1.

Concept of Entrepreneurship
Entrepreneurship is the oldest form of business organization in the
world. In fact, the concept of entrepreneurship is believed to be born
in the 1700’s! Over time it has evolved to keep up with the changes
in our world. Let us learn about the Four Key Elements of
Entrepreneurship.
Before proceeding further, let us first understand the concept of
entrepreneurship and its importance to the economy. An entrepreneur
is the sole owner and manager of his business. Actually, the word
translates to “the one who undertakes” in French.

From an economics point of view, an entrepreneur is the one who

bears all the risk of a business. And in return, he gets to enjoy all of
the profits from the business as well. While understanding the
concept of entrepreneurship we will also learn about the importance
of entrepreneurs in the economy. They bring in new goods, services,
technologies, etc. to the market.

Four Key Elements of Entrepreneurship

After having studied the concept of entrepreneurship, now let us look
at some key elements that are necessary for entrepreneurship. We
will be looking at four of the most important elements.

Innovation

An entrepreneur is the key source of innovation and variation in an

economy. It is actually one of the most important tools of an
entrepreneurs success. They use innovation to exploit opportunities
available in the market and overcome any threats.

So this innovation can be a new product, service, technology,

production technique, marketing strategy, etc. Or innovation can
involve doing something better and more economically. Either way
in the concept of entrepreneurship, it is a key factor.

Risk-Taking
Entrepreneurship and risk-taking go hand in hand. One of the most
important features of entrepreneurship is that the whole business is
run and managed by one person. So there is no one to share the risks
with.

Not taking any risks can stagnate a business and excessive impulsive
risk-taking can cause losses. So a good entrepreneur knows how to
take and manage the risks of his business. But the willingness of an
entrepreneur to take risks gives them a competitive edge in the
economy. It helps them exploit the opportunities the economy
provides.

Vision
Vision or foresight is one of the main driving forces behind any
entrepreneur. It is the energy that drives the business forward by
using the foresight of the entrepreneur. It is what gives the business
an outline for the future – the tasks to complete, the risks to take, the
culture to establish, etc.

All great entrepreneurs of the world that started with an

entrepreneurship business are known to have great vision. This helps
them set out short term and long term goals for their business and
also plan ways to achieve these objectives.

Organization
In entrepreneurship, it is essentially a one-man show. The
entrepreneur bears all the risks and enjoys all the rewards. And sure
he has the help of employees and middle-level management, yet he
must be the one in ultimate control. This requires a lot of
organization and impeccable organizational skills.
An entrepreneur must be able to manage and organize his finances,
his employees, his resources, etc. So his organizational abilities are
one of the most important elements of entrepreneurship.

2. Significance of Entrepreneurial Development

Entrepreneurship plays an important role in the economic and social

development of a nation. Due to economic and social development,
entrepreneurs create economic and social wealth. The importance and
significance of entrepreneurship is explained as follows:

1. Economic Development: Entrepreneurship activity contributes to the

economic development of a nation. Due to entrepreneurship, new and
innovative materials, products, technologies, processes are developed.
This increases production and distribution of goods and services,
resulting in growth and development of the nation.

Developed countries like Japan, USA, Germany, etc., owe their

economic development to the contribution of their entrepreneurs.
Without the innovative role of entrepreneurs, economic development of a
nation would get hampered.

2. Social Development: Entrepreneurs play an important role in social

develipment of a nation. Professional and successful entrepeneurs
recognize and respond to social development needs of the society.

The entrepreneurs contribute funds towards social development

activities like health, education, and community development activities.
They alsp generate new and innovative ideas to enhance social
development in the society.

3. Regional Development: The entreperneurs set up industries not only

in urban areas, but also in backwards areas. Due to government
incentives such as cash subsidy, tax holiday, duty concessions, etc.,
entrepreneurs are induced to set up industries in backward areas. As a
result of such initiative on the part of entrepreneurs, the backward areas
get developed not only economically but also socially.

4. Development of managerial capabilities:

The biggest significance of entrepreneurship lies in the fact that it helps
in identifying and developing managerial capabilities of entrepreneurs.
An entrepreneur studies a problem, identifies its alternatives, compares
the alternatives in terms of cost and benefits implications, and finally
chooses the best alternative.

This exercise helps in sharpening the decision making skills of an

entrepreneur. Besides, these managerial capabilities are used by
entrepreneurs in creating new technologies and products in place of
older technologies and products resulting in higher performance.

5. Creation of organisations:

Entrepreneurship results into creation of organisations when

entrepreneurs assemble and coordinate physical, human and financial
resources and direct them towards achievement of objectives through
managerial skills.

6. Improving standards of living:

By creating productive organisations, entrepreneurship helps in making

a wide variety of goods and services available to the society which
results into higher standards of living for the people.

Possession of luxury cars, computers, mobile phones, rapid growth of

shopping malls, etc. are pointers to the rising living standards of people,
and all this is due to the efforts of entrepreneurs.

7. Capital Formation: Entrepreneurs facilitate capital formation in the

country. The entrepreneurs provide employment to the people. The
employees save a part of their income. The entrepreneurs also save a
part of their profits. These savings lead to investment. Investment in turn
facilitates capital formation, i.e., production of capital goods, which can
be used for further production of consumer goods and services.

8. Consumer Welfare: Entrepreneurship activity facilitates consumer

welfare. Due to innovative ideas, consumers can enjoy new and better
types of goods and services. Also due to employment, purchasing power
of the people increases, resulting in more demand for new and better
type of goods. Therefore, the standard of living of the society improves.
 3. Is entrepreneur a manager also?

It’s always a team of skilled professionals who have made the brand a
success while working on the vision & idea of the entrepreneur. To ensure
that your ideas are put into action, to develop products & or services, you
need to be a good manager. Someone who can guide while executing the
strategy as planned to get things done. 

But at the same time, you need to inspire those around you to believe in your
idea as much as you do too. How people feel about you & your company
plays a crucial role in laying the foundation for your business success.

It’s always a team of skilled professionals who have made the brand a
success while working on the vision & idea of the entrepreneur. To ensure
that your ideas are put into action, to develop products & or services, you
need to be a good manager. Someone who can guide while executing the
strategy as planned to get things done. 

But at the same time, you need to inspire those around you to believe in your
idea as much as you do too. How people feel about you & your company
plays a crucial role in laying the foundation for your business success.

A Good Manager 

At the same time, by being a great leader you can ensure that you empower
them with faith and trust in your leadership skills. A combination of these
two aspects will literally decide how long they stay with you in your
organization.

A good manager understands they have to hire the right people, but at times,
you might shy from owning that responsibility in case your hired skills &
resources aren’t able to deliver. That is when you, as a leader can outshine,
take that ownership, amend it rather than getting into a blame game or panic
mode resulting in poor work culture, wastage of time & resources.

“If the person the executive places in a position does not perform, the
executive has made a mistake. It is the duty of managers to make sure that
the responsible persons in the organisations perform: How to Make People
Decisions: Peter F Drucker”
 7. Need and Importance of entrepreneurs
1. Growth of Entrepreneurship

Entrepreneurship the advent of new venture particularly small ventures to

materialize the innovative ideas of the entrepreneurs.

Thus, the growth or establishment of small enterprises ii the specific

contribution of entrepreneurship in every economy of the world.

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The statistics reveal that in USA economy nearly half a million small enterprise
is established every year. Our country is not an exception in this regard.

2. 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.

3. 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.

“Leapfrog” innovation, research, and development are being contributed by

entrepreneurship.

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.

4. 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.

5. 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.

There shall be no measurable effect upon the economy and no political

repercussions too.

6. 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.

7. 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.
8. 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.

That also capable employed persons to consume more goods and services. In
effect, entrepreneurship enhances the standard of living of the people of a
country.

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.

Entrepreneurship is the pioneering zeal that provides events in our civilization.

We are indebted to it for having prosperity in every arena of human life-

economic, technological and cultural.

The above discussion, in a nutshell, enumerates that tremendous’ contributions

of entrepreneurship.

8. Types of Entrepreneurship
Small Business
Small businesses represent the overwhelming majority of U.S. entrepreneurial
ventures. A small business could be any company, restaurant, or retail store that’s
launched by a founder, without any intention of growing the business into a chain,
franchise, or conglomerate. For example, opening a single grocery store falls under
the small business model; creating a nationwide chain of grocery stores doesn’t.
Small business entrepreneurs usually invest their own money to get their companies
off the ground, and they only make money if the business succeeds.
 

Defining Characteristics of Small Business

Entrepreneurship
What distinguishes small business entrepreneurs from other kinds of entrepreneurs?
There are a few distinct characteristics:

 Small business entrepreneurs focus initially on a single product, market, or locality.

While in their startup phase, the entrepreneurs probably don’t have plans to expand
the company.
 The initial goal of small business entrepreneurs is to make a profit, although even in
its early stages, the business may be motivated by the entrepreneur’s desire to effect
social change.
 Most small businesses are either self-funded or funded through small business loans.
Outside investors and venture capitalists are very rarely involved.
 These are among the greatest challenges small business entrepreneurs face:

o Ensuring a steady cash flow without relying on third-party investments

o Finding time for family and friends
o Staying abreast of technology and market changes that affect the business
o Devising a marketing strategy to attract the company’s target audience
o Maintaining a solid reputation for their brand
o Keeping an eye on the competition

What Industries Do Small Business Entrepreneurs Work

In?
While small business entrepreneurs work across a range of different fields, many of
them operate in the context of “mom and pop” brick-and-mortar shops: hairdressers,
bakers, restaurateurs, and retail store owners.

Additionally, small business entrepreneurship can encompass consultants and

creative professionals, such as copywriters, marketers, or graphic designers who go
into business for themselves. Service trades, such as electricians and plumbers, also
fall under this category.

Scalable Startup Entrepreneurship

Scalable startups are less common than small businesses, though they tend to
attract a lot of media attention. These businesses begin on a very small scale, often
as just the seeds of an idea. This germ is then nurtured and scaled, typically through
the involvement of outside investors, until it becomes something much larger. Many
Silicon Valley tech companies fall under this model; they begin in an attic, garage, or
home office before eventually scaling into large corporate headquarters.

The scalable startup entrepreneurship model at first resembles a small business, but
differs in its intentions for long-term evolution.

Key Characteristics of Scalable Startup Entrepreneurship

There are a few traits that distinguish the scalable startup model from the small
business model, as well as from other types of entrepreneurship.

 Like small business entrepreneurs, scalable startup entrepreneurs start their

companies on a modest scale. But unlike small business entrepreneurs,
scalable startup entrepreneurs have a vision for growth from the outset.
 Scalable startup entrepreneurs look not just to make profits but also to
generate revenues they can invest back into the business, fueling growth.
 The most common way to fund a scalable startup is through the pursuit of
venture capital.
 Scalable startup entrepreneurs face several unique challenges, as Startup
Nation describes:
o Attracting investors and raising venture capital

o Recruiting talented managers and employees without impinging on

cash flow or incurring debt
o Ensuring the business plan is flexible enough to accommodate shifting
markets and new technologies
o Planning and implementing an infrastructure for the business that is
inexpensive to launch yet capable of growing without disrupting the
core business
o Realizing aggressive growth targets to meet investor expectations and
attract future funding
The team the entrepreneur assembles to get the business off the ground and
implement its growth strategy has to possess all requisite skills, but more importantly
the members must share the founder’s vision for the company.

Noteworthy Examples
Melanie Perkins, Canva
In 2013, Perkins launched Canva with a simple premise, as CNBC explains: Make
graphic design accessible to everyone. Today, the company is often mentioned in
the same breath with massive tech giants, and it is valued at more than $3 billion.
Perkins first envisioned the company while in college, where she helped other
students learn to use design software. She knew there was an easier way to make
designing accessible.
Working with Canva co-founder Cliff Obrecht, who is now Perkins’ fiance, she
launched an online school yearbook design firm at the age of 19. The couple had
very little business experience and few resources, yet they created a website that
allowed students to collaborate and design personalized profile pages and articles
for yearbooks that the pair would print and deliver to schools themselves. Seven
years later, that business continues to thrive. Now, at the age of 26, Perkins has
made her dream of a free, easy-to-use design platform a reality.

Large Company Entrepreneurship

Sometimes, entrepreneurs work within the context of a larger, established company.
Imagine that you work at a large auto manufacturing company. Through careful
market research, you realize there is a high demand for motorcycles, and that your
company has many of the technologies and processes in place to branch into
motorcycle production. You go to your boss and ask for the funding to launch a
brand-new motorcycle division, and you are approved. This is an example of what
the large company entrepreneurship model might look like in practice.

Fewer than 1% of all U.S. businesses qualify as large businesses, but due to their
scope and influence, these companies are often well-known to the public.

Defining Large Company Entrepreneurship

The primary thing that distinguishes this model is that rather than building a new
business entity from scratch, it is the creation of a new business entity within an
existing company.

 Large company entrepreneurs address the needs and opportunities of an existing

business through innovation. This may include a new product line or division.
 Large company entrepreneurs look to branch into new customer markets, broadening
the reach of an established business.
 Large company entrepreneurship may entail the acquisition of new companies and
resources, or investment into research and development.
 The key to success for large company entrepreneurs is sustaining growth in the long
term, so the major challenge to their success is to anticipate and avoid obstacles to
growth:
o Ensuring that the firm’s new and innovative products are first to market

o Protecting and growing the market share of existing products while promoting
the new offerings
o Building a cohesive corporate culture that is easy for newly acquired
organizations to adopt
 o Overcoming the inertia that can prevent large firms from acting on and
responding to changing markets and innovative technologies faster than the
competition
o Failing to scale sustainably (growing too much, too soon)
 

Major Examples
Google
The tech company has used acquisitions such as YouTube to amass a vast tech
portfolio beyond search, which remains tremendously profitable but lacks the steep
growth projection of other technologies. This strategy allows the firm to be active
in many different markets, including real-time traffic (Waze), smartphones (Motorola
Mobility and HTC’s Pixel Smartphone Division), and health wearables (Fitbit), as CB
Insight describes. Two recent Google acquisitions are the customer service software
suite Onward, which the company acquired to gain a share of the growing market for
automated customer service, and Tenor’s GIF search engine, which broadens the
firm’s search portfolio and attracts a much-desired tech audience: professional web
developers.

