ENTREPRENEURIAL MOTIVATION

 

 

   

 

Process of

Motivation

Goal Motive

Behaviour 

MOTIVATION THEORIESMaslow's Need Hierarchy Theory

Self –Actualisation

Esteem & status needs

Social needs

Safety & security needs

Physiological 

McClelland's Acquired Needs Theory

1) Need for Affiliation

2) Need for Power

3) Need for Achievement

The people with high need for achievement are characterized by the

following:

(i) They set moderate, realistic and attainable goals for them.

(ii) Prefer to situations in which they can find solutions for solving

personal respon sibility.

(iii) They need concrete feedback on how well they are doing.

(iv) They have need for achievement for attaining personal

accomplishment.

(v) They look for challenging tasks.

MOTIVATING FACTORS

1. Internal Factors

(a) Desire to do something new

(b) Educational background

(c) Occupational background or experience

.

External Factors:

(a) Government assistance and support

(b) Availability of labour and raw material

(c) Encouragement from big business houses.

(d) Promising demand for the product.

ENVIRONMENTAL FACTORS AFFECTING ENTREPRENEURSHIP

I. ECONOMIC CONDITION:

1) Capital

2) Labor

3) Raw materials

4) Markets

II. SOCIAL FACTORS

1) Legitimacy of Entrepreneurship

2) Social mobility

3) Security

III.PSYCHOLOGICAL FACTORS

1) David McClelland’s Theory of need achievement

2) Hagen’s withdrawal of status respect

IV.GOVERNMENTAL INFLUENCE

ENTREPRENEURIAL MOBILITY

FACTORS INFLUENCING ENTREPRENEURIAL

MOBILITY

1. Education

2. Experience

3. Availability of facilities

4. Political conditions

5. Size of enterprise

6. Location

7. occupation

ROLE OF CULTURE IN ENTREPRENEURIAL DEVELOPMENT

Environment For Entrepreneurship

1) Socio-economic environment

2) Family background

3) Standard of education and technical knowledge

4) Financial stability

5) Political stability and government’s policy

6) Caste and religious affiliation

7) Availability of supporting facilities

8) Achievement motivation and

9) Personality and personal skill

ENTREPRENEURIAL CULTURE

culture consists of tangible man-made objects, such as

automobiles, clothing, furniture, buildings and tools and intangible

concepts such as laws, morals, and knowledge. In addition, culture

includes the values, character, qualities, skills acceptable within the

particular society.

entrepreneurial culture thus implies vision, values, norms and

traits that are conductive for the development of the economy

Sub-cultures Of Entrepreneurship

1) Culture Of A Business

2) Business Ethics

3) Productivity Culture

4) Total Quality Culture

5) Organization's Culture

ENTREPRENEURIAL DEVELOPMENT PROGRAMME (EDP)

“entrepreneurial development programme may be defined

as a programme 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”.

ENTREPRENEURIAL DEVELOPMENT CYCLE

SUPPORT

SUSTAINING

SIMULATORY

ENTREPRENEURIAL CYCLE

TRAINING PROGRMME CONSIST OF SIX MODULES

1) Introduction of entrepreneurship

2) Motivation training

3) Essentials of management

4) Fundamentals of project feasibility

5) Organizing the business

6) Plant visit

STRATEGY / ROLE FOR ENTREPRENEURSHIP

DEVELOPMENT

1) Dynamic role of public entrepreneurship

2) Development of industrial culture

3) Development of management education and industrial

training

4) Development of backward areas

5) Adequate measures for mobilizing talent

6) Better economic administration

7) Adequate and timely credit

ISSUES OF ENTREPRENEURIAL DEVELOPMENT

PROGRAMMES

1) Structure and composition of EDP

2) Areas of operation

3) Fixing priorities

4) Lack of specialists support

5) Low institutional commitment

6) Non-availability of inputs

7) ill-planned training methodology

8) No clear-cut objective

9) Lack of clarity in approach and

10)Lack of creativity and commitment

SPECIALISIED ENTREPRENEURSHIP

DEVELOPMENT AGENCIES

1. Small Industries Service Institutes (SISI)

a) Industrial management course

b) Intensive courses

c) Special courses

2.Small Industries Development Organization (SIDO)

3.National Small Industries Corporation

4.Small Industries Extension Training Institute

5. Entrepreneurship Development Institute Of India

a)Selecting potential entrepreneurs

b)Product selection and project report preparation

c)Practical training and work experience

d)Post training support and follow-up

6.Institute For Rural Management And Administration

7. National Institute Of Entrepreneurship And Small

Business Development (NISEBUD)

a) To help institution in carrying out activities relating

to entrepreneurship development

b) To provide vital information, support to trainers,

promoters & entrepreneurs

c) To hole examination & test & confer certificates &

diplomas

8. Maharashtra Centre For Entrepreneurship

Development(MCED)

8. Entrepreneurship Development Institute Of India (EDII)

• Increase the supply of trained entrepreneurs through training

• Improve managerial capabilities of small-scale industries

• Contribute to the dispersal of business ownership and thus expand

the social base of Indian entrepreneurial class

• Participate in institution-building efforts

• Promote micro-enterprises at the rural level

• Inculcate the spirit of ‘Entrepreneurship’ amongst youth and

• Collaborate with similar organizations in India and other

developing countries to accomplish the above objectives

The people with high need for achievement are characterized by the

following:

(i) They set moderate, realistic and attainable goals for them.

(ii) Prefer to situations in which they can find solutions for solving

personal respon sibility.

(iii) They need concrete feedback on how well they are doing.

(iv) They have need for achievement for attaining personal

accomplishment.

