LECTURE NOTES

Entrepreneurship Development
Development

LECTURE NOTES

Module-1

Prepared & Designed by

Dr.Santanu Kumar Das

Professor, P.G. Department of Management Studies,

Roland Institute of Technology, Surya Vihar, Golanthara,
Berhampur- Odisha. PIN- 761008

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Entrepreneurship Development

SYLLABUS(BPUT)

7th Semester (All Branches)

PCP7H013: ENTREPRENEURESHIP DEVELOPMENT(3-0-0)MODULE - I(10

LECTURES)
Entrepreneurship: Concept of entrepreneurship and intrapreneurship, Types of
Entrepreneur, Nature and Importance, Entrepreneurial Traits and Skills,
Entrepreneurial Motivation and Achievement, Entrepreneurial Personality.

MODULE–II(10LECTURES)
Entrepreneurial Environment, Identification of Opportunities, Converting Business
Opportunities intoreality.Start-upsand businessincubation,Settingup aSmall
Enterprise. Issues relating to location, Environmental Problems and Environmental
pollution Act, Industrial Policies and Regulations.

MODULE–III(10LECTURES)
Need to know about Accounting, Working capital Management, Marketing
Management, Human Resources Management, and Labour Laws. Organizational
support services - Central and State Government, Incentives and Subsidies.

MODULE–IV(10LECTURES)
Sickness of Small-Scale Industries, Causes and symptoms of sickness, cures of
sickness, Role of Banks and Governments in reviving industries.

ReferenceBOOK
1. Entrepreneurship Development and Management, Vasant Desai, HPH
2.Entrepreneurship Management, Bholanath Dutta, Excel Books
3 Entrepreneurial Development, Sangeeta Sharma, PHI
4.Entrepreneurship, Rajeev Roy, Oxford University Press

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MODULE-I(10LECTURES)

Entrepreneurship: Concept of entrepreneurship and intrapreneurship, Types

of Entrepreneur, Nature and Importance, Entrepreneurial Traits and Skills,
Entrepreneurial Motivation and Achievement, Entrepreneurial Personality.

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Concepts and Overview of Entrepreneurship

Learning Objectives
 Understand the concepts of entrepreneurship, its need and scope and importance.
 Explain meaning of the term entrepreneur and classification of various types
entrepreneurs.
 Draw a line of demarcation between entrepreneurs, intrapreneurs and managers.

Structure
1.1 Introduction
1.2 Definition
1.3 Nature and Characteristics
1.4 Need and Importance
1.5 Benefits of being an Entrepreneurship
1.6 Types of Entrepreneurs
1.7 Relationship between Entrepreneur and Entrepreneurship
1.8 Entrepreneurs vs. Managers
1.9 Entrepreneurs vs. Intrapreneurs
1.10 Summary
1.11 Key Terms
1.12 Self Assessment Questions further readings
1.13 Model Questions

1.1 Introduction
An entrepreneur is someone who organises, manages and assumes the risks of a business or
enterprise. He is an agent of change. Also, entrepreneurs are individuals who recognise opportunities
where others see chaos or confusion. Entrepreneurs are the creators and builders of new ventures that
not only fulfil their own dreams, bring them huge fortune but also make a story impact an society and
ultimately improve the quality of lives of people.
When we hear the word „entrepreneurs‟ , images of top business tycoons – Dhirubhai Ambani, LN
Mittal , Bill Gates – flash in our mind . While these high profile „success stories‟ can be inspirational
for some, most of us would find it difficult to associate our own lives, personalities or abilities with
these world famous multi-millionaires. But the fact is that virtually, everybody is entrepreneurial in

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some aspect of his or her life, entrepreneurial in terms of self-development, entrepreneurial in terms
of risk taking, entrepreneurial in terms of creativity, entrepreneurial in terms of self-decision making.
When these entrepreneurial traits are utilized by a person in running his business, he can rightly be
called an entrepreneur.
1.2 Definitions
Entrepreneurship has been considered as the propensity of mind to take calculated risk with
confidence to achieve predetermined business objectives. There are many views and opinions on the
concept of entrepreneurship forwarded by some of the world famous management gurus and
economists as mentioned below which will help in understanding this concept.
Oxford Dictionary “A person who sets up a business or businesses, taking on financial risks in the
hope of profit”
International Encyclopedia “An individual who bears the risk of operating a business in the face of
uncertainty about the future conditions”
Schumpeter's Definition ―The entrepreneur in an advanced economy is an individual who introduce
something new in the economy- a method of production not yet tested by experience in the branch of
manufacturing, a product with which consumers are not yet familiar, a new source of raw material or
of new markets and the like”
Drucker’s Views on Entrepreneur “An entrepreneur is the one who always searches for change,
responds to it and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the
means by which they exploit changes as an opportunity for a different business or different service”

Richard Cantillon “A person who pays certain price for a product to resell it at an uncertain price
thereby making decision about obtaining and using resources while assuming the risk of enterprise”
1.3 Nature and Characteristics
A clear analysis and appraisal of the above definitions further signifies the nature and characteristics
of entrepreneurship. An entrepreneur is considered as a business leader and not as simple owner of
capital. He is a person with intense drive and talent who perceives business opportunities and
promptly seizes them for exploitation. For goals/objectives, successful accomplishment of stated an
entrepreneur should have the following characteristics and nature;

Innovation: Entrepreneurship is innovative process. Innovation does not mean „invention‟. It means
introducing new products, new technology, searching new markets, and discovering new sources of
raw material etc. the innovation function gives impetus to the economic development of a country.
Schumpeter has regarded innovation as a main feature of entrepreneurship. Tata‟s „Nano‟ car is an

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Example of innovation in automobile industry.

Risk bearing: The second important characteristic of entrepreneurship is risk taking. Business is full
of risks and uncertainties. The entrepreneur has to bear a number of risks in forming and running the
enterprise. The market and price to be received is uncertain, there is a risk of changes in consumer
likes and dislikes, in government policies, the competition may intensify etc. The entrepreneurs are
calculated risk takers and not gamblers. They bear all risks in business in return of profit.
Entrepreneurship develops in a society, which has a large number of persons ready to take risk.

Decision-making: Entrepreneurship involves decision-making. Entrepreneurs have to take decisions

on selection of product, site, raw material, labour, technology etc. They have to decide the quantum
and sources of capital, marketing strategies and so on. Success of entrepreneurs depends on the ability
to make decision promptly and accurately, and this requires a creative and analytical mind.