Social Entrepreneurship
The final model to consider is social entrepreneurship, which seeks innovative
solutions to community-based problems. According to Investopedia, social
entrepreneurs “are willing to take on the risk and effort to create positive changes in
society through their initiatives.” In other words, a social entrepreneur launches an
organization that’s fundamentally about enacting positive social change, not merely
generating profits. The social change in question may pertain to environmental
conservation, racial justice, or philanthropic activity in an underserved community.
Social entrepreneurship has emerged as businesspeople consider the effect their
company has on the world, beyond mere profits and losses.

What Is Social Entrepreneurship?

The primary factor that distinguishes social entrepreneurs from the other types of
entrepreneurs is their mission. These entrepreneurs are focused on solving a
problem in their community or furthering some kind of social change. Their objective
goes beyond the bottom line.

Some additional factors to consider:

 Most examples of social entrepreneurship take a nonprofit structure. Money

that’s generated is put toward advancing the company’s mission and
maintaining necessary overhead but not necessarily toward corporate growth
or expansion.
 Social entrepreneurship often involves alternative forms of fundraising, which
may include grants, sponsorships, or small-donor fundraising within the
community.
  The World Economic Forum identifies social entrepreneurship as a powerful
way to apply market-driven approaches to address social problems. However,
despite their success at finding innovative and practical solutions, social
entrepreneurs face serious challenges:

o Innovation requires experimentation, but funding for social

entrepreneur projects focuses on results, so there’s little incentive to
pay for unproven approaches.
o All enterprises require a steady flow of capital, but social entrepreneur
projects tend to provide investors with lower returns than other
opportunities.

o Relations between social entrepreneurs and investors can become strained

by conflicting goals and a lack of financial transparency.
 

Notable Examples
Shiza Shahid, founder of the Malala Fund
Shahid is a Pakistani entrepreneur who launched the Malala Fund to promote
educational opportunities for girls, in particular those from disadvantaged
communities. The New York Times reports that after co-founding the Malala Fund
with Nobel laureate Malala Yousafzai, Shahid started an investment fund for
mission-driven startups. Most recently, Shahid and two partners launched a line of
cookware for the “modern multi-ethnic American kitchen.”

9. Why Be Self-Employed? 10 Benefits of

Entrepreneurship
1. The freedom to pursue your own vision.
You can have your own view of the world, and entrepreneurship is the only venue where you
pursue that view and see the fruition of your vision. Self-employment allows you to do your
own thing, and pursue those areas that you feel passionate about.

2. The control and flexibility you have over your own time.
As your own boss, you work when you want to work; and stop if you want to stop. You can
tailor your work according to your lifestyle and accommodate various tasks. You can work in
however way you please — in your pajamas, with the TV loudly blaring — without getting a
memo from the personnel department. Self-employment means freedom from rules.

3. The opportunity to learn and gain knowledge.

The entrepreneur often wears many hats — the strategic planner, the marketer, the customer
service rep, and the sales rep, even the bookkeeper. There are a million things you probably
didn’t know before you started the business that you are now forced to learn — and gaining
all this knowledge enriches you as a person.

4. The highs and lows of self-employment.

Entrepreneurs face tremendous challenges and experience incredible joys when these
challenges are overcome. If you crave excitement, become an entrepreneur. One moment, the
local newspaper is featuring you; and the next, you are losing your biggest customer. There’s
never a dull moment in self-employment.

5. The sense of pride and fulfillment in accomplishing

things.
As an entrepreneur, you make things happen. You create a vision, lay out the plans to bring
the plan to fruition, and pursue the steps needed to make the business a success. Doing all
these things can give you an incredible feeling of pride and joy – seeing your website used by
people, finding your products in the department store, getting compliments from customers
on how your business has helped them, and being written about by the media. In many
respects, your business is your baby, and nurturing it and seeing it grow can give any parents
a sense of fulfillment.

6. The confidence you gain in knowing that you can do

it.
Entrepreneurship is tough. There will be moments where you will question yourself, or your
decisions into going into the business. Sometimes, you’d even think that you couldn’t do it
when the obstacles seem insurmountable. But once you succeed and overcome the
challenges, you gain renewed confidence and respect for yourself that you can do it.

7. Potential earnings exceed a salaried employee.

As an employee, no matter how hard you work, the financial remuneration you receive is
limited to your salary and an occasional bonus. As a self-employed person, you can earn so
much more if you hit the right business idea and execute the business well. The potential
financial windfall is so much higher as an entrepreneur rather than a corporate person.

8. The business owner reaps the full rewards.

You are the business; anything the business gains is yours. If you are an employee in the
corporate world, your bosses may even claim your success as theirs! If you are working for
others, you are only a cog in the whole machine
9. Each new day is a challenge.
You never get bored as an entrepreneur: every day brings a new challenge, new tasks, and
new discoveries. You set your pace and you can go fast if you choose or slow down if you
feel like it.

10. The chance to share your learning.

At the end of the day, you can have the chance to teach and share with others the things
you’ve learned as an entrepreneur. Sharing what you learned can be your way of giving back
to the community – it can take the form of mentoring other would-be entrepreneurs, writing a
book so others may see how you did it, or even talking about your experiences. There is so
much pleasure in giving, and entrepreneurship gives you a life full of rich experiences.

Entrepreneurism
Entrepreneurism is a state of mind, a method of looking out at the world and
frequently enjoying for opportunities.

You attune your mind so you look at every situation and evaluate for its company
capacity.

Many effective business owners started by providing a solution that they themselves

wanted however located missing. If you can determine a solution you require yet
can’t get the possibilities are that there’s a great deal of staff that additionally desire
that service.

Merely taking care of a problem or locating a gap in society that is not being fulfilled,
and that could also be providing food.

Second, when it comes to entrepreneurial journalism, the relationship in between risk

and also rewards is very essential. It’s commonly claimed that it’s far better to be
an entrepreneur when you are young– the basic factor is that you have less to shed.

Americans with their market-driven culture can instruct a lot

regarding entrepreneurism.

A start-up society exists in the US, emanating from Silicon Valley— that location
close to San Francisco which properties multitudes of modern internet companies.
This society encourages development, cal and also experimentation- culated risk
absorbing business.

In the UK stale high road banks are generally extremely cautious whenit comes to
lending money to brand-new businesses. The embarassment of personal bankruptcy
still places many people off from starting businesses in the UK.

In Silicon Valley society it’s thought about appropriate, maybe also preferable, to
have a few failed endeavors in the process you before you lastly manage to do well.

Fifty years earlier, beginning a small business implied either opening up a dining
establishment or a neighborhood retailshop. When the internet exploded, so did the
prospects for business owners.

Currently, beginning a brand-new company could be as easy as buying a domain

name and also placing your code online.

In British universities entrepreneurism was once just mentioned in the company

school– a part university after that shunned by various other self-controls. Company
schools are blooming as well as other disciplines have now seen the light.

