Entrepreneurship Development in Business

Entrepreneurship Development in Business

1. DS 467- Elective IV Entrepreneurship Development Abdul Quadir (Architect & Urban Planner) Assistant Professor FOAPD , Integral University Lucknow

2. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow Unit – 1 References Unit 1- Syllabus Coverage: Module-A Concept and nature, scope and philosophy of entrepreneurship, Distinction between self-employment and entrepreneurship, Importance of entrepreneurship and self-employment in our country, Entrepreneurial traits and Different forms of business organizations (sole proprietorship, partnership, co-operative societies, public and private undertakings) Bachelor of Architecture Syllabus, Faculty of Architecture Planning and Design, Integral University Lucknow Entrepreneur

3. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow Concept and Nature of Entrepreneurship The term entrepreneur is a French word,  and is derived from the French word “ enterprendre ”.  It means  “to undertake” . It is commonly used to describe an individual who organizes and operates a business or businesses, taking on financial risk to do so. The term "entrepreneur" was actually coined in the early 1800s by French economic philosopher Jean-Baptiste Say . He was a liberal French economist and businessman who argued in favor of competition, free trade and lifting restraints on business. The entrepreneur is usually a sole proprietor, a partner, or the one who owns the majority of shares in an incorporated venture. If one desires to be an entrepreneur, the given equation is what describes, what an entrepreneur actually is Entrepreneur + Capital = Products + Customers = Business. Definitions Entrepreneu r = ऑन्‌ट्रप्रˈन(र्‌)

4. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Concept and Nature of Entrepreneurship Let us now consider some  definitions  to understand who an entrepreneur is: According to Oxford Dictionary, an entrepreneur is “ A person who sets up a business or businesses, taking on financial risks in the hope of profit”. According to the International Encyclopaedia ,  an entrepreneur is  “An individual who bears the risk of operating a business in the face of uncertainty about the future conditions”. Schumpeter’s Definition  – The entrepreneur, in an advanced economy 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”. Adam Smith’s definition  – “The entrepreneur is an individual, who forms an organization for commercial purpose. She/he is a proprietary capitalist, a supplier of capital, and at the same time a manager who intervenes between the labour and the consumer.  “Entrepreneur is an employer, master, merchant but explicitly considered as a capitalist”. Peter F. Drucker’s Views on Entrepreneurs –  “An entrepreneur is the one who always searches for change, responds to it and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by which they exploit changes as an opportunity for a different business or different service”.

5. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Concept and Nature of Entrepreneurship Entrepreneu r + Ship = Entrepreneurship Entrepreneurship is the process of originating, organizing, and managing a business enterprise to earn profits or losses. Such activities involve identifying gaps in the markets, devising new products and services, and lastly bringing the respective products and services to market through strategic planning and implementation. Entrepreneurs are the fuel of economies as they convert ideas into viable businesses that can meet consumer needs, solve problems, and advance technology. Key Components of Entrepreneurship Innovation Basically, entrepreneurship is innovation: it involves making something new or coming up with improvements on existing products or services. It is through this aspect that entrepreneurs use creativity to come up with solutions in unique ways required to meet market demands. Risk-Taking Entrepreneurship always relates to risks because an entrepreneur can invest not only time and resources but also money in various ventures with no guarantee of success. Such entrepreneurs weigh the risks and learn how to mitigate them. Challenges are, therefore, turned into opportunities. Value Creation The point of entrepreneurship is to maximize value for the customer, for society, and for stakeholders by providing a product or service that will make a difference in people’s lives. Value creation simply translates to creating satisfying value for customers, that will eventually lead to business growth and sustainability.

6. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Concept and Nature of Entrepreneurship 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. In economics, entrepreneurship connected with land, labour , natural resources and capital can generate a profit. The entrepreneurial vision is defined by discovery and risk-taking and is an indispensable part of a nation’s capacity to succeed in an ever-changing and more competitive global marketplace. Concept Meaning The entrepreneur is defined as someone who has the ability and desire to establish, administer and succeed in a startup venture along with risk entitled to it, to make profits. The best example of entrepreneurship is the starting of a new business venture. The entrepreneurs are often known as a source of new ideas or innovators, and bring new ideas in the market by replacing old with a new invention. It can be classified into small or home business to multinational companies. In economics, the profits that an entrepreneur makes is with a combination of land, natural resources, labour and capital.

7. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Concept and Nature of Entrepreneurship Nature Initiative taking : Initiative in this sense refers to the tendency to conceive and act upon new ideas. Entrepreneurship is all about taking a risk, being creative, and coming up with new ways to do things. It is the behavior of setting out on your own to find solutions to problems that others haven't been able to solve yet. This can be difficult – after all, no one knows exactly how something will turn out – but it's what makes entrepreneurship so special. When you're an entrepreneur, you believe in yourself and your abilities enough to take a chance on something new. That kind of ingenuity is essential for driving innovation and making progress 2. Ingenuity: This refers to one’s capability of organizing and reorganizing social and economic mechanisms to turn resources and situations to practical account. It is also about the process of developing and implementing plans, policies, or procedures to achieve specific goals. Entrepreneurship is about turning ideas into action. They are the ones who come up with new ways to turn resources into profits, and they do this by working closely with others to make sure that their projects get off the ground and succeed. In fact, it is often said that entrepreneurs are master problem-solvers.

8. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Concept and Nature of Entrepreneurship Nature 3. Beneficence: An entrepreneur creates opportunities for people who might not have had them before. One of the most important benefits of entrepreneurship is that it allows disadvantaged individuals or groups access to new opportunities. Businesses can be a source of opportunity for people who may not have had any other opportunities, maybe even giving them the chance to eventually start their own business and improve their life situation. 4. Risk-taking: This alludes to an entrepreneur’s acceptance of risk or failure in order to achieve an objective. Entrepreneurship is all about taking a risk, and that means there are some times when things will not go as planned. Entrepreneurs must be willing to face the possibility of failure – and learn from it – as they trudge the path to becoming a successful entrepreneur.

9. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Concept and Nature of Entrepreneurship Angel Investors  - They fund and leverage their networks for entrepreneurs at an early stage of creating a startup.    Independent Contractors  -  They are self-employed individuals who work for corporations separately. They are not so different from entrepreneurs.    Limited Partnership  - It exists when one of the partners stays in business for a short period of time, as long as their investment is fulfilled.    Patent  - To protect the rights of an invention, a patent is required.    Networking  - It is the process to expand one’s business by building necessary contacts in the same field. Terminologies

10. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Scope and Philosophy of Entrepreneurship 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.  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. Scope

11. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Scope and Philosophy of Entrepreneurship Philosophies of Entrepreneurship Ability to take a risk-  Starting any new venture involves a considerable amount of failure risk. Therefore, an entrepreneur needs to be courageous and able to evaluate and take risks, which is an essential part of being an entrepreneur. Innovation-  It should be highly innovative to generate new ideas, start a company and earn profits out of it. Change can be the launching of a new product that is new to the market or a process that does the same thing but in a more efficient and economical way. Visionary and Leadership quality-  To be successful, the entrepreneur should have a clear vision of his new venture. However, to turn the idea into reality, a lot of resources and employees are required. Here, leadership quality is paramount because leaders impart and guide their employees towards the right path of success. Open-Minded-  In a business, every circumstance can be an opportunity and used for the benefit of a company. For example, Paytm recognized the gravity of demonetization and acknowledged the need for online transactions would be more, so it utilized the situation and expanded massively during this time. Flexible-  An entrepreneur should be flexible and open to change according to the situation. To be on the top, a businessperson should be equipped to embrace change in a product and service, as and when needed. Know your Product- A company owner should know the product offerings and also be aware of the latest trend in the market. It is essential to know if the available product or service meets the demands of the current market, or whether it is time to tweak it a little. Being able to be accountable and then alter as needed is a vital part of entrepreneurship.

12. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Distinction between Self-employment and Entrepreneurship Aspect Self-employment Entrepreneurship Definition The individual works independently, providing services or products directly to clients or customers. Involves starting and managing a business venture, often aimed at solving a problem or filling a market gap. Purpose To create a stable source of personal income and financial independence. To build a business that can grow, scale, and potentially have a significant market or societal impact. Key Drivers Skillset, expertise, and personal effort. Innovation, vision, and the ability to scale. Risk Level Relatively low; risks are often tied to income fluctuations or market demand for personal services. High; includes financial, market, and operational risks, as well as uncertainty in achieving scalability. Income Source Earnings come directly from the individual’s work or services. Revenue is generated through systems, teams, and products/services created by the business. Scalability Limited by the individual’s time, energy, and personal capacity. High potential; growth is achieved by building teams, automating processes, and capturing market share. Innovation Not necessarily innovative; often relies on existing skills or services. Typically involves innovation, whether in products, services, processes, or business models. Vision Focused on personal goals, such as financial stability, freedom, or independence. Broader vision to create long-term impact, address societal needs, or disrupt existing markets. Team Involvement Usually operates solo or with a small team; the individual performs most of the work. Requires larger teams; focuses on delegation, leadership, and management to achieve goals.

13. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Distinction between Self-employment and Entrepreneurship Aspect Self-employment Entrepreneurship Business Ownership The person is the business; the success and operation heavily depend on their presence. The business operates as a separate entity that can function independently of the owner’s involvement. Revenue Potential Often stable but capped by the individual’s capacity and the demand for their services. High potential for exponential revenue growth through market expansion and scalability. Funding Typically self-funded, requiring minimal capital for operations. May require external funding, such as venture capital, loans, or partnerships, to fuel growth. Examples Freelancers (writers, designers, consultants), artisans, small shop owners, or independent contractors. Tech startup founders, app developers, e-commerce businesses, or large-scale manufacturers. Success Measurement Measured by income stability, client retention, and personal satisfaction. Measured by business growth, market share, profitability, and long-term sustainability. Market Impact Limited; primarily caters to a niche or local market. Can have significant market impact, often creating new industries or reshaping existing ones. Work Dependency Entirely dependent on the individual’s time and efforts. Delegation and systemization allow the business to function without direct owner involvement. Long-term Perspective Focused on day-to-day operations and maintaining stability. Strategic and forward-thinking; focused on growth, expansion, and market leadership. Mindset Operates with a mindset of self-reliance and control over personal work-life balance. Operates with a mindset of risk-taking, innovation, and creating value at scale.

14. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Importance of Entrepreneurship and Self-Employment in India Aspect Entrepreneurship Self-employment Economic Growth Drives GDP growth by creating new industries, products, and services. Contributes to the local economy by offering goods and services in smaller markets. Employment Generation Creates large-scale employment opportunities by establishing businesses and industries. Provides direct employment to individuals and reduces reliance on formal job markets. Poverty Alleviation Promotes upward mobility and improves the standard of living for employees and communities. Helps individuals earn a livelihood, reducing poverty in underserved regions. Innovation Develops new technologies, processes, and business models to address market gaps. Encourages adoption of new tools and skills to improve personal services or products. Local Economic Boost Brings investment, infrastructure, and services to underserved areas. Strengthens grassroots economies by catering to local demands and needs. Empowerment Encourages women, youth, and marginalized groups to participate in economic activities. Provides independence and self-reliance to those facing challenges in traditional jobs. Reducing Dependence Reduces reliance on imports by fostering indigenous industries and promoting exports. Promotes individual economic self-sufficiency, reducing dependency on government jobs.

15. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Importance of Entrepreneurship and Self-Employment in India Aspect Entrepreneurship Self-employment Sustainability Focuses on green businesses and innovative solutions to global environmental issues. Often has a lower carbon footprint and supports environmentally friendly practices. Skill Development Develops leadership, business acumen, and technical skills for entrepreneurs and employees. Encourages individuals to continuously upgrade their skills to stay competitive. Culture of Innovation Inspires risk-taking, creativity, and problem-solving in society. Encourages self-reliance and adaptability, fostering personal growth. Government Revenue Generates taxes from large-scale businesses, contributing to national welfare programs. Adds to tax revenue through smaller-scale contributions, like self-employed taxes. Social Inclusion Builds businesses that address societal issues, ensuring inclusive growth. Offers dignity and financial independence to those unable to access traditional jobs. Regional Development Promotes development in rural and semi-urban areas through large-scale ventures. Ensures economic activity even in small towns and villages. Market Stability Introduces diverse business models, ensuring a dynamic and resilient economy. Stabilizes local markets by consistently catering to community needs.

16. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Entrepreneurial Traits 1. Self-motivated Self-motivated describes someone who can motivate themselves rather than relying on another person. Self-motivated individuals use discipline and passion to complete essential tasks on time, limiting procrastination and producing results. Entrepreneurs must have a level of self-motivation to overcome challenges and keep up with their business practices. 2. Open-minded Someone open-minded is willing to accept or learn about new ideas and opportunities. That’s why open-mindedness is such an essential trait for an entrepreneur. If they remain open to new business opportunities, they could find success in a completely different way. 4. Curious Similar to open-mindedness, entrepreneurs should also have high levels of curiosity. A curious mind can produce unique and innovative ideas that provide solutions to save a start-up company. 3. Proactive When an entrepreneur is proactive, they cannot only anticipate change but also take preemptive measures that help them conquer those changes. For example, a self-employed HR consultant creates their own online course and eBook to predict a rise in competition across the industry.

17. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Entrepreneurial Traits 5. Health-conscious Entrepreneurs tend to lead healthy, balanced lifestyles so they can have the energy to operate their business ventures. For example, an entrepreneur might make a point to work out every morning, or they might take a day off to recharge after a long work week. 6. Creative Another trait of entrepreneurs is creativity. Regardless of their business’s industry, they have to come up with new ideas and solutions to guide their company forward. For example, an entrepreneur comes up with a unique marketing idea where they record a video series about entrepreneurship to drive traffic to their website. 7. Persuasive Entrepreneurs should have a level of persuasiveness to convince investors to donate funds and to persuade customers to buy their products or services. For example, an entrepreneur prepares a presentation to give to potential investors about their projections for the company’s growth within the next five years. 8. Brave Bravery is another entrepreneurial trait from which you can benefit. Entrepreneurs regularly take risks from the moment they decide to start their business, and they must have the courage to accept criticism. For example, an entrepreneur puts in their two-week notice at their nine-to-five job before operating their start-up full-time.

18. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Entrepreneurial Traits 9. Team-oriented Entrepreneurs might start as sole-proprietors, but with the right business tactics, they could soon have several employees working under them. That is why it is so crucial for entrepreneurs to be team-oriented. 10. Youthful Regardless of age, entrepreneurs should have a young perspective to keep evolving their business and combat working odd hours. For example, an entrepreneur spends the evening after meeting with clients all day to work on a new software application. 11. Humble Entrepreneurs typically have a humble attitude because they understand the work that goes into creating and maintaining a successful business and how success can drop. For example, a successful entrepreneur makes a point to respect others and show gratitude for their business. 12. Punctual Another excellent trait for entrepreneurs is showing up early to meetings and events. For example, an entrepreneur arrives 20 minutes early to a lunch meeting with a prospective client. 13. Humorous Humorous entrepreneurs can laugh at their mistakes and move on from them. For example, when an entrepreneur sends an email addressed to the wrong client, they remedy the situation by sending a second response before getting back to work.

19. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Different Forms of Business Organizations 1. Sole Proprietorship Definition : A business owned and run by a single individual. The owner assumes all responsibility for the operation, including decisions, profits, and liabilities. Characteristics : Ownership and Control : The business is owned and controlled by one person who makes all key decisions. Unlimited Liability : The owner is personally liable for all debts and obligations of the business, meaning their personal assets are at risk. Profit and Loss : The owner receives all the profits and bears all the losses. No Legal Distinction : The business is not legally separate from the owner. The owner and the business are the same entity. Limited Resources : Often limited to the owner's personal resources for funding, making expansion more difficult. Lifespan : The business ceases to exist if the owner dies or decides to shut it down. Advantages : A sole proprietorship offers complete control to the owner, allowing them to make all decisions quickly and independently. It’s simple and inexpensive to establish, with minimal paperwork and legal formalities. Additionally, the owner enjoys all profits, and taxes are straightforward as profits are taxed as personal income. Disadvantages : The biggest drawback is unlimited liability, meaning the owner is personally responsible for any business debts or legal issues. This puts personal assets at risk. Additionally, raising capital can be challenging, and the business often has limited resources and growth potential, depending on the owner’s financial capacity.

20. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Different Forms of Business Organizations 2. Partnership Definition : A business owned by two or more people who share responsibility for managing the business and share its profits and losses. Characteristics : Ownership and Control : Shared between the partners according to the terms of the partnership agreement. Control can be equal or unequal depending on the agreement. Liability : Partners usually have unlimited liability , meaning they are personally responsible for the debts and obligations of the business. In a limited partnership , there can be limited liability for certain partners. Profit Sharing : Profits and losses are shared based on the partnership agreement, typically in proportion to their contribution or as agreed upon. Types of Partnerships : General Partnership : All partners are involved in management and have unlimited liability. Limited Partnership : Includes general partners who manage the business and have unlimited liability, and limited partners who invest but do not participate in day-to-day operations and have limited liability. Limited Liability Partnership (LLP) : A type of partnership where each partner's liability is limited to their investment in the business, and no partner is responsible for the others’ negligence or actions. 2. Partnership Advantages : Partnerships allow for shared responsibilities, with each partner bringing unique skills and expertise to the table. This collective effort can make decision-making more effective, and pooled resources provide better access to capital. The tax structure also allows profits to pass directly to partners, avoiding double taxation. Disadvantages : Partners share liability, so if the business fails or faces legal issues, personal assets could be at risk. Disputes between partners can also arise, affecting the smooth operation of the business. Additionally, profit-sharing may lead to disagreements if one partner feels they contribute more than others.

21. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Different Forms of Business Organizations 3. Cooperative Societies Definition : A business organization owned and operated by a group of individuals for mutual benefit, typically focusing on improving the economic and social well-being of its members. Characteristics : Ownership : The business is owned by its members, who are also its customers or suppliers. Each member usually has one vote regardless of the amount of capital invested. Control : Control is democratic, with members electing a board of directors who oversee the operations of the cooperative. Profit Distribution : Profits are distributed among members in proportion to their participation, not according to capital invested. In some cases, profits may be reinvested to benefit the cooperative. Types : Consumer Cooperatives : Owned by the customers who purchase goods and services from the cooperative. Producer Cooperatives : Owned by producers (e.g., farmers, artisans) who collaborate to sell their goods or services. Worker Cooperatives : Owned and operated by the employees who have a say in the decision-making process. 3. Cooperative Societies Advantages : Cooperatives emphasize democratic control, with each member having a vote in decision-making, ensuring fairness. They focus on mutual benefit rather than profit maximization, and any profits are either reinvested or shared among members. Cooperatives often offer lower prices and better services for members. Disadvantages : Raising capital can be difficult, as cooperatives do not operate for profit. The democratic decision-making process, while fair, can be slow, leading to inefficiencies. Additionally, there may be challenges in expanding the cooperative due to limited funding and focus on member interests rather than growth.

22. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Different Forms of Business Organizations 4. Public Undertakings (Public Sector Enterprises) Definition : Businesses owned and operated by the government to provide goods and services that benefit the public. Characteristics : Ownership : These businesses are owned by the government, either at the central, state, or local level. Control : The government holds control over major decisions and operations, often through appointed boards of directors. Profit and Loss : Public enterprises focus on providing essential services, so profits are often reinvested in the business or used for public welfare. Funding : Public sector enterprises are funded by taxpayers or government allocations. 4. Public Undertakings (Public Sector Enterprises) Advantages : Public enterprises focus on providing essential services to the public, often offering stability and reliability. They benefit from government support and are not subject to the pressures of competition, ensuring continued service provision even in challenging economic conditions. Public enterprises can access government funding, reducing financial risks. Disadvantages : These organizations can be inefficient due to bureaucracy and slow decision-making. Political interference may influence management decisions, detracting from business efficiency. Moreover, the lack of competition often limits innovation, and they may not be as agile in responding to market changes.

23. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Different Forms of Business Organizations 5. Private Undertakings (Private Sector Enterprises) Definition : Businesses owned and operated by private individuals, corporations, or groups for the purpose of generating profit. Characteristics : Ownership : Owned by private individuals or groups, and ownership is often divided among shareholders in the case of corporations. Control : The owners or their appointed executives have full control over decision-making. Profit and Loss : The primary objective is to make a profit for the owners or shareholders. Financing : Private enterprises raise capital through personal savings, loans, or issuing shares to the public (in the case of publicly traded companies). 5. Private Undertakings (Private Sector Enterprises) Advantages : Private enterprises have the flexibility to make decisions quickly and innovate to meet market demands. They are driven by profit motives, which encourages efficiency and competitive pricing. With better access to capital, private businesses can grow rapidly and expand into new markets. Disadvantages : The main challenge is the pressure of competition, which can lead to financial instability or bankruptcy if not managed well. Additionally, the profit-driven focus may sometimes conflict with social or environmental goals. Private businesses may also face greater risks, especially if the management is inexperienced or overextends the company financially.

24. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Different Forms of Business Organizations Aspect Sole Proprietorship Partnership Cooperative Societies Public Undertakings Private Undertakings Ownership Single individual Two or more individuals Members Government Private individuals/groups Control Solely with the owner Shared between partners Democratic (one member, one vote) Government control Private owners or shareholders Liability Unlimited Joint and several Limited to members' investment Limited to enterprise Limited or unlimited (depends on structure) Profit Distribution Entirely to the owner Shared as per agreement Shared among members Often reinvested or used for public welfare Distributed to shareholders/owners Examples Small businesses, freelancers Law firms, consulting firms Credit unions, farmers' cooperatives State-owned enterprises like railways Large corporations, private startups

25. DS 467- Elective IV Entrepreneurship Development Abdul Quadir (Architect & Urban Planner) Assistant Professor FOAPD , Integral University Lucknow

26. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow Unit – 2 References Unit 2- Syllabus Coverage: Module-A Introduction, Sources of information and Market survey and opportunity identification Bachelor of Architecture Syllabus, Faculty of Architecture Planning and Design, Integral University Lucknow Entrepreneurial Support System

27. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Entrepreneurial Support System A support system refers to a set of factors or elements that supplements the building or making of something or someone. This support may be in a tangible (e.g. money, materials, etc ) or intangible (e.g. emotional, psychological, etc ) form. Either way, both are important in their own functioning. The entrepreneurial support system forms as the platform upon which the entrepreneur shall build his/her enterprise. It provides the basis for starting an enterprise to nurturing the entrepreneurial activities till towards growth of the enterprise and also until the achievement of maturity in business operations. Thus, without entrepreneurial support system; we may not have any entrepreneurship at all. Entrepreneurial support system does not confine itself only to the enterprise start-up. It is not only about the initiation and the introduction of an enterprise to the business world. In the true sense of the term, its scope stretches towards the nurturing and growth and development of the enterprise. Introduction

28. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Entrepreneurial Support System Sources of information Sources of information for an Entrepreneurial Support System include: Small Business Development Centers (SBDCs), government entrepreneurship programs, business incubators, industry associations, online platforms, academic research, mentorship networks, professional networking events, financial institutions, and local chambers of commerce SBDCs: Provide counseling, training, and access to capital for entrepreneurs through government-funded centers.  Government Programs: Offer various initiatives like grants, loans, tax breaks, and business incubation programs specifically designed to support new businesses.  Business Incubators: Provide office space, mentorship, and networking opportunities to startups in their early stages. Industry Associations: Offer industry-specific knowledge, networking events, and sometimes funding options for entrepreneurs.  Professional Networking Events: Opportunities to connect with potential investors, partners, and customers.  Financial Institutions: Provide information on loan options, credit lines, and financial planning for startups.    Online Platforms: Access to a wide range of information, including business guides, tutorials, case studies, and forums for entrepreneurs.  Academic Research: Provides in-depth analysis and insights on entrepreneurial trends, strategies, and challenges.  Mentorship Networks: Access to experienced entrepreneurs who can provide guidance and advice Local Chambers of Commerce: Local business connections, advocacy, and sometimes funding opportunities for new ventures. 

29. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Entrepreneurial Support System Financial entrepreneurial support systems: The financial aspect is primarily seen in terms of the money capital that is invested to get the enterprise started in the first place. This is followed by incremental capital that is invested overtime as per the needs and demands for growth of the business. Accordingly, some of the leading financial and development institutions that provide for finance to the entrepreneurs are as follows: NABARD- The National Bank for Agriculture and Rural Development is one of the leading developmental banks for the progress of the Indian rural sector. In addition to its general rural initiatives, NABARD is also involved in direct finance for the benefit of the rural entrepreneurs. This finance generally cater towards food parks and food processing units, warehouses and cold storage infrastructure, assistance for marketing of produce apart from other long-term and short-term funding. Commercial Banks - These banks play a pivotal role in the development of the economy at large. In their absence, India may not have developed to the extent it has now. Some of the commercial banks in India are State bank of India, Punjab National Bank, ICICI Bank, Bank of Baroda, Canara Bank, HDFC bank etc. These banks deal in an array of financial products which are an asset for entrepreneurs. They offer different loan schemes for business. These loans can be attained on the basis of a proper business proposal. MUDRA Loans - These loans are provided under the Pradhan Mantri MUDRA Yojana (PMMY) which was launched on 8th April, 2015 through an organization called Micro Units Development and Refinance Agency (MUDRA). Under the MUDRA loans scheme, the loans available to the entrepreneurs are classified into three types, namely; Shishu with a limit of' 50000/-, Kishore with loans ranging from over ' 50000/- to '500000/- and Tarun with loans ranging from over' 500000/- to' 1000000/ SIDBI - The Small Industries Development Bank of India was set up with the basic mandate for the initiation, growth and development of micro, small and medium enterprises. It is a specialized institution that caters to the needs of the entrepreneurs. Under its gamut of products and services SIDBI provides for equipment finance, loans for machine purchases, working capital finance, trade financing amongst others.

30. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Entrepreneurial Support System Non-financial entrepreneurial support system: Finance is important for entrepreneurs but in reality, entrepreneurs need much more than just finance. It must be realized that finance alone does not guarantee the growth and success of a business. Training and learning- It is commonly believed that a person who does not train and learn is primarily a dead person. This is very true for any entrepreneur and entrepreneurship. Entrepreneurs are people who push the limits every time. They strive for more. They look for more. They are always hungry for more success and growth. The point being, all of these can be achieved only in an environment of training and learning. As such, apart from the Indian Institute of Entrepreneurship; there are numerous institutes for such training at the state levels. Motivation and consultancy- If there is any class of people who are required to be extremely motivated, they are the entrepreneurs. In general, only highly motivated people can become entrepreneurs. Entrepreneurship is not everyone's cup of tea. As such, entrepreneurs require a motivating ecosystem.

31. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Market Survey A market survey is a research method that helps entrepreneurs understand their target audience, their needs, and how to meet them. It can help entrepreneurs make better marketing, product, and growth decisions.  How market surveys help entrepreneurs Understand customers:  Learn who your customers are, what they want, and how much they spend  Identify trends:  Discover business opportunities and identify trends  Understand competitors:  Learn who your competitors are and how your customers perceive them  Understand brand perception:  Learn how your customers perceive your brand and what values they associate with it  Understand product potential:  Learn how likely customers are to choose your products over competitors  Purpose of Market Survey Gain critical customer feedback:  The main purpose of the market survey is to offer marketing and business managers a platform to obtain critical information about their consumers so that existing customers can be retained and new ones can be got onboard. Understand customer inclination towards purchasing products:  Details such as whether the customers will spend a certain amount of money for their products/services, inclination levels among customers about upcoming features or products, what are their thoughts about the competitor products etc. Enhance existing products and services:  A market survey can also be implemented with the purpose of improving existing products, analyze customer satisfaction levels along with getting data about their perception of the market and build a buyer persona using information from existing clientele database. Make well-informed business decisions:  Data gathered using market surveys is instrumental in making major changes in the business which reduces the degree of risks involved in taking important business decisions

32. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Opportunity Identification An entrepreneur may come across a large number of profitable opportunities but he has to select the most possible and hopeful project. Therefore, Project identification and selection are the important phases for an entrepreneur.   Peter Drucker has explained the three types of opportunities in this context, as following: Additive Opportunities:  these are the opportunities which are related to the use of the available resources without making any changes. Therefore, there is very less risk in such opportunities. Complementary Opportunities : These are related to the introduction of the new ideas which directs the change in the available arrangement. There is a greater risk in such opportunities. Breakthrough Opportunities : These are related to the huge change in the existing arrangements which thus involve huge risk.   Need for Opportunity Identification and Selection   Enterprise and entrepreneur are complimentary to each other. Therefore, the success of an entrepreneur depends on his suitability of the enterprise and at the same time the successful enterprise can be started if the entrepreneur has the characteristics and skills to handle that enterprise. Therefore, there is a need for the opportunity identification and selection because if opportunity is not selected on the basis of the skills and there is non- suitability between the entrepreneurs and the enterprise then there will be business failure.

33. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Opportunity Identification Idea Generation:   This is the first and most important stage in project identification. It is an intellectual process that requires vision, initiative, scheme and inquisitiveness. The Project idea can come out from one or more following sources: Trade fairs and trade journals. through experience of others in the particular business, success stories of friends, relatives. Surveys, reports, newspapers, periodicals. detailed analysis of demand and supply Government policies and support for the development of the various sectors. Increasing demand of certain goods and services in the domestic market as well as foreign market. Easy Availability of raw material, skilled labour invention of new technology.   Idea can be generated with the help of the following methods: a.  Brainstorming b.  Focus Groups c.  Problem inventory analysis.

34. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow References Opportunity Identification Brainstorming:  This technique was originally used by Alex Osborn in 1938 in an American company to persuade innovative thinking in a group of six to eight people. Through this method a large number of ideas are generated without any criticism. In this method, people are encouraged to produce as many ideas they can generate without any criticism and evaluation. It works on the principle of no criticism and quantity raises quality. Problem Inventory analysis : This method is more like a focused group method but in this method along with generating ideas, it also considers the problem a product faces. In this method, focus group is provided with the list of the problems in a general product category and then identifying and discussing the problems of the products in that category.     c . Focus Groups : This group consists of 6-12 members belonging to different socio-economic backgrounds to focus on the particular matter. The group has a moderator to have the detailed discussion. Ideas are generated and detailed discussions are carried on to identify the excellent ideas.

35. DS 467- Elective IV Entrepreneurship Development Abdul Quadir (Architect & Urban Planner) Assistant Professor FOAPD , Integral University Lucknow

36. Ar. Abdul Quadir – Assistant Professor Integral University Lucknow Unit – 2 References Unit 2- Syllabus Coverage: Module-A Introduction, Sources of information and Market survey and opportunity identification Bachelor of Architecture Syllabus, Faculty of Architecture Planning and Design, Integral University Lucknow Entrepreneurial Support System