PROJECT MANAGEMENT & ENTREPRENEURSHIP

LECTURE NOTES

Unit-I Entrepreneurship: Entrepreneurship: need, scope , Entrepreneurial competencies & traits, Factors
affecting entrepreneurial development, Entrepreneurial motivation (Mc Clellend’s Achievement motivation
theory), conceptual model of entrepreneurship , entrepreneur vs. intrapreneur; Classification of entrepreneurs;
Entrepreneurial Development Programmes.
UNIT-I
Entrepreneurship is the ability and readiness to develop, organize and run a
business enterprise, along with any of its uncertainties in order to make a profit.
The most prominent example of entrepreneurship is the starting of new
businesses.
Peter F. Drucker, “Entrepreneurship is defined as a systematic innovation, which
consists in the purposeful and organized search for changes, and it is the
systematic analysis of the opportunities such changes might offer for economic
and social innovation”.
Joseph Alois Schumpeter is regarded as the father of entrepreneurship. He
introduced the concept of entrepreneurship.
entrepreneurship connected with land, labour, natural resources and capital can
generate a profit. The entrepreneurial vision is defined by discovery and risk-
taking and is an indispensable part of a nation’s capacity to succeed in an ever-
changing and more competitive global marketplace.
The entrepreneur is defined as someone who has the ability and desire to establish,
administer and succeed in a startup venture along with risk entitled to it, to make
profits. The best example of entrepreneurship is the starting of a new business venture.
Anyone who has the will and determination to start a new company and deals with all
the risks that go with it can become an Entrepreneur.
Entrepreneur + Capital = Products + Customers = Business.

The entrepreneur as an innovator who carries out new combinations to initiate

the process of economic development through introduction of new products, new
markets, conquests of new source of raw materials and establishment of a new
organization of industry. ( J. A. Schumpeter)

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Adam Smith, described entrepreneur as a person who only provides capital
without taking active part in the leading role in enterprise.
Adam Smith, “The entrepreneur is an individual, who forms an organization for
commercial purpose. She/he is proprietary capitalist, a supplier of capital and at
the same time a manager who intervenes between the labour and the consumer.
“Entrepreneur is an employer, master, merchant but explicitly considered as a
capitalist”.
Peter F. Drucker, “An entrepreneur is the one who always searches for change,
responds to it and exploits it as an opportunity. Innovation is the specific tool of
entrepreneurs, how they exploit changes as an opportunity for a different
business or different service”.
An entrepreneur is an individual who creates a new business, bearing most of the
risks and enjoying most of the rewards. The process of setting up a business is
known as entrepreneurship.
Entrepreneur is one who distinguishes as a person who undertakes to organise,
manage and assume the risk of running a factory and/or a business or an
enterprise.

“Entrepreneurs add to the gross national income. Existing businesses may remain
confined to their markets and eventually hit an income ceiling. But new products
or technologies create new markets and new wealth. Additionally, increased
employment and higher earnings contribute to a nation’s tax base, enabling
greater government spending on public projects. Entrepreneurs create social
change. They break tradition with unique inventions that reduce dependence on
existing methods and systems, sometimes rendering them obsolete.”

 A person who undertakes the risk of starting a new business venture is

called an entrepreneur.
 An entrepreneur creates a firm to realize their idea, known as
entrepreneurship, which aggregates capital and labor in order to produce
goods or services for profit.
 Entrepreneurship is highly risky but also can be highly rewarding, as it
serves to generate economic wealth, growth, and innovation.

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 Resources for Entrepreneurs

If entrepreneurs are willing to give up a piece of equity in their business, then they may
find financing in the form of angel investors and venture capitalists. Crowdfunding has
also become a popular way for entrepreneurs to raise capital, particularly through
Kickstarter or Indiegogo. In this way, an entrepreneur creates a page for their product
and a monetary goal to reach while promising certain givebacks to those who donate,
such as products or experiences.

Bootstrapping for Entrepreneurs

Bootstrapping refers to building a company solely from your savings as an entrepreneur
as well as from the initial sales made from your business. This is a difficult process as all
the financial risk is placed on the entrepreneur and there is little room for error. If the
business fails, the entrepreneur also may lose all of their life savings.

