MODULE- 1

Meaning
Entrepreneurship is the process of identifying opportunities in
the market place, arranging resources required to exploit the
opportunities for long term gains.
Entrepreneurship is the process of planning, organising,
operating and assuming the risk of a business venture.

It is the investing and risking of time, money and effort to

start a business and make it successful.
Dhirubhai Ambani:
• Dhirubhai Ambani full
name Dhirajlal Hirachand
Ambani.
• Founder of Reliance
Industries. petrochemicals,
communications, power,
and textiles.
• He started his career as a clerk at
A. Besse & Co.
• There he learned trading, accounting, and
other business skills.
• Ambani began a business trading in spices in
Bombay.
• He expanded into other commodities
• Ambani turned his attention
to synthetic textiles.
• Petrochemicals and later added
plastics and power generation to the
company’s businesses.
• Ambani handed over the day-to-day
running of the company to his
sons, Mukesh Ambani and Anil
Ambani, in the mid-1980s.
 Every year more and more businesses are booming in addition to the
already existing business. In the last few years, India saw 50,000 startups out
of which 8000 – 9000 are technology-based startups while there are more
than 1300 new tech startups. According to the government, which will
increase further.
CHARACTERISTICS
 1. Economic Activity
Entrepreneurship is a wealth producing task.
Example- Reliance Industries Profit Rises 31% To Rs
13,233 Crore In June Quarter
It involves putting resources to productive use
1. Economic Activity
It is basically concerned with the production and
distribution of good and services.
 2. Creative Activity
Entrepreneurship creative new jobs, new tasks and new
ventures in the society.
3. Purposeful Activity:

We aim to be Earth's most customer centric company.

Our mission is to continually raise the bar of the
customer experience by using the internet and
technology to help consumers find, discover and buy
anything, and empower businesses and content creators
to maximise their success.
4. Risk Bearing Capacity
Risk and enterprise go hand in hand.
Risk of failure.
 5. Ability to Innovate

It involves innovation or introduction of something new

and better
it is a creative response to change
 8. Gap – filling Function
Entrepreneurship bridges the gap between human
wants and the availability of products
 9. Dynamic Function
An entrepreneur deals proactively with changing
markets and environment.
He looks at the changes as the source of market
advantage, not as a problem.
 12. Essential in all economics

Entrepreneurship is required in all types of businesses –

small or big, trading or manufacturing.
13. Essential in Every Activity
Entrepreurship is headed in every walk of life such
as politics, medicine, games, etc.
14. Not A New Concept
Entrepreneurship filling has been with us since
humanity.
15. Entrepreneurship can be learned and taught
Entrepreneurship has educational skills and tools
that can be learned.
Taught as a subject in college and universities.
IMPORTANCE
1. Money Flow in the Market
▪ The flow of money in an economy is as important. The more it
flows, the healthier the economy. Enterprises help in the flow of
money in the market by creating employment and increasing
production and consumption.

2. Infrastructural Development
▪ Start-ups thrive in the ecosystem. When an ecosystem is formed in a
particular city, there is an increase in the infrastructure of the city or
particular area.
▪ For example, startups growing in Bangalore, Hyderabad and Delhi.
These cities were developed strategically to create a better
environment to support start-ups to meet the need for
entrepreneurship.
3. Indirect Employment
▪ Direct employment is created by entrepreneurship within the business. But it is not
the only employment. Entrepreneurship also creates a lot of indirect jobs.
▪ For example, in an area like Powai in Mumbai, infrastructural development
creates a need for hotels, restaurants, transportation, etc.

4. Economic Development by Entrepreneurs

▪ New products and services produced can fuel the economic development of the
companies concerned. This is also true for areas that need to support new business.
▪ For example, the boom of IT industries during the 1990s. The industry grew
rapidly and it helped many other businesses. Businesses have grown in related
sectors, such as call centre operations, network repair firms and hardware
suppliers.
5. Social Change by Entrepreneurs
▪ This importance of entrepreneurship breaks with tradition and reduces
reliance on outdated systems by providing unique products and services.
▪ This will improve the quality of life. Such as the smartphone industry
continues to grow, tech entrepreneurship will have a huge, long-term
impact on the planet.
6. Living standard
▪ The standard of living is, in a way, directly proportional to
employment. Because employment pays people, they spend their
money on the purchase of goods and services.
▪ Therefore, the consumption rate increases in an economy, and so
does the production rate. This eventually raises the basic wage,
and people become able to consume higher quality goods and
services.
PROBLEMS OF
ENTREPRENEURSHIP
 1. Resources Related Problems :-
Lack of capital
Unskilled labour
Unavailability of raw material
Lack of Technical know-how
d) Obsolete machines and technology
e) Inadequate land and building
2. Unfavourable Economic Trends :-
Heavy inflation
Rising prices of various resources
Decreasing demand of products
Unstable financial policies of Govt.
3. Inefficient Management :-
Poor and inexperienced management is the
primary causes of entrepreneurial problem.
Lack leadership ability, sound judgement and
technical knowledge necessary to make the
enterprise work.
4. Poor Financial Control :-
Undercapitalization is a common cause of
business failure because companies run out of
capital before they are able to generate positive
cash flow.
6. High Level Risk, Stress and Ego :-
Entrepreneurship and risks go hand in hand,
they cannot be separated.
Instrument, mortgaged
↓
Stress, Anxiety
5. Uncertainty of Incomes :-
Entrepreneurship carrier some risk of failure.
Profit – Loss
Entrepreneur has to put his savings and other
resources stake.
7. Unclear and Ambiguous Ideas :-
Unable to Predict the outcome of ideas.
Entrepreneur may need to collect information to
convert ideas into a reality.
↓
Information collected may be Ambiguous or
incomplete
8. Problem of Social Costs :-
Fast – growing enterprises have increased
problems of pollution, imbalance, degradation of
human values.
9. Regulatory Barriers and Too Much Formalities:
To become an entrepreneur on has to comply
many legal, business and government formalities.
Various laws, legal constraints.