What did you understand by the term corporate entrepreneur or Intrapreneur?

An Intrapreneur like individual works inside a large company, and acts to get things done, to manage
large critical projects, and/or to develop new products. These individuals usually start as successful
project managers.
The Intrapreneur or corporate entrepreneur is usually an employee of a large organization who uses
the resources and capabilities of the organization, rather than their own, to put their innovative
ideas to practice and align their goals to the organizational goals.

Give a brief about Entrepreneurial Motivation.

Entrepreneurial motivation is the process that motivates an entrepreneur to
a. always stay in the direction of their goal
b. bring about the best of their efforts
c. consistently hanging around their goal
to achieve their entrepreneurial goal.

Define competency.
Competency refers to a set of well defined behaviors that act as a road-map to recognize, measure
and develop all the necessary behaviors required by a person to perform a job or achieve a goal.

In which direction does the value Respect for work guide and direct an entrepreneur?
The value Respect for work provides the goal direction for an entrepreneur and guides and directs
them to pursue a career or path where in the growth and development is highly in proportion to the
level of efforts they put in.

What are the features of fabian entrepreneurs.

Fabian entrepreneurs are Cautious, lazy and shy behavior, do not venture or take risk.

Hero Motocrop manufactures two wheelers and provide services. This is an example of which
type of entrepreneur?
Industrial entrepreneur.

They are highly ambitious are normally not satisfied by slow progress in their jobs. This applies
for which entrepreneur?
Innovative Entrepreneur

When it wanes, as it surely will in difficult times, take some guilt time. This statement shows
which attitude of an entrepreneur.
Attitude is gradually learnt over a period of time. The process of learning attitude starts from
childhood and it continues throughout the life of a person.

Why attitude is called pervasive?

They are formed in the process of socialization and may relate to anything in the world.
For instance the experience a person had after using a cell phone might form a positive or negative
attitude towards the manufacturing company of that phone.

1 Chapter-2 An Entrepreneur| LPSIS

Give a brief of each of the features of attitude.
The following are the features of the attitude.
a. Acquired: The attitude is not acquired by birth. During childhood we acquire the attitude
mostly from the family members. As we grow, we start acquiring the attitude from the
society. We acquire the attitude gradually (not instantaneously). The process of acquiring
the attitude remains throughout the life span.
b. Affects Behaviour: People behave in accordance to their attitude. In the absence of an
influence, people with certain attitude behave in an intended way.
For instance, when you enter a mobile store, you want to purchase a specific model of a
certain company in the absence of any external influence. Attractive ads displayed in the
store can influence you and change your behaviour(to purchase a different model or a
phone of a different company). Even the sales man/girl might influence you to purchase a
different model or brand. But in the absence of these external intervention to change your
behaviour, you behave as per your attitude.
c. Invisible: Attitude is purely psychological and is not externally visible. However, depending
on the behaviour a person exhibits towards a commodity or person or country, we can guess
the attitude of a person. For instance, depending upon the interest shown by a student on a
specific subject, we can infer that the student has a positive attitude towards that subject or
faculty.
d. Pervasive: An individual acquires an attitude through the social interaction with different
individuals in the society. Different incidents and interactions with others form different
attitudes in a person. Thus the attitude is not just developed by a person and many external
factors are involved in forming an attitude in a person.
For instance the experience a person had after using a cell phone might form a positive or
negative attitude towards the manufacturing company of that phone.
Another example is the experience a person had with the water in a restaurant a restaurant
might form a positive or negative attitude about the restaurant itself.
Thus it is clear that the attitude is pervasive by nature.

Explain these core values.

Respect for work
The value Respect for work provides the goal direction for an entrepreneur and guides and directs
them to pursue a career or path where in the growth and development is highly in proportion to the
level of efforts they put in.
All the successful entrepreneurs are the ones who have high respect for work and believe in hard
work.
Innovation and Creativity
Innovation and creativity are the most important core values of entrepreneurs. While creativity
guide an entrepreneur to dream about creative ideas to improve an existing product or service or
solve a problem, innovation guides them to put their ideas into practical use.
An entrepreneur exhibits innovation by
a. Being unique and original in their solution.
b. Contributing critical inputs for a new idea
c. Develop or Improve the existing products or services
d. Evaluating the new ideas
e. Focusing on the solution even when failure occurs
f. Go for a continuous search for problems in the society (so that they can resolve them)
2 Chapter-2 An Entrepreneur| LPSIS
Give a brief about various types of entrepreneurs according to Danhof.
Entrepreneurs are broadly categorized into four different types according to C.Danhof .
1. Innovative : These entrepreneurs innovate new products or services or improve upon them.
They are very aggressive and intelligent to put their ideas into practice. These are common
among the developed countries.
2. Imitative : They follow the innovative entrepreneurs and are flexible to adopt their ideas.
They start the enterprise by imitating other peoples ideas. They bring about the change and
are very crucial for the underdeveloped economic societies
3. Fabian : Fabian entrepreneurs are the entrepreneurs with the following features.
a. Adopt and follow conventional approaches
b. Belong to family business
c. Cautious
d. Display lazy and shy behaviour
e. Exhibit resistance to venture or risk(This can be considered as their crucial
behaviour)
f. Firm in their rigid and fundamental approach.
g. Go for a change only for the fear of failure and loss.(This can also be considered as
their crucial behaviour)
4. Drone : These are laggards who follow the traditional way of doing business and are
reluctant to any change, even if they face losses. They do not utilize the opportunities they
come across.

