PROJECT MANAGEMENT & ENTREPRENEURSHIP (KHU702)

Unit 1 - Entrepreneurship

Entrepreneurship

A person who undertakes the risk of starting a new business venture is

called an entrepreneur. An entrepreneur creates a firm to realize their
idea, known as entrepreneurship, which aggregates capital and labor in
order to produce goods or services for profit.

An entrepreneur is a person who starts a new business and usually risks

his own money to start the venture. Examples of well-known
entrepreneurs include Bill Gates, Steve Jobs, Mark Zuckerberg, Pierre
Omidyar, Arianna Huffington and Caterina Fake

Entrepreneurship and innovation help individuals become independent

and channel their creativity into creating something of their own in this
competitive world. Studying entrepreneurship and innovation enhances
one's analytical and logical skills that enable one to solve any problem.

Need

The need for entrepreneurship is detailed down in the following

section:
● Passion, Perseverance & Persistence
Passion is a strong and uncontrollable emotion that is based on
something higher to achieve than what the person is carrying within
himself. Perseverance is a mature emotion that comes through
experiences gathered and analyses while persistence is the sail that will
row the boat of an entrepreneur through the toughest of climates.
● Big Dreamer
Dreaming big further strengthens an entrepreneur with his ability to
dream and see the wide picture. This is the very first step that sets the
path to self-discovery.
● Learning
Learning is never to stop irrespective of age and thus arming oneself
with education does play a vital role in forming leadership qualities
when needed.
● Good Listener
The ability to contribute will only come once we have abundance in
ourselves, and this comes by absorbing the words of others. The ability
to truly listen to the customers and employees is actually what makes a
difference. This very skill leads to a successful venture.
● Financing Partner
Choosing a financing partner who understands the business needs is
very much essential. This is as critical as choosing the business which
the entrepreneur wants to pursue. Also, a business loan from the right
lender will for sure play a pivotal role in realizing the dreams of
becoming a successful entrepreneur.

Scope
The scope of entrepreneurship is far-reaching.
● Entrepreneurship moves even beyond the closed system of an
enterprise.
● Entrepreneurship in its capacity stimulates the economy which
enables societal change not only for fulfilling a need but also to
generate revenue for the entrepreneur, entrepreneurship thus
provides jobs for the society and develops communities.
● Entrepreneurship instigates a lot more than the mere creation of
business.
● Entrepreneurship promotes the new business and provides
opportunities to improve the new business sectors.
In the long back, when washing machines were not invented, women
had to spend their time washing clothes without energy resources or
water resources. This once inspired a new company to sell low energy
washing machines. This would save time which in turn utilized the extra
time to educate themselves.

Role of an Entrepreneur in the Process of Nation-Building

Entrepreneurs play a very important role in the process of
nation-building, especially in a developing country like India.
Entrepreneurs start many entrepreneurial ventures which in turn hire
many people thereby giving them employment, livelihood and
vocational opportunities. These people earn money in the form of
salaries, wages, stipends, etc. Also, entrepreneurs borrow money from
banks, shareholders, investors, etc. who earn interest, dividends,
profits, etc. All this money is indirectly used in the economic
development of the nation. Thus entrepreneurs facilitate the economic
development of the nations. And economic development is a very
important component of nation-building.
Entrepreneurial competencies & traits

Entrepreneurial competencies are the skills necessary for an

entrepreneur to
● venture into an enterprise
● organize and manage an enterprise ably and competently
● realize the goal for which the enterprise is established
These competencies help and entrepreneur to successfully venture into
an enterprise.
These can be broadly classified under the following categories
Behavioral competencies
i. Initiative
ii. Systematic planning
iii. Creativity and innovation
iv. Risk taking and Risk Management
v. Problem solving
vi. Persistence
vii. Quality performance
viii. Information management
ix. Persuasion and influencing abilities
● Enterprise launching competencies
● Enterprise managing competencies.

