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UNIT1Entrepreneurship Development 1.1. Entrepreneur1.2. Entrepreneurship1.3. Entrepreneurial Competencies1.4. Factors Affecting Entrepreneurial Growth1.5. Traits and Qualities of an Entrepreneur1.6. Entrepreneurial Process

EXAMPLES Henry Ford Starting a decade after most automobile manufacturers had been established in the U.S. Henry ford created manufacturing miracle that launched a modern era in the industry Engineering in assembly line process Introduced highly mobilized assembly lines Sought to improve the engineering technology of production. He altered the inventory system to move parts and tools to the workers, structured lines with parts moving along waist high so that the workers could perform tasks comfortably Henry Ford Grouped tasks logically so that more production could be achieved at lower cost

During his lifetime he instituted more than thousand innovation and at one time he had more Ford automobiles on the road than the rest of the worlds manufacturers combined Entrepreneurship Innovation & Invention History is littered with great ideas they're irrelevant to entrepreneurs.

Sony is a classic example. Few people know that Sony was founded on the idea of offering rice cookers to the masses. They failed at that idea, but Sony is what it is today because the founders were willing to give up on their original ideas and plans.

Gillette is another classic example of a company that constantly reinvents itself. Every year they come up with new products that transform their own industry. We may end up with razors that take two hands to hold, but Gillette proves that innovation is about change and progress, not great ideas.

So entrepreneurs adapt and give up on their original idea...and let company succeed.

Concepts and Definition Introduction An entrepreneur is a person who perceives opportunities, organizes the resources needed to exploit the opportunity and sets up an enterprise.

The process of setting up an enterprise is called entrepreneurship.

An enterprise is a business venture. It is an undertaking that involves uncertainty and risk as well as innovation.

An individual has the right to choose any income generating activity or self-employment or entrepreneurship as a career option.

Functionally income generating and self-employment activities are the initial stages of entrepreneurship. A) Concept:The concept of entrepreneurship has a wide range of meanings. On the one extreme an entrepreneur is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population.

B) Definitions:1) Peter Drucker:An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource.

2) Albert Shapero: Entrepreneurs take initiative, accept risk of failure and have an internal locus of control.

3) Gilbraith: An entrepreneur must accept the challenge and should be willing hard to achieve something.

1.1 EntrepreneurClassification and types of entrepreneurship 1) Clearance Danhofs Classifications:Danhof classifies Entrepreneur into four types.a) Innovative Entrepreneur: This category of Entrepreneur is characterized by smell of innovativeness. This type of Entrepreneur, sense the opportunities for introduction of new ideas, new technology, discovering of new markets and creating new organizations.b) Adoptive or Imitative Entrepreneur: Such entrepreneurs imitate the existing entrepreneur and set their enterprise in the same manner. Instead of innovation, may just adopt the technology and methods innovated by others. c) Fabian Entrepreneurs:Fabian entrepreneurs are characterized by great caution and skepticism, in experimenting any change in their enterprises. d) Drone Entrepreneurs: Such entrepreneurs are conservative or orthodox in outlook. They always feel comfortable with their old fashioned technology of production even though technologies have changed.

1.1 Entrepreneur2) Arthur H Cole Classification:Arthur H Cole classifies entrepreneurs as empirical, rational and cognitive entrepreneur.

a) Empirical:He is entrepreneur hardly introduces anything revolutionary and follows the principle of rule of thumb.

b) Rational:The rational entrepreneur is well informed about the general economic conditions and introduces changes, which look more revolutionary.

d) Cognitive:Cognitive entrepreneur is well informed, draws upon the advice and services of experts and introduces changes that reflect complete break from the existing scheme of enterprise.1.1 Entrepreneur3) Classification Based on the Scale of Enterprise:

a) Small Scale:These entrepreneurs do not possess the necessary talents and resources to initiate large-scale production and to introduce revolutionary technological changes.b) Large Scale:They possess the necessary financial and other resources to initiate and introduce new technological changes. They possess talent and research and development facilities.

