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