UNIT 1: An Overview of Entrepreneurship

The concept, role and importance of entrepreneur in economic growth

Distinguish between Entrepreneur-Intrapreneur and Manager
Functions of an Entrepreneur
Characteristics of a successful entrepreneur
Small business venture and entrepreneurship
Women entrepreneurship development in Nepal
Case study on women entrepreneurship

Concept of Entrepreneur
Entrepreneurs are individuals who recognize opportunities where others see chaos.
They are aggressive catalysts for change within the marketplace.
The word entrepreneur is derived from the French verb enterprendre and its literal
meaning is to undertake.
The word was originally used to describe people who take on the risk between
buyers and sellers or who undertake a task such as starting a new venture.
An entrepreneur assembles and then integrates all the resources needed the money,
the people, the business model, the strategy and the risk-bearing ability to transform
the invention into a viable business.
It was applied to leaders of military expeditions in the early 16th century.
However, around 1790 A.D. it was used in the context of other types of adventures like
architects and contractors of public works.
The Oxford English Dictionary in 1887 states that entrepreneur simply is the director
or manager of public musical institution; one who puts up entertainments, especially
musical performance.
A further revision has appeared in it in 1933 and the word entrepreneur had a place in
business and would mean one who undertakes an enterprise especially a contractor
acting as intermediary between capital and labor.
Undertaking of an enterprise is regarded as entrepreneurship and one who undertakes it
one who coordinates capital and labor for the purpose of production is an
entrepreneur.
Now:
This is the entrepreneurial age and it is estimated that as many as 600 million persons
worldwide were either actively in trying to start a new venture or were owner-
managers of new business in 2010.
More than a thousand new businesses are born every hour of every working day in US.
Entrepreneurs are driving a revolution that is transforming and renewing economic
worldwide.
New and emerging businesses create a very large proportion of innovative products
and services that transform the way we work and live, such as personal computers,
software, the Internet, biotechnology drugs etc.
From 1990 to 1994, small, growing firms with 100 or fewer workers generated 7 to 8
million new jobs in the U.S. economy, whereas firms with more than 100 workers
destroyed 3.6 million jobs.
An entrepreneur is someone who perceives an opportunity and creates an organization
to pursue it.
 The entrepreneurial process involves all the functions, activities and actions associated
with perceiving opportunities and creating organizations to pursue them.

Why Become an Entrepreneur?

The three primary reasons that people become entrepreneurs and start their own firms
are to:
1) Be their own boss;
2) Pursue their own ideas;
3) Realize financial rewards.

Nature of Entrepreneur
The entrepreneur is expected to identify the environmental change as an opportunity
and uses the factors of production to produce new goods and services.
Entrepreneur is motivated to:
The desire to found a private commercial kingdom,
The will to get the better of and prove his superiority
The joy of creating, getting things done or simply of exercising ones energy and
ingenuity.
Entrepreneur is expected to posess certain attitude & values in order to perform the
expected entrepreneurial behavior.
The expectations regarding entrepreneurial values and attributes were termed as
entrepreneurial orientation.
Entrepreneurial orientation is prerequisite condition for an entrepreneur.
Entrepreneurial orientation consists of:
Risk bearing propensity (Attitude)
Change process
Ambition
Long term profit perspective
Positive attitudes towards management and workers.

Definitions of Entrepreneur
An entrepreneur is the agent who buys means of production at certain prices in order to
combine them into a product that he is going to sell at prices that are uncertain at the
moment at which he commits himself to his costs.- Cantillon
The entrepreneur is the economic agent who unites all means of production.the labor
force of the one and the capital or the land of the others and who finds in the value of
products his results from their employment reconstitution of the entire capital that he
utilizes and the value of the wages, the interest and the rent which he pays as well as
profits belonging to himself. J.B. Say
It treats an entrepreneur as an individual who bears the risk of operating a business in
the face of uncertainty about the future conditions. The New Encyclopedia Britannica
Entrepreneur as an individual who carries out new combines of means of production by
which there occurs disequilibrium Joseph A. Schumpeter
Entrepreneurs innovate. Innovation is the specific instrument of entrepreneurship. It is
the act that endows resources with a new capacity to create wealth. Innovation, indeed
creates a resource- Peter F. Drucker
Entrepreneurial Characteristics
1. Change Agent:
An entrepreneur is expected to work as a change agent.
The entrepreneur is a catalyst for change.
He should be alert to the signs that change is needed.
Both external-internal forces affects on the entrepreneurial organization, just as
they do on others.
The complex and uncertain environment can create the need to change.
Entrepreneur is the person who recognizes the need for change and directs it.
Whenever a particular need to change is recognized the entrepreneur becomes
the key person to initiate that change.

