Module I: Basic Concepts

Dr. Neetu Singh

Assistant Professor
ABS
• Basic Concepts Qualities, Characteristics of an entrepreneur,
• Venture idea generation, Ideas and the entrepreneurship,
• Women entrepreneurs, History of entrepreneurship in India;
• Growth in entrepreneurship silk route- spice route- trade and
business in ancient India. Preliminary Screening,
• Drawbacks or Problems of entrepreneurship,
• Reasons of failure,
• Overview of setting up an enterprise with organizational forms –
MSMED Act. Project Based
• Learning -1 Group task: studying various success stories of
entrepreneurs and discussing their characteristics and reasons for
success.
 Moral of the Story:
Entrepreneurship begins with a simple
idea. It’s about identifying a need,
taking a risk, and turning passion into a
business. Like Meera, all great
entrepreneurs start small, learn from
feedback, and grow step by step!
 Entrepreneurship
Entrepreneurship is the act of creating a business or
businesses while bearing all the risks with the hope of
making a profit.

Entrepreneurship is the act of starting a business in the

hope of earning a profit.

Entrepreneurship is the ability and readiness to develop,

organize and run a business enterprise, along with any of its
uncertainties in order to make a profit. The most prominent
example of entrepreneurship is the starting of new
businesses.
 Definitions of Entrepreneurship
“Entrepreneurship entails bearing the risk of
buying at a certain price and selling at
uncertain prices.”- Ricardo Cantillon.

“Entrepreneurship is any kind of innovative

function that could have a bearing on the
welfare of an entrepreneur.”-Joseph A.
Schumpeter (1934).
 Entrepreneur
• An entrepreneur is an individual who creates and/or
invests in one or more businesses, bearing most of the
risks and enjoying most of the rewards.
• An entrepreneur is a person who sets up a business or
businesses, taking on financial risks in the hope of
profit.
• An entrepreneur is an individual who introduces
something new in the economy – a method of
production not yet tested by experience in the branch
of manufacturing, a product with which consumers are
not yet familiar, a new source of raw material or of new
markets and the like.
 Intrapreneur
This is an employed staff e.g. manager who
innovates for the company and takes risks only on
behalf of the employer. He is therefore an intra
company entrepreneur for whom the term
intrapreneur is coined. Intrapraneurs are,
therefore, the main entrepreneurs in large
companies who innovate and take risks on behalf
of their employer. These are creative people
usually working together as teams, who function
as entrepreneurs within corporations
 Types of Entrepreneurs
• Innovative Entrepreneurs – These entrepreneurs have
the ability to think newer, better and more economical
ideas of business organisation and management. They
are the business leaders and contributors to the
economic development of a country.

Inventions like the introduction of a small

car ‘Nano’ by Ratan Tata, organised retailing
by Kishore Biyani, making mobile phones available to
the common man by Anil Ambani are the works of
innovative entrepreneurs.
 Types of Entrepreneurs
Imitating Entrepreneurs – These entrepreneurs are
people who follow the path shown by innovative
entrepreneurs. They imitate innovative entrepreneurs
because the environment in which they operate is such
that it does not permit them to have creative and
innovative ideas on their own.

In our country also, a large number of such

entrepreneurs are found in every field of business
activity. Development of small shopping complexes is
the work of imitating entrepreneurs. All the small car
manufacturers now are the imitating entrepreneurs.
 Types of Entrepreneurs
Fabian Entrepreneurs – Fabian entrepreneurs are those
individuals who do not show initiative in visualising and
implementing new ideas and innovations. On the contrary,
they like to wait for some development, which would
motivate them to initiate unless there is an imminent
threat to their very existence.
Drone Entrepreneurs – Drone entrepreneurs are those
individuals who are satisfied with the existing mode and
speed of business activity and show no inclination in
gaining market leadership. In other words, drone
entrepreneurs are ‘die-hard conservatives’ and even ready
to suffer the loss of business.
 Characteristics of Entrepreneur
• An eye for opportunity
• Independence
• An appetite for hardwork
• Self-confidence
• Discipline
• Ability to accept change
• Risk-bearing
• Creative and Innovators
• Leadership
• Ability to mobilize resources
Importance of entrepreneurship

Growth of Entrepreneurship.

Creation of job opportunities.

Innovation.

Impact on community development.

The consequence of business failure.

Political and economic integration of outsiders.

Enhances the standard of living.

Promotes research and development.