1. Behavioral competencies are certain basic competencies to be

acquired by the entrepreneur.
2. The behavioral competencies acquired will determine the type of
behavior exhibited by the entrepreneur in performing various tasks
in the discharge of his functions.
3. Some of these competencies are latent in the entrepreneur, which
need to be identified, nurse and nurtured.
4. Others are acquired through training and practice.
5. These are basic competencies that need to be acquired by all the
entrepreneurs irrespective of the size, location, economic and social
dimension.
Behavioral competencies are important for an entrepreneur because of
the following reasons.
● They’re the basic competencies required by an entrepreneur
o To venture into an enterprise.
o To organize an enterprise
o To manage an enterprise
o Run the enterprise competitively
o Realize the goals for which the enterprise is established
● Take the enterprise to the success levels
1.
The entrepreneur puts lot of effort and in making a decision to take an
initiative.
Once he is decided to take an initiative he has to take the initiative
ahead of others.
Speed an important factor in the success of the enterprise because if
the entrepreneur is slow in implementing the initiative, chances are
there that someone else will move forward and implement it.
This calls for
● Alertness
● Agility
● And dynamism on the part of the entrepreneur.
Due to these reasons speed of performance is required on the part of
the entrepreneur.

Creativity Innovation
1. Creativity is the ability to bring 1. Innovation is the process of doing
something new into existence. new things or brings new ideas or
new process or new products or new
services into reality.
2. Innovation is a process that
2. Creativity is pre-requisite for
transforms creative ideas into useful
innovation.
realities.
3. A creative individual may just 3. An innovator may have the right
have a vision but may not have ability to transform the ideas into
the necessary resources or the products and services, but may
drive to convert the idea into suffer from shortage of creative
action. thoughts and ideas.
A good entrepreneur combines the quality of a creative individual
and an innovator
● In many cases, a good entrepreneur adopts new ideas or services so
that he will be the first to implement them.
● The entrepreneur may not have new and creative ideas. He might
only use the creative ideas and innovative products and services to
meet the challenges of a situation. He might take advantage of the
utility of an idea or a product to create wealth.
● He uses the ideas and services only to solve the problems on the
hand to achieve the objective.
● Competency in creativity and innovation are sometimes basic traits
of certain individuals and help in achieving the goals.
Thus we can say that a good entrepreneur combines the quality of a
good

The following are the areas involving risk in creating and managing an
enterprise.
● The design of the product or service and its acceptability.
● The resources availability.
● The availability of market.
● The variance in consumer expectations.
● The speed of change in the types and patterns of the products and
services.
● The demand-supply situation.
● The finance flow in the market.
● The performance of tools and equipment.
● The social and political climate for sustainability of the products.
While venturing into new ideas and services, the entrepreneur treads
into areas of uncertainty. Thus the entrepreneur is exposed to risk.
Hence risk taking and risk management are important aspects of
entrepreneurial competencies. There are several areas and elements
which throw potential challenge to the entrepreneur. Therefore, he has
to take crucial risk-prone decisions in the process of discharging his
responsibilities.
However, unlike gamblers, an entrepreneur takes a calculated and
perceived decision in the light of the facts and circumstances available
at his disposal. So, we can say that, in taking and managing a risk, the
entrepreneur does not behave like a gambler.
The general practices an entrepreneur should adopt to acquire the
skills of risk management.
The following are the general practices an entrepreneur should adopt to
acquire the skills of risk management.
1. Analysis of various policies, programs and situations
2. Identification of roadblocks in the road map of the enterprise
3. Consideration of alternatives
4. Plan of action for alternatives
5. Crisis management
6. Possibility of the new ideas or services being hijacked by other
powerful individuals or systems.
The standard problem solving competencies required for an enterprise
The following are the standard problem solving competencies required
for an enterprise.
a. Acquiring the necessary mindset which will help to understand that
the problems are part of the process and start working on the
problems in the context of the process to which the problems belong
to.
b. Basic understanding of the phenomenon that normally problems are
always caused.
c. Clear understanding of the fact that every problem has a solution
and one must seek for the solution.
d. Decision making capability to choose the relevant, contextual and
pragmatic solution, among the available multiple solutions for a
problem.
e. Explore the alternate strategies till the solutions for the imminent
problems are found.
f. Find or look for resources that would help to solve the problems in
an amiable way.
g. Generating new ideas, products, services, visions so that the
problems of the similar type do not occur in future.
Decision-making skills are crucial for a successful entrepreneur
The following are the decision-making skills that are crucial for a
successful entrepreneur.
a. Absolutely complete knowledge of the entire system of the
enterprise.
b. Broad understanding of the software, hardware and human-ware of
the system.
c. Complete knowledge of the types of resources involved and their
flow and mobility.
d. Different types of speed breakers in the flow of the operations, their
magnitude and direction.
e. Expert leave understanding of the urgency, the time and the impact
of the decisions.
f. Futuristic of the decision.
g. General impact of the decisions taken on the clients and the society
in which the enterprise survives.
Persistence important for an entrepreneur
In general, entrepreneur pursuits are new and need very close
attention. So, it calls for appropriate climate building and acceptability
and required intense perseverance on the part of the entrepreneur.
The entrepreneurship is a complex activity covering various parameters
of the society. So, it is very difficult for any enterprise to be successful in
the first attempt. Therefore, the failures or roadblocks to success and
achievement should not deter the entrepreneur. He needs to have the
quality of perseverance. Behavioral skills to persist even when the
failure is visible are one of the qualities of a successful entrepreneur.
The ability of persistence is indicative of the confidence of the
entrepreneur in his system, tools and techniques.
Thus we can say that persistence is important for an entrepreneur.

