Roshan Lamichhane roshanlamichane@gmail.

com Phone : 9851018474

ENTREPRENEURSHIP AND PROJECT MANAGEMENT


Syllabus

UNIT I
Meaning of Entrepreneurship - characteristics, functions and types of
entrepreneurship - Intrapreneur - Role of entrepreneurship in economic
development.

UNIT II
Factors affecting entrepreneur growth - economic non-economic.
Entrepreneurship development programmes - need - ob!ectives course contents
- phases - evaluation. Institutional support to entrepreneurs.

UNIT III
"ro!ect Management# Meaning of pro!ect - concepts - categories - pro!ect life
cycle, phases - characteristics of a pro!ect pro!ect manager - role and
responsibilities of pro!ect manager.

UNIT IV
"ro!ect identification - selection - pro!ect formulation contents of a pro!ect
report - planning commission guidelines for formulating a pro!ect - specimen of a
pro!ect report.

UNIT V
Source of finance for a pro!ect - Institutional finance supporting pro!ects pro!ect
evaluation - ob!ectives - types - methods.

TEXT BOOK

$. Entrepreneurial %evelopment # S.S.&han'a
(. Entrepreneurial %evelopment # ).*.+upta , -.". Srinivasan
.. "ro!ect Management # S.)houdhury
/. "ro!ect Management # %enis 0oc'
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Concept of Entrepreneurs!p
0i'e other economic concepts, entrepreneurship has been a sub!ect of much
debate and discussions. It is an elusive concept. 1ence, it is defined differently by
different people. 2hile some call entrepreneurship as " R!s# Be$r!n% 3 , others
view it " Inno&$t!n% " and yet others consider it 3Tr!'' ( See#!n% ") 0et us
consider some important definitions of entrepreneurship that will help us
understand what entrepreneurship e4actly is all about#
K$o $n* Ste&enson #Entrepreneurship is the attempt to create value
through recognition of business opportunity, the management of ris'-
ta'ing appropriate to the opportunity, and through the communicative and
managerial s'ills to mobili5e human, financial and material resources
necessary to bring a pro!ect to fruition.
Je$n+ B$pt!ste # 6n entrepreneur is an economic agent who unites all
means of production - land of one, the labour of another and the capital of
yet another and thus produces a product. *y selling the product in the
mar'et he pays rent of land, wages to labour, interest on capital and what
remains is his profit. 1e shifts economic resources out of an area of lower
and into an area of higher productivity and greater yield.
Scu,peter # Entrepreneurs are innovators who use a process
of shattering the status 7uo of the e4isting products and services, to set up
new products, new services.
A'-ert S$pero # Entrepreneurs ta'e initiative, accept ris' of
failure and have an internal locus of control.
N$t!on$' Kno.'e*%e Co,,!ss!on/ Entrepreneurship is the professional
application of 'nowledge, s'ills and competencies and 8 or of moneti5ing a
new idea, by an individual or a set of people by launching an enterprise to
pursue growth while generating wealth, employment and social good.
1ence, entrepreneurship is the act and art of
underta'ing innovations or introducing new things, finance and business acumen
in an effort to transform innovations into economic goods. 9his may result in
new organi5ations or may be part of revitali5ing mature organi5ations in response
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to a perceived opportunity. 9he most obvious form of entrepreneurship is that of
starting new businesses: however, in recent years, the term has been e4tended to
include social and political forms of entrepreneurial activity.
Entrepreneurial activities are substantially different depending on the type of
organi5ation and creativity involved. Entrepreneurship ranges in scale from solo
pro!ects ;even involving the entrepreneur only part-time< to ma!or underta'ings
creating many !ob opportunities. Many =high value= entrepreneurial ventures
see' &enture c$p!t$' or $n%e' fun*!n% ;seed money< in order to raise capital to
build the business.
9o sum up, the capacity and willingness to develop, organi5e
and manage a business venture along with any of its ris's in order
to ma'e a profit.
Entrepreneurship is a process involving various actions to be underta'en to
establish an enterprise. It is, thus, process of giving birth to a new enterprise.
Innovation and ris' bearing are regarded as the two basic elements involved in
entrepreneurship.
Inno&$t!on/ %oing something new or something different is a necessary condition
to become an entrepreneur. 9he entrepreneurs are constantly on the loo' out to
do something new, different and uni7ue to meet the changing demands. 9hey
may or may not be the inventors of new products or new methods of production,
but they possess the ability to foresee the possibility of ma'ing use of the
innovations for their enterprises.
)ustomers> tastes and preferences always 'eep changing, hence the
entrepreneurs need to apply invention after invention on a continuous basis to
meet the customers> changing demands of products.
E0$,p'e/ M$n%o 1ru!t23 Henr2 1or*3 !Pone 4 G$'$02 T$-
R!s# ( -e$r!n% / Starting a new enterprise always involves ris' and trying for doing
something new and different is also ris'y. 9he reason is not difficult to see'. 9he
enterprise may earn profits or incur losses because of various factors li'e
increasing competition, changes in customers> preferences, shortage of raw
materials, political disturbances, employees> reluctance and so on. Entrepreneur
has to be ris' ta'er rather than ris' avoider. 1is ris' bearing ability enables him
even if he fails in one time or one venture to persist on.

