Entrepreneurship Management and Finance - Module 1 - PPT

This module introduces the essence of entrepreneurship: its meaning, competencies, characteristics, qualities, and skills. It explores how entrepreneurs develop, the phases of entrepreneurship, barriers and factors influencing their journey, and classifications like Danhof’s model. The module also covers ways to foster entrepreneurship in India through government policies, institutions, infrastructure, finance, education, technology, and mentorship.

1. Module 1 Entrepreneur and Entrepreneurship - Dr. Adithya Hegde, Dept. of R&AI, MITE

2. Chapter Roadmap Entrepreneur: Definition, Competencies, Characteristics, Qualities, Skills. Developing Entrepreneurial competencies, Classification of Entrepreneurs, Entrepreneur v/s Professional Managers Entrepreneurship: Concept, Phases, Fostering, Barriers, Factors influencing.

3. Introduction A good entrepreneur is one who is capable of inspiring confidence in people and has the ability to motivate them to work with him/her in fulfilling the economic goals set by him/her. The concept of entrepreneur varies from country to country as well a from period to period and the level of economic development thoughts and perceptions .

4. Entrepreneur The word entrepreneur is derived from the French word “ Entreprendre ” which means to undertake, i.e., the person who undertakes the risk of new enterprise. The word entrepreneur, therefore, first appeared in the French language in the beginning of the 16 th century.

5. Entrepreneur The word was also applied to the leaders of military expedition. In many countries, the entrepreneur is often associated with a person who starts his own new and small business.

6. Entrepreneurs in ancient times John Hawkwood (1320–1394) – An English mercenary leader in Italy who organised , funded, and led his own military company for hire. Sir Francis Drake (1540–1596) – An English sea captain who undertook naval expeditions against the Spanish, effectively running them like private ventures. Bernardo de Gálvez (1746–1786) – A Spanish colonial governor who organised and financed military campaigns in support of the American Revolution.

7. Entrepreneur In the early times, it referred to people who undertook military expeditions or construction projects. Later, economists like Richard Cantillon and Jean-Baptiste used it to describe someone who undertakes the risk of starting and running a business.

8. Definition of Entrepreneurship According to Joseph A Schumpeter - “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 manufacture concerned; a product with which consumers are not yet familiar; a new source of raw material or of new markets and the like”.

9. Briefly An entrepreneur is the one who innovates, raises capital, assembles inputs, selects managers, and sets the organization in motion, using his ability to recognize opportunities and resources

10. Meaning of entrepreneur The most common definition of an entrepreneur A person who organizes, manages and takes the risk of running an enterprise.

11. Meaning of Entrepreneur In economics and commerce, an entrepreneur is an economic leader who possesses the ability to recognize opportunities for the successful introduction of new commodities, new techniques, and new sources of supply; to assemble the necessary plant and equipment, management, and labour force; and to organize them into a running concern.

12. Entrepreneur v/s Entrepreneurship

13. Entrepreneurial Competencies They are more than just skills. They also include attitudes, values, and behavioral tendencies. Competencies are observable in action and can be developed through training and experience. They help an entrepreneur to: Recognise and exploit opportunities. Mobilise resources. Build and maintain a team. Take calculated risks. Adapt to changes in the environment.

14. Examples of core entrepreneurial competencies Initiative – Taking action before being asked or forced by circumstances. Persistence – Following through despite obstacles. Information Seeking – Doing personal research and gathering relevant data before making decisions. Concern for High Quality – Ensuring excellence in products/services. Commitment to Work Contract – Keeping promises and meeting deadlines. Efficiency Orientation – Finding ways to do things faster, better, cheaper.

15. Examples of core entrepreneurial competencies Systematic Planning – Breaking large tasks into sub-tasks with clear timelines. Problem Solving – Identifying critical issues and coming up with effective solutions. Self-Confidence – Belief in one’s ability to meet challenges. Assertiveness – Stating needs clearly and standing by decisions. Persuasion – Convincing others to join, support, or fund ideas. Use of Influence Strategies – Leveraging contacts and networks to achieve goals.