1.1 EntrepreneurF) Typology of Entrepreneurs:4) Other Classification:

1.1 Entrepreneur1.1 EntrepreneurF) Typology of Entrepreneurs:4) Other Classification:a) Solo Operators: These are the entrepreneurs who essentially work alone, introduce their own capital and if essential employ very few employees. In the beginning most of the entrepreneurs start their enterprises like them.

b) Active Partners: Such entrepreneurs jointly put their efforts and resources. They actively participate in managing the daily routine of the business concern.

c) Inventors:Such entrepreneurs are creative in character and feel happy in inventing new products, technologies and methods of production.

d) Challenge:According to such entrepreneurs, if there is no challenge in life, there is no charm in life. Such entrepreneurs plunge into industry/business because of the challenge it presents.

1.1 EntrepreneurF) Typology of Entrepreneurs:4) Other Classification:e) Buyers:These are the entrepreneurs who do not like to face the hassles of building infrastructure and other facilities. They simply purchase the existing one and by using their experience and expertise try to run the enterprise successfully.f) Life Timers:Such entrepreneurs take business as an integral point of their life. Family enterprises, which mainly depend on exercise of personal skill, fall in this category.

g) Industrial Entrepreneurs:Such entrepreneurs engage in manufacturing and selling products.

h) Service Entrepreneurs:Such entrepreneurs engage in service activities like repair, consultancy, beauty parlor etc where entrepreneurs provide service to people.

i) Business Entrepreneurs:They are also called as trading entrepreneurs which buy and sell goods.

1.1 EntrepreneurF) Typology of Entrepreneurs:4) Other Classification:j) Agricultural Entrepreneurs:They engage themselves in agricultural activities like horticulture, floriculture, animal husbandry, poultry etc.

k) Corporate Entrepreneurs: Corporate entrepreneurs undertake their business activities under legally registered company or trust.

1.2. ENTREPRENEURIAL COMPETENCIES C) Entrepreneurs Role:

1.2 Entrepreneurial competencies-roleKalyani pioneered the export of automobile components from India to China in 2002.

Bharat Forge was the country's largest exporter of automotive components for eight consecutive years, with exports contributing almost 50% to total sales.

Every second heavy truck manufactured in USA runs on a "Made by Bharat Forge, India" front axle beam. Bharat Forges global customer base comprises 38 automobile manufacturers besides several tier suppliers to the industry. Thomas Edison is a great example of someone who most people think of as an inventor because of the thousands of ideas he came up with. But when someone asked Edison about his ideas he replied that he didn't care about his ideas.

The only ideas that were interesting to him were the ones that he could commercialize. Yet most people in fact don't realize that the light bulb was not Edison's idea; he just commercialized it. One of the inventors and entrepreneur Cyrus McCormick who created a revolution in agriculture with the first mechanical reaper. He invented the reaper in the year 1831 and unveiled it in the Shenandoah valley, cutting 6 acres of wheat in less time than a healthy farmer could cut one acre.

The McCormick Reaper replaced the way farmers had harvested grain for more than 2000 years and farm productivity was increased more than ten fold D) Entrepreneurs Task:

1.1 EntrepreneurMost creative ideas can be traced to an individuals interest in or curiosity about a specific problem or area of study.

E.g. Alexander Graham Bell had been fascinated with the physics of sound since childhood. He was influenced to study human hearing systems by his mother who had a serious hearing problem. Bells idea for a hearing aid was seeded years before he invented the telephone Art Fry, the 3M Engineer who invented the post it notes first thought of semi-sticky papers six years earlier when as a church choir director, he wanted to have Page markers for hymn books that would neither damage the book nor slip out easily.