Dynamic process: Entrepreneurship is a dynamic process. In the course of time, enterprises grow,
unsuccessful enterprise die and new enterprises are established. The nature of enterprise, methods of
business, nature of technology change over a period of time. Today’s complex and uncertain
environment compels the entrepreneurs to remain dynamic in order to survive in the market.

Organizing process: Entrepreneurship is an organizing process in the sense that the entrepreneur has
to organize various factors of product, create an organization structure and define the roles and
responsibilities of personnel and manage the enterprise. Alfred Marshall has emphasized the
organizing and management functions of entrepreneur.

Accepting challenges: Entrepreneurship gives importance to accepting challenges by the

entrepreneurs. In any business, there are tremendous challenges, and the entrepreneurs cannot avoid
them. The task of seeking opportunities and exploiting them itself is challenging. In today’s era of
globalization and hyper change entrepreneurs have to face more challenges.

Management: The entrepreneurs should manage the resources in an effective and viable manner. The
management function has become more impact in modern times. It is the effective management,
which helps entrepreneur to achieve the goals, maintain and improve the market share, fulfil the needs
of customers and earn sufficient profit. The main characteristics of entrepreneurship are shown in the
following figure:

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1.4 Need and Importance of Entrepreneurship

It has been said that entrepreneurship is essential for economic development of nations across
the globe. The entrepreneurs played an important role in their development. In socialist
economies, the state played the role of the entrepreneur. But in a developing country like
India which followed the path of mixed economy, both the government and the private
entrepreneurs played an equally important role. Of course, there has been a significant
increase in entrepreneurship in India in the post liberalisation period. People have now begun
to realise the crucial role the entrepreneurs have to play for achieving the goal of economic
development. They are regarded as the prime movers of innovations and act as key figures in
economic development of a country. Thus, entrepreneurship:

 helps the formation of capital by bringing together the savings and investments of
people;
 provides large-scale employment opportunities and increases the purchasing power of
the people; promotes balanced regional development in the country;
 helps in reducing concentration of economic power (power to own the factor of
production in a few hands).

1. 5 Benefits of being an Entrepreneur

 First of all, being an entrepreneur you learn basic skills like time management,
creativity enhancement, passion, strategy planning, etc.
 It certainly helps developing strong technology skills or expertise in a key area.
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 You develop the ability to keep going in the face of hardship.

 By studying Entrepreneurship and Innovation in college you can understand and

adapt change, because change is at the very core of Entrepreneurship.
 You develop the ability to think and then do big.
 Do what you enjoy.

1.6 Types of Entrepreneurs:

Entrepreneurs may be classified in a number of ways.
A.ON THE BASIS OF TYPE OF BUSINESS:
Entrepreneurs are classified into different types. They are :
 Business Entrepreneur: He is an individual who discovers an idea to start a business
and then builds a business to give birth to his idea.
 Trading Entrepreneur: He is an entrepreneur who undertakes trading activity i.e;
buying and selling manufactured goods.
 Industrial Entrepreneur: He is an entrepreneur who undertakes manufacturing
activities.
 Corporate Entrepreneur: He is a person who demonstrates his innovative skill in
organizing and managing a corporate undertaking.
 Agricultural Entrepreneur: They are entrepreneurs who undertake agricultural
activities such as raising and marketing of crops, fertilizers and other inputs of
agriculture. They are called agripreneurs.

ON THE BASIS OF USE OF TECHNOLOGY:

Entrepreneurs are of the following types.
 Technical Entrepreneur: They are extremely task oriented. They are of craftsman
type. They develop new and improved quality goods because of their craftsmanship.
They concentrate more on production than on marketing.
 Non-Technical Entrepreneur: These entrepreneurs are not concerned with the
technical aspects of the product. They develop marketing techniques and distribution
strategies to promote their business. Thus they concentrate more on marketing
aspects.
 Professional Entrepreneur: He is an entrepreneur who starts a business unit but
does not carry on the business for long period. He sells out the running business and
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starts another venture.

B. ON THE BASIS OF MOTIVATION:

Entrepreneurs are of the following types:
 Pure Entrepreneur: They believe in their own performance while undertaking
business activities. They undertake business ventures for their personal satisfaction,
status and ego. They are Guided by the motive of profit. For example, Dhirubhai
Ambani of Reliance Group.
 Induced Entrepreneur: He is induced to take up an entrepreneurial activity with a
view to avail some benefits from the government. These benefits are in the form of
assistance, incentives, subsidies, concessions and infrastructures.
 Motivated Entrepreneur: These entrepreneurs are motivated by the desire to make
use of their technical and professional expertise and skills. They are motivated by the
desire for self- fulfillment.
 Spontaneous Entrepreneur: They are motivated by their desire for self-employment
and to achieve or prove their excellence in job performance. They are natural
entrepreneurs.

C. ON THE BASIS OF STAGES OF DEVELOPMENT:

They may be classified into;
 First Generation Entrepreneur: He is one who starts an industrial unit by means of
his own innovative ideas and skills. He is essentially an innovator. He is also called
new entrepreneur.
 Modern Entrepreneur: He is an entrepreneur who undertakes those ventures which
suit the modern marketing needs.
 Classical Entrepreneur: He is one who develops a self supporting venture for the
satisfaction of customers‟ needs. He is a stereo type or traditional entrepreneur.

D. CLASSIFICATION ON THE ENTREPRENEURIAL ACTIVITY:

They are classified as follows:
1. BASIS OF Novice: A novice is someone who has started his/her first entrepreneurial

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venture.
2. Serial Entrepreneur: A serial entrepreneur is someone who is devoted to one
venture at a time but ultimately starts many. He repeatedly starts businesses and
grows them to a sustainable size and then sells them off.
3. Portfolio Entrepreneurs: A portfolio entrepreneur starts and runs a number of
businesses at the same time. It may be a strategy of spreading risk or it may be that
the entrepreneur is simultaneously excited by a variety of opportunities.

E. CLASSIFICATION BY CLARENCE DANHOF:

Clarence Danhof, On the basis of American agriculture, classified entrepreneurs in the

following categories:

1. Innovative Entrepreneurs: They are generally aggressive on experimentation and

cleverly put attractive possibilities into practice. An innovative entrepreneur,
introduces new goods, inaugurates new methods of production, discovers new
markets and reorganizes the enterprise. Innovative entrepreneurs bring about a
transformation in lifestyle and are always interested in introducing innovations.

2. Adoptive Or Imitative Entrepreneurs: Imitative entrepreneurs do not innovate the

changes themselves, they only imitate techniques and technology innovated by
others. They copy and learn from the innovating entrepreneurs. While innovating
entrepreneurs are creative, imitative Entrepreneurs are adoptive.