16. Characteristics of an Entrepreneur Visionary Outlook Sees opportunities before others do. Has a clear idea of what they want to achieve and how to get there. Risk-Taking Ability Willing to take calculated risks for potential rewards. Balances courage with careful analysis. Innovative Thinking Introduces new products, services, or processes. Constantly looks for better ways to do things. Decision-Making Skills Takes timely and sound decisions, often under uncertainty. Considers both short-term and long-term effects.

17. Characteristics of an Entrepreneur Leadership and Motivation - Inspires and guides a team towards a shared goal. - Builds trust and maintains morale. Persistence and Determination - Continues efforts despite failures or obstacles. - Adapts and learns from mistakes. Goal-Oriented Approach - Works with clear targets and measurable milestones.

18. Characteristics of an Entrepreneur Self-Confidence - Believes in their abilities and ideas. Can convince others of the feasibility of their vision. Adaptability Adjusts strategies according to changing market or environmental conditions. Ethical Values - Conducts business fairly and responsibly. - Considers the social and environmental impact of actions.

19. Case Study N. R. Narayana Murthy (Infosys) Vision – Saw the potential of IT services from India in the 1980s. Persistence – Worked from a small apartment with limited resources. Risk-taking – Left a stable job to start Infosys with ₹10,000. Leadership – Built a strong, ethical corporate culture. Adaptability – Shifted focus from domestic to global markets when opportunities arose. Today Infosys is a multi-billion dollar IT giant, employing over 300,000 people worldwide.

20. REMEMBER - CHARACTERISTICS V – Vision I – Innovation R – Risk-taking A – Adaptability L – Leadership G – Goal-oriented O – Optimism & Confidence A – Analytical Decision-making L – Learning from failure (Persistence) S – Social Responsibility

21. CHARACTERISTICS v/s QUALITY Aspect Characteristics Qualities Definition Traits or behaviors showing how an entrepreneur acts in various situations. Fundamental attributes or virtues forming the moral, mental, and emotional foundation. Origin Often developed through experience, environment, and training. Can be inherent or cultivated through personal growth and discipline. Example Ritesh Agarwal (OYO) adapting hotel models based on market demands. Ratan Tata’s integrity and commitment to ethical business practices.

22. CHARACTERISTICS v/s QUALITY Aspect Characteristics Qualities Nature Outward expressions visible to others. Inner strengths not always visible but guiding decisions. Purpose Help describe what makes someone entrepreneurial. Shape the ethical and visionary base of the entrepreneur. Impact Influence style of operations, decision-making, and innovation. Influence long-term trust, leadership credibility, and resilience. Example Byju Raveendran’s ability to scale EdTech rapidly. Narayan Murthy’s vision for Infosys’ global presence.

23. CHARACTERISTICS v/s QUALITY Aspect Characteristics Qualities Examples Innovative thinking, adaptability, leadership style, problem-solving. Integrity, vision, self-confidence, persistence. Analogy The driving style of a driver (fast, careful, risk-taking). The driver’s mindset and values (patience, responsibility, discipline). Example Anand Mahindra’s innovative diversification of the Mahindra Group. Verghese Kurien’s persistence in building the White Revolution.

24. Skills of an Entrepreneur 1. Communication Skills Convey ideas clearly to customers, investors, and employees. Includes listening, speaking, and writing effectively. (If you can’t explain your idea simply enough for your grandmother to understand it, you’re not ready to pitch it to an investor.) 2. Leadership Skills Inspire, motivate, and guide a team towards a common goal. Build trust and resolve conflicts. (A leader is not the one who shouts the loudest, but the one whose team still works hard even when they’re not in the room.)

25. Skills of an Entrepreneur 3. Decision-Making Skills Make timely, well-informed choices under uncertainty. Balance risks and benefits. (In business, not deciding is also a decision — and usually a bad one) 4. Time Management Skills Prioritize tasks for maximum productivity. Avoid delays (Entrepreneurs don’t work more hours, they make the hours work for them)

26. Skills of an Entrepreneur 5. Financial Management Skills Manage budgets, control costs, and plan investments. Understand profit, loss, and cash flow. (You can make ₹10 lakh in sales and still go bankrupt, if you don’t know where the money is going) 6. Negotiation Skills Reach win–win agreements with suppliers, clients, and partners. (Negotiation is not winning over the other person. It’s making sure they want to work with you again)

27. Developing Entrepreneurial Competencies 1. Education and Training Classroom learning + entrepreneurship cells sharpen innovation and planning skills. Example: IIT Madras Incubation Cell has produced startups like Ather Energy (electric scooters). Classrooms can plant the seed, but the startup ecosystem waters it.