He worked on the idea during his spare time at 3M without success, forgot about it nearly a year, then tried making a new adhesive for the paper, once again forgot about the project for sometime and eventually envisioned a pad of small hymn notes with tear off edges with a non permanent gumIBM developed symbolic languages like FORTRAN and COBOL

Steven jobs and Stephen Wozniak were successful in establishing Apple Computers because of their software processes

William Gates formed Microsoft corporation and set industry standards in MS-DOS operating systems Ford developed inexpensive automobile, when most automobiles were luxuries

Dominos Pizza was built on the observation that lot of people order pizza to take out

John H Johnson founder of Ebony Magazine recognized neglected segment of readership and started Negro Digest

For 200 year period education was market reserved for upper class but just prior to world war II government sponsored colleges came into existence Business Idea An entrepreneur establishes a new business unit on the basis of his or her study or perception. The following steps are involved in searching and selecting business idea Creating Business Idea Study and process the idea Select the best idea Business Idea While evaluating the idea technical feasibility that is the possibility of production with the available skills and technology

Commercial viability of the idea based on cost and profitability Idea selection centers around following broad categories Products where the entrepreneur has firsthand manufacturing experience Product where entrepreneur has marketing work experience Product which is highly profitable Product where government has banned importsProduct where export demand is high with good margins Idea selection centers around following broad categories The location advantage of raw material The raw material requirement of an existing nearby big unit The products encouraged by government agencies Products where there is demand growth Sources of ideas Consumers

Existing products/markets

Middlemen

Channels of suppliers

R & D

E) Entrepreneurs Personality:

1.1 EntrepreneurE) Entrepreneurs Personality:1) Self-Motivation:This is the most important skill of any entrepreneur. It is the ability to wake early in the morning and start working. Self-motivation comes through practice and it is essential for every entrepreneur in times of odd and even phases of business.

2) Ethics and Morals:These are the foundations of an every entrepreneur. It is up to the will of the entrepreneur, what he stands for and how he conducts the business on a daily basis.

3) Culture and Values:It recommends that the culture is most effective constant for entrepreneur. Good cultural values also influence the entrepreneur intention. The appropriateness, consistency, effectiveness, (ACE) model ofpersuasion is the three main thought of culture importance, stability, efficiency.

4) Problem Solver and a Decision Maker: In the initial phases of an enterprise many teething problems do occur and an entrepreneur should be a creative problem solver to turn difficulties into advantages.

1.1 EntrepreneurE) Entrepreneurs Personality:5) Innovation:Innovating is a process of creating, changing, experimenting, transforming and revolutionizing. Innovation is one of the key distinguishing characteristics of entrepreneurial activity.

6) Effective Communication:Proper communication helps entrepreneurs in managing the affairs of the business more efficiently. If the right type of information is made available at the right time through proper communication then the management can utilize it in the best possible manner. 7) Time Management:This goes hand in hand with self-motivation. As, an entrepreneur, it needs to stick with the schedule. Time is extremely valuable.

8) Leadership Quality:An entrepreneur must assume a wide range of roles, tasks, and responsibilities. But over and above all these roles the role of leader is very much important to become successful entrepreneur.

1.1 EntrepreneurE) Entrepreneurs Personality:9) Personal Efficacy:Self-efficacy is a useful construct in explaining the dynamic process of evaluation and choice that surrounds the development of entrepreneurial intentions and the subsequent decisions to engage in entrepreneurial behaviour.

10) Technology Backup:Success of an entrepreneur depends largely upon his ability to adopt latest technology. Technical knowledge implies the ability to devise and use new and better ways of producing and marketing goods and services.1.1 EntrepreneurKarsanbhai patelBorn into a farmer family from north Gujarat, Karsanbhai finished his B.Sc. in Chemistry at age 21 and worked as a lab technician, first in the New Cotton Mills, Ahmedabad, of the Lalbhai group and then at the Geology and Mining Department of the state Government. In 1969, Karsanbhai set up Nirma, (named after daughter Nirupama) selling detergent powder. This was an after-office business - the one-man company would bicycle through the neighborhoods selling handmade detergent packets door to door. At a price of Rs. 3 per kg, (one third the price of leading detergents), it was an instant successKarsanbhai patelAfter three years, Karsanbhai felt confident enough to quit his job. Later he said:

