ENTREPRENEURSHIP AND MANAGEMENT OF SMALL

AND MEDIUM ENTERPRISES

UNIT-1 ENTREPRENEURSHIP

1) Meaning and Definition

2) Importance of Growth of Entrepreneurial Activity

3) Concept of Entrepreneur

4) Characteristics and Qualities of Entrepreneur

5) Characteristics and Types of Entrepreneurs

6) Women Entrepreneurs

7) Theories of Entrepreneurs

8) Contribution of McClelland and Joseph Schumpeter

UNIT-II

ENTREPRENEURIAL DEVELOPMENT

9) Factors Influencing Entrepreneurial Development

10) Role of Culture in Entrepreneurial Development

11) Entrepreneurial Development Programme

12) Self Help Groups & Women Entrepreneurs

13) Franchising and Outsourcing

14) Social Entrepreneurship

UNIT III- ENTREPRENEURIAL PROFUECT DEVELOPMENT

15) Idea Generation

16) Identification and Classification of Ideas

17) Environmental Scanning

18) SWOT Analysis

19) Preparation of Project Plan

20) Ideal Business Plan

21) Project Formulation

22) Project Appraisal

23) Technological Feasibility

UNIT-IV: SMALL & MEDIUM ENTERPRISES

24) Meaning and Definition

25) Role and Importance

26) Policies Governing SMEs

27) Organizational Structure

28) Steps in Setting up a Small Unit

29) SME Funding

30) SIDBI and SSI Role in the Development of SMEs

31) Marketing Mechanism in SMEs

32) Export Potentials of SMEs

33) Problem of SMEs & Prospects

34) Turnaround Strategies for SMEs.

ENTREPRENEURSHIP

The New Encyclopedia Britannica considers an

entrepreneur as “an individual who bears the risk of

operating a business in the face of uncertainty about the

future conditions.

THE CONCEPT OF ENTREPRENEUR

1) Entrepreneur as a Risk-Bearer

2) Entrepreneur as an Organizer

3) Entrepreneur as an Innovator

According to Drucker, three conditions have to be fulfilled:

1) Innovation at work. It requires knowledge and ingenuity. It

makes great demand on diligence, persistence and commitment.

2) To succeed, innovation must build on their strengths.

3) Innovation always has to be close to the market, focused on the

market, indeed market-driven

BASICS OF AN ENTREPRENEUR

INNOVATION

RISK

ENTERPRISE

URGE

SKILL

VISION

MANAGEMENT

ORGANISATION

GROWTH

BARRIERS TO ENTREPRENEURSHIP

1) Lack of a viable concept

2) Lack of market knowledge

3) Lack of technical skills

4) Lack of seed capital

5) Lack of business knowhow

6) Lack of motivation

7) Social stigma

8) Time pressure and distractions

9) Legal constraints and regulations

10)Monopoly and protectionism

11) Inhibitions due to patents

ENTREPRENEURSHIP

According to Peter Drucker, “Entrepreneurship is

neither a science nor an art. It is a practice. It has a

knowledge base. Knowledge in entrepreneurship is a

means to an end. Indeed, what constitutes knowledge in

practice is largely defined by the ends, that is, by the

practice.”