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C$r$cter!st!cs of Entrepreneurs!p

Entrepreneurship basically refers to the act of setting out on your own and
starting a business instead of wor'ing for someone else in his business. 1owever,
sometimes it could !ust be an endeavor of innovation. 2hile entrepreneurs must
deal with a larger number of obstacles and fears than hourly or salaried
employees, the payoff may be far greater as well.
9he basic concepts and characteristics of entrepreneurship are concerned with
developing a vision of what a company should be, and then e4ecuting that vision
by translating it into concrete steps and following through. Entrepreneurs tend to
be personally involved in building and shaping their companies, but business
success also depends on understanding personal limits, and developing strategies
and systems to transcend these limits. 6lthough certain lists of entrepreneurial
traits are prescribed by management e4perts, entrepreneurship is more a way of
thin'ing and behaving than a set of specific, sharply defined character traits.
9he principal characteristic traits of Entrepreneurship or Entrepreneur are#
Interest $n* V!s!on
9he first factor for entrepreneurial success is interest. Since entrepreneurship
pays off according to performance rather than time spent on a particular effort,
an entrepreneur must wor' in an area that interests him. ?therwise, he will not
be able to maintain a high level of wor' ethic, and he is most li'ely to fail. 9his
interest must also translate into a vision for the company@s growth. Even if the
day-to-day activities of a business are interesting to an entrepreneur, this is not
enough for success unless he can turn this interest into a vision of growth and
e4pansion. 9his vision must be strong enough that he can communicate it to
investors and employees.
M$n$%e,ent S#!''
Successful entrepreneurs see the big picture. 9hey have the s'ills and the humility
to define their own role in company operations, and the interpersonal s'ills to
successfully delegate the tas's they can@t complete themselves. Successful
entrepreneurs are successful managers, sharing the company@s vision and clearly
communicating the ways that this vision is infused into mundane daily tas's. 6n
entrepreneur@s management s'ills come into play in the process of carefully
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choosing employees, and these s'ills carry over into careful training, as well as the
daily challenges of motivating and organi5ing wor'ers.
6ll of the interest and vision cannot ma'e up for a total lac' of applicable s'ill. 6s
the head of a company, whether he has employees or not, an entrepreneur must
be able to wear many hats and do so effectively. For instance, if he wants to start
a business that creates mobile games, he should have speciali5ed 'nowledge in
mobile technology, the gaming industry, game design, mobile app mar'eting or
programming.
Or%$n!5$t!on $n* De'e%$t!on
2hile many new businesses start as a one-man show, successful
entrepreneurship is characteri5ed by 7uic' and stable growth. 9his means hiring
other people to do speciali5ed !obs. For this reason, entrepreneurship re7uires
e4tensive organi5ation and delegation of tas's. It is important for entrepreneurs
to pay close attention to everything that goes on in their companies, but if they
want their companies to succeed, they must learn to hire the right people for the
right !obs and let them do their !obs with minimal interference from
management.
R!s# $n* Re.$r*s
Entrepreneurship re7uires ris'. 9he measurement of this ris' e7uates to the
amount of time and money you invest into your business. 1owever, this ris' also
tends to relate directly to the rewards involved. 6n entrepreneur who invests in a
franchise pays for someone else@s business plan and receives a respectable
income, while an entrepreneur who underta'es groundbrea'ing innovations, ris's
everything on an assumption that something revolutionary will wor' in the
mar'et. If such a revolution is wrong, he can lose everything. 1owever, if he is
right, he can suddenly become e4tremely wealthy.
1!sc$' respons!-!'!t2
*usinesses run on money, so entrepreneurs must have a solid sense of how to
raise and manage funds. Successful entrepreneurs have an intuitive sense of how
much money they will need to run their companies, but they supplement this
sense with concrete documentation and calculations to mitigate uncertainties.
Entrepreneurs are willing to ris' money by ma'ing investments in building their
businesses, but they 'eep a close eye on the numbers in order to understand how
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much they are spending and whether their e4penditures are bringing about the
desired results.
Cre$t!&!t2