The lack of any such precedent in my family made the venture fraught with fear of failure. But farmers from North Gujarat are known for their spirit of enterprise." Karsanbhai set up shop at small workshop in an Ahmedabad suburb. The Nirma brand quickly established itself in Gujarat and Maharashtra

1.4. Traits, qualities of an entrepreneurs Entrepreneur VS. Manager EntrepreneurManager OwnerServant Profit Salary Full risk bearing No risk bearing All functions Managerial functions only Innovator Executor 1.2 EntrepreneurshipD) The Early Career Dilemmas of an Entrepreneur:Most entrepreneurs struggle with many startup Founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. People may jump into the lifestyle to be their own boss, achieve great wealth, start a new trend, or all the above. The dilemma is that these goals are usually mutually exclusive. Some of the main differences between entrepreneurship and wage employment career options are as under

1.2 EntrepreneurshipD) The Early Career Dilemmas of an Entrepreneur:In the context of employment generation the three terms- Income generation, Self-employment and Entrepreneurship are often used interchangeably.1) Income Generation:Income generation is the initial stage in the entrepreneurial process in which one tries to generate surplus or profit. 2) Self-Employment:Self-employment is the second stage in the entrepreneurial process and refers to an individuals fulltime involvement in his own occupation. e.g. a person who starts a tea shop and remains happy and satisfied and has no plans to add on any other items like snacks , buns, soft drinks etc. or to grow in any other manner3) Entrepreneurship:Entrepreneurship is the terminal stage of the entrepreneurial process wherein after setting up a venture one looks for diversification and growth. An entrepreneur is always in search of new challenges. An entrepreneur is not a routine businessman he might not have resources but he will have ideas. C) Survival and Success:The most exciting part of Entrepreneurship is that they are their own master. When a person is an employee, he may work for others according to their plans. Some of the important characteristics that differentiate the successful organisations from the unsuccessful ones are as follows.1)Leadership:The most important aspect of successful business is leadership. It calls for clear vision, goals and objectives, well defined mission, dashing and employees participation. An entrepreneur must never lose sight of their end goal or dream of success. Each day has to be preached, practiced and worshipped in order to grow in business. With practice, comes vision.2)Control:Adequate but well-orchestrated control, constant feedback of results as well as setting and adherence of high standards give an organisation a cutting edge over others. Planning, foresight and analysis are also important qualities.3)Employees:To able to extract the best from its employees through total involvement, the organisations put a lot of emphasis on proper internal communication and on training employees.

1.5 Traits/Qualities of an EntrepreneurC) Survival and Success:Some of the important characteristics that differentiate the successful organisations from the unsuccessful ones are as follows.4)Nearness to Market: The successful organization is one which is very close to the market price. The process of systematic market research is used to develop products or process and to provide value for money to the customers. This helps to gain the market share.5)Getting Things Done: Efforts should be result-oriented. The result of hard work is everything. A person may either succeed or fail. They make money or go under. This does not mean that a person should not get into daily routines. 6)Making a Profit, Not a Living:An employee mind frame gets a fixed monthly salary along. But with own business, one has to remember to focus on making a profit and that means high sales and low overhead. To survive in a business, an entrepreneur must be focused on how they will make a profit today, tomorrow and next week. They must find ways to keep costs down to the exception of affecting their profit making capabilities.

1.5 Traits/Qualities of an EntrepreneurC) Survival and Success:Some of the important characteristics that differentiate the successful organisations from the unsuccessful ones are as follows.

7)Looking For Opportunity, Not Mistakes: Success is the result of making good decisions. Good decisions are made from good judgment. Good judgment comes from experience. Experience comes from bad decisions.

8)Knowing What Customers Want: An entrepreneur must be thorough with the knowledge of customers taste and purchasing patterns. A successful entrepreneur, to survive in the business, never stops from improving onto his interpersonal skills as well as customer-oriented mindset.

