Future Of Entrepreneurship In India

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.

1

Future Of Entrepreneurship In India

2.2 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

iPhone1

1 Source: Boundless. “Introduction to Entrepreneurship.” Boundless Management. Boundless, 08 Dec. 2014. Retrieved 20 Jan. 2015 from https://www.boundless.com/management/textbooks/boundless-management-textbook/introduction-to-management-1/entrepreneurship-22/introduction-to-entrepreneurship-140-3911/

2

Future Of Entrepreneurship In India

2.3 BACKGROUND OF STUDY

In recent years, "entrepreneurship" has been extended from its origins in business to

include social and political activity.[according to whom?] Entrepreneurship within an

existing firm or large organization has been referred to as intrapreneurship and may include

corporate ventures where large entities spin off subsidiary organizations.[1] Entrepreneurs are

leaders willing to take risk and exercise initiative, taking advantage of market opportunities

by planning, organizing, and employing resources,[2] often by innovating new or improving

existing products.[3] More recently, the term entrepreneurship has been extended to include a

specific mindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives, e.g.

in the form of social entrepreneurship, political entrepreneurship, or knowledge

entrepreneurship.

According to Paul Reynolds, founder of the Global Entrepreneurship Monitor, "by the

time they reach their retirement years, half of all working men in the United States probably

have a period of self-employment of one or more years; one in four may have engaged in

self-employment for six or more years. Participating in a new business creation is a common

activity among U.S. workers over the course of their careers."[4] In recent years,

entrepreneurship has been claimed as a major driver of economic growth in both the United

States and Western Europe.

Entrepreneurial activities differ substantially depending on the type of organization

and creativity involved. Entrepreneurship ranges in scale from solo, part-time projects to

large-scale undertakings that create many jobs. Many "high value" entrepreneurial ventures

seek venture capital or angel funding (seed money) in order to raise capital for building the

business.[5] Many organizations exist to support would-be entrepreneurs, including

specialized government agencies, business incubators, science parks, and some NGOs.

Beginning in 2008, an annual "Global Entrepreneurship Week" event aimed at

"exposing people to the benefits of entrepreneurship" and getting them to "participate in

entrepreneurial-related activities".[who?]

3

Future Of Entrepreneurship In India

2.4 OBJECTIVE OF THE STUDY

Entrepreneurship is a catalyzer of growth and innovation.

The tools to start a business with a well-tested and clear plan in place,

Ongoing skills development to help companies succeed and grow,

The ability to stay current in today's changing marketplace, which is essential for

small business owners and managers to succeed.

2.5 SCOPE OF THE STUDY

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

4

Future Of Entrepreneurship In India

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. The researcher has also included a case study so as to get a better understanding of the project.

.

5

Future Of Entrepreneurship In India

CHAPTER 2

2.1 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

organizations, particularly new businesses generally in response to identified opportunities.

Entrepreneurship is a creative human act involving the mobilization of resources from one

level of productive use to a higher level of use. "It is the process by which the individual

pursue opportunities without regard to resources currently controlled."

Entrepreneurship involves a willingness to take responsibility and ability to put mind

to a task and see it through from inception to completion. Another ingredient of

entrepreneurship is sensing opportunities, while others see chaos, contradiction, and

confusion. Essence of Entrepreneurship is going against time with maturity and serving as a

change agent.

2.3 BACKGROUND:

6

Future Of Entrepreneurship In India

Entrepreneurship is considered to be a significant determinant of economic development.