3. Fabian Entrepreneurs: These entrepreneurs are traditionally bounded. They would

be cautious. They neither introduce new changes nor adopt new methods innovated
by others entrepreneurs. They are shy and lazy. They try to follow the footsteps of
their predecessors. They follow old customs, traditions, sentiments etc. They take up
new projects only when it is necessary to do so.

4. Drone Entrepreneurs: Drone entrepreneurs are those who refuse to adopt and
use opportunities to make changes in production. They would not change the method
of production already introduced. They follow the traditional method of production.
They may even suffer losses but they are not ready to make changes in their existing
production methods.

There is another classification of entrepreneurs. According to this, entrepreneurs

may be broadly classified into commercial entrepreneurs and social entrepreneurs.

Commercial Entrepreneurs: They are those entrepreneurs who start business

enterprises for their personal gain. They undertake business ventures for the purpose
of generating sales and profits. Most of the entrepreneurs belong to this category.

Social Entrepreneurs: They are those who identify, evaluate and exploit
opportunities that create social values and not personal wealth. Social values refer to
the basic long standing needs of society. They focus on the disadvantaged sections of
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the society. They play the role of change agents in the society. In short, social
entrepreneurs are those who start ventures not for making profits but for providing
social welfare.

1.7 Relationship between Entrepreneur and Entrepreneurship

The terms entrepreneur and entrepreneurship are closely related but not interchangeable.
One refers to the person, the other to the process. Understanding their relationship helps
clarify how innovation, risk-taking, and value creation operate in both personal and economic
contexts.

Who is an Entrepreneur?
An entrepreneur is an individual who identifies opportunities, organizes resources, takes
risks, and creates value by starting a new business or improving an existing one.
Entrepreneurs are the driving force behind innovation and economic development.Example:
Narayana Murthy, founder of Infosys, is an entrepreneur who turned a small software
company into a global IT giant through vision, leadership, and risk-taking.

What is Entrepreneurship?
Entrepreneurship is the process or activity through which entrepreneurs bring their ideas
to life. It involves recognizing a business opportunity, mobilizing resources, launching a
venture, and managing it for profit and growth. It is both an economic function and a
creative process. Example: The establishment of Infosys, hiring talent, raising funds,
developing software solutions, and scaling globally—all fall under the process of
entrepreneurship.

Core Relationship between Entrepreneur and Entrepreneurship

1. Cause and Effect

o The entrepreneur is the cause, and entrepreneurship is the effect.
o Without the entrepreneur, the process of entrepreneurship cannot begin.
2. Person vs. Process
o The entrepreneur is the actor, while entrepreneurship is the action.
o The entrepreneur initiates, and entrepreneurship operates.
3. Driver vs. Vehicle
o The entrepreneur drives the process (like a driver in a car), while
entrepreneurship is the mechanism or platform (the vehicle) through which
ideas are executed.
4. Vision and Execution
o The entrepreneur provides the vision and direction.
o Entrepreneurship involves the execution and systematic activities to realize
that vision.

Comparison Table
Aspect Entrepreneur Entrepreneurship
Nature Person (subject) Process (activity/system)
Innovator, decision-maker, Implementation of business
Role
risk-bearer ideas
Focus Individual initiative and Business development and
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leadership economic creation
Assumes personal/business Involves risk management
Risk
risk strategies
May become successful Results in product/service
Outcome
business leader innovation, growth
Entrepreneur expresses
Entrepreneurship depends on
Dependency themselves through
the entrepreneur
entrepreneurship

Why the Relationship Matters

 The entrepreneur gives life to entrepreneurship.
 Entrepreneurship provides the framework and pathway for the entrepreneur’s ideas.
 Both are essential to economic development, job creation, and technological
advancement.

In essence, the entrepreneur is the creator, and entrepreneurship is the creation. One
cannot exist meaningfully without the other. An entrepreneur cannot act without the tools and
process of entrepreneurship, and entrepreneurship cannot occur without someone to take
initiative. Together, they form the cornerstone of innovation-driven economies.

1.8 Entrepreneurs vs. Managers:

In the world of business, both entrepreneurs and managers play essential but distinctly
different roles. While entrepreneurs are creators of ventures, managers are the organizers and
operators who ensure that business systems run efficiently. Understanding the contrast between
entrepreneurship and management is fundamental for grasping how businesses are started,
grown, and sustained.

Who is an Entrepreneur?
An entrepreneur is an individual who conceives a business idea, takes initiative to start a
new venture, assumes financial risk, and aims to generate profit while delivering value.
Entrepreneurs are driven by innovation, market opportunities, and the desire for
independence. They are visionary leaders who thrive in uncertainty and are often
responsible for job creation and economic development.

Example: Kunal Bahl, co-founder of Snapdeal, started the venture with a disruptive vision
for Indian e-commerce and took on risks in funding and market entry.

Who is a Manager?

A manager is a person employed within an organization to plan, organize, lead, and

control resources to achieve specific goals. Managers are responsible for implementing
policies, managing teams, and ensuring efficiency in operations. Unlike entrepreneurs,
managers do not own the business but are accountable for its performance under defined
structures and roles.

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Example: Indra Nooyi, as CEO of PepsiCo, led the company through effective strategic
management, operational restructuring, and brand transformation.

Key Differences Between Entrepreneurs and Managers

Criteria Entrepreneur Manager

Role Founder and innovator Operator and administrator
Establish and grow a Achieve organizational
Objective business through goals through planning and
opportunity recognition execution
Bears minimal personal
Takes personal and
Risk risk; focuses on risk
financial risk
management
Ownership Owns the venture Works for the organization
Constantly explores new Implements and optimizes
Innovation
ideas and innovations existing ideas and systems
Structured and based on
Decision-making Independent and intuitive
company policy
Profits, equity, and
Rewards Salary, bonuses, promotions
reputation
Long-term vision and Short to mid-term goals and
Focus
market disruption operational efficiency
Personal financial loss, Organizational or
Failure Impact
closure of business departmental consequences
Achievement, freedom, Career growth, stability,
Motivation
value creation recognition

Similarities between Entrepreneurs and Managers

Despite their differences, both roles:
 Require leadership and decision-making skills.
 Involve problem-solving and strategic thinking.
 Demand interpersonal and communication skills.
 Are essential for the success and sustainability of any business.

Real-World Examples
Type Example
Entrepreneur Narayana Murthy – Co-founded Infosys, a global IT company.
Manager Sundar Pichai – CEO of Alphabet Inc., efficiently manages a tech giant.
Entrepreneur Falguni Nayar – Founded Nykaa, an e-commerce success story in India.
Shikha Sharma – Former MD & CEO of Axis Bank, known for
Manager
corporate leadership.