9)Innovation: Another important characteristic for success is a commitment to innovation which is vital in keeping ahead of the competition and perhaps the most difficult one to achieve.

1.5 Traits/Qualities of an EntrepreneurD. Entrepreneurship as a Style of Management:Entrepreneur must clearly envisage the future of the business in the light of uncertainties and the challenges by sharing repeatedly and forcefully vision for the firm with employees.leadership success is one of the key determinants of the companys success.1) Leadership:Entrepreneurs need to adapt a suitable style of leadership. Leadership styles are the patterns of behavior, which a leader adopts in influencing the behavior of his followers or subordinates, in the organizational context. a) Three Types Of Authority, Leadership Styles :i) Autocratic leadership Style of Management:Autocratic leadership style is one in which leader dominates and drives his subordinates through coercion, command and the instilling of fear in his followers. ii)Democratic Leadership Style:Democratic leadership style is the style of leadership also known as participative leadership, in which the entire group is involved in goal setting and achieving it.iii)Laissez-faire or Free Rein Style:In this style the leaders exercise absolutely no control. Laissez faire leaders use their power very rarely. They give the group complete freedom and depend largely upon subordinates to set their own goals and the means of achieving them.

1.5 Traits/Qualities of an EntrepreneurD. Entrepreneurship as a Style of Management:Entrepreneur must clearly envisage the future of the business in the light of uncertainties and the challenges by sharing repeatedly and forcefully vision for the firm with employees.leadership success is one of the key determinants of the companys success.2)Motivation as a Style of Management:A manager gets work done through others. Getting the work done depends mainly on whether a person has been motivated to do it. This can be done by creating in him a sense of responsibility and feeling of special interest in his work. Motivation is the degree of effort an employee exerts to accomplish a task; it shows up as excitement about work. The important aspects or features related with motivation are empowerment, job design, rewards, compensation and feedback.a) Empowerment:Empowerment is the process of giving workers at every level of the organization the power, the freedom, and the responsibility to control their own work, to make decisions, and to take action to meet the companys objectives. b)Job Design:Job design involves strategies to offer intrinsic rewards and motivation to workers.

1.5 Traits/Qualities of an EntrepreneurD. Entrepreneurship as a Style of Management:Entrepreneur must clearly envisage the future of the business in the light of uncertainties and the challenges by sharing repeatedly and forcefully vision for the firm with employees.leadership success is one of the key determinants of the companys success.Motivation as a Style of Management:c) Rewards and Strategies:Rewards and compensation involves what an employee gets from the job itself are intrinsic rewards and the extrinsic rewards offered by entrepreneur/manager to motivate workers. d)Feedback:Feedback to employees is also used as motivator. Business owners must motivate employees for better performance in their job they provide feedback on progress towards targets and cab be powerful motivator.

1.5 Traits/Qualities of an EntrepreneurE. The Entrepreneurial Venture and the Entrepreneurial Organisation:The main structures for organizing a business enterprise are the entrepreneurial organization, the bureaucracy, professional organization, divisional organization and innovative organization, according to management theorist Henry Mintzberg.Following are some of the modes of entrepreneurial venture and entrepreneurial organisation.a) The Small Business:Asmall businessstartup under an owner-manager is an example of an entrepreneurial organization. Here, the owner-manager generally maintains strict control over business operations. b) Entrepreneur's Roles:In the interpersonal role, the owner-operator provides leadership and represents the company to outsiders. c) Managing Growth:As the lean entrepreneurial organization grows in size, it might change into one of the other types of organizations as it responds to an increased need to efficiently manage complexity and segmentation of operations. d) Key Man Problem:The entrepreneurial organization might also face a key man problem. In this situation, the key man in the organization can be the owner-operator is typically the power base and decision-maker in the company.

1.5 Traits/Qualities of an EntrepreneurWomen entrepreneurs There is a phenomenal increase in the number of self employed women after the world war II.