The persistence of an entrepreneur is an indicative of the following.

● The faith of the entrepreneur in the system.
● The exactitude of the tools used in the system.
● The confidence in the quality of the product or the service.
● The understanding of the entrepreneur about the market.
● The conviction of the entrepreneur to succeed.

Factors affecting entrepreneurial development

Factors affecting entrepreneurship

Entrepreneurship is a human skill, which can be developed. Due

to entrepreneurship development, living standards of society can tend
to rise, new opportunities of employment can be created and rapid
economic and industrial development becomes possible. There are a
number of factors affecting entrepreneurship or motivating
entrepreneurs as follows.
● Individual
Entrepreneur is an individual having specific knowledge, skills
 and efficiency. Any new enterprise is created by an individual or
group of individuals. The creativity of an individual encourages
him to establish a new enterprise. Creativity consists of
innovation, search and research. Personality, social conditions,
social support, education and training etc. factors lay an
important role for developing such skills and motivate an
individual to become an entrepreneur.
● Industrial development
More suitable the industrial environment in a nation, more rapid
development of entrepreneurship. More favorable industrial
environment is one, where transportation, communication,
electricity, labor, water, raw materials etc. are easily available.
Such industrial environment by and large
affects entrepreneur development.
● Social environment
Social system plays a vital role in social environment. As an
individual is born and developed in a family and society, social
values, ethical standards, family structure, caste and religious
attitudes of social environment
affect entrepreneurship development.
● Economic environment:
The economy in which enough capital fund is available for
establishing an enterprise and market incentives are also
available, encourages entrepreneurship development. Banking,
education, industrial policy, economic policy, Exim policy interest
rate etc. Factors of economic environment affect
entrepreneurship development. Thus economic soundness and
free economy motivate entrepreneur development.
● Technological environment
Technology is an art of converting the natural resources into
 goods and services more beneficial to society. Due to
technological development new product, new production
process new raw material, new researches are encouraged for
modernization.
● Political environment
Government also plays an important role
in entrepreneurship development. Due to Globalization, Indian
economy has adopted free industrial policy, restrictions on
industries have been minimized and MRTP act has been
cancelled, which has motivated many entrepreneurs to establish
and to develop industries in Indian economy.
● Incentives
Incentives are also one of the important factors
affecting entrepreneurship. If motivating loans, policies,
organizations are developed, it leads to rapid entrepreneurship
development.
● Profit making
It is the profit that induces the prospective entrepreneurs to get
into the business and start new activities. Profit, therefore, is a
factor which induces the entrepreneur to engage and utilize the
factors of production and for development.
Entrepreneurial motivation (Mc Clellend’s Achievement motivation
theory)
These characteristics are as follows:

Dominant
Characteristics of This Person
Motivator

● Has a strong need to set and accomplish challenging

goals.