2. Self Confidence:
Entrepreneurs should have confidence in their abilities to make both strategic
and day-to-day decisions regarding technical matters, marketing and overall
business strategy.
They should also feel capable of overcoming any future unanticipated problem.
Since entrepreneur is to work as cheerleader and coach while implementing
change, he requires capability to overcome any resistance to change.
Actually overcoming any resistance to change requires intense interpersonal
efforts and support.

3. Energy Level:
To be successful, a new venture requires hard work and dedication.
In practice, success of an entrepreneur needs the ability to work for long hours in
completing the task.
Entrepreneurs need an unusually high energy level in order to meet the demands
of launching and running a business.

4. Level of Risk:
The entrepreneur assumes risk.
Entrepreneurs shift resources from areas of low productivity and yield to areas
of higher productivity and yield.
Of course, there is a risk they may not succeed.
But if they are even moderately successful, the returns should be more than
adequate to offset whatever risk there might be.
Thus, entrepreneurs are typically characterized as risk takers. Successful
entrepreneurs actually tend to take moderate risk rather than little risk or
excessive risk.

5. Need for Achievement:

Entrepreneurs exhibit a high need for achievement which accounts for their
seemingly endless drive.
Studies show that people with high need achievement like to take risks but only
reasonable ones and such risks stimulate them to greater effort.
Moreover, McClelland found that certain societies tended to produce a larger
percentage of people with high need achievement.
 Thus, high achievers set ambitious short-term and long-term goals that challenge
them and that provide great personal satisfaction when achieved.

6. Tolerance for Ambiguity (Uncertainty):

Imperfection in information is always possible and manager is required to take
decisions with incomplete or unclear information.
But entrepreneurs even face more ambiguity since they may be doing certain
things for the first time and they are risking their livelihood.
Thus, entrepreneurs should be comfortable and capable of making decisions
based on incomplete or little information.
Practically, it is a critical trait for entrepreneurs who face a great deal of
uncertainty at the time of starting new enterprise.

7. Locus of Control:
General idea that individuals not luck or fate control their own lives.
Entrepreneurs work with impression that they are pulling their own strings.
Thus, entrepreneurs tend to believe that they have a high degree of control over
their lives.
Side by side they oppose to believe their lives are governed by luck, fate or other
external sources.
Since they feel in control of their lives they should be able to strike out on their
own and assess the future prospects by their own calculations.

Functions of an Entrepreneur

1. Innovation:
Innovation means doing the new things or doing of things that are already being done
in a new way.
However, there is distinction between creativity and innovation. Creativity is the
ability to bring something new into existence.
Innovation is the transformation of creative ideas into useful applications but creativity
is a prerequisite to innovation.
Schumpeter described entrepreneurs as innovators who use the process of shatter the
status quo through new combinations of resources and new method of commerce.
It includes new processes of production, introduction of new products, creation of new
markets, discovery of a new and better form of industrial organization.
Peter Drucker also elaborates that innovation is the specific tool of entrepreneurs the
means by which they exploit change as an opportunity for a different business or a
different service.

2. Risk-Taking:
The risk is the condition of not knowing the outcome of an activity or decision.
Risk is capable of being evaluated for relative probabilities.
Risk bearing means provision for capital in order to enable the entrepreneur to
establish and operate the business.
Economists like Cantillon, J.B.Say and others stressed risk taking as the specific
function of an entrepreneur.
 Entrepreneur is required to reduce uncertainty in his investment strategies by initiating
expansion and diversification programs in the enterprise.
Entrepreneur should try to reduce the level of uncertainty by analyzing the problem in
proper perspective.
Actually business game consists of great risks and rewards are also great when risks
involved are inseparable.

3. Organization and Management:

The process of organization and management includes planning of an enterprise
coordination, control and supervision.
Prof. Alfred Marshal recognized this function as an important function of an
entrepreneur.
Entrepreneurs often fall into the trap of thinking that just because their business is
small, they do not really need a comprehensive system of organization and
management.
They may rationalize that by designing an effective organizational and management
control system.
They cannot improve their capabilities because of their limited knowledge about
possible methods of effective control.