Why is an Intrapreneur crucial for an organization? Or Importance of an intrapreneur .

An Intrapreneur crucial for an organization because of the following reasons.
a. They help the organization to innovate a new product or service.
b. They work in accordance the organizations culture.
c. They work independently while being an integral part of the team structure.
d. They align their thought process with the best interests of the enterprise they are working
for.
e. They have great influence on their colleagues.
f. They put their entrepreneurial spirit to the best of the interests of the enterprise they are
working for.
g. They work on a win-win situation.

Give a brief about Googles Innovation time off Intrapreneurship program. Or what is innovative
time off in an Intrapreneurship program.
Innovation time off is a motivation process, used by Google, to encourage the employees. In this
program every employee spends 20% of their time to work on projects that interest them. This
Intrapreneurship program involves
1. Select a project and submit the proposal
2. Evaluate the project
3. Approval of the project
4. Monitor the progress of the project.
Several of Googles products and services like Gmail, Google news, Orkut and adsense are products
of this Innovation time off Intrapreneurship program. According to an announcement, half of the
new products or services from Google were from this programe.
3 Chapter-2 An Entrepreneur| LPSIS
What are all the various sources through which we acquire attitude? Or The thoughts, felings and
tendencies to behave are acquired gradually. In this light of this statement describe the sources
of attitude.
The following are the various sources through we acquire the attitude.
a. Family members : At tender ages, the family member have a strong influence in the
formation of attitude. It could be positive or negative.
b. Need : Necessity changes our attitude others or objects. For instance, the need to reach the
school or office, might change his attitude towards possessing a own vehicle as against the
public transportation
c. Group Associations : The groups that we belong to will have a great influence. For instance,
if youre in MPC group in 10+1, you might have positive attitude towards Maths. Being part
of a soccer group might lead to development of negative attitude about another sport.
d. Influential Others: A friend or a relative might influence you to form a positive attitude
towards an object or product or person. For instance, your friend might influence you to
develop a positive attitude towards a sport. Your favourite star might influence you (through
ad) to develop a positive attitude towards a certain four wheeler.

Attitude is not by birth, it is acquired explain.

Attitude is our behaviour towards a person, place, object or event, either positively or negatively.
We are not exposed to a person or place or object or event when were born. It is only after we start
growing that we come across these. Thus we can say that one do not possess an attitude by birth.
At tender ages, family members have a great influence in developing an attitude. These attitude will
start becoming stronger as we grow.
Coming across various situations and meeting people will start influencing us and we start
developing new attitudes. Thus we can say that the development of attitude is a gradual process.

Which types of entrepreneurs are over-cautious?

Fabian entrepreneurs are over-cautious and have the following features.
a. Adopt and follow conventional approaches
b. Belong to family business
c. Cautious
d. Display lazy and shy behaviour
e. Exhibit resistance to venture or risk(This can be considered as their crucial behaviour)
f. Firm in their rigid and fundamental approach.
g. Go for a change only for the fear of failure and loss.(This can also be considered as their
crucial behaviour)
These are the entrepreneurs who are the last to adopt the changes in the technology, environment
and trend set of consumer behaviour. They put their enterprise at the risk of losing the business.

Describe the most import core values of the entrepreneurs. Or Innovation and creativity both are
interrelated. Explain
Innovation and creativity are the most important core values of entrepreneurs. While creativity
guide an entrepreneur to dream about creative ideas to improve an existing product or service or
solve a problem, innovation guides them to put their ideas into practical use. Thus without creativity
there is no innovation and just dreaming of a creative product or service is not sufficient to start an

4 Chapter-2 An Entrepreneur| LPSIS

enterprise. Thus we can say that both creativity and innovation are interdependent.

Compare and contrast the entrepreneur and the employee.