28. Developing Entrepreneurial Competencies 2. Experience and Practice Running small ventures, internships, or even college fests builds initiative, risk-taking, and persistence. Example: Flipkart founders started with book delivery on bikes before scaling up. Every chai stall and college fest is a mini business lab.

29. Developing Entrepreneurial Competencies 3. Mentorship and Role Models Learning from seniors, entrepreneurs, or industry leaders sharpens networking and problem-solving. Example: Ashneer Grover , through events like Shark Tank India and student workshops, shares blunt insights and life lessons that guide aspiring entrepreneurs. Behind every successful startup, there’s often a mentor whispering hard truths.

30. Developing Entrepreneurial Competencies 4. Self-Assessment and Reflection Honest evaluation of strengths and weaknesses builds adaptability and confidence. Example: Srikanth Bolla , blind entrepreneur who founded Bollant Industries, turned self-awareness into strength by designing a company inclusive for differently-abled people. The mirror is the first mentor. Know yourself before selling to the world.

31. Developing Entrepreneurial Competencies 5. Networking and Collaboration Expanding circles through events, forums, and partnerships builds persuasion and influence strategies. Example: Vijay Shekhar Sharma (Paytm) scaled his idea by partnering with Alibaba and SoftBank through smart networking. One handshake can sometimes be worth more than one investment cheque.

32. Developing Entrepreneurial Competencies 6. Government and Institutional Support Incubators, accelerators, and Startup India programs sharpen resource mobilisation skills. Example: Agnikul Cosmos , a Chennai-based space startup, grew under ISRO and IIT-M incubation support. Today, the government isn’t just regulating but it’s incubating.

33. Developing Entrepreneurial Competencies – in a nutshell Effective Practices for Building Competencies Continuous Learning : Read books, listen to podcasts, and attend conferences. Mentorship : Engage with experienced guides. Networking : Expand relationships in relevant industries. Practical Experience : Apply classroom knowledge through real-life practice. Feedback Loops : Regularly expect and reflect on constructive criticism. Active Participation : Take initiative in community or industry activities.

34. Classification of Entrepreneurs Danhof’s Classification of Entrepreneurs Given by Clarence Danhof (Economist) . How entrepreneurs approach innovation and change . Explains why some drive progress while others resist it. Types are: Innovative, Imitative, Fabian, Drone

35. Classification - Innovative Entrepreneurs Characteristics : Introduce new products & processes. Discover new markets, reorganise business. Creative, proactive, risk-taking. Significance : Found mostly in developed economies. Drive industrial & technological progress. Nandan Nilekani (Infosys & Aadhaar digital identity project).

36. Classification - Imitative Entrepreneurs Characteristics : Copy and adapt successful innovations. Implement proven ideas/techniques. Significance : Common in developing countries. Spread innovation by replication. Ola Cabs adapting Uber’s model to Indian conditions (cash payments, auto-rickshaws).

37. Classification - Fabian Entrepreneurs Characteristics : Very cautious, skeptical, risk-averse. Change only when forced (to avoid loss). Significance : Maintain stability but resist innovation. Traditional family-run businesses adopting e-commerce only after COVID-19 made it necessary.

38. Classification - Drone Entrepreneurs Characteristics : Stubbornly resist change. Refuse to adopt modern practices. Significance : Face decline, often pushed out of market. Small textile units refusing to modernize machinery, losing to global competition.

39. Classification - SUMMARY Type Core Trait Approach to Change Economic Role Innovative Creativity, initiative Proactively introduces Drives economic & technological progress Imitative Replication of ideas Follows successful models Spreads innovation, supports growth Fabian Cautious, conservative Changes only when forced Maintains stability, resists risk Drone Stagnant, traditional Refuses change Faces decline, lags behind in progress

40. Other classifications Classification Based on Type of Business Business Entrepreneurs Founder of new businesses; can be small or large scale, ranging from local shops to global ventures. Trading Entrepreneurs Specialize in buying/selling goods and services, stimulating market demand. Example: E-commerce businesses like Amazon. Industrial Entrepreneurs Focus on manufacturing or producing goods at a large scale. Example: Factory owners or industrialists.

