ENTREPRENEUR

ANNEXURE C CONTENT BLOCK- 1 INTRODUCTION OF ENTREPRENEUR 

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Unit 1- Entrepreneur: Meaning and Theories

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Unit 2- Socio Economic Environment and Innovation

BLOCK- 2 ENTREPRENEURS AND SOCIAL RESPONSIBILITY

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Unit 3- Entrepreneur: Types and Functions

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Unit 4- Entrepreneur: Specific Traits and Social Responsibilities

BLOCK- 3 NEW VENTURES

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Unit 5- Environmental Analysis for New Venture

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Unit 6- Raising Funds And Legal Requirement

BLOCK- 4 ENTREPRENERIAL DEVELOPMENT PROGRAMMERS

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Unit 7- Entrepreneurial Development Programmers

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Unit 8- Role of Entrepreneur

ANNEXURE (D) BLOC BL OCK: K: 1

INTR INTROD ODUC UCTI TION ON OF ENTR ENTREP EPRE RENE NEUR  UR 

Unit 1- Entrepreneur: Meaning and Theories Unit 2- Socio Economic Environment and Innovation

Page No. -

BLOCK: 1 INTRODUCTION OF ENTREPRENEUR 

The concept of Entrepreneurship has assumed prime importance for accelerating economic growth both in developed and developing countries. In this block we will find the importance and nature of the entrepreneurship for an individual as well as for  the economy. Entrepreneurship is not an inborn skill, it is a produ ct of environment. We will try to understand the role of environment in the development of entrepreneurial skills. This section will focus on the Theories of entrepreneurship and innovations. Unit-1:

This unit covers ‘Entrepreneur: Meaning and Theories’, explains meaning, nature, emergence and Theories of Entrepreneurship. Unit-2:This unit covers ‘Socio Economic Environment and Innovation’, describes some aspects of relationship between Entrepreneurship and Environment. This will explain the Entrepreneur and Innovation.

ANNEXURE (E) UNIT-1

ENTREPRENEUR: MEANING AND THEORIES

Objectives

The objectives of this unit are to enable you: • • • •

Explain the meaning and Nature of Entrepreneur  Discuss the importance and emergence of Entrepreneur  Describe the role of various theories of Entrepreneurship Narrate the Functions and Roles of Entrepreneurship

Structure

1.1

1.2 1.3 1.4 1.5

1.6 1.7

Meaning of Entrepreneurship 1.1.1 Various Concepts of Entrepreneurship 1.1.2 Definition of Entrepreneurship Nature and Characteristics Classification of Entrepreneurship Emergence of Entrepreneurship Theories of Entrepreneurship 1.5.1 Risk Bearing Theory of Knight 1.5.2 Innovation Theory of Schumpeter  1.5.3 Leibenstein’s X- Efficiency Theory 1.5.4 Economic Forces Theory 1.5.5 Resource Based Theory of Entrepreneurship 1.5.6 Socio Logical Theory 1.5.7 Hagen’s Theory of Entrepreneurship 1.5.8 Shapero and Sokol’s Theory of Entrepreneurship 1.5.9 Process- Oriented Model of Stevenson 1.5.10 Max Weberian Model of Entrepreneurship 1.5.11 Exposure Theory of Entrepreneurship 1.5.12 Political System Theory of Entrepreneurship 1.5.13 Regional Climate Theory 1.5.14 Drucker’s Theory of Systematic Entrepreneurship   Summary Self Assessment Questions

1.6  

SUMMARY

Entrepreneurship is the process of identifying opportunities in the market place, arranging resources required to exploit the opportunities for long term gains. It is creating wealth by bringing together resources in new way to start and operate an enterprise. It is the process of planning, organizing, operating and assuming the risk of a business venture. There is nothing as practical as a good theory. Every practice rests on theory, even if the practitioners themselves are unaware of it. Entrepreneurship rests on a theory of economy and Society 1.7

