Definition of Entrepreneur:-

An entrepreneur is an individual who creates a new business,

bearing most of the risks and enjoying most of the rewards. The
entrepreneur is commonly seen as an innovator, a source of new
ideas, goods, services, and business or procedures. He is someone
who starts their own business, especially when this involves seeing
a new opportunity. As the decision maker he decides what, how,
and how much of a good or service will be produced. An
entrepreneur supplies risk capital as a risk taker, and monitors and
controls the business activities. The entrepreneur is usually a sole
proprietor, a partner, or the one who owns the majority of shares
in an incorporated venture. It is said that Entrepreneurs see
possibilities and solutions where the average person only sees
annoyances and problems.
―The entrepreneur always searches for change, responds to it,
and exploits it as an opportunity.‖ – Peter Drucker.
Definition of Entrepreneurship:

The meaning of entrepreneurship involves an entrepreneur who

takes action to make a change in the world. Entrepreneurs take
the idea and execute it. Entrepreneurship is about execution of
ideas.
Entrepreneurship is the act of creating a business or businesses
while building and scaling it to generate a profit. Entrepreneurship
is the ability and readiness to develop, organize and run a business
enterprise along with any of its uncertainties in order to make a
profit. The most prominent example of entrepreneurship is the
starting of new businesses. In economics, entrepreneurship
connected with land, labour, natural resources and capital can
generate a profit. The entrepreneurial vision is defined by
discovery and risk-taking and is an indispensable part of a nation‘s
capacity to succeed in an ever-changing and more competitive
global marketplace.
Characteristics of Entrepreneurship:
Not all entrepreneurs are successful; there are definite characteristics
that make entrepreneurship successful. A few of them are mentioned
below:
Ability to take a risk- Starting any new venture involves a
considerable amount of failure risk. Therefore, an entrepreneur needs
to be courageous and able to evaluate and take risks, which is an
essential part of being an entrepreneur.
Innovation- It should be highly innovative to generate new ideas,
start a company and earn profits out of it. Change can be the
launching of a new product that is new to the market or a process
that does the same thing but in a more efficient and economical way.
Visionary and Leadership quality- To be successful, the entrepreneur
should have a clear vision of his new venture. However, to turn the
idea into reality, a lot of resources and employees are required. Here,
leadership quality is paramount because leaders impart and guide
their employees towards the right path of success.
Open-Minded- In a business, every circumstance can be an
opportunity and used for the benefit of a company. For example,
Paytm recognized the gravity of demonetization and
acknowledged the need for online transactions would be more, so
it utilized the situation and expanded massively during this time.
Flexible- An entrepreneur should be flexible and open to change
according to the situation. To be on the top, a businessperson
should be equipped to embrace change in a product and service,
as and when needed.
Know your Product-A company owner should know the product
offerings and also be aware of the latest trend in the market. It is
essential to know if the available product or service meets the
demands of the current market, or whether it is time to tweak it a
little. Being able to be accountable and then alter as needed is a
vital part of entrepreneurship.
 Types of Entrepreneurship
It is classified into the following types:
Small Business Entrepreneurship-
These businesses are a hairdresser, grocery store, travel agent,
consultant, carpenter, plumber, electrician, etc. These people run or
own their own business and hire family members or local employee. For
them, the profit would be able to feed their family and not making 100
million business or taking over an industry. They fund their business by
taking small business loans or loans from friends and family.
Scalable Startup Entrepreneurship-
This start-up entrepreneur starts a business knowing that their vision
can change the world. They attract investors who think and encourage
people who think out of the box. The research focuses on a scalable
business and experimental models, so, they hire the best and the
brightest employees. They require more venture capital to fuel and back
their project or business. Example
Amazon is one of the best entrepreneurship examples of scalable
startup entrepreneurship.
Large Company Entrepreneurship-
These huge companies have defined life-cycle. Most of these
companies grow and sustain by offering new and innovative products
that revolve around their main products. The change in technology,
customer preferences, new competition, etc., build pressure for large
companies to create an innovative product and sell it to the new set
of customers in the new market. To cope with the rapid technological
changes, the existing organizations either buy innovation enterprises
or attempt to construct the product internally.
Example
Google, Microsoft, and Samsung are all examples of large company
entrepreneurship as they keep innovating and developing new
products and services around their core- product line.
Social Entrepreneurship-
This type of entrepreneurship focuses on producing product and
services that resolve social needs and problems. Their only motto
and goal is to work for society and not make any profits. Ex- Pipal
Tree, Goonj etc.
 Steps to start small-scale industry
Starting a small-scale industry requires careful planning and execution. Here
are some general steps :
Choose the right industry: Identify a niche market that has a demand and is
profitable in the long run. It's important to research the industry and
competition thoroughly.
Create a business plan: Develop a comprehensive business plan that outlines
the goals, objectives, budget, marketing strategies, and financial projections.
Register your business: Register your business as per the government rules
and obtain all necessary permits and licenses. This includes obtaining a PAN
card, GST registration, and opening a bank account. Small Scale Industry
registration is done from the Ministry of MSME (Micro, Small and Medium
Enterprises)
Secure funding: Determine the capital required to start the business
and secure funding from investors, banks, or through government
schemes
Find a location: Choose a suitable location for your business operations. This
could be a rented or owned space, depending on your budget and
requirements.
Purchase equipment: Purchase equipment and raw materials necessary for
production.
Hire employees: Hire skilled and experienced employees to assist with business
operations.