● Takes calculated risks to accomplish their goals.

● Likes to receive regular feedback on their progress

and achievements.

● Often likes to work alone.

Achievement

● Wants to belong to the group.

● Wants to be liked, and will often go along with

whatever the rest of the group wants to do.

● Favors collaboration over competition.

● Doesn't like high risk or uncertainty.

Affiliation

● Wants to control and influence others.

● Likes to win arguments.

● Enjoys competition and winning.

● Enjoys status and recognition.

Power
Harvard psychologist David McClelland developed the Achievement
Motivation Theory in his book entitled The Achieving Society in 1967.
McClelland sought to explain why some societies are more
economically successful than others. For answers, he looked at the
entrepreneurial behaviors of individuals, which he thought were key to
the development of all economies.

According to McClelland, entrepreneurs do things in a new and better

way and make decisions under uncertainty. Entrepreneurs are
characterized by a need for achievement or an achievement
orientation, which is a drive to excel, advance, and grow. By focusing in
on a particular need, he was able to challenge the then prevailing great
man theory of entrepreneurship as well as religious theories of
entrepreneurship. He believed that entrepreneurship is learned and
that such learning can be encouraged fruitfully.

Need for achievement

The need for achievement contrasts with the need for power—that is, a
drive to dominate others in all situations, and with the need for
affiliation that is, a drive for close personal relationships. However,
power and affiliate legitimacy may help with achievement and can thus
be considered valuable means or resources that can help to satisfy the
need for achievement.

McClelland believed that an achievement orientation develops during

middle childhood through family socialization emphasizing high
standards, self-reliance, and less dominant fathers. It manifests in
behaviors such problem-solving, feedback seeking, goals attainment,
and risk-taking.

McClelland argued that the need for achievement is partially culturally

determined with some societies producing fewer individuals with
achievement orientations. Societies lacking in achievement-oriented
individuals are expected to have lower average incomes.

Controversy and evidence

A controversial implication of the theory is that lower-performing
economies can be boosted by adopting social policies that
alter socialization processes in ways that encourage the development of
more individuals with achievement motivations. This can be criticized as
being a kind of social engineering though, because some cultures may
have different value structures. For instance, well-being, simplicity, and
tradition may be more valued in some cultures than innovations leading
to more desire for achievement.

McClelland was careful to note however, that achievements are not to

be confused with outcomes such as wealth or income as these are
merely measures of achievement, not achievements in themselves. The
need for achievement is satisfied intrinsically with a feeling of personal
accomplishment when getting something done in the world. Thus, the
concept is quite broad and can be applied in most circumstances. For
instance, in a culture that values well-being or human development, an
individual may feel achievement by bringing about greater levels of
achievement in other individuals in the society.

Evidence for the theory seems fairly strong,

with meta-analyses confirming a positive relationship between need for
achievement and entrepreneurial entry and performance (see Collins et
al., 2004). There is also meta-analytic evidence that the need for
achievement is stronger in entrepreneurs than in managers (Steward
and Roth, 2007).

Conceptual model of entrepreneurship

John Kao has developed a conceptual model of entrepreneurship in his

article: Entrepreneurship, creativity and organization in 1989. This
model has four main aspects:

1. Entrepreneurial Personality: The overall success of a new venture

largely depends upon the skill, qualities, traits and determination of the
entrepreneur.
2. Entrepreneurial Task: It is a role played by entrepreneur in an
enterprise. The major task of the entrepreneur is to recognize and
exploit opportunities.
3. Entrepreneurial Environment: It involves the availability of resources,
infrastructure, competitive pressures, social values, rules and
regulations, stage of technology etc.

4. Organisational Context: It is the immediate setting in which creative

and entrepreneurial work takes place. It involves the structure, rules,
policies, culture, human resource system, communication system.

According to Kao, the most successful entrepreneur is one who adapts

himself to the changing needs of the environment and makes it
hospitable for the growth of his business enterprise. This ECO
(Entrepreneurship, creativity ad organization) analysis frame work
developed and conceptualized by John J. Kao contributes a great deal to
the emergence as well as sustenance of entrepreneurship and
entrepreneurial talent in the prevailing business environment.