Lots of universities give ‘seed capital‘– grants or low-interest financings– to allow

pupils to develop their brilliant suggestions into brand-new companies.

Numerous likewise have actually created links with suc- cessful local entrepreneurs
and also business angels that give all-important mentoring guidance. ‘Universities
can be viewed as entrepreneurial rooms where students as well as team involve
creatively and also collaboratively in testing borders of knowledge and also
understanding; where pupils can take dangers they might not absorb a job- place,’
state David Baines and Ciara Kennedy (2010), two journalism teachers.

The shame of insolvency still puts numerous people off from starting businesses in
the UK. Currently, starting a new company could be as easy as buying a domain and
putting your code online. In British colleges entrepreneurism was when just pointed
out in the company college– a component university after that avoided by various
other disciplines.

Many universities provide ‘seed resources’– grants or low-interest lendings– to

permit students to establish their bright suggestions right into brand-new companies.

Lots of additionally have created links with suc- cessful neighborhood business
owners as well as business angels who provide all-important mentoring insight.
14. Key Elements
1. Passion. A startup founder is often driven by the quest for deeper purpose
beyond the sheer mechanics of operating a business. My mission for my
startup, Yes Man Watches, is to empower people to consider the most
valuable asset in their lives: time. I rise early every morning because I don’t
want to waste my day. If you have passion for your startup, this will drive
you to turn your idea into a reality. Without that missing spark, you'll lack the
necessary motivation to put in all the early mornings and late nights to get
your business off the ground.

2. Perseverance. Entrepreneurs need to be able to deal with obstacles. A

business does not get built overnight, and turning your idea into a reality will
take time. You'll have to become accustomed to people saying no to you.
What makes entrepreneurs great is having the perseverance to grow
regardless of how many times they are shut down. When creating the supply
chain for my startup, we screened two dozen watch manufacturers. After
approaching through about 10, I became quite frustrated at hearing that my
company's patent-pending buckle couldn’t be made. Without perseverance, I
would have given up.  

Follow-up is key. People might present plenty of excuses for not getting back
in touch with you. Yet if you show persist in trying to make things happen,
you’ll probably succeed. For a Kickstarter campaign, I contacted dozens of
writers at a single media outlet in the hopes of reaching one who might write
about my company. Even though the conversion rate may be minuscule, it
only takes one person to make a difference.

3. Resourcefulness. A vital ability for an entrepreneur is knowing how to

make the most of what you have. Your assets as an entrepreneur will be
limited, so use them to the fullest. Tapping into a network is key. When
looking for a photographer, I reached out to the photography department at
my university and the staff sent an email blast to students looking to build
their portfolio. Within a week, I had professional-looking photos.

4. Open-Mindedness. As an entrepreneur, you may think you've zeroed in

on a business plan, but you'll need to learn to take in the opinions of others.
Then if it appears that your plan won’t work, then adjust. As Mark Cuban
once said, “Follow the green, not the dream.” If your dream startup won’t
make you any money, you may need to change your focus. When my friend
Morgan Schwanke started OnMyBlock, he originally wanted to focus solely
on a social platform for college students to find off-campus housing. He now
concentrates his startup on every aspect of renting an off-campus space; it
provides tenant listings to landlords and facilitates the making of rent
payments.

5. Spongelike nature. Being an entrepreneur involves a learning process. If

you’re not willing to learn, think about leaving the startup world. You need
to be able to soak in everything and anything you can, just like a sponge. The
more you learn, the better. A saying I'm fond of is “One who knows all the
answers has not been asked all the questions.” When starting Yes Man
Watches, I honestly didn’t know anything about watchmaking. I looked up
everything I could and soaked in all the information. Now I know quite a bit
about watches, from the types of stainless steel used to make the watch case
and the variety of battery powering the watch movements.

Entrepreneurship is much more than a 9-to-5 job. I don’t breathe without

thinking about progressing my business aspirations. If you have an idea you'd
like to turn into a reality, go for it. You'll never know the outcome if you
don't try. 

17. Soft Skills and Soft Skills appraisal

Employers recognize the importance of soft skills in the workplace, so it's important
for people to put soft skills at the forefront of job applications. Soft skills demonstrate
that you understand the different characteristics that will help you succeed within an
organization and your specific position. Here are some of the top reasons soft skills
are important when finding a job and growing your career. Soft skills:

Indicate longevity

When hiring for a position, most employers look for signs that an applicant will stay
at their company long-term. If an employee shows the capacity to grow at a
company, that employer will not have to expend more resources hiring a
replacement. Soft skills like conflict resolution, commitment and motivation can make
you a long-term asset to employers. Your attitude towards work is one of the most
important indicators of longevity at a job, and employers may use longevity to decide
between two similar applicants.

Measure teamwork

If you're applying for a position as part of a team, the hiring manager will judge your
application partly based on how well you can fit into a group dynamic. Employers use
soft skills as a way to measure your teamwork and communication abilities.
Regardless of how great your technical skills are, you need to be a team player to
use them effectively. To appeal to an employer's goal of finding a great team
member, list soft skills like flexibility and active listening on your resume.
Maintain relationships

Soft skills not only support your relationships in the workplace, they determine your
success working with clients and business partners. Employers seek out employees
they can trust to represent the company in a professional and friendly way. Soft skills
differentiate between candidates who are qualified for a job and candidates who will
exceed expectations by putting effort into their professional relationships. People
with a good disposition for customer service are good for business in any industry, at
any level of experience.

Grow a network

Soft skills are critical for creating and growing your personal network and making
professional contacts in the workplace. People with strong soft skills have a curious
attitude that allows them to pursue professional leads and develop industry
knowledge at a fast pace. Employers rely on people who have a strong professional
network to help them make business connections, provide professional development
and even make hiring decisions. If you can recommend useful services due to your
network, your employer will likely value your opinions and ideas more highly.

Facilitate growth

Most soft skills contribute to your ability to not only use your existing skills well but to
develop and grow those skills consistently over time. The ability to accept and
implement feedback is a soft skill that many people struggle with. Employers also
want to hire people who not only respond to criticism from others but consistently
look for ways to improve without being asked. Use your soft skills to be self-sufficient
and reflective when it comes to work, and you can quickly become a standout
employee.

Stay organized

Attention to detail, time management and the ability to delegate are all soft skills that
determine how organized you are at work. Being organized will help you prove that
you are a reliable resource who can not only do their work well but do it in a timely
manner. Organization combined with other soft skills like communication helps you
build trust between your team because they know they can rely on you to help them
find the information they need. You can begin showing potential employers your
organization skills even before interviewing by communicating in a timely manner
and submitting a well-formatted resume.

Prove initiative

Employers hire and promote people who regularly demonstrate motivation and
initiative. Having a positive attitude and being creative both show employers that you
have the initiative to think of new projects or ways to solve problems. Soft skills also
help you follow through on your ideas, using motivation to translate brainstorming
sessions into actionable projects. Emphasize your soft skills to show employers that
you have plans to grow and inspire others through your focus and drive.
Develop leadership

Show employers that you have leadership capabilities by emphasizing soft skills on
your resume. Focusing on your soft skills shows that you are thoughtful about how
your habits and attitude impact others in the workplace, an essential part of great
leadership. One of the reasons employers seek out soft skills is that they are more
nuanced than technical skills and can adapt to a variety of personality types and
settings. People with strong soft skills can analyze what kind of leadership strategies
their team needs to succeed and implement different strategies for each setting.