In the US women own 25 percent of all business

In Canada, one third of the small businesses are owned by women and in France its one fifth

Woman entrepreneurs They want new challenges and opportunities for self fulfillment They want to prove their mettle in innovative and competitive jobs Woman entrepreneurs are found in different types of industries, traditional as well as non traditional such as engineering, electronics, readymade garments, fabrics, eatables, handicrafts etc. Motivation for women to become an entrepreneur is to explore and analyze Challenges to woman entrepreneurs Need for achievement, economic independence and autonomy are absentNo risk bearing capacity Lack of education Family involvement Male dominated society Lack of information and experience Problem of liquidity and easy availability of finance

Developing women entrepreneurs Consider women as specific target group for all developmental programmes. Better educational facilities and schemes should be extended to women folk from government part. Adequate training programme on management skills to be provided to women community. Encourage women's participation in decision-making. Vocational training to be extended to women community that enables them to understand the production process and production management.

Developing women entrepreneurs A majority of the women do not bother to keep themselves up to date on various incentives available To meet the organizational deficiency, the Punjab National Bank established a special cell at its head office The immediate tasks of the cell are To monitor the progress made by the bank in financing women entrepreneurs To collect and disseminate information to branches given by IDBI and Government agencies to women entrepreneurs Developing women entrepreneurs To establish liaison with specialized agencies, voluntary organizations etc. involved in this task

To organize entrepreneurial training program for women entrepreneurs

To explore possibilities of bringing about specific schemes for women entrepreneurs Developing women entrepreneurs Some of the important recommendations were drawn at the AWAKE conference were There should be better support for voluntary agencies like AWAKE by the state Governments More awareness programs should be conducted jointly by development agencies and voluntary agencies like AWAKE Simply technology demonstrations and training be made available at different part of the state by organizations like SISI and CFTRIDeveloping women entrepreneurs There should be a state advisory committee for development of entrepreneurship among women System enumeration of women entrepreneur should be carried out and further registration of women entrepreneurs should have separate coding so that data can be generated without difficulty. Both commercial tax department and the Industries Department should have such coding Developing women entrepreneurs The period of EDPs being conducted by various agencies is anywhere between three days to 6 weeks. Only a few of these are recognized for the purposes of incentives. There should be a separate nomenclature for those who are recognized or there should be clear announcement to this effect as many of the participants in short term EDPs are now being refused the incentives

The age limit of 45 for training in EDPs should be raised to 50 as many women start their enterprise late in their life at least at this point of time Developing women entrepreneurs The employment clause of 50% women should be removed from the definition of women entrepreneurs There should be better co-ordination between development agencies, voluntary agencies and financial institutions in putting together entrepreneurship development programmes, as many times the same areas or cities have many programmes while others go without any. Instead organizations could work at complementary and supplementary levels. Preference in Government purchases should be accorded to women entrepreneurs, especially items of downstream supplies Achievements of women entrepreneurs From ancient times to present era women have played different roles from different fronts. From housewifes to working women, from kitchen to board rooms, women emerge successful everywhere

Women managers face numerous problems at workplace. Women receive gender biased treatment from their colleagues

If a man is educated only one individual is educated but if a women is educated the whole family is educated MK Gandhi Achievements of women entrepreneurs Ritu Nanda CEO at Escolife and Ritu Nanda Services Pvt. Ltd. Is a veteran at starting ventures at Escorts

According to Ritu Nanda Women are born to be Managers. They are managing people, family, home, office, life etc all the time and with utmost ease.

Women are confident of themselves Role models of women entrepreneurs Ms. Ranjana Kumar Chairperson NABARD Ms. Lalita Gupte JMD, ICICI BankMs. Priya Paul CEO, Apeejay Surendra park HotelMs. Sulajja Firodia Motwani, Joint Managing Director, Kinetic Engineering Ms. Zia Mody, Head, AZB PartnersMs. Naina Lal Kidwai, HSBCMs. Chanda Kochhar, Executive Director, ICICI Bank Entrepreneurial success and failure reasons and remedies The problems follow the entrepreneur like a shadow. If he overcomes a problem a few more crop up.

