Entrepreneurship development assignment

Entrepreneurship Development

Prepared by: Milan Padariya Page 1

INTRODUCTION:

An entrepreneur is one of the important segments of economic growth. Basically

he/she is a person responsible for setting up a business or an enterprise. In fact he/she

is one who has the initiative, skill for innovation and who looks for high

achievements. He/she is a catalytic agent of change and works for the good of people.

He/she puts up new green field projects that create wealth, open up many employment

opportunities and leads to the growth of other sectors.

The word „entrepreneur‟ is derived from the French verb “entreprendre”. It means “to

undertake”. In the early 16th century, the Frenchmen who organized and led military

expeditions were referred to as “entrepreneurs”, around 1700 A.D., the term was used

for architects and contractors of public works.

The term “entrepreneur” was applied to business initially by the French economist,

Caltillon, in the 18th century; designate a dealer who purchases the means of

production for combining them into marketable products. Another Frenchman J.B.

Say, expanded Cantillon‟s ideas and conceptualized the entrepreneur as an organizer

of a business firm, central to its distributive and production functions. Beyond

stressing the entrepreneur‟s importance to the business, Say did little with his

entrepreneurial analysis.

New Concept of Entrepreneur – The term “entrepreneur” has been defined as one who

detects and evaluates a new situation in his environment and directs the making of

such adjustments in the economic system as he/she deems necessary. He/she

conceives of an industrial enterprise for the purpose, displays considerable initiative,

grit and determination in bringing his project to fruition and in this process, performs

one or more of him/her following.

• Perceives opportunities for profitable investment

• Explores the prospects of starting such a manufacturing enterprise

• Obtains necessary industrial licenses

• Arranges initial capital

• Provides personal guarantees to the financial institutions

• Promises to meet the shortfalls in the capital and

• Supplies technical know-how.



CHARACTERISTICS OF AN ENTREPRENEUR:

A successful entrepreneur must be a person with technical competence,

initiative, good judgement, intelligence, leadership qualities, self confidence, energy,

attitude, creativeness, fairness, honesty, tactfulness and emotional stability.

Mental ability: Mental ability consists of intelligence and creative thinking. An

entrepreneur must be reasonably intelligent and should have creative thinking and

must be able to engage in the analysis of various problems and situations in order to

deal with them. The entrepreneur should anticipate changes and must be able to study

the various situation under which decision have to be made.

Clear objectives: An entrepreneur should have a clear objectives as to the exact

nature of the goods to be produced and subsidiary activitie to be undertaken. A

successful entrepreneur may also have the objective to establish the products, to make

profit or to render social service.

Business secrecy: An entrepreneur must be able to guard business secrets. Leakage of

business secrets to trade competitors is a serious matter which should be carefully

guarded against by an entrepreneur. An entrepreneur should be able to make a proper

selection of his assistants.

Human relations ability: The most important personality traits contributing to the

success of an entrepreneur are emotional stability, personal relations, consideration

and tactfulness. An entrepreneur must maintain good relations with his customers if

he is to establish relations that will encourage them to continue to patronize his

business. He must also maintain good relations with his employees if he is to motivate

them to perform their jobs at a high level of efficiency. An entrepreneur who

maintains good human relations with customers, employees, suppliers, creditors and

the community is much more likely to succeed in his business than the individual who

does not practice good human relations. Human relations ability can also be referred

to as tactfulness.

Communication ability: Communication ability is the ability to communicate

effectively. Good communication also means that both the sender and the receiver

understand each other and are being understood. An entrepreneur who can effectively

communicate with customers, employees, suppliers and creditors will be more likely

to succeed than the entrepreneur who does not.

Technical knowledge: An entrepreneur must have a reasonable level of technical

knowledge. Technical knowledge is the one ability that most people are able to

acquire if they try hard enough.

An entrepreneur who has a high level of administrative ability, mental ability, human

relation ability, communication ability and technical knowledge stands a much better

chance of success than his counterpart who possesses low levels of these basic

qualities.



Some key characteristics of a successful entrepreneur are:

Motivator: An entrepreneur must build a team, keep it motivated and provide an

environment for individual growth and career development.