41. Other classifications Classification Based on Type of Business Corporate Entrepreneurs Innovate within established corporate entities (also called intrapreneurs). Example: Employees who create new products or divisions for their organization. Agricultural Entrepreneurs Engage in agriculture and allied activities; introduce technology and innovation in farming. Example: Modern agribusiness operators. Service Entrepreneurs Provide intangible products or services such as consulting, IT, education, healthcare.

42. Other classifications Classification by use of technology Technical Entrepreneurs Possess technical expertise and use new technologies in their ventures; often commercialize inventions. Non-Technical Entrepreneurs Focus on marketing, distribution, and other non-technical aspects of the business.

43. Other classifications Classification by motivation Pure Entrepreneurs Motivated by psychological and economic rewards, including independence and self-fulfillment. Induced Entrepreneurs Enter business due to policy incentives or favorable environments, such as government subsidies. Motivated Entrepreneurs Inspired by profit or opportunities for personal achievement.

44. Entrepreneur v/s Professional Managers Entrepreneur: Owner and innovator who conceives, organizes, and runs the enterprise. Professional Manager: Appointed by owners to manage day-to-day operations efficiently.

45. Entrepreneur v/s Professional Managers Aspect Entrepreneur Professional Manager Ownership Owns the business; bears risks and rewards. No ownership; works for salary/perks. Risk Assumes full business risk (profit or loss). Avoids personal risk; accountable only for performance. Decision-making Independent, often intuitive, innovative. Follows policies, uses established management practices.

46. Entrepreneur v/s Professional Managers Aspect Entrepreneur Professional Manager Objective Long-term wealth creation, growth, innovation. Short-term efficiency, stability, meeting set targets. Motivation Achievement, vision, independence. Career growth, job security, recognition. Reward Profit, business expansion, social recognition. Salary, bonus, promotions. Approach Personal, informal, experimental. Systematic, formal, professional.

47. Concept of Entrepreneurship Entrepreneur: An individual who identifies opportunities, mobilizes resources, takes risks, and creates a venture. Example: Dhirubhai Ambani, Bill Gates, Jeff Bezos etc. Concept of Entrepreneurship: Entrepreneurship is the process of identifying opportunities, taking risks, and organizing resources to create and grow a business venture. Example: Flipkart, Microsoft, Facebook etc.

48. Phases of Entrepreneurship Development 1. Idea Generation Phase This is where it all begins. From spotting a problem or imagining a new possibility. Scan the environment, observe unmet needs, and brainstorm creative solutions. At this stage, ideas may look crazy or impossible, but they hold potential. Every spark of entrepreneurship comes from curiosity or frustration with the way things are.

49. Phases of Entrepreneurship Development 2. Project Formulation Phase Here the dream becomes a plan. Entrepreneurs ask: “Can this really work?” Conduct feasibility studies, market research, technical analysis, and financial planning. Resource mapping begins: Who will fund me? What skills do I need? Who is my customer? Think of it like drawing the blueprint before building a house. No builder starts without a plan.

50. Phases of Entrepreneurship Development 3. Commercial Launch / Start-up Phase This is the moment of truth. The plan jumps from paper to reality. Registering the business, raising money, setting up infrastructure, hiring the first team. Facing challenges like customer acceptance, competition, and operational hiccups. Remember Paytm during demonetization? That was its commercial “take-off moment,” when all its preparation suddenly met real demand. A launch is not the end; it is the first big test.

51. Phases of Entrepreneurship Development 4. Growth and Expansion Phase If the idea works, it’s time to grow fast. Entering new markets, adding new products, adopting better technology. Competitors appear, so innovation and agility are crucial. It’s like a plant that survived as a sapling now spreading branches and roots. Zomato started as a restaurant menu scanning site in Delhi → scaled into food delivery → now global presence in 20+ countries.

52. Phases of Entrepreneurship Development 5. Maturity and Stabilization Phase The venture becomes established and respected. Focus shifts from “survival” to “sustainability.” Systems, processes, and professional managers take over from the founder’s hustle. Expansion may slow, but stability grows. Infosys, once a risky IT start-up, is now a global giant with steady processes and professional leadership. The entrepreneur steps back, but the enterprise continues to thrive.