Entrepreneur vs. intrapreneur

Definition of Entrepreneur

An entrepreneur is an individual who conceives the idea of starting a new

venture; take all types of risks, not only to put the product or service
into reality but also to make it an extremely demanding one. He is
someone who:

● Initiates and innovates a new concept,

● Recognizes and utilizes opportunity,
● Arranges and coordinates resources such as man, material, machine
and capital,
● Take suitable actions,
● Faces risks and uncertainties,
● Establishes a startup company,
 ● Adds value to the product or service,
● Takes decisions to make the product or service a profitable one,
● Is responsible for the profits or losses of the company.

Entrepreneurs are always the market leader regardless of the number of

competitors because they bring a relatively new concept in the market and
introduce change.

Definition of Intrapreneur

An intrapreneur is nothing but an entrepreneur within the boundaries of the

organization. An intrapreneur is an employee of a large organization, who
has the authority of initiating creativity and innovation in the company’s
products, services and projects, redesigning the processes, workflows and
system with the objective of transforming them into a successful venture of
the enterprise.

The intrapreneurs believe in change and do not fear failure, they discover
new ideas, looks for such opportunities that can benefit the whole
organization takes risks, promotes innovation to improve the performance
and profitability, resources are provided by the organization. The job of an
intrapreneur is extremely challenging; hence they are appreciated and
rewarded by the organization accordingly.

From last few years, it has become a trend that large corporations appoint
intrapreneur within the organization, to bring operational excellence and
gain competitive advantage.

Key Differences between Entrepreneur and Intrapreneur

The important distinguishing points between entrepreneur and intrapreneur,
are given in the following points:

1. An entrepreneur is defined as a person who establishes a new

business with an innovative idea or concept. An employee of the
organization who is authorized to undertake innovations in product,
service, process, system, etc. is known as Intrapreneur.
2. An entrepreneur is intuitive in nature, whereas an intrapreneur is
restorative in nature.
 3. An entrepreneur uses his own resources, i.e. man, machine, money,
etc. while in the case of an intrapreneur the resources are readily
available, as they are provided to him by the company.
4. An entrepreneur raises capital himself. Conversely, an intrapreneur
does not need to raise funds himself; rather it is provided by the
company.
5. An entrepreneur works in a newly established company. On the other
hand, an intrapreneur is a part of an existing organization.
6. An entrepreneur is his own boss, so he is independent to take
decisions. As opposed to intrapreneur, who works for the
organization, he cannot take independent decisions.
7. This is one of the salient features of an entrepreneur; he is capable of
bearing risks and uncertainties of the business. Unlike intrapreneur, in
which the company bears all the risks.
8. The entrepreneur works hard to enter the market successfully and
create a place subsequently. In contrast to Intrapreneur, who works
for organization-wide change to bring innovation, creativity and
productivity?

Comparison Chart

BASIS FOR
ENTREPRENEUR INTRAPRENEUR
COMPARISON

Meaning Entrepreneur refers to a Intrapreneur refers to an

person who set up his employee of the organization
own business with a new who is in charge of
idea or concept. undertaking innovations in
product, service, process
etc.

Approach Intuitive Restorative

 BASIS FOR
ENTREPRENEUR INTRAPRENEUR
COMPARISON

Resources Uses own resources. Use resources provided by

the company.

Capital Raised by him. Financed by the company.

Enterprise Newly established An existing one

Dependency Independent Dependent

Risk Borne by the Taken by the company.

entrepreneur himself.

Works for Creating a leading Change and renew the

position in the market. existing organizational
system and culture.

Classification of entrepreneurs

Traditionally, entrepreneurship is categorized into four main

types: small businesses, scalable startups, large companies and social
entrepreneurs. These models cover the fundamentals of starting a
business and focus more on the company itself, rather than the
qualities of the entrepreneur.

Classification According to Type of Business

1. Business Entrepreneur
Business entrepreneur is called solo entrepreneur. He/she is the one
who conceives an idea for a new product/service and establishes a
business enterprise to translate his idea into reality. He/she may
establish small or large enterprise to commercially exploit his/he idea.
He/she takes up production, operations and pursues marketing
activities.

