the first time, started a three-month training programmes on entrepreneurship
development. Impressed by the results of GIIC’s this training programme, the
Government of India embarked in 1971 on a massive programme on entrepreneurship
development.

7.0 Conclusion
An entrepreneur is one who plays signification role in the economic development of a
country. Basically an entrepreneur can be regarded as a person who has the initiative,
skill and motivation to set up a business or an enterprise of his own and who always
looks for high achievement. Entrepreneurship development programs are developed
for both aspiring as well as existing entrepreneurs. This is because these programs are
also designed to help the entrepreneur expand their existing enterprise. These
programs are more effective on the existing entrepreneurs. It is because they already
know a lot about their markets and industry.
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