Types of Entrepreneurship
Small Business Entrepreneurship-These businesses are a hairdresser, grocery
store, travel agent, consultant, carpenter, plumber, electrician, etc. These people
run or own their own business and hire family members or local employee. For
them, the profit would be able to feed their family and not making 100 million
business or taking over an industry. They fund their business by taking small
business loans or loans from friends and family.

Scalable Startup Entrepreneurship-This start-up entrepreneur starts a business

knowing that their vision can change the world. They attract investors who think
and encourage people who think out of the box. The research focuses on a
scalable business and experimental models, so, they hire the best and the
brightest employees. They require more venture capital to fuel and back their
project or business.

Large Company Entrepreneurship-These huge companies have defined life-cycle.

Most of these companies grow and sustain by offering new and innovative
products that revolve around their main products. The change in technology,
customer preferences, new competition, etc., build pressure for large companies
to create an innovative product and sell it to the new set of customers in the new
market. To cope with the rapid technological changes, the existing organisations
either buy innovation enterprises or attempt to construct the product internally.

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Social Entrepreneurship-This type of entrepreneurship focuses on producing
product and services that resolve social needs and problems. Their only motto
and goal is to work for society and not make any profits.

Characteristics of Entrepreneurship
Not all entrepreneurs are successful; there are definite characteristics that make
entrepreneurship successful. A few of them are mentioned below:

 Ability to take a risk- Starting any new venture involves a considerable

amount of failure risk. Therefore, an entrepreneur needs to be courageous
and able to evaluate and take risks, which is an essential part of being an
entrepreneur.
 Innovation- It should be highly innovative to generate new ideas, start a
company and earn profits out of it. Change can be the launching of a new
product that is new to the market or a process that does the same thing but
in a more efficient and economical way.
 Visionary and Leadership quality- To be successful, the entrepreneur
should have a clear vision of his new venture. However, to turn the idea
into reality, a lot of resources and employees are required. Here, leadership
quality is paramount because leaders impart and guide their employees
towards the right path of success.
 Open-Minded- In a business, every circumstance can be an opportunity and
used for the benefit of a company. For example, Paytm recognised the
gravity of demonetization and acknowledged the need for online
transactions would be more, so it utilised the situation and expanded
massively during this time.
 Flexible- An entrepreneur should be flexible and open to change according
to the situation. To be on the top, a businessperson should be equipped to
embrace change in a product and service, as and when needed.
 Resiliency- Running your own business is extremely difficult, especially
getting one started from scratch. It requires a lot of time, dedication, and
often failure. A successful entrepreneur must show resilience to all the
difficulties on the road ahead. Whenever they meet with failure or rejection
they must keep pushing forward.
 Focus - Similar to resilience, a successful entrepreneur must stay focused
and eliminate the noise and doubts that come with running a business.
Becoming sidetracked, not believing in your instincts and ideas, and losing
sight of the end goal is a recipe for failure.

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  Communication Skills- Successful communication is important in almost
every facet of life, regardless of what you do. It is also of the utmost
importance in running a business. From conveying your ideas and strategies
to potential investors to sharing your business plan with your employees
and negotiating contracts with suppliers—all require successful
communication.
 Know your Product-A company owner should know the product offerings
and also be aware of the latest trend in the market. It is essential to know if
the available product or service meets the demands of the current market,
or whether it is time to tweak it a little.

