A Guidebook of Entrepneurership Development.

Faculty : Management

Course: BBA 6th Semester.

Prepared by: Linkan Kumar karn

MBS, T.U (R.R.M Campus Janakpurdham)

Author's word

This book has been prepared with the purpose of helping students of management as
well as other faculties. Entrepreneurship Development is an essential discipline as it is
useful for all the sectors concern to economic development. This is the era of
scientific revolution and it demands the creative, innovative and dynamic
personalities. This subject is a mechanism to contribute in this pious work. I
enthusiastically want to ensure the students of BBA, BBS ,and Engineering that note
will help them to have clear information about 'Entrepreneurship Development.'

The comment and feedback on this book will be highly appreciable and it will
encourage me to work more for benefit of all.

Thanks!

Linkan Kumar Karn( 9825846206)

Syllabus

Unit 1: Introduction to Entrepreneurship

 Definition of Entrepreneur and entrepreneurship

 Characteristics of individual entrepreneur
 Importance of entrepreneurship
 Importance of Small business venture and entrepreneurship
 Obstacles in women entrepreneurship
 Entrepreneurship and Economic Development
  Entrepreneurial motivation: motivating factors ,McClelland's theory.

Definition of Entrepreneur: An individual who is willing to initiate business by bearing

most of risks and enjoying the most of rewards is an entrepreneur. Entrepreneur uses his/her
knowledge, ideas, skill, new concept for starting business. So, they are also known as
innovator. Entrepreneur has ability to transform his ideas into unique product and service.

Some Scholar's views about entrepreneur.

According to Joseph, "Entrepreneur is an individual who carries out new combination

of means of production by which there occurs disequilibrium."

J.B Say stated that "The entrepreneur is the economic agent who unites all the means
of production like capital, labor, land , amd others for creating value of products
 which comes as the result of reconstitution of above factors and also earns profit for
himself.

Some forms of entrepreneur.

 The introduction of new good—that is one which consumers are not

yet familiar or of a new quality of a good.
 The introduction of a new method of production that one not yet
tested by experience in the branch of manufacture concerned which
need by no means be founded upon a discovery scientifically new
and can also exist in a new way of handling a commodity
commercially.

Conclusively, An individual who takes risk of initiating new business activities,

search new opportunities, create value for society, etc by organizing productions
'factor is an entrepreneur.

Pictorial Example of Entrepreneur

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Definition of Entrepreneurship: Entrepreneurship is process of creating new enterprise. It

involves purposeful and systematic innovation. Innovation is doing something new or
different. Innovation is essential to address the changing demand of customers and grab the
opportunities. Risk bearing is another element of entrepreneurship. Risk is the degree of
uncertainty. Risk arises due to the dynamism of environment. Entrepreneurship helps to cover
out from the risk and makes an individual an entrepreneur.

Characteristics of individual entrepreneur.

a. Innovator: An entrepreneur always search new knowledge to develop new things or modify
existing product. so, s/he is innovator.

b. Motivator: An entrepreneur has to get work from his/her supporting team members.
Entrepreneur motivate them for increasing organizational efficiency and effectiveness.

c.Organizer: Entrepreneur has to organize the resources like capital, labor, and other
resources to achieve the organizational goal. So, organizer is also taken a its characteristics.
d. Risk bearer: Entrepreneur has to work in uncertain environment. Uncertain environment
contains risk. Entrepreneur has to bear the risk to operate his /her activities in competitive
environment.

e. Seek feedback: An entrepreneur always seek feedback about the performance that s/he has
made. It helps an entrepreneur to bring the change in organizational activities as per the
requirement.

Importance of Entrepreneurship.

1. Creation of job opportunities

Entrepreneurship firms contributed a large share of new jobs. It provides entry-level jobs so
necessary fur training or gaining experience for unskilled workers. The small enterprises are
the only sector that generates a large portion of total employment every year. Moreover,
entrepreneurial ventures prepare and supply experienced labor to large industries.

