MODULE 1-Perspective of Entrepreneurship

1. Define Entrepreneurship.
In political economics, entrepreneurship is the quality of being an businessman, i.e. one who
"undertakes an enterprise". Entrepreneurship has been described as the "capacity and willingness
to develop, organize and manage a business venture along with any of its risks in order to make
a profit."
2. What are the charms of becoming entrepreneur?
The major charms of becoming an entrepreneur are discussed as follows:
 Opportunity to Create One’s Own Destiny: Owning a business provides entrepreneurs
both the independence and opportunity to do and achieve what is important to them.
Entrepreneurs know that they are the driving forces behind the success of their business.
Therefore, they want to make their destiny high and bright and, thus, want to “call the
shots” in their lives as much as possible. They use their businesses to make it come true.
They believe in Swami Vivekananda Ji’s dictum: “You are the creator of your own
destiny.”
 To Make a Difference: A perceptible trend which is on increase also noticed among the
entrepreneurs is that they start their business because they see an opportunity before them
to make a dent and difference in the cause that is important to them. It may be providing
low-cost houses to the middle-class families or establishing a recycling programme to
preserve the earth’s limited resources. Mr. Deepak S. Parikh, the Chief Executive Officer
(CEO) of the Housing Development and Financing Corporation Limited (HDFC) is one
such example among the Indian entrepreneurs.
 Opportunity to Reach One’s Full Potential: Owning a business gives entrepreneurs a
sense of empowerment to do what they can. In his ‘Need Hierarchy Theory of
Motivation,’ Abraham Maslow termed it ‘Self-Actualization’. Thus, doing business
becomes entrepreneurs’ play. It also becomes an instrument for entrepreneur’s self-
expression and self-actualization. They know that the only boundaries on their success
are those imposed by their own creativity, enthusiasm and vision.
 Opportunity to Reap Impressive Profits: Industrial surveys show that the entrepreneurs
earn much more income than if they work for others, say some organization. Of course,
all not, but some entrepreneurs become super-rich. Michael Dell, the owner-entrepreneur
of Dell Computer Corporation is one such example of richness reaching the list of the
wealthiest people in the United States. (Late) Dhiru Bhai Ambani and N. R. Narayana
Murthy, among others, are such examples of rich entrepreneurs in India.
 Opportunity to Contribute to Society: Entrepreneurs by running their businesses in an
honest and transparent manner and serving the customers faithfully earn recognition and
respect in their communities. They contribute to the well being of the society as well by
providing jobs to unemployed, utilizing idle resources, reducing differences in the levels
of development of different regions, and producing and providing goods and services to
the people in the society. Here is an anecdote how entrepreneur contribute to the well
being of society. The well-known entrepreneur N. R. Narayana Murthy started Infosys
Foundation to render services in the area of education and health care. It’s Chairperson,
Sudha Murty, the wife of Narayana Murthy says: “We have a responsibility to give back
to the society. Wealth is only a means to an end and we are just trustees of that wealth.”
 Opportunity to Do What One Enjoys: Entrepreneurial history is replete with the
instances that most of the entrepreneurs entered into business because they have an
interest in that line of work. They have made their avocations (hobbies or interest) their
vocations (work). For such entrepreneurs, Harvey McKay’s dictum seems worth quoting:
“Find a job doing what you love, and you’ ill never has to work a day in your life. The
journey rather than the destination is the entrepreneur’s greatest reward.
3. Define competency.
Competencies, on the other hand, are the person's knowledge and behaviours that lead them to be
successful in a job. Examples: Commercial Awareness, Decision Making, Communication,
Leadership, Trustworthiness & Ethics, Results Orientation and Problem Solving.

4. Why country needs large and continues supply of entrepreneur?

Entrepreneurs create employment opportunities not only for themselves but for others as
well. Entrepreneurial activities may influence a country's economic performance by bringing
new products, methods, and production processes to the market and by boosting productivity and
competition more broadly.

5. What is SWOT?
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT Analysis
is a technique for assessing these four aspects of your business.