Entrepreneur vs. Manager: Mindset Differences

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Entrepreneurial Mindset Managerial Mindset
“Let’s create something new.” “Let’s make this work efficiently.”
Vision-oriented, risk-accepting Goal-oriented, risk-averse
Focuses on growth and disruption Focuses on efficiency and control
Builds organizations Maintains and develops organizations

Entrepreneurs and managers are two sides of the business coin. Entrepreneurs build the
structure, often from scratch, driven by passion, vision, and risk-taking. Managers sustain
and scale that structure, ensuring that systems run smoothly, teams are productive, and
targets are met. For long-term business success, both roles are equally vital, often
complementing one another within an evolving enterprise ecosystem.

1.9 Entrepreneurs vs Intrapreneurs

In the dynamic world of innovation and business development, both entrepreneurs and
intrapreneurs play transformative roles. While they may share similar traits—such as
creativity, initiative, and risk-taking—their environments, responsibilities, and outcomes
differ significantly. Understanding these differences is crucial for students, professionals, and
organizations aiming to harness innovative potential effectively.

Who is an Entrepreneur?

An entrepreneur is an individual who identifies a market opportunity and takes the initiative
to establish a new business venture. Entrepreneurs take personal and financial risks with the
goal of earning profits, creating value, and achieving independence. They operate outside
existing organizational frameworks and are the owners and visionaries of their businesses.

Entrepreneurs are the driving force behind startups and new enterprises. They take full
accountability for business decisions, funding, team building, and navigating the
uncertainties of the market.

Example: Dhirubhai Ambani, the founder of Reliance Industries, started from scratch and
built one of India’s largest business empires, exemplifying the entrepreneurial spirit.

Who is an Intrapreneur?

An intrapreneur is an employee within an organization who behaves like an entrepreneur

but works under the umbrella of the company. Intrapreneurs are innovators within an
organization—they take initiative to develop new products, improve processes, or
implement ideas that contribute to the company’s growth. Unlike entrepreneurs,
intrapreneurs do not bear personal financial risks but may face professional consequences if a
project fails.

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Organizations that promote intrapreneurship often provide resources, time, and autonomy to
such employees, encouraging innovation without the need to leave the company.

Example: Paul Buchheit, the creator of Gmail, developed the idea while working at Google.
He had the freedom to explore his concept within the company, leading to one of the most
successful email platforms today.

Key Differences Between Entrepreneurs and Intrapreneurs

While entrepreneurs and intrapreneurs share traits like innovation, passion, and leadership,
they differ in several fundamental ways:

1. Ownership and Autonomy

Entrepreneurs own their businesses and make independent decisions. In contrast,
intrapreneurs work within existing structures, often needing approval from superiors
for key decisions.
2. Risk and Reward
Entrepreneurs bear high personal and financial risks but also enjoy higher rewards
such as profits and equity. Intrapreneurs face low financial risk but are compensated
with salaries, bonuses, and recognition.
3. Innovation Environment
Entrepreneurs innovate outside existing institutions, often challenging industry
norms. Intrapreneurs innovate within established organizations, using company
resources and aligning with its goals.
4. Funding Source
Entrepreneurs raise capital through personal savings, loans, or investors.
Intrapreneurs are funded by the organization they work for.
5. Impact of Failure
Entrepreneurial failure can result in personal financial loss and business closure. For
intrapreneurs, failure may lead to a stalled career or reassignment, but not financial
ruin.

Similarities Between Entrepreneurs and Intrapreneurs

Despite operating in different contexts, entrepreneurs and intrapreneurs share several

common characteristics:

 Both are innovative problem-solvers.

 They demonstrate leadership, self-motivation, and vision.
 Both are change agents who challenge the status quo.
 They thrive on achieving results and creating value.

Real-World Illustrations

 Entrepreneurial Example:
Ritesh Agarwal, the founder of OYO Rooms, launched a startup at a young age,
disrupting the Indian hospitality industry by offering standardized affordable
accommodations.
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 Intrapreneurial Example:
Ken Kutaragi of Sony conceptualized and developed the PlayStation while working
within the company, despite initial internal resistance. His project eventually
transformed Sony's position in the gaming industry.

Why Both Matter

Entrepreneurs are vital for economic growth, job creation, and market disruption, while
intrapreneurs are essential for organizational innovation, competitiveness, and internal
transformation. Organizations that support intrapreneurship retain talent and foster
continuous improvement, while entrepreneurial ecosystems empower individuals to turn
ideas into impactful ventures.

While entrepreneurs are independent creators of businesses, intrapreneurs are internal

innovators working within organizations. Both contribute to growth and innovation but
operate under different structures, motivations, and risk frameworks. Recognizing and
nurturing both types of individuals is crucial for fostering a vibrant economy and a culture of
continuous innovation.

An entrepreneur is an agent of change who plays a vital role in the economic

development process .In fact he is an organiser who combines various faction of
production to produce a socially viable product or service and user his initiative, skill and
motivation aspiring for high achievements. All entrepreneur posses certain important
quality, skill and characteristics so as to emerge successful in their respective ventures
.The entrepreneurs are broadly classified in to four types, namely ,imitative, innovative,
fabien and drone entrepreneurs .Entrepreneur and entrepreneurship are two sides of the
same coin, while an entrepreneur is Concepts and Overview of Entrepreneurship an
individual who creates and establish a businessmen , entrepreneurship is the process
adapted by an entrepreneur to do so. An entrepreneur differs from a manager on various
counts. While the entre happens to be the owner of a businessmen, the manager happen
to be a paid employee .The entrepreneur emerging from within the confiners of
organisation are called “Intrapreneurs” .The scope of entrepreneurship is tremendous
country like India with problem of population and huge unemployment.

Entrepreneurial Traits and Skills refer to the personal characteristics and abilities that are
essential for successfully starting, managing, and growing a business. These traits and skills
help entrepreneurs navigate challenges, innovate solutions, and drive their ventures forward.

Key Entrepreneurial Traits (Personality Characteristics)

1. Risk-taking Ability
Willingness to take calculated risks for potential rewards, even in uncertain situations.
2. Self-confidence
Belief in one's abilities, decisions, and vision, especially during tough times.
3. Resilience
Capacity to recover from setbacks, failures, and criticism without giving up.
4. Innovativeness
Creativity and willingness to introduce new ideas, products, or processes.