2. Innovation

Entrepreneurship is the incubator of innovation. Innovation creates disequilibria in the

present state of order. It goes beyond discovery and does implementation and
commercialization, of innovations.

Thus, entrepreneurship nurses innovation that provides new ventures, products, technology,
market, quality of good, etc. to the economy that increases Gross Domestic Products and
standard of living of the people.

3. Impact on community development

A community is better off if its employment base is diversified among many small
entrepreneurial firms. It promotes abundant retail facilities, a higher level of homeownership,
fewer slums, better, sanitation standards and higher expenditure on education, recreation, and
religious activities.

Thus, entrepreneurship leads to more stability and a higher quality of community life.

4. The consequence of business failure

The collapse of the large industry almost has irresistible damage to the development of the
state and the state of the economy and the financial condition of the relevant persons.The
incumbents lost their jobs: suppliers and financial institutions face a crisis of recovery.
Customers are deprived of goods, services, and government losses taxes. This could not
happen in the case of failure of entrepreneurship.

5. Political and economic integration of outsiders

Entrepreneurship is the most effective way of integrating those who feel disposed of and
alienated into the economy. Minorities, migrants, and women are safely integrated into
entrepreneurship that will help to develop a well-composed plural society.
6. Spawns entrepreneurship

Entrepreneurship is the nursing ground for new inexperienced adventurists It is the field
where a person can start his/her idea of the venture, which may be ended up in a giant
enterprise. All the large industrial ventures started as a small entrepreneurial enterprise.

Therefore, entrepreneurship provides a wide spectrum of ventures and entrepreneurs in every

economy. The vast open arena of entrepreneurship thus acts as an incubator to entrepreneurs.

7. Enhances the standard of living

The standard of living is a concept built on an increase in the amount of consumption of a

variety of goods and services over a particular period by a household.So it depends on the
availability of diversified products in the market. Entrepreneurship provides enormous kinds
of a product of various natures by their innovation.Besides, it increases the income of the
people who are employed in entrepreneurial enterprises.

9. Promotes research and development

Entrepreneurship is innovation and hence the innovated ideas of goods and services have to
be tested by experimentation.Therefore, entrepreneurship provides funds for research and
development with universities and research institutions. This promotes the general
development, research, and development in the economy.

Obstacles in Women Entrepreneurship

1. Fewer sectors are Women friendly

Despite the policies and measures to promote gender equality, men still
dominate India’s entrepreneurial ecosystem. According to a recent report, most
women-owned businesses in the country operate in low-revenue sectors, while
men control the more profitable sectors like manufacturing, construction, and
the like.

The male-centric nature of many industries also forces women entrepreneurs to

operate in sectors that are historically called “women-friendly”, such as
education, apparel, and beauty care, among others. It limits their experience,
opportunities, and capabilities to a significant extent.

2. Lack of Social and Institutional Support

Most women business owners don’t get the social support they require to kick
start their business from families, peers, and immediate ecosystems. Lack of
mentorship from the business community is also one of the main challenges
faced by women entrepreneurs in the country.

The case is no different when it comes to institutional support. Though there are
schemes for promoting female entrepreneurship, many women don’t receive
timely guidance or help from authorities. The absence of a proper support
network adversely impacts their confidence and ability to take risks.

3. Poor Funding Prospects

As unfair as it might sound, the funding scene in India has massive gender
biases. Women-led businesses in the country lack access to capital due to the
prejudices of investors and other factors. According to a report by Innoven
Capital, of all the companies that received funding in 2019, only 12% had at least
one female founder.

Many VC firms and angel investors are reluctant to invest in women-led

businesses, while banks and financial institutions consider women less credit-
worthy. Moreover, many Indian women don’t have property or assets in their
name, which comes up as a problem while applying for collateral loans or
private financing.

4. Lack of Access to Professional Networks

Limited access to professional networks is another one of the basic problems of

women entrepreneurs in India. According to the Google-Bain survey, female
business owners are less integrated with formal and informal networks. The
survey further indicates that over 45% of urban small business owners suffer
due to insufficient avenues of network development.