(v) They look for challenging tasks.

ENTERPRISE

Enterprise serves as the framework within which decisions

concerning what to produce and how to produce are taken by

the owner or manager.

FEATURES OF AN ENTERPRISE

An enterprise consists of people who work together

primarily for the purpose of making & selling products

& services.

An enterprise utilizes inputs to produce and sell

Every enterprise makes a comparison between its cost

and gains.

An enterprise is a continuing entity.

RURAL ENTREPRENEURSHIP

DEFINITION:

“village industry or rural industry means any

industry located in rural area, population of which does not

exceed 10,000 or such other figure which produces any

goods or renders any services with or without use of power

and in which the fixed capital investment”.

RURAL INDUSTRIES HAVE BEEN CLASSIFIED

INTO FOLLOWING

1) Mineral –based industry

2) Forest-based industry

3) Agro-based industry

4) Polymer and chemical-based industry

5) Engineering and non-conventional industry

6) Textile-industry (Including khadi)

7) Service industry

IMPORTANCE OF RURAL ENTREPRENEURSHIP

1) Create Employment Opportunities

2) Labour Intensive

3) Rural Development

4) Promotion of Artistic Achievement

5) Less Gestation Period

6) Correct Regional Imbalances

7) Employment at the Place of Residence

PROBLEM OF RURAL ENTREPRENEURSHIP

1) Inadequate flow of credit

2) Use of obsolete technology, machinery and equipment

3) Poor quality standards

4) Inadequate infrastructure facilities

HOW TO DEVELOP RURAL ENTREPRENEURSHIP

1) To strengthen the raw material vase in rural areas

2) Funds need to be made available on time at soft terms &

conditions.

3) Common production-cum-marketing centers need to be

set up and developed with modern infrastructure

facilities in the area having good production and growth

4) Legislative measures have to betaken to make the

government purchases compulsory from rural industries

5) A need to develop entrepreneurial attitude and competencies among the prospective entrepreneurs.

6) Imparting entrepreneurial education in the schools, colleges, and universities.

7) Disseminate information about facilities provided to the entrepreneurs

8) Proper provisions need to be made to impart the institutional training to orient the entrepreneurs inspecific products and trades so that the local resources can be harnessed properly.

NGOs & RURAL ENTREPRENEURSHIP

The training imparted by the NGOs are classified in to three

1) Stimulation

2) Counseling

3) Assistance

THE NGOs HAVE REVEALED FOLLOWING

STRENGTHS

1) The lean overhead & operating costs to reach the poor &

needy.

2) Flexibility and responsiveness in operation to invent

appropriate solution.

3) Nearness to client groups made them to be sensitive to

community need.

4) Capacity for innovation and experimentation with new

groups and untried development approach.

5) Stimulating and mobilizing interest in the community

6) Dependence on customer satisfaction

7) Act as a test bed and soundboard for government

policies and programmes.

THE WEAKNESSES THE NGOs SUFFER

1) Role conflict as to the traditional areas of operation and

micro entrepreneurship development

2) Doubtful leadership and succession

3) Anti-business philosophy, lack of programme integration

but to lack of proper understanding of entrepreneurship

approach

4) Inadequate opportunities to work as trainer

5) Absence of impact assessment because of self-

righteousness on the part of NGO leaders.

6) Not all NGOs are ready and equipped to take up this

activity

COTTAGE INDUSTRY

the cottage industries form the smallest segment

among the small-scale industries. They are largely

household enterprises. These industries have limited

scope for development in the urban areas as they have to

face stiff competition from small scale industries. They

come under regulation of KVIC.

ANCILLARY INDUSTRY

An ancillary industry is defined as “A unit having

investment in fixed assets in plant and machinery not

exceeding as 100 lacs and engaged in the manufacture of

parts, components, sub assemblies, looks or intermediates

or renders services and supplies or proposes to supply 50%

of their production to one or more units or 10% of their

production to one large unit.

INDUSTRIAL ESTATE

According to P. C. Alexander and Industrial Estate is

“a group of factories, constructed on an economic scale in

suitable sites with facilities of water, transport, electricity,

bank, post office, canteen, watch and ward and first-aid

and provided with special arrangements for technical

guidance and common service facilities”.

CUSTOMIZATION

Customization is the ability to automatically

provide information and services customized to an

individual customer or user. It is a strategic business

capability of the internet and extranet. Efficient, low cost,

inter-active target marketing to an individual customer or

prospects is a key business value of internet technologies.

ACQUISITION OR ACQUISITIONING

in takeover/acquisition one company gets the

control over the other company such an acquisition may

be for cost saving, expansion or revival or for getting

global

Entrepreneurs must decide whether to buy a business or to

start one and the decision must encompass both personal

and commercial consideration.

FRANCHISING :

Franchising is a vertical co-operatively organized

sales system of legally independent entrepreneurs based

on an ongoing performance of franchises instructions and

control system that ensures behaviour in conformance

with the system.

Company-owned V/S Franchising More control over units

No sharing of profits

Ease of instituting changes in units

Ease in testing new products or services

Ability to change the basic products goal of the organization

Key Opportunity

food & beverages

fashion retail

specialty retail

health, beauty & fitness

Education & training

OUTSOURCING

Outsourcing is defined as transfer or delegation to

an external service provider, the operation and day-to-day

management of a business process. The customer receives

a service that performs a distinct business function that

fits in to the customer’s overall business operation.

BENEFITS OF OUTSOURCING

1. Cost-effective

2. Prompt and efficient

3. Time saving

4. Competitive

5. Improves performance

6. Customer friendly

7. Access to best-practices