A successful entrepreneur will possess many abilities and characteristics, including the
ability to be:

 Curious
 Flexible and adaptable
 Persistent
 Passionate
 Willing to learn
 A visionary
 Motivated

Importance of Entrepreneurship
 Creation of Employment- Entrepreneurship generates employment. It provides
an entry-level job, required for gaining experience and training for unskilled
workers.
 Innovation- It is the hub of innovation that provides new product ventures,
market, technology and quality of goods, etc., and increase the standard of living
of people.
 Impact on Society and Community Development- A society becomes greater if
the employment base is large and diversified. It brings about changes in society
and promotes facilities like higher expenditure on education, better sanitation,
fewer slums, a higher level of homeownership. Therefore, entrepreneurship
assists the organisation towards a more stable and high quality of community life.
 Increase Standard of Living- Entrepreneurship helps to improve the standard of
living of a person by increasing the income. The standard of living means,
increase in the consumption of various goods and services by a household for a
particular period.
 Supports research and development- New products and services need to be
researched and tested before launching in the market. Therefore, an

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 entrepreneur also dispenses finance for research and development with research
institutions and universities. This promotes research, general construction, and
development in the economy.

Entrepreneurship and its Scope

The scope of entrepreneurship is far-reaching.

 Entrepreneurship moves even beyond the closed system of an enterprise.
 Entrepreneurship in its capacity stimulates the economy which enables societal
change not only for fulfilling a need but also to generate revenue for the
entrepreneur, entrepreneurship thus provides jobs for the society and develops
communities.
 Entrepreneurship instigates a lot more than the mere creation of business.
 Entrepreneurship promotes the new business and provides opportunities to
improve the new business sectors.

Need of Entrepreneurship

The need for entrepreneurship is detailed down:

1. Passion, Perseverance & Persistence
Passion is a strong and uncontrollable emotion that is based on something higher to
achieve than what the person is carrying within himself. Perseverance is a mature
emotion that comes through experiences gathered and analysed. While persistence is
the sail that will row the boat of an entrepreneur through the toughest of climates.
2. Big Dreamer
Dreaming big further strengthens an entrepreneur with his ability to dream and see the
wide picture. This is the very first step that sets the path to self-discovery.
3. Learning
Learning is never to stop irrespective of age and thus arming oneself with education
does play a vital role in forming leadership qualities when needed.

4. Good Listener
The ability to contribute will only come once we have abundance in ourselves, and this
comes by absorbing the words of others. The ability to truly listen to the customers and
employees is actually what makes a difference. This very skill leads to a successful
venture.
5. Financing Partner
Choosing a financing partner who understands the business needs is very much
essential. This is as critical as choosing the business which the entrepreneur wants to
pursue. Also, a business loan from the right lender will for sure play a pivotal role in
realizing the dreams of becoming a successful entrepreneur.

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 Entrepreneurial competencies
Competence Versus Competency

1. Competence is skill-based while competency is behaviour-based.

2. Competence covers the standard attained in one’s life whereas competency is

manner of behaviour.

3. Competence means what is measured and competency means how the

standard is achieved.

The three major attributes or components of entrepreneurial competency:

1. Knowledge 2. Skill 3. Motive

Knowledge: Knowledge means gathering information and retention of gathered

information for further application to complete task. Knowledge is very important to
complete any task but not sufficient. For example, an individual can understand the
process of setting an enterprise by reading various books and further she/he can
describe the various aspects of business.

Skill:Skill simply means demonstration ability of knowledge which results into

something that can be observed or seen. In other words, we can say it is sequence of
behaviour through which an entrepreneur apply his knowledge and create a system that
can be observed by others.

Motive: Third important element of competence is motive. We can define motive as

one’s attitude and behaviour to achieve goal. Famous behavioural scientist McClelland
termed motive as ‘Achievement Motivation’. An entrepreneur can achieve success in his
venture only he has motivation to achieve success. Continuous motive of success
achievement directs an entrepreneur to perform job successfully.

Detailed components of competence:

 Technical Skills
 Basic Operational Information
 Business Knowledge
 Communication Skills
 Interpersonal Skills

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  Leadership Quality
 Team spirit and Team Building Skills
 Decision Making Skills
 Time Management Skills
 Work-Coordination Skills

Entrepreneurial competencies are the skills, knowledge, and personal traits that
enable individuals to identify opportunities, take calculated risks, and build
successful businesses, encompassing areas like risk-taking, creativity,
adaptability, and leadership.