6. Mention the types of Entrepreneurs.

Classification according to type of business:
 Business Entrepreneurs
 Trading Entrepreneurs.
 Industrial Entrepreneurs.
 Corporate Entrepreneurs.
 Agricultural Entrepreneurs
Classification Based on Gender
Based on Size of Business (Large/Small/medium)

7. Who is an Intrepreneur?
An intrapreneur is an employee who is tasked with developing an innovative idea or project
within a company. The term intrapreneurship refers to a system that allows an employee to act
like an entrepreneur within a company or other organization. Intrapreneurs are self-motivated,
proactive, and action-oriented people who take the initiative to pursue an innovative product or
service.

8. Mention the classification of entrepreneurs according to Clarence Danhof.

Clarence Danhof had classified the entrepreneurs into four categories:- 1. Innovative
Entrepreneurs 2. Imitative Entrepreneurs 3. Fabian Entrepreneurs 4. Drone Entrepreneurs.

9. What is rural Entrepreneurship? Example.

Rural entrepreneurship refers to initiatives and activities of the entrepreneurs related to the
establishment of industrial and business units in the rural areas. Example - Mansukhbhai Jagani
Hailing from a family of poor farmers in Mota Devailya village of Amreli district, Gujarat,
Mansukhbhai is a popular rural entrepreneur. A school dropout, had to start helping his father in
farming in his early years. But, he always had a positive approach towards life and made sure
these problems did not affect him. Soon, he ended up developing a motorcycle based tractor for
India’s poor farmers that are both, cost effective and fuel efficient. He also developed an
attachment for a motorbike to customize it – a multipurpose tool bar called Bullet Santi which
can carry out various farming activities like furrow opening, sowing, inter-culturing, and spraying
operations. This innovation, which led to increase in productivity, turned out to be a blessing for
hundreds of farmers in India. Bullet Santi has won a patent in India and US.

10. What is Women Entrepreneurship? Example.

 Women entrepreneurs are those women who think of a business enterprise, initiate it, organise
and combine factors of production, operate the enterprise and undertake risks and handle
economic uncertainty involved in running it.

11. What is Social entrepreneurship?

Social entrepreneurship is an approach by individuals, groups, start-up companies
or entrepreneurs, in which they develop, fund and implement solutions to social, cultural, or
environmental issues.

12. What is Family Business? Example.

A family-owned business may be defined as any business in which two or
more family members are involved and the majority of ownership or control lies within a family. 
Example – Tata Group

13. What is opportunity?

an appropriate or favorable time or occasion
.
14. What is Achievement Motivation? How does one develop it? And what are the action points for
the same?
Achievement motivation is the need for excellence and significant
accomplishment, despite what rewards may be offered after the achievement has to
offer.
Both personality and situational factors influence.
It is the need for achievement that motivates a person. Entrepreneurs are highly
active, different from others & work hard to reach their Goals.
ACTION POINTS TO DEVELOP MOTIVATION
 Develop a need for achievement.
 Do a SWOT analysis.
 Develop the language and vocabulary.
 Take achievement motivation training.

15. Discuss the various factors Motivate people to become Entrepreneurs.

All entrepreneurs have their own respective journeys to start their companies.
There is no “one size fits all” theory or strategy that works for everyone who
wishes to be an entrepreneur. However, there are certain peculiar factors that do
play a pivotal role in motivating and inspiring people to own a startup.