Feature Entrepreneur Employee
Motive To start an enterprise for personal Provide service in an enterprise of their
satisfaction and to commercially choice and work as per their aptitude and get
exploit their innovative products or a secured employment.
services.
Role Owner of the enterprise and the sole Servant in the enterprise with limited
decision maker. authorities.
Responsibilities They bear all the risk and constantly They do not bear the risk and work for only
working for the enterprise. specified work hours.
Benefits They take all the profits earned by They take fixed salary. Sometimes they get
the enterprise. The profit is bonus, if any, during special occasions or
uncertain at times. In addition to this depending on their performance. Their
they enjoy the success of the takeaway income is limited. They can not
enterprise. have the sense of ownership of the
enterprise.
Innovation They are constantly watching for the They perform their day to day activities of the
changes in the market and the job and meet the targets set by the business.
environment to innovate better
products or services and to drive the
organization towards its goal.
Qualification They should possess the They should have an educational qualification
entrepreneurial qualities like depending on the nature of the job. For
a. Self-motivated instance, an engineer should have a degree in
b. Creative and Innovative B.E/B.Tech/M.Tech, a manager should have
c. Ability to gauge the future an M.B.A in production or marketing etc. The
d. risk-taking qualities like being creative, persistent would
e. risk-bearing be an added advantage.
f. Persistence

Compare and contrast an intrapreneur and an entrepreneur

Intrapreneur Entrepreneur
Theyre employees of an enterprise. Theyre owners of an enterprise.
They do not bear any risk associated with the They are risk-bearing and risk-taking.
entrepreneurship.
They are instructed to work on a special Theyre motivated to innovate a new product or
project or idea. service or put an idea into practice.
They use the resources and capabilities of their They risk all of their own resources and capabilities
organization.
Their success is at the disposal of the Theyre their own bosses and work their way
management of the organizations. towards their success.

5 Chapter-2 An Entrepreneur| LPSIS

 Intrapreneur Entrepreneur
They work for the best of the interest of the They setup the organization as per their interest.
organization.
These are growing class of 21st century These are growing class of 21st century
employees. entrepreneurs.

Persistence - Explain
Many of the entrepreneurial ventures are unique and new. So, they need a very close watch. Once
the product or service is in place, it should be marketed. If the market for the new product does not
exist, the entrepreneur should find new ways to create the market, for selling their product or
service. During this process, they encounter many hurdles. The entrepreneur should be highly
persistent in their efforts and should not give up. Thus persistence is a vital entrepreneurial
competency that the entrepreneur should possess.

Leadership Explain
An entrepreneur should also be an effective leader who should be able to guide and motive his/her
entire team. Whenever a company faces problem it is the will power and effective business acumen
and communication skills which oversees the success of the corporation.

Systematic planning - explain

Every enterprise requires the availability of resources like Time, Funds and Labour. In order to put all
of these resources to the optimum use, and to spend them in the right direction, they should
prepare a detailed systematic planning. They should strictly implement this systematic planning to
drive all of their resources towards the goal.

What are business ethics?

Bisuness Ethics can be defined as the critical, structured examination of how people and institutions
shold behave in the world of commerce. It is the study of standard of business behavior that
promote human welfare and the good.

How do you segregate the entrepreneurs based on the technology?

Depending on the use of technology entrepreneurs are classified as
i. Technical entrepreneurs : These entrepreneurs use their
a. Knowledge
b. Specialization
c. Skill
to develop new or improved products or services. They are technology oriented. Usually
they pay more attention production rather than marketing.
ii. Non-Technical entrepreneurs: They focus on innovative marketing and distribution
strategies to expand their business. They usually do not pay much attention to the technical
details of the product or service.

How do you segregate the entrepreneurs based on the motivation?

Based on the motivation, the entrepreneurs are segregated as

6 Chapter-2 An Entrepreneur| LPSIS

 a. Spontaneous : They are self-motivated and also known as natural entrepreneurs. They
undertake entrepreneurship for personal satisfaction in work, ego or status. They are highly
creative.
b. Induced : These entrepreneurs undertake entrepreneurship to grab the opportunities that
come their way like governments support for prospective entrepreneurs etc. Some times,
the circumstances like unemployment or not satisfied by their current job will also force
them to adopt entrepreneurship.
c. Motivated : These entrepreneurs are highly ambitious and are motivated by their desire to
put their talent or skill into practical use. They adopt the entrepreneurship as theyre
confident of their idea turning into a successful venture. Theyre further motivated when
their innovative product or service is adopted by the market and bring them profits.

Draw the diagram depicting the entrepreneurial values.