Gain confidence

Your social skills can help you navigate workplace issues with confidence. Your
confidence will help you influence others and persuade them of your perspective in
professional situations. This can be especially useful during an interview, where your
confidence in your soft skills could convince an employer to choose you over another
applicant. Using soft skills to build your confidence can help you integrate into a new
workplace environment and establish yourself as an essential member of their team.

Establish a reputation

Soft skills are not just important for growing your reputation, they can also contribute
to your employer's reputation. The way you interact with clients and business
partners can influence how people perceive a company within your community,
impacting their ability to do business. Your soft skills determine the success of your
social interactions, the timeliness of your work and your ability to mediate conflicts on
behalf of your employer to build a great reputation.

Soft Skills appraisal

Performance appraisal season often is dreaded by employees and supervisors
alike. Supervisors feel the crunch of having to squeeze in preparation for
performance appraisals as well as time for individual meetings with their employees
to review the ratings they give. If the organization doesn’t support feedback
throughout the evaluation period, this is the only time employees get to hear how
they’re doing job-wise and how their supervisors rate their soft skills as opposed to
their functional expertise or actual job skills.

List soft skills that apply to your workforce. Soft skills are professional traits such as
relationship-building, integrity, time management, dependability and critical-thinking
skills. They generally are difficult to measure because every employee’s work style
is different, and no two employees have the same set of soft skills. In addition,
personality plays a role in how an employee exhibits soft skills. Assess the types of
soft skills your employees are more likely to exhibit or the soft skills that are
prevalent for your industry or type of business.
2

Teach supervisors the difference between job skills and soft skills, as well as the
challenges associated with rating soft skills. It’s easy to rate functional expertise, or
job skills, because the employees are either right or wrong in performing their job
tasks. Functional expertise includes activities that can be measured, observed,
evaluated and rated, such as accurately entering financial information for
accounting clerks or the precision with which a registered nurse starts a PICC line
for intravenous drug administration. Soft skills, on the other hand, are difficult to
measure because subjectivity occurs in the course of both demonstrating and
evaluating those skills.

Assign a quantitative measure to soft skills, which can be difficult but not
impossible. Measuring dependability may be one of the easiest soft skills to
measure quantitatively. Showing up for work every day on time is one way to
determine whether an employee is dependable; however, another measure is
whether the employee’s team members can depend on her to fulfill her
responsibilities on team projects. If attendance is the measure, then draw a
baseline at which the employee’s attendance is less than desirable, with perfect
attendance being rated excellent for performance appraisal purposes. Less-than-
desirable attendance might be calling in sick on Fridays and Mondays or repeated
tardiness, which creates havoc on a production line.

Provide training to supervisors. Supervisors who conduct performance appraisals

of soft skills must be cognizant of how bias can affect ratings for soft skills. For
example, a supervisor who’s an introvert may find it hard to give high performance
ratings to employees who are extroverts and whose interpersonal skills are vastly
different than their own. Or, a supervisor who places a higher value on the ability to
follow instructions might think employees who show initiative are overstepping
boundaries. Encourage supervisors to be as objective as possible in evaluating soft
skills – teach them to evaluate soft skills according to what’s necessary for the
employee’s job function rather than the supervisor’s personal feelings about certain
soft skills.

Construct a chart for supervisors to use in determining the importance of soft skills
ratings in relationship to job skills. How soft skills are rated during performance
appraisals is just one aspect of the evaluation process. Another factor is the
importance of soft skills in relationship to functional expertise, or job skills.
Occupations that require a great degree of precision, accuracy and experience will
probably put less emphasis on soft skills. Employees in leadership roles or who work
in sales and customer-facing roles might need to be rated on how well their soft
skills are in addition to their product knowledge. Their success depends on
cultivating relationships, building trust and credibility and motivating others rather
than how accurate their keyboarding skills are.
The Importance of Business Etiquette
Building Strong Relationships
Professional behavior helps build strong relationships among management, staff and clients
because proper etiquette entails honest and fair dealings with everyone. People appreciate
honesty in their business dealings. If a manager is honest with a client about a mistake he
made instead of trying to cover it up, the client is likely to feel respected and will trust the
manager and the business in the future.

According to EE Compendium, people like others who have good manners and are more likely
to buy from those they like than those they do not. Loyalty to a business is generated through
the solid relations developed by consistent professionalism and integrity shown by all company
employees. Business owners should demand good etiquette from their employees and should
model this themselves.

Promoting Positive Atmosphere

A good working environment is fostered by good business etiquette. When management and
workers treat one another with the respect and sensitivity dictated by good business manners,
it creates a positive working atmosphere. For instance, when the staff takes the time to
express gratitude to fellow workers for their work efforts, it makes for a more congenial
workplace.

When employees feel comfortable, they are likely to be more productive, work better as
teammates and maintain upbeat attitudes that help sell their products or services. Good
etiquette should be stressed throughout the entire company as, according to CBM Training, a
single person on staff displaying a lack of etiquette can ruin the working environment for
everyone.

Reflecting Confidence
Fine business etiquette reflects confidence because the individual is seen as someone who is
together and knows what to say and how to say it. A worker dealing with an upset customer,
for example, can take the customer to a private office or space to listen attentively to the
concerns. They should speak calmly and respectfully to the client so the client relaxes and
responds well to the confident worker who used business etiquette to successfully handle the
situation.

A confident approach helps the company's marketability. Customers feel more secure dealing
with a manager or other staff member who displays exceptional business manners. Confidence
also boosts the morale of workers who feel they can accomplish more and react positively to
change.

Preventing Misunderstandings
Taking business etiquette seriously in your company will help prevent misunderstandings
because proper etiquette requires everyone to interact professionally with one another and to
communicate clearly and honestly. For example, managers who always speak on a
professional level with employees need not fear making inappropriate remarks as they guard
against casual types of interactions. Those in management who allow non-business-like joking
or teasing can find themselves in hot water should employees feel they are being harassed.

19.How to Develop Entrepreneurial

Competencies? 
The competency results in superior performance. This is exhibited
by one’s distinct behaviour in different situations. The popular
Kakinada experience conducted by McClelland and winter (1969)
has proved beyond doubt that the entrepreneurial competency can
be injected and developed in human minds through proper
education and training. Competency finds expression in human
behaviour.

How to develop and sharpen the entrepreneurial

competency is suggested in the following method or
procedure consisting of four steps:
1. Competency Identification and Recognition

2. Competency Assessment

3. Competency Mapping

4. Development Intervention

A brief description about each of these follows in turn:

1. Competency Identification and Recognition:
Acquisition of a new behaviour like entrepreneurial behaviour
begins with understanding, identifying and recognizing of what
entrepreneurial behaviour means. In other words, the first step
involved in developing the entrepreneurial competency is first to
identify and recognize the set of competencies required to
effectively behave like an entrepreneur.

