• Entrepreneurship and E-Busine.

ss (MU) 1-3 Introduction

Fig. 1.1.1 : Functions of Entrepreneur

1.1.2 Entrepreneu rship

• Definition of Entrepreneurshi p: Entrepreneurshi p is the process of creating a new enterprise

with an aim of making profit.

• Entrepreneurship refers to a process of actions an entrepreneur undertakes to establish his

business.

• Benjamin Higgins has defined entrepreneurshi p as "the function of foreseeing investment

and production opportunity, organizing an enterprise to undertake a new productio n
process, raising capital, hiring labour, arranging for the supply of raw materials, and selection
to managers for the day-to- day operation of the enterprise".
•
Prof. Roa and Mehta defined Entrepreneurshi p as "Entrepreneurs hip can be described as
creative and innovative response to the environment."

1.2 Evolution of Entreprene urship

• First stage of entrepreneurship is Ancient Perio . . .
a new enterpnse with . f . d. Entrepreneursh ip 1s the process of creating
an aim o making profit.
• Entrepreneurship refers to a process of ct·
bu 1 ~ a tons an ent
Marco Polo has s d repreneur undertakes to establish his
igne an agreement With the c
iJ £ntrc:preneursh\p and £-Business (MU) l- 10

4. Orone Entrepreneurs -
ch,tMW 111 t 1tell' 1HJ SI ne:55 t:VPt1 J • 1 hul,
fu se to ni nkc ,1nY • I1 It
i hese entrepreneurs are ones who re 't' no ,n,1tt f•r whnt. I lwy a 11 Ji•..id
• 11
j us t do not c. .,ing
< Y lo /';., t 1)1 J t
me ans \ost to business. So these people . c"istiug production 11wthod:;
s in th Clf ,. · • ltJ p1Q<1
d to make change
suffer \asses but are not rea Y . ,r l,1Ck of prope r 111l1·.t:,t, 11< tu, :; rl,, m.1rl
k Of skilkd 1a 11' ' 11 111
1

Because of positive of funds, lac · less roncluCJ VI' to tlw Pm;1 g,

1 111 ,
• I ed economics are . . • •JI 5. lfa , d W◄
conditions in underdeve op . trcprerwurs.
rs es ec1ally th e innovative en . An , 111, t
entrepreneu P ti cs 11011 inn ova tt vC' cntn •1Jr<•t1c'u1:; lil~t' ti sLn1t, ,j 1
. nd underd eveloped• econon lly noticl'd. EntrcprC1 ncurs 111 sueh n)gio11s Ji 1, 1101
lfl
• ln developing a lJ I I ::I !j I Jf I
. bians and drones are genera
im1tat1ve, Fa . . ho copy th e innovations mad e by thl' 11inovativt1 r, , AbWty l<
innovators but are imitators w
entrepreneurs of the developed countries. 'J h1~ Is th
• . . requires
As imitation . lesser funds than innovation therefore it is considen•tl th,ll dPwto 1,11111t, oJ ny IJ
countries have more of imitative entrepreneurs. 'J'lw1, 11)1,

7. JfJghJy ()
1.6 Characteristics and Qualities of Successful Entrepreneurs
An ' '!Jll 1•1
Personality of the entrepreneurship plays a very important role in success of his busuw..,s. < OJ1f1d,•n1

Following are some of the qualities required to be a good entrepreneur. to run hi·
1. Future Vision