According to Abraham Maslows Hierarchy of Needs theory, What is the role esteem plays on
human beings? Or Human beings require respect in the society- explain.
According to The Maslow Hierarchy of Needs Theory, esteem is a typical human desire to be
accepted and valued by others. To achieve this they often engage themselves in a hobby or
profession that could bring them reputation.
Internally all people will have self-respect, self-esteem, desire for esteem from others. Self-esteem is
critical for survival. It contributes majorly to the normal and healthy development of a person. Lack
of esteem results from imbalance and could lead to inferiority complex.
In addition to inner esteem factors, people also have a need for external esteem factors like
Appreciation
Attention
Dominance
Fame
Glory
Prestige
Recognition
Reputation
Thus esteem plays a vital role, both internally and externally on human beings. It has a huge impact
on their personal growth.
7 Chapter-2 An Entrepreneur| LPSIS
How does the competency Creativity and Innovation help the entrepreneurs to achieve their
goal?
Few individuals have creativity and innovation as a basic characteristic. This help them to
achieve their goal.
In certain cases, they may not have new and creative ideas to introduce a new product or
service. But they use creative ideas and innovate the existing products or services(make
them), to meet the challenges of a situation.
Thus, the competency Creativity and Innovation helps the entrepreneurs to create wealth
with very small effort.
This also brings them numerous opportunities, as they do not have to innovate a new
product or service right from scratch. They just have to use their creativity and innovation to
improve upon the existing product or service, to ease out any challenges.

What are the benefits an organization gets by supporting the Intrapreneurs?

An organization gets the following benefits by supporting the Intrapreneurs.
a. Intrapreneurs have entrepreneurial competencies in them. Thus the organization is assured
that the new special projects or ideas get the due attention.
b. Intrapreneurs worn on a win-win situation. Thus the organization is guaranteed of best
output.
c. The organization gets new opportunities (the Intrapreneurs ideas) to capitalize.
d. By supporting and encouraging the Intrapreneurs, they will be able to retain highly talented
and motivated employees. Otherwise, they quit the job and join a competitor. Sometimes
they themselves become competitors by starting a new enterprise.
e. With their entrepreneurial thoughts, the Intrapreneurs are always thinking of better
products or services. This helps the organization to keep pace with the competing markets.

Explain the Motivation process through the model.

Motivation is an essential process. The following model explains the motivation process. Its various
components can be summarized as follows.

a. Unsatisfied Need : Every human being has an instinct to satisfy their needs or desires or
expectations. Sometimes the needs are satisfied and sometimes they are unfulfilled. This
leads to tention.
b. Tention : Unsatisfied needs cause tention in a persion. To gt rid of tension they will start
searching for ways.
8 Chapter-2 An Entrepreneur| LPSIS
 c. Drives : Searching for relief from tension leads them to the drives that relieve the tention.
d. Search behaviour : These drives lead to certain search behaviour to find means to satisfy
their needs.
e. Need fulfilled : The need is fulfilled once the means to satisfy their need is found.
f. Reduced tension : Once the need is satisfied, the tension is reduced.
Once the satisfaction is completed, new unsatisfied needs will arise. This process continues.

Support the fact that the entrepreneurs can be successful only by following the social ethical
standards.
While conducting business, the enterprise should guard itself from potentially controversial issues
such as
a. Aversion from corporate social responsibility
b. Bribery
c. Corporate Governance
d. Discrimination
e. Exploitation by insider trading
f. Fiduciary responsibilities
The study of proper business policies and practices related to the above controversial issues is know
as Business ethics. Business ethics are often guided by law. Sometimes they provide the basic
framework that business chooses in order to gain public acceptance.
The entrepreneur, while doing the business, interacts with the social environment. The
entrepreneurs success purely depends on how the external environment perceives his idea. Any
sort of non-adherence to business ethics is likely to put them on the verge of fatality. They should
adopt what is termed as Social Entrepreneurship, Corporate social responsibility, Social corporate
entrepreneurship.
Focusing completely on the business problems is likely to overlook ethical problems. So, they should
be cautious. Non-adherence to business ethics has crashed the business giants like Enron,
WorldCom, Anderson etc. So, it is essential for the entrepreneur to adhere to Business ethics for
the success of the enterprise.
Once the business is successful, few of the ethical standards that help the entrepreneur to retain
their success are
a. Appropriate measures to maintain quality and quantity standards
b. Bearing the environmental responsibilities
c. Conforming to the labour laws.
d. Discouraging the child labour.
e. Efficacious usage of the natural resources

What did you understand from the McClellands theory of motivation?

McClelland stated his Theory of Motivation after conducting his experiments on more than
thousand people, based on the achievement. These needs determine the way in which a person is
motivated. Recognizing the dominant need in any person help us to understand how that person is
motivated. His theory states that every human being is motivated by the following three factors,
depicted in the diagram.