Studies also show that most of the existing professional networks are
dominated by men, making it difficult for women to access or navigate such
spaces. Consequently, they miss out on opportunities to grow their business,
find collaborators and vendors, and build social capital.

5. Pressure to Stick to Traditional Gender Roles

Patriarchy conditions both men and women to play certain defined gender roles.
Women are expected to cook, do domestic chores, raise kids, care for the
elderly, and the like. Juggling familial and professional responsibilities is a
challenge in itself, and even more so when you set out to build a brand.
The pressure to stick to traditional gender roles is among the main challenges
faced by women entrepreneurs. Often, they are asked to give up
entrepreneurship and take up an “easy” profession that helps them focus more
on family and kids. What’s more, a woman who chooses her career over other
things is looked down upon.

6. Lack of an Entrepreneurial Environment

Entrepreneurship is a long journey that involves a lot of learning, un-learning,

and upskilling. An environment that exudes a strong entrepreneurial spirit is
crucial for a person to become a successful business owner. However, many
women often suffer from the lack of such a productive environment.

To begin with, many women are forced to manage their businesses from home
due to familial responsibilities. Consequently, they lose out on opportunities to
go out, interact with the business community, and build their market access. It
also impedes their learning opportunities, access to resources and mentors, and
more.

7. Limited Mobility

Limited mobility is one of the basic problems of women entrepreneurs in Nepal.

They cannot travel alone or stay at hotels for business purposes without
worrying about safety. What’s more, many hotels in India still don’t allow women
to check-in unless accompanied by a man!

Though many financially independent women have started investing in vehicles,

the number of women owning motorized vehicles in India is still fewer than
men. All these factors come together to restrict the mobility of female business
owners.

8. Lack of Education

One of the biggest credentials for a modern entrepreneur is having prior

experience in running a successful business. To supplement the lack of
experience in running a business the entrepreneur should have professional
experience of working in the relevant industry or a business management
degree. Unfortunately in India, the education of women does not get its due
importance. This results in many budding female entrepreneurs lacking the
education required for running a successful business. As women are getting
access to higher education, they are leveling the playing field.
9. Low Risk-Bearing Ability

In order to invest in and run a successful business, the entrepreneur needs to be

able to bear some inherent risk. Women often do not have financial freedom
and do not have practice in making independent decisions. They also lack
confidence in their own decisions, which makes them risk-averse. This is
gradually changing as with each passing generation women are taking charge of
their finances and mitigating the risks.

10. Balancing Responsibilities between Family & Business

Family is often seen as an extension of women. It is expected from married

women to enter motherhood within a certain age and also play a major role in
rearing their children. This also leads to the young mothers having to take a
break from their careers and prioritize their families. Running a business is a
demanding task that often puts women in conflict with their family
commitments and even makes them feel guilty about prioritizing their business.

Entrepreneurship and Economic Develoipment.

Entrepreneurship is the process of creating and running a new business

venture in order to generate profits. It is a crucial factor in driving economic

growth and development in both developed and developing countries.

Entrepreneurial activity helps create new jobs, fosters innovation, and drives

market competition, which ultimately benefits consumers.

The role of entrepreneurship in economic development cannot be

overstated. This article will examine the ways in which entrepreneurship

contributes to economic growth and development, and explore its various

benefits.
Role of Entrepreneurship in Economic Development

1. Raising the Standard of Living

One of the most significant benefits of entrepreneurship in economic development, is

that it raises the standard of living. By creating new businesses and jobs,
entrepreneurship improves the quality of life for both individuals and communities,
enabling paths for wealth creation.

Entrepreneurship enhances employability, which in turn drives economic

competitiveness. The result is better products and services, and ultimately, happier
consumers.