The entrepreneur should have a good foresight about future market situation . 'J'h<' PIJ11nlng I·
entrepreneur also has knowledge about external business envi ronment. With out a vision for i:, aJJ k,• :i • 1
the future of his venture entrepreneur Id · b . . 9.
. , wou Just e working aimlessly witho ut n•:1cl1i111{ :my SP.It' (.;011ti
pomt of success.
An 1)nf f t:J)i ,
2. Innovation
hh/h, .,. coa
Innovation refers to generatin a n . . . 10. Lc•ad,•r'shJfJ
profit In t0 d . g ew idea with whi ch we can start a busi ,wss and 1•a1n
ay's highly competitive b · .
survive and USmess environment, it is on ly tlw mnov,1tor.., who A til ngJ,• ,, 1, 1
success. Continuous innov . .
Innovation can b . ation ts the only road to s uccess 111 tlw gl ohal ,•rnnomy. p,•opt,, t,, d
e m the form of a prod .
3. Co uct or It can be also in th e form of prore-;s. c11r,•c t ion to
mmunlcation SkUJs
W1>1 k l111l Ind ,
An entrepreneur needs t 11 ,
0
communicate · h d " 1 ,, i, Qu lc k Uc.•,1)1
cred·
itors, employees etc wit 1fferent peo pl e li ke customer..,, . , upp 11
very · ·, he must be abJ . . . •I ii J) Tl11l I II
important that the s d e to express hi s ideas and stra t(•gi<'s c•ll1•ct1 v1 Y
en er and receive Of h I . ·tly Ill 1k111lj
r t e message are being un d,•rstoo<l JW 1 1 t
liJghly 1
 • Entrepre~;> a:: ER I JI

•· TecbnicaJ Kaowjedge
An entreprene-... r sf. ould have s-....ffia:eo• ~ ~ ' :.i~ ~ g,e a ~ 1 ti::,.,
r,.. rl. :z.ru a d t: . plan
to produce. An entrepreneur st.ouM be upd~!ed • tf:e z.te.:...., ~ , 9zy 'J be n P"-~ w th

the market.

s. Hard Work
An entrepreneur sh~uld he ready to v. urk ~rd! • m~ -e cecessa:ry • r a oew venture ts
started. An entreprena.r r..!25 to work fo: long f:: ~ Mr;y tJ 4:InL"'S he t..as w t-_andl~ the matn

areas of business mdepe:- .rlen'!ly.

6. Ability to take risk

This
15
the firs: and foremost ua: Gf eptrepre= - e;-_rs,.. p. nte e ... trep "e eur rs true nsk bearer
of anJ business. s~rm:g .acy t.~.es-s ~vu es a ro:~cterabJ~ ammm· of nsk of failure.
Therefore. the co... rage a:::~ capa:: -i to ~kc th e sa:d nsk are ene -- tt;il for an entrepreneur.

i. Highly Optimistic
An entrepreneur st.rs .... d a.k,.ays rt~nk pos • vely. He/snf:! sho~Id always he hopeful a nd
confiden: a~t the a:arket s ruau§..115 e-... ::n in fa J_:.re tJmes. Thl5 positive att:Jtude helps him
co run hIS/ber bustr:.es:s su~Il,.

8. Planner
'
Planning IS also o"!le of tl:e ur~r....a:c: fJnrtl!J:tS nf an entrepreneur. A company v11thout a plan
IS alike a ship"" :±au! a dJrectim11. B g tNr.s nes-se5 cannot operate WJthout proper plan ning.

9. Self Confidence

An entreprer.e@' st.rru d have s;e '-cur.:Ji.Cl'.encP- He/&hP- shrn•ld

uu have posJ' huve d estres t o ach 1eve
.
his/her goals s~d:l se 'con:firle1!.re kee-r.- ~
-r' t: m s:rrong . ..I motivated
ar.w •
to face various obstacles.
10. leadership

A smgie pers:o -:u:anr~ perlmm alhh"'- ta-ks

_, and ~ p r.
.:Te.ore . •
•t IS mmportant to bring some more
peop1e to do t TI:..s ttakes learler1h
directzon to the df, p veiy important as a leader provides a required
rms of tJ:,- ernpw-1ees \V !h
worktng ru!eperuf "· out prnper ~eadersh1p, everyone would be
er. ""IV, :t;, 1.1--t am Wll.fig U::e d.f'fi rerl re.suits.
11. Quick Ded.tion Maker