New entrepreneurial activities play a vital part in the process of creative destruction that

fosters innovation, employment, and growth. While India has traditionally been an

entrepreneurial country, it fares poorly in numerous global studies exploring the

entrepreneurial and business potential of countries but, on the other hand 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. Then, there is the entire global opportunity, across diverse sectors internationally, the

"Made in India" tag is now an increasingly respected brand, valued for quality, reliability,

and competitiveness. Truly, with economic reforms in the country, and with the virtual

removal of all trade barriers, the world is now our market and our opportunity. The pursuit of

these opportunities requires an indomitable spirit of entrepreneurship. Entrepreneurship is

often a difficult undertaking, as a vast majority of new businesses fail. Entrepreneurial

activities are substantially different depending on the type of organization that is being

started. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur

only part-time) to major undertakings creating many job opportunities. Many "high-profile"

entrepreneurial ventures seek venture capital or angel funding in order to raise capital to build

the business. Angel investors generally seek returns of 20-30% and more extensive

involvement in the business

2.4 GROWTH OF ENTREPRENEURSHIP IN INDIA

7

Future Of Entrepreneurship In India

The proper understanding of the growth of entrepreneurship of any country would evolve within the context of the economic history of the particular country becomes the subject matter of this section. The growth of entrepreneurship in India is, therefore, presented into two sections viz.

Entrepreneurship during Pre-Independence Entrepreneurship during Post-Independence

A.) ENTREPRENEURSHIP DURING PRE-INDEPENDENCE:

The evolution of the Indian entrepreneurship can be traced back to even as early as Rigveda, when metal handicrafts existed in the society. This would bring the point home that handicrafts entrepreneurship in India was as old as the human civilization itself, and was nurtured by the craftsman as a part of their duty towards the society. Before India came into contact with west, people were organized in a particular type of economic and social system of the village community. Then, the village community featured the economic scene in India. The Indian towns were mostly religious and aloof from the general life of country. The elaborated cast based diversion of workers consisted of farmers, artisans and religious priests. The majority of the artisans were treated as village servants. Such compact system of village community effectively protecting village artisans from the onslaughts of external competition was one of the important contributing factors to the absence of localization of industry in ancient India.

Evidently, organized industrial activity was observable among the India artisans in a few recognizable products in the cities of Banaras, Allahabad, Gaya, Puri & Mirzapur which were established on their river basins. Very possibly this was because the rivers served as a means of transportation facilities. These artisan industries flourished over the period because the Royal patronage was to them to support them. The workshops called ‘kharkhanas’ came into existence. The craftsmen were brought into an association pronounced as ‘guild system’. On the whole, perfection in art, durability beyond doubt and appeal to the eye of the individual were the distinguishing qualities inherent in the Indian craftsmanship that brought much everlasting laurels of name and fame of the illustrious India in the past. To quote, Bengal enjoyed worldwide celebrity for Corah, Lucknow for chintzes, Ahmadabad for dupttas, and dhotis, Nagpur for silk boarded cloth, Kashmir for shawls and Banaras for metal wares. Thus, form the immemorial till the earlier years of the 18th century, India enjoyed the prestigious status of the queen of the international trade with the help of its handicrafts.

Unfortunately, so much prestigious Indian handicraft industry, which was basically a cottage and small sector, declined at the end of the 18th century for various reasons. These may be listed as-

Disappearance of the Indian royal courts who patronized the crafts earlier. The lukewarm attitude of the British colonial govt. towards the Indian crafts. Imposition of heavy duties on the imports of the Indian goods in England.

8

Future Of Entrepreneurship In India

Low priced British made goods produce on large scale which reduced the competing capacity of the product of the Indian handicrafts.

Development of transport in Indian facilitating the easy access of British product even to far-flung remote part of the country.

Changes in the tastes and habits of the Indian, developing craziness of foreign products.

Unwillingness of the Indian craftsmen to adapt to the changing tastes and needs of the people.

Reasons for slow growth of entrepreneurship in During British period in India.

Not given proper protection: The enterprises were not given proper protection by British Government.

Discouragement by British Government: Only those industries in which the British Government put their own capital were given encouragement.

High railway freight charges: The railway freight charges were higher for locations not nearer to the ports. This proved that the transportation of the goods manufactured for the Indian markets were more expensive than goods meant for exports.