Self confidence: Entrepreneurs must have belief in themselves and the ability to

achieve their goals.

Long term involvement: An entrepreneur must be committed to the project with a

time horizon of five to seven years. No ninety- day wonders are allowed.

High energy level: Success of an entrepreneur demands the ability to work long

hours for sustained periods of time.

ENTREP

RENEUR

ADMINISTRATI

VE ABILITY ORGANISATIO

N SKILL

INTELLIGENC

E

CREATIVITY

INNOVATION

CLEAR

OBJECTIVE BUSINESS

SECRECY

SOUND

KNOWLEDGE

EMOTIONAL

STABILITY

PUBLIC

RELATIONS

EFFECTIVE

COMMUNICATI

ON

TECHNICAL

KNOWLEDGE



Persistent problem solver: An entrepreneur must have an intense desire to complete

a task or solve a problem. Creativity is an essential ingredient.

Initiative: An entrepreneur must have initiative accepting personal responsibility for

actions and above all make good use of resource.

Goal setter: An entrepreneur must be able to set challenging but realistic goals.

Modern risk taker: An entrepreneur must be a moderate risk taker and learn from

any failures.

These personal traits go a long way in making an entrepreneur a successful

man or woman.

CLASSIFICATION:

The entrepreneur have been broadly classified according to the types of business,

use of professional skill, motivation, growth and stages of development are discussed below

Entrepreneur according to the type of business:

Business entrepreneur: Business entrepreneurs are individuals who conceive an idea

for a new product or service and then create a business to materialize their idea into

reality.

Trading entrepreneur: Trading entrepreneur is one who undertakes trading

activities and is not concerned with the manufacturing work.

Industrial entrepreneur: Industrial entrepreneur is essentially a manufacturer who

identifies the potential needs of customers and tailors a product or service to meet the

marketing needs.

Corporate entrepreneur: Corporate entrepreneur is a person who demonstrates his

innovative skill in organizing and managing corporate undertaking.

Agricultural entrepreneur: Agricultural entrepreneurs are those entrepreneurs who

undertake agricultural activities as raising and marketing of crops, fertilizers and

other inputs of agriculture.

Entrepreneur in technology:



Technical entrepreneur: A technical entrepreneur is essentially compared to a

“craftman”.He concentrates more on production than on marketing. He demonstrates

his innovative capabilities in matter of production of goods and rendering of services.

Non- technical entrepreneur: Non- technical entrepreneurs are those who are not

concerned with the technical aspects of the product in which they deal. They are

concerned only with developing alternative marketing and distribution strategies to

promote their business.

Professional entrepreneur: Professional entrepreneur is a person who is interested is

establishing a business but does not have interest in managing or operating it once it

is established. Such an entrepreneur is dynamic and he conceive new ideas to develop

alternative projects.

Entrepreneur and Motivation:

Pure Entrepreneur: A pure entrepreneur is an individual who is motivated by

psychological and economic rewards.

Induced entrepreneur: Induced entrepreneur is one who is induced to take up an

entrepreneurial task due to the policy measures of the government that provides

assistance, incentives, concessions and necessary overhead facilities to start a venture.

Motivated entrepreneur: New entrepreneurs are motivated by the desire for self-

fulfillment.

Spontaneous entrepreneur: These entrepreneurs start their business by their natural

talents.

Growth and entrepreneur:

Growth entrepreneur: Growth entrepreneurs are those who necessarily take up a

high growth industry which has substantial growth prospects.

Super growth entrepreneur: Super growth entrepreneurs are those who have shown

enormous growth of performance in their venture.



Entrepreneur and stages of development

First generation entrepreneur: A first generation entrepreneur is one who starts an

industrial unit by innovative skill. He is essentially an innovator, combining different

technologies to produce a marketable product or service.

Classical entrepreneur: A classical entrepreneur is one who is concerned with the

customer and marketing needs through the development of a self-supporting venture.

This is the basic of Entrepreneurship. Now Problem is Who is the best person for

Interview…

Generally two types of the Entrepreneur I can select…

1. Local Entrepreneur

2. Very Famous Entrepreneur

But I selected Local Entrepreneur…

Why???

