l1 on entrepreneurship and its development

entruprenership

1. ENTREPRENEURSHIP DEVELOPMENT AND BUSINESS MANAGEMENT EXE-123(Ho) CREDIT HOURS 3(2+1)

2. EVOLUTION CONCEPT NEED IMPORTANCE OBJECTIVES CHARACTERISTICS OF ENTREPRENEURS TYPES OF ENTREPRENEURS FUNCTIONS DEVELOPMENT OF ENTREPRENEURSHIP ENTREPRENEURSHIP DEVELOPMENT PROCESS

3. Evolution of Entrepreneurship • Ancient Period: The term "entrepreneur" originally came from the French word entreprendre , meaning "to undertake ." In ancient times, traders and merchants who undertook risky sea merchants or caravans were the early entrepreneurs. • Middle Ages: Entrepreneurship was linked with building infrastructure like roads, buildings, and bridges for the government, often with risk and reward-sharing agreements. • Industrial Revolution: The rise of factories and machinery led to entrepreneurs who owned and managed production units.

4. • 20th Century: Entrepreneurship became associated with innovation, capitalism, and business leadership. • 21st Century: Concepts like social entrepreneurship , agripreneurship , and green entrepreneurship are gaining prominence. Technology and digital platforms have revolutionized the way entrepreneurs operate. In India, government initiatives like Startup India , Skill India have further encouraged entrepreneurship across sectors, including agriculture and horticulture.

5. Concept of Entrepreneurial Development Entrepreneurial development is the process of enhancing Knowledge, Attitude and Skills of individuals to become successful entrepreneurs. It involves training, mentoring, and support to help individuals start and manage enterprises. The goal of entrepreneurial development is to innovative, and job-creating individuals , especially in rural and agricultural sectors, thereby contributing to national development.

6. Need and Importance of Entrepreneurial Development Employment Generation : Entrepreneurship creates self-employment opportunities and also jobs for others. Utilization of Local Resources : Entrepreneurs make productive use of locally available natural resources, human, and capital resources. For example, using local fruits to make jams, juices, or pickles. Rural Development : Entrepreneurial development encourages youth to stay in rural areas and build enterprises. This reduces migration to cities and helps rural upliftment.

7. Innovation and Competitiveness : Entrepreneurs often bring innovation in products, marketing, and production methods. This improves product quality and customer satisfaction. Economic Development : A strong base of small and medium enterprises contributes to national income, exports, and tax revenue. It helps in balanced regional development. Reduces Dependence on Government Jobs: With limited government jobs, entrepreneurship offers an alternative and empowering career path.

8. Objectives of Entrepreneurial Activities Entrepreneurial activities serve various goals, both at the individual and societal level. These objectives include: To Generate Self-Employment : One of the primary objectives is to help individuals and reduce dependence on external jobs. To Create Jobs for Others : Entrepreneurs hire people, creating employment opportunities in their communities. To Innovate and Solve Problems : Entrepreneurs aim to solve real-world problems through innovative solutions.

9. To Improve Standard of Living : Entrepreneurship increases income levels, access to services, and quality of life through better products and services. To Contribute to Economic Growth : Entrepreneurial ventures increase GDP, exports, and local investments. To Utilize Waste and Add Value : Many horticultural enterprises focus on waste-to-wealth strategies—like making compost, biopesticides, or processed food products from surplus fruits or vegetables. To Encourage Sustainable Practices : Modern entrepreneurs also focus on environmental responsibility by promoting eco-friendly farming, packaging, and marketing.

10. CHARACTERISTICS OF ENTREPRENEURS 1.Risk Taking (Calculated Risk)- This characteristic implies assuming the responsibility for losses that may occur due to the uncertainty of the future. 2. Innovation - Innovation is a crucial trait of entrepreneurship. It involves: •Doing things in a new and better way •Making decisions under uncertainty 3. Decision Making- Decision-making refers to the course of action chosen from multiple alternatives to achieve the desired goal. 4. Skilful Management- Entrepreneurs must: •Initiate and supervise the organization’s projects •Align these with upcoming opportunities

11. 5. Building Organization- Building an organization involves: •Delegation of authority •Proper leadership. 6. Self-Confidence- Entrepreneurs must believe in their abilities and decisions. 7. Taking Initiative- Entrepreneurs proactively identify and act on opportunities. They do not wait for things to happen—they make things happen. 8. Goal Setting- Setting clear, achievable, and measurable goals gives direction and focus. 9. Information Seeking- Entrepreneurs must constantly seek information about markets, technologies, customer needs, competitors, etc., to make informed decisions and stay ahead. 10. Leadership- Entrepreneurs must possess strong leadership skills to inspire, guide, and manage their team effectively toward shared goals.

12. TYPES OF ENTREPRENEURS (C. Danhoff) Innovative/Aggressive Entrepreneur These entrepreneurs introduce new products , services , or technology . They are creative and willing to take risks. In horticulture, an innovative entrepreneur might develop automated irrigation systems or organic pest control methods . 2. Imitative/Adoptive Entrepreneur They copy or adopt successful innovations introduced by others. Less creative, but efficient in execution. Example: Starting a polyhouse farm after observing success in another region.