Self Assessment Questions A) Objective Types

1. On the basis of type of Business Occupation, which one is not a type of  Entrepreneurship-? a) Business Entrepreneur  b) Trading Entrepreneur  c) Industrial Entrepreneur  d) Pure Entrepreneur  2. There are ----------- components that are involved in the Entrepreneurial processa) Six b) Seven c) Eight d) Nine 3. Which one is not included in Impetus for Entrepreneurship? a) b) c) d) B)

Negative displacement Positive Push Positive Pull Negative Pull Short Answer Question

4. What is Entrepreneur? 5. Who are Copreneurs? 6. Describe the major functions of Entrepreneur. 7. What qualities are required for a successful Entrepreneur? 8. Explain the concept of ‘Locus of Control’. 9. Discuss Exposure Theory of Entrepreneurship. 10. “Profit is the reward for uncertainty bearing” Discuss.

C) Descriptive Type Questions 11. Discuss the different types of Entrepreneurs. 12. “An Entrepreneur is a catalytic agent in economic development. Explain the role and significance of an Entrepreneur in developing economy with reference to the above statement. 13. “Entrepreneur is one who takes risk.” Explain it and discuss the main qualities of  a successful entrepreneur. 14. What is Innovation Theory of Entrepreneurship? Also evaluate it. 15. Enunciate the ‘Exposure Theory’ of Entrepreneurship.

ANNEXURE (E) UNIT-2

SOCIO ECONOMIC ENVIRONMENT AND INNOVATION

Objectives

The objectives of this unit are to enable you: •

Explain the relationship between Entrepreneurship and environment

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Discuss the changing values  relating to Entrepreneurship

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Describe the role of Socio Economic Environment

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Narrate the Concept of Innovation

Structure

2.1

Aspects of relationship between Entrepreneurship and Environment

2.2

Needs and importance of Entrepreneurial Environment

2.3

2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18

Environmental forces 2.3.1 Internal Environment 2.3.2 External Environmental Factors Changing values relating to Entrepreneurship Factors impeding the growth of Entrepreneurship How to encourage Entrepreneurship Creativity and Innovation defined The creativity process Qualities of creative entrepreneur  Elements in innovation process Skills required for innovation Pre- requisites for effective innovator  Need and role of innovation today Sources and opportunities for innovation Principles of innovation Essential conditions for successful innovation   Summary Self Assessment Questions

2.17

SUMMARY

Entrepreneurship is not an inborn skill, it is a product of environment. It involves a complex of economic and social behaviour. Entrepreneurship can hardly survive under  any given circumstances. It can flourish only under the right environment. In fact the entrepreneurship can not keep aloof from the changing social values, ideologies, new emerging aspirations, religious beliefs, consumer wants and society needs etc. Creativity and innovation are essential to business success as we prepare to entered the new century. Creativity and innovation are seen as being the key to survival in an ever-more competitive and global economy.

2.18

Self Assessment Questions

A) Objective Types 1. Entrepreneurship can flourish in the right type of ___________. a) Environment b) Attitude c) Climate d) Situation 2. Which one of the following is not included in external environment? a) Governmental environment b) Ethical Culture c) Technological environment d) Internal environment 3. ___________ may be triggered by an opportune incident. a) Incubation b) Illumination c) Verification d) Idea generation 4. Which one is not essential condition of successful innovation? a) Innovation at work  b) Innovation must built on their strengths c) Innovation for future d) Innovation is an effect in economy and society B) Short Answer Questions 5. How will you distinguish between Innovation and Creativity? 6 Describe the elements of Innovation process. 7. What are the pre requisites for an effective Innovator? 8. Explain the elements of social environment. 9. Narrate the factors of political environment. 10. What are the characteristics of economic environment?

C) Descriptive type question 11. Discuss the relationship between Entrepreneurship and Environment. 12. Discuss the impact of social environment an Entrepreneurship. 13. Explain the need and role of innovation in today’s consumer society. 14. Define innovation and describe its process.