The entire famous entrepreneurs are first Local Entrepreneur after that they became

very famous.

So Study of Local Entrepreneur is good for me.

I Selected 4 Stage of Entrepreneurship and Formed Questions on it.

1. The entrepreneur before starting a venture

2. The Entrepreneur at the time of starting the business

3. The entrepreneur as he or she grew the venture

4. The entrepreneur today and tomorrow

Before that I would like to introduce a youth Entrepreneur Mr. Vipul Yadav…

Mr. Vipul Yadav completed his B.Sc. in Information Technology and started his own

business. He initially started with small web solution forum called Depasser Infotech

Pvt Ltd.

Mr. Vipul Yadav has 5 other solution forum powered by Depasser Infotech.



These Solutions are as follow…

1. Herd MS

2. Google Funda

3. Edu Edge

4. Financial Virtue

5. Peeping Kid

Mr. Vipul Yadav also started 4 E-Commerce websites including,

1. www.giftpunch.com

2. www.teemper.com

3. www.giftyaar.com

4. www.thedifferentstore.com

Before Discuss Questions and Answer I would like to brief the businesses associated

with Mr. Vipul Yadav.

Depasser Infotech Pvt Ltd.

It is related to web solution. Depasser provided web based solution in India.

Official Website: http://www.depasserinfotech.com/

About Depasser:

We are a small but diverse bunch of web developers, graphic designers

and creative writers happy to design websites and develop web

applications. We make good conversations too!

http://www.giftpunch.com/

http://www.teemper.com/

http://www.giftyaar.com/

http://www.thedifferentstore.com/

http://www.depasserinfotech.com/



Web-Design:

A good business, needs and equally good face. Check out the faces we've

given to some businesses. Psst.. We use CSS3, JQuery, HTML5, PHP.

Magento, Drupal.

Web Application:

Managing data and multiple businesses tasks can get difficult. We make it

easy for you to manage them! And yes, we work on PHP, Ruby, Python.



On other hand Depasser Infotech powers other 5 web solution/web application

1. Google Funda:

Official Website: http://www.googlefunda.com/

http://www.googlefunda.com/



2. Financial Virtue

Official Website: http://www.financialvirtue.com/

Financial Virtue

We are independently spirited, fiercely unconventional people who believe in doing

things differently. We value, "Values & Virtue".

FINANCIAL VIRTUE is a Financial Advisory and Distribution firm launched in

2003 with the aim of making investing simpler, more understandable and profitable,

leading to true Financial Freedom.

We at FINANCIAL VIRTUE have well qualified, trained and experienced team of

associate partners, professionals and staffs from the fields of Accounts & Taxation,

Law, Financial Planning, Securities & Capital Market, Banking and Insurance (both

Life and Non Life).

We offer personalised advisory services for saving & investment, financial risk

management, tax, Law & Financial Planning, to individual investors, corporate

houses, institutional investors, Non-Resident Indians (NRIs) and High Networth

Individuals, among others. We offer complete range of financial products and

services.

We have expertise in analyzing different financial products; we carry out in-depth

study considering various parameters on a regular basis in order to satisfy and achieve

any kind of financial goal and need. We help in identifying & understanding ones

personalised needs and also in developing a portfolio across different asset classes

http://www.financialvirtue.com/



commensurate to his needs. Our experts will give you a feel on the various asset

classes and explain to you the risk associated with each in a simple and lucid manner.

Our advisory services are backed by periodic valuation reports of different asset class

and regular relevant information through newsletters, mailers, e-mails, sms's, etc.

At FINANCIAL VIRTUE our prime concern is to help our client attain peace of mind

on the financial front. We follow a philosophy which focuses on doing the right things

rather than merely doing things right, we also believe that monetary rewards do not

take precedence over an ethical approach to our work.

OUR VISION

To become a credible financial services company, continuously educating our client

and assisting them in creating abundant wealth.

OUR MISSION

In the spirit of fulfilling our Vision we strive to:

Serve our client with high ethical standards;

Provide quality service, not just restricted to genuine advice but creating value too,

hence orchestrating customer delight.

