ENTREPRENEUAL

MOBILITY

Satya Prakash Rao(29)

Narendra Kumar Mishra(20)
M.B.A.-3rd Sem.
FLOW OF PRESENTATION

 Factors Influencing
Mobility
 Occupational
Mobility
 Locational Mobility
FACTORS INFLUENCING
MOBILITY

1.EDUCATION
Education enlarges one’s
thinking and understanding horizons. It
enables one to comprehend conditions
more easily and clearly and in a better
manner. An educated person can also
easily adjust with the changed
environment.
2. EXPERIENCE
An entrepreneur’s past
experience in business and industry also
increases his/her propensity to move. The
reason is not difficult to seek. An
experienced entrepreneur better perceives
the available opportunities, better analyses
his/her strengths and weaknesses.
3. AVAILABILITY OF FACILITIES
Entrepreneurs
tend to move from areas with no or less
facilities to the areas with more and better
facilities.
Heavy concentration of industries in
okhla,ghaziabad and faridabad near Delhi
represent such examples.
4. POLITICAL CONDITIONS
Entrepreneurial
mobility is influenced by the political factors
as for example a well known enterprising
Punjabi community lost almost everything
during the partition and were compelled to
move from Pakistan to India.
5. SIZE OF ENTERPRISE
Larger business
houses are found more mobile than smaller
ones.
Initially entrepreneurs try to consolidate
their business position at a place, scale the
commanding heights in the area, attain the
dominating position and thereafter try to
successfully seize the business
opportunities elsewhere.
OCCUPATIONAL
MOBILITY

Occupational mobility denotes movement

or changes in occupation.

Occupational mobility takes place in two

forms :-
1. Inter-generation occupational movement
2. Intra-generation occupational movement
 Inter-generation occupational mobility

Occupation Paternal Grandfathers’ Occupation Total

of the Farming Profession Business and
Entrepreneu Industry
rs Fathers.

Farming 6 0 3 9
Profession 4 9 3 16
Business 5 4 16 25
and
Industry
Total 15 13 22 50
 Intra Generation Occupational movement

Last Family Occupation of the Total

Occupation Entrepreneurs
of the Landlord Profession Business and
Entrepreneu Industry
rs

Landlord 0 0 1 1
Profession 4 1 14 19
Business 0 1 16 17
and
Industry
Entered 1 2 10 13
Directly
Total 5 4 41 50
Location Mobility

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 Location Mobility

Movement and settlement have been an

integral part of human history all over
the world.
However it is observed that some
communities are more mobile than
others.
For example, Marwaris, Punjabis, and
Sindhis.
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 The early theories of industrial
location carried out the analysis on a
simple framework where the location
and spatial diversification were simply
determined by an adjustment between
location and weight distance
characteristics of inputs and outputs.
 The reason is that the then industrial
structure was heavily dominated by
the natural resource base and
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consumer oriented industries.
 Consideration of the availability of natural
resources in the choice of industrial location
has declined and the industries are likely to
be established even in those areas with
poor natural endowment.
 This holds specially true in the case of
industries which are not heavily biased in
favour of raw material source for their
location.

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 It is not always possible to explain the
entrepreneurial mobility to a particular
location independently with the help of
any one factor. infact several
considerations influence an
entrepreneur to move to a particular
area/location to establish his industry.

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As a matter of fact, all entrepreneurs are not
mobile. Only a handful of entrepreneurs
are mobile.
The degree of the entrepreneurial mobility
depends upon different factors :
 Availability of raw material

 Infrastructure and labour

 Nearness to market

 Experience

 knowledge and information

 socio-political situation

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 Also with expansion in enterprise size
and increase in their resources,
experience, information flows, etc,
the entrepreneurs are more mobile
from local to metropolitan places.
 This trend goes on. When the
entrepreneurs become, in due course
of time, highly resourceful, greater
degree of mobility occurs even cutting
across the national boundaries.

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 Entrepreneurs most important
consideration for selecting the location of
industries:
considerations Entrepreneurs (in%)
Home land 52
Government incentives 8
Availability of raw material 2
Availability of labour 4
Availability of Market 10
Availability of Infrastructural 20
facilities
Others 4
Total 100
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TATA Nano

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 TATA nano project
 Initial project: Rs 1,500 crore. Rose to over Rs
2,000 crore due to project delays.

Initial Nano production capacity: 2.5 lakh per

annum. Expandable to 3.5 lakh per annum within
2 years.
 TATA has developed the Nano plant, based on
two crucial concepts in manufacturing — the
Japanese “just-in-time” concept and the
internationally-accepted “milk-run” concept
 Both these concepts underline that suppliers
should remain attached to the mother plant, to
keep the price of the final product under control.

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 “The location of the vendor park next to the
plant, therefore, is essential for ‘just-in-time’
inventory management, which in turn is one of
the key factors why the Nano can be so
affordably priced.
 The ‘milk-run’ theory operates within the ‘just-in-
time’ concept. According to this theory, carrier
vehicles will come to the adjacent vendor park
from the mother plant in the shortest possible
time, pick up the required components for Nano
and then scamper off to the mother plant.
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 Incidentally, each Nano will require some
3,000 components. “It has been decided that
initially 40% of the Nano parts will be supplied
from the vendor park. And from April 1, 2009,
when the vendor park becomes fully
operational, 100% of Nano parts will be
procured from there,”
 No of total vendor is 55 now and half of them is
set their plant and ready to work.

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Few of them are

 Sona Koyo Steering Systems'

-------CMD Surinder Kapur.
Rico Auto
MD Arvind Kapur, whose company has
supplied engine head block to the People's
Car.
Rane Group, setting up a dedicated facility to
supply steering gears
chairman L Ganesh.
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Cont…

 Lumax Group
CMD DK Jain

Nirmal Minda of NK Minda Group, which

supplied electric switches for the car
-----

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 Thank you

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