ANNEXURE (D) BLOCK: 2  

ENTREPRENEURS AND SOCIAL RESPONSIBILITY

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Unit 3- Entrepreneur: Types and Functions

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Unit 4- Entrepreneur: Specific Traits and Social Responsibilities

BLOCK: 2 ENTREPRENEURS AND LEADERSHIP

An entrepreneur is a person who creates an ongoing business enterprise from nothing. Only the entrepreneurs create capital, wealth and resources in a country by their  inventive and risk-taking behavior. The spirit of en terprise makes man an entrepreneur. An entrepreneur performs all the necessary functions which are essential from the point of view of operation an d expansion of the enterprise. A global entrepreneur must be responsive to the social challenges of the times.

Unit-3:

This unit covers ‘Entrepreneur: Types and Functions’, explains the types of entrepreneurs and their functions. It gives proper insight on leadership behavior of an entrepreneur. Unit-4: This unit covers ‘Specific traits and Social responsibilities’, describes the views of  social responsibilities and impact of socially responsible entrepreneur on his economic performance.

ANNEXURE (E) UNIT-3

ENTREPRENEUR: TYPES AND FUNCTIONS

Objectives

The objectives of this unit are to enable you: • • •

Explain the qualities of a successful Entrepreneur  Discuss the types and functions  of Entrepreneur  Describe the role and significance of Entrepreneur 

Structure

3.1 Meaning of an entrepreneur  3.2 Characteristics of an entrepreneur  3.3 Types of entrepreneur  3.4 Functions of entrepreneur  3.5 Role and Significance of entrepreneur  3.6 Trait for an entrepreneur and Administrator  3.7 Qualities of successful entrepreneur  3.8   Summary 3.9 Self Assessment Questions

3.8

SUMMARY

An entrepreneur is a person who sets up a business os an enterprise. He is one who has the capability of risk-bearing, initiative and skill for innovation. He looks for the high achievements. He is a creative thinker, an individual who combines in himself if the role of innovator and risk bearer. Entrepreneur is found in every system and in every form of  economic activity. They are found amongst artisans, traders, importers, engineers, exporters, bankers, industrialist, farmers etc. An entrepreneur is the builder of economic growth. He promotes the prosperity of the country by his initiative and skill for innovation.

3.9

Self Assessment Questions

A)

Objective types questions 1. Entrepreneur is a job giver not a job _________. a) Seeker  b) Deliver  c) Taker  d) Responder  2. On the basis of types of business organizations, how many types of entrepreneur  is classified: a) Four  b) Five c) Six d) Seven B) 3. 4. 5. 6. 7. 8. C)

Short types questions Describe the functions of entrepreneur. Discuss the nature of entrepreneur. Distinguish between professional manger and entrepreneur. What is entrepreneurial process? Describe the qualities of entrepreneur. Distinguish between entrepreneur and administrator. Descriptive types questions

9. “Developing economies need imitative entrepreneur rather than innovative entrepreneur.” Comment. 10. “Entrepreneur is one who takes risk.” Explain it and discuss the main qualities of  a successful entrepreneur. 11. Discuss the role of entrepreneurship in econo mic development. 12. Who is Entrepreneur? What are his functions?

ANNEXURE (E) UNIT-4

ENTREPRENEUR: SPECIFIC TRAITS AND SOCIAL RESPONSIBILITIES

Objectives

The objectives of this unit are to enable you: • • • • •

Explain the Entrepreneurial Leadership Discuss the risk tendencies and behavior of Entrepreneur  Describe the role and significance of Entrepreneur  Narrate the Entrepreneurial business planning Explain the view of social responsibility