Starting a business is a creative endeavor that starts with conceptuali5ing a
product or service, and then building a practical infrastructure that can sustain
itself while delivering that product or service. Entrepreneurship re7uires creative
problem solving as well as creative product development, and entrepreneurs
have the creative freedom to thin' outside the bo4 and develop uni7ue strategies
that balance personal values with practical constraints.
H$r* 6or#
Most of the entrepreneurs wor' endlessly hard, especially in the beginning and
the same becomes their habit for their whole life. Sr! H$r! S$n#$r S!n%$n!$
once s$!* "I $&e $'.$2s fo''o.e* te *!ctu, t$t success co,es on'2 .!t 789
!nsp!r$t!on $n* :89 persp!r$t!on) Tere !s no su-st!tute for $r* .or#) One
,ust $&e $ focus to $c!e&e !s &!s!on) No-o*2 %ets $ c'e$n s'$te to .r!te on
$n* $s to st$rt .!t te focus *!rt2 s'$te e %ets) If one .$!ts for !*e$'
s!tu$t!on3 te t!,e .!'' ne&er co,e);
Des!re for H!% Ac!e&e,ent
9he entrepreneurs have a strong desire to achieve high goals in business. 9his
high achievement motive strengthens them to surmount the obstacles, suppress
an4ieties, repair misfortunes, and devise e4pedients and set up and run a
successful business.
Story of Sun!' M!tt$' / )ycle "arts, (A,AAA borrowed money, ma'ing capsules, then
the first push-button telephone set, the fist cordless, the first answering machine
and the first fa4 machine. -ow the story of 6irtel.
H!%'2 Opt!,!st!c
9he successful entrepreneurs have a positive approach toward things. 9hey do
not get disturbed by the present problems faced by them. 9hey become
optimistic for future that the situations will become favourable to business in
future. ; Story of To,$s A) A*!son/ at the age of BC, factory fire, little
insuranceDsaid " Tere !s %re$t &$'ue !n *!s$ster) A'' our ,!st$#es $re -urnt up)
T$n# %o* .e c$n st$rt $ne.); 9hen phonographD
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1ors!%t
9he entrepreneurs have a good foresight to 'now about future business
environment. In other words they visuali5e the li'ely changes to ta'e place in the
mar'et, consumer attitude and taste, technological developments etc and ta'e
necessary actions timely and accordingly.
Goo* Or%$n!ser
Earious resources re7uired for production are owned by different owners. 9hen,
it is the ability of the entrepreneur who brings together all re7uired resources for
setting up an enterprise and then produces goods.
Inno&$t!&e
"roduction is meant to meet the customers> re7uirements. In view of the
changing re7uirements of the customers from time to time, the entrepreneurs
initiate research and innovative activities to produce goods to satisfy the
customers> changing re7uirements and demands for the products.
E4ample of Maruti Su!u'i nowD.., %hiru *hai 6mbaniD - te4tile company..-
recession D- unfavorable ta4 system..-small powerloomsD relatively low costD
timely processingD specifications under his widely accepted brand.
Perse&er$nce
?ne of the 7ualities of successful entrepreneurs is that they possess and e4hibit
tremendous perseverance in their pursuits. 9hey do not give up their effort even
if they fail. 9hey might undergo a lot of suffering , but do not get disheartened.
Instead, they ta'e failures as 0essions and ma'e more dedicated and serious
efforts on the ne4t time.
Te$, Sp!r!t
Successful Entrepreneurs build teams and wor' with teammates. 9eam wor's to
achieve a common goal. 9eam shares collective accountability for the outcome of
the effort. 2or'ing in teams creates synergy. 1enry Ford says "Br!n%!n% peop'e
to%eter !s -e%!nn!n%3 #eep!n% te, to%eter !s pro%ress3 $n* .or#!n% .!t
peop'e !s success);
E4ample# 9he story of hare , tortoiseD$
st
0ession # "s'o. $n* ste$*2 .!ns te
r$ce;, (
nd
lession " f$st $n* ste$*2 .!ns te r$ce; , .
rd
0ession " core co,petence
.!ns te r$ce; , and the final 0ession " !nno&$t!on $n* te$, sp!r!t .!n te r$ce;
Roshan Lamichhane roshanlamichane@gmail.com Phone : 9851018474

1unct!ons of Entrepreneur
In practice, an entrepreneur does perform all the functions necessary right from
the genesis of business idea upto the establishment of an enterprise.
So,e M$<or 1unct!ons
"erception of mar'et opportunity
+aining command over scarce resources
"urchasing inputs
Mar'eting the products
%ealing with officials
Managing human resources within the enterprise
Managing customer and supplier relations
Managing finance
Managing production
6c7uiring and overseeing assembly of the factory
Industrial engineering
Fpgrading process and product
Introducing new production techni7ues and products

For the convenience of better understanding, the various functions performed by
entrepreneurs are broadly classified into four categories as mentioned below#
Entrepreneur!$' 1unct!ons
M$n$%er!$' 1unct!ons
Pro,ot!on$' 1unct!ons
Co,,erc!$' 1unct!ons