9 Chapter-2 An Entrepreneur| LPSIS

 a. Achievement: People have an urge for achievement. This need is characterized by
i. Finding solutions to complex problems.
ii. Acquiring specialized or complex skills
iii. Setting challenging goals and achieving them.
iv. Like to receive regular feedback on their progress and achievement.
v. Setting a goal for themselves and get recognition when they succeed.
b. Affiliation : This need is characterized by
i. Favour for the teamwork
ii. Maintain interpersonal relations
iii. Tend to reduce high risk and uncertainty
c. Power : This need is characterized by
i. Desire to control and influence others
ii. Likes to win arguments
iii. Desire to beat their competitors
iv. Desire to persuade others and prevail.

Categorize and explain the types of entrepreneurs according to their business.

According to the type, nature and size the business, entrepreneurs can be categorized into five types
as follows.
1. Business Entrepreneur: The business entrepreneurs are the most common types of
entrepreneurs. They innovate a new product or service. They start the enterprise to exploit
their idea economically. Mostly found in the small trading and manufacturing enterprises.
2. Trading entrepreneurs: They perform the trade either in-house or overseas or both. They
closely watch the market for the demand for any product or service and exploit it
economically. Theyre the fore-runners to implement the ideas and stand ahead of others.
3. Industrial Entrepreneurs: An industrial entrepreneur is one who establishes enterprises that
manufactures products or provide services which are highly in demand. They exploit the
economic resources into economically viable ventures. The enterprise, Maruti Suzuki India
Ltd, which is in the business of car manufacturing and offering car related services is an
example of such enterprises.
4. Corporate entrepreneurs: These are the entrepreneurs who control or manage or organize
an enterprise in the most productive and economic way through their innovative ideas. The
promoters of the corporations, those performing the business or trade or established an
industry fall into this category.

10 Chapter-2 An Entrepreneur| LPSIS

 5. Agricultural entrepreneurs: They are in the business of agriculture and related products or
services. They use innovative techniques, machinery, equipment, irrigation methods to grow
and market the crops.

Describe the various entrepreneurial competencies that an entrepreneur should possess.

Creativity and Innovation:
Innovation and creativity are the most important core values of entrepreneurs. While creativity
guide an entrepreneur to dream about creative ideas to improve an existing product or service or
solve a problem, innovation guides them to put their ideas into practical use.
An entrepreneur exhibits innovation by
a. Being unique and original in their solution.
b. Contributing critical inputs for a new idea
c. Develop or Improve the existing products or services
d. Evaluating the new ideas
e. Focusing on the solution even when failure occurs
f. Go for a continuous search for problems in the society (so that they can resolve them)

Enterprise Launching: Entrepreneurs should possess the competency to identify the opportunities
and make best use of the resources at their disposal, by launching an enterprise. This trait is what
stands them apart from the crowd.

Enterprise Management: Managing an enterprise is a crucial competency that an entrepreneur

should possess. The success of the enterprise depends on the the level of an entrepreneurs
expertise in enterprise management. They should be well acquainted with various functions in the
management like
a. Planning
b. Organizing
c. Staffing
d. Directing
e. Leadership
f. Communication
g. Motivation

Information seeking : The amount of information an organization has at its disposal plays a crucial
role in the success of the organization. The entrepreneur should gather the information about
changing trends in consumer behaviour, market demand, new technology being introduced,
competitor analysis etc. This helps them in decision making process, thus driving the organization
towards its goal.

Initiative : This is one of the basic competency that every entrepreneur should possess. Taking
initiative in the starting point in an entrepreneurial process. The entrepreneur should be vigilant of
the consumer behaviour, market dynamics, launch of new products to spot an opportunity. Once the
opportunity or idea is spotted they should take the initiative to start the entrepreneurial process.
Once the entrepreneurial process is started they should increase the pace to establish an enterprise.

Leadership : Many of the entrepreneurial ventures are unique and new. From the start of the
enterprise to the stage where the product or service is introduced into the market, there is lot of
11 Chapter-2 An Entrepreneur| LPSIS
uncertainty associated and the entire enterprise has to go through many hurdles and roadblocks.
During this, it is essential to guide and motivate the team towards the goal. To achieve this the
entrepreneur should possess effective leadership qualities to keep the team focused on the goal of
the enterprise. As a leader, the entrepreneur should exhibit
strong will power
effective business acumen
and communication skills
to drive the enterprise towards the goal, during difficult times.

