1. Entrepreneurship

2. A.H. Cole, “Entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain and enhance profit by production or distribution of economic goods and services”.

3. Nature/Characteristics/Features of Entrepreneurship An Economic Activity A Creative Activity A Purposeful Activity A Risk Bearing Function An Organising Function A Gap Filling Function A Dynamic Process An Innovative Function A Managerial Skill and Leadership Function

4. Intrapreneurship Intrapreneurship or intrapreneuring or corporate entrepreneurship is the process by which other new ventures are born within the confines of an existing corporation

5. Family Entrepreneurship - Characterstics High commitment to one family. Appreciation expressed with in the family Effective communication The ability to cope with these crises A sense of spiritual well-being

6. Paper Entrepreneurship new development during the 1980s A new class of entrepreneurs engaged in shrewd financial transactions, buying and selling of shares, buying and selling of business, master-minding take-overs and mergers have emerged. This class of entrepreneurs are said to involve in “paper entrepreneurship”.

7. Problems faced by entrepreneurs Internal problems 1.Problems related to funds 2.Problems related to administration 3.Problems related to marketing 4.Problems related to production 5.Problems related to up-gradation of techonology External problems

8. Role or Importance or Need of Entrepreneurship in Economic Development Capital formation Improvement in per capita income Generation of employment Balanced regional development : Improvement in living standards Economic independence Backward and forward linkages

9. Types of Entrepreneurship Proprietorship/sole proprietorship Partnership Joint stock company Co-operative enterprise

10. Proprietorship/sole proprietorship Proprietorship (also called sole trade organisation) is the oldest and the simplest form of entrepreneurship in India. The individual may borrow money and employ assistants but even then, he is responsible for the results of the business. This individual, who establishes the proprietorship type of enterprise, is called the proprietor or sole proprietor or sole trader.

11. Main/Salient Features One Man Ownership No Separate Business Entity Ownership and the Management is Same : In proprietorship, management rests with the proprietor himself/herself. Unlimited Liability : In case of losses, private property of the proprietor can also be utilised for meeting the business obligations to outside parties. All profits or losses belong to the proprietor. Less formalities : A proprietorship business can be started without completing much legal formalities.

12. Partnership In case of proprietorship form of entrepreneurship, there are certain limitations such as limited resources, limited skill and unlimited liability. Expansion in business requires more capital and managerial skills and also involves more risk. Now as a business enterprise expands beyond the capacity of a single person, a group of persons have to join hands together and supply the necessary capital and skills. When these persons come together, pool their capital and skills and organise a business, it is called a partnership.

13. Main Features An association of two or more persons. However, according to Section 11 of the Companies Act, 1956, the maximum limit of partners in case of a partnership for a banking business is 10 and for others it is 20. An agreement entered into by all its partners. The agreement may be oral or in writing or implied by the conduct of the partners. A lawful business. Business implies all such activities, which are carried out with profit motive. The business is being carried on by all the partners or any of them on behalf of all. Sharing of profits (or losses) of the business.

14. Joint Stock Company Joint Stock Company has become the dominant form of ownership for large-scale enterprises because it enables collection of vast financial and managerial resources with provisions for limited liability and continuity of operations

15. Features It is a separate legal entity. It is an artificial legal person created by law and existing only in contemplation of law. It enjoys perpetual succession. Company possesses limited liability. It has a common seal. Transferability of shares. Separation of ownership and management. Incorporated association of persons

16. Types of Companies Private Company Public Company

17. Private Company Under section 3(i)(iii) of the Companies Act, a private company has been defined as a company which by its Articles of Association : Restricts the right to transfer the shares, if any, Limits of number of its members to fifty, and Prohibits any invitation to the public to subscribe for the shares or the debentures of the company.

18. Public Company Under Section 3 (i) (ii) of the Companies Act, a public company means a company which is not a private company. It : lays down no restrictions on the transfer of its shares. does not limit the maximum number of its members; and can invite public for subscribing its shares and debentures.

19. Co-operative Co-operative is another form of entrepreneurship, which is the form of organisation, based on the philosophy of self- help and mutual help. The main feature of a co-operative organisation is that it aims at rendering services in place of earning profits

20. Main Features Mutual Co-operation Voluntary Organisation Democratic Management Service Motive Capital and a Definite Return thereon Government Control Distribution of Surplus on the basis of contribution of the member Training Facility Political & Religious Indifference

21. Discussion Questions Define entrepreneurship and explain its main characteristics. “Innovation is the hallmark of entrepreneurship.” Discuss. “An Entrepreneur has an important role to play in the economic development.” Comment. or “Entrepreneurship is essential for the creation of new employment and balanced economic development.” Explain (Meerut 2005) Write skill, behaviour and attributes of an entrepreneur. Define and explain various kinds of entrepreneurship structures ? “Entrepreneurship is purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain and enhance profit by production or distribution of economic goods and services.” Comment. “ In the modern economic society entrepreneur has been called the captain of the industry.” Why? (Meerut 2007 )