Mopute No. 3 Cuarter — 5 ‘, ‘ 3 ENTREPRENEURSHIP a DEVELOPMENT urship vatures - Entrepreneurship process — Stimulating va or natitutions supporting entrepreneurship at - Meaning ~ Influencing factors ~ Need for entrepreneurship — riables - Problems of | national and state levels. se ) The concept of entrepreneurship is a complex pheno! entrepreneur, his vision and its implementation. The key _ Entrepreneurship refers to a process of action an entrepreneur (person) undertakes to | ‘establish his/her enterprise. It is a creative and innovative response to the environment. Entrepreneurship is thus a cycle of actions to further the interest of the entrepreneur. Inacademic field, entrepreneurship is explored and studied in detail by economists, sociologists, p' , environmentalists and even by political thinkers. Each one of e has perceived and assessed the importance of entrepreneurship from their menon, Broadly, it relates to player is the ontrepronevy- Richard Cantillon and Adam Smith made the study of entrepreneurship, back in later part of 17" and early part of 18* centuries. Sincere attempts were not study entrepreneurship theoretically in 19® and early 20° century. Joseph Shumpter el ‘Austrian economists made a study of entrepreneurship in 1930s. Shumpeter {this concept~"The gale of creative destruction”. This means that inferior innovations j acTO ‘markets and industries have to be replaced by simultaneously creating including new business models. said that innovations made were only the improvements over the are using plastic in place of paper, replacing glass containers by g various types of instruments including negotiable instruments i $s ple started conducting empirical studi ‘aoe Tate 1970s. This was considered as a patil anthers ra from the beginning of 21" century economic entrepreneurshipEnraprnwwwi lp by, 70 jp, This moans 1 G ving) was oxtonde 4 to “soclal ontropronourel) ey ino Corpor rofit making, conomic aspe' iB enitreeptqnex wily ‘entrepreneurship, besides covering ores in the ovO%0) gouls of or uretiip, KOCH, social, environmental OF humargimonsions uch as, sock) entropy" ms ‘entroproneurship assume funding (10 OVS te pital oF ee rea, nON-GOVENI to such as vorture ology P# usiness incubators, soience and technology iB clallaod a sdations, business advocacy groupe entrepreneurahip- Pe Aboy for start-ups, extending ee ae Si ae neit entrepreneurship in a big w entreprsnen: (chambers oA comm, ‘This has sorved as tonic ip is a complex phenomenon, resi fe propensity of mind to take calculated risks with fiden Pee re date eee business or industrial objective. I: isthe risk-taking ability of the individual, broadly coupled with corres ‘When one witnesses a. relatively larger number of individuals and th ina particular community, who engage therzelves in pursuits and appear to take risks and show enterprise class. This means that entrepreneurship is passed ‘Thus, entrepreneurship may be understood as “The proces: anew enterprise and bearing any of its rizks, with E and entrepreneurship are the two sides of the coin, A a ny approach is necessary to be able to enterpr securing the required licences, approvals and financial agencies, The personal incentive is to make profits nt of the project. A sense of cost consciousness is even more Without i eae Beecereee cn auaty andi desize for ay hieved and sustained. Above all, ee pi ana the ability to create, build the maestro business orchestra, wielding eenneprenesranio DACTHOPmen! hip = Influencing Factors SAT @ economic, (i) psychological and (ii!) social factor® influence ontzel ired to start 4 yr factors: Economic factors refer to resource? requ $hich includes manufacturing, trade and service. esources being ~ capital, labour and land. pronourstsD- yasiness pntrepreneur has to rote ver aintain reserve capital aide required caP** {a) Capital: This is the lifeblood of any business activity. both working and fixed capital. Besides, he has 'o ta business period. Many types of financial institution’ pr and true entrepreneur gets all types of finance- ive labour. This 18 i roducti (@) Labour: Entrepreneur should be capable of selecting Pr f information ing task. Inspi ‘and adaptation of in i Ghallenging task. Inspite of the fast growth and WUT rs ryiting quality fas tte tar i technology in business processes, entrepreneur i le growth. juman resources and maintain them for sustainable h-Labomnot get able 2 nator which influences business process and entropre™" iz ved iizepreneurs to run his show. If he can recruit and tain productive labour he 4 through in his business. dg ‘s 4 ; ital role in the success of & (@) Land: The location of business enterprise plays a vi io basiness Cr ny jpusiness: Entrepreneur has either to have his own Jand to locate th 288 hhe has to hire or obtain the land on lease basis, in a required location. Obtaining tical factor of dy __ the Jand to locate the business in a specific location is 2 cr es. _ entrepreneurship. iS (a) Raw-material: Another factor which influences entrepreneurshipis the availability S - ofcheap raw material for manufacturing the goods. Entrepreneur should possess ‘of managing vendors and suppliers of raw material. ervice is also a challenging strategy which facilitates 3 of entrepreneur depends .Ayailing continuous market for. products and s« entrepreneur. He has to adapt a marketing sales of his products or service. The succes: he manages competition in the market. port: This is another influencing factor of entrepreneurship. Inbound ng raw material and other inputs to the manufacturing site) and ing finished goods to market place on time) transport a vital factor for entrepreneur. economic factors, factors such as warehousing, packaging, it also pose challenges to entrepreneur and a self-motivated These are also called “Motivational factors” which influence a of mind of entrepreneur ‘will