Most of the people believe that only those entrepreneurs succeed those have
family background in business. This belief supports the myth that entrepreneurs
are born but there are so many examples that contradict this myth and support
another fact that entrepreneurs are made not born. Entrepreneurs can become
successful by acquiring knowledge and skill set through education and
experience. Entrepreneurial competencies are as follow-

i) Initiation is the first and foremost competency of an entrepreneur.

ii) Entrepreneur must be vigilant.
iii) Learn from mistakes and make efforts to overcome hurdles.
iv) Try to gather as much information from researches and individuals as information
helps to achieve goals.
v) Quality consciousness is the key to achieve success and beat existing standards.
vi) Full dedication and determination to complete tasks.
vii) Efficiency is the key to success in business.
viii) Formulation of realistic and well researched plans.
ix) Proper and effective implementation of plans.
x) Never give up attitude and look for solution of problems.
xi) Self-confidence and self-belief.
xii) Convincing and persuasive personality.
xiii) Efficient Manager.
xiv) Always consider employees as family member and try to work in team.
xv) Growth oriented attitude and enterprising person.
xvi) Consider others opinion and suggestion.
xvii) Proper utilization of resources.
xviii) Will to take risk and adaptive nature.
xix) High motivation and high need achievement.

Entrepreneurial behaviour requires certain knowledge, skill or personality profile.

Generally, it is called entrepreneurial competence or traits.

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A competence may be defined as underlying characteristics of a person which results in
effective and/or superior performance in a job. A job competence is an underlying
characteristic of a person in that it may be motive, traits, and skills, aspect of one’s self-
image or a body of knowledge which one uses.

Entrepreneurial competencies and traits are as follows:

1. Body of Knowledge
2. Set of Skills
3. Cluster of Appropriate Motives/Traits

Entrepreneurship Development is a technique designed to enhance the

entrepreneurial skills of professionals. It involves the inculcation, refinement, and
grooming of entrepreneurial skills within someone to establish and successfully
run an enterprise. Many young people in developing countries need access to
modern education on business development and the use of Information and
Communication Technologies (ICTs). This makes it hard for new entrepreneurs to
compete in the job market and contribute to their country’s economic
development.

EDP is a programme meant to develop entrepreneurial abilities among the

people. In other words, it refers to inculcation, development, and polishing of
entrepreneurial skills into a person needed to establish and successfully run his /
her enterprise. Thus, the concept of entrepreneurship development programme
involves equipping a person with the required skills and knowledge needed for
starting and running the enterprise.

Factors Affect Entrepreneurial Development

Factors that affect entrepreneurship growth are divided into various groups so that
strategies according to each group of factors can be devised. These factors are classified
into following categories/ groups:

1.Economic Factors - Economic factors are those which contribute in the economic
development of the economy. From economic point of view, these factors create
conducive environment for the economic development of country and also account for
the establishment and development of entrepreneurship.
1.1Capital Capital is one of the most important factors, yet one of the biggest barriers
when launching a new business. Entrepreneurs require capital to start risky ventures
and also require instant capital to scale up the business quickly if the idea is found to be
successful. There are however numerous ways to fund a new venture including bank
loans, crowdfunding, and bootstrapping.

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1.2Labor The availability of labor impacts entrepreneurship. Nevertheless, the quality
rather than the quantity of labor influences the emergence and growth of
entrepreneurship. 1.3RawMaterials The necessity of raw materials consisting of natural
resources hardly needs any emphasis for establishing any industrial activity and the
emergence of entrepreneurship. The absence of raw materials adversely affects the
entrepreneurial development. 1.4 Market: It is the market that provides the potential
reward to the entrepreneurs. Market consists of producers and buyers or a place where
seller sells his/her produces to customers. Market is major determinant for the success
of any entrepreneurial initiatives and without market no one can survive in the world of
entrepreneurship. Entrepreneurs can generate capital, arrange labour, procure raw
materials but he cannot create market, he can only generate demand for his produces.
Consumption of final products rests with the demand of the customers. Market size and
composition of market influence the behaviour of entrepreneurs.