Respect each customer by our deeds & not just by words, thereby creating

reputation built on performance.

Provide 360o (degree) solutions to each customer to fulfill their today's needs and

tomorrow's dreams, above all ensuring them a sense of safety, security & trust;

Compensate our Partners, Associates and Employees with fair remunerations and

meaningful benefits while providing them with the knowledge & tools needed to

encourage personal & professional growth.



3. Peeping Kid

Official Website: http://www.peepingkid.com/

http://www.peepingkid.com/





4. Edu Edge

Official Website: http://www.eduedgeindia.com/

http://www.eduedgeindia.com/



5. Herd MS

Official Website: http://www.herdms.com/

http://www.herdms.com/



Also Mr. Vipul Yadav designed own 4 websites…

1. Gift Punch

Official Website: http://www.giftpunch.com/

2. Teemper Lifestyle

Official Website: http://www.teemper.com/

http://www.giftpunch.com/

http://www.teemper.com/



3. The Different Store

Official Website: http://www.thedifferentstore.com/

http://www.thedifferentstore.com/



4. Gift Yaar

Official Website: http://www.giftyaar.com/

http://www.giftyaar.com/



Now discuss the questions and answers. I asked total 24 questions to Mr. Vipul Yadav

as per the stage of Entrepreneurship.

A. The entrepreneur before starting a venture

5 questions were asked under this stage.

1. What is your education background?

ANS: I have completed my B.Sc. in Information Technology in 2009 from

Mumbai University, Maharashtra.

2. What previous work experience do you have before starting the venture?

ANS: Actually I am new in this. No previous Experience I had, but I have idea

about the IT sector and Found good Scope in this. And also during my graduation

I worked in one mobile shop. My job was to repair damaged mobile. As per my

thinking it is not necessary to having such an experience to start own business.

Just you have gut feelings and dedication.

3. Did you have any role models when growing up?

ANS: If you asking me about very famous personality as a role model then No. I

have no any specific role model to follow. But if your meaning is of familiar

person as role model then Yes, My Idol my teacher is my role model.

4. Did you do entrepreneurial things as a youth?

ANS: I am young today; I am just 26 years old. So whatever I did that are during

my youth. Actually I liked mobile phone very much when I was Child and

thinking about mobile every time. In fact I want to something different in

telecommunication software.

5. When did you know you wanted to be an entrepreneur?

ANS: During my graduation. At that time I did not know the term “Entrepreneur”.

Only I knew is wanted to become different.



B. The Entrepreneur at the time of starting the business

8 Question were asked in this stage.

1. What was your primary motivation for starting a business? What were

the factors that led you to start the venture?

ANS: My Primary motivation is my Interest in IT sector. I want to be achieving

some different stage in IT sector.

Factors are not fixed. If you want to be a good entrepreneur then don‟t depend on

some selected factors.

At the start of venture I focused on some Factors like:

Interest

Population of India

Mobile Users in India

Competitors

No of MNCs

One thing I want to tell you is about MNCs

In Indian market there are thousands of MNCs running this is not good thing

about India. One story I want to tell you but I will not declare the name of person

and name of company.

Minister of Telecommunication in India collaborate with one Indian Company for

Land line. Only cost of 150 Rs Company provided phones. At that time someone

not earn commission so he withdrawn the contract from Indian Company and gave

the contract to Foreign Company. That company charged 650 Rs per one piece.

That was not Ethical thing…

So I want to produce some cheaper but quality products for India.

2. What were your goals at the time you started the venture?

ANS: My primary goal was Cheaper and Quality product. Give the web solution

to the companies. And other goal was to start the Affordable and unique E-

commerce hub.

3. What sort of beliefs did you have (eg. About employees, partners, banks,

etc)?



ANS: About Employees: Self-employment is best in business. But for more

production and service employees are required but only thing is dedication.

Partner should be trust worthy and hard working. If you climb four steps then your

partner should there at fifth step to welcome you.

According to me banks are your official partner. If you want to get good loan from

bank then your business plan should be perfect and most profitable.

My meaning is not that you make fake profitable business plan.

