Good Entrepreneur can create a strong economy. Entrepreneurship is an important facet of industrial growth and development of a nation. It is the backbone of a nation that sets its eyes on maximizing its performance in every field. The spirit of entrepreneurship brings about enthusiasm, persistence and the ability to seek entrepreneurial opportunities that lead to success. A nation’s ability to generate a steady stream of business opportunities can only come about when its people take to entrepreneurial activities. Entrepreneurs are essentially the engines of growth for a nation. There are several factors that go into making a successful entrepreneur, and he or she need not necessarily possess a strong business and financial background. On the contrary, well-conceived and well directed training can always produce an outstanding entrepreneur. In addition, today’s world with its burgeoning population offers limited avenues of employment.
WHO IS AN ENTREPRENEUR?
The entrepreneur as a person brings in overall change through innovation for the maximum social good. Human values remain sacred and inspire him to serve the society. He has firm belief in social betterment and he carries out this responsibility with conviction. In this process, he accelerates personal, economic as well as human development. The entrepreneur is a visionary and an integrated man with outstanding leadership qualities. With a desire to excel, he gives top priority to Research and Development. He always works for the well-being of the society. More importantly, entrepreneurial activities encompass all fields / sectors and foster a spirit of enterprise for the welfare of mankind.
OBJECTIVES OF ENTREPRENEURSHIP
- To create entrepreneurial awareness to the young generation and motivate them to establish small and medium enterprises
- To trained up the prospective new and young entrepreneurs to maintain and run their enterprises successfully.
- To enabling the entrepreneurs about the global production and market strategy in context of market economy
- To encourage the entrepreneurs to establish pollution free enterprises
IMPORTANCE OF ENTREPRENEURSHIP
- Entrepreneurship promotes capital formation by mobilizing the idle saving of the public.
- It provides immediate large-scale employment. Thus it helps to reduce the unemployment problem in the country, i.e., the root of all socio-economic problems.
- Entrepreneurship promotes balanced regional development.
- Entrepreneurship helps reduce the concentration of economic power.
- It stimulates the equitable redistribution of wealth, income and even political power in the interest of the country.
- It encourages effective resource mobilization of capital and skill which might otherwise remain unutilized and idle.
- It also induces backward and forward linkages which stimulates the process of economic development in the country.
- Entrepreneurship also promotes the country’s export trade, which is an important ingredient to economic development.
ENTREPRENEURSHIP IN INDIA
“Entrepreneur is one who always searches for change, responds to it, and exploits it as an opportunity”. Entrepreneurs innovate and innovation is a specific instrument of entrepreneurship. It creates resource because there is no such thing as a ‘resource’ until man finds a use for something and endows it wit economic value. India is second among all nations in Total Entrepreneurship Activity as per the Global Entrepreneurship Monitor Report 2002. Over the years India has concentrated more on the development of the institutions that support private enterprise by building a stronger infrastructure to support it. The Government has encouraged entrepreneurship by providing training and also the facilities to succeed, particularly in the rural areas. Moreover, in India, the post-liberalization and globalization era has brought with it a growing middle class – roughly estimated to be 250 million – and rising disposable incomes. This presents a huge potential, which if tapped can be a veritable gold mine. Entrepreneurs can make the best of this by catering to various demands of this segment.
QUALITIES OF AN ENTREPRENEUR:
The important qualities of a successful entrepreneur are as follows,
- Total commitment, determination and perseverance
- Drive to achieve and grow
- Opportunity and goal orientation
- Taking initiative and personal responsibility
- Persistent problem-solving
- Realism and a sense of humour
- Seeking and using feedback
- Internal focus of control
- Calculated risk taking and risk seeking
- Low need for status and power
- Integrity and reliability
CHALLENGES TO THE ENTREPRENEUR IN INDIA
Entrepreneurship plays a vital role in economic development through creation of utilities and generation of employment within a short period. It has been accepted that entrepreneurship is an economic venture by which the people can be changed to move upwards within a short period of time, especially from the point of view of employment generation. Out of the economically active population of 550 million at present only 27.53 million people have had the benefit of employment in the organized sector. 249.76 million are either employed or under employed in the unorganized sector, while the services of the remaining 272.71 million remain unutilized by the entrepreneur. As a result over 29 % of the population continues to suffer under the clutches of poverty and hunger.