53. Summary

54. Fostering Entrepreneurship Development - 1 1. Government Support and Policies Government plays a vital role in creating a pro-entrepreneurship ecosystem. Schemes and Missions: Start-up India, Atal Innovation Mission, Digital India, Make in India, Stand-up India. Ease of Doing Business reforms: Online registrations, simplified GST filing, fast-track IPR processes. Tax and financial benefits: Tax holidays for start-ups (3 years), capital gains exemption, SIDBI Funds.

55. Fostering Entrepreneurship Development- Government Support and Policies 1. Start-up India (2016) Launched by PM Narendra Modi. Provides tax holiday for 3 years, self-certification for compliance, faster patent filing. Access to ₹10,000 crore Fund of Funds via SIDBI. 2. Atal Innovation Mission (AIM) Set up under NITI Aayog. Runs Atal Tinkering Labs in schools to promote creativity and problem-solving. Supports Atal Incubation Centres for start-ups. 3. Digital India (2015) Ensured affordable internet and digital infrastructure. Enabled cashless economy (UPI, Aadhaar-enabled payments). Boosted fintech start-ups like PhonePe , Paytm, BharatPe .

56. Fostering Entrepreneurship Development- Government Support and Policies 4. Make in India (2014) Focused on manufacturing sector growth. Attracted FDI in electronics, defense, automobiles. Helped companies like Foxconn, Kia Motors set up plants in India. 5. Stand-up India (2016) Promotes entrepreneurship among women and SC/ST communities . Bank loans between ₹10 lakh and ₹1 crore for greenfield enterprises.

57. Fostering Entrepreneurship Development - 2 2. Infrastructure Development Physical and digital infrastructure determines entrepreneurial success. Industrial Estates, SEZs, Tech Parks, Incubation Centers established to promote small and large ventures. Digital infrastructure: UPI, Aadhaar, and affordable internet revolutionized fintech and e-commerce start-ups. Example: T-Hub, Hyderabad – India’s largest startup incubator supported by Telangana Govt.

58. Fostering Entrepreneurship Development - Infrastructure Development 1. Industrial Estates & SEZs (Special Economic Zones) Provide land, utilities, and tax incentives for industries. Example: Sri City SEZ (Andhra Pradesh) – hub for global players like Colgate-Palmolive, Isuzu, Pepsi. 2. Technology Parks Enable IT and tech-driven start-ups with modern facilities. Example: Electronics City, Bengaluru – home to Infosys, Wipro, Biocon.

59. Fostering Entrepreneurship Development - Infrastructure Development 3. Incubation Centers Offer mentoring, office space, seed funding, and networking. Example: T-Hub, Hyderabad – India’s largest incubator supported by Telangana Govt., partnered with Microsoft, Facebook, Boeing. 4. Digital Infrastructure Affordable internet (Jio effect), Aadhaar verification, and UPI have created a boom in fintech and e-commerce. Example: UPI transactions crossed 10 billion/month (2023) – fueling Paytm, PhonePe , BharatPe .

60. Fostering Entrepreneurship Development - 3 3. Financial Support Lack of finance is the biggest barrier for entrepreneurs. Institutions: SIDBI, NABARD, IFCI and commercial banks provide project loans and venture funding. Microfinance & SHGs empower rural entrepreneurs, especially women. Venture capital & angel networks (e.g., Indian Angel Network, Sequoia Capital India) support scaling. Priority sector lending mandates banks to fund MSMEs.

61. Fostering Entrepreneurship Development - Financial Support 1. Institutional Finance SIDBI (Small Industries Development Bank of India): Provides refinance and direct credit to MSMEs. NABARD: Supports rural enterprises, agri -based businesses. IFCI: Funds large projects, especially in infrastructure. Commercial Banks: Offer loans under Mudra Yojana, Start-up loans. 2. Microfinance & Self-Help Groups (SHGs) Provide small loans without collateral. Empower rural women to start businesses like tailoring, handicrafts, dairy. Example: SEWA (Self-Employed Women’s Association, Gujarat).

62. Fostering Entrepreneurship Development - Financial Support 3. Venture Capital & Angel Investors Indian Angel Network funds early-stage start-ups. Sequoia Capital India, Accel Partners, Tiger Global have invested in Flipkart, Zomato, Ola, etc. Example: Flipkart’s growth powered by Sequoia and Accel funding. 4. Priority Sector Lending RBI mandates banks to lend to MSMEs, agriculture, small enterprises. Ensures credit flow to entrepreneurs who lack collateral.