4. Did you establish a lifestyle business, a rapid growth business, or what?,

Did your growth orientation change over time?

ANS: Yes, I established rapid growth business. Yes of course my growth

orientation changes over time. Every business should have this type of

philosophy.

5. What sort of resources (not just financial) did you have when you started

the venture? What sort of network did you have? Were there any special

creative things you did to come up with the needed resources?

ANS: Besides the financial thing I needed some good partner. Which I discussed

in earlier question. In this field network is necessary. I have network of family and

friend initially. But I also focused on some business enterprises. Yes I came up

with some creative thing and you can see creativity from our home page of

Depasser Infotech. Also you can see some creative product that we sell under the

our E-Commerce website.

6. How concerned were you with control when starting the venture? Explore

the entrepreneur’s need for control (of the venture, of people, of decision

making)

ANS: It is good question.

Of Course Control is necessary in any venture or project. First I decided to control

my web solution forum alone but after started E-Commerce I just worried about

controlling so I was going for searching some employees and Partner. I am very

weak in marketing so I really need marketing people for my business even at this

time I also need.

In E-Commerce hub I needed some people who are very good in Logistic or

Transportation.

7. Did you write a business plan?

ANS: No, I did not write business plan. In fact I was not aware with some

management and finance philosophy. But in my future project and business



planning I will go through business plan or someone will help me in this. As a

management student you can join me and do financial planning for me.

8. How long was a typical work day and work week when you first started

your venture?

ANS: At the starting of venture I did lots of hard work. Even present days I do

hard work. But it is necessary to do hard work at the time of starting. Not just hard

work but sustainable hard work.

Only thing is believe in believe in hard work.



C. The entrepreneur as he or she grew the venture

6 questions were asked in this stage:

1. How have your goals and values changed since starting the venture?

ANS: General Rule in business in you should not change your goal and value in

entire life of your business. But I think in different way.

You can change your goal as per the generation and scenario changed. You can

change values of your business as per societal value changes.

2. Did your risk orientation change as the venture grew?

ANS: Yes, I feel more risk now than I felt when I started this journey. This is

because of Competition increase in IT sector. And as per my thinking India is the

best place for the business because of population.

3. Did the typical work week change as the venture grew?

ANS: Yes of course as time changes you should change the pattern of the work

and time of work.

4. Did the assumptions you made when you first started the business prove

to be wrong?

ANS: No, I did hard work behind my project and now I feel that no assumption of

mine is wrong.

5. What key mistakes did you make along the way?

ANS: I did only one mistake and that is selection of partner. I will tell you my

partner is not fraud but he has no faith on me and my work.

6. Were there some critical times when the business nearly failed?

ANS: Yes, When no one was with me and when my partner left me. But I did not

lose my courage.



D. The entrepreneur today and tomorrow

4 questions were asked.

1. What would you do differently if you had to do it all over again?

ANS: Only this is make combination of two mobile and make hybrid from these.

Shocked?

Just joking.

When I was started this venture I thought about that. One thing I want to do is

Purchase the hardware from the china and Installed software that I make and form

different and quality product which will be different from other products.

2. What key personal characteristics do you see in yourself that were

especially important for your success?

ANS: Very Interesting question and funny also.

Funny in the sense you tell me that praise yourself but in indirect way.

Hard working nature

Mental Ability

Dedication

Creativity

Interpersonal Skills

Knowledge about the business

Competitor watch

Self Confidence

Technical Knowledge

And of course Idea Generation

3. What are your plans for the future?

ANS: In fact so many plans are running here and there in my mind. One is

merging the hardware (Imported) and software (My own) and making unique

mobile which will cheaper but with quality. Develop my own software and form

E-Commerce hub.



4. What advice based on your experience would you give to others?

ANS: This is very tough question.

Advises are:

Put all your effort on your own project or business

Pay full attention in financial value

Make society feel proud

Give your full dedication

Understand the value of your customer and employees

Don‟t Forget Society

That‟s it…….

Me: Thank you Sir

Mr. Vipul Yadav: You are most welcome.

Entrepreneurship development assignment

Business

entrepreneurship

maintain good

human relations

web solution

high level

official website

vipul yadav

technical