Structure

4.1 4.2 4.3 4.4

4.5 4.6

4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15

Entrepreneurial Leadership Leadership behavior of an entrepreneur  Risk taking: the basic quality 4.3.1 Risk tendencies and behavior of an entrepreneur  Entrepreneurial decision making 4.4.1 Process of decision making 4.4.2 Decision making under conditions of certainty, risk and uncertainty Entrepreneurial business planning Business Plan 4.6.1   Characteristics of Business plan 4.6.2 Perspective and scope of business plan 4.6.3 Need and importance of business plan Definition of social responsibility Views of social responsibility Impact of socially responsible entrepreneur on his economic performance Social responsibility debate How much social responsibility? Scope of social responsibility social responsibility of Indian entrepreneur    Summary Self Assessment Questions

4.14

SUMMARY

As entrepreneur is more a true leader and less a manager. He innovates and keeps eye on the horizon. He has long perspective in his work. He focuses on people and inspires trust. He originates and challenges the status quo. Decision making is an important task of an entrepreneur. Entrepreneurial decisions are not based only on good intentions; rather they contain action commitments. Business enterprise is a social institution. Entrepreneurs are linked with different groups of society. Entrepreneurs must act in ways that enhance the community’s well being. 4.15 Self Assessment Questions A) Objective types question 1. Which one of the following is not a quality of an entrepreneur-? a) Urge to achieve b) Sense of purpose c) Strategic Expertise d) Diplomatic 2. How many steps are involved in decision process? a) Nine b) Ten c) Eight d) Six 3. An entrepreneur can cope with environmental uncertainty by adopting one of four  positions i.e. Defenders, Prospectors, Analyzers and _________. a) Leaders b) Reactors c) Idea generators d) Traders B) Short types questions 4. What are the features of entrepreneurial leadership? 5. Disk the risk and decision making. 6. What is the need to plan entrepreneurial activities? 7. When planning goes wrong? 8. Discuss the qualities of entrepreneurial leader? 9. Define social responsibility? 10. What do you mean by social responsiveness? 11. What are the various views of social responsibilities? C)  Descriptive types question

12. Define social responsibility of entrepreneur. Give argument in favour of the need of  social contribution to be made by entrepreneur. 13. Discuss the various areas of social responsibility of an entrepreneur. 14. What are the planning considerations for an entrepreneur? 15. Discuss the entrepreneurial approach of decision making. 16. How will you improve decisional skills of an entrepreneur?

ANNEXURE (D) BLOCK- 3  

NEW VENTURES

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Unit 5- Environmental Analysis for New Venture

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Unit 6- Raising Funds And Legal Requirement

BLOCK: 3

NEW VENTURES

An entrepreneur creates his own business. He is a person who organizes, operates and assumes the risk for a business venture. A new venture is not a sudden discovery; it requires proper thinking and planning. Entrepreneurial ventures are founded by creative individuals. Entrepreneur uses organized effort and means to pursue opportunities to create value. External environment analysis helps formulate a good planning in line with opportunities. The external environment forces affect the venture in various ways; these forces may be complex, rapidly changing and uncertain. Government legislation, awakened social consciences, economic necessities are playing their roles in the creation and existence of enterprise.

Unit-5:

This unit covers ‘Environmental Analysis for New Venture’, explains various types of environment and its analysis for new venture. Unit-6:This unit covers ‘Raising funds and Legal requirement’, describes the legal requirements for the establishment of a new unit. It exp lains the importance of financial resources.

ANNEXURE (E) UNIT-5

ENVIRONMENTAL ANALYSIS FOR NEW VENTURE

Objectives

The objectives of this unit are to enable you: • • • •

Explain the establishment requirement for new venture Discuss the analysis of entrepreneurial opportunities Describe the analysis of external environment and competitive factors Narrate the Micro and Mega Environment