4. Business Decision:
Arther H. Cole described an entrepreneur as a decision maker. The decisions with
regard to what to produce, how to produce and for whom to produce are to be taken by
the entrepreneur himself.
Prof. Cole described the functions of an entrepreneur as:
The determination of those objectives of the enterprise and the change of
those objectives as conditions required or made advantageous.
The development of an organization including efficient relations with
subordinates and all employees.
The securing of adequate financial resources, the relations with existing and
potential investors.
The requisition of efficient technological equipment and the revision of it as
new machinery approach.
The development of a market for products and the devising of a new product
to meet or anticipate consumers demand.
The maintenance of good relations with public authorities and with society
at large.

Types of Entrepreneurs
1. Innovative Entrepreneurs
2. Imitating Entrepreneurs
3. Fabian Entrepreneurs
4. Drone Entrepreneurs

Innovative Entrepreneurs:
They are characterized by effective assemblage of information and the analysis of
results originated from different set of combinations.
 According to Schumpeter, innovative entrepreneurs are those who may raise money to
launch an enterprise, assemble the various factors, select top executives and set the
organization operational.
They also identify the opportunity for introducing a new technique or a new
commodity or a new market.
These entrepreneurs are quite aggressive in experimentation and putting attractive or
viable possibilities into practice.
Thus, innovative entrepreneurs are one who believe in introducing new goods, adopt
new method of production, develop new market and restructure the organization under
their command.
Innovative entrepreneurs are the product of developed nations and they are in position
to adopt and implement innovative process in action.
But underdeveloped nations are unable to have this type of entrepreneurs as they lack
resources and expertise to invest in innovation process.

Imitating Entrepreneurs:
These entrepreneurs are those entrepreneurs who are unable to innovate the changes
themselves but they are capable enough to imitate the techniques and technology
innovated by innovating entrepreneurs.
These entrepreneurs are always ready to adopt successful innovation executed by
innovating entrepreneurs as there is little involvement of huge capital expenditure in
this process.
Developing economies or underdeveloped economies need this type of entrepreneurs.
Prospective entrepreneur of these nations prefer to imitate the technology, knowledge
and skill developed by innovating entrepreneurs.

Fabian Entrepreneurs:
These entrepreneurs are shy and lazy in their working.
Their dealings are guided by the customs, religion, tradition and past practices.
Actually, Fabian entrepreneurs are always conscious in their dealings and believe in
skepticism in initiating any change.
They do not have any will power to initiate new changes as well as lack desire to adopt
new methods innovated by innovating entrepreneurs.
They always believe in tested routes of production and not interested in taking risk.
Actually they are habitual of following the paths directed by earlier entrepreneurs.
They avoid in taking challenges in production system and that is why they are unable
to maximize the fruits of entrepreneurial actions.

Drone Entrepreneurs:
These entrepreneurs are those who are not inclined to bring changes in their production
system as demanded by the change in consumer preferences, technological innovation,
economic and social behavior of the prospective customers.
Market always provides opportunities to the entrepreneurs but this type of
entrepreneurs generally fail to use these opportunities in profitable way. Due to this
reason they fail to earn profit or even suffer loss.
They are traditional in their approaches and do not make changes in production
methods.
 They generally risk their identity as their product loses marketability and at the end
uneconomic or unviable operation pushes them out of the market.

Entrepreneurship

Definitions:
Entrepreneurship is based on purposeful and systematic innovation..it essentially
consists in doing things that are not generally done in the ordinary course of business
routine Joseph Schumpter
Entrepreneurship is gathering and using resources to produce resultsit is allocating
resources to opportunities rather than to problems Peter Drucker
Entrepreneurship is a process of innovation that reallocates resources to new
opportunitiesthrough unusual combinations of resources and the skills of risk-taking
David Holt
Entrepreneurship is the process of creating something different with value by devoting
the necessary time and effort, assuming the accompanying risks, and receiving the
resulting rewards Hisrich and Peters