13. 3. Fabian/Skeptical Entrepreneur Very cautious and conservative. They don’t take risks and adopt innovations only when they are sure it will not fail. In agriculture, they might use proven farming techniques rather than adopting new ones quickly. 4. Drone/Orthodox Entrepreneur These entrepreneurs resist changes in production methods. They continue with traditional practices even when others adopt modern technologies. In horticulture, they might continue with open field farming despite the benefits of protected cultivation .

14. OTHER TYPE OF CLASSIFICATION Social Entrepreneur Focuses on solving social problems through entrepreneurial practices. They are motivated by social impact rather than profit. Example: Promoting community gardens or nutrition-focused vegetable farming in rural areas. Serial Entrepreneur Continuously starts and runs new businesses. Sells existing businesses once they become successful. In horticulture, they might start a seedling nursery , sell it, and then start a fruit processing unit .

15. First-Generation Entrepreneur They start a business without any family background in entrepreneurship. These individuals take high risks and often break societal barriers. Agripreneur (Agricultural Entrepreneur) Specifically focuses on agriculture and allied sectors like horticulture, floriculture, and food processing. Example: Launching a fruit dehydration unit or medicinal plant nursery.

16. FUNCTIONS OF ENTREPRENEURS 1. Innovation Entrepreneurs bring new ideas, products, or processes to the market. They may introduce: New horticultural crops Advanced irrigation or greenhouse technologies 2. Risk Bearing Entrepreneurship involves uncertainty and risk (financial, technical, and market-related). Entrepreneurs take calculated risks to achieve business goals.

17. 3. Organization and Management Entrepreneurs organize land, labor, capital, and technology to run their enterprise. Example: Managing a nursery business or a floriculture farm . 4. Decision Making Entrepreneurs make all key decisions related to: Product selection Pricing Marketing Investment Timely and strategic decisions are critical for success, especially in perishable crops like fruits and vegetables .

18. 5. Marketing and Promotion Entrepreneurs develop marketing strategies , branding, packaging, and promotion to reach customers. 6. Adaptation to Change Entrepreneurs are dynamic and responsive to market trends and customer preferences. 7. Motivation and Leadership Entrepreneurs inspire and lead their team towards achieving goals.

19. DEVELOPMENT OF ENTREPRENEURSHIP Entrepreneurship development refers to the process of enhancing the Knowledge, Attitude And Skills (KAS) of individuals to enable them to start, manage, and grow their own business ventures. It involves creating an ecosystem that encourages innovation, risk-taking, and enterprise building.

20. Motivational Factors These are internal or personal factors that drive an individual to become an entrepreneur : a. Economic Motivation Desire to earn more than in traditional jobs. High return on investment in value-added horticulture products. b. Social Motivation Respect and recognition in the community. Making an impact through sustainable practices. c. Personal Motivation Passion for farming, plants, and innovation. Personal satisfaction of producing and selling own products. d. Innovation Drive Interest in experimenting with organic farming, new varieties, post-harvest technology, etc .

21. Social Factors These are societal and cultural influences that shape entrepreneurial intentions: Family Background: Entrepreneurial family can instill business values early. Social Status and Prestige: Owning a business can elevate social standing. Education and Literacy: Higher education levels often correlate with entrepreneurship. Support from Social Networks: Friends, relatives, and community can offer support.

22. Environmental Factors These are external conditions that affect entrepreneurship development: Government Policies and Regulations: Tax incentives, legal framework. Economic Conditions: Availability of capital, demand for products/services. Infrastructure: Transport, communication, and technology access. Institutional Support: financial institutions, and NGOs.

23. ENTREPRENEURSHIP DEVELOPMENT PROCESS (DESAI, 2011) Desai (2011) divided the Entrepreneurship Development Process into three main phases : 1. Stimulatory Phase This phase is focused on motivating individuals to consider entrepreneurship as a viable career option. ➤ Objectives: Create awareness Inspire and generate interest ➤ Activities: Entrepreneurship awareness camps (EACs) Motivational talks and success stories Interaction with successful entrepreneurs Example: KVK or agricultural universities organizing awareness programs on starting nursery businesses or organic farming units.

24. 2. Support Phase This phase provides the necessary inputs and infrastructure to help aspiring entrepreneurs start their ventures . ➤ Objectives: Provide technical, managerial, financial and infrastructural support and guidance ➤ Activities: Help in project report preparation Guidance in legal formalities (licensing, registration) Financial assistance (loans, subsidies) Example: Training on protected cultivation, post-harvest technology, and linking with schemes like Startup India.

25. 3. Sustaining Phase This phase ensures the long-term survival and growth of the business through continuous support and development. ➤ Objectives: Ensure sustainability and expansion of enterprise ➤ Activities: Monitoring and mentoring Export promotion support Example: Support in exporting floriculture products, digital marketing help for a fruit brand, or tech upgradation in a dehydration unit.