63. Fostering Entrepreneurship Development - 4 4. Entrepreneurial Education and Training Education bridges the gap between raw talent and business skills. Entrepreneurship Development Programs (EDPs): run by NIESBUD, EDII, MSME institutes. Integration of entrepreneurship as a subject in universities and technical institutes. Skill-building initiatives like Skill India Mission, PM Kaushal Vikas Yojana .

64. Fostering Entrepreneurship Development - Entrepreneurial Education and Training 1. Entrepreneurship Development Programs (EDPs) Conducted by institutions like NIESBUD (Noida) , EDII (Ahmedabad) , and MSME training centres . Focus on opportunity identification, project preparation, business management, and risk handling. Example: EDII’s programmes trained entrepreneurs who later founded successful MSMEs in Gujarat. 2. Integration into Higher Education Universities and engineering colleges now offer courses/minors in Entrepreneurship. Example: IITs and IIMs run E-Cells and annual E-Summits (IIT Bombay’s E-Summit is one of Asia’s largest). Promotes hands-on exposure to start-up culture among students.

65. Fostering Entrepreneurship Development - Entrepreneurial Education and Training 3. National Skill-Building Initiatives Skill India Mission (2015): Target to skill 40 crore people by 2022 in industry-relevant trades. Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Certification-based training to increase employability and self-employment. Focus on trades like manufacturing, IT, hospitality, retail.

66. Fostering Entrepreneurship Development - 5 5. Institutional Support A strong network of institutions exists in India to support entrepreneurs. NIESBUD (Noida): training and research in entrepreneurship. EDII (Ahmedabad): specialised institution for entrepreneurship development. SIDO (now MSME-DI), NSIC, DICs: provide support for small industries. Chambers of Commerce (CII, FICCI, ASSOCHAM) help entrepreneurs with policy advocacy.

67. Fostering Entrepreneurship Development - Institutional Support 1. NIESBUD (Noida) National Institute for Entrepreneurship and Small Business Development. Provides training, research, and consultancy in entrepreneurship. Has trained over 4.5 lakh entrepreneurs in India and abroad. 2. EDII (Ahmedabad) Entrepreneurship Development Institute of India. Conducts specialised Entrepreneurship Development Programmes (EDPs) and research. Runs incubation and rural entrepreneurship projects in villages.

68. Fostering Entrepreneurship Development - Institutional Support 3. MSME-DI (Earlier SIDO), NSIC & DICs MSME-DI (Development Institutes): Provide consultancy, skill development, and cluster development support. NSIC (National Small Industries Corporation): Helps in marketing, raw material supply, and credit facilitation for small industries. District Industries Centers (DICs): One-stop shop at the district level for small entrepreneurs to get approvals, subsidies, and guidance. 4. Chambers of Commerce (CII, FICCI, ASSOCHAM) Act as bridges between entrepreneurs and the government. Organize trade fairs, networking events, policy discussions. Example: CII Start-up Council works directly with start-ups on policy advocacy and scaling.

69. Fostering Entrepreneurship Development - 6 6. Cultural and Social Environment Entrepreneurship thrives in cultures that celebrate risk-taking and innovation. India traditionally valued job security (govt jobs), but cultural shift is happening. Media shows like Shark Tank India made startups mainstream. Role models like Narayana Murthy, Ratan Tata, Peyush Bansal, Aman Gupta etc. inspire youth.

70. Fostering Entrepreneurship Development - 7 7. Technology and Innovation Support Innovation is the backbone of entrepreneurship. CSIR, DRDO, ISRO, ICAR labs actively transfer technology to industries and start-ups. Government initiatives like Atal Tinkering Labs, Biotechnology Ignition Grant (BIG) . Startup India Seed Fund Scheme supports tech-based innovations.

71. Fostering Entrepreneurship Development - Technology and Innovation Support 1. Role of R&D Institutions CSIR (Council of Scientific and Industrial Research): Transfers industrial technologies in chemicals, pharma, and materials. DRDO (Defence Research and Development Organisation ): Collaborates with start-ups on defence tech and drones. ISRO (Indian Space Research Organisation ): Shares satellite data and supports space-tech start-ups like Skyroot Aerospace and Pixxel . ICAR (Indian Council of Agricultural Research): Transfers agri -tech innovations to farmers and agri -start-ups.