2. Social Factors - Social scientists support that economic factors alone are not
sufficient to boost entrepreneurship in any region. An entrepreneur can never be
successful where society fails. Advocates of social theory state that influence of
economic factors on entrepreneurship growth depends on social factors also.

3. Psychological Factors- Along with economic and social factors psychological

factors also contribute in the growth of entrepreneurship. If an economy provides best
economic environment and society also supports entrepreneurial endeavour but, if
individuals are not self motivated then all economic and social support will be wasted.

4. Government/Political Factors- Government can facilitate the establishment

and growth of entrepreneurship by creating basic facilities and services to the
entrepreneurship. Entrepreneurial growth is affected by various government actions
such as development of special economic zones, industrial areas, industrial estates, and
favourable policy initiatives. In India, government is trying to provide favourable
entrepreneurial environment by enacting MSMED Act 2006, establishing separate
ministry for MSME sector and by launching various attractive schemes for
entrepreneurs.

Characteristics of Entrepreneurship Development

Innovation: Entrepreneur need to be innovative. The essence of entrepreneurship is
innovation. Innovation may take place in the following forms viz., the introduction of 27 a new
product in the market, the installation of new production technology, entry of specific product,
the discovery of a new source of raw material, etc.

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Economic activity: To satisfy human wants and as well as in exchange earn a better livelihood,
an entrepreneur manufactures new products or modify the existing products as per the needs,
preferences and demands of the consumers.

Organisation building: Entrepreneurship is an activity of organising various factors of

production and various resources such as financial, physical and human resources. By
considering place utility, time utility, form utility, etc.

Creative activity: Innovation is a process of creating something new and creativity is most
important for innovation. Therefore, innovation should be strongly supported by creativity,
Innovation and creativity are supplement to each other.

Managerial skill and leadership: The entrepreneur who has strong passion of doing or creating
something new rather than just to earn profit will become a successful entrepreneur.
Managerial skills and leadership are the most important features of successful entrepreneur.

Skilful management: The efficient and skilful management of the organisation is an important
quality of entrepreneurship. With the help of professional management and skilled managers,
entrepreneurship becomes easy and successful activity.

Risk-taking: An entrepreneur must undertake many risks including fall in prices, changes in
fashions, earthquake, etc. All these risks cannot be insured with insurance companies. A risk
which cannot be insured against and measured is called uncertainty.

Gap filling function: Gap filling is considered as the most important feature of entrepreneur. It
is the job of entrepreneur to find the gap and fill it or make up the deficiencies which always
exist in the knowledge about the production function.

Limitations of Entrepreneurship
Entrepreneurship requires the ability to handle and judge potential risks. The main
limitations of entrepreneurship are as follows:

Undefined income: Entrepreneurship does not ensure a fixed and stable income like a
full-time job. Entrepreneurs have no fixed income, and income is not guaranteed at the
initial stage of business.

Long Working Hours: Apart from uncertain income, entrepreneurs do not have any
fixed working hours.

Risk of Failure: The initial stages of an entrepreneur’s journey can be very challenging.
There are risks that business strategies may not work, leading to losses in the business.

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Lack of investors: It is very difficult to earn the trust of investors, and hence investors
must start the business in debt.

More stress: Running a business from the beginning requires a lot of effort. An
entrepreneur must take care of finance, legal issues, sales, manpower, and other factors
to work. All these factors cause additional stress and can result in poor physical and
mental health.