 Importance of entrepreneurship
• Entrepreneurs create jobs: Without entrepreneurs,
jobs wouldn’t exist. Entrepreneurs take on the risk of
employing themselves. Their ambition to grow their
business eventually leads to the creation of new jobs.
As their business continues to grow, even more jobs
are created.
• Entrepreneurs innovate: Some of the greatest
technologies in today’s society have come from
businesses. Technological advances come from a need
to solve problems, create efficiencies, or improve the
world. In periods where there’s more advancement in
technology, there’s usually an entrepreneur to thank
for it.
 Importance of entrepreneurship
• Entrepreneurs create change: Entrepreneurs dream big—many aim to
make the world better with their products, ideas, or businesses. So
naturally, some of their ideas will make a worldwide change. They might
create a new product that solves a burning problem or takes on the
challenge of exploring something never explored before.
• Entrepreneurs give to society: While some have a notion of the rich being
evil and greedy, they often do more for the greater good than the average
person. They make more money and thus pay more taxes, which helps
fund social services. Entrepreneurs are some of the biggest donors to
charities and nonprofits for various causes. Some seek to invest their
money in creating solutions to help poorer communities have access to
things we take for granted, like clean drinking water and good health care.
• Entrepreneurs add to national income: Entrepreneurship generates new
wealth in an economy. New ideas and improved products or services from
entrepreneurs allow for the growth of new markets and new wealth.
 History of entrepreneurship in India
1. Ancient Period (Pre-12th Century)
• Vedic & Mauryan Period: Trade and
commerce flourished during this time. Indian
merchants were involved in textile, spices, and
metal trading.
• Silk Route & Maritime Trade: India was a
crucial link in global trade, exporting goods to
the Middle East, Rome, and China.
 History of entrepreneurship in India
2. Medieval Period (12th – 18th Century)
• Rise of Small-Scale Industries: Handicrafts and
textiles became major industries, particularly in
cities like Surat, Madurai, and Delhi.
• Mughal Empire (1526–1857): The Mughal period
witnessed flourishing trade, with major ports like
Surat and Hooghly facilitating exports.
• Indian Banking System: Indigenous banking
systems like the Sahukars (moneylenders) played
a crucial role in financing businesses.
 History of entrepreneurship in India
3. British Colonial Era (18th – 1947)
• Deindustrialization: The British economic policies led to
the decline of traditional industries like textiles and
handicrafts.
• Emergence of Business Families: Indian entrepreneurs like
Jamsetji Tata (Tata Group), GD Birla, and Walchand
Hirachand started industries in textiles, steel, and cement.
• Swadeshi Movement (1905-1947): Encouraged Indian
entrepreneurship by promoting locally made goods and
boycotting British products.
• Growth of Banking & Insurance: Indigenous banks and
financial institutions were set up to support Indian
businesses.
 History of entrepreneurship in India
4. Post-Independence Era (1947 – 1991)
• Mixed Economy Model: India adopted a socialist-
inspired model where the government controlled key
industries (steel, coal, banking).
• License Raj (1947-1991): Strict regulations and permits
(licenses) limited private sector growth and led to
bureaucracy and corruption.
• Rise of Public Sector Enterprises: Government
established companies like ONGC, BHEL, and Indian Oil.
• Family-Owned Businesses: Traditional business
families like Tata, Birla, and Bajaj continued expanding
in various industries.
 History of entrepreneurship in India
5. Liberalization & Globalization (1991 – 2010)
• Economic Reforms of 1991: India opened its economy,
reducing government control, allowing foreign direct
investment (FDI), and promoting private businesses.
• IT & Software Boom: Companies like Infosys, Wipro, and
TCS emerged as global leaders in technology and
outsourcing.
• Rise of Startups: New-age entrepreneurs like Narayana
Murthy, Shiv Nadar, and Sunil Mittal created large-scale
businesses.
• Venture Capital & Private Equity: Investment in Indian
startups and enterprises grew, leading to rapid
industrialization and innovation.
 History of entrepreneurship in India
6. Startup & Digital Revolution (2010 – Present)
• Startup India & Make in India (2015): Government
launched initiatives to support startups, MSMEs, and
manufacturing.
• E-commerce Boom: Companies like Flipkart, Zomato,
and Paytm became billion-dollar enterprises.
• Rise of Unicorns: India became the third-largest
startup ecosystem, with over 100 unicorn startups.
• Digital Payments & Fintech: Growth of UPI, PhonePe,
Paytm, and fintech startups revolutionized the banking
system.
• Women & Social Entrepreneurs: Increased
participation of women entrepreneurs in sectors like
fashion, healthcare, and education.
 Problems of Entrepreneurship &
Reasons for Failure
1. Lack of Proper Planning
Many entrepreneurs start without a clear business plan.
They don’t research the market, customer needs, or
competition.
2. Financial Challenges
Not having enough capital (money) to run the business.
Poor financial management or overspending.
3. No Market Demand
Launching a product/service that people don’t need or want.
Misunderstanding customer preferences.
4. Weak Marketing Strategy
No proper branding, advertising, or customer engagement.
Ignoring online presence and social media.
 Problems of Entrepreneurship &
Reasons for Failure
5. Poor Management & Leadership
Inexperienced leadership leads to bad decision-making.
Not managing employees well or lack of teamwork.
6. Competition Pressure
Bigger competitors can reduce market share.
Failing to adapt to changing trends.
7. Legal & Regulatory Issues
Ignoring licenses, taxes, or government policies.
Running into legal troubles due to lack of knowledge.
8. Giving Up Too Soon
Many entrepreneurs quit after early failures.
They lose patience when success doesn’t come quickly.
 Idea Generation
• Idea generation is the process of creating,
developing, and communicating new business,
product, or service concepts.
• It is a creative and systematic approach to
identifying opportunities, solving problems,
and bringing innovative solutions to life.
• Idea generation is crucial for
entrepreneurship, business growth, and
problem-solving in various industries.
 Importance of Idea Generation
1. Staying Ahead in the Market
2. Improving Existing Products and Services
3. Creating New Products and Services
4. Enhancing Problem-Solving Abilities
 Process of Idea Generation

Problem Brainstorming &

Idea Screening &
Identification & Creativity
Evaluation
Market Research Techniques

Prototype
Implementation
Development &
& Execution
Testing
Thank You