Exorbitant tariffs: The British imposed exorbitant tariffs on India made goods. Constantly harassed for getting licenses: Entrepreneurs were constantly harassed

for getting licenses and finance to established and run industries. No facilities for technical education: there were almost any facilities for technical

education which alone could strength Indian industrial entrepreneurship. Lack of transportation and communication facilities: Lack of transportation and

communication facilities acted as the stumbling blot in the way of industrial growth. Not encouraged the establishment of heavy industries: The British Government

did not encourage the establishment of heavy industries like heavy machinery, iron and steel which are necessary for rapid industrialization.

Political turmoil: Political turmoil and abolition of princely courts discouraged the growth of entrepreneurship.

Multi-currency system: Prevalence of multi currency system affected the business environment and blocked the growth.

Inspite of the above problems, the export trade of textile in 17th century was on ascending trend. During this period, grouping of Indian merchants into joint stock associations for the purpose of managing the supply of textiles to European companies was very significant. This helped in exporting huge volume of textiles to the European markets leading to favorable terms of trade.

ENTERPRENEURSHIP DURING POST- INDEPENDENCE

After taking a long sign of political relief in 1947, the Government of India tried to spell out the priorities to devise a scheme for achieving balanced growth. For this purpose,

9

Future Of Entrepreneurship In India

the Government came forward with the first Industrial Policy, 1948 which was revised from time to time." The Government in her various industrial policy statements identified the responsibility of the State to promote, assist and develop industries in the national interest. It also explicitly recognised the vital role of the private sector in accelerating industrial development and, for this, enough field was reserved for the private sector.

The Government took three important measures in her industrial resolutions:- to maintain a proper distribution of economic power between private and

public sector; to encourage the tempo of industrialization by spreading entrepreneurship

from the existing centers to other cities, towns and villages, and to disseminate the entrepreneurship acumen concentrated in a few dominant

communities to a large number of industrially potential people of varied social strata.

To achieve these adumbrated objectives, the Government accorded emphasis on the development of small-scale industries in the country. Particularly since the Third Five Year Plan, the Government started to provide various incentives and concessions in the form of capital, technical know-how, markets and land to the potential entrepreneurs to establish industries in the industrially potential areas to remove the regional imbalances in development. This was, indeed, a major step taken by the Government to initiate interested people of varied social strata to enter the small-scale manufacturing field. Several institutions like Directorate of Industries, Financial Corporations, Small-Scale Industries Corporations and Small Industries Service Institute were also established by the Government to facilitate the new entrepreneurs in setting up their enterprises. Expectedly, the small-scale units emerged very rapidly in India witnessing a tremendous increase in their number from 121,619 in 1966 to 190,727 in 1970 registering an increase of 17,000 units per year during the period under reference.

“Liberalization was catalyst for growth of Entrepreneurship in India”

“Post-liberalization, entrepreneurship has generally increased in India,” Dr Mani told Business Line. And knowledge-intensive entrepreneurship in sectors such as IT and biotechnology has also increased since the economic liberalization process started in 1991, he added.

The number of new companies formed during the 1980-2006 period points to a possible growth in entrepreneurship. Figures from the Ministry of Corporate Affairs show that from 1980 to 1991, the average number of companies formed each year was 14,379, while from 1992 to 2006, the average number of companies formed per year was 33,835. According to the paper, liberalisation itself kick-started the growth of entrepreneurship in India for it presented businesses in the country with new market opportunities.

10

Future Of Entrepreneurship In India

Liberalisation also reduced entry barriers for new entrepreneurs as it dispensed with or reduced regulatory measures such as industrial licensing. Similarly, improved availability of financial support from both official and private sources boosted the growth of entrepreneurship. However, entrepreneurship in India could have grown much faster if the capital market had been strengthened to support the system.

Even today, the capital market is not a major source of finance for enterprises, which mostly rely on internal sources of funding or debt. A study of 588 start-ups that participated in a competition conducted recently by National Entrepreneurship Network revealed that 70 per cent relied on personal savings for initial funding, he pointed out. Government-supported and public-private partnership ventures such as the National Science and Technology Entrepreneurship Development Board, Technopreneur Promotion Programme and business incubators in colleges and technology parks also facilitated the growth of entrepreneurship in India.