72. Fostering Entrepreneurship Development - Technology and Innovation Support 2. Innovation Platforms Atal Tinkering Labs (ATL): Innovation workspaces for school students (robotics, 3D printing, IoT). Biotechnology Ignition Grant (BIG): Supports biotech entrepreneurs with grants up to ₹50 lakh. Encourages start-ups in healthcare, agriculture, and environment. 3. Funding for Innovation Startup India Seed Fund Scheme (2021): Provides early-stage funding (up to ₹50 lakh for prototype development and trials). Helps innovators cross the gap between idea and market.

73. Fostering Entrepreneurship Development - 8 8. Networking and Mentorship Mentorship connects experience with fresh ideas. TiE (The Indus Entrepreneurs) , NASSCOM, and Startup India Hub organize mentorship programs. Hackathons, Pitch competitions, E-Summits build peer networks. Alumni networks in IITs, IIMs act as strong startup boosters.

74. Fostering Entrepreneurship Development - 8 8. Networking and Mentorship Mentorship connects experience with fresh ideas. TiE (The Indus Entrepreneurs) , NASSCOM, and Startup India Hub organize mentorship programs. Hackathons, Pitch competitions, E-Summits build peer networks. Alumni networks in IITs, IIMs act as strong startup boosters.

75. Fostering Entrepreneurship Development - Networking and Mentorship 1. Mentorship Platforms TiE (The Indus Entrepreneurs): Global network supporting start-ups with mentorship, funding, and connections. NASSCOM 10,000 Startups: Offers mentoring, co-working, and acceleration programs for tech start-ups. Startup India Hub: One-stop platform for entrepreneurs to connect with mentors, investors, and incubators. 2. Peer Networking Opportunities Hackathons & Pitch Competitions: Platforms like Smart India Hackathon, IIM E-Cell pitch fests help students validate ideas and meet investors. E-Summits: IIT Bombay’s E-Summit and IIM Bangalore’s NSRCEL bring entrepreneurs, VCs, and innovators under one roof.

76. Fostering Entrepreneurship Development - Networking and Mentorship 3. Alumni Support Alumni networks in IITs/IIMs provide seed funding, mentorship, and credibility. Example: Many IIT alumni-backed funds (IIT Bombay’s “E-Cell Angels”) actively invest in student start-ups.

77. Barriers to Entrepreneurship 1. Financial Barriers Lack of access to capital and collateral for loans. High interest rates, limited venture capital in smaller towns. Example: Many rural entrepreneurs struggle to scale beyond micro-business due to lack of formal credit. 2. Administrative & Regulatory Barriers Complicated procedures for registration, licensing, taxation. Despite “Ease of Doing Business,” many small entrepreneurs still face red-tape. Example: Long approval processes in pollution control boards for small manufacturing units.

78. Barriers to Entrepreneurship 3. Infrastructural Barriers Poor connectivity, electricity shortages, lack of tech parks in rural areas. Example: Start-ups in Tier-3 cities struggle compared to Bengaluru/Hyderabad ecosystems. 4. Social & Cultural Barriers Preference for stable jobs over risky ventures. Gender bias against women entrepreneurs in many regions. Example: Women in rural India often discouraged from taking loans or running businesses.

79. Barriers to Entrepreneurship 5. Knowledge & Skill Gaps Limited exposure to entrepreneurial education/training. Lack of mentorship and awareness about government schemes. Example: Many youth remain unaware of support programs like PMEGP, Mudra Yojana. 6. Psychological Barriers Fear of failure, low risk appetite, lack of confidence. Example: Talented students often prefer MNC jobs instead of experimenting with start-ups.

80. Factors Influencing Entrepreneurship 1. Economic Factors Availability of capital, labour, raw materials, and market demand. Good infrastructure and credit facilities encourage entrepreneurship. Example: Rise of fintech start-ups due to UPI and affordable smartphones. 2. Social Factors Family background, caste, religion, and social support networks. Social mobility and acceptance of risk-taking culture matter. Example: Communities in Gujarat and Rajasthan traditionally strong in business.