Economic Approach
Entrepreneur as a person who pays a certain price for a product to resell it an uncertain
price thereby making decisions about obtaining and using resources while
consequently assuming the risk of enterprise R. Cantillon, 1755
Entrepreneur is an individual who undertook the formation of an organization for
commercial purposes. He is a person with unusual foresight who could recognize
potential demand for goods and services. He reacts to economic change, becoming the
economic agents who transformed demand into supply. Adam Smith, 1776
An entrepreneur is one who possessed certain arts and skills of creating new economic
enterprises, yet a person who had exceptional insight into societys need and was able
to fulfill them. J.B. Say, 1803
Entrepreneurs as a force of creative destruction whereby established ways of doing
things are destroyed by the creation of new and better ways to get things done.
Joseph Schumpeter, 1934
Entrepreneurship occurs when resources are redirected to progressive opportunities not
used to ensure administrative efficiency Peter F. Drucker, 1985

Sociological Approach:
Sociologist considers the entrepreneurship as a process of role performance.
Entrepreneurs are expected to be governed by the wishes of the society, customers,
ethical values, child rearing practices etc.
Thomas Cocharan concluded in his study the entrepreneur in economic change
explorations in entrepreneurial history 1965 that the entrepreneur represents societys
model personality.
Entrepreneur performance depends upon his own attitudes towards his occupation, the
role of expectations of sanctioning groups and the occupational requirements of the
job.
Societys values are the most important determinant of the attitudes and role
expectations.
 Psychological Approach:
This concept developed by McClelland and Hagen. In his work- The Achieving
Society- 1961, David McClelland stated that it is the high need for achievement which
drives people towards entrepreneurial activities.
Achievement motive is basically measured through child rearing practices which stress
standards of excellence, material warmth, self-reliance, training and low father
dominance.
Individuals with high achievement motive tend to take keen interest in situations of
high risk, desire for responsibility and desire for a concrete measure of task
performance.
E.E. Hagen also in his study on the theory of social change How Economic Growth
Begins 1964 deals about the withdrawal of status respect as the trigger mechanism
for changes in personality formation.
Status withdrawal is the perception on the part of members of some social group in the
society whom they respect and whose esteem they value.

Characteristics of Entrepreneurship
Dynamic process
Innovation
Risk taking
Decision making
Accepting challenges
Organization
Skillful management
Making the enterprise a success

Entrepreneur Entrepreneurship

1. Refers to an individual. 1. Refers to a process.

2. It is a creator. 2. It is creation.

3. It is a visionary. 3. It is vision

4. It is an innovator. 4. It is innovation.

5. It is a risk-bearer. 5. It is process of risk-bearing.

6. It is a motivator. 6. It is motivation.

7. It is an organizer. 7. It is organization.

8. It is a leader. 8. It is leadership.

9. It is an imitator. 9. It is imitation.

Importance of Entrepreneurship
Capital Formation
Employment Creation
Creating Innovation
Fuelling Economic Growth
Identifying Ownership Opportunities
 Enhancing Welfare Amenities
Increased Productivity
Balanced Development
Equitable Distribution
Industrialization
Opportunities for Entrepreneur

Barriers of Entrepreneurship
Regulatory Barriers
Merger and Acquisitions
Competition Policy
Defective Tax Structure
Delayed Payments
Absence of Protection of Intellectual Property Rights
Defective Administrative and Compliance System

Theories of Entrepreneurship

1. Innovation Theory:
This theory was propounded by J.A. Schumpeter. According to him,
entrepreneur is basically an innovator and innovator is one who introduces new
combinations.
In practice, new combination theory covers five cases, which are given below:
The introduction of a new goods which consumers are not yet familiar
or of a new quality of a goods.
The introduction of a new method of production, that one not yet tested by
experience in the branch of manufacture concerned, which need by no
means be founded upon a discovery scientifically new and can also exist
in a new way of handling a commodity commercially.
The opening of a new market i.e. market into which the particular branch
of manufacture of the country in question has not previously entered,
whether or not this market has existed before.
The conquest of a new source of supply of raw materials or half
manufactured goods, irrespective of whether this source already exists or
whether it has first to be created.
The carrying out of the new organization of any industry like the creation
of a monopoly position or the breaking up of a monopoly position.

Critical evaluation of innovation theory:

It excludes individuals who merely operate an established business without
performing innovative functions.
Innovating entrepreneur represents the most vigorous type of enterprise.
However, this type of entrepreneur is rarely available in developing countries
like Nepal.
It laid too much emphasis on innovative functions. But it ignores the risk taking
and organizing aspects of entrepreneurship.
 It assumes an entrepreneur as a large scale business man. He is a person who
creates something new. But in practice, an entrepreneur cannot have large scale
operations from the very beginning.
It fails to suitably answer to question like- why some countries had more
entrepreneurial talent than others.