2. Trading Entrepreneur
Trading entrepreneurs are those who restrict themselves to buying and
selling finished goods. They may be engaged in domestic and
international trade. Their core strength lies in distribution and
marketing. They get their income by way of commission and marketing.

3. Industrial Entrepreneur
These are entrepreneurs who manufacture products to cater to the
needs of consuming public after identifying the need left unfulfilled by
the manufacturer hitherto. They may be small, medium and large
entrepreneurs. Industrial entrepreneurs mobilize the resources of
various types and create an entity to manufacture the products or
service. They add utility to products rolled out by them which is termed
as value addition.
4. Corporate Entrepreneur
Corporate entrepreneur is called promoter. He/she takes initiative
necessary to start an entity under corporate format. He/she arranges to
fulfill the formalities to start a corporate entity under Company law.
Corporate entrepreneur assembles all the resources and put in place
organization to run the business on a day-to-day basis. In corporate
form of organization, ownership and management are separated.
Corporate entities are registered under the Companies Act or under the
Trust Act. Corporate entrepreneurs install a team of experts to manage
the entity on a day to day basis.

5. Agricultural Entrepreneur
Agricultural entrepreneurs are those entrepreneurs who raise farm
products and market them. They use the various inputs like labor,
fertilizer, insecticide, water technology etc. to raise the products and
market their products either directly or through co-operative entities or
through brokers or through tie up with large retailers. Those who raise
allied products like poultry, meat, fish, honey, skin, agricultural
implements, flower, silk, fruits, prawn etc., are called agricultural
entrepreneur. In short these entrepreneurs pursue their venture in
agriculture and allied sector.

6. Retail Entrepreneurs
Retail entrepreneurs are those who enter into venture of distributing
the end-product to final consumer while wholesale entrepreneurs take
up the venture of distributing the product to retailer. They used to buy
the goods in small quantities from numerous wholesalers and make it
available different products of different brands under one roof to end
consumer.

7. Service Entrepreneurs
Service entrepreneurs enter into the venture of supplying service
products to end consumers. Hoteliers, airlines, banking, insurance and
financial service providers, repair service organization, bus operators,
train service, advisory organization, advertising firms, manpower
supplier etc., come under service entrepreneur’s category.
Entrepreneurial Development Programme
Entrepreneurship Skill Development Programmed (ESDP) Description.
Entrepreneurship promotion and development Programs are
being organized regularly to nurture the talent of youth by
enlightening them on various aspects of industrial/business activity
required for setting up MSEs.

Entrepreneurship Development Programme (EDP) is a programme

which helps in developing entrepreneurial abilities. The skills that are
required to run a business successfully is developed among the
students through this programme. Sometimes, students may have skills
but it requires polishing and incubation. This programme is perfect for
them. This programme consists of a structured training process to
develop an individual as an entrepreneur. It helps the person to acquire
skills and necessary capabilities to play the role of an entrepreneur
effectively.

EDP is an effort of converting a person to an entrepreneur by passing

him through thoroughly structured training. An entrepreneur is
required to respond appropriately to the market and he/she is also
required to understand the business needs. The skills needed are varied
and they need to be taken care in the best possible way. EDP is not just
a training programme but it is a complete process to make the possible
transformation of an individual into an entrepreneur. This programme
also guides the individuals on how to start the business and effective
ways to sustain it successfully.
Objectives of EDP
The objective of this programme is to motivate an individual to choose
the entrepreneurship as a career and to prepare the person to exploit
the market opportunities for own business successfully. These
objectives can be set both in the short-term and long-term basis.
● Short-term objectives: These objectives can be achieved immediately.
In the short-term, the individuals are trained to be an entrepreneur
and made competent enough to scan the existing market situation and
environment. The person, who would be the future entrepreneur,
should first set the goal as an entrepreneur. The information related to
the existing rules and regulations is essential at this stage.
​
● Long-term objectives: The ultimate objective is that the trained
individuals successfully establish their own business and they should
be equipped with all the required skills to run their business smoothly.
The overall objectives of EDP are mainly to help in the rapid growth of
the economy by supplying skilled entrepreneurs. This programme
primarily aims at providing self-employment to the young generation.
Roles of EDP
An Entrepreneurship Development Programme primarily plays four
roles to help an individual to become an entrepreneur. They are:
● Stimulatory Role: It aims at influencing people in large number to be
the entrepreneur. This includes:
1. developing managerial, technical, financial, and marketing skill
2. inculcating personality traits
3. promotes and reforms entrepreneurial behavior and values
4. identifying a potential entrepreneur applying scientific methods
5. motivational training and building a proper attitude
6. strengthening the motive of a person and giving recognition
7. the valuable know-how of the local products and the processes help
in the selection of products, preparation of project reports