 Passion - You cannot be a lifeless soul who doesn’t believe in anything and neither
wishes to believe. An entrepreneur needs to know how to take calculative risks that
sometimes, involve a lot of things at stake. The courage of taking risks usually comes
from having faith in something. And, faith usually arises when one has passion towards
something. You go to any motivational speaking seminars and you will see every speaker
talking about the importance of passion in starting a business. Success of a company is
directly proportional to hard work and perseverance of the owner. It is, however, passion
of the owner that pushes them to work hard. The energy of passion can take your
business all over the world. In addition, it helps in keeping us going during days when
money isn’t coming and work isn’t happening. So definitely, passion is a key motivating
factor that drives people towards entrepreneurship.
  Self-Reliance - Let’s talk about being self-reliant, which is another key motivational
factor that drives more than half of the world’s population towards entrepreneurship. One
of the biggest problems with working for someone else is that you are almost never given
the freedom to solve a problem on your own. It is always about getting permissions from
higher authorities along with finishing mysterious paperwork for the same. For some, that
turns out exactly to be the key reason for starting their own company. Entrepreneurs are
very creative people, and they don’t want to slow down their creativity for any reasons.
It’s the sense of freedom, independence, self-reliance that motivates them to
entrepreneurship.
 Feeling of accomplishment - For some of us, the feeling of pride that comes along in
making a difference in the society is what plays a crucial role in establishing a venture.
It’s the pride and a sense of accomplishment that one feels in offering services to the
community makes one attracted to entrepreneurship. Every night before you go to bed,
you see yourself feeling satisfied with your day work, it is this exact feeling why people
would want to work for themselves. It is about doing the best that you can for your
customers, striving hard for excellence in all the endeavors drives them to start a
company.
 Personal Growth - In real sense, when you run your own business, you really come to
know what you are made of. The kind of adversities that you face on daily basis help you
become more aware of you as a person, and also helps you grow phenomenally. When
you start working for yourself, you have nobody to fall back on. You have no option
but to work on your weaknesses in order to make your business grow. For instance, if
you don’t have the mastery over online marketing then you have no other choice but to
cultivate the skills of learning online marketing. In this case, you can look for several
online marketing tools such as local online business directory Australia.
 Sense of Control - In my opinion, a sense of control over things comes across as the most
profound reason for being an entrepreneur. Most of the entrepreneurs get fascinated by
the sense of immense security that comes in being your own boss. You feel as if you are
in complete control of your work and people around. It’s the sense of security and control
that helps in driving the entrepreneurial skills of a person.

16. Outline the Competencies of Late Shri Dhirubhai Ambani and give supportive information for
each competency.
17. Discuss the qualities of successful Entrepreneur with examples.

18. Distinguish, with example between an Entrepreneur and Manager.

19. Discuss the advantages of social enterprises which are entrepreneur, environment, and
society specific.
Social enterprises tend to operate with a purpose of creating value for the society and also
generate income (if not wealth). As a thumb rule, the solutions they offer are supposed to be
innovative, unique, people and environment friendly; Cost effectiveness is also a huge
consideration. All of these are challenges to the sustainability of social enterprises, but the ones
that are able to scale these are the ones that are able to create a huge impact! They are the
enterprises that are advantageous to the society, people and the environment.

Since social enterprises typically deal with people who live at the bottom of the pyramid,
therefore they are the ones who are benefited to benefit hugely from the former. In other words
social enterprises are beneficial to the poor, generally by providing them with a means of
livelihood.

Social enterprises do not work typically the way corporate setups or private firms work,
they offer flexible working environment which is as per the liking of many people groups.
This employment may be both short term and long term in nature or it may specially targeted to a
specific workgroup or a geographic community or to people with disabilities. Self Employed
Women’s Association (SEWA), for example, offers various kinds of assistance to self employed
poor women.

There are advantages of a social enterprise that are entrepreneur specific like:

1. Social entrepreneurs find it easier to raise capital. There are huge incentives and schemes from
the government for the same. since the investment industry here is ethical, it is easier to raise
capital at below market rates.
2. Marketing and promotion for these organisations is also very easy. Since a social problem is
being tackled with a solution, it is easier to attract attention of the people and media. The degree
of publicity often depends on the degree of uniqueness of the solution.
3. It is easier to garner support from likeminded individuals since there is a social side to the
enterprise. It is also easier to get people onboard at lower salaries than compared to other
industry.