The entreprene a
be qJ d~ derumn malr.er Taki
ma1ctng ca lead w ~ ! good b . ng too much time m decision
r...f'!; oppartun tie
:1... hJ :h
iugh&y CO?npetit1~e et" -1.rn me t. ., w c.: wouJd be costly m today's
 1. Focus on Efficiency and Ex~cution:

• 'M~Q~.
1
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g,~
Iii"I
~"are l'..esp6nSible for running the day-to-day operations of an existing
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depdrttner'rt. Their goal iS to optimize processes and ensure smooth, efficient

• They work within established frameworks and systems to achieve operational g
2. Implementation and Supervision: .

• Managers imp/Jnent the strategies anQ policies developed by entrepreneurs or

management. They oversee employees, projects, and resources to ensure that
met.

3. Risk Management: ', ' ',

• While managers also deal ;ith risks, 1."::,r focus is more.on managi

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i :--Risrk Management:

• Wh il,e m ana - . - I - . · .
. . .. •. . . gers ~ so deal wi th risks, their focus is more on managing and miti
wit hin ex1st ingi structures rathe r tl, an t· k.
_ • • · , ' '
1
a mg on new ventures.
l4t' , Re~Qurc~ Maragement:

• They are respo nsible fo r ma n1iging. budgets, schedu_les, an.d p~rsonnel. They e
_j
resou rces are u sed effectivel y and that organizational policies are followed.
1

' . nd St'abmty;, I 111

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. -_ g -ers aim to ma'intain sfability and consistency within their area of respo
work to ensure that processes are e.fficient and Qutcomes are predictable.

I' ' entr,eRrrenreu 'r a ~~ \ risionri3(if rrl ·11ho c;reate and launch new ven
1

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nnov~ tiqn, man gers

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vel ,ocus on c::xecuting strategies, o ti

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 enterpreneursh1p evoIutIon wtth short a

Here,·s a brief overview of the evolution of entrepreneurship: ·

I ,

1. Early Trade and Craftsmanship:

• Early entrepreneurs were traders and craftsmen who started small businesses to meet f
needs and barter goods.

2. lndustria1I Revolution (18th-19th Century):

• Innovation in technology and manufacturing led to the rise of larger enterprises.

Entrepreneurs began to scale up operations, focusing on mass production and efficiency.

3. Post-World War II Era:

• The expansion of consumer markets and technological advancements spurred the growth
of new industries. Entrepreneurs beg -J., o focus on consumer goods and services.

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 4 . Dot-com Boom I '191 . ·. _ .. . , :, ,
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. . .· w business opportunities, leading to

-=comm · -. .· . ntures.

Oii~~lltal Age {2000s-Pire,sent};

11 .. _111 11:t ~
_ " , · leverage 9fubaJ mark,ets and digital technologies, enabling
-rckly arrd ,o perate intem-atLonally.
· ·_·. ·... · -- _._". ·.• -- .· . · Entrepr:eneurship:
! !I I • •

;1i. 11, 11 .. •

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. . · on,,creating social ,impact and sustainability. Entre
.•. •

- 1n · re~singfy, addressJng soc~al chaflenges· and environmental concern

solutions.
...

. ; ' {his evollltl I

1
• , rship has adaPted to techno
11 "'
changes over time.
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Here are ~hree key principles of entrepreneurial leadership:

1. Vision and Innovation:

'"' .
' ,,,,,,,~~ii;ifiple: A strong entreprE!neuria/ ieade-r-has a deaf vision and the abilitJ
' .

