Entrepreneur & Entrepreneurial Development

8/3/2019 Entrepreneur & Entrepreneurial Development

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Prepared by,Kushal Agarwal,Amit Kumar,Gaurav Seth

Entrepreneur &Entrepreneurial

development


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Who is an Entrepreneur?An entrepreneur is a person who starts anenterprise.

Peter Druckerdefines an entrepreneur asone who always searches for a changeresponds to it and exploits it as anopportunity. An entrepreneur innovates.

Innovation is a specific instrument of successavailable to entrepreneur.

According to Schumpeterentrepreneurs areinnovators who use a process of shattering

the status quo of the existing products and


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So we can say that an ENTREPRENEUR..

Is a person who develops and owns his ownenterprise

Is a moderate risk taker and works underuncertainty for achieving the goal.

Is innovative

Reflects strong urge to be independent.

Persistently tries to do something better.

Dissatisfied with routine activities.


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So we can say that an ENTREPRENEURCont..

Prepared to withstand the hard life.

Determined but patient

Exhibits sense of leadership

Also exhibits sense of competitiveness

Takes personals responsibility

Is Oriented towards the future.

Tends to persist in the face to adversity

Converts a situation into opportunity.


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What Makes Someone anEntrepreneur?

Creativity

Dedication

Determination

Flexibility

Leadership

Passion

Self-confidence

Smartness


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Views on making of an Entrepreneur

Economists view

Sociologists view

Psychologists view

Managers view


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Economists view

The economists view him as a fourth factor ofproduction along with land labor and capital.

1. Land.2. Labor.

3. Capital.

4. Entrepreneurship.

Economic incentives are the main motivatorsfor entrepreneurial activities.


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Economists view Cont..

Entrepreneurship and economic growth takeplace when the economic conditions arefavorable.

Mainstream economists view the supply ofentrepreneurship as highly elastic.

J.B. Say has stated that it is function of theentrepreneur to rationally combined the

forces of production into a new producingor anization


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Economists view Cont..

SCHUMPETERS entrepreneur possess threequalities:

An intuitional capacity to see things in a waywhich afterwards proves to be true;

A kind of effort of will and mind to overcomefixed habits of thinking; and

The capacity to overcome social oppositionagainst doing something new.


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Sociologists view

The sociologists feel that certain communitiesand cultures promote entrepreneurship likefor example in India we say that Gujaratis and

Sindhis are very enterprising.

Sociologists focused on theories thatconsidered the role of social norms and

legitimacy as well as social mobility inunderstanding the supply of entrepreneurshipin a society.

According to Peter Marris, to assemble or

reassemble from what is available, very


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Sociologists view Cont..

According to the sociologists the presence orabsence of certain social baits motivate or de-motivate individuals from taking up

entrepreneurial ventures. some of theimportant ones are:

Family background

Religious backgroundThe age of entry to entrepreneurship

Occupational background


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Psychologists view

The entrepreneur

wants to prove himself/herself more than

othershas the pressure to reach something

wants to be in control

is convinced he/she can do it betteris not afraid of taking risks


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Psychologists view Cont ..

Psychologists focused on such factors as theachievement-orientation and status-orientation of individuals within a population

to consider their likelihood of engaging inentrepreneurial behavior.

Psychologists emphasize that

entrepreneurship is not likely to emerge ordevelop when a society has a sufficient supplyof individuals possessing certain psychologicalcharacteristics such as adventures nature,ability to take calculated risk, communicationskills, leadership qualities, hardworking by


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Entrepreneurship gets a boost when societyhas sufficient supply of individuals withnecessary psychological characteristics

The psychological characteristics include needfor high achievement, a vision or foresight,ability to face opposition

These characteristics are formed during theindividuals upbringing which stress onstandards of excellence, self reliance and lowfather dominance


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According to McClellandit is high need forachievement which drives people towardsentrepreneurial activities.

Among psychologists, Frank Young describesan entrepreneur as a change-agent.

K. L. Sharma maintains that entrepreneurs are

men with qualities of leadership in solvingpersistent professional problems; but thosepersons likewise demonstrate eagerness toseize unusual opportunities.


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Managers view

Managers feel entrepreneurs areinnovators who come up with new ideas forproducts, markets or techniques.

According to Peter Kilby an Entrepreneur isone who performs the following functions:

Perception of market opportunities

Gaining command over scarce resources

Purchasing inputs

Marketing of product & responding to

competition


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ROLE OF ENTREPRENEURS IN SOCIO-ECONOMICDEVELOPMENT OF A COUNTRY

Entrepreneurship promotes capital formation bymobilizing the idle saving of the public.

It provides immediate large-scale employment. Thus, ithelps reduce the unemployment problem in the country,i.e., the root of all socio-economic problems.

It promotes balanced regional development.

It helps reduce the concentration of economic power.

It stimulates the equitable redistribution of wealth, incomeand even political power in the interest of the country.