2. Competency Assessment:
Once the set of competencies is identified and recognized to behave
like an entrepreneur, the next step is now to see what
entrepreneurial competencies the person actually possesses. In
other words, the actual competencies possessed by an entrepreneur
are examined against the required set of competencies to effectively
behave or act like an entrepreneur.

Where one stands with respect to a set of required competencies to

act like an entrepreneur or what is the level of one’s competence can
be ascertained by asking the relevant questions to a competence.

3. Competency Mapping:
Now, the actual competencies possessed by an entrepreneur are
compared with the competencies required to become a successful
entrepreneur to ascertain the gap in the entrepreneurial
competencies of an entrepreneur (Cooper 2000). This is called in
the human resource training and development lexicon as
‘Competency Mapping.’ In other words, this is just like ‘training
needs identification’ in case of HR training.

This is presented as follows:

A popular performance tool used to map the (entrepreneurial)
competency is based on “Skill to Do / Will to Do’ chart.”Skill to Do’
refers to the entrepreneur’s / individual’s ability to do the job and to
Do’ refers to the entrepreneur’s individual’s desire or motivation to
do the job.

In other words, the ‘Ability to Do / No Ability to Do’ dimension of

this comes within the purview of the “Entrepreneurial Competence’
and the “Will to Do /No Will to Do’ dimension comes within the
purview of the ‘Entrepreneurial Commitment.’:

This may result in four possible situations as shown in the

following Figure 11.2:

These four situations mean the following:

(A) Ability to Do / Will to Do:
Among all four situations, this is the ideal one. The entrepreneur is
fully able, i.e. qualified and is performing his job as designed and
desired. He is supposed to be star or ideal performer as an
entrepreneur.

(B) No Ability to Do / Will to Do:

In this situation, the entrepreneur is putting out his efforts to
perform the job, but is not getting the desired results out of his
efforts. It means he is lacking ability or skill to perform the job.
Thus, it implies that the entrepreneur needs training, or say,
‘competency building.

(C) Ability to Do / No Will to Do:

Here, the entrepreneur is qualified or possesses the ability to do his
job but is not willing to perform the same. This implies the lack of
desire or motivation. Thus, the entrepreneur needs to be motivated
to perform his job.

(D) No Ability to Do / No Will to Do:

The entrepreneur has deficiency in both ability and will
(motivation). In a sense, he is just like deadwood and his
entrepreneurial job is in jeopardy. Thus, the entrepreneur either
needs to continue like this or disappear from the entrepreneurial
role.

4. Development Intervention:
After understanding, internalising and practicing a particular
behaviour or competence, one needs to make an introspection of the
same in order to sharpen and strengthen one’s competency. This is
called ‘feedback’.

In simple terms, feedback means to know the strengths and

weaknesses of one’s new behaviour. This helps one know how the
new behaviour has been rewarding. This enables one to sustain or
give up the exhibition of a particular behaviour or competence in his
future life.

 
20. Important Classification of Entrepreneurs

CLASSIFICATION OF ENTREPRENEURS ACCORDING TO THE

TYPE OF BUSINESS
According to the type of business, entrepreneurs shall be classified as Business
Entrepreneurs, Trading Entrepreneurs, Industrial Entrepreneurs, Corporate Entrepreneurs,
Agricultural Entrepreneurs, Retail Entrepreneurs, Service Entrepreneurs and Social
Entrepreneurs.

1. BUSINESS ENTREPRENEURS
Business entrepreneurs we those who conceive an idea to for a new product or service and
then create a business to convert their ideas into reality. These entrepreneurs may be found in
small business units or big enterprises. They concentrate both on production and marketing
activities. Example: A Printing Press, bakery or a textile unit.

2. TRADING ENTREPRENEURS
Trading Entrepreneurs are those who undertake trading activities. These entrepreneurs do not
concentrate on manufacturing activities. They give more emphasis on distribution and
marketing of goods. They identify potential markets, create demand for the product and
influence people to buy the product. Example: Agents and Wholesalers.
3. INDUSTRIAL ENTREPRENEURS
Industrial Entrepreneurs are those who concentrate in industrial and production activities.
Trey identify the needs of the customers and manufacture a product according to their needs.
They are generally a product-Oriented entrepreneur. Example: A manufacturer of
Automobile spare parts, computer accessories.

4. CORPORATE ENTREPRENEUR
Corporate entrepreneurs are those who exhibit innovative skills in organizing and managing
corporate undertaking. Example: A Trust registered under the Trust Act.

5. AGRICULTURAL ENTREPRENEUR
An agricultural entrepreneur is one who concentrates on agricultural activities. These
entrepreneurs concentrate on activities like raising agricultural production, marketing of
fertilizers etc.

6. RETAIL ENTREPRENEURS
Retail entrepreneurs are those who undertake trading activities. They have direct contact with
customers and hence they are customer oriented. Example: An entrepreneur running a
departmental store

7. SERVICE ENTREPRENEUR
A service entrepreneur is one who provides services to customers. They make profit by
rendering services. Example: An entrepreneur running a hotel or dry cleaning unit.
8. SOCIAL ENTREPRENEUR
A social entrepreneur is one who provides importance to the society by serving them. He
concentrates on social issues and does not aim to make profit. Example: A person running an
orphanage.

CLASSIFICATION OF ENTREPRENEUR ACCORDING TO THE

STAGES OF DEVELOPMENT
According to the Stages of development, entrepreneurs shall be classified as First Generation
Entrepreneurs, Modern or Innovative Entrepreneurs, Classical Entrepreneurs and Inherited
Entrepreneurs

1. FIRST GENERATION ENTREPRENEUR

A first generation entrepreneur is one who sets up an enterprise by his innovative skill. He
combines various factors of production and provides marketable product or services by
adopting innovative ideas. He is the first person to start an enterprise on his own. Though
such a person may have the family background of some business, such entrepreneurs may
also establish a certain business which may be unrelated to their family business.

2.MODERN ENTREPRENEURS OR INNOVATIVE

ENTREPRENEURS
A modern entrepreneur is a dynamic entrepreneur. He always looks for changes and responds
to the changing demand of the market. His business ventures suits the current marketing
needs.

3. CLASSICAL ENTREPRENEUR
Classical entrepreneur is a stereo type entrepreneur. He aims at maximizing profits at a
consistent level. There may or may not be an element of growth. Survival of the firm is given
more importance by these entrepreneurs.

4. INHERITED ENTREPRENEURS
These entrepreneurs have inherited family business or possess experience from their family
business. These entrepreneurs may like to diversify a little from their family business.

CLASSIFICATION OF ENTREPRENEURS ACCORDING TO

MOTIVATIONAL ASPECTS
According to motivational aspects, entrepreneurs shall be classified as Pure Entrepreneurs,
Induced Entrepreneurs, Motivated Entrepreneurs and Spontaneous Entrepreneurs.

1. PURE ENTREPRENEUR
A pure entrepreneur is a person who is motivated by psychological and economic factors.
Entrepreneurial task is undertaken by them due to certain reasons. Ability to handle risk,
desire to enjoy better status, desire to get recognition in the society, thirst for making money
motivates a person to take up entrepreneurial activities.
2. INDUCED ENTREPRENEUR
Induced entrepreneur are those who takes up entrepreneurial task due to the incentives and
subsides granted by the government. Financial and technical assistance provided by the
government motivates a person to start new ventures.