ACCEPTING CHALLENGES

ORGANISATION

SKILFUL MANAGEMENT

MAKING THE ENTERPRISEA SUCCESS

ENTREPRENEURSHIP

DECISTION-MAKING

RISK-TAKING

INNOVATION

Characteristics Of Entrepreneurship

QUALITIES OF AN ENTREPRENEURSHIP

1. Willingness to assume risk

2. Leadership

3. Decisiveness

4. Creative thinking

5. Confidence in project

6. Technical knowledge

7. Flexibility

8. Ability to marshal resources

9. Determination, courage and perseverance

ENTREPRENEUR V/S ENTREPRENEURSHIP1) Refers To A Person Refers To A Process

2) Visualiser Vision

3) Creator Creation

4) Organizer Organization

5) Innovator Innovation

6) Technician Technology

7) Initiator Initiative

8) Decision-maker Decision

9) Planner Planning

10)Leader Leadership

TYPES OF ENTREPRENEUR

I. According to the type of business

1) Business entrepreneur

2) Trading entrepreneur

3) Industrial entrepreneur

4) Corporate entrepreneur5) Agricultural entrepreneur

II. According to the use of technology

1) Technical entrepreneur

2) Non-technical entrepreneur

3) Professional entrepreneur

III.According To The Motivation

1) Pure Entrepreneur

2) Induced Entrepreneur

3) Motivated Entrepreneur4) Spontaneous Entrepreneur

IV.According To The Growth

1) Growth Entrepreneur

2) Super-growth Entrepreneur

V. According to the stages of development

1) First-generation entrepreneur

2) Modern entrepreneur3) Classical entrepreneur

VI.According to the area

1) Rural entrepreneur2) Urban entrepreneur

VII.According to the gender

1) Men entrepreneur

2) Women entrepreneur

VIII.According to the sale of operation

1) Small scale entrepreneur2) Large scale entrepreneur

IX.Other or unclassified

1) National entrepreneur

2) International entrepreneur

3) Bureaucratic entrepreneur

A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk taking and innovation.

Intrapreneurs have entrepreneurial skills blended with managerial skills but operate within the confines of an organization.

Intrapreneur

Intrapreneurs are “dreamers who do”, those who take hands-on responsibility for creating innovation of any kind within an organization. Gifford Pinchot

The intrapreneur is an essential ingredient in every innovation. Dr. William Souder

Defined as…

INTRAPRENEURS CHARACTERISTICS

1) Self motivated

2) Self-confident and courageous

3) Freedom

4) Education

5) Systems

6) Focus on customers

7) Patient and willing to compromise

8) Open to discussion and idea

9) motivator

CLASSIFICATION OF INTRAPRENEURS

1) Innovating Intrapreneurs

2) Marketing Intrapreneurs

3) Technical Intrapreneurs

4) Manufacturing Intrapreneurs

5) Financial Intrapreneurs

6) Service Intrapreneurs and

7) Other Intrapreneurs in various facet of

management activities

WOMEN ENTREPRENEURS

According to Government of India, “ a women

entrepreneur is defined as “an enterprise owned and

controlled by a women having a minimum financial

interest of 51% of the capital and giving at least 51 % of

the employment generated in the enterprise of women”.

FUNCTIONS OF WOMEN ENTREPRENEUR

1) Exploration of the prospects of starting a new business

enterprise

2) Undertaking of risks and the handling of economic

uncertainties involved in business

3) Introduction of innovations or imitation of innovations

4) Coordination, administration and control

5) Supervision and leadership

PROBLEMS OF WOMEN ENTREPRENEURS

1) Problem of Finance

2) Scarcity of Raw Material

3) Stiff Competition

4) Limited Mobility

5) Family Ties

6) Lack of Education

7) Male-dominated Society

8) Low Risk-bearing Ability

STRATEGIES FOR THE DEVELOPMENT OF

WOMEN ENTREPRENEURS

1) Education & Awareness

2) Better Time Management

3) Set-up Home-based Business

4) Efficient Use of Information Technology

5) Training Facility

6) Finance Cells

7) Dispense Collateral Security

8) Organize Workshops & Seminars

SPECIAL SCHEME FOR WOMEN ENTREPRENEURS1) Seed Capital Scheme

2) National Equity Fund

3) Women Industrial Fund Scheme

4) Single Window Scheme

5) Training & Extension Services

6) Scheme For Refinance Assistance To Women

Entrepreneurs

7) MAHILA ARTHIK VIKAS MAHAMANDAL (MAVIM)

8) SELF-EMPLOYED WOMEN ASSOCIATION (SEWA)

THEORIES OF ENTREPRENEURSHIP

1) An Economic Theory- Mark Casson

2) Leibenstein’s X-efficiency Theory

3) Dynamic Entrepreneurship Innovation Theory-

Schumpeter

4) Harvard School Theory

5) Theory Of High Achievement - McClelland

6) Theory Of Change- Young’s Theory

7) Theory Of Profit- Knight

8) Theory Of Adjustment Of Price-Kirzner

9) Theory Of Market-Hayek’s

10)Theory Of Social Change-Hagen’s

11)Theory Of Entrepreneurial Supply-John Kunkal

12)Theory Of Personal Resourcefulness

13)Theory Of Cultural Values-Thomas Cochran’s

Contribution of McClelland and Joseph Schumpeter

David McClelland

According to McClelland, “ An entrepreneur is some one who

exercises some control over the means of production and produces

more than what he can consume inorder to sell in for individual

income”.

David McClelland is most noted for describing three types of

motivational need, which he identified

1) Need for Affiliation (n-affil)

2) Need for Power(n-pow)

3) Need for Achievement(n-ach)