● Supportive Role: It helps in the following ways:

1. registration of the business
2. procurement of fund
3. Incubation support
4. Team building and team development support
5. Mentorship and guidance from industry experts
6. Providing tax relief, subsidy, government schemes etc.
7. guidance in product marketing
8. support for management consultancy

● Sustaining Role: It aims at providing an effective safeguard to

businesses to sustain against the cut-throat market competition. This
includes:
1. help in modernization, expansion, and diversification
2. additional financing for further development
3. Global Networking Opportunities
4. creating new marketing processes
5. helping access to improved services and co-working centers

● Socio-economic Role: It aims at upgrading the socio-economic status of

the public and includes:
1. identifying entrepreneurial qualities in practicality
2. creating employment opportunities in micro, small, and medium
industries on an immediate basis
3. arresting concentration of industries by supporting regional
development in a balanced manner
4. focusing on the equal distribution of income and wealth of the nation
5. channelizing the latent resources for building an enterprise

Program Structure

Phase 1: Starting your startup hypothesis:

Idea Validation Workshop
● Introduction
● Stating your startup problem/hypothesis
● Understating Scenarios
● Idea feasibility analysis
● Idea Validation
● Closing pitches
Business Model Canvas Part 1
● Introduction
● Case Study
● Understating the nine blocks
● Visualizing your startup idea
● Developing your model
● Case Study
Phase 2: Testing your startup hypothesis:
Value proposition Design
● Introduction
● Creating a product/offering that sells
● Understating Customers
● Creating better values
● Creative disruption
● Case Study
Persona Development
Customer Empathy Map
● Introduction
● Creating customer personas
Customer Journey
● Introduction
● Understanding pain points
● Understanding gain creators
● Understanding pain relievers
● Empathy Mapping
● Drafting
● Introduction
● A day in the life of customers
● Visualization
 Phase 3: Evaluating your startup environment:
Blue ocean strategy
● Introduction
● Scanning the environment
● Competition analysis
● Four action frame work
● Buyer utility map
● Strategy Canvas
Business Model Canvas Part 2
● Introduction
● Industry Forces
● SWOT analysis
● Business model environment
● Testing the nine blocks
● Drafting
Prototyping
● Introduction
● Understanding MVP
● Product Design
● Service Design
● Market testing
● Development
Phase 4: Legal and government support:
Company Registration
● Introduction
● Types of legal entities
● Making the choice
● Paper Work and Costs
Intellectual Property Rights
● Introduction
● Indian IPR Law
● Types of IPR
 Government Policies
Marketing Metrics
● Introduction
● Startup India Program
● Standup India Program
● MSME's
● Introduction
● Get, Keep, Grow Cycles
● Web Platform Strategies
● Physical Platform Strategies
Filing For Patent
● Introduction
● Forms required
● Costs Involved
Investor Engagement
● How to tell your story
● Metrics that matter
● Art of negotiations