Structure

5.1 5.2

5.3 5.4 5.5 5.6 5.7

5.8

5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17

Why promote a venture Search for business idea 5.2.1 Sources of Idea 5.2.2 Idea processing and selection Setting Goals Preparing business plan Pre-start-up implementation Establishing the Enterprise Defining opportunity 5.7.1 Objectives of identification of business opportunity 5.7.2 Factors affecting identification of business opportunity Process of sensing opportunity 5.8.1 Perceiving basic idea 5.8.2 Harnessing and evaluating opportunity 5.8.3 Feasibility Study 5.8.4 Assessing the impact of opportunity and threats Environment and Entrepreneur  Meaning and types of Environment Need and importance of environmental analysis Constituents of Mega Environment and their impact Analysis of micro environment Assessing the impact of opportunity and threat Competitive factor analysis   Summary Self Assessment Questions

5.16 SUMMARY An entrepreneur perceives an opportunity for making a product. He establishes a bu siness venture on the basis of his scanning of environment and perception of opportunity. He manages the growth and expansion of his venture over a period of time. An entrepreneur  has the unique ability to spot the problem to find a business opportunity. External environmental analysis helps formulate a good planning in line with opportunity. Enterprise does not function in isolation or in vacuum. They exist in society in association with their environment. Thus analyzing the environment is a critical step in promoting a venture. The environment of a venture is divided into two categories: Internal and External Environment. 5.17

1. Which a) b) c) d)

Self Assessment Questions A) Objective types Questions

one of the following is not a constituent of Mega environment? Internal Environment Economic Environment Natural Environment Socio-cultural Environment

2. Which one is not a method of assessing the impact of opportunities and threat? a) Threat Matrix b) Opportunities Matrix c) BCG Matrix d) Issue priority Matrix B) Short Types Questions 3. 4. 5. 6. 7.

Narrate a production plan for new venture. What is a start up stage in promoting a venture? What do you mean by a business idea? What is the need of environmental analysis? Explain the impact of technological environment on the establishment of a new unit. 8. What are the constituents of mega environment? C) Descriptive types Questions 9. What is competitive factor analysis? Discuss basic competitive factors in the external environment. 10. Summarize the analysis of external environment while promoting new industrial unit. 11. “An entrepreneur should conduct a feasibility study.” Discuss

12. How you will promote a new venture? Discuss the various stages.

ANNEXURE (E) UNIT-6

RAISING FUNDS AND LEGAL REQUIREMENTS

Objectives

The objectives of this unit are to enable you: • • • •

Explain the legal forms of the organization Discuss the salient features of important acts and laws Describe the critical issues relating to the funds Explain the long term and short term sources of finance

Structure

6.1 Legal forms of organization 6.1.1 Sole proprietorship 6.1.2 Partnership Firm 6.1.3 Joint Stock Company 6.1.4 Co-operative Undertaking 6.1.5 Hindu undivided Family 6.2 Small scale industry registration 6.2.1 Provisional and permanent registration 6.2.2 Procedure of registration 6.3 Salient features of important acts and laws 6.3.1 Registration related laws 6.3.2 Labor laws 6.3.3 Environment related laws 6.3.4 Local and other municipal laws 6.3.5 Tax related laws 6.3.6 Product and process related laws 6.3.7 Other central acts 6.4 Critical issues 6.5 Short term and Long term finance 6.6 Sources of short term finance 6.7 Sources of long term finance 6.7.1 Internal sources 6.7.2 External sources 6.8   Summary 6.9 Self Assessment Questions

6.8 SUMMARY Some entrepreneur believes they need legal help only if they are sued or are suing others. But this attitude is short sighted. Entrepreneurs should undergo a legal check up while establishing a unit and fulfilling the legal requirement. The entrepreneur needs to be aware of legal formalities that may affect the establishment of his new unit. Financial resources are essential for a new business. After preparing the project report for  setting up a new enterprise, the entrepreneur has to make arrangements for financial resources. No venture can take off and grow without monetary base. 6.9

Self Assessment questions

A) Objective types Questions 1. Working capital includes----? a) Current Assets and Fixed Assets b) Current liabilities and Current Assets c)  Current liabilities and Fixed Assets d) None of the above 2 Which one of the following is not a part of Short term financing? a) Reserves b) Customer Credit c) Credit papers d) Equity shares B) Short types question 3. 4. 5. 6. 7. 8.