Persistence : Many of the entrepreneurial ventures are unique and new. So, they need a very close
watch. Once the product or service is in place, it should be marketed. If the market for the new
product does not exist, the entrepreneur should find new ways to create the market, for selling their
product or service. During this process, they encounter many hurdles. The entrepreneur should be
highly persistent in their efforts and should not give up. Thus persistence is a vital entrepreneurial
competency that the entrepreneur should possess.

Persuasion and Influencing Others : While performing various entrepreneurial functions, the
entrepreneur has to deal with various individuals and institutions. They should be able persuade
their ideas and influence others so that other people are ready to accept their products are services.
To do so theyve to be well acquainted with the innovative features of their products or services and
how their products much better than those prevailing in the market.

Problem solving : The entrepreneurs start their enterprise to commercialize a new product or
service. As the product or service is new and the enterprise is just started, there will be lot of
obstacles they would come across in the path of their goal. They should be capable of coming up
with a number of different solutions to the problem at hand. They should seek alternate strategies
and solutions. They should possess strong problem solving skills to achieve this.

Quality Performance : They should have a tendency to maintain quality standards in their products
or services. They can achieve this by establishing their own standards or adopt the standards set by
others. Maintaining high quality standards will help them to win the consumer loyalty.

Risk taking and risk management : As the area into which the entrepreneur is venturing is new,
there lot of uncertainty associated at various levels. This poses risk at various stages of
entrepreneurial process. The entrepreneur should be risk taking to move ahead. At the same time,
after theyve started the enterprise and the risk surfaces, they should be capable of managing the
risk.

Systematic Planning : Every enterprise requires the availability of resources like Time, Funds and
Labour. The entrepreneurs gather funds majorly from their personal savings. They put all their
efforts and time to establish their enterprise. Any deviation in the planning of the enterprises
activities will be disastrous and result in the collapse of their dream. In order to put all of these
resources to the optimum use, and to spend them in the right direction, they should prepare a
detailed systematic planning. They should strictly implement this systematic planning to drive all of
their resources towards the goal.

12 Chapter-2 An Entrepreneur| LPSIS

How do systematic planning and persistence help entrepreneurs become effective leaders? Or
Why should the entrepreneurs exhibit the leadership qualities like persistence and systematic
planning.

Many of the entrepreneurial ventures are unique and new. So, they need a very close watch.
Once the product or service is in place, it should be marketed. If the market for the new
product does not exist, the entrepreneur should find new ways to create the market, for
selling their product or service.
During this process, they encounter many hurdles. The entrepreneur should be highly
persistent in their efforts and should not give up. Thus persistence is a vital entrepreneurial
competency that the entrepreneur should possess.
Every enterprise requires the availability of resources like Time, Funds and Labour. The
entrepreneurs gather funds majorly from their personal savings. They put all their efforts
and time to establish their enterprise.
Any deviation in the planning of the enterprises activities will be disastrous and result in the
collapse of their dream. In order to put all of these resources to the optimum use, and to
spend them in the right direction, they should prepare a detailed systematic planning.
They should strictly implement this systematic planning to drive all of their resources
towards the goal. Thus these two competencies help the entrepreneur to become an
effective leader.

Describe various entrepreneurial attitudes. Or Essential Attitudes of an entrepreneur.

To be a successful entrepreneur the entrepreneur should possess the following attributes.
a. Adopting the change: The entrepreneurs should be ready to adopt the change and move
out of their comfort zone. A change is necessary to achieve something. Change can be either
in goal, technology, place or employees etc. They should be quick to adopt the change to
grab the opportunities associated with the change.
b. Courageous: The entrepreneur should have the courage and not afraid of failure. They
understand that failures are stepping stones to success and never let the fear of failure hold
them from ventures. Even the investors understand this fact. When it comes to a choice,
other things being equal, an investor would prefer a person who has failed than a person
who has never ventured.
c. Decision making in time: The entrepreneurs should be able to take quick decisions. They
should be wise enough to decide on what to do. At the same time they should plan the
things in an organized way. This would help them to grab an opportunity without missing.
Otherwise, there is possibility of losing an opportunity.
d. Ethical: They should adopt and follow the business ethics and should be a role model for
their employees and other associates. The customer would like to do business with a person
who has ethics as compared to a competitor who is not ethical in practice.
e. Flexible: They should be flexible enough to adopt the changes in accordance with the
changes in the market and technology. Especially for a small scale venture, this flexibility will
be an added advantage as adopting the change would be easier, as compared to a large
scale enterprise. At the same time they should be rigid enough and stick to the core values
and ethical practices.