81. Factors Influencing Entrepreneurship 3. Cultural Factors Values like hard work, achievement orientation, and innovation promote entrepreneurship. Societies encouraging independence and initiative foster more entrepreneurs. Example: Bengaluru’s start-up culture shaped by openness to experimentation. 4. Psychological Factors Personality traits such as risk-taking, need for achievement, creativity, and self-confidence. McClelland’s Theory: High “Need for Achievement” (n-Ach) drives entrepreneurship. Example: Dhirubhai Ambani’s risk appetite in building Reliance.

82. Factors Influencing Entrepreneurship 5. Political & Legal Factors Government policies, stability, taxation laws, licensing, and ease of doing business. Example: Liberalization of 1991 created wave of new entrepreneurs in India. 6. Technological Factors Access to new technologies and R&D boosts innovation. Example: Jio’s digital revolution created ecosystem for app-based businesses. 7. Environmental Factors Local resources, climate, geography, and regional development policies. Example: Amul grew in Gujarat due to strong cooperative environment and dairy resources.

83. SUMMARY Skills (What an entrepreneur can do) Qualities (Who an entrepreneur is) Characteristics (How an entrepreneur behaves) Competencies (What makes an entrepreneur effective) Communication & negotiation Integrity, honesty, confidence Risk-taking, visionary, innovative Initiative, opportunity recognition Leadership & team management Commitment, discipline, responsibility Proactiveness, adaptability Persistence, result orientation Decision-making & problem-solving Patience, optimism Goal-oriented, self-motivated Strategic planning, networking ability Financial & business literacy Ethical mindset, accountability Creative approach, resilience Information seeking, problem-solving capacity Time & resource management Determination, dedication Dynamic, forward-looking Organizing & mobilizing resources

84. CLASSIFICATION SUMMARY Type of Classification Types of Entrepreneurs Key Idea Clarence Danhof Innovative, Imitative, Fabian, Drone Differ in risk-taking & adaptation to change Ownership Private, State, Joint, Co-operative Based on ownership/control of enterprise Technology Technical, Non-technical, Professional Involvement in technology & management Motivation Pure, Induced, Motivated, Spontaneous Driven by profit, government push, social cause, or inner drive Growth Growth-oriented, Lifestyle-oriented Expansion-focused vs stable livelihood-focused Area of Operation Urban, Rural, Agro, Industrial Based on geography and sector focus Gender Male Entrepreneurs, Women Entrepreneurs Gender-based categorization

85. Phases of Entrepreneurship vs Factors Influencing Entrepreneurship Phases of Entrepreneurship (Process / Journey) Factors Influencing Entrepreneurship (Environment / Conditions) 1. Idea Generation – spotting opportunities Economic – capital, labour, market demand 2. Feasibility Study – checking viability Social – family background, community support 3. Business Plan – strategy and resources Cultural – values, innovation, independence 4. Resource Mobilization – finance, people Psychological – risk-taking, achievement drive 5. Launching the Enterprise – starting operations Political & Legal – policies, regulations, stability 6. Growth/Scaling – expanding market, funding Technological – access to R&D, infrastructure 7. Sustenance – survival, adaptation Environmental – resources, climate, geography

86. Fostering Entrepreneurship vs Barriers to Entrepreneurship Fostering Entrepreneurship (Supports) Barriers to Entrepreneurship (Obstacles) Government Policies – Start-up India, Make in India, Atal Innovation Mission Administrative Barriers – licensing, red-tape, compliance burden Infrastructure – SEZs, Tech Parks, Incubators, Digital India Infrastructural Barriers – poor transport, power shortages Financial Support – SIDBI, NABARD, Angel Investors, Microfinance Financial Barriers – lack of capital, high interest rates Education & Training – EDPs, EDII, Skill India, PMKVY Knowledge/Skill Barriers – low literacy, lack of technical know-how Institutional Support – NIESBUD, MSME-DIs, DICs, Chambers of Commerce Social Barriers – family resistance, caste/gender bias Technology & Innovation – CSIR, ISRO, DRDO, Seed Fund Psychological Barriers – fear of failure, risk aversion Networking & Mentorship – TiE, NASSCOM, Alumni networks Market Barriers – limited access to customers, dominance of big players

87. MODULE – 1 IS COMPLETED