2. Need Achievement Theory:

This theory was developed by David C. McClelland & concerned with economic
growth and the factors that influence it.
In this context, he tries to find the internal factors i.e. human values and motives
that lead man to exploit opportunities, to take advantage of favourable trade
conditions.
The entrepreneur is concerned with need for achievement (n-achievement).
The n-achievement is called as a desire to do well, not so much for the sake of
social recognition or prestige, but for the sake of an inner feeling of personal
accomplishment.
People with high n-achievement behave in an entrepreneurial way.
McClelland identified two characteristics of entrepreneurship, first doing things
in a new and better way and secondly, decision making under uncertainty.
The tendency to strive for success in situations involving an evaluation of ones
performance in relation to some standard of excellence.

Critical Evaluation of n-achievement theory:

High achievement orientation ensures the success of entrepreneurs.
It is necessary to create a climate (especially in educational institutions at various
levels) to enable the children to grow to become individuals with high n-
achievement.
It is possible to improve the performance of existing entrepreneurs thro imparting
proper training & education.

3. Status Withdrawal Theory:

E. Hagen attempted to formulate a theory of social change.
The theory of social change explains that when members of some social groups
feel that their values and status are not respected by the society, they turn to
innovation to get the respect of the society.
Entrepreneurship is a function of status withdrawal.
This theory provides that a class which lost its previous prestige or a minority
group tends to show aggressive entrepreneurial drive.
Hagen postulates four types of events which can produce status withdrawal:
Displacement of a traditional elite group from its previous status by another
traditional group by physical force,
Unfair criticism of values, symbols through some change in the attitude of
superior group,
Inconsistency of static symbol with a changing distribution of economic power
and,
Non-acceptance of expected status on migration to a new society.
Critical Evaluation:
The theory acts to distinguish between entrepreneurship and Intrapreneurship.
There are different factors within the organization which motivate the executives
and professionals to do some innovative behavior leading to new products and
services.
Actually, they are not governed by status withdrawal.
The theory only suggests that the people, who had enjoyed social standing at some
stage in their histories fall into a retreatist (one who combines to work in the
society but remains indifferent to his work and position) phase and urge to regain
that lost status emerge as entrepreneurial personality.
It is long term journey of entrepreneur but in practically, first generation
entrepreneurs are quite successful in their entrepreneurial behavior.

4. Theory of Social Change:

It was Max Weber who first of all took the stand that entrepreneurial growth was
dependent upon ethical value system of the society concerned.
The central figure of the Webers theory of social change consists in his treatment
of the protestant ethic and the spirit of capitalism.
Moreover, this theory provides an analysis of religion and its impact on
entrepreneurial culture.
The spirit of rapid industrial growth depends upon a rationalized technology,
acquisition of money and its rational use for productivity and multiplication of
money.
The tendency of acquisition and rational attitude towards action which are
generated by ethical values.
Protestant progress fast in bringing capitalism because their ethical value system
provided them with rational economic attitude, while the Jews and Jains failed to
develop industrial capitalism because of their value of Pariha(the restriction on
having any contact with other communities).

Critical Evaluation :
There is single system of religious value.
The specific society and their community internalized those values and
translated them in to day behavior
These values remained immune to and insulated against external pressures and
change.

5. Theory of Social Behavior:

Kunkel presents a behavioral model of entrepreneurship.
Supply of entrepreneurs is a function of social, political and economic structure.
Behavioral model concerned with the overtly expressed activities of individuals
and their relations to the previous and present surroundings, social structures and
physical conditions.
According to Kunkel, individuals perform various activities of which some are
accepted by the society while others are not. The accepted are rewarded.
The rewards act as reinforcing stimulus increasing the probability of repeating that
behavior pattern.
 This pattern of social behavior is entrepreneurial behavior.
The supply of entrepreneurship depends upon four structures found in a society,
which are:
Limitation Structure: The society limits specific activities and this limitation
structure affects all the members of a society.
Demand Structure: Material rewards are necessary to lay the foundation for
future social gains. Moreover, behavior of people can be made entrepreneurial
by manipulating certain selected components of the demand structure.
Opportunity Structure: It consists of the availability of capital, management
and technological skills, information concerning production methods, labor and
markets.
Labor Structure: It is concerned with the supply of competent and willing
labor. The supply of labor is governed by several factors such as available
alternative means of livelihood, traditionalism and expectations of life.