13 Chapter-2 An Entrepreneur| LPSIS

 f. Open-minded: They should be open to accept criticism and ready to accept their mistakes (if
any). They should win the confidence of the employees and other associates so that the
employees do not hesitate to give their honest opinions when they think that their employer
has taken a wrong decision, or when they have a better opinion. Entrepreneurs can convey
to the employees and other associates that theyre open to suggestions or they can convey
this message through a mission statement.
g. Passionate: Entrepreneurs should have passion in their work and love what theyre working
upon. This will help them to stay unaffected during tough times. This will also help them to
become role model for their employees. It is likely that the passion will decrease during
tough times. They should take some time off during these times. During this time they can
re-kindle the passion by reminding themselves of all the valid reasons about the motive
behind starting the enterprise and the advantage of being their own boss.
h. Resilient: Every business is likely to go through tough times at sometime or the other. When
there is a down fall, they should be resilient enough to rebound back on track. The loss
cannot be recovered. However, they should consider the setbacks as valuable lessons.
i. Self-caring: The entrepreneur plays critical role in moving the organization towards its goal.
Their non-availability in the enterprise due to health reasons is likely to put the enterprise in
chaos. They should take care of their health first, as theyre the prestigious asset of the
enterprise. Everything else is secondary. Being healthy improves their appearance and in
turn will bring positive energy and impact on the customers or employees or other
associates.
j. Self-confident: The entrepreneur should be confident enough about their pursuit or venture
and about taking it to its intended goal of success. Their confidence will have a positive
impact on the employees, customers and other associates with who theyve a day to day
interaction and thus improve the productivity of the enterprise.
k. Self-control: The success and profit shouldnt make the entrepreneur to be proud or get
them into the mode of lavish spending on luxuries. They should keep themselves under
control to preserve the profits for the tackling the uncertainties. They should not let the ego
come in their way to listen to other peoples ideas and suggestions with patience.
l. Trustworthy: They should create an environment to win the trust of their employees and
build a system of integrity in their enterprise. The same is applicable with the customers and
other stake-holders. Thus theyll be able to win the confidence of others which in turn have
a positive impact on the productivity and profitability of the enterprise and to win against
their competitors.

What did you understand from Maslows theory of needs or motivation?

According to Maslows theory of motivation or hierarchy of needs there are five elemental needs
based on which every individual is motivated. The following pyramid shows these needs, in a
hierarchy.
Physiological: They are at the bottom of the hierarchy. Unsatisfied physiological needs like food,
water sleep etc., create physiological and physical tension in a person and motivate the person
towards satisfying these needs. Once these needs are fulfilled, the person moves towards the next
motivating need i.e., Safety.

14 Chapter-2 An Entrepreneur| LPSIS

Safety: The need for security and shelter becomes the second motivating factor. This includes the
safety and security of family, employment, property etc. One would feel the need to live life that is
free from fear, tension and they want to be under the protection of order and law. People will put all
their efforts so that they get whatever is required to put them under security and protection. Once
this need is satisfied the need for the next motivating factor i.e, Love/Belonging drives them.
Love/Belonging: The third motivating need is the need for love and belonging. Humans by nature
are social loving. Getting connected with the relatives and family, making friends in the college or
office or in their locality or community will exhibit the effort they put to make them socially
belonging. Once these needs are satisfied the next motivating need i.e., Esteem becomes
predominant.
Esteem: Esteem is a typical human desire to be accepted and valued by others. To achieve this they
often engage themselves in a hobby or profession that could bring them reputation.
Internally all people will have
a. self-respect
b. self-esteem
c. desire for esteem from others
Self-esteem is critical for survival. It contributes majorly to the normal and healthy development of a
person. Lack of esteem results from imbalance and could lead to inferiority complex.
In addition to inner esteem factors, people also have a need for external esteem factors like
Appreciation
Attention
Dominance
Fame
Glory
Prestige
Recognition
Reputation
Thus esteem plays a vital role, both internally and externally on human beings. It has a huge impact
on their personal growth.
Self-Actualization: This is the highest need of a person. To achieve this they put constant effort to
develop themselves. This need motivate them to learn, create, understand and experience their
potential.