be the motivating factor s of an entrepreneur is mainly directed by his positiveey and Gi) opportuniy gnemployment sh factor (necessity dem¢ to select thez tic set UP, people are free iz i hand practiced social norms and values to become entrepreneurs in anopenané sty With the expectation of exploiting available natural resource: of the society, people encourage men with ability to become : Successful entrepreneurs become role models for tion to take to entrepreneurship. Entrepreneurship developmentis continuous activity of any society. Societal needs encourage the entrepreneurs. Current day entrepreneurs encourage generation to become entrepreneurs. Another social factor that influences entrepreneurship . Those, who want to be independent and have creative people to become entrepreneurs to social peers tnence people to become factors infuence entrepreneurship2 envornairanp DSI! préheurship aS ‘Tho need for entrepreneurship lies in the development of entreprenet=# i xxi promoting small business units, spreneurial competence makes all the difference in the rate of Score ana qn india, stato and private entrepreneurship co-exist, MSME, sector and busine singly tely fo private entrepreneurs, It is, therofore, in this context that an WETS eo, portant role has been assigned to the identification and promotion of entreprens this sector the need for a broad-based entrepreneurial call in India arises from Se nee at speed up the process of activating the factors of production, leading to @ higher Fe Gzonomic growth, dispersal of economic activities, development Ci z ‘of employment opportunities, improvement in the standard of living © =e Geaker sections of the society and involvement of all sections of the society in the proc’ ee LLL e als who initiate, establish, class. The socio-political Jnow-how, state of al factors go into the making of an entrepreneur. Individu new enterprises constitute the entrepreneurial ‘conditions, the availability of industrial technology and s e of business and trading, existence of markets for products and serie® and ‘and facilities available for starting an industry or business, all have a bearing ‘entrepreneurship. A conducive environment is created through the policies of the government. reneurship has great importance in various economic systems. Itis all the more capitalism and mixed economy where not only the responsibilities of duction and distribution are recognised but the objective of growth of fit maximisation is also attained. Therefore, the importance of ds beyond challenge in every economic system except under ars in a different form. Yes, entrepreneurship prevails in all economic or capitalist or mixed economy, the entrepreneurs are ar : development. It is, therefore, suggested that there must be ie to develop entrepreneurs and measures to be taken t: eur is significantly important in a mixed economy, ¢ blic and the private sectors. In the private sector, pro’ > entrepreneur and market mechanism plays its own ro preneur in the mixed economy.Fenn A AU, SAAR) EO GIF thas Bs (0 1808 Kor AWOL Fanos MOF (SCOR Congas WOT IGS GIES Be fran Sf ABE: at sat : a et ote = tof the organization, etc. ALP 15 crease marie ify it. He a esa eee oevetonrens 5 spoimplement an innovative activity, like entering 10 @ new mi \ Ipere and tumever the entroprencur first conceives the concept ® arket to in and fully ident identify the jas to understand the ‘activity in all its entirety. He should properly * basavaby thinks ofits feasibility tm the next stage, he analyses the strategy or his innovation Pier rressses as calcidcice tho risks ho has to pear when the | "hepreneurshie = acti implemented. He also analyses whether the risk taking is}. creation of ‘employment ‘omnatic| = imevston et on socio a : ‘development andard of of & “a | Bipntable ox not. He receives, measures and makes a syst x, Bfaiuation of his idea. Ifhe thinks that it is an adoptable innovative |" commun Selb starts mobilising and co-ordinating ‘various activities]. Increase in Gating to the innovative concept and implements the programme.) 77 1s research and tn the final stage, he monitors the activities. He makes| _develorment corrections then and there if required, and watches the progress. $i feels that his idea is giving positive result, he strengthens the pepe oatelciner hand, if he notices any weakness in operatic itis not yielding he can either stop the activity or restructure process by some More ‘and finds that the jon ‘the whole process for ‘Monitoring the Strate wala ae eres te ere z solutions for problems Fig. 3.2: Entrepreneurship Process normal process adopted by every entrepreneur. The sues ‘activity depends upon the business environment, the ‘by the entrepreneur, the very idea itself and the s ¢ fo implement the programme. ess or failure of ar way in which the itability of the das an aggregate of people living together in a community, w ements including business. Whereas entrepreneurship combin tive manner to create value for customers and create wealthECONOMIC GROWTH ‘Fig. 3.3: Concept of Stimulation of Entrepreneurship of entrepreneur are the problems of entrepreneurshi r-1. (Refer chapter — 1). Industries Board (1954) k for Agriculture & Rural Development (NABARD - 1982) 1s Development Organisation (SIDO - 1954) bad (NISIET), New Delhi (NIESBUD) and an integra :) at NilokheriVm Fe Entrepreneurship 5, ‘" E | | " fraatl Induntrlos Corporation (NSIC = 1988) Jn a publio seotor undortaling of Gol) established three technical centres tite for Micro, small and Medium onterP) risos (NI-MSME) , fy | for Entrepreneurship and Small Business Development (NIESpy, | ) of Entrepreneurship (iE) Gi Development Bank of India (SIDBI) {rial Development Bank of India - IDBI) ‘MSMEs Industries Commission ~ KVIC (tution for Rural Industrialisation - MGIRI suwahati (These are autonome, | of India (Asn) es (WASME) '