Top 10 Government Schemes that provide Financial Support to

Start-ups in India
1. Start-up India
Launched by Prime Minister Narendra Modi in 2016, the scheme falls
under the purview of the Department of Industrial Policy and
Promotion. Aim to support Indian entrepreneurs in creating 10 lakh
mobile app startups.
The flagship programme under Start-up India is the MUDRA
loan scheme (Pradhan Mantri Mudra Yojana). This programme offers
microfinance loans at low interest to emerging entrepreneurs from low
socioeconomic strata. Funding of Rs. 20,000 crores have been allotted
for this scheme.
Read all that you need to know about Pradhan Mantri Mudra Yojana -
what it is, types of funding available, how to get funding and more.
0. ATAL Innovation Mission
The government scheme, set up by Niti Aayog, was created to promote
an innovative culture and the development of the spirit of
entrepreneurship across India. The scheme aims to create cooperation
between state, central, and local innovation schemes and implement
entrepreneurship spirit from schools to corporates by developing
world-class Atal Incubators (AICs). This would help to address
commercial and social entrepreneurship ventures in India.
0. e-Biz Portal
Founded in 2013, this is the first online platform that allows
government-to-business (G2B) communication. e-Biz’s portal primary
purpose was to create an entrepreneurship friendly atmosphere in the
country. The platform has been developed by Infosys and has launched
29 services across 5 states in India. It is a single communication online
forum for Indian businesspeople and investors for conducting
transactions, clearances, and activities related to both of them.
0. Support for International Patent Protection in Electronics &
Information Technology (SIP-EIT)
The SIP-EIT scheme was launched by the Ministry of Electronics and
Information Technology to provide financial funding for MSMEs and
Technology Startups to encourage innovation, acknowledge
international patent rights and optimize the growth of the sector in the
county. Businesses that want to go global need to apply for intellectual
property rights as innovations are at risk of being stolen or
misappropriated. Hence, the government has executed various
protection measures through the SIP-EIT scheme.
0. Multiplier Grants Scheme (MGS)
MGS was launched under the Department of Electronics and
Information Technology (DeitY) for promoting integrated research and
development (R&D) between industry and educational institutions for
developing products and packages. Under this scheme, the
government provides financial assistance at 2x times the amount
contributed by the industry, provided the industry supports R&D of
products that get marketed at the institutional level.
MGS encourages and hastens the development of indigenous
products/services. Government grants are available up to Rs. 2 crores
per project with project tenure limited to around 2 years. For industrial
collaborations, the cost is limited to Rs. 4 crores with a maximum
tenure of 3 years.
0. Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE)
The government established CGTMSE for providing collateral-free
business loans to MSME and startups. The scheme allows business units
to get collateral-free loans at a low rate of interest up to a maximum of
Rs. 100 lakhs under a tie-up with SIDBI (Small Industries Development
Bank of India) for promoting new businesses and relaunching existing
ones. The loan is provided mainly for manufacturing companies, either
as working capital or term loan.
0. Software Technology Park (STP)
STP scheme has been established as a 100% export-oriented
programme for promoting and exporting computer software and
professional services through communication networks or physical
media. The scheme focuses solely on computer software. 100% Export
Oriented Units (EOU) and Export Processing Zones (EPZ) concepts for
forming Science Parks/Technology Parks are covered under this scheme.
0. Loan For Rooftop Solar Pv Power Projects
The scheme is committed to the development of 40,000 MWp of
Grid-Interactive Rooftop Solar PV Plants over the next five years for
increasing reliance on non-conventional energy sources. Such rooftop
solar PV plants, with capacities between 1 kW - 500 kW are expected to
be installed in various sectors like residential, commercial, and the like
across India. Under the scheme, a subsidy of 15% is provided to
organisations or individual enterprises for such plants.
0. NewGen Innovation and Entrepreneurship Development
Centre (NewGen IEDC)
The NewGen IEDC scheme has been launched by the National Science
and Technology Entrepreneurship Development Board. The scheme
aims to instil a spirit of creativity and entrepreneurship among the
youth in India through various methods like counselling, coaching, and
assistance. There is also provision for supporting and encouraging
entrepreneurship.
0. Dairy Processing and Infrastructure Development Fund (DIDF)
DIDF is a fund constituted under NABARD in 2017, wherein milk unions,
multi-state milk cooperatives, state dairy federations, milk-producing
enterprises, and NDDB subsidiaries project's eligibility criteria can avail
a loan. The loan component consists of 80% with the borrower to pay
the remaining 20% payment. Interest is charged at 6.5 % p.a. and loan
tenure is decided based on the amount of money borrowed. The loan
repayment is guaranteed by the respective state government, and in
case of borrower default, the state government steps in to contribute
the defaulted portion.