15 Chapter-2 An Entrepreneur| LPSIS

In what ways the employees are different as compared with entrepreneurs?
Feature Entrepreneur Employee
Motive To start an enterprise for personal Provide service in an enterprise of their
satisfaction and to commercially choice and work as per their aptitude and get
exploit their innovative products or a secured employment.
services.
Role Owner of the enterprise and the sole Servant in the enterprise with limited
decision maker. authorities.
Responsibilities They bear all the risk and constantly They do not bear the risk and work for only
working for the enterprise. specified work hours.
Benefits They take all the profits earned by They take fixed salary. Sometimes they get
the enterprise. The profit is bonus, if any, during special occasions or
uncertain at times. In addition to this depending on their performance. Their
they enjoy the success of the takeaway income is limited. They can not
enterprise. have the sense of ownership of the
enterprise.
Innovation They are constantly watching for the They perform their day to day activities of the
changes in the market and the job and meet the targets set by the business.
environment to innovate better
products or services and to drive the
organization towards its goal.
Qualification They should possess the They should have an educational qualification
entrepreneurial qualities like depending on the nature of the job. For
a. Self-motivated instance, an engineer should have a degree in
b. Creative and Innovative B.E/B.Tech/M.Tech, a manager should have
c. Ability to gauge the future an M.B.A in production or marketing etc. The
d. risk-taking qualities like being creative, persistent would
e. risk-bearing be an added advantage.
f. Persistence

Why should an entrepreneur should consider Business ethics are critical to sustain his business?
The entrepreneur, while doing the business, interacts with the social environment. The
entrepreneurs success purely depends on how the external environment perceives his idea. Any
sort of non-adherence to business ethics is likely to put them on the verge of fatality. They should
adopt what is termed as Social Entrepreneurship, Corporate social responsibility, Social corporate
entrepreneurship.
Focusing completely on the business problems is likely to overlook ethical problems. So, they should
be cautious. Non-adherence to business ethics has crashed the business giants like Enron,
WorldCom, and Anderson etc. So, it is essential for the entrepreneur to adhere to Business ethics
for the success of the enterprise.
Once the business is successful, few of the ethical standards that help the entrepreneur to retain
their success are
a. Appropriate measures to maintain quality and quantity standards
b. Bearing the environmental responsibilities
16 Chapter-2 An Entrepreneur| LPSIS
 c. Conforming to the labour laws.
d. Discouraging the child labour
e. Efficacious usage of the natural resources

What are the basic difference between Maslows and McClelland Theory of Needs?
Basis Maslows Hierarchy of Needs McClellands theory of Needs
Meaning This theory was proposed by Abraham McCellands need for Achievement theory is
Maslow and is based on the one of content theories of motivation
assumption that people are motivated emphasizing that human needs and
by a series of five universal needs. incentives cause human behaviour.
These needs are ranked, according to
the order in which they influence
human behaviour, in hierarchical
fashion.
Outline It actually outlines different things with McCelland outlined what he believed are
very specific examples of what is in three basic needs present in all people (in
each level of need. different intensities)
Content Maslows Hierarchy of Needs- people McClellands theory of Needs needs are to
try to satisfy the various needs some extent acquired and can therefore be
according to a specific hierarchical influenced, just as several simultaneous
pattern. needs influence a persons behaviour.
Levels of 5 levels are there: 3 needs motivate people
needs 1. Physiological 1. Achievement
2. Safety/security 2. Affiliation
3. Belongingness and Love 3. Power
4. Esteem
5. Self-actualization
Based on This theory was proposed by Abraham This theory was proposed by McClellands
maslow and is based on the and is based on the experiment, i.e.
assumption ,that people are motivated conducted, over 1,000 studies
by a series of five universal needs.
Order/Layer Until the lower-layer needs are No specific level in employees needs there
of needs satisfied, the will not move to satisfy is any order for the three needs; no
the upper-layer needs. particular one has to come first or last.
Usefulness Maslows can help you to use the McClellands theory can help you to identify
hierarchy to identify what drives your the dominant motivators of people on your
employees. term.
1. Helps to understand peoples 1. It can e used to for boosting morale
needs. Helps to motivate in employees.
employees. 2. It can be used to influence how you
2. Helps to decide rewards at set goals and provide feedback, and
each level. Helps in recognizing how you motivate and reward team
potential can be used to members. It also use these
describe the kinds of motivators to craft, to design the
information individuals seek job around your team members,
at different levels of ensuring a better fit.
development.

The government launched a programe for pollution free zones and provides financial assistance to
entrepreneurs. By inducing such assistance, Ms. A was induced to enter into entrepreneurship.
This include in which category? Explain.

17 Chapter-2 An Entrepreneur| LPSIS

An Entrepreneur who is fulfilling the ethics and moral responsibility towards society and should be
survives and grows.

Many problems are bound to come in the path of progress, Ratan Tata shifted the manufacturing
plant for Nano Cars from Singur to Sanand due to unforeseen complexities which type of
competency is shown here? Discuss.

18 Chapter-2 An Entrepreneur| LPSIS

Raju is a 16 year young boy, working hard to earn his living. He also tries to save some part of his
earning to acquire basic education he falls in which level of need as propounded by Maslow in his
Motivation Theory?

19 Chapter-2 An Entrepreneur| LPSIS