'~ee opp6rtunities
new ideas. wher~ others might see chaiienges and are driven to 01

• Application: They set a compelling direction for their team or-organization

··lifl,111''/i' :I!"·,:: , ,, c~eative problem-solving and experimentation.
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Resilience and Risk-Taking:

• Principle: Entrepreneuna leaders

. . . te
. . I d~niOnstrate resilience and a wilil:igness to
, calcu lated nsks. T ey .
' '':
,
' '
.'
.. h . are not deterred
.
by setbacks"
and are prepared to navrga

i.i~'~ertainties. · . en needed,
lication: They persist "-
. throug h ch?''--r,ges/ adapt strategies wh
• App
failures as learning
. o pportun1·t·1es to muve forward.

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• Application: They pers1s . rough challenges, adapt _strategies when needed,

failures as learning opportunities to move forward.

31 E1 nJn,owermen't and ( :iollllaboration: .

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· • Principle: kffect ive entrepreneuri~I leaders empower their.tea,:n and foster a colla
environment They understand that success often depends on the collective efforts _a
talents of others.
I •

~I Ii )'.\rf!lil::rtion: They delegate responsib!li~ies, encourage team members to take ownershi

' their work, and build strong, ·col laborative relationships to achiev,e common goals.

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. factOTS could include a strong . -related products and sernce:
• EconoJDIC wth for many housing
growth in the housing market fuels gro . as well as furniture, appliances, and movin
. fr interior decorating to landscaping
rangUig om
services-
2,6,2 challenges to Entrepreneurs
The super competitive business world brings many challenges to entrepreneurs.
1. capital Management
Cash flow as we all kn_ow is an integral part of all business ventures. lf you manage yo
capital well, it allows you to stay In business long enough to make it as a business owne
However, instances are not rare when entrepreneurs struggle with bill payment whil
waiting for bills to get cleared. Delayed invoicing is a major trigger of these challenges
entrepreneurs.
·!~Ill
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Most people would jlaSt give up because they lack the ability to segment, create pro, t~s r I ana aili

delepte wort. Weanng different hats m the beginning would allow you to under-stan d your

lM•9MSS and rislcs better.

6. Au w Cm • ..,••
People wil want to knock JOU out new enb"epl'elleurs. Most of the new entrepreneurs wi

have to deal with some &en:r compdiliOD and people that want to put you out of busines
YOO-re fairing• piece ofbe••n away from them. and chances are they will find ways to p~

a stDp to daat. Find out wllo your COIJlil.etib:."S are, what they are offering, and what the
meogdls wl • h:e:us are. 1111m identify your target and step up your marketing garr
plan.

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V Entrepreneurship and £-Business (MU) 2-12 Entrepreneurship Development & l.cudersh::g

2.5.2 Social Factors

Socia\ factors can have a significant impact on n person's likelihood to pursue

entrepreneurship.

1. family background

A family background in entrepreneurship 1s one of the most influencing factor that motivnte~
a person to take up entrepreneurship. For those who 11,wc n positive expc!'icnce with th eir
own family business, they may be more llkely to purstw tlwir own ventures in rhe ful11n•, and
they may see the entrepreneurial route as more rnstomnry and h~ss 1111co11ve11t ionn l 01· risky.

2. Education

Education enables one to understand tlw outside wnl'ld anti eq111ps hi111 with the IM 'Jh
knowledge and skills to deal with day-to-day pl'uhle111s. In nny soc1e1y, the sys tem 01
education has a significant role to pl.1y in ir11:11le11ting ,~nt1·e prf'n c111 'ift l V;-1h1(1S. In l11d in 0111·
1

educational methods have not ch:111gecl rn11ch even tod ay. Tile crnp hJsis i-, till on prep.11'1ng
students for standitrcl jobs, rat lier than rnnrl<i11g Ihem ,--npahle e11n11n1t to Sl,llld un t hf'fr fret
3. Attitude of a society

C£>rta1n sodr.ties ('11rnurc1g1i inuovit11nn s nnd ,mvcllies LIIHI lh1 , ,;, - ,- -- . -- ·--
1
- • • _, - ~ ,lpp1 lJVI' L'll l l"t')H'1_' 1li.'l!nl'
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• - '11y llloncy, n1.1Jonn fl(I IVity
4
, Cultural value

