Unit 2

Entrepreneurial characteristics – Attributes and

Characteristics of successful Entrepreneur, attitudes –
motivation . Small business and corporate
entrepreneurship –culture and competence- Building
entrepreneurial organization. Entrepreneurial team –
matching human resources needs and skills.

SSIPMT/ SAPNA SHARMA/ED

 Characteristics and attributes of a Successful
Entrepreneur
Self Confident Optimistic
Able to take calculated risks Respond positively to challenges
Flexible & able to adapt Knowledge of markets
Able to get along well with others Independent minded
Versatile knowledge Energetic
Creative Dynamic Leader
Responsive to suggestions Takes initiative
Resourceful & perceiving Perceptive with foresight
Responsive to criticism Risk taking
Future Orientation Value of achievement
Desire for responsibility Goal Orientation
Problem Solving Team building

SSIPMT/ SAPNA SHARMA/ED

Entrepreneurial Ethics
 The ethics of the organization are frequently
ambiguous & shifting.
 Stereotypically the entrepreneurs are seen
having low ethical standards.
 Entrepreneurs repeatedly face ethical
dilemmas.
 As per Koontz, Social responsibility is the
personal obligation of everyone as he acts in
his own interest to assure that the rights &
legal interest of all others are not infringed.

SSIPMT/ SAPNA SHARMA/ED

Need
 Changed public expectation of business
 Society created better environment for
business
 Availability of resources
 Accountability to the corporate internally

SSIPMT/ SAPNA SHARMA/ED

Business Ethics
 To charge fair pricing
 In the times of scarcity
 Lower standard goods
 Not to adulterate goods
 Misleading advertisements
 To invoice imported or exported goods
at the correct prices
 Not to deal knowing smuggled goods
 Not Providing after sales services

SSIPMT/ SAPNA SHARMA/ED

Ethical Issues/ dilemmas
 Promoter dilemma( the early stages of
promoting the business to financial
supporters, customers, potential partners,
certain euphoria is associated with the
effort)
 Innovator Dilemma (new business, new
technologies)
 Relational Dilemma( entrepreneur
Becomes a member of a number of
different networks, firms etc)
SSIPMT/ SAPNA SHARMA/ED
Resolving Ethical Dilemma
 Utilarian rule (which choice produces the
most good for most people)
 Absolute Rule ( appealing to a moral or
religious code)
 Relativist approach (goes along with
crowd)

SSIPMT/ SAPNA SHARMA/ED

Entrepreneurial Attitude
 Attitude are the evaluative statement
concerning object, people or events. It
reflects one’s opinion about something.
 Positive Attitude
 Determinant
 Comfortable with unpredictable working
hours
 Strong belief in themselves

SSIPMT/ SAPNA SHARMA/ED

Entrepreneurial Motivation
Introduction, Meaning, Definition,
Theories

Process
 Need
 Tension
 Action
Positive (fulfillment of needs)
Negative (aggressive action)

SSIPMT/ SAPNA SHARMA/ED

Motivating factors (by R. A. Sharma)
Internal Factors External Factors
 Desire to do  Government support
something new  Availability of labour
 Educational & RM
background  Encouragement from
 Experience big business houses
 Promising demand
for the product

SSIPMT/ SAPNA SHARMA/ED

Factors responsible for the
emergence of entrepreneurship
 Background Factors
 Education, Training Experience
 Family, Role models & association with
similar type of individuals
 Financial condition
• Motivational Factors
 Need for achievement
 Personal motives/ expectations
 Business environment

SSIPMT/ SAPNA SHARMA/ED

 Economic Factors
 Supportive government
 Availability of financial assistance from
various funding bodies
 Ancillary support
 Availability of technical factors like premises,
electricity, labour
• Reward
 Recognition
 Social status

SSIPMT/ SAPNA SHARMA/ED

Entrepreneurial Competency
 Knowledge
 Skill
 Motive

Development of competency
Competence recognition, self assessment,
competency application, feedback

SSIPMT/ SAPNA SHARMA/ED

Small Scale Industries
 Credit for the development of SSIs goes to
the vision PM Shri J.L. Nehru who sought to
develop core industry & put in supporting
sectors in the form of SSI
 Role of SSIs in developing economy
1. Dynamic & vibrant sector of economy
2. Prominent role in socio economic
transformation of the country
3. Accounts for 35% of industrial production,
40% of exports, 60% of employment
opportunities.