Critical evaluation:
The theory assumes the ideal structures for the supply of entrepreneurs. But
generally, there is discrepancy between objectives, structures and the actual
incidence of entrepreneurs.
It is due to the fact that there are inadequate or incorrect perceptions attached
with these perceptions.
In practice, entrepreneurship is also governed by the specific combinations of
circumstances which are generally not available in the environment.

6. Theory of Leadership
According to Hoselitz, entrepreneurship is a function of managerial skills and
leadership.
Business also requires finance but that is of secondary importance.
He further explains that a person who is to become an industrial entrepreneur
must have more than the drive to earn profits and a mass wealth.
There are generally three types of leadership- merchant, money lenders,
managers and entrepreneurs.
Money lenders are market oriented and managers are authority oriented but
entrepreneurs have in addition to these a production orientation.

Critical evaluation:
It is quite true that marginal men or groups enjoying an ambiguous culture and
social position having no burden of tradition to inhibit them from
entrepreneurship development.
But there are certain economic and political factors also which encourage the
people to initiate entrepreneurial behavior.

7. Theory of Model Personality:

The theory of Cocharn is a sociological theory of entrepreneurial supply.
He emphasizes cultural values, role expectations and social sanctions as the key
elements that determine the supply of entrepreneurs.
 An entrepreneur is neither a super normal individual nor a deviant person but
represents a societys model personality.
His performance is influenced by three factors:
His own attitudes towards his occupation,
The role expectations held by sanctioning groups,
The operational requirements of the job.

Entrepreneurship

Process
The
Uniqueness Entrepreneur

Defining
Growth Entrepreneurship Innovation

Profit or Organization
Nonprofit Creation
Creating
Value

The Entrepreneurial
Process

Starting the Venture:

Identifying
Exploring the Researching Feasibility
Opportunities/Possible
Entrepreneurial Competitive Advantage Planning the Venture
Context Organizing the Venture
Launching the Venture

Managing the Venture:

Managing Processes
Managing People
Managing Growth
Special Issues

Benefits of Small Business Ownership

The opportunity to:
create your own destiny
make a difference
reach your full potential
reap unlimited profits
contribute to society and be recognized for your efforts
do what you enjoy and have fun at it
Create more jobs than big businesses
 Drawbacks of Small Business Ownership
Uncertainty of income
Risk of losing your entire investment
Long hours and hard work
Lower quality of life until the business gets established
High levels of stress
Complete responsibility
Discouragement
Small Businesses

Women Entrepreneurship
Women who initiate, organize and run a business enterprise, called women
entrepreneurs.
In terms of Schumpeterian concept of innovative entrepreneurs, women who innovate,
imitate or adopt a business activity are called women entrepreneurs.
The Government of Nepal has defined to women entrepreneurs based on women
participation in equity and employment of a business enterprise.
Since women are also human beings the term entrepreneur embraces both male and
female.
Women entrepreneur is one who creates a new business in the face of risk and
uncertainty for the purpose of achieving profit and growth by identifying opportunities
and assembling the necessary resources to capitalise those opportunities Thomas W.
Zimmerer
Women entrepreneurs may be defined as a woman or group of women who initiate,
organise and run a business enterprise.
Women entrepreneurship is the process of creating new venture by women through
risk-taking, innovating and managing for rewards.
It is related to women in independent business.
Women stand as a special focus group for entrepreneurship development.
Women entrepreneurs are women who innovate, imitate or adopt a business activity-
Joseph Schupeter
The desire for economic independence is the key factor for emergence of women
entrepreneurs.
The rising consciousness through education and training among women has facilitated
the growth of women entrepreneurs.

Functions of Women Entrepreneurs

To perform all the functions involved in establishing an enterprise like:
Idea generation and screening,
Determination of objectives,
Project preparation,
Product analysis,
Determination of forms of business organization,
Completion of promotional formalities,
Raising funds,
Procuring men, machine and materials
 Operation of business.

Frederick Harbison classify five functions of Women Entrepreneurs

Exploration of the prospects of starting a new business enterprise
Undertaking of risks and the handling of economic uncertainties involved in business
Introduction of innovation or imitation of innovations
Coordination, administration and control
Supervision and leadership

Problems of Women Entrepreneurship

1. Problem of Finance
2. Stiff Competition
3. Limited Mobility
4. Family Pressure
5. Legal constraints
6. Lack of Education
7. Male-dominated Society
8. Low Risk-Bearing Ability