Simultaneously, private sector initiatives such as The Indus Entrepreneurs and National Entrepreneurship Network also supported India’s knowledge-intensive enterprises. The increased availability of technically trained people and programmes that offered formal training in entrepreneurship also bolstered the growth of entrepreneurship.

2.5 CURRENT SCENARIO OF ENTREPRENEURSHIP IN INDIA

According to the Global Entrepreneurship Monitor (2007) report, India’s High-Growth Expectation Early-Stage Entrepreneurship (HEA) rate is only one-fifth of that of China. Further, among medium and low income countries, while China’s nascent and new entrepreneurs appear to be the most growth-oriented, with more than 10 per cent of them anticipating high growth. Early-stage entrepreneurial activity in India is marked by low levels of growth expectation. This is despite the extremely high levels of potential entrepreneurial activity as perceived by the non-entrepreneurially active population in the country. While data on entrepreneurship is hard to come by, the following numbers are telling. According to the NSS 62nd round, in rural India, almost 50 per cent of all workers are self-employed – 57 per cent among males and nearly 62 per cent among females, while the corresponding figures in urban India are 42 for males and 44 for females. The NSSO defines a self-employed person as one who has worked in household enterprises as own-account worker; worked in household enterprises as an employer or worked in household enterprises as helper. The essential feature of the self-employed is that they have autonomy (decide how, where and when to produce) and economic independence (in respect of choice of market, scale of operation and finance) for carrying out their operation. According to the 5th Economic Census conducted by the Central Statistical Organisation (CSO), there are 41.83 million establishments in the country engaged in different economic activities other than crop production and plantation. Five states viz. Tamil Nadu (10.60 per cent), Maharashtra (10.10 per cent), West Bengal (10.05 per cent), Uttar Pradesh (9.61 per cent) and Andhra Pradesh (9.56 per cent) together account for about 50 percent of the total establishments in the

11

Future Of Entrepreneurship In India

country. The same five states also have the combined share of about 50 per cent of total employment.

12

Future Of Entrepreneurship In India

2.6 What is the future of entrepreneurship in India?

In India, business was traditionally considered to be the domain of scholarly challenged individuals or the result of natural inheritance within business communities. Gradually, the appetite for risk and the acceptance of failure increased, but only recently have alternate professions and the idea of "following one’s dream" gained approval. In particular, entrepreneurship caught the fancy of the Indian middle class after the economy was liberalized. The economic reforms introduced in 1991 reduced the bureaucratic controls, promoted private enterprise, and lowered the barriers to creating new businesses. Coupled with the emergence of knowledge economy, the demand for skilled employees greatly increased and a trend emerged toward technology entrepreneurship in the services sector, which is less capital-intensive than traditional industries.

Indeed, the future of entrepreneurship in India lies in the services sector, and the Government of India is providing support to encourage this trend. However, there are as many challenges as there are opportunities, as will be discussed below.

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).

13

Future Of Entrepreneurship In India

The Government of India promoted and supported small and medium-sized enterprises (SMEs) in India by establishing clusters across the country. District Industry Centres were established in all major cities and towns of India. Cottage industries were established and promoted through various support programs under the Khadi and Village Industries Commission. In 2006, the Government of India established the Ministry of Ministry of Micro, Small & Medium Enterprises (Ministry of MSME), which provides support in the form of infrastructure resources, funds, training, and tax benefits.

Besides government initiatives, many private organizations are helping build the entrepreneurial ecosystem and related support services. A number of private incubators and accelerators have entered the field in the past few years, though most of these are located in the main technology hubs of the country (i.e., Delhi-NCR, Mumbai, Bangalore, Pune, Hyderabad, Chennai, Kolkata) leaving a lot of scope for penetration to less prominent cities and towns.

Challenges and Opportunities

The number of technology startups has tripled in last six years, from about 1000 to 3000 startups.