2. Creation of New Jobs

Entrepreneurship is a significant source of job creation. By starting new businesses,

entrepreneurs create employment opportunities for themselves and others. This
helps to reduce unemployment rates and improve the overall economic well-being of
the community.

According to the Global Entrepreneurship Monitor, entrepreneurship is

responsible for creating millions of jobs worldwide. This is particularly important in
developing countries, where job creation is critical for economic growth and poverty
reduction.

3. Helps To Eliminate Poverty In Local Areas

Entrepreneurship can help to eliminate poverty in local areas. By creating new

businesses and jobs, entrepreneurship provides opportunities for people to improve
their financial situation.

This is particularly important in developing countries, where poverty is often

widespread. Entrepreneurship provides a way for people to improve their economic
well-being, which can ultimately lead to social change and overall development.

4. Helps With Community Development

Entrepreneurship is important as it also plays a critical role in community

development. By creating new businesses, entrepreneurs contribute to the economic
vitality of their communities. This can lead to increased investment in the community,
which can result in improved infrastructure, services, and amenities.

Entrepreneurship can also help to foster a sense of community pride and ownership,
which can contribute to the overall development of the community.
5. Provides Economic Independence

Entrepreneurship provides economic independence for individuals, towns, and

countries. By creating new businesses, entrepreneurs are able to generate income
and contribute to the overall economic well-being of their community. This is
particularly important for developing countries, where economic power is often
concentrated in the hands of a few large corporations.

Entrepreneurship provides an opportunity for individuals and small businesses to

compete in the market, which can lead to increased economic diversity and stability.

6. Benefits Of New Startups Entering the Market

New startups entering the market drive innovation and competitiveness. They
challenge existing businesses to improve their products and services, which
ultimately benefits consumers.

The importance of new startups cannot be overstated, since they provide new job
opportunities and contribute to overall economic growth. They are essential for
creating a dynamic and vibrant business environment, which fosters innovation and
growth. Without new entrants, existing firms aren't motivated to innovate and can
increase prices due building a large scale monopoly in the industry.

7. Encourages Capital Investment

Entrepreneurship encourages capital investment in both cities and countries. By

creating new businesses, entrepreneurs attract investment from both local and
foreign sources. This can even unlock their ability to access different labor markets
and even enter foreign markets further down the line.

This investment can contribute to the overall economic growth of the community, as
well as provide new opportunities for entrepreneurs and job seekers. Capital
formation is essential for creating a sustainable and thriving business environment.

8. New Entrants Drive Market Innovation

Innovative entrepreneurship is the driving force behind market innovation.

Entrepreneurs are known for their ability to identify gaps in the market and come up
with solutions to fill those gaps. This not only benefits the entrepreneur but also the
entire economy.

By focusing on business innovation, such as developing new solutions,

products/services, or improving existing ones, entrepreneurs increase competition,
leading to a decrease in prices and an increase in quality.

Moreover, innovative entrepreneurs are also responsible for keeping costs low,
which benefits the overall economy. By introducing new and more efficient
production methods, entrepreneurs are able to decrease the cost of production. This
leads to an increase in supply, which in turn leads to an increase in exports. This is
particularly important for developing countries that rely heavily on exports for their
economic growth.

9. Optimal Use of Resources

Entrepreneurs are also responsible for the optimal use of resources. By identifying
new business opportunities and introducing new production methods, entrepreneurs
are able to create more efficient systems for utilizing resources. This not only
benefits the entrepreneur but also the entire economy, as it leads to a decrease in
waste and an increase in productivity.

Furthermore, entrepreneurship can also lead to the creation of new markets. By

introducing new products or services, entrepreneurs are able to create demand
where none existed before. This can lead to the development of entirely new
industries, which can further contribute to the overall development of the economy.

10. Increases Per Capita Income (PCI) and Gross National Product (GNP)

Entrepreneurship is a key driver of economic growth and development. By creating

new businesses and jobs, entrepreneurship leads to an increase in gross national
product and per capita income. This is particularly important for developing
countries, where poverty and unemployment are major issues.