Similarly there are advantages that are specific to the environment, society and the people
concerned. Some of them are as under:

1. Services in whichever section they may be offered are customized better to suit the needs of the
individual or the problem. This is also designed in harmony with all other systems like the
environment, society or the people.
2. Cost effectiveness is another advantage of a social enterprise. The solutions offered by these
organisations in the form of either products or services are reasonable than compared to the same
service provided by a profit making organisation. No wonder basc amenities like healthcare,
education etc have become very affordable to people world over with the help of these
institutions. Micro finance, for example, today caters not to the poor but to the poorest!

Although lots of organisations have also made corporate social responsibility an integral part of
their business functioning but not many actually mean to create a difference. It is just a means to
achieve more profits; there is an increasing need to watch out for the same and help and advocate
those who really aim to add value.
20. Discuss the major challenges faced by Family Businesses in India.
Challenges and problems faced by Indian Family Businesses
Lack of succession planning – Indian family businesses is facing major challenge
of succession planning. Succession means change from one generation to another.
It means change of leadership. It also involves set of emotional issues, accepting
new responsibilities, change of leadership issues. It is a revolution in which the
culture of the organization is restructured by the next generation, who brings with
them new ideas about how business should be run, how to develop new working
practices, new staff, new loyalties etc. So succession represents a major transition
with the fortunes of the firm resting on how successfully it is to be negotiated.
Many times due to lack of succession planning it breaks family business causing
to uncertainty among staff, suppliers, customers and family.
Sibling Rivalry – One of the greatest challenge family businesses faces is sibling
rivalry. This happens mainly because of sharing in the family business each
members get. This happens particularly when the business starts flourishing and
expanding over the period. Rivalry with each other often amounts to pull each
other down at the cost of the organizational resources. It leads to feeling of unjust
and undue favouritism. If rivalry is not resolved well in time, it may lead to split
in the family businesses e. g. The sibling rivalry of Ambani Brothers destroyed
their whole family business. According to Ravichandran (2009) family businesses
are found to split up like amoeba as they grow and very few of them survive
beyond three generations.
Women of the family joining the Family Businesses – Indian family businesses
are still male dominated. Now a day the role of women in the business and
employing women is largely accepted and encouraged in India. Whenever the
issue of women in the family businesses is raised she has to balance between her
duties at home and her duties at work. Now this huge source of talent should be
properly tapped by the family businesses.
Attracting and Retaining Non Family Employees – Non family employees may
also have difficulties in adjusting to the family business culture. They are used to
work in structured corporate environment. In family businesses there are limited
opportunities for growth and advancement because family employees occupy all
leadership position within the business.
Internal Family Conflicts – Many times family businesses are facing internal
conflicts due to varied interest of each family member, personal egos, personal
rivalries that disturbs business harmony. The interest of a family member may not
be aligned with the interest of the business or the interest of the entire family may
not be balanced with the interest of their business.
No separations of Emotions and business – It is very difficult task to separate
emotions from family business. If there is interference of emotions in business,
sound business decisions won’t be made and will disturb employees and
customers as well. There should be right balance of emotions based on the
dynamics of family business.
Biased Decision Making – In a family business majority decisions are taken
which are biased and not fair to non-family employees. Higher pay scale is given
 to family employees based on family relationship rather than on their abilities and
capabilities. Many times non family employees loose the motivation and interest
to work with the family business.
Raising Capital–There are limited options for raising funds from outside sources
to family businesses as compare to public limited companies. Due to limited
resources of raising funds, survival and healthy growth of the business can be
threatened.
Lack of training to family members – In many family businesses there is no
specific training is given to family members who join business as freshers.
Because of lack of training family members who join the business are not aware
of goals of the organization, expectations, growth and skills set required to run
and retain the business.
Lacks of talent – Entry in the family business is allowed to any family members,
even though he is not qualified or lacks the skills and abilities to run the business.
Lack of communication – There is always poor and miscommunication between
family members. As a result of this there is always mixing of family issues with
business issues. There should be proper communication channel between family
members who join the business and other family members.
Absence of written document – There is no any clear written document in many
family businesses which will define the role and responsibilities of each family
member, policies and business norms for family members. Issues like salaries,
share of profit, dividend, compensation and retirement plan, exit policy from the
business are always raised and creates conflict in the business due to lack of any
written documents. Ultimately it disturbs the family as well as business harmony.
21. Define Rural Entrepreneurship. Appreciate the need for and importance of developing
rural entrepreneurship in India.
Rural Entrepreneurship defines the entrepreneurship whose origin lies in the
rural areas whereas has a lot of potentials to undertake various business,
industry, agriculture and play a significant role in the economic growth of the
nation.
Importance of rural Entrepreneurship
A significant role has been playing by the rural entrepreneurship in the overall economic
development of a nation. Various opportunities comes with the growth as well as
development of rural industries as it facilitates self-employment which may lead to the
wider distribution of things in different economic and industrial activities which will be
helpful in the maximum and proper utilization of resources such as raw material and
labour which is available within the boundaries of the rural areas.