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5. Visionary Thinking
Ability to foresee market trends and imagine a future that others cannot yet see.
6. Initiative
Proactive attitude; not waiting for opportunities but creating them.
7. Passion and Commitment
Deep enthusiasm for the venture and persistence in achieving goals.
8. Locus of Control (Internal)
Belief that one's own actions determine outcomes, rather than external forces.
9. Need for Achievement
High personal drive to accomplish challenging goals and standards.
10. Ethical Integrity
Maintaining honesty, transparency, and fairness in business practices.

Core Entrepreneurial Skills (Abilities Developed Over Time)

1. Leadership Skills
Ability to inspire and guide a team toward shared goals.
2. Decision-making Skills
Making timely, well-informed, and effective decisions under uncertainty.
3. Problem-solving Skills
Identifying issues and creatively solving them using limited resources.
4. Communication Skills
Expressing ideas clearly, negotiating, pitching, and networking effectively.
5. Strategic Thinking
Long-term planning and positioning of the business in competitive markets.
6. Financial Literacy
Understanding budgeting, financial statements, fundraising, and cost management.
7. Time Management
Prioritizing tasks and managing time efficiently to maximize productivity.
8. Marketing and Sales Skills
Promoting products/services and converting leads into customers.
9. Networking Ability
Building relationships with mentors, investors, customers, and partners.
10. Adaptability and Learning Agility
Ability to learn quickly and adjust to changing circumstances or feedback.

Category Traits Skills

Personal Passion, resilience, confidence Communication, leadership
Strategic Visionary, innovative Strategic thinking, decision-making
Operational Initiative, ethical integrity Time mgmt, finance, marketing
Interpersonal Locus of control, achievement Networking, adaptability

Here are 4 concise case studies that illustrate how entrepreneurial traits and skills
play a critical role in real-world success. Each case focuses on a different entrepreneur
and highlights specific traits and skills they demonstrated.

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Case Study 1: Narayana Murthy – Infosys Technologies (India)

Trait Highlighted: Ethical Integrity, Vision

Skill Highlighted: Strategic Thinking, Leadership

Background:
In 1981, Narayana Murthy co-founded Infosys with just ₹10,000 borrowed from his wife. At
a time when India was still emerging in the tech sector, Murthy envisioned making India a
global IT hub.

Key Entrepreneurial Actions:

 Insisted on transparent corporate governance.

 Invested early in training and upskilling talent.
 Developed a global delivery model for outsourcing.

Outcome:
Infosys became a global leader in IT services and set standards for ethical business in India.

Case Study 2: Kiran Mazumdar-Shaw – Biocon Ltd.

Trait Highlighted: Resilience, Risk-taking

Skill Highlighted: Innovation, Financial Management

Background:
Kiran started Biocon in 1978 in her garage with very limited capital and credibility in a male-
dominated biotech field.

Key Entrepreneurial Actions:

 Used novel fermentation techniques to enter the enzyme industry.

 Pivoted to biopharmaceuticals when global demand shifted.
 Raised international funding through trust and performance.

Outcome:
Biocon is now a multi-billion-dollar firm and a pioneer in affordable insulin and biologics.

Case Study 3: Elon Musk – Tesla & SpaceX

Trait Highlighted: Visionary Thinking, High Risk Appetite

Skill Highlighted: Innovation, Strategic Decision-making

Background:
Elon Musk invested his own money to fund Tesla and SpaceX, despite numerous failures and
public criticism.

Key Entrepreneurial Actions:

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 Disrupted the automotive industry with electric cars.
 Revolutionized space travel with reusable rockets.
 Faced bankruptcy multiple times but refused to give up.

Outcome:
Tesla is the world’s most valuable auto company, and SpaceX is transforming space
logistics.

Case Study 4: Falguni Nayar – Nykaa (India)

Trait Highlighted: Late-career Initiative, Self-confidence

Skill Highlighted: E-commerce Strategy, Marketing

Background:
At the age of 50, former investment banker Falguni Nayar launched Nykaa, an online beauty
and wellness platform in India.

Key Entrepreneurial Actions:

 Identified the gap in online beauty retail in India.

 Focused on customer trust through authenticity and curated content.
 Leveraged influencer marketing and omnichannel expansion.

Outcome:
Nykaa became one of India’s first profitable unicorn startups and had a successful IPO.

Summary Table of Case Studies

Entrepreneur Key Traits Core Skills Impact/Result

Narayana Murthy Ethics, Vision Strategy, Leadership Built Infosys as a global IT
powerhouse
Kiran Mazumdar- Resilience, Risk- Innovation, Finance Created India’s leading
Shaw taking biotech firm
Elon Musk Visionary, Innovation, Disrupted automotive and
Boldness Strategic thinking aerospace sectors
Falguni Nayar Initiative, E-commerce, Built a top beauty retail
Confidence Marketing brand in India

Entrepreneurial Motivation and Achievement are two crucial dimensions that drive
and define the journey of an entrepreneur. While motivation explains why individuals
choose to become entrepreneurs, achievement reflects the outcomes they realize through
their ventures.

Entrepreneurial Motivation
Motivation is a person’s enthusiasm towards anything that has to be done, like, work.
According to Robert Dubin, “Motivation is the complex forces starting and keeping a
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person at work in an organisation. Motivation is something that moves the person to
action, and continues him in the course of action already initiated.” Motivation is a
psychological process. The behaviour of human beings has a close relationship with
motivation. According to Dalton E. McFarland,”Motivation refers to the way in which
urges, drives, desires, aspirations, strivings or needs direct, control or explain the
behaviour of human beings.” In the motivation process, the starting point is from
unsatisfied needs. To satisfy these needs, the person becomes anxious and searches for
possible ways to achieve those needs. While moving towards the goals, few more needs
arise. Whether the goals are achieved or not, the person keeps working. This also reflects
in his constructive or destructive behaviour.

FEATURES OF MOTIVATION
1. Internal Feeling: Motivation generally comes from within. It is an internal feeling. It
is hard to observe motivation directly, since it is depicted in an individual’s behaviour.
2. Complex process: Motivation of one person differs from the motivation of another
person, even when both are engaged in same activity. Example: Two fashion designers
will be having different level of motivation.
3. Continuous process: Motivation is not a one-time activity. An individual needs to be
continuously motivated to achieve targets.
4. Dynamic process: The needs and goals of every individual keep changing, as does
their motivation level. Example: A student may study hard to score well and get a job in
the relevant industry. After some job experience, the same person will work hard for
promotions and also for a better lifestyle.
5. Different from satisfaction: Motivation is the desire to achieve something.
Satisfaction comes after the desired target is achieved.

