Entrepreneurship Development: Comprehensive Notes for Calicut University B.Com/BBA Students Subject Code: (Refer to your latest syllabus – typically CM1141 or similar for B.Com) Semester: V / VI (Core Course)
Unit 1: Introduction to Entrepreneurship 1.1 Concept of Entrepreneur An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The term derives from the French verb entreprendre , meaning "to undertake." Definitions:
Joseph Schumpeter: An innovator who introduces dynamic economic change. Peter Drucker: Someone who always searches for change, responds to it, and exploits it as an opportunity.
1.2 Entrepreneur vs. Manager (Exam Important) | Basis | Entrepreneur | Manager | | :--- | :--- | :--- | | Motivation | Profit and independence | Salary and promotions | | Risk bearing | Bears full financial risk | Bears no financial risk | | Reward | Profit (uncertain) | Salary (fixed) | | Status | Owner of the enterprise | Employee of the enterprise | | Decision making | Intuitive and autonomous | Rational and delegated | 1.3 Types of Entrepreneurs (Drucker’s Classification) entrepreneurship development notes pdf calicut university
Imitative Entrepreneur: Ready to adopt successful innovations from others (suitable for developing economies like India). Innovative Entrepreneur: Introduces new products, new methods, or discovers new markets. Fabian Entrepreneur: Cautious and skeptical; adopts changes only when compulsion is evident. Drone Entrepreneur: Refuses to adopt changes; sticks to traditional methods (risk of becoming obsolete).
1.4 Intrapreneurship An intrapreneur is an employee within a company who is given freedom to innovate and develop new products without the risk of failure. (Example: The team behind Sony PlayStation).
Unit 2: Theories of Entrepreneurship 2.1 Schumpeter’s Innovation Theory Fabian Entrepreneur: Cautious and skeptical
Core Idea: Development = Innovation (New combinations of factors of production). Five cases of innovation:
New product. New method of production. New market. New source of raw material. New form of organization (monopoly/trust).
Role of Banker: Finances the entrepreneur to break the circular flow of economic life. or discovers new markets.
2.2 McClelland’s Theory of Need for Achievement (n-Ach)
Psychologist: David McClelland. Key Propensity: People with high Need for Achievement (n-Ach) make better entrepreneurs. Characteristics: