Professional Documents
Culture Documents
Chapter No 1
1.1
INTRODUCTION
Entrepreneurship is the process of starting a business or other organization.
The entrepreneur develops a business model, acquires the human and other required
resources, and is fully responsible for its success or failure. Entrepreneurship operates within
an entrepreneurship ecosystem.
Today the term entrepreneur implies qualities of leadership, initiative and innovation
in business. Economist Robert Reich has called team-building, leadership, and management
ability essential qualities for the entrepreneur.
An entrepreneur is a factor in microeconomics, and the study of entrepreneurship
reaches back to the work in the late 17th and early 18th centuries of Richard
Cantillon and Adam Smith, which was foundational to classical economics.
In the 20th century, entrepreneurship was studied by Joseph Schumpeter in the 1930s
and other Austrian economists such as Carl Menger, Ludwig von Mises andFriedrich von
Hayek. The term "entrepreneurship" was coined around the 1920s, while the loan from
French of the word entrepreneur dates to the 1850s.
Initially, economists made the first attempt to study the entrepreneurship concept in
depth[8] Richard Cantillon (1680-1734) considered the entrepreneur to be a risk taker who
deliberately allocates resources to exploit opportunities in order to maximize the financial
return.Cantillon emphasized the willingness of the entrepreneur to assume risk and to deal
with uncertainty. Thus, he draws attention to the function of the entrepreneur, and
distinguishes clearly between the function of the entrepreneur and the owner who provides
the money. Alfred Marshall viewed the entrepreneur as a multi-tasking capitalist. He
observed that in the equilibrium of a completely competitive market, there was no spot for
entrepreneurs as an economic activity creator.
REVIEW OF STUDY
Joseph Schumpeter describes an entrepreneur as "a person who is willing and able to convert
a new idea or invention into a successful innovation." Entrepreneurship employs what
Schumpeter called the gale of creative destruction. Schumpeter's idea encompasses more than
single innovations, as he further explains how innovative thinking allows for a sustainable
and long-term economic growth for societies that enable it. Creating new goods and new
ways of doing things allows for consistent job growth, more consumption, and more
economic dynamism. Innovative thinking allows for so-called disruptive innovations
innovations which make leaps and bounds over existing products. One classic example is the
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2.5
We are a very young nation just over 55 years since independence setting out on a
path of sustained economic growth, for decades to come.
We already have over a billion fellow Indians. Within the next 20 years, we will have
400 million people below the age of 35 years more than the entire population of the
United States! Each person, in this bold new generation, will be in the prime of his or
her life, striving for a better tomorrow creating, in the process, new growth
opportunities, for budding entrepreneurs!
On the most conservative basis, our domestic consumption, in virtually any sector, has
the potential to at least double, or treble, from current levels perhaps, just to catch
up with a country like China!
At present, there are various organizations at the country level & state level
offering support to entrepreneurs in various ways. The Govt. of India & various State
Govts. have been implementing various schemes & programmes aimed at nurturing
entrepreneurship over last four decades. For example, MCED in Maharashtra provides
systematic training, dissemination of the information & data regarding all aspects of
entrepreneurship & conducting research in entrepreneurship. Then there are various
Govt. sponsored scheme for the budding entrepreneurs.
2.6
RESEARCH METHODOLOGY
The researcher has used secondary data analysis in order to determine the
given findings and conclusions. In the secondary research the researcher has made use
of the available literature and other relevant publications to find out the theoretical
framework and also to know what early research mentioned regarding selected topic.
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DEFINITION:
ENTERPRENEUR:
An entrepreneur is one who always searches for change, responds to it and exploits it
as an opportunity. Innovation is the basic tool of entrepreneurs, the means by which they
exploit change as an opportunity for different business of service.
--Peter Drucker
To put it very simply an entrepreneur is someone who perceives opportunity,
organizes resources needed for exploiting that opportunity and exploits it. Laptops , mobile
phone, Motor Bikes, Credit Cards, Courier Service, and Ready to eat Foods are all examples
of entrepreneurial ideas that got converted into products or services.
ENTREPRENEURSHIP:
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.
-- Peter Drucker
2.2
INTRODUCTION:
Entrepreneurship is the practice of starting new organizations or revitalizing mature
BACKGROUND:
2.4
2.5
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Government Support
Traditionally, government programs, and support from the banking and finance industry, were
largely focused and aligned to the manufacturing sector with its strong product focus.
Industry associations such as the Confederation of Indian Industry (CII), the Federation of
Indian Chambers of Commerce and Industry (FICCI) and the Associated Chambers of
Commerce and Industry of India (ASSOCHAM) have existed since the pre-independence era
and lobby the government for policy initiatives that favour traditional businesses and
industries. With the information technology sector emerging as a rapidly growing segment of
Indian industry the National Association of Software and Services Companies (NASSCOM)
was formed in 1988 as the industry association for information technology industry.
In 2000, the National Science & Technology Entrepreneurship Development Board
(NSTEDB) under the aegis of the Department of Science and Technology (DST)
launched the Technology Business Incubation (TBI) program, which is geared towards
supporting entrepreneurship in emerging technology areas such as information and
communications technology, manufacturing, biotechnology, nanotechnology, and agricultural
technology. This program was an extension of the Science & Technology Entrepreneurs' Park
program, which was initiated in 1985 by the NSTEDB in academic institutions and research
labs of excellence with an objective of promoting self employment for young science and
technology graduates. The NSTEDB identified 120 technology business incubators in
different technology areas within India (NSTEDB, 2009). Of these, 53 were promoted by the
NSTEDB, 40 were software technology parks promoted by the Ministry of Information and
Communication Technology, and the remaining 30 were promoted by other government
departments, banks, financial institutions, or private companies. The numbers are small for a
country as large as India and the geographical distribution is also not uniform: 56% of
incubators are located in southern India, 21% are in northern India, 17% are in western India,
and only 6% are located in eastern regions (NSTEDB, 2014).
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2.7
14
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In India there is a dearth of quality people in industry, which demands high level of
entrepreneurship development programme through out the country for the growth of Indian
economy.
The scope of entrepreneurship development in country like India is tremendous.
Especially since there is widespread concern that the acceleration in GDP growth in the post
reforms period has not been accompanied by a commensurate expansion in employment.
Results of the 57th round of the National Sample Survey Organization (NSSO) show that
unemployment figures in 2003-04 were as high as 8.9 million. Incidentally, one million more
Indian joined the rank of the unemployed between 2005-06 & 2007-08. The rising
unemployment rate (9.2% 2008 est.) in India has resulted in growing frustration among the
youth. In addition there is always problem of underemployment. As a result, increasing the
entrepreneurial activities in the country is the only solace. Incidentally, both the reports
prepared by Planning Commission to generate employment opportunities for 10 crore people
over the next ten years have strongly recommended self-employment as a way-out for
teaming unemployed youth. We have all the requisite technical and knowledge base to take
up the entrepreneurial challenge. The success of Indian entrepreneurs in Silicon Valley is
evident as proof. The only thing that is lacking is confidence and mental preparation. We are
more of a reactive kind of a people. We need to get out of this and become more proactive.
What is more important than the skill and knowledge base is the courage to take the plunge.
Our problem is we do not stretch ourselves.
However, it is appreciative that the current generations of youth do not have hang-ups
about the previous legacy and are willing to experiment. These are the people who will bring
about entrepreneurship in India.
At present, there are various organizations at the country level & state level offering
support to entrepreneurs in various ways. The Govt. of India & various State Governments
have been implementing various schemes & programmes aimed at nurturing entrepreneurship
over last four decades. For example, MCED in Maharashtra provides systematic training,
dissemination of the information & data regarding all aspects of entrepreneurship &
conducting research in entrepreneurship. Then there are various Govt. sponsored scheme for
the budding entrepreneurs.
Chapter No 3
Findings:
The rules and principles are similar for every entrepreneur who owns large or
small enterprise.
Only the difference is, The starter face toothache and hick ups at the early
stage ,where as existing business face different problems, limitations,
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Suggestion:
The enterprise that does not innovate inevitably ages and declines.
And in a period of rapid change such as the present, an entrepreneurial period,
the decline will be fast.
Innovation requires major effort.
It requires hard work on the part of performing, capable peoplethe scarcest
resource in any organization.
Chapter No. 4
CONCLUSIONS
There are ample opportunities in small businesses in India and such opportunities will
transform India in the coming future. For such transformation to happen there needs to be
support both at the governmental and societal level. For the government it is important to
realize that the goal of small business owners will be to remain self-employed. Such people
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The Indian experience has established that, when the right environment is created by the
policy makers, the entrepreneurial spirit of the people finds expression and the economic
activity booms. The government and the citizens alike have realized the potential of private
initiatives ever since the Indian economy was liberalized in the 1990s. The trend of private
enterprise is picking up pace in India and is likely to be supported by all executive and
legislative functions of the country irrespective of political ideologies.
Despite many challenges, the entrepreneurial opportunities in India are substantial. A newfound entrepreneurial culture is creating a favourable ecosystem of service and resource
providers. Besides government programs and agencies, a number of private funds, mentors,
and service providers are entering the arena to further accelerate the trend. There is a long
way to go to reach a mature entrepreneurial landscape in India, but the opportunities are
sufficiently large and numerous that the future of India will likely be shaped by its
entrepreneurs.
BIBLIOGRAPHY
Dev, Jaggi Vasu. "The 3 "I" Mantras of Entrepreneur". Business line, 2012.
Ratnagar, Shereen. Trading Encounters: From the Euphrates to the Indus in the Bronze.
Oxford University Press, India, 2006.
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WEBLIOGRAPHY
http://www.articlesbase.com/entrepreneurship-articles/
http://knowledgeportal.in/
http://dobato.blogspot.com/2006/02/scope-of-entrepreneurshipdevelopment.html
http://www.thehindubusinessline.com/
http://papers.ssrn.com/sol3/
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