3. MOTIVATED ENTREPRENEUR
They are motivated by the desire far their self-fulfillment. They emerge because of the
possibility of producing and, selling new products. They are also motivated by economic
factors.

4. SPONTANEOUS ENTREPRENEUR
A person, turns out to be an entrepreneur, because of the natural talent vested in him. These
entrepreneurs have self confidence and emerge as challengers. They take up entrepreneurial
activity in order to tap their talents. They have great self confidence in their talent and are
highly resourceful.

CLASSIFICATION OF ENTREPRENEURS ACCORDING TO

TECHNOLOGICAL ASPECTS
According to Technical Aspects, Entrepreneurs shall be classified as Technical
Entrepreneurs, Non-Technical Entrepreneurs and Professional Entrepreneurs.

1. TECHNICAL ENTREPRENEUR
A technical entrepreneur is one who concentrates more on production activities. He has got
sound technical knowledge. He utilizes his technical knowledge and demonstrates his
innovative capabilities. He is also known as technocrat.

2. NON-TECHNICAL ENTREPRENEUR
A non-technical entrepreneur concentrates more on marketing activities. He tries to find out
new strategies for marketing goods. He also promotes his business by employing various
marketing methods.

3. PROFESSIONAL ENTREPRENEUR
Professional entrepreneur is a person who applies innovative ideas in setting up of a business.
He is interested in establishing the enterprises rather than managing it. Once the business is
established. the entrepreneur will sell the business to some one else.

CLASSIFICATION OF ENTREPRENEURS ACCORDING TO

CLARENCE DANHOF
Clarence Danhof had classified entrepreneurs based on his study on American agriculture. He
classified entrepreneurs into four categories.

1. INNOVATIVE ENTREPRENEUR
An innovative entrepreneur is one who introduces new product, new service or new market.
An innovative entrepreneur is also known as modern entrepreneur. An innovative
entrepreneur can work only when a certain level of development is reached. These
entrepreneurs introduce new changes and develop the business after a certain level of
development is reached. They invent new products. Such kind of entrepreneurs can be seen in
developed countries, as large sum of money can be diverted towards research and
development purposes.

 2. ADAPTIVE ENTREPRENEUR

Adaptive entrepreneur is one who adopts the successful innovations of innovative
entrepreneur. These entrepreneurs imitate the techniques and technologies innovated by
others. These entrepreneurs can be seen both in underdeveloped and developing countries.
They also make small changes in relevance to their market environment.

3. FABIAN ENTREPRENEUR
A fabian entrepreneur is one who responds to changes only when he is very clear that failure
to respond to changes would result in losses. Such entrepreneurs do not introduce new
changes. They also do not desire to adopt new methods. They are very shy and stick to old
customs. They are very cautious.

4. DRONE ENTREPRENEURS
These entrepreneurs do not make any changes. They refuse to utilize the opportunities and
may also suffer losses. They are very conventional. They refuse to introduce changes. They
even make losses but avoid changes. Sometimes they may be pushed out of the market.

22. Entrepreneurs vs Managers

Who is an Entrepreneur?
Very basically speaking, an entrepreneur is a one-man show that runs
entrepreneurship. However, such a person usually has some unique
attributes that allow him to be successful in his endeavors. He is
essentially an initiator and a leader. He brings business ideas to
fruition thus starting off his venture.

A successful entrepreneur is usually a responsible person. He is

accountable for the success or the failure of his venture, and he takes
this responsibility very seriously. And since he is the only person in-
charge he is automatically the leader. In fact, leadership qualities are
one of the main aspects of an entrepreneur.
Explore more about Entrepreneurs

 Benefits of Entrepreneurship
 Traits and Characteristics of an Entrepreneur
 Intrapreneurship
 Types of Entrepreneurs
 Four Key Elements of Entrepreneurship

Who is a Manager?
A manager, on the other hand, is not an owner of an enterprise.
Instead, he is the one that is responsible for the management and
administration of a group of people or a department of the
organization. His day to day job is to manage his employees and
ensure the organization runs smoothly.

A manager must possess some of the same qualities as an

entrepreneur, like leadership, accountability, decisiveness etc. He
must also be a good manager of people. So qualities such as warmth
and empathy are also very important in a manager.

Now that we have a brief idea about their qualities and roles, let us
take a look at the difference between them
Difference between Entrepreneur and Manager
 The key difference between an entrepreneur and a
manager is their standing in the company. An entrepreneur
is a visionary that converts an idea into a business. He is the
owner of the business, so he bears all the financial and other
risks. A manager, on the other hand, is an employee, he
works for a salary. So he does not have to bear any risks.
 The focus of an entrepreneur lies in starting the business
and later expanding the business. A manager will focus on
the daily smooth functioning of the business.
 For an entrepreneur the key motivation is achievements.
But for the managers, the motivation comes from the power
that comes with their position.
 The reward for all the efforts of an entrepreneur is the profit
he earns from the enterprise. The manager is an employee,
so his remuneration is the salary he draws from the
company.
  The entrepreneur can be informal and casual in his role.
However, a manager’s approach to every problem is very
formal.
 The entrepreneur by nature is a risk taker. His has to take
calculated risks to drive the company further. A manager, on
the other hand, is risk-averse. His job is to maintain the
status quo of the company. So he cannot afford risks.

23. Some of the problems faced by women entrepreneurs

are as follows: 

1. Problem of Finance:
Finance is regarded as “life-blood” for any enterprise, be it big or
small. However, women entrepreneurs suffer from shortage of
finance on two counts.

Firstly, women do not generally have property on their names to use

them as collateral for obtaining funds from external sources. Thus,
their access to the external sources of funds is limited.

Secondly, the banks also consider women less credit-worthy and

discourage women borrowers on the belief that they can at any time
leave their business. Given such situation, women entrepreneurs are
bound to rely on their own savings, if any and loans from friends
and relatives who are expectedly meager and negligible. Thus,
women enterprises fail due to the shortage of finance.

2. Scarcity of Raw Material:

Most of the women enterprises are plagued by the scarcity of raw
material and necessary inputs. Added to this are the high prices of
raw material, on the one hand, and getting raw material at the
minimum of discount, on the other. The failure of many women co-
operatives in 1971 engaged in basket-making is an example how the
scarcity of raw material sounds the death-knell of enterprises run by
women (Gupta and Srinivasan 2009).

3. Stiff Competition:
Women entrepreneurs do not have organizational set-up to pump in
a lot of money for canvassing and advertisement. Thus, they have to
face a stiff competition for marketing their products with both
organized sector and their male counterparts. Such a competition
ultimately results in the liquidation of women enterprises.

4. Limited Mobility:
Unlike men, women mobility in India is highly limited due to
various reasons. A single woman asking for room is still looked
upon suspicion. Cumbersome exercise involved in starting an
enterprise coupled with the officials humiliating attitude towards
women compels them to give up idea of starting an enterprise.