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JlL1t'tjtJfi CJ llkcHhoocJ to become an
entre pren eur
Pei liupu Ihf~1110,; 1 dl1·et t lurtrn'fJ lrnpucti1q~ fl
nKtt 'tl(i lul ww, DH) in hid pr,ytholo
gJrnl. WhlJc a pcn;on·~ upbringmg can
11 ,, OI' lniJ;;1 u
1i,tlt1c.;nct1 1heli' J)rJyr holnHkn l l,JGtom lilrn creal
lvlty, rl1;k tolerance, drive, and leadership,
n nlt, u ho pu1'1i onal lly tr'rt l!B that arc doup
ly rooted in who a perso-n Is, regardless of
tllC!i•J i:t1
1111t ,id«.' t~1t1ol ';J,

6. Crontlvlt:y on<I ldon s

play a huge part in a person's c:ntrepre
neurial
!lovi ng (Te,11lvl1y nnd ilew idtifHJ olwlousJy
jo111'1\ty, ns f) llt ,·er,ren ou r:.,111 p of ton i.pr,dw
out of creative lnn<Hat ion.

7. Need Achlovomont
need -achievement are distmctive in seve ral ways.
The tli,11wy StJl(•s tlwt p(•o pk with liigll
ifies
'l'hey lll<o to 1:tlrn ,·1:;k~ :rnd the~e ri sl{s r,tim
ulate them to grea ter effort. The theo ry ident
'n eed ac:hicvcmcnt' is conditioned more by
social
tho r.~1cturs tlwt produ ce :well p,wplc. The
,md c11It-111·~1l r'einfol'Gement r:ithc r th::in by
p~rcntal influence and such related factors.

8. Leadership and Insp iring Othe rs

Leadership i~ one :1~,pcct of entrepreneurship

ttrnt no founder can avoid, as an entre pren eur
ental
ls in cli:1rgH oft urniug nn 1d,·,1 into r1 husin
csc,. Oftentimes, entre pren eurs become accid

ltmder:; and lc:irn these lPild,·rship skills "on

the job," but it's never too early to prepare.

9. Motives
the
eurs hip stress the motives or goals of
OtlH!r p~yrhological theori<.:\ of entre pren
seek power, prestige, security and service to
cnt n•pr<'11e11r. lh·s1d<"i wei'llth, entre pren eurs
indepcn<lence, persons' self-esteem, pow er and
smwty. Sokcnon-nHrnct'ary ~lspcct:; such as
entrepreneurship growth. Apart from all these
regard of the i,ocwty play an impo rtant role in
ote
has1t faciJities, utilities and services to prom
factors Covernrncnt actions such ,,s creating
in emergence of entrepreneurs.
entrepreneurship also plays an important role

and Cha llen ges

2.6 ~nt rep ren eur ial Op por tun itie s

2.6. 1 Ent rep ren eur ial Opp ortu niti es

 Planning

M•thods to Initiate Venture . . . -~

5
~x • Acqu1s1tion. Ad -----
am nation of key issues. Develo . vantages of acqutnng an on - -
compet1t1on analysis Bu ping a Marketing plan-customer a ly going veM re ano
• siness Plan-benefits of d . na sis, sales ana ys..s ~
e ements of a busin I nvers, perspect.ives , b .,
ess p an, Business plan failures n us ness plan prepar~ -

3.1 Methods to Initiate Ventures

There are many

Options for staring a new venture.
1. Buy a franchise
2. Partnership
3. Buy an ex1snng business
4. I ntrapreneursh1p

5. Start a new busaness

3.1.1 Buy a Franchises

• Franchise a commercial concession granted by a company to a retailer. The company

1s
grants exclusive rights of retailing (selling) its goods or providing its services to a retailer ma
specific area.