Here, we have jotted down some of the aspects that are related to the importance of rural
entrepreneurship which results in the enhancement of socio-economic conditions of a
nation and especially in remote areas. So, let us have a brief look at all these realms.
1) Proper Utilization of resources
 All the resources related to the business are available in the remote areas and the
rural entrepreneurship is associated with the proper and complete usage of all the
materials to maximize the profit. Directly and indirectly, this will be helpful for
making improvements in the economic and financial conditions of the rural areas.
 If the rural entrepreneurship does not exist, then it may lead to proper wattage of
all the available resources and this might be not in favour of any nation.
 When there is the proper utilization of all the resources by the rural entrepreneurs,
then this may lead to increase productivity. On the other side, when the labour
available in the rural areas gets some work through these types of
entrepreneurship, then it will also be helpful to eliminate unemployment.
Unemployed people get employed due to rural entrepreneurship.
2) Generation of employment opportunities
 A huge number of employment opportunities generated because of the rural
entrepreneurship for the people who are living in these areas. A basic problem of
any nation in today’s era is unemployment and underemployment. This type of
entrepreneurship gives ample new opportunities to people and effectively tackle
the problem in a very positive way.
 Rural industrialization is labour intensive and provides great dealings to all rural
people. People from rural areas migrate to the urban areas in search of a job and it
helps to decrease the migration by offering similar opportunities for growth in
their remote areas.
 Also See: Top Cheapest Business to Start from Home
3) Plug the gap
 There is always a huge gap between the remote areas and urban areas in terms of
better education as well as job opportunities for all. Rural Entrepreneurship helps
to fill the gap by providing a similar level of growth and development
opportunities for people in rural areas and compete with the urban areas too. It
maintains a gap between the income in remote and the urban areas.
4) Enhance traditional culture
 All type of historic and ancient artistic activities was originated from rural areas
and it is obvious that people have immense talent in terms of tradition and culture.
Rural entrepreneurship plays a vital role in the promotion of artistic activities and
helps them to create some brilliant handicraft pieces and earn their bread and
butter easily.
 In addition to this, the old-age artistic heritage is also conserved by protecting as
well as promoting the rural entrepreneurship.
5) Foster economic development
 The economic development of remote areas fosters with the help of rural
entrepreneurship. On the one hand, it keeps control over the migration from rural
areas to the urban areas and secondly, increases the level of growth in all the areas
equally. Differentiation between the areas such as slum, towns and cities, etc,
eliminates to a great extent. Apart from this, there is a proportion of social tension
and environmental pollution too.
6) Getting foreign exchanges
 The products manufactured in rural areas is exported to the other nations across
the world and in this way, they will earn foreign exchanges. It also enhances the
rural entrepreneurship and gives a great push to the way of success.
7) Consider the taste of consumers
 All the products manufactured by the rural entrepreneurship are according to the
taste of the customers and fulfil all the expectations what they want. Choice of
 each individual taken into consideration and so, they produce jewellery, sarees,
artistic materials that are produced serve all the requirements of the customers.
 Also See: Social Entrepreneurship: Definition and Examples
8) Entrepreneurial development
 In the remote areas, the development of entrepreneurship is enhancing by the rural
entrepreneurship. At the same token, it encourages the young generation and
talented people to come up with something new and carry out the entrepreneurial
tasks in the rural sector. Hence, it develops the rural areas also.