The entrepreneur faces problems in the beginning i.e. starting problems

Problem when the enterprise is alive and kicking

If it is sick another set of problems Entrepreneurial success and failure reasons and remedies Problems of Industries are divided in two groups - External and internal

Internal Choice of an idea Feeble structure Faulty planning Poor Project Implementation Poor Management Poor production Poor quality Entrepreneurial success and failure reasons and remedies Internal Marketing Financial Crunch Labour problems Capacity Utilization Lack of vertical and horizontal integration Inadequate training in skills Lack of strategies and vision Inadequate connections and motivation External Problems

Infrastructural Location, power, water, post office, communication

Financial capital, working capital, long term funds, recovery Marketing, taxation, raw materialIndustrial and financial regulations, inspections Technology, government policy, Administrative hurdles Rampant Corruption, Lack of direction, Competitive and volatile environment Entrepreneurial success and failure reasons Internal causes Planning : a)Technical feasibility, inadequate technical know how, locational disadvantage, Outdated production processB) Economic viability : High cost of inputs, break even points too high, Uneconomic size of project, underestimation of financial requirements, unduly large investment in fixed assests, overestimation of demand Entrepreneurial success and failure reasons Implementation : Cost overruns resulting from delays in getting licenses and sanctions etc., Inadequate mobilization of finance Production Production management inappropriate product mix, poor quality control, poor capacity utilization, high cost of production, poor inventory management, inadequate maintenance and replacement, lack of timely and adequate modernization, high wastage

Entrepreneurial success and failure reasons Labour management : Excessively high wage structure, inefficient handling of labour problems, Excessive manpower, poor labour productivity, Poor labour relations, lack of skilled labour or technically competent personnelMarketing management : Dependent on a single customer or limited number of customers/ single or limited number of products, poor sales realization, defective pricing policy, booking of large orders at fixed prices in inflationary markets, lack of market feedback and market research, lack of knowledge of marketing techniques Entrepreneurial success and failure reasons Financial management : Poor resource management and financial planning, faulty costing, liberal dividend policy, General financial indiscipline and application of funds for unauthorized purposes, deficiency of funds, overtrading, absence of cost consciousnessAdministrative management : over centralization, lack of professionalism, lack of feedback to management, lack of controls, Lack of timely diversification, Excessively expenditure on R &D Entrepreneurial success and failure reasons External Causes : Infrastructural bottlenecks non availability of irregular supply of critical raw material or other inputs, transport bottlenecks, Chronic power shortagesFinancial Bottlenecks : Non availability of adequate finance Government controls and policies : Government price controls, Fiscal duties, abrupt change in government policies Entrepreneurial success and failure reasons Procedural delays on the part of financial/licensing/other controlling or regulating authorities (Banks, reserve bank of India, financial institutions, Government departments, licensing authorities, Monopolies and restrictive trade practices board etc.) Market constraints : Market saturationExtraneous factors : Natural calamities, Political situation, War, Multiplicity of labour unions Remedies The diagnosis will be a SWOT analysis of the organization describing the strength, weaknesses, opportunities and threats. This analysis will lead us to a meaningful revival plan has to be time bound to achieve the expected changes and resultsThe seven steps for revival are given below: Finalize the goals/objectives/targets for performance at all the levels to meet the organizations mission Revival plan Issue policy guidelines on major aspects that affect the image of the company in public and the work culture inside the organization Initiate the preparation of detailed systems manuals for the maintenance, budgets, costs, distribution, transportation, purchase, marketing inventory, personnel etc. Analyze past reports on production, quality, costs, performance, account receivable etc. and the connected financial and audit reports to get an overall idea of the present working systems and results Revival plan Meet senior executives from marketing/finance/personnel/materials/secretarial/legal department and (if possible) with competitors to access the external situations (Govt. policies, competitor activities, raw materials position) Brain storm with a select group to get creative ideas for improvement Appraise the board about the diagnosis and request them to spell out a clear mission of the company