Types of Entrepreneurs
Innovative Entrepreneurs: These entrepreneurs can think newer, better and more economical
ideas of business organisation and management. They are the business leaders and
contributors to the economic development of a country. Inventions like the introduction of a
small car ‘Nano’ by Ratan Tata, organised retailing by Kishore Biyani, making mobile phones
available to the common man by Anil Ambani are the works of innovative entrepreneurs.
Imitating Entrepreneurs: These entrepreneurs are people who follow the path shown by
innovative entrepreneurs. They imitate innovative entrepreneurs because the environment in
which they operate is such that it does not permit them to have creative and innovative ideas
on their own.
Fabian Entrepreneurs: Fabian entrepreneurs are those individuals who do not show initiative in
visualising and implementing new ideas and innovations. On the contrary, they like to wait for
some development.
Drone Entrepreneurs: Drone entrepreneurs are those individuals who are satisfied with the
existing mode and speed of business activity and show no inclination in gaining market
leadership. In other words, drone entrepreneurs are ‘die-hard conservatives’ and even ready to
suffer the loss of business.
Social Entrepreneurs: Social entrepreneurs drive social innovation and transformation in
various fields including education, health, human rights, workers’ rights, environment and
enterprise development.
Agricultural Entrepreneur: The entrepreneurs who undertake agricultural pursuits are called
Agricultural Entrepreneurs. They cover a wide spectrum of agricultural activities like cultivation,
marketing of agricultural produce, irrigation, mechanization and technology.
Women Entrepreneurs: Women entrepreneurship is defined as the enterprises owned and
controlled by a woman/woman having a minimum financial stake of 51 per cent of the capital
and giving at least 51 per cent of employment generated in the enterprises to women.
Manufacturing Entrepreneur: The manufacturing entrepreneurs manufacture products. They
identify the needs of the customers and, then, explore the resources and technology to be used
to manufacture the products to satisfy the customers’ needs.

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 Entrepreneurial Development Programme(EDP)
EDP is a programme meant to develop entrepreneurial abilities among the people. In other
words, it refers to inculcation, development, and polishing of entrepreneurial skills into a
person needed to establish and successfully run his / her enterprise. Thus, the concept of
entrepreneurship development programme involves equipping a person with the required skills
and knowledge needed for starting and running the enterprise. Entrepreneurial Development
Programme (EDP) refers to a programme which is formulated to assist the individuals in
reinforcing their entrepreneurial motives, and attaining competencies and skills which is
essential for performing an entrepreneurial role successfully.
“Entrepreneurship Development Programme is designed to help an individual in strengthening
his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his
entrepreneurial role effectively. It is necessary to promote this understanding of motives and
their impact on entrepreneurial values and behaviour for this purpose.”
EDP can also be defined as a pre-defined process that recognizes, inculcates, designs and
refines the skills and proficiencies of an individual to establish his own enterprise. In recent
times, EDP has become a professional task which extensively encourages the development of
funded and private businesses. The programme is meant to grow entrepreneurial aptitudes
among people.

Objectives of Entrepreneurial Development Programme

 To Develop Entrepreneurial qualities and habits among the upcoming youth via
the help of proper training and expert counselling.
 To search and identify the best existing and upcoming business ideas and
opportunities. Motivating and guiding various individuals for launching their own
new businesses and startups. Thus, becoming a contributor to the economy.
 To reach risk mitigation to the youth of the nation. Provide and conduct various
programmes to spread the idea of Entrepreneurship in rural areas and villages.
 To generate employment and self-employment with the help of
Entrepreneurship and the growth of small-scale businesses.
 To inform about various schemes launched by various Government (central, state
or regional governmental bodies) and about various taxes put on enterprises.

Phases of Entrepreneurial Development Programme

Phase-1-Pre-Training Phase: This step can be considered as the introductory
phase in which the entrepreneurship development programmes are launched.

Phase-2-Training Phase: The main function of any EDP is to impart training to

future entrepreneurs and guiding them for establishing the enterprise. The

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 normal duration of the entrepreneurship development programme is 4-6 weeks
and it is usually a full-time course.
Phase-3-Post-Training Phase: This phase is also referred as the phase of follow-
up assistance. In this phase, the candidates who have completed their
programme successfully are provided post-training assistance. This phase is very
important as after the completion of training programme, most of the
entrepreneurs face a lot of hardship in the business plan implementation.

Meaning of Startups
It is that it is a new business venture providing services or products to an existing
and growing market. A startup is in the first stage of operations and comprises one
or more entrepreneurs. The primary aim is to answer market demand by creating
new and innovative products or services.
“A startup is a company working to solve a problem where the solution is not
obvious and success is not guaranteed.”