22. What are the major problems faced by Agri-business ventures? Give your suggestions’ to
improve Agri-business in the country.
Main Problems often faced by Indian Farmers
Insufficient Water Supply - Water availability in India is more than sufficient to irrigate all
cultivation areas; the problem is that we still have to find cheap and suitable solutions to utilise
such enormous water supplies. Due to several reasons, farmers either don’t receive the
appropriate amount of water or don’t get the supply on time; many farmers rely on rainwater for
irrigation.
Less Use of Modern Farming Equipment - In most areas, to date, farmers follow primitive
cultivation methods; traditionally-used plough and relevant native accessories continue to be
farmers’ preference. Despite no shortage of efficient equipment and machinery, there’s very little
use of modern equipment, majorly because most farmers don’t have lands huge enough to use
advanced instruments, heavy machinery.
Over Dependence on Traditional Crops - Indian farmers are growing rice and wheat for
centuries now in several regions. The excessive production of the two grains, many times lead to
the storage, sale problems and shortage of other farm products. “India is heading toward a fourth
record wheat harvest and near-record rice production for 2020-21” – the US Department of
Agriculture. Source Many farmers depending upon only these traditional crops indicates a lack of
an effective, nation-wide agriculture plan.
Poor Storage Facilities - In rural areas, storage facilities are either insufficient or completely
absent. In such a situation, farmers usually have no other option than selling their produce
immediately once it’s ready, at market prices that are often very low. They are far away from a
legitimate income.
Transportation Problems - Lack of cheap, efficient means of transportation is a big problem
widely seen in the Indian agriculture sector; small farmers still rely on bullock-carts for
transporting their produce. Moreover, lakhs of villages are connected with highways and market
centres with temporary (kutcha) roads that become muddy and useless in rains. Consequently,
farmers cannot deliver their produce to the central market and helplessly sell it in the local market
at low costs.
High Interest Rates - Thousands of farmers take their lives each year due to debt burden (having
other indirect causes interlinked). Unreasonably-high interest rates should be declared illegal, and
the government must take quick, strict, and appropriate action against greedy money lenders.
Another problem is small and marginal farmers have to go through cumbersome procedures (that
they are unaware of) to get institutional credit.
Government Schemes are yet to reach Small Farmers - In 2008, the government brought
agricultural debt-waiver and debt-relief scheme in effect to benefit over 36 million farmers. The
scheme also covered direct agricultural loan to stressed farmers. However, most of such welfare
programs and subsidies announced by both the central and state governments are yet to reach
poor farmers, while big/wealthy landlords are hugely benefited.
 Possible Solutions to These Problems:
Multiple Crops - For better yield and profitable results, farmers are advised to cultivate multiple
crops, including Apple, Pineapple, Papaya, Banana, Coconut, Ginger, Turmeric, and many others.
Modernisation in Agriculture - If we encourage youth for farming and related occupation, this
sector will definitely boom. They already have basic institutional education and knowledge; they
can learn and grow quickly. For instance, almost all of them have smartphones; by using
a modern agriculture app, they can perform well in farms. Besides, introducing modern
technology and passing advanced equipment to small farmers will help boost efficiency,
productivity, and quality.
Farmers’ Education is Vital - Many farmers are unaware of crop rotation. Education is pretty
much improved in urban areas, but the govt has overlooked the need for the same in rural areas,
particularly in the overall agriculture sector. This is the reason why farmers remain unaware of
several government-provided schemes and their benefits.
The Requirement for Crop Insurance - Crop insurance is essential but easy, quick settlement
of claims is vital. There’s a need for transparent index-based insurance that treats policyholders
equally within a defined geographical area. Index-based insurance system has low operational
and transnational costs and ensures quicker payouts.
Better Water Management - Water resources can be fully utilised through interstate
coordination on water management; water can easily be delivered to the areas where it is most
required. Connecting the rivers and constructing national waterways/channels will solve water
supply problems and improve irrigation facility, helping farmers in case monsoon fails.