SSIPMT/ SAPNA SHARMA/ED

Characteristics
 One man show
 The owner himself is the manager
 Scope is localized
 Smaller capital investment
 It is dispersed to rural market
 They are more inclined towards change

SSIPMT/ SAPNA SHARMA/ED

Objective
 Generate immediate employment
 Encouraged the dispersal of industries all
over the country
 Bring background area under main stream
development
 Effective mobilization of countries
untapped resources

SSIPMT/ SAPNA SHARMA/ED

Importance
 Provide the increased employment
 Require lower gestation periods
 East to set up in rural & background areas
 Need small/ local market
 Encourage growth of local entrepreneurship
 Create a decentralised pattern of ownership
 Foster diversification
 Introduce new products to cater local needs
 Influence the standard of living

SSIPMT/ SAPNA SHARMA/ED

Strength & weaknesses of SSIs
Strengths Weaknesses
 Innovative & techno  No proper planning can
managerial skills lead to failure
 The enterprising spirit  Initiators with small
 Employment generation financial background likely
to fail
 Distribution of economic
power  All responsibilities on one
shoulder
 Experts potentiality
 No experience
 Adjustability & adaptability
 Less knowledge of market
 Decentralization of
industry
 Variety in the product
offered
 Dependence of Big
industries on SSIs
SSIPMT/ SAPNA SHARMA/ED
Types of SSIs
 Ancillary industrial undertakings
 Tiny enterprises
 Women entrepreneurs
 Village industries- handloom, handicrafts,
etc

SSIPMT/ SAPNA SHARMA/ED

Problems
 Problem of raw material
 Problem of finance
 Problem of marketing
 Problem of underutilization of capacity
 Other problems like technology
obsolescence, imperfect knowledge of
market.

SSIPMT/ SAPNA SHARMA/ED

Impact of Globalization & WTO on
SSI
 Tighter patent laws through regulations of
intellectual property of rights under TRIPS
agreement
 Worldwide market & opportunity to
export
 Intensified competition towards market
 Import of high quality of goods

SSIPMT/ SAPNA SHARMA/ED

Promotional measures taken by
Central Govt.
 Industrial extension services
 Institutional support in respect of credit facilities
 Provision of developed sites for construction of
sheds
 Provision of training facilities
 Supply of machinery on hire / purchase terms
 Assistance for domestic marketing & exports
 Special incentives for setting up in backward areas
 Technical consultancy

SSIPMT/ SAPNA SHARMA/ED

Prospects of SSI
 They will have to take effective measures
in the following areas:
 Quality control
 Marketing arrangements
 Advertisement
 Recovery of receivables
 Professionalism in management
 Inventory control
 Opportunities

SSIPMT/ SAPNA SHARMA/ED

 CORPORATE
ENTREPRENEURSHIP
Or
INTRAPRENEURSHIP

SSIPMT/ SAPNA SHARMA/ED

Entrepreneurial process
Identify & evaluate the opportunity
An opportunity assessment plan includes- a
description of the product or services,
an assessment of opportunity as well as
of entrepreneur, specifications of all the
activities & resources needed to
translate the opportunity into a viable
business venture & the sources of capital
to finance the initial venture as well as
its growth.

SSIPMT/ SAPNA SHARMA/ED

Develop a business plan
Developed in order to exploit the defined
opportunity, it’s a time consuming phase.
 Determining the resources required &
obtaining those resources
 Successfully managing the resulting
venture.

SSIPMT/ SAPNA SHARMA/ED

The Entrepreneurial team –
matching HR needs & skills
 The success of an enterprise is more
determined by the individual who lead it
forward than by its products/ services.
 The entrepreneurial team transforms
creative ideas into commercial realities
through their hard work & determination.

SSIPMT/ SAPNA SHARMA/ED

Role
 For the independent small business, the owner
must wear several hats at once- leading, managing
& administering the new enterprise
 For Corporate venture, a company “Champion”
must assemble a team of like minded people
capable of breathing into an innovation
 For high growth new venture, an entrepreneur
must have the foresight to find partners or hire
people with complementary skills needed to
guide the enterprise towards success.

SSIPMT/ SAPNA SHARMA/ED

Need of managing people
 Management functions
 Objectives for which the company is established to
attain economically
 Manage others 4 M’s
 An individual knowledge, skill, creativity, talent can be
extracted & utilised properly
 Objective of society can be served
 Human relation & industrial relation
 Labour turnover can be reduced
 Job satisfaction
 Helps to coordinate individual & companies goal
 It helps in identifying adequate wages, incentive,
security etc
SSIPMT/ SAPNA SHARMA/ED
Matching the needs & skills
 New ventures succeed or fail on the
performance of founding entrepreneurs.
 An exceptional new product positioned in
the best possible market has no life of its
own without a skilled founder.
 It is the capability of a determined
entrepreneur team that breathes life into
an enterprise.
 Consequently investors evaluate the
chances of success.
SSIPMT/ SAPNA SHARMA/ED
Criteria for establishing a successful
entrepreneurial team
 The founder must have the personal skill
& commitment to head the venture.
 The founder must either have a team or
able to identify who is needed on a team
to launch the venture.
 The team must be able to shall in the
success of the new venture

SSIPMT/ SAPNA SHARMA/ED

Specific management problems
 Management deficiency
 Finance
 Manufacturing & technical problems
 HRD
 Selection & equipments
 Product planning
 Technical know how
 Preparation of project report

SSIPMT/ SAPNA SHARMA/ED