Two-thirds of entrepreneurs are less than 30 years of age. Health care, retail, and SMAC (social, mobility, analytics, and cloud) are the hot beds

of technology entrepreneurship. The number of angel investors has grown from 7 to 32 from 2006 to 2012 while the

number of venture capitalists has grown from 43 to 48 in the same period.

Thus, the entrepreneurial journey of an independent India has only just begun and the road ahead is full of promise, provided that a favourable ecosystem continues to develop and give wings to this fledgling trend. There is much to desire in terms of policy reforms and support system available to entrepreneurs. However, numerous challenges and related opportunities remain and can be summarized as follows:

2.7 ISSUES IN THE CURRENT FRAMEWORK:

14

Future Of Entrepreneurship In India

Finance: Access to credit is considered to be one of the key problems faced by entrepreneurs in India. This problem is particularly acute at the start-up stage, where bank finance is hard to obtain. Despite new sources of finance such as venture capital, angel funding and private equity becoming increasingly popular, institutional finance is still not able to meet the current entrepreneurial demands.

Regulation and governance: An entrepreneur has to deal with a host of regulatory and compliance issues. These include registering one’s business, obtaining government clearances and licenses, paying taxes and complying with labour regulations. Cumbersome paperwork, long delays and red tapism involved in such transactions create unnecessary burdens for entrepreneurs, constraining their productivity and their ability to do business. As seen in the Doing Business 2008 rankings, India performs poorly in these indicators. A study investigating the effect of regulation on entrepreneurship using the GEM dataset shows India to be having one of the worst regulatory indices. Moreover, lack of clarity on information relating to legal and procedural aspects of starting an enterprise, as well as those relating to clearances, licenses and government schemes further aggravates the problem.

Manpower: Availability of skilled manpower is another crucial issue for entrepreneurs. For example, in a survey of entrepreneurs conducted by KPMG and TiE in 2008, skilled manpower emerged as the second most important factor for fostering entrepreneurial growth. Further parameters reflecting labour market efficiency and flexibility are dismal. In the Global Competitiveness Index, India ranks 102nd in hiring and f ring practices and 85th in employing workers in the Doing Business 2008 report.

Infrastructure: India’s physical infrastructure – roads, rail, ports, power, and telecom – is also considered to be a bottleneck to the smooth operation of entrepreneurial activity. The high transport and supply chain costs that poor infrastructure entails can be affect competitiveness to a great extent, particularly for a small and medium enterprise. Enterprises surveyed in the Global Competitiveness Report 2007-08, rated inadequate infrastructure as ‘the most problematic factor’ for doing business in India.

Education: While the influence of education on entrepreneurship is considered debatable,increasingly education is being seen as part of the larger ecosystem that impacts entreprene-urship and entrepreneurial motivations. Greater practical exposure, critical analysis, entrepreneurship curriculum, incubation and mentoring, industry-research linkages can help in fostering entrepreneurship.

15

Future Of Entrepreneurship In India

2.8 SCOPE OF ENTREPRENEURSHIP DEVELOPMENT IN INDIA

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,

16

Future Of Entrepreneurship In India

management problems and constraints in the market etc. Both the cases it needs to learn many things and should be innovative for the survival in the business market.

The daily crisis cannot be postponed, it has to be dealt with right away. And the existing operation demands high priority and deserves it. It thus takes special effort for the existing business to become entrepreneurial and innovative.

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 people—the 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

17

Future Of Entrepreneurship In India

may not need financial assistance but they will need marketing and legal assistance in order to sustain themselves. Practical and cost effective programs need to be developed to address their needs because self-employed people will represent an important segment in economic revitalization. Entrepreneurship development is the key factor to fight against unemployment, poverty and to prepare ourselves for globalization in order to achieve overall Indian economic progress

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 new-found 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.

18

Future Of Entrepreneurship In India

WEBLIOGRAPHY

http://www.articlesbase.com/entrepreneurship-articles/

http://knowledgeportal.in/

http://dobato.blogspot.com/2006/02/scope-of-entrepreneurship-development.html

http://www.thehindubusinessline.com/

http://papers.ssrn.com/sol3/

19