What is provisional registration? What do you mean by Partnership Deed? What are the benefits of getting a unit registered? Discuss venture capital as a sources of long term finance. Describe Institutional financing. What are the sources of short term finance?

B) Descriptive types questions 9. Discuss the various sources of long term finance. 10. What are the factors to consider with regard to debt-equity decisions? Discuss. 11. Discuss the legal forms of organization. 12. Discuss the rules of provisional and permanent registration of a new unit.

ANNEXURE (D) BLOCK- 4 ENTREPRENERIAL DEVELOPMENT PROGRAMMES

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Unit 7- Entrepreneurial Development Programmers

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Unit 8- Role of Entrepreneur

BLOCK: 4

ENTREPRENEURIAL DEVELOPMENT PROGRAMMES

Entrepreneurs are inspired people. They are motivated, skilled adventurers. Entrepreneurs are not necessarily born; they can also be developed through education. Entrepreneurial talent exists in every society and in all sections of the society. Entrepreneurship development is a prerequisite for overall economic development of  any country. The growth of the nation depends upon the skilled entrepreneurs. The government provides many facilities and incentives for the promotion of  entrepreneurs in India. The factors contributing to econ omic development are labor, technology, capital and managerial skills.

Unit-7:

This unit covers ‘Entrepreneurial Development Programmes’ explains significance of EDP in India and about the institutions conducting EDPS in India.

Unit-8:This unit covers ‘Role of Entrepreneur’, describes the role of entrepreneur in socio economic growth, Export promotion and Import substitution as well as the role of government in EDPS.

ANNEXURE (E) UNIT-7

ENTREPRENEURIAL DEVELOPMENT PROGRAMMES

Objectives

The objectives of this unit are to enable you: • • • •

Explain the meaning of entrepreneurial development programmes Discuss the phases of EDPs Describe the institutions conducting EDPs in India Explain the suggestion to make EDPs more effective

Structure

7.1 7.2 7.3 7.4 7.5

Meaning and definition of EDP Nature of EDP Need and importance of EDP Objectives of EDP Phases of EDP 7.5.1 Initial preparation 7.5.2 Identification and selection of potential entrepreneur  7.5.3 Training and development phases 7.5.4 Support system 7.5.5 Monitoring and Follow-up 7.6 Institutions conducting EDPs in India 7.6.1 NIESBUD 7.6.2 EDII 7.6.3 SIDO 7.6.4 Indian Investment Centre 7.6.5 NISIET 7.6.6 SIDBI 7.6.7 Xavier Institute of Social Services 7.6.8 Madhya Pradesh Consultancy Organisation Ltd. 7.6.9 Calcutta ‘Y’ Self Employment Centre 7.6.10 TCOs 7.7 Institutional efforts for EDPs in India 7.8 Critical evaluation of EDPs in India 7.9 Suggestions to make EDPs more effective 7.10   Summary 7.11 Self Assessment Questions

7.10

Summary

Entrepreneurial development programme is an effective way to develop entrepreneurs which can help accelerate the pace of socio-economic development, balanced regional growth, exploitation of locally available resources. It can also create gainful self  employment. An EDP equips entrepreneurs and makes them competent to anticipate and deal with a variety of problems that any entrepreneur may have to face. It gives confidence to the entrepreneurs to face uncertainties and takes profitable risk. It prepares them to deserve and make good use of various forms of assistance. In India various   national   and   state   agencies   are   engaged   in   EDPs   for   first   generation entrepreneurs. 7.11

Self Assessment Questions

A) Objective types question 1. Entrepreneurship Development Institute of India was established in ________. a) 1963 b) 1983 c) 1973 d) 2003 2. How many phases are there in Entrepreneurial development programme ? a) Five b) Six c) Seven d) Eight B) Short answer types Questions 3. Explain the objectives of EDP. 4. Explain three basic features of EDP. 5. Explain the need of EDP. C) Descriptive types Question 6. 7. 8. 9.

