Maharaja Surajmal Institute Affiliated to GGSIPU Delhi Course Bachelor of Business Administration Subject Module on Entrepreneurship Development BBA The study material of this subject has been compiled from various online sources websites books articles and is only meant for reference purpose for students only and is not meant for any kind of commercial activity V semester Credit 4 July 2021 Module compiled by Prof Jagbir Ahlawat Dr Monika Tushir Dr Parul Deshwal Dr Anshu Lochab 1 GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY DELHI BACHELOR OF BUSINESS ADMINISTRATION BBA L 4 T 0 Credits 4 External Marks 75 BBA 307 Entrepreneurship Development Objective It provides exposure to the students to the entrepreneurial cultural and industrial growth so as to prepare them to set up and manage their own small units Course Contents Unit I Introduction The Entrepreneur Definition Emergence of Entrepreneurial Class Theories of Entrepreneurship Unit II Promotion of a Venture Opportunity Analysis External Environmental Analysis Economic Social and Technological Competitive factors Legal requirements of establishment of a new unit and Raising of Funds Venture Capital Sources and Documentation Required Forms of Ownership Unit III Entrepreneurial Behaviour Innovation and Entrepreneur Entrepreneurial Psycho theories Social responsibility Entrepreneurial Development Programmes Achievements Role of Government in Organizing EDP s Critical Evaluation EDP EDP Their Role 14 Hours Behaviour and Relevance 14 Hours 14 Hours 14 Hours Unit IV Role of Entrepreneur Role of an Entrepreneur in Economic Growth as an Innovator Generation of Employment Opportunities Complimenting and Supplementing Economic Growth Bringing about Social Stability and Balanced Regional Development of Industries Role in Export Promotion and Import Substitution Forex Earnings 2 CONTENTS Unit Name Chapter 1 Entrepreneur meaning and importance Chapter 2 Theories of Entrepreneurs Page Number 4 16 17 29 II Chapter 3 Entrepreneurial Environmental Analysis Chapter 4 Venture Capital 30 40 41 51 Chapter 5 Innovation and Entrepreneur 52 88 Chapter 6 Entrepreneurial Development Programme Chapter 7 Role of Entrepreneur in the economic growth 89 92 93 119 Unit No I III IV Suggested Readings 1 Charantimath 8th Ed 2014 Entrepreneurship Development and Small Business Enterprise Education 2 Bamford C E In Ed 2015 Entrepreneurship A Small Business Approach McGraw Hill 3 Balaraju Theduri 2012 Entrepreneurship Development An Analytical Study Akansha House 4 David Otes 2014 A Guide to Entrepreneurship Jaico Books Publishing House Delhi 5 Kaulgud Aruna 2012 Entrepreneurship Management Vikas Publishing House Delhi 6 Chhabra T N 2014 Entrepreneurship Development Sun India 3 Education Publishing Unit 1 Chapter 1 ENTREPRENEUR MEANING AND IMPORTANCE Entrepreneur Meaning and Characteristics The word Entrepreneur is derived from the French word Entreprendre means to undertake There are two popular beliefs about who the person was who used the term entrepreneur in economics It is believed that the word Entrepreneur was first used by the Irish banker operating in Franco Ricardo Cantillon Another belief is that the French economist J B Say 1824 was first used the word entrepreneur in economics It is derived from the French word Entreprendre means to undertake Oxford English dictionary has adopted this word in 1897 and meant as director or manager of a public musical institution The term goes through evolutionary changes of meaning Till now there is no consensual concept of entrepreneurs In the early 16th century it was applied to those who were engaged in military expeditions It was extended to cover civil engineering activities Such as construction and fortification in the 17th century It was only at the beginning of the 18th century that the word was used to refer to economic aspects In this way the evolution of the concept of an entrepreneur is considered over more than four centuries Since then the term entrepreneur is used in various ways and various views These views are broadly classified into three groups namely risk bearer organizer and innovator Entrepreneur as a Risk Bearer Richard Cantillon an Irish man living in France was the first who introduced the term entrepreneur and his unique risk bearing function in economics in the early 18th century He defined an entrepreneur as an agent who buys factors of production at certain prices to combine them into a product to sell it at uncertain prices in the future He illustrated a farmer who pays out contractual incomes which are certain to the landlords and laborers and sells at prices that are uncertain He further states that so do merchants also who make certain payments in expectation of uncertain receipts Thus they too are risk bearing agents of production Knight also described an entrepreneur to be a specialized group of persons who bear uncertainty Uncertainty is defined as a risk that cannot be insured against and is incalculable He thus distinguishes between ordinary risk and uncertainty A risk can be reduced through the insurance principle where the distribution of the outcome in a group of instances is known On the contrary uncertainty is the risk that cannot be calculated The entrepreneur according to Knight is the economic functionary who undertakes such responsibility of uncertainty which by its very nature cannot be insured nor capitalized nor salaried too Entrepreneur as Organizer Jean Baptiste Say an aristocratic industrialist with his unpleasant practical experiences developed the concept of entrepreneur a little further which survived for almost two centuries According to him an entrepreneur combines the land of one the labor of another and the capital of yet another and thus produces a product By selling the product in the market he pays interest oh capital rent on land and wages to laborers and what remains is his her profit Thus 4 Say has made a clear distinction between the role of the capitalist as a financer and the entrepreneur as an organizer He further elaborates that in the course of undertaking several complex operations like obstacles to be surmounted anxieties to be suppressed misfortunes to be repaired and expedients to be devised three more implicit factors are deemed to be essential These are Moral qualities for work judgment perseverance and a piece of knowledge about the business world Command over enough capital and Uncertainty of profits Marshall also advocated the significance
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