Entrepreneurship Essentials: Concepts and Definitions
What is Entrepreneurship?
Entrepreneurship is the process of identifying an opportunity, organizing resources, and taking the risk to create and manage a new venture with the aim of making a profit.
Example: A person notices that many people want healthy homemade food but lack the time to cook. They start a ‘tiffin’ (meal delivery) service, preparing and delivering fresh meals to offices and homes.
Defining an Entrepreneur
An entrepreneur is an individual who identifies gaps in the market, organizes resources, and takes the risk to create and manage a new venture with the aim of making a profit.
Example: Dhirubhai Ambani, who built Reliance from a small startup.
What is an Intrapreneur?
An intrapreneur is an employee within an organization who behaves like an entrepreneur by creating new ideas, products, or processes using the company’s resources. They contribute to innovation and growth without taking personal financial risk.
Example: Gmail was developed by a Google employee as an internal project, which later became a widely used email service.
Feasibility Study
A feasibility study is an analysis conducted to determine whether a project, business idea, or plan is practical, viable, and worth implementing before investing resources.
Example: Before opening a coffee shop, an entrepreneur studies customer demand, costs, and expected profits to assess its viability.
Entrepreneurship Development Program (EDP)
An EDP is a structured training program designed to develop entrepreneurial skills, knowledge, attitudes, and competencies among individuals who want to start, manage, or grow a business.
Examples of EDPs:
- PMEGP (Prime Minister’s Employment Generation Programme)
- EDII Training Programs
- Startup India Program
- MSME Entrepreneurship Skill Development Programmes (ESDP)
Self-Help Group (SHG)
A Self-Help Group is a small voluntary group, usually consisting of 10-20 people from similar socio-economic backgrounds, who come together to save money regularly and help each other through small loans and collective activities.
Example: Women in a village form an SHG, save a fixed amount every month, and use the pooled funds to start small businesses such as tailoring, dairy farming, or handicrafts.
Business Incubators
A business incubator is an organization or program designed to support the early-stage growth of startups. It acts as an entrepreneurial ecosystem, providing foundational resources such as physical workspaces, business coaching, networking, and funding connections to help new companies survive and scale.
Examples:
- NS Raghavan Centre for Entrepreneurial Learning (NSRCEL) at IIM Bangalore
- Kerala Startup Mission (KSUM)
Angel Investors
Angel investors are individuals who provide financial backing to startups and early-stage businesses in return for equity ownership. They also offer guidance and industry connections, becoming valuable allies for ventures.
Examples:
- Indian Angel Network (IAN)
- Anupam Mittal, Founder of Shaadi.com
Venture Capitalist
A venture capitalist is an investor or a firm that provides funding to early-stage, high-potential startups in exchange for equity or partial ownership. It is a form of private equity focused on startups and emerging companies that show potential for long-term growth.
Examples:
- Kalaari Capital (Dream11 and Myntra)
- Elevation Capital (Paytm and Meesho)
Entrepreneurial Behaviour
Entrepreneurial behaviour refers to the actions, attitudes, and qualities displayed by an entrepreneur in identifying opportunities, taking calculated risks, innovating, and effectively managing resources to achieve business objectives.
Example: A student starts an online crochet business after identifying the demand for handmade products.
Entrepreneurial Motivation
Entrepreneurial motivation is the set of internal and external factors that inspire an individual to start, manage, and expand a business venture. It may arise from the desire for profit, independence, achievement, or social recognition.
Example: A person opens a bakery to become self-employed and earn a higher income.
Sustainability in Entrepreneurship
Sustainability in entrepreneurship means conducting business activities in a manner that balances economic growth, environmental protection, and social responsibility. It ensures long-term business success without harming future generations.
Example: A company uses biodegradable packaging to reduce environmental pollution.
Operation Planning
Operation planning is the process of determining the resources, activities, schedules, and procedures required to produce goods or services efficiently. It helps ensure smooth business operations and optimum utilization of resources.
Example: A bakery prepares a daily schedule for purchasing ingredients, baking products, and delivering orders.