23. “Developing countries need imitative rather than innovative entrepreneurs”. Comment.
There is a tremendous difference in nature and type of entrepreneurial
activities in developed and developing nations.
A particular level of economic development is needed for
development of entrepreneurship.
Attitude of society towards entrepreneurs also matters a lot for creation
of entrepreneurial spirit. More and more innovators are found in
advanced nations where majority of the population is literate; state of the
art infrastructural facilities are available; and means of communication,
information, transportation are well developed.
Advanced nations have a broad industrial base. They are in a position to
create their own research and development facilities. Their capital
markets are in a position to maintain continuous flow of resources for
industry.
With higher per capita income, purchasing power of people in these
nations is much higher. In such type of conducive environment,
more and more people are motivated to apply innovation in actual
practice. Such kinds of innovations are accepted by the society.
Entrepreneurial activities are not satisfactory in developing countries.
There are several barriers which retard the growth of
entrepreneurship.
Developing economies are characterized by high percentage of
illiteracy, lack of adequate infrastructural facilities, rigid, orthodox
people who are not open for new ideas, and lack of innovations.
In such a position, imitative type of entrepreneurship is found in such
economies and not of innovative type. Already developed foreign
technology is adopted by the imitative entrepreneurs. They do not
possess courage to innovate. They are not willing to innovate.
In this manner, an entrepreneur need not necessarily innovate, even if he/
she imitates any technique of production/marketing from a developed
country; he/
she is labeled as an entrepreneur. He/she is an entrepreneur as
long as he/she initiates a business, undertakes risk and bears
uncertainty.
In developing economies entrepreneurship is considered as a form of
labour which guides the rest of labour – what to do and how to get things
done. Schumpeter’s innovating entrepreneurs are very rare in
developing countries. According to Schumpeter, innovators need to be
encouraged in developing countries.
The transformation of an agrarian economy into an industrial economy
requires a great deal of efforts, tremendous changes and initiative.
Schumpeter’s theory puts too much emphasis on innovative functions. It
ignores risk taking function and organizing aspects of
entrepreneurship. An entrepreneur has to innovate and he/she has to
assemble resources and put them to optimum use. While combining
resources and putting them to optimum use, enough risk is involved. It is
quite difficult to imagine an enterprise without risk.
Schumpeter’s entrepreneur is a large scale businessman who creates
something new. But an entrepreneur cannot have large scale operations
from the very beginning.
Moreover, developing countries need more imitators than innovators.
There is a need of people who can adopt existing technology. They have
to launch on small scale due to imperfect market, shortage of capital, and
scarcity of skilled labour.
Schumpeter did not explain why some countries had more
entrepreneurial talent than others. He only pointed out that
entrepreneurs are not a class in themselves like capitalists and
workers. An individual is an entrepreneur only when he/she actually
carries out new combinations and ceases to be an entrepreneur the
moment he/she settles down to running the established business.
The entrepreneur leads the means of production into new channels.
 In addition to main entrepreneurial tasks, entrepreneurs from developing
countries are required to perform several additional functions which
loosen their entrepreneurial focus.
The absence of well-developed capital markets increases their business
risks which act as a major barrier for budding entrepreneurs.
Japanese entrepreneurs are imitative type of entrepreneurs. They can be
more appropriately described as creative imitators. They do not
intend to be innovative at the initial stages. Instead, they borrow
and improve upon the innovations made by others.
Majority of entrepreneurs in developing countries like India are more of
Fabian type. They are extremely cautious and traditional in their
approach and outlook. There are many business houses in India which
are unenthusiastic about expansion, diversification inspite of their
sound financial position, image and reputation. They usually restrict
themselves to few markets.

24. Indentify any two successful Women Entrepreneurs from India and discuss the problems
faced by them while establishing the venture.
25. Bring out the salient characteristics of Dr. Kiran Mazumdar-Shaw as a successful
entrepreneur.