Entrepreneurial Motivation
The entrepreneurial motivation is the process that activates and motivates the
entrepreneur to exert higher level of efforts for the achievement of his/her
entrepreneurial goals. In other words, the entrepreneurial motivation refers to
the forces or drive within an entrepreneur that affect the direction, intensity, and
persistence of his / her voluntary behavior as entrepreneur.

Motivation is regarded as “the inner state that energizes activities and directs or
channels behavior towards the goal”.

Motivation is the process that arouses action, sustains the activity in progress
and that regulates the pattern of activity.

Entrepreneurial Motivating Factors / Factors motivating Entrepreneurs

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Achievement theory of motivation / Need for Achievement Theory of McClelland
According to David McClelland, regardless of culture or gender, people are driven by
three motives: Achievement, Affiliation and Power Need for Achievement A drive to
excel, advance and grow.
The need for achievement is characterized by the wish to take responsibility for
finding solutions to problems, master complex tasks, set goals, get feedback on level
of success.
Need for Affiliation A drive for friendly and close inter-personal relationships. The
need for affiliation is characterized by a desire to belong, an enjoyment of teamwork,
a concern about interpersonal relationships, and a need reduce uncertainty.
Need for Power A drive to dominate or influence others and situations. The need for
power is characterized by a drive to control and influence others, a need to win
arguments, a need to persuade and prevail.
Maslow’s need theory, also known as Maslow’s hierarchy of needs theory is in
psychology proposed by Abraham Maslow that explains human motivation. It
suggests that our needs are arranged in a pyramid-like structure, with the most basic
needs at the foundation and more complex needs emerging as the lower levels are
fulfilled.
Physiological Needs: At the very foundation of the Maslow pyramid lie our
physiological needs. These are the biological requirements essential for human
survival, including food, water, air, sleep, shelter, and clothing. Until these
fundamental needs are met, it’s difficult to focus on anything else. Imagine feeling
famished; every thought revolves around getting food.

Safety Needs: Once our physiological needs are satisfied, we seek safety and
security. This includes protection from physical harm, such as violence or accidents,
as well as emotional security and stability. Having a safe place to live, financial
security, and freedom from fear are all aspects of safety needs.

Belonging Needs: As we move beyond basic survival, our social needs come into
play. We crave connection, intimacy, love, and a sense of belonging. This includes
feelings of acceptance, friendship, family, and affection relationships.

Esteem Needs: With a foundation of safety and love, we start to focus on our self-
esteem. This level encompasses the need for self-respect, confidence, achievement,
recognition, and status. It’s about feeling competent, valued, and appreciated by

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others. Esteem needs can be further broken down into two categories: the need for
self-esteem (feeling good about ourselves) and the need for public esteem .

Self Actualization Needs: At the pinnacle of Maslow Hierarchy Theory lies self
actualization needs, the drive to reach our full potential. This need is about
realizing our unique talents, abilities, and values. It’s about becoming the best
version of ourselves and fulfilling our true potential. While not everyone reaches
this level, the striving for self-actualization can be a powerful motivator.

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 Difference between Entrepreneur and Intrapreneur
Entrepreneur Intrapreneur
An entrepreneur is an Intrapreneur is an individual
individual having a new and having entrepreneurial skills
Meaning exclusive idea to establish who works at a previously
something new. established company.

An intrapreneur’s motive is to
An entrepreneur’s motive is to
Motive grow the business and make it
bring change to the world.
better.

Intrapreneurs are innovative in

Entrepreneurs are innovative
Nature nature but less than
in nature.
entrepreneurs.

Intrapreneurs are willing to

Entrepreneurs are willing to
Risk Factor take risks but less than
take risks.
entrepreneurs.

Intrapreneur’s goals are to get

Entrepreneurs focus on long-
Goals appraisals, appreciation, and
term profits.
promotions.

Entrepreneurs face low Intrapreneur faces high

Competition competition for their business. competition in the market.

Entrepreneurs are founders of a Intrapreneurs are employees of a

Position company. company.

Entrepreneurs operate activities Intrapreneurs use entrepreneurial

Approach to Operate using innovative methods. skills.

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