The founding of new firms has always been a focal research issue in the entrepreneurship research tradition. In order to support the founding of new firms, it is important to know who starts new firms, in what kinds of situations, and for what kinds of reasons. The early research on entrepreneurship strove to identify the psychological characteristics, or traits, of those people who start new firms. One problem of this ‘trait’ line of research was that it focused on ex post situations, interviewing entrepreneurs who already had started a firm.
a) Participation in International Fairs/Exhibitions
With a view to ensure that exporters from small scale sector exhibit their products in the International Exhibitions, required assistance & support is provided. Expenditure on account of space rent, handling and clearing charges, insurance and shipment charges etc. are met by the office of the Development Commissioner (Small Scale Industries) under one of the plan schemes. Participation in the named fairs/exhibitions generates large number of Trade enquiries besides certain export orders. It also provides an opportunity to entrepreneurs to display their products in the world market. The basic objective behind this scheme is that entrepreneurs which otherwise are not in a position to display their products may participate in foreign exhibition/fairs so as to promote their exports. Enquiries generated during such exhibitions abroad are disseminated to all entrepreneurs through a net work of field offices of this organization. This strategy has been found to be successful for exporters from small scale sector in identifying new foreign buyers/markets.
b) Packaging for Exports
Packaging standards, techniques etc. training programmes on packaging for exports are organized in various parts of the country. Role of packaging for exports has gained much significance in view of trends in the world markets. The need for better and scientific packaging for exports from small sector was recognized long back. These programmes are organized in association with Indian Institute of Packaging which has requisite expertise on the subject. Basic objective of these programmes is to generate the much needed consciousness in the industry and to educate the entrepreneurs about the scientific techniques of Packaging.
c) Technical & Managerial Consultancy Services
Technical & Managerial Consultancy Services to the entrepreneurs is provided through a net work of field offices of SIDO so as to ensure higher level of production and generation of higher exports.
d) National Awards for Quality Products
With a view to encourage the small scale units for producing Quality goods, National Awards for Quality Products are given to the outstanding small scale units, who have made significant contribution for improving quality of their products. National Awards encourage entrepreneurs to produce quality goods which further enable them to enter into export market.
e) Marketing Development Assistance
Marketing Development Scheme is being operated by Ministry of Commerce under which MDA is given to exporters through FIEO and Export Promotion Councils/ Commodity Boards to plan their marketing strategy for export growth.
f) Promotional Schemes
To meet the challenges of international competition and to promote exports of entrepreneurs, following promotional schemes are also being implemented.
1. Technology Development and Modernization Fund Scheme
2. Quality Awareness Scheme
3. Subsidy for obtaining ISO-9000 quality Certification
4. Process-cum-Product Development Centre
g) Small Industry Cluster Development Program:
A new scheme for technology upgradation for industrial clusters has been started recently. 10 clusters of industries producing different groups in various parts of country have been selected. The scheme aims at diagnostic study of the clusters, identification of technological needs, technological intervention and wider dissemination of information and technology within the clusters. The expenditure involved on pilot plants etc. is to be met on 50:50 cost sharing basis by the Government and the concerned Industry Association of the clusters. The scheme is flexible and provides for smooth sourcing of technology even from abroad.
ENTREPRENEURIAL THRUST OF WOMEN
In India, a majority of women entrepreneurs fall within the age group of 25- 40 years. Most women owners are married. They have a good educational background, with most of them at least graduates, and have an above average record in education and participation in extra-curricular activities. Most have an urban background and have lived in small nuclear families, both before and after marriage. A majority of women entrepreneurs are from Hindu forward communities, with Brahmins being the largest proportion. In the northern part of the country, it is mainly women belonging to communities which have traditionally been in business e.g., Bania or Punjabi Khatri. Among the states, Gujarat, Maharashtra and Karnataka have more women entrepreneurs. These women are either from families which are already in business or have service backgrounds, or they have highly educated fathers or husbands.
The entrepreneurship miracle in other country is an engine for job creation, innovation and diversity. In the case of diversity it is observed that women – owned and minority owned business may be emerging growth companies of the next decade. The role of entrepreneurship in global business of developing countries like India is also significant. The wide range of significant contributions that entrepreneurship makes include promotion of capital formation, creation of immediate large-scale employment, promotion of balanced regional development, and effective mobilization of capital and skills.