Market your business: Create a marketing strategy to promote your business to

your target audience. This could include social media, advertising, or other
promotional activities.

Start production: Once everything is in place, start production and make sure
that you have a plan in place to manage inventory, quality control, and
customer relations.

Starting a small-scale industry can be a challenging but rewarding experience if

executed properly. It's important to seek advice from experts and network with
other business owners to learn from their experiences.
Importance of Entrepreneurship:

1. Creation of Employment- Entrepreneurship generates

employment. It provides an entry-level job, required for gaining
experience and training for unskilled workers.

2. Innovation- It is the hub of innovation that provides new product

ventures, market, technology, quality of goods, etc., and increases
the standard of living of the people.

3. Impact on Society and Community Development- A society

becomes greater if the employment base is large and diversified. It
changes society and promotes facilities like higher expenditure on
education, better sanitation, fewer slums, and a higher level of
homeownership. Therefore, entrepreneurship assists the
organization in a more stable and high quality of community life.
4. Increase Standard of Living- Entrepreneurship helps to improve
the standard of living of a person by increasing the income. The
standard of living means, increase in the number of consumption
of various goods and services by a household for a particular
period.

5. Supports research and development- New products and

services need to be researched and tested before launching in the
market. Therefore, an entrepreneur also dispenses finance for
research and development with research institutions and
universities. This promotes research, general construction, and
development in the economy.
Micro enterprises:-

A micro enterprise is a small business which sells goods

and/or services to a local area or a local market. It
employs less than 10 people generally and is
geographically restricted. Typically a micro enterprise
starts with some form of funding – known as micro credit
or micro finance. A micro enterprise is an enterprise
where investment in plant and machinery does not
exceed 25 lakhs and where the investment in equipment
does not exceed Rs. 10 lakh. The grocery store in your
locality that sells groceries, sometimes dairy products
and fruits and vegetables is a classic example of micro
enterprise
Small enterprises:-
A small enterprise is an enterprise where the investment in plant
and machinery is more than Rs. 25 lakh but does not exceed Rs. 5
crore and where the investment in equipment is more than Rs.10
lakh but does not exceed Rs. 2 crore.

Objectives of Small Enterprises:-

1. To generate a huge employment opportunities.
2. To eradicate unemployment problem from the country.
3. To bring backward areas in the mainstream of national
development.
4. To promote balance regional development.
5. To ensure more equitable distribution of national income.
6. To improve the level of living of the people of various rural
region.
7. To ensure effective mobilization of country‘s resources.
 Small Scale Industries (SSIs)
Small Scale Industries (SSIs) play a significant role in the Indian
economy. They are an essential source of employment and contribute
significantly to the country's GDP. Here are some key points about SSIs
in India:

Definition: According to the Micro, Small and Medium Enterprises

Development (MSMED) Act, 2006, Small Scale Industries are businesses
that have an investment in plant and machinery up to Rs. 50 lakhs.

Employment: SSIs are major employers in India, providing employment

to around 11 crore people. They are a significant source of employment
in rural and semi-urban areas.

Products: SSIs manufacture a wide range of products, including textiles,

leather goods, handicrafts, processed food, chemicals, and engineering
goods.
Government Support: The Indian government provides various
incentives and support measures to promote the growth of SSIs,
including financial assistance, technical assistance, and marketing
assistance.

Challenges: SSIs in India face several challenges, such as limited access to

finance, lack of modern technology, and inadequate infrastructure. They
also face stiff competition from large-scale industries and foreign
companies.

Importance: Despite the challenges, SSIs remain crucial to the Indian

economy, as they contribute significantly to employment generation,
exports, and overall economic growth.

In recent years, the Indian government has taken several steps to boost
the growth of SSIs, such as simplifying regulatory procedures, providing
easier access to credit, and promoting entrepreneurship through various
initiatives. These measures are expected to provide a significant boost to
the growth of SSIs in India.
 SWOT analysis
SWOT analysis is a strategic planning tool used to evaluate the
strengths, weaknesses, opportunities, and threats of a business
or organization. Here's a breakdown of each component:

Strengths: This refers to the internal factors that give a

company an advantage over its competitors. These can include
brand reputation, financial resources, unique skills or expertise,
loyal customers, and efficient processes.

Weaknesses: These are internal factors that put a company at a

disadvantage compared to its competitors. Examples include
limited financial resources, outdated technology, poor brand
reputation, inefficient processes, and lack of expertise.
Opportunities: These are external factors that a company can take
advantage of to improve its performance or gain a competitive
advantage. Examples include new market trends, emerging
technologies, changes in consumer behavior, and partnerships or
collaborations.

Threats: These are external factors that could negatively impact a

company's performance or competitiveness. Examples include
economic downturns, increased competition, changes in
government policies, natural disasters, and shifts in consumer
preferences.

By analyzing these four factors, companies can identify their

strengths and weaknesses and determine how to capitalize on
opportunities while minimizing the impact of threats. This can help
them make informed decisions and develop effective strategies for
achieving their goals.