SIGNIFICANCE OF MOTIVATION
Motivation is an important management function. It is practiced by all managers to
continuously motivate their subordinates. The following factors make motivation
significant for any activity or at any level:

1. Will to work: Motivation creates the will to work. It is necessary to achieve

organisational goals.
2. Efficiency: A motivated worker performs more efficiently than the non motivated
worker.
3. Cooperation: A motivated work cooperates more in the organisational activities than
the non-motivated worker.
4. Labour absenteeism: If workers are motivated to work, labour absenteeism will be
low.
5. Good human relations: The organization with motivated workers faces less friction
among employees.
6. Fewer complaints: Motivated employees generally focus on their work and search for
solutions to resolve problems rather than complain about them.
7. Low wastage: Motivated employees try to achieve efficiency and produce more
quality products. This leads to low wastage of raw materials.

ACHIEVEMENT MOTIVATION
Achievement motivation may be understood by independently considering the words
achievement and motivation. Achievement refers to success while Motivation refers to
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the psychological drive to be successful. Thus, achievement may be defined as the need
for success or why and how people strive towards success and away from failure.
Motivation can happen when you:
• Have clear goals
• Visualize achievement
• Work towards the goals
• Anticipate possible risks
• Identify opportunities and threats
• Be patient while moving towards goals
• Take help from others to overcome roadblocks

HUMAN MOTIVES
Human motives give a reason to do something. Motives drive human beings to go ahead.
For example, if you want to become a dancer, you have to practice dance and strive
towards mastery in atleast one dance form. Human motives are broadly classified as:
1. Biological motives or physiological motives: These are basic motives and these
are needed to satisfy human needs. Example:thirst, hunger. You need water to
satisfy your thirst and food to satisfy your hunger.
2. Psychosocial or social motives: These are mostly acquired from family, friends,
social groups, etc. These needs arise from: i. Need for affiliation ii. iii. Need for
power Need for achievement.
3. Curiosity and exploration: The curiosity to explore more and search for better
techniques will always fuel motivation.

THEORIES OF MOTIVATION
The importance of motivation to human life and work can be judged by the number of
theories that have been propounded to explain human’s behaviour. They explain human
motivation through human needs and human nature.
1. Maslow’s Need Hierarchy Theory: Prof A. H. Maslow developed a theoretical
framework for understanding human motivation which has been widely acclaimed.
According to him, a person’s effectiveness is a function of matching his opportunity with
the appropriate position of hierarchy of needs. Process of motivation begins with an
assumption that behaviour, at least in part, is directed towards the satisfaction of needs.

(i) Basic Physiological Needs : The physiological needs relate to the survival and
maintenance of human life. These needs include such things as food, clothing, air, water
and other necessaries of life which are biological in nature. These needs are primary
needs.
(ii) Safety and Security Needs: After satisfying the ‘physiological needs, people want
the assurance of maintaining a given, economic level. They want job security, personal
bodily security, security of source of income, provision for old age, insurance - against
risks, etc.
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(iii) Social Needs: Man is a social being. He is, therefore, interested in conversation,
sociability, exchange of feelings and grievances; companionship, recognition,
belongingness, etc.
(iv) Esteem and Status Needs: These needs embrace such things as self- confidence,
independence, achievement, competence, knowledge and success. These needs boost the
ego of individual. They are also known as egoistic needs. They are concerned with
prestige and status of the individual.
(v) Self-Fulfillment Needs: The final step under the need priority model is the need for
self fulfillment or the need to fulfill what a person considers to be his mission in life. It
involves realizing one’s potentialities for continued self-development and for being
creative in the broadest sense of the word. After his other needs are fulfilled, a man has
the desire for personal achievement.

Appraisal of Need Hierarchy Model:

The need priority model may not be apply at all times in all places. Surveys in
continental European countries and Japan have shown that the model does not apply very
well to their managers.
Their degrees of satisfaction of needed does not vary according to the need priority
model. For example, workers in Spain and Belgium felt that their esteem needs are better
satisfied than their security and social needs, Apparently, cultural differences are an
important cause of these differences. Thus, need hierarchy may not follow the sequence
postulated by Maslow. Even if safety need is not satisfied, the egoistic or social need
may emerge.

2. McClelland’s Acquired Needs Theory: Each person tends to develop certain

motivational drives as a result of his cognitive pattern and the environment in which he
lives. David McClelland gave a model of motivation which is based on three types of
needs, namely, achievement, power and affiliation. They are as follows:
(i) Need for achievement (n-Ach): a drive to excel, advance and grow;
(ii) Need for power (n-Pow): A drive to influencing others and situations;
(iii) Need for affiliation (n-Aft): A drive for friendly and close interpersonal
relationships.

McClelland also suggests that these three needs may simultaneously be acting on an
individual. But, in case of an entrepreneur, the high need for achievement is found
dominating one. In his view, the people with high need for achievement are characterized
by the following:
(i) They set moderate, realistic and attainable goals for them.
(ii) Prefer to situations in which they can find solutions for solving personal
responsibility.
(iii) They need concrete feedback on how well they are doing.
(iv)They have need for achievement for attaining personal accomplishment.
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(v) They look for challenging tasks.

Entrepreneurial motivation may be defined as a set of motives such as high need to

achieve, moderate need for power and low affiliation motive which induce people to set
up and run their own enterprises. Apart from these, entrepreneurs have other behavioural
dimensions such as, tolerance for ambiguity, problem solving, creativity, etc

3. Herzberg’s Two-Factor Theory:

Motivation (achievement, recognition) and hygiene (salary, job security) factors both
influence entrepreneurial drive.

MOTIVATION AND ENTREPRENEURSHIP

Factors motivating entrepreneurs and qualities they need to achieve are:

1. Innovation: New innovations and creativity motivates entrepreneurs to work
more and more. Entrepreneurs are always ready to adapt to change and they
modify themselves according to the need of an hour.
2. Self-confidence: Entrepreneurs are not discouraged by mistakes and failures.
They have the self-confidence to overcome difficulties and they can also go an
extra mile to achieve their targets.
3. Future orientation: Entrepreneurs have the tendency to look forward and plan
for the future. They learn from past mistakes and rectify them to achieve their
long-term goals.
4. Responsibility: Entrepreneurs like to take responsibilities for necessary activities
and take blame for their actions. At the same time, they want recognition for their
work.
5. Feedback: Entrepreneurs search for continuous feedback of their actions. They
do so to take corrective actions on time.
6. Tolerance level: Entrepreneurs have high tolerance level. Even if actions do not
move in a planned manner they maintain their tolerance level and take actions
accordingly.
7. Achievers: Entrepreneurs are never satisfied with what they have in their hands.
They always crave for more and better goals to achieve.
8. Maintain relationships: Entrepreneurs generally maintain good relationships
with all stakeholders. This helps stakeholders to feel motivated and contribute
their best for theorganisation.
9. Mobility: Entrepreneurs are not fussy about their geographical location. They are
motivated to move in different areas to achieve efficiency and higher profits.