What is Entrepreneurial development programme? Write its characteristics. Discuss the major phases of EDP in detail. Describe various institutions conducting EDPs in India. What do you mean by Entrepreneurial development programme? Explain its relevance and stages. 10. Review and evaluate EDPs in India.

ANNEXURE (E) UNIT-8 Objectives

ROLE OF ENTREPRENEUR 

The objectives of this unit are to enable you: Explain the role of government in Entrepreneurial development • Narrate the role of entrepreneur in socio-economic growth • Describe how entrepreneurs are playing important role in export promotion • Explain the role and importance of entrepreneur in import substitution • Structure

8.1 8.2

8.3 8.4 8.5 8.6 8.7 8.8

8.9 8.10 8.11 8.12 8.13

Government incentives, subsidy and assistance Government role in the for of assistance and incentives 8.2.1 Government assistance 8.2.2 Government incentives 8.2.3 Government schemes for infrastructural facilities 8.2.4 Other roles of Government Entrepreneurship and Economic growth Need and importance of entrepreneurship for socio economic growth Role of entrepreneur under various economic systems Various role of entrepreneur in socio economic development Role of entrepreneur as an innovator  Export promotion 8.8.1 Exploring export promotion possibilities 8.8.2 Decisions regarding entry in international market 8.8.3 Decision regarding selection of market 8.8.4 Creation of demand in international market 8.8.5 Decision regarding mode of entry 8.8.6 Product mix decisions 8.8.7 Decision regarding pricing and costing 8.8.8 Decision regarding distribution 8.8.9 Promotion decision 8.8.10 availing of export promotion schemes 8.8.11 getting institutional support 8.8.12 getting help- source of information Import substitution Objects and importance of Import substitution Measures for Import substitution Problems of Import substitution Role of entrepreneur in Import substitution

8.14 Critical evaluation 8.15   Summary 8.16 Self Assessment Questions 8.15

Summary

Entrepreneurial development plays an important role in industrial production employment generation and exports. The government provides many incentives and support facilities for the promotion on entrepreneurs in India. Entrepreneurs co ntribute to economic development in many ways, viz. capital formation, technological breakthrough, innovating skills, market expansion and organization of productive resources. An entrepreneur is the central figure of economic growth. He is a propeller of  development under free enterprise. He provides strength to economy. He creates opportunity for self employment, build social stability, caters local demands and promotes balanced regional growth. 8.16 Self Assessment Questions A) Objective types questions 1. Which one of the following is not a part of government incentive scheme-? a) Subsidy relating Investment b) Subsidy relating to Taxes c) Industrial growth centre scheme d) Excise duty exemption 2. Entrepreneurship works in different economic systems such as Capitalism, Mixed economy, Developed economy, Developing economy and _____________. a) Socialism b) Democratic c) Monopolistic d) Materialistic B) Short Answer types questions 3. 4. 5. 6. 7. 8.

Explain the need of government role in EDP. “Entrepreneur is a business leader.” Explain What is the role of an entrepreneur in capitalism? How does an entrepreneur supplement the development process in an economy? What are the export incentives given to entrepreneur? What are the objectives of Import substitution?

C) Descriptive type questions 9. Write short notes on the following: 1) Justification of import substitution 2) Measures of import substitution 10. Discuss the role of entrepreneur in promoting exports in country. 11. Discuss the role of entrepreneur in augmenting and meeting local demand.

12. Explain the role of entrepreneur in bringing about social stability. 13. Discuss the relationship of entrepreneur with innovation. 14. What are the incentives, subsidies and assistance the government is providing to entrepreneurs in India?