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ROLE OF ENTREPRENEURS IN SOCIO-ECONOMICDEVELOPMENT OF A COUNTRY Cont..

It encourages effective resource mobilization of capitaland skill which might otherwise remain unutilized andidle.

It also induces backward and forward linkages whichstimulate the process of economic development in thecountry.

Last but no means the least, it also promotes country'sexport trade i.e., an important ingredient to economicdevelopment.

Thus it is dear that entrepreneurship serves as a catalyst of

economic development. On the whole, the role ofentre reneur shi in economic develo ment of a countr


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Growth ofEntrepreneurship InIndiaThe growth of entrepreneurship in India can be

presented into two sections viz..

Entrepreneurship during Pre-Independence

Entrepreneurship during Post-Independence


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Entrepreneurship during Pre-

Independence Before India came into contact with west, Indiantowns were mostly religious and aloof from thegeneral life of country.

Organized industrial activity was observableamong the India artisans in a few recognizableproducts in the cities of Banaras, Allahabad,Gaya, Puri & Mirzapur.

Much prestigious Indian handicraft industry,which was basically a cottage and small sector,declined at the end of the 18th century forvarious reasons.

Some scholars hold the view that manufacturin


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.Entrepreneurship during

Pre-Independence..The actual emergence of manufacturingentrepreneurship can be noticed in the secondhalf of the 19th century. Prior to 1850, some stayfailure attempts were, indeed , made by theEuropeans to setup factories in India.

The second wave of entrepreneurial growth inIndia began after the First World War.

Government agreed to 'discriminating' protectionto certain industries, even requiring thatcompanies receiving its benefits should beregistered in India with rupee capital and have aproportion of their directors as Indians.


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..Entrepreneurship during Pre-Independence

Reasons for slow growth of entrepreneurship inDuring British period in India :..

Not given proper protection

Discouragement by British Government

High railway freight charges

Exorbitant tariffs

Constantly harassed for getting licenses

No facilities for technical education

Entrepreneurs faced fierce competition from abroad

Lack of transportation and communication facilities


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ENTERPRENEURSHIP DURINGPOST- INDEPENDENCE

Government came forward with the firstIndustrial Policy, 1948 which was revised fromtime to time.

Government took three important measures inher industrial resolutions:-

(i) to maintain a proper distribution ofeconomic power between private and public

sector;

(ii) to encourage the tempo of industrializationby spreading entrepreneurship from the existingcenters to other cities, towns and villages, and


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.DURING POST-

INDEPENDENCE.. Several institutions like Directorate of Industries,Financial Corporations, Small-Scale IndustriesCorporations and Small Industries ServiceInstitute were also established by the

Government . Small-scale units emerged very rapidly in India

witnessing a tremendous increase in theirnumber from 121,619 in 1966 to 190,727 in

1970 registering an increase of 17,000 units peryear during the period under reference.

Prior to 1850, the manufacturingentrepreneurship was negligible lying dormant inartisans.


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..ENTERPRENEURSHIPDURING POST-INDEPENDENCEEven the small entrepreneurship continuedto be dominated by business communitiesthough at some places new groups of

entrepreneurs too emerged.some entrepreneurs grew from small to

medium-scale and from medium to large-

scale manufacturing units during theperiod.

The family entrepreneurship units like Tata,Birla, Mafatlal, Dalmia, Kirloskar and othersrew be ond the normall ex ected size


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DURING POST-

INDEPENDENCE.From 1980 to 1991, the averagenumber of companies formed

each year was 14,379, whilefrom 1992 to 2006, the averagenumber of companies formed

per year was 33,835.According to the paper,liberalisation itself kick-started


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ENTREPRENEURSHIP IN

INDIA According to the Global Entrepreneurship Monitor(2007) report, Indias High-Growth Expectation Early-Stage Entrepreneurship (HEA) rate is only one-fifth ofthat of China.

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 centamong females, while the corresponding figures in

urban India are 42 for males and 44 for females.

According to the 5th Economic Census conducted bythe Central Statistical Organisation (CSO), there are41.83 million establishments in the country engaged

in different economic activities other than crop


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Issues in the Current Framework

Finance: Access to credit isconsidered to be one of the keyproblems faced by

entrepreneurs .

Regulation and governance:An entrepreneur has to registerones business, obtain

government clearances and


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Issues in the Current Framework ..

Manpower: Availability ofskilled manpower is another

crucial issue forentrepreneurs.

- In the Global

Competitiveness Index, Indiaranks 102nd in hiring and f ring

practices and 85th in


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ENTREPRENEURSHIP

DEVELOPMENT IN INDIA In India there is a dearth of quality peoplein industry, which demands high level ofentrepreneurship development

programme through out the country forthe growth of Indian economy.

The scope of entrepreneurship

development in country like India istremendous.

the current generations of youth do nothave hang-ups about the previous legacyand are willin to ex eriment. These are


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Queries


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