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MOTIVES FOR STARTING ENTERPRISES
Several researchers have carried out research studies to identify the factors that motivate
people to start business enterprises. The findings of some of the studies are as follows. 1.
In this pioneering study, R.A. Sharma classified all the factors motivating the
entrepreneurs into two types as follows:
(i) Internal factors
(a) Educational background
(b) Occupational experience
(c)Desire to do something pioneering and innovative
(d) Desire to be free and independent
(e) family background

(ii) External factors

(a) Assistance from Government
(b) Financial assistance from institutions
(c) Availability of technology and/or raw materials
(d) Encouragement from big business units
(e) Heavy demand for product
Study by Murthy, Sekhar and Rao on entrepreneurial motivation classified the factors
behind entrepreneurial growth into three categories as follows:

1. Entrepreneurial ambitions
(a) To make money
(b) To continue family business
(c) To secure self-employment/independent living
(d) To fulfil desire of self/wife/parents
(e) To gain social prestige
(f) Other ambitions-making of a decent living, self-employment of children, desire to do
something creative, provide employment to others.

2. Compelling reasons
(a) Unemployment
(b) Dissatisfaction with the job so far held or occupation pursued
(c) Make use of idle funds
(d) Make use of technical/professional skills.
(e) Others-maintenance of large families, revival of sick unit started by father.

3. Facilitating factors
(a) Success stories of entrepreneurs
(b) Previous association (experience in the same or other line of activity)
(c) Previous employment in the same or other line of activity
(d) Property inherited/self acquired/wife’s
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(e) Advice or influence (encouragement) of family members/ relatives/mends.
(f) Others- association as apprentices and sleeping partners.

THE ACHIEVEMENT MOTIVATION

David McClelland has developed an Achievement Motivation Theory. According to this
theory an individual’s Need for achievement (n-Ach) refers to the need for personal
accomplishment. It is the drive to excel, to strive for success and to achieve in relations
to a set of standards. The following psychological factors contribute to entrepreneurial
motivation:
1. Need for achievement through self-study, goal-setting and interpersonal, support.
2. Keen interest in situations involving moderate risk.
3. Desire for taking personal responsibility.
4. Concrete measures of task performance.
5. Anticipation of future possibilities.
6. Energetic or novel instrumental activity.
7. Organisational skills, etc.

Need for achievement is simply the desire to do well not so much for the, sake of social
recognition or prestige but for the sake of an inner feeling of personal of
accomplishment. It is this need for achievement that motivates people to take risk.
People with high need for achievement behave in an entrepreneurial way. Need for
achievement stimulates the behaviour of a person to be an entrepreneur.

The Kakinada Experiment

Assuming need for achievement plays a vital role in promoting economic growth,
Mcclelland has tried to induce achievement motivation in adult and provide them with an
urge to improve their lot because uninduced achievement motivation results in long
waiting before it bears fruit. Such an inducement may help break the barrier of “limited
aspirations”. For this purpose, he conducted experiments with groups of businessmen in
America, Mexico and Bombay.

Later he carried out a full-fledged programme in the Kakinada city of Andhra Pradesh.
Kakinada is a well-developed distinct town of a population of around one lakh with high
literacy and a modest industrial structure.

Objective of the program: to break the barrier of “limited aspirations” by inducing

achievement motivation.
The project which began in January 1964 consisted of recruiting batches of personnel
drawn from business and industrial community of this town and putting them through
orientation programme at the Small Industry Extension Training (SIET) institute,
Hyderabad. 52 persons grouped into three batches participated” in the programme. The
training was designed primarily to stimulate the imagination and encourage introspection
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into personal motivation and community goals. The achievement development course
contained four main items :
(i) The individuals strived to attain concrete and frequent feedback.
(ii) The participants sought models of achievement i.e. watched those who have
performed well and tried to emulate.
(iii) The participants imagined themselves in need of success and challenge and set
carefully planned and realistic work goals.
(iv) The trainees were asked to control day dreaming by thinking and talk to themselves-
in positive terms.

After two years those who had taken the course except for one Mexican case performed
better than comparable men who did not take the course. The former made more money,
got promoted faster and expanded business faster.
In order to assess need for achievement, McClelland used the Thematic Appreciation
Test (TAT) which presents the subject with an ambiguous picture.

Findings
McClelland concluded that-
● those participating in the programme displayed a more active business behaviour (51
per cent as against 25 per cent in the control group) and worked longer hours.
● Caste, traditional beliefs or western ways of life did not determine the mental makeup
of a participant.
● The training as was given at Hyderabad is likely to improve those who have a great
yearning to do something and have the opportunity to do so in their business framework.

Applications of experiment:
The Kakinada experiment is being utilised in a number of experiment that have recently
initiated technical personnel to set up new enterprise of their own.
● In. Gujarat, various State agencies have combined to operate an Entrepreneurship
Development Programme to help young people acquire the motivation necessary to
become risk-takers. The Gujarat programme has been successful in persuading many
persons to set up new enterprises in the small scale sector.
● In Andhra Pradesh, the Small Scale Industrial Development Corporation Ltd.
(APSSIDC) has been assisting technically qualified persons to become entrepreneurs
through orientation programmes of the SIET Institute. This is followed by specific
assistance of providing developed land specially earmarked for such persons at nominal
rates in the technocrats industrial estates.

● The Ministry of Industrial Development has recently formulated schemes of helping

technical personnel to become entrepreneurs. This programme consists of three months
program at selected centres spread all over the country, followed by financial assistance
in terms of a subsidy on the interest on advances taken by the entrepreneur from the
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commercial banks so that the net interest paid by the entrepreneur himself does not
exceed five percent.

Entrepreneurial Achievement
Entrepreneurial achievement refers to the successful execution of entrepreneurial
activities leading to the creation of economic, social, and personal value.

Indicators of Entrepreneurial Achievement:

Domain Achievement Indicator
Economic Profitability, revenue growth, return on investment
Innovative Patents, product innovation, market disruption
Social Employment generation, CSR initiatives, community impact
Reputation-based Awards, media recognition, leadership in industry
Sustainability Longevity of business, adaptability in crisis, green practices
Self-actualization Personal growth, life satisfaction, fulfillment of purpose

Real-life Example:

Dr. Verghese Kurien – Amul (India)

 Motivation: Social and achievement-oriented — to empower rural dairy farmers.