• It 1s a kmd of authorization granted to an individual or corporation by a franchisor to sell its

goods or services in a defined way.
Franchisor is the person or company which gives the right to a franchisee .
•
Franchisee, also known as .. owner-operator", is the person who acquires the franchise.
•
 ~ .e.s b !.lSJness' fu

• '1

~ bes and profits equa

~ ..Jig on something

~ hi:- ~ir.

- -~enenee of being
at:t to rl
o. Even if vou &,
~n tnak ·
t: the start-up pna·
gto the tab]
e•

•
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3.1.3 Buying 011

Exist Ing Busl not.s
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I
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• It you rhoosL' tlus rout t:,' ·1 .. trnpot I.ml lo

t l!i p1·1 lorn, dw• tltll '" '
rev,•mll' li~url'S and llndinr out I . I, nr', , u,.h a, wnlmn1ne all th•
, w iy ow1w1:-. l11p ts st·lltng a :wcrn111KIY i,ucce~hful busme!'

3 ·1 •4 lntrapreneurshlp

Some big companies encourage their rmploycl'S to pioneer new business lines In return for
•
equity or bonuses.
lntraprcneurs arc employees of a company who are assigned to work on a special idea or
•
project.
They are given the time and freedom to develop the pro1cct as an entrepreneur would. If you
• can ft n d a company with a strong cu Itu re of innovation, there is an opportumty to build your
own busmess within it, with the advantage ofhavmg start-up capital and less pmonal nsk.
 C t rl

"(, 1 nttt.11 , cne11n;h1p and E Bu In (MU) 3-6 N w Venture Pl. l1 Enrrepreneursh p

3.1.S Starting a New Business

~ta, ting a new hustness I not c.isy but require dettrmlnation, motivation, and kn ow t
officially launch. Dealing \\ Ith mC'.
L1stl'd below a, c t•·n steps that any entrepreneur needs to follow to start any new business.
can be costly, and you need to bes
Step 1 : Identify your business opportunities
Step 8: Build your team
Ent, cprcncursh1p 1s a broad term, and you can be an e t i j b t any
You may need to recruit an
Fmd n bus1n1•ss that won't only be successful but ls thn repreneur n u t n ou L h:
1:mrcprc1wursh1p 1s hard work, so you want lo •focu some Ing that you arc passionate a fdent1fymg your foumJmg team,
5
Step 2. Plan your hu~ine~s your attention on something you ca, c abe-, important Definwg roles and respo
how and when you will addn ss them
Hclure you begin your business, you need t ~
Step 9: Choose your vendors
nny oh1cct1vcs you havc as well ns your strat o cve a bustnes s Pan I A bu lness pl.in IJys
egy •Or acht~
tmport,mt for getting investors on board. a Well ng those ObJeruvcs ThjS pl.I Running a bu,;me.'>S can be oH•n,
as rn~sunng hows
Step 3 : Find your target group/audience uccessfu] your business I> .1hle to do fr all on your own Th ,1t's
Not PVl'ry business appeals to everyone The
age, &end
tar get group will play a large role In determining wh er, Income, race d f
have a physical address for business. Rcsean:h whi er, h You O Pen up shop an f cu lture o )
then gear everything tCJ attract that dcrnog r,tphit c group fl ts Your bustO r I You even t
Step 4: Assess your finances. ness mode

Stanrng nny business has a pncc, so you nr-cd to det

crrn1n~ h
costs. Oo you havl' the means to fund your startup, <>r Will You ow You'r
tCJ frnd out how much your startup costs will be. need t

Many startups fail h1•c;1usl· they run ou t ol n1oncy b efore lurni

to ovcrest1matl' lhP amount of st.1rtup ca pit.il you need,
business begins to hnng tn sustarnable revenue.

Step 5: Determine your legal business structure

Before you can register your company, you nt•ed

Your bus1ne$S st ructurc leg,1ll y a fl eets everyth111~ Ira
lrab1l1ty tf something goes w 1ung