5. Family Ties:
In India, it is mainly a women’s duty to look after the children and
other members of the family. Man plays a secondary role only. In
case of married women, she has to strike a fine balance between her
business and family. Her total involvement in family leaves little or
no energy and time to devote for business.

Support and approval of husbands seem necessary condition for

women’s entry into business. Accordingly, the educational level and
family background of husbands positively influence women’s entry
into business activities.
6. Lack of Education:
In India, around three-fifths (60%) of women are still illiterate.
Illiteracy is the root cause of socio-economic problems. Due to the
lack of education and that too qualitative education, women are not
aware of business, technology and market knowledge. Also, lack of
education causes low achievement motivation among women. Thus,
lack of education creates one type or other problems for women in
the setting up and running of business enterprises.

7. Male-Dominated Society:
Male chauvinism is still the order of the day in India. The
Constitution of India speaks of equality between sexes. But, in
practice, women are looked upon as abla, i.e. weak in all respects.
Women suffer from male reservations about a women’s role, ability
and capacity and are treated accordingly. In nutshell, in the male-
dominated Indian society, women are not treated equal to men.
This, in turn, serves as a barrier to women entry into business.

8. Low Risk-Bearing Ability:

Women in India lead a protected life. They are less educated and
economically not self-dependent. All these reduce their ability to
bear risk involved in running an enterprise. Risk-bearing is an
essential requisite of a successful entrepreneur.

In addition to above problems, inadequate infrastructural facilities,

shortage of power, high cost of production, social attitude, low need
for achievement and socioeconomic constraints also hold the
women back from entering into business.
25. Role of Entrepreneurs

1. Leader 
It should be no surprise that entrepreneurs are often seen as leaders, but the
actual role of leadership takes experience to master. As the leader of your
organization, you’ll be in charge of establishing the internal tone, setting a
good example for your team, resolving conflicts and keeping morale up in
times of distress or hardship. That's not always easy.

2. Figurehead
Acting as a figurehead for the company is a lot like being a leader, but it’s
extrinsically focused. You’ll be a figurehead for the company when you
network with other professionals, attend speaking events and develop your
personal brand online. People will come to associate your company with your
own personality and behaviors, so be true to yourself and make a good
impression.

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3. Visionary
The role most people correlate with entrepreneurship is that of “visionary.”
Entrepreneurs are idea people, always searching for opportunities for
innovation and finding new ways to tackle old challenges. That role doesn’t
go away once your business has launched. You’ll need to keep looking for
new ways to improve, and new directions for your company to grow.

4. Decider 
You won’t have the time or the ability to experience everything happening in
the company firsthand. As an entrepreneur, you'll find your team members
coming to you with information and dilemmas -- such as the fact that your
next shipment is going to miss the deadline. It’s your job to make the final
decision on these matters, which is often harder than it appears. There’s a lot
riding on your shoulders, and you’ll be taking accountability for how your
decisions ultimately turn out.

5. Financial analyst
The financial health of your company is the biggest factor for its ultimate
success or failure. While you might have a CFO or similar position filled in
your organization (it should be one of your top priorities), you'll still be
responsible for overseeing your financial records and taking action when
necessary to prevent disaster -- such as securing a new line of credit.

6. Marketer.
As the primary visionary for your company, you have the job of establishing
an image for your brand. You can recruit an outside marketing
professional to help you come up with the nuts and bolts, but ultimately,
it's your job to finalize your company’s marketing plans.

7. Receptionist
When your organization gets bigger, you might get a receptionist or secretary
to help you out, but, meantime, you’ll be the receptionist for the vast majority
of your company’s incoming calls, emails, visitors and inquiries. Checking
email, calling people back and rescheduling appointments is going to eat up a
lot of your day -- like it or not.

8. Customer service rep 

As an early-stage entrepreneur, you'll have the responsibility to make sure
your customers are happy. You’ll only have a few clients in the beginning,
and they’re going to be vitally important for the health of your business, so
you’ll have to take it upon yourself to ensure their satisfaction (and make
adjustments to your products and services if necessary).

9. HR manager
As an entrepreneur, you’ll be in charge of building the team that carries your
ideas and objectives through to success. This means you’ll have full control
over who comes into your organization, and you can prioritize whatever
blend of skills, talents, education, experience and personality you need to
make things work.
10. Grunt
Entrepreneurship isn’t all about charisma and glory. Unfortunately, you’ll
also be serving the role of a grunt in the early stages of your business. Data
entry, paperwork, coffee runs and other unglamorous jobs will take up lots of
your time -- but every second of that time will still be worth it.

Some of these roles don’t typically go away over time. You may hire more
people who can take on these responsibilities, but you’ll still be in charge of
making the final decisions and establishing the direction that your other
organization leaders must follow.

26. What are the phases of entrepreneurship

The five phases of entrepreneurship are as follows:

 Idea,
 Decision,
 Proof,
 Growth, in addition to
 Long-term plan.

What each phase looks like is contingent on the industry, kind of company, style of
entrepreneurship (ie. Risk-averse vs. Risk taker), as well as your decisions along the
way. Not each and every entrepreneur successfully passes through the five phases of
entrepreneurship. It’s a tough journey which will test your resilience many times over.
However this is an easy trade-off for entrepreneurs who like to take risks (whether big or
small) as it allows them to take control over their own career. You just have to survive in
order to make it.

Idea
On the business side of development, it is necessary for you to map out how your
organisation will take shape. You should create a business plan which outlines your key
milestones as well as objectives, a comprehensive analysis of who your audience is,
how your product/service could develop over time, risks or setbacks that you may
encounter in addition to potential solutions, and your financial plan. Your financial plan
should encompass forecasting at least three years into the future, your strategy for
finding investors (if that’s the route you want to take) as well as how your financing
options might alter at each milestone in your business’ growth.
Decision
This phase of entrepreneurship is all about making strategic decisions as well as
executing the launch. You’ll either be quitting your day job to work towards your dream,
or you could launch your business as a side business if you are a bit reluctant to give up
a steady paycheck. If you make the choice of the latter option, you won’t be able to
dedicate as much time to your growth. Either way, look at the bigger picture of your long-
term strategy.

Proof
Make sure that you are flexible as you are working with your first group of customers
because they will give you important feedback in order to assist you with improving or
focusing on the right things. Word of mouth is one of your most valuable assets in terms
of getting new customers so you need to treat them like royalty.

Growth
At this stage, cash flow is fairly stable, however you are still likely rearranging your
budget while waiting for your expansion to spike upwards. Hire the people who have
complementary skill sets to your own in order to make sure you that you are investing in
the correct people in the beginning growth stages. You will still wear a lot of hats as the
owner however your growing team will gradually take those off your head. The concept
is to focus your investment in crucial hiring to off-load tasks where you aren’t as strong,
or those which are extremely time-consuming.

Long-term plan
Careful planning along the way in addition to scalability of processes are your best
friend. If you plan your expansion, it is possible to ensure that you have the infrastructure
as well as internal processes in place to support more business. While viral growth may
seem like it would be amazing, not being able to manage to fill orders because of
manufacturing, distribution, or a lack of staff to process orders can be very stressful.