 Achievement: Revolutionized India’s dairy industry; created the "White Revolution"
— making India self-sufficient in milk production.

Motivation-Achievement Cycle (Illustrative Flow)

Motivation → Entrepreneurial Action → Challenges → Persistence → Achievement

→ Renewed Motivation.

Example: A woman motivated by autonomy starts a boutique → learns business

skills → survives early setbacks → expands → inspires others → becomes a mentor.

PRACTICE SHEET
Do Yourself:
1. What is meant by entrepreneurial motivation? Is it necessary for a successful
entrepreneur? Discuss.
2. What are the factors that motivate people to go into business?
3. What do you understand by achievement motivation? How can achievement
motivation be developed?
4. Write an explanatory note on ‘Kakinada Experiment’ on achievement motivation.
5. It is said that ambition is the lever of all motives. Why do you agree/ disagree

Summary Table
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Aspect Motivation Achievement
Outcome/result (what is
Nature Internal drive (why to start)
achieved)
Performance, impact, success
Focus Goals, aspirations, values
metrics
Intentions, risk-taking behavior, Profits, growth, innovation,
Measurement
passion influence
Family, society, economy, education, Strategy, team, resources,
Influencing Factors
personality persistence

What is Entrepreneurial Personality?

Entrepreneurial Personality refers to the unique constellation of traits, behaviors,

attitudes, and emotional patterns that are consistently associated with individuals who start
and manage entrepreneurial ventures.It influences how an entrepreneur thinks, acts, takes
risks, solves problems, and adapts to changing business environments.

Core Traits of an Entrepreneurial Personality

Trait Explanation
Strong belief in one’s ability to achieve goals and take calculated
Self-confidence
risks.
Risk-taking propensity Willingness to venture into uncertain or untested territory.
Need for Achievement Desire to accomplish challenging goals and outperform
(nAch) competitors.
Locus of Control (Internal) Belief that one can influence outcomes through their own actions.
Preference for novelty and experimentation; ability to think
Innovativeness
outside the box.
Proactiveness Taking initiative rather than waiting for opportunities.
Tolerance for Ambiguity Ability to operate under uncertainty without anxiety or paralysis.
Resilience Ability to bounce back from failure, setbacks, or criticism.
Autonomy-Seeking Desire for independence and freedom from authority.
Passion and Commitment Strong emotional investment in one’s venture and perseverance.

Theoretical Models Related to Entrepreneurial Personality

1. Big Five Personality Model & Entrepreneurship

Research shows that certain Big Five traits are more common among entrepreneurs:

Big Five Trait Relevance to Entrepreneurs

Openness to Experience High (creative, curious, open to new ideas)
Conscientiousness High (organized, dependable, goal-oriented)
Extraversion Moderate to High (social, persuasive, energetic)
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Low to Moderate (too much agreeableness may
Agreeableness
hinder assertiveness)
Neuroticism (Emotional Stability) Low (more emotionally stable = better under stress)

McClelland’s Theory of Achievement Motivation

Entrepreneurs has:
 High nAch (need for achievement)
 Moderate risk-taking tendency
 Preference for personal responsibility
 Need for immediate feedback

Difference between Entrepreneurial Personality and Managerial Personality

Entrepreneurial
Aspect Managerial Personality
Personality
Risk-taking High Low to moderate
Innovation focus High Process optimization
Decision-making Fast, intuitive, bold Analytical, consensus-driven
Stability, organizational
Motivation Achievement, independence
growth
Highly flexible, embraces Prefers structure and
Adaptability
change planning

Real-Life Entrepreneurial Personalities (Examples)

 Dhirubhai Ambani (Reliance) – Risk-taking, visionary, persuasive

 Ritesh Agarwal (OYO Rooms) – Young innovator with resilience and market
disruption skills
 Steve Jobs (Apple) – Perfectionist, innovative, emotionally intense but highly
focused
 Kalpana Saroj (Kamani Tubes) – From extreme poverty to industrialist – resilient,
courageous

Conclusion
An entrepreneurial personality is not just a product of traits, but a dynamic psychological
makeup that evolves through experiences, challenges, and learning. While some traits may be
innate, many can be cultivated through training, mentorship, and real-world exposure.

Assignment Questions: Entrepreneurship Module-1:

1: Concept of Entrepreneurship and Intrapreneurship

1. Define entrepreneurship. How does it differ from intrapreneurship? Give
relevant examples from real-life businesses.
2. Critically examine the evolution of the concept of entrepreneurship. How has
its meaning and scope changed in the modern era?
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3. Compare and contrast entrepreneurship and intrapreneurship in terms of
risk, innovation, and autonomy.
4. Discuss the role of intrapreneurship in promoting innovation within large
organizations.

2: Types of Entrepreneurs
5. Identify and explain the various types of entrepreneurs with suitable
examples (e.g., innovative, imitative, Fabian, drone, social, technopreneurs).
6. Choose any two successful entrepreneurs from different types and analyze
their journey, style, and business outcomes.
7. Discuss the differences between a social entrepreneur and a traditional
entrepreneur. Which do you think has a greater long-term impact?

3: Nature and Importance of Entrepreneurship

8. Explain the nature and characteristics of entrepreneurship. How do these
help in business formation?
9. Discuss the economic and social importance of entrepreneurship in a
developing country like India.
10. Evaluate the contribution of entrepreneurship to employment generation
and innovation in your region or country.

4: Entrepreneurial Traits and Skills

11. List and explain at least five key entrepreneurial traits. How do these traits
influence entrepreneurial success?
12. What are the critical skills needed for successful entrepreneurship in the
digital age?
13. Conduct a self-assessment: Do you have the traits and skills of an
entrepreneur? Provide examples and evidence to support your analysis.

5: Entrepreneurial Motivation and Achievement

14. What are the main sources of motivation for entrepreneurs? Use
McClelland's Theory of Need for Achievement to explain.
15. How can entrepreneurial motivation be developed and sustained? Suggest
strategies based on real-life examples or case studies.
16. Identify a successful entrepreneur and analyze their motivational factors
and key achievements. What lessons can be learned?

6: Entrepreneurial Personality
17. Define entrepreneurial personality. How does it differ from a manager's
personality?
18. What are the major personality traits of successful entrepreneurs? Support
your answer with psychological theories or frameworks.
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19. Design a profile of an ideal entrepreneurial personality. Do such profiles
exist in reality? Justify with examples.
20. How does personality influence entrepreneurial decision-making and risk-
taking?

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