Unit 1: Entrepreneurship
Entrepreneurship
• Definition and Importance: Entrepreneurship is the process of
creating, developing, and managing a business venture to make a profit
while taking on financial risks. It drives economic growth, fosters
innovation, and generates employment.
• Need and Scope: Entrepreneurship meets market needs by providing
goods and services, promotes innovation, and enhances competition. It
plays a crucial role in the economic development of a country.
• Entrepreneurial Competencies and Traits: Key traits include risk-
taking, innovation, leadership, vision, self-motivation, adaptability, and
resilience.
• Factors Affecting Entrepreneurial Development: Influencing factors
include economic conditions, government policies, access to finance,
education and skills, social and cultural norms, and infrastructure.
• Entrepreneurial Motivation (McClelland’s Achievement
Motivation Theory): This theory emphasizes the need for achievement,
where individuals are driven by the desire to excel and achieve goals.
Key elements are achievement, power, and affiliation.
• Conceptual Model of Entrepreneurship: This model illustrates the
dynamic process of starting and managing a new business, highlighting
the interaction between the entrepreneur, the environment, and the
enterprise.
• Entrepreneur vs. Intrapreneur: Entrepreneurs start and run their own
businesses, while intrapreneurs innovate and lead new initiatives within
existing organizations.
• Classification of Entrepreneurs: Entrepreneurs can be classified
based on their area of operation (e.g., agricultural, industrial, trading) or
by the type of business (e.g., tech startups, social enterprises).
• Entrepreneurial Development Programmes (EDPs): EDPs aim to
develop entrepreneurial skills through training and workshops, focusing
on improving business knowledge, skills, and attitudes.
Unit 2: Entrepreneurial Idea & Innovation
Innovation
• Introduction to Innovation: Innovation involves creating new ideas,
processes, or products that bring value. It is a key driver of economic
growth and competitive advantage.
• Types of Innovation:
◦ Product Innovation: Developing new or improved products.
◦ Process Innovation: Enhancing production or delivery methods.
◦ Business Model Innovation: Changing how a business creates,
delivers, and captures value.
Entrepreneurial Idea Generation
• Methods for Generating Ideas: Techniques include brainstorming,
mind mapping, SCAMPER (Substitute, Combine, Adapt, Modify, Put to
another use, Eliminate, Reverse), and observation.
• Identifying Business Opportunities: Involves market research,
analyzing trends, and understanding customer needs to identify gaps in
the market.
Management Skills for Entrepreneurs
• Essential Management Skills: Key skills include leadership, strategic
thinking, financial management, marketing, and operations
management.
• Managing for Value Creation: Entrepreneurs focus on creating value
for customers, which in turn generates revenue and profitability.
Creating and Sustaining Enterprising Models
• Business Model Development: Involves designing a framework that
outlines how a company creates, delivers, and captures value.
• Organizational Effectiveness: Achieving goals efficiently and
effectively through proper resource allocation, structure, and processes.
Unit 3: Project Management
Project Management Overview
• Meaning and Scope: Project management involves planning, executing,
and closing projects, ensuring they are completed on time, within
budget, and to the required quality standards.
• Importance of Project Management: It ensures project goals are
achieved efficiently, resources are used effectively, and risks are
managed.
• Role of a Project Manager: A project manager oversees the project,
manages the team, ensures effective communication, and mitigates
risks.
Project Life-Cycle
• Phases of Project Life-Cycle:
◦ Initiation: Defining the project and its objectives.
◦ Planning: Developing a detailed project plan.
◦ Execution: Implementing the project plan.
◦ Monitoring and Controlling: Tracking progress and making
necessary adjustments.
◦ Closure: Finalizing the project and handing over deliverables.
Project Appraisal
• Preparation of Project Feasibility Report: Analyzing the viability of a
project considering technical, financial, and market aspects.
• Technical Appraisal: Assessing the technical feasibility, including
technology, resources, and infrastructure.
• Environmental Appraisal: Evaluating the environmental impact and
sustainability of the project.
• Market Appraisal: Conducting market surveys to forecast demand and
sales.
• Managerial Appraisal: Assessing the managerial capacity and structure
to execute the project.
Unit 4: Project Financing
Cost Estimation and Working Capital
• Project Cost Estimation: Calculating the total costs associated with the
project, including initial capital and operational expenses.
• Working Capital Requirements: Determining the funds needed for
daily operations to maintain liquidity.
Sources of Funds
• Equity Financing: Raising capital through selling shares of the
company.
• Debt Financing: Borrowing funds that must be repaid with interest.
• Alternative Funding Sources: Includes venture capital, crowdfunding,
and angel investors.
Capital Budgeting
• Techniques and Importance: Methods like Net Present Value (NPV),
Internal Rate of Return (IRR), and Payback Period help in evaluating the
profitability of long-term investments.
Risk and Uncertainty in Project Evaluation
• Types of Risks: Financial, operational, market, and legal risks.
• Risk Assessment Methods: Techniques like sensitivity analysis,
scenario analysis, and Monte Carlo simulations.
Financial Projections
• Projected Balance Sheet: Estimating the financial position at a future
date.
• Projected Income Statement: Forecasting revenues and expenses.
• Projected Funds and Cash Flow Statements: Predicting cash inflows
and outflows.
Detailed Project Report (DPR)
• Components and Preparation: Includes project objectives, market
analysis, technical details, financial projections, and risk assessment.
Project Finance
• Structuring and Securing Finance: Arranging and obtaining
necessary funding through appropriate financial instruments.
Unit 5: Social Entrepreneurship
Social Sector Perspectives
• Understanding Social Entrepreneurship: Combines business
practices with a mission to address social issues, focusing on creating
social value rather than just profits.
Opportunities and Models
• Identifying Opportunities in the Social Sector: Involves recognizing
unmet social needs and developing innovative solutions.
• Successful Social Entrepreneurship Models: Examples include
microfinance institutions, fair trade organizations, and social enterprises.
Social Innovations and Sustainability
• Developing Sustainable Social Innovations: Creating products or
services that address societal challenges while ensuring environmental
and financial sustainability.
Marketing Management for Social Ventures
• Strategies for Social Enterprises: Involves targeting the right
audience, creating impactful messages, and leveraging digital platforms
for outreach.
Risk Management in Social Enterprises
• Identifying and Mitigating Risks: Analyzing potential risks and
implementing strategies to minimize their impact.
Legal Framework for Social Ventures
• Regulatory Considerations: Understanding the legal requirements